-- Posted 16 January, 2009 | | Source: SilverSeek.com
Note: US Markets are closed Monday for Martin Luther King Day. The Gold Seeker Report will return on Tuesday.
| Close | Gain/Loss | On Week |
Gold | $841.10 | +$33.90 | -1.48% |
Silver | $11.21 | +$0.75 | -0.53% |
XAU | 113.78 | +4.66% | -0.65% |
HUI | 274.81 | +5.55% | -0.96% |
GDM | 850.45 | +5.24% | -0.55% |
JSE Gold | 2199.94 | +148.86 | -1.60% |
USD | 83.97 | -0.51 | +1.52% |
Euro | 133.05 | +1.80 | -0.96% |
Yen | 110.24 | -1.06 | -0.42% |
Oil | $36.51 | +$1.11 | -10.58% |
10-Year | 2.304% | +0.103 | -4.28% |
Bond | 136.21875 | -0.921875 | +2.31% |
Dow | 8281.22 | +0.84% | -3.70% |
Nasdaq | 1529.33 | +1.16% | -2.69% |
S&P | 850.12 | +0.76% | -4.52% |
The Metals:
Gold and silver held over 1% higher in Asia before they continued to climb steadily higher in London and New York and ended near their session highs with impressive gains of 4.03% and 7.17%.
Euro gold rose to about €635, platinum gained $19.50 to $938.50, and copper gained over 7 cents to about $1.51.
Gold and silver equities rose over 4% at the open before they fell back to about unchanged by midday, but they then rallied back higher to new highs into the close and ended with about 5% gains.
The Economy:
Report | For | Reading | Expected | Previous |
CPI | Dec | -0.7% | -0.9% | -1.7% |
Core CPI | Dec | 0.0% | 0.1% | 0.0% |
Capacity Utilization | Dec | 73.6% | 74.5% | 75.2% |
Industrial Production | Dec | -2.0% | -1.0% | -1.3% |
Michigan Sentiment | Jan | 61.9 | 59.0 | 60.1 |
All of this week’s other economic reports:
Next week’s economic highlights include Building Permits, Housing Starts, and Initial Jobless Claims on Thursday.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil fell in early trade as the International Energy Agency lowered its demand forecast to join OPEC and the EIA who also lowered their forecasts earlier this week, but prices rebounded in late trade and ended slightly higher as traders covered shorts and/or went long heading into the long weekend.
The U.S. dollar index and treasuries fell on news that the other $350 billion in the TARP is going to be deployed as part of the government’s effort to print its way out of the current economic problems caused by too much easy money in the first place.
The Dow, Nasdaq, and S&P rose about 1% at the open before falling markedly midday, but they then rallied back higher in afternoon trade and ended about 1% higher as traders debated the implications of the split of Citigroup and the bailout of Bank of America.
Among the big names making news in the market Friday were Sony Ericsson, Circuit City, Citigroup, Bank of America, Intel, and Schwab.
The Commentary:
“Dear CIGAs,
Gold was the recipient of “reflation” flows as money flowed back into the commodity sector today on news that the remaining $350 billion in the TARP was going to be released. That served to undercut safe haven flows into the dollar and definitely into the bonds, with commodities as a sector generally benefiting. As I wrote the other day, if you don’t like the current investor sentiment, stick around a day or so, it will flip 180 degrees and then do that same thing again a few days after that. Perhaps next week we go back to deflation paranoia. Who knows and who really cares at this point since all that matters in these markets is money flows – nothing else.
From a technical perspective gold bounced exactly where it needed to bounce in order to keep the technical charts from deteriorating. It did however run exactly into overhead resistance in today’s rally where it was summarily capped by the usual crowd. The bulls have dodged a bullet and deserve credit for their performance and grit but they need to force the shorts out of their defense line at $840 to give them a shot at $860. They are attempting to do that even as I write this commentary. Hats off to those fund managers who actually bought into the weakness in gold for a change instead of selling downward momentum.
While it is a bit difficult to see on the 12 hour chart, gold has actually been forming a reverse head and shoulders chart with one shoulder near $750 in early September 2008 and the head near the $700 level in late October and early November. The last shoulder and this is ONLY A POTENTIAL shoulder is the low made yesterday. To confirm this, gold would need to break out above the $880 level in a convincing fashion. That once again serves to underscore the significance of that pesky $880 level.
