-- Posted 20 March, 2009 | | Source: SilverSeek.com
Please Note: There will be no Gold Seeker reports next week. The Gold Seeker report will return on Monday, March 30th.
| Close | Gain/Loss | On Week |
Gold | $954.65 | -$4.10 | +2.69% |
Silver | $13.78 | +$0.24 | +4.47% |
XAU | 136.31 | -0.25% | +11.53% |
HUI | 326.54 | -0.01% | +13.56% |
GDM | 1026.79 | -0.22% | +13.15% |
JSE Gold | 2982.39 | -11.86 | +1.40% |
USD | 83.83 | +0.80 | -4.04% |
Euro | 135.69 | -0.97 | +5.01% |
Yen | 104.26 | -1.54 | +2.12% |
Oil | $51.06 | -$0.55 | +10.40% |
10-Year | 2.625% | +0.028 | -9.01% |
Bond | 130.96875 | +0.140625 | +2.71% |
Dow | 7278.38 | -1.65% | +0.75% |
Nasdaq | 1457.27 | -1.77% | +1.80% |
S&P | 768.54 | -1.98% | +1.58% |
The Metals:
Gold climbed $8.10 to $966.85 and silver rose over 1% to above $13.70 by late trade in Asia before both metals fell back off in London to as low as $946.25 and $13.41 by about 9AM EST in New York, but they then rallied back higher into the close and gold ended with a loss of just 0.43% while silver jumped to a new session high of $13.855 and ended with a gain of 1.77%.
Euro gold rose to about €704, platinum lost $15.50 to $1101, and copper fell slightly to about $1.79.
Gold and silver equities fell about 2% at the open, but they then rallied back higher for most of the rest of trade and ended near unchanged on the day.
The Economy:
There were no major economic reports today, but Bernanke spoke to a group of executives at small U.S. banks and “said the central bank is trying to counter ‘widening credit spreads’ that are blunting efforts to pump cash into the economy after the Fed cut the main interest rate almost to zero.” He also detailed the fed’s recently announced plans to buy longer term treasury securities.
All of this week’s economic reports:
Next week’s economic highlights include Existing Home Sales on Monday, Durable Goods Orders and New Home Sales on Wednesday, Initial Jobless Claims and GDP on Thursday, and Personal Income and Spending and Michigan Sentiment on Friday.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil fell slightly as the U.S. dollar index rebounded from the last two days of huge losses, but the dollar still marked its biggest weekly drop in 24 years.
Treasuries added a bit to this week’s huge gains resulting from the fed’s decision to buy some longer term treasuries themselves.
The Dow, Nasdaq, and S&P fell off almost 2% by the close on worries over the fed’s dramatic actions.
Among the big names making news in the market Friday were UAL, IBM and Sun Micro, Nike, Xerox, Citigroup, Nasdaq, and GM.
The Commentary:
“Dear CIGAs,
Gold ran into a bout of pre-weekend selling in today’s session as bears were able to prevent bulls from capturing the hill at the $960 level and holding it. Chart readers can see the significance of that level for if it falls, gold will move back up to $1,000 again. It looks to me like there was a bit of profit taking by short-term oriented longs not only in gold, but in crude, and the European currencies. It is not completely unexpected to see the Forex arena moving to bid the Dollar up a bit considering the fact that it just experienced its single largest day fall in more than 20 years. Longer term, now that the Fed has embarked on its currency debauching policy, traders will be looking to sell rallies in the greenback. We are still going to have the crosswinds involved from safe haven dollar buying whenever stocks falter so the day to day gyrations in the currency markets are going to flow over into the gold market as traders/investors attempt to sort all of this out.
Gold appears to be pausing or resting after its big move higher with short-term oriented traders booking profits and some fresh short sellers emerging but overall, it held up well today as eager buying came in on the dips. Ditto that for the mining shares as the HUI and the XAU are actually both in positive territory as I write this.
Volume was pretty hefty in gold again yesterday but off the torrid pace of Wednesday’s monster number. Open interest readings are healthy. We will get another look into market internals this afternoon to when the Commitments data is released but unfortunately, it will not contain the numbers for Wednesday on since the cutoff date is Tuesday.
Rollover activity in gold is picking up with June receiving the bulk of the new buying. These rollover periods have been used quite effectively in the past by the bullion banks to squash price rallies so bulls will have to perform to keep their momentum and maintain the initiative. April will be entering its delivery period soon and we will then see whether or not a sufficient number of longs have finally seen the light and decided to start standing for delivery. AT this point I am not very optimistic that they will since this new generation does not seem to know how to attack even when they are handed a battle plan that guarantees them victory.
