-- Published: Thursday, 15 January 2015 | Print | Disqus
| Close | Gain/Loss |
Gold | $1258.50 | +$30.50 |
Silver | $16.86 | +$0.03 |
XAU | 77.16 | +5.38% |
HUI | 194.90 | +7.32% |
GDM | 595.61 | +5.54% |
JSE Gold | 1450.10 | +59.93 |
USD | 92.31 | +0.25 |
Euro | 116.14 | -1.74 |
Yen | 85.89 | +0.63 |
Oil | $46.25 | -$2.23 |
10-Year | 1.775% | -0.062 |
Bond | 150.625 | +1.21875 |
Dow | 17320.71 | -0.61% |
Nasdaq | 4570.82 | -1.48% |
S&P | 1992.67 | -0.92% |
The Metals:
Gold jumped to as high as $1266.38 by late morning in New York before it edged back lower in afternoon trade, but it still ended with a gain of 2.48%. Silver rose to as high as $17.218 and ended with a gain of 0.18%.
Euro gold rose to about €1083, platinum gained $26 to $1255, and copper climbed a couple of cents to about $2.57.
Gold and silver equities rose throughout most of trade and ended with about 6% gains.
The Economy:
Report | For | Reading | Expected | Previous |
Initial Claims | 1/10 | 316K | 290K | 297K |
PPI | Dec | -0.3% | -0.4% | -0.2% |
Core PPI | Dec | 0.3% | 0.1% | 0.0% |
Empire Manufacturing | Jan | 9.9 | 6.5 | -1.2 |
Philadelphia Fed | Jan | 6.3 | 19.0 | 24.3 |
Mortgage Rates Fall for Second Week as 30-Year at 3.66% Businessweek
Tomorrow brings CPI, Industrial Production, Capacity Utilization, Michigan Sentiment, and Net Long-Term TIC Flows.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil erased early gains and ended nearly 5% lower after OPEC reduced its demand forecast.
The U.S. dollar ended modestly higher in mixed trade.
Swiss stunner sends euro to 11-year low against buck MarketWatch
Swiss central bank stuns market with policy U-turn Reuters
Swiss Franc Roils Markets as SNB Abandons Cap Bloomberg
Treasuries rose as the Dow, Nasdaq, and S&P dropped on worries about the global economy.
Among the big names making news in the market today were Morgan Stanley, Citigroup, BlackRock, Best Buy, Lennar, Target, Athene, BofA, Caesars, and Bombardier.
The Commentary:
“In a surprisingly unexpected move, the Swiss National Bank threw in the towel on their Franc/Euro peg and threatened to move interest rates deeper into negative territory and announced a scrapping of the floor at 1.200.
The result - ABSOLUTE CHAOS across the currency markets, the oil markets and the gold markets. The result? The cross plummeted an astonishing 1400 points in the matter of 30 few minutes! Every single trader on the planet who was in that cross and expecting them to defend that floor that they have been so vocal about defending, within that brief time span, was financially obliterated.
This is what I HATE ABOUT CENTRAL BANKS - as I have said many times in the past, it is my personal opinion formed from years of trading and, I might add, from having been on the receiving end of something along this nature from the Bank of Japan at one time, Central Banks are the CHIEF CAUSE of MARKET VOLATILITY and instead of helping to create/maintain relatively calm and orderly markets, they inject disorder, chaos and devastation.
I just hope some of my readers were not trading that cross.
My take on this surprise is this - there was no reason for the SNB to do such a thing UNLESS they knew that a big bond buying program was coming from the ECB next week. Even though their interest rates were already negative, they were spending enormous amounts of their reserves in maintaining that 1.2000 peg. If the ECB were to go ahead on the bond buying/QE, the Euro would weaken (at least that is what the market is expecting it to do and thus the reason for the strong downtrend in the common currency). A weaker Euro would exert even more pressure on the Euro/Swissie cross requiring even more ammunition to be wasted by the SNB.
Thus they threw in the towel and surrendered.
Gold certainly does like this!
The oil markets have gone berserk as a result as well.”- Dan Norcini, More at http://www.traderdannorcini.blogspot.com/
“Unlike this shot heard round the world, there’s little celebration over the shot heard round the world this morning from the Swiss. Mark this down; if you thought we had volatility in financial markets before this move, just wait!