For now, resistance stands at today’s high near $840 followed by stronger resistance between $855- $860. Support remains just above the $800 level.
The mining shares as indicated by the HUI and the XAU bounced off the 50 day moving averages and are now running into resistance near their down-trending 10 day moving averages. The HUI is attempting to climb back above broken support near the 266 level but is encountering difficulty with the broader equity markets sinking back into negative territory. The XAU’s chart is actually better looking than that of the HUI as it managed to climb back above broken support near the 107 level but it too has run into selling in the zone between the falling 10 and 20 day moving averages at today’s session high.”- Dan Norcini, More at JSMineset.com
“April Gold closed up 32.6 at 841.6. This was 0.7 up from the low and equal to the high.
March Silver finished up 0.775 at 11.215, 0.06 off the high and 0.115 up from the low.
The gold bulls forged a pretty impression trading session on Friday, with the market starting out mixed and two sided but then the trade clearly settled into a moderately strong upward pattern. Initial weakness in the Dollar, strength in oil and a favorable equity market track served to lift gold early but after a brief post report setback, prices began to firm significantly. Even more impressive is that the gold market remained strong despite the fact that the Dollar started to recover at the same time that equities and oil became weak. The gold market might have been lifted by suggestions from the Fed's Lacker than inflation could still be a problem for the US economy!
The silver market was pretty much in an upward bias on the charts from mid day on Thursday. In fact, despite a brief back and forth chop through the first set of scheduled readings on Friday morning the bull camp seemed to hold definitive control over the market for a large part of the last 24 hours of trade. As in the gold market, the silver market even held serve when a number of supportive outside market forces reversed direction and that suggests the bull camp had a solid reason to remaining long.”- The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Lawrence Williams: Clutching at gold straws
The Statistics:
As of close of business: 1/16/2009
Gold Warehouse Stocks: | 8,530,087 | -165 |
Silver Warehouse Stocks: | 125,594,349 | -1,036,884 |
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 Exchage (TSE) AND Hong Kong Stock Exchange (HKEx) | SPDR® Gold Shares | 795.25 | 25,568,183 | US$ 20,707m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 116.96 | 3,760,378 | US$ 3,163m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 11.51 | 374,333 | US$ 311m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 26.92 | 865,639 | US$ 701m |
Note: Change in Total Tonnes from yesterday’s data: SPDR added 4.59 tonnes to a new record high holding.
COMEX Gold Trust (IAU)
Profile as of 1/15/2009 | |
Total Net Assets | $1,766,696,101 | Ounces of Gold
in Trust | 2,190,405.775 |
Shares Outstanding | 22,250,000 | Tonnes of Gold
in Trust | 68.13 |
Note: No change in Total Tonnes from yesterday’s data.
Silver Trust (SLV)
Profile as of 1/15/2009 | |
Total Net Assets | $2,413,238,123 | Ounces of Silver
in Trust | 229,661,335.200 |
Shares Outstanding | 232,750,000 | Tonnes of Silver
in Trust | 7,143.27 |
Note: No change in Total Tonnes from yesterday’s data.
The Stocks:
Barrick’s (ABX) new chief executive, Endeavour’s (EXK) market activity, and U.S. Silver’s (USA.V) cost saving measures and director resignation were among the big stories in the gold and silver mining industry making headlines Friday.
WINNERS
1. NovaGold | NG +25.17% $1.84 |
2. Alexco | AXU +16.33% $1.14 |
3. US Gold | UXG+15.32% $1.13 |
LOSER
1. Solitario | XPL-2.98% $1.31 |
Winners & Losers tracks NYSE and AMEX listed gold and silver mining stocks that trade over $1.