Equities were pulled lower by the weakness in financials. This will bolster talk that the recent rally in stocks was nothing but a dead cat bounce. The weekly chart in the S&P is not particularly impressive although last week’s move higher did give bulls some cause for hope. That bottom down near the 670 level must hold or the S&P is going to 600. Upside resistance remains near the 790 level followed by 835.
Bonds surrendered the better part of their gains after being up nearly a full point today – something I find telling. Could it be that the market is still concerned about the supply glut that is coming? The weekly bond chart has decidedly improved although the fade from well off the highs indicates that the most likely course of price movement over the next few weeks is a sideways chop. Bonds will need some sort of fresh news to encourage bulls seeing that they have gotten all the bang that they are going to get from the Fed’s announced buy program. While that has served to put a floor under them, it will take some new fodder to feed this market.”- Dan Norcini, More at JSMineset.com
“April Gold closed down 2.6 at 956.2. This was 7.7 up from the low and 1.3 off the high.
May Silver finished up 0.32 at 13.84, 0.02 off the high and 0.37 up from the low.
The price action in gold turned choppy as the market attempted to consolidate the week's gains. Gold prices did seem to get a slight lift from Bernanke's warnings regarding the banking system and "too big to fail" problem. But a lack of economic reports kept the gold market eying outside markets for direction. Gold prices mostly traded lower during the session as a recovery in the Dollar seemed to be applying some pressure. Although the Dollar based selling in gold seemed to be countered to a certain extent by the weaker equity market action in the afternoon trade. But after the sweeping move to the upside this week, simple profit taking may have been the primary cause pressuring gold during the session. But with the Fed's latest rescue plan escalating inflation fears, good investor buying interest showed up on price dips in gold limiting losses enabling the market to hold above a key chart level into the afternoon trade.
After some early session weakness silver managed to pulse higher as the trade action seemed to notably diverge from the selling interest seen in the gold market. In fact, silver managed to trade at the highest price level since February 25th despite a solid bounce in the Dollar. It was also surprising to see silver extend gains even though the copper market saw a pronounced slide from session highs. In another surprising twist, silver prices held up despite a fairly sizable break in equities. But the Press seemed to attribute silver's strength to active fund buying off bullish chart-based signals. Perhaps also investors may see silver as a better value than gold considering May silver is still roughly $6.00 below the July high.”- The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
U.N. panel urges replacing dollar with currency basket
The Statistics:
As of close of business: 3/20/2009
Gold Warehouse Stocks: | 8,779,324 | +4,820 |
Silver Warehouse Stocks: | 124,829,756 | +329,117 |
Global Gold ETF Holdings
[WGC Sponsored ETF’s]
| Product name | Total Tonnes | Total Ounces | Total Value |
New York Stock Exchange Arca (NYSE Arca) AND Singapore Exchange (SGX) AND Tokyo Stock Exchage (TSE) AND Hong Kong Stock Exchange (HKEx) | SPDR® Gold Shares | 1,103.29 | 35,471,832 | US$ 33,922m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 130.44 | 4,193,813 | US$ 3,999m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 12.49 | 400,388 | US$ 383m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 29.23 | 939,717 | US$ 898m |
NASDAQ Dubai | Dubai Gold Securities | 0.16 | 5,000 | US$ 5m |
Note: Change in Total Tonnes from yesterday’s data: SPDR added 18.96 tonnes to a new record high holding and the LSE subtracted 0.31 tonnes.
COMEX Gold Trust (IAU)
Profile as of 3/19/2009 | |
Total Net Assets | $2,059,617,380 | Ounces of Gold
in Trust | 2,149,676.053 |
Shares Outstanding | 21,850,000 | Tonnes of Gold
in Trust | 66.86 |
Note: No change in Total Tonnes from yesterday’s data.
Silver Trust (SLV)
Profile as of 3/19/2009 | |
Total Net Assets | $3,376,056,425 | Ounces of Silver
in Trust | 257,191,387.300 |
Shares Outstanding | 260,850,000 | Tonnes of Silver
in Trust | 7,999.55 |
Note: No change in Total Tonnes from yesterday’s data.
The Miners:
Newmont’s (NEM) denied interest in a merger with Barrick (ABX), Fronteer’s (FRG) work program, Central Sun’s (SMC) approved business combination with B2Gold (BTO.TO), and Excellon’s (EXN.TO) acquisition agreement with Silver Eagle (SEG.TO) were among the big stories in the gold and silver mining industry making headlines Friday.
