The Metals:

Gold fell $15.06 to $1196.14 by late morning in New York before it bounced back higher in afternoon trade, but it still ended with a loss of 1.03%.  Silver slipped to as low as $16.36 and ended with a loss of 3.4%.

Euro gold fell to about €951, platinum lost $18 to $1240, and copper fell a couple of cents to about $3.06.

Gold and silver equities fell as much as 7% by midday and remained near that level for the rest of the day.

The Economy:

Tomorrow brings Personal Income and Spending, Core PCE Prices, the Employment Cost Index, Chicago PMI, and Michigan Sentiment.

The Markets:

Charts Courtesy of http://finance.yahoo.com/

Oil fell as the U.S. dollar rose on better than expected GDP data.

Treasuries saw slight gains on worries about weak economic data out of Europe.

The Dow, Nasdaq, and S&P rose on strong earnings reports and optimism about the US economy.

Among the big names making news in the market today were Visa, Alibaba, Altria, MasterCard, Cigna, Fortress, New York Times, ConocoPhillips, and MGM Resorts.

The Commentary:

“In looking over this intermediate term chart, and surveying its current bear market, I have noticed that since its peak near $1900 some three years ago, the metal has only ONCE managed to CLOSE out the week BELOW $1200. See the arrow.....

The close this week will therefore be critical in determining whether or not we are going to be more downside follow through and another test of the key $1180 level or if we are going to sit and grind sideways for a while longer yet.

Based on what I am seeing in the gold mining universe, I would say the odds favor a close below this level but I am not dogmatic about it. As noted yesterday in my comments on the gold shares, based on the ratio of the HUI to Gold, either gold remains OVERVALUED in relation to the shares or the shares remain undervalued in relation to the price of the metal.

I still am leaning towards the metal remaining overvalued especially as there as of yet seems to be no sign that the bloodletting in that sector is through. There remains a lot of die-hard gold bugs who are enduring some tremendous paper losses in their mining share portfolios. Look at the HUI - it is mere about 10% away from hitting the 2008 low! That is six years of whatever gains anyone might have had in that sector that have gone up in smoke. What is such a tragedy is every single bit of it could have easily been avoided. All that was necessary was to tune out the assorted hucksters, charlatans, stock peddlers, etc and just read the chart.

I do think that if we get that weekly close below $1200, the bears are going to be emboldened to go after that triple bottom (which rarely hold ) near $1180. There is a MOUNTAIN of sell stops sitting there. They know it and can smell them.”- Dan Norcini, More at http://www.traderdannorcini.blogspot.com/

GATA Posts:

Koos Jansen: China's gold demand reaches 1,541 tonnes so far this year

Hugo Salinas Price: The fall in international reserve assets

The Statistics:

Activity from: 10/29/2014

Global Gold ETF Holdings

[WGC Sponsored ETF’s]

Note: Change in Total Tonnes from yesterday’s data: SPDR subtracted 1.196 tonnes.

COMEX Gold Trust (IAU) Total Tonnes in Trust: 161.33: -0.36 change from yesterday’s data.

Silver Trust (SLV) Total Tonnes in Trust: 10,681.42: No change from yesterday’s data.

The Miners:

New Gold’s (NGD) third quarter results, Goldcorp’s (GG) third quarter results, Lake Shore’s (LSG) third quarter results, Great Panther’s (GPL) drill results, and Pan American’s (PAAS) updated technical reports were among the big stories in the gold and silver mining industry making headlines today.

WINNER

LOSERS

Winners & Losers tracks NYSE and AMEX listed gold and silver mining stocks that trade over $1.

Please see Yahoo’s Mining/Metals News Wire for all of today’s mining news.

- Chris Mullen, Gold Seeker Report

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• http://www.capitalupdates.com
• http://www.goldseek.com
• http://www.silverseek.com
• http://www.goldreview.com 

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