All of today's gold and silver stock news:
Majescor Private Placement Offering - More
- January 16, 2009 | Item | E-mail
Canada Lithium Corp. Settles Debt and Grant Options - More
- January 16, 2009 | Item | E-mail
Youthful Regent brings experience to Barrick - "Barrick Gold Corp's (ABX.TO) new chief executive, Aaron Regent, found himself on the wrong end of a multibillion-dollar battle for mining supremacy three years ago, but his current job will likely put him in the driver's seat for any future acquisitions." More
- January 16, 2009 | Item | E-mail
HudBay Recipient of PDAC's Bill Dennis Award - More
- January 16, 2009 | Item | E-mail
Endeavour Silver Corp.: News Release - "At the request of IIROC (Investment Industry Regulatory Organization of Canada), Endeavour Silver Corp. (Toronto:EDR.TO - News)(NYSE AlterNext US: EXK)(DBFrankfurt: EJD) announces that the Company does not know of any material reason for the increase in volume and price today in the stock." More
- January 16, 2009 | Item | E-mail
Duran Ventures Announces Stock Option Grant - More
- January 16, 2009 | Item | E-mail
Minera Andes announces increase in forecast production at the San Jose gold/siver mine - More
- January 16, 2009 | Item | E-mail
Genco Resources Ltd. Voluntarily Dismisses Complaint - More
- January 16, 2009 | Item | E-mail
Zoloto Resources announces the restructuring of Irkutsk debt - More
- January 16, 2009 | Item | E-mail
Plexmar Resources Inc.: Final Contracts Signed With Ucucha - More
- January 16, 2009 | Item | E-mail
Los Andes Announces Agreement for Restructuring of Option Payments - More
- January 16, 2009 | Item | E-mail
Freewest Resources Canada Inc.: Significant Chromite Intersections Returned From Two Additional Holes-Big Daddy Chromite Deposit in the James Bay Lowlands - More
- January 16, 2009 | Item | E-mail
JP Morgan sets 2009 targets on 8 precious metal stocks - "J.P. Morgan Securities introduced new price targets for 2009 on the stocks of eight of the gold and silver miners under its coverage, and cut its ratings on four of them." More
- January 16, 2009 | Item | E-mail
Augusta Settles ASARCO Lawsuit - More
- January 16, 2009 | Item | E-mail
NI 43-101 Mineral Resource Estimate Received for Houston Lake Mining's Dubenski Gold Property - More
- January 16, 2009 | Item | E-mail
Bannerman Resources Completes the Settlement of Savanna Litigation - More
- January 16, 2009 | Item | E-mail
U.S. Silver Reports Cost Saving Measures & Director Resignation - "U.S. Silver Corporation (CDNX:USA.V - News) ("U.S. Silver" or the "Company") announces several new cost saving measures. Effective immediately, all salaried personnel have taken a 10% salary reduction and the union representing the hourly employees has also approved a similar reduction in wages for the hourly workforce. Officers of the Corporation and the Board have significantly reduced their cash compensation until cash goals are achieved." More
- January 16, 2009 | Item | E-mail
Gold Reserve wants compensation for Venezuela mine - "Gold Reserve Inc. says it has not been officially notified of President Hugo Chavez's plans to rescind its gold mining concession. But the Spokane, Washington-based company says it would consider turning over its Brisas del Cuyuni concession if compensated. It estimates investments including drilling, studies and equipment are worth $230 million." More
- January 16, 2009 | Item | E-mail
- Chris Mullen, Gold Seeker Report
- Would you like to receive the Free Daily Gold Seeker Report in your e-mail? Click here
Additional Resources for today’s Gold Seeker Report can be found:
© Gold Seeker 2008
Note: This article may be reproduced provided the article, in full, is used and mention to Gold-Seeker.com is given.
Disclosure: The owner, editor, writer and publisher and their associates are not responsible for errors or omissions. The author of this report is not a registered financial advisor. Readers should not view this material as offering investment related advice. Gold-Seeker.com has taken precautions to ensure accuracy of information provided. Information collected and presented are from what is perceived as reliable sources, but since the information source(s) are beyond Gold-Seeker.com’s control, no representation or guarantee is made that it is complete or accurate. The reader accepts information on the condition that errors or omissions shall not be made the basis for any claim, demand or cause for action. Past results are not necessarily indicative of future results. Any statements non-factual in nature constitute only current opinions, which are subject to change. Nothing contained herein constitutes a representation by the publisher, nor a solicitation for the purchase or sale of securities & therefore information, nor opinions expressed, shall be construed as a solicitation to buy or sell any stock, futures or options contract mentioned herein. Investors are advised to obtain the advice of a qualified financial & investment advisor before entering any financial transaction.
-- Posted 16 January, 2009 | |