Central Bankers have been pushing on a string with very low or even negative interest rates and the Swiss snapped those strings this morning. Left with little or no room on interest rates, the Swiss are just the first to use what inevitably other Central Bankers shall reach for in what’s left in their monetary arsenal – currency manipulation.
Do not fall prey to the “Don’t Worry, Be Happy” cry that this news shall have little or no impact on “Happy Days Are Here Again.”
The one sure benefactor in all of this is expressing itself this morning – gold. In a market that has seen the most hate against it in the 30+ years I’ve been in the financial world, gold shall once again be what it has been for thousands of years – an alternative to paper currencies. And remember this – the gold market has made little sense ever since the Germans first showed up a few years ago, asking to see and get back its gold held in the U.S. Since then, many others have “suddenly” decided they want their gold back too. Despite gold prices declining during this period, it’s been my firm belief the realization from the Germans move was all the gold that’s supposed to be where it is – ISN’T! To announce that would have been devastating so quietly, key players have been attempting to get back what they can.
In the meantime, shorting gold and betting on its demise reached a fever pitch; only someone forgot to tell gold it was to fall below $1,000. Instead, as noted for several weeks now, gold has been putting in a classic bottoming formation and was getting set to challenge key resistance in the $1,240 - $1,260 area. Well hello resistance.
Stay tuned as the fun has only just begun.” - Peter Grandich,
GATA Posts:
Central bank conflicts coming into the open, promising 'volatility'
Koos Jansen: 'Astonishing' heavy withdrawals from Shanghai Gold Exchange
Swiss National Bank shocks markets by scrapping peg to euro
The Statistics:
Activity from: 1/14/2015
Gold Warehouse Stocks: | 7,948,562.831 | - |
Silver Warehouse Stocks: | 173,914,119.684 | -14,439.41 |
Global Gold ETF Holdings
[WGC Sponsored ETF’s]
| Product name | Total Tonnes | Total Ounces | Total Value |
New York Stock Exchange Arca (NYSE Arca) AND Singapore Exchange (SGX) AND Tokyo Stock Exchange (TSE) AND Hong Kong Stock Exchange (HKEx) AND Mexico Stock Exchange (BMV) | SPDR® Gold Shares | 707.591 | 22,749,771 | US$28,634m |
London Stock Exchange (LSE) AND NYSE Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse - Xetra) | Gold Bullion Securities | 138.13 | 4,441,056 | US$5,602m |
London Stock Exchange (LSE) AND NYSE Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse - Xetra) AND NYSE Euronext Amsterdam | ETFS Physical Gold | 152.66 | 4,908,200 | US$8,004m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 11.16 | 358,789 | US$451m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 38.40 | 1,234,459 | US$1,506m |
Note: Change in Total Tonnes from yesterday’s data: SPDR subtracted 0.23 tonnes.
COMEX Gold Trust (IAU) Total Tonnes in Trust: 163.04: +0.42 change from yesterday’s data.
Silver Trust (SLV) Total Tonnes in Trust: 10,150.66: -50.63 change from yesterday’s data.
The Miners:
Lake Shore’ (LSG) 2014 costs, Freeport’s (FCX) settlement, Comstock’s (LODE) licensed mineral rights, Richmont’s (RIC) 2015 guidance, McEwen’s (MUX) 2014 production, Great Panther’s (GPL) 2014 production, Fortuna’s (FSM) 2014 production, Coeur’s (CDE) 2014 production and 2015 guidance, and SilverCrest’s (SVLC) 2014 production and 2015 guidance were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. DRDGOLD | DRD +19.47% $2.27 |
2. Comstock | LODE +17.65% $1.00 |
3. Richmont | RIC +12.71% $3.37 |
LOSERS
1. Freeport | FCX -2.19% $18.33 |
2. Turquoise | TRQ -0.37% $2.70 |
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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-- Published: Thursday, 15 January 2015 | E-Mail | Print | Source: GoldSeek.com
Gold Seeker Closing Report: Gold Gains Over 2% While Stocks Drop