WINNERS
1. Mines MGMT | MGN +14.45% $1.98 |
2. Hecla | HL +7.35% $2.19 |
3. Fronteer | FRG +6.69% $2.55 |
LOSERS
1. NovaGold | NG -8.53% $2.36 |
2. New Gold | NGD-8.02% $1.95 |
3. Nevsun | NSU-7.94% $1.16 |
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:
Acadian announces that ScoZinc Limited received an extention to CCAA stay period - More
- March 20, 2009 | Item | E-mail
Nevoro Inc. Appoints Interim Chief Financial Officer - More
- March 20, 2009 | Item | E-mail
Excellon and Silver Eagle Sign Definitive Agreement for Acquisition - "Excellon Resources Inc. (Toronto:EXN.TO - News) and Silver Eagle Mines Inc. (Toronto:SEG.TO - News) are pleased to announce that they have signed the definitive agreement for the previously announced acquisition by Excellon of all of the issued and outstanding common shares of Silver Eagle (the "Transaction"). Under the terms of the proposed Transaction, Silver Eagle shareholders will receive 0.2704 Excellon common shares in exchange for each Silver Eagle share held." More
- March 20, 2009 | Item | E-mail
Roxmark reports Hardrock Project drilling defines strong mineralization in several targets - More
- March 20, 2009 | Item | E-mail
Arehada Updates on Operations and Related Party Loan - More
- March 20, 2009 | Item | E-mail
Newmont Mining Denies Interest in Merger With Barrick Gold - "Newmont Mining Corp. denied that it’s interested in merging with Barrick Gold Corp., the world’s largest miner of the precious metal.
Newmont Chief Executive Officer Richard O’Brien said at a conference this week that he is open to sharing with Barrick processing plants, power generation and other infrastructure used at the two companies’ mines in Nevada, Omar Jabara, spokesman for Denver-based Newmont, said in an interview today." More
- March 20, 2009 | Item | E-mail
Mega Uranium Ltd. Announces Re-Approval of Shareholder Rights Plan - More
- March 20, 2009 | Item | E-mail
Central Sun Shareholders Approve Business Combination with B2Gold Corp. - "B2Gold Corp. (Toronto:BTO.TO - News) ("B2Gold" or the "Company") and Central Sun Mining Inc. (Toronto:CSM.TO - News)(AMEX:SMC - News) ("Central Sun") are pleased to announce that Central Sun shareholders have voted in favour of the previously announced business combination between Central Sun and B2Gold (the "Transaction") at a special meeting of Central Sun security holders held today in Toronto. The Transaction was approved by 99% of the votes cast representing 57% of Central Sun's outstanding shares." More
- March 20, 2009 | Item | E-mail
GobiMin Announces CAD$71 Million remitted outside of China - More
- March 20, 2009 | Item | E-mail
Benton announces extension of warrant term and receives approval for Golden Harp transaction - More
- March 20, 2009 | Item | E-mail
China Aims to Boost Underground Gold Reserves, Output - "China, the world’s biggest gold producer, will seek to increase its underground gold reserves by 800 metric tons and raise production to 290 tons this year, the Ministry of Industry and Information Technology said." More
- March 20, 2009 | Item | E-mail
Hawk Announces Shares for Debt Agreement With Service Providers - More
- March 20, 2009 | Item | E-mail
Premier Hardrock Drilling Returns best gold intersection to-date and defines strong gold mineralization at tenacity target - More
- March 20, 2009 | Item | E-mail
Garibaldi Closes Temoris Transaction, Receives 6,000,000 Shares of Paramount Gold and Silver Corp. - More
- March 20, 2009 | Item | E-mail
Paladin Energy Ltd: Kayelekera Uranium Project Fatality - More
- March 20, 2009 | Item | E-mail
AuEx Ventures, Inc.: 2009 Work Program for Long Canyon Announced - More
- March 20, 2009 | Item | E-mail
Fronteer Development Group Inc.: 2009 Work-Program to Build on Initial Gold Resource at Long Canyon, Nevada - "Fronteer Development Group Inc. (Toronto:FRG.TO - News)(AMEX:FRG - News) is pleased to announce the details of a US$14.1-million, joint-venture funded exploration program at its 51%-owned and operated Long Canyon gold project in northeastern Nevada." More
- March 20, 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 2009
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 20 March, 2009 | |
