-- Posted 8 April, 2009 | | Source: SilverSeek.com
| Close | Gain/Loss |
Gold | $884.50 | +$2.70 |
Silver | $12.355 | +$0.115 |
XAU | 123.34 | -0.48% |
HUI | 296.99 | +0.24% |
GDM | 922.07 | +0.12% |
JSE Gold | 2475.72 | +46.68 |
USD | 85.30 | +0.09 |
Euro | 132.60 | -0.06 |
Yen | 100.30 | +0.77 |
Oil | $49.38 | +$0.23 |
10-Year | 2.847% | -0.062 |
T-Bond | 127.59375 | +0.8125 |
Dow | 7837.11 | +0.61% |
Nasdaq | 1590.66 | +1.86% |
S&P | 825.16 | +1.18% |
The Metals:
Gold climbed as much as $7.45 to $889.25 in London before it fell to see a loss of $3.60 at $878.20 at about 10AM EST, but it quickly spiked back almost $10 higher and remained at about that level until the last 45 minutes of trade when it rose to a new session high of $890.02 and then fell back off a bit in the last 15 minutes of trade to end the day with a gain of 0.31%.
Silver jumped higher at the New York open to see a gain of $0.218 at $12.458 a little after 8:30AM EST before it dropped to see a loss of $0.07 at about 10AM EST, but it then rallied back higher into the close and ended with a gain of 0.94%.
Euro gold rose to about €666, platinum gained $14 to $1175, and copper rose slightly back to about $2.
Gold and silver equities dropped over 1% in the first half hour of trade before they rose to see about 1% gains midday, but they then fell back off into the close and ended mixed and near unchanged on the day.
The Economy:
Report | For | Reading | Expected | Previous |
Wholesale Inventories | Feb | -1.5% | -0.7% | -0.7% |
FOMC minutes from the fed’s last meeting in which they surprised the market with their intent to buy treasuries showed that fed members thought that economic activity will likely continue to contract over the next few months. They described the financial markets as “fragile and unsettled” and said the credit markets are “still not working well.” The minutes did not contain the specifics of the fed’s decision to buy treasuries that many traders were looking for.
Wholesale inventories drop by most in 17 years Yahoo
SEC advances 5 options on short-selling rules Yahoo
G7 recession to rage on: poll Reuters
Wholesale Inventories Fall by Record as Sales Rise Bloomberg
Obama's dilemma: Spend or save? Reuters
Mortgage applications show 4.7% increase for last week: MBA MarketWatch
Fed's Fisher says U.S. economy grim Yahoo
Venture Capital Confidence Jumps on Stimulus Plan, Survey Says Bloomberg
Tomorrow at 8:30AM EST brings Import and Export Prices for March, Initial Jobless Claims for 4/04, and the Trade Balance for February expected at -$36.5 billion.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil initially fell after the American Petroleum Institute reported rising inventories last night before it rose after the Department of Energy report was released later this morning, but it ended just slightly higher as the reports cancelled each other out somewhat. The DOE said oil inventories rose a smaller than expected 1.7 million barrels, gasoline inventories rose 600,000 barrels, and distillates fell a larger than expected 3.4 million barrels.
The U.S. dollar seesawed and ended slightly higher as traders debated whether they should put a little cash to work or instead raise more cash.
Treasuries rose along with the Dow, Nasdaq, and S&P in early trade as a homebuilder merger encouraged market participants to get involved in the market, but stocks fell back off and ended only slightly higher after the fed’s minutes turned investors cautious again.
Among the big names making news in the market today were Pulte Homes and Centex, Constellation Brands, the life insurers who may now also be getting TARP money, and Nordstrom.
The Commentary:
“Dear CIGAs,
“Risk” came back into vogue today and with it up went the Euro, crude oil, most commodities and also gold. Down went the Dollar and up went the Yen as carry trades were favored. Copper topped $2.00 once again although it could not hold above that level on the close. Even lowly natural gas moved higher. Poor ol’ pork bellies were left out of the party however (folks – eat more bacon!).
Gold bulls have managed to push prices back above the broken neckline of the short-term bearish head and shoulders pattern shown on the daily chart. That is a minor victory but they will need to continue their push to get it back above $900 to give themselves a bit of breathing room. That would allow some chart interpreters to see a consolidation range trade set up especially after price bounced off of the 100 day moving average.
Gold is still caught in the tug of war between risk and risk aversion with traders unsure exactly how to trade it. Physical buying of gold from overseas, especially India, is strong below the $900 level but that is insufficient in and of itself to push prices higher. It can serve to put a floor under the market but to take gold higher, it is going to require strong investment interest. Interestingly enough, the reported holdings of the gold ETF, GLD, have remain fixed for some time now.
A side note here is that a case can be made for gold forming a bullish head and shoulders pattern on the longer-term weekly charts. That would requires a close above the $1000 level, preferably nearer the $1030 level. That would provide a target near the $1360 level. Of course before that could happen, gold would first have to get back above $930 so do not get too excited if you are a bull. Plenty of technical work remains for gold bulls as bears are still in charge of the market for the short term as there is always the risk of further long liquidation if gold were to move below the 100 day moving average.
There were no deliveries for April gold reported today.
Silver drawdowns out of the Comex continue on their torrid pace with another 2 million ounces coming out yesterday. Whoever is taking the silver out of the HSBC warehouses has managed to draw down stocks from near the 80 million ounce mark (registered category) in December of last year to yesterday’s 63 million ounce mark. That is no small feat. I think it no coincidence that the reported holdings of the silver ETF, SLV, have also shown a reported increase since the first of this year of some 52 million ounces. If SLV is sourcing silver from the Comex warehouses, the paper silver shorts at the Comex would do well to begin getting nervous. Still, silver is not yet acting like any of the shorts at the Comex are concerned – yet! This is a fascinating development to monitor. Keep in mind that the only way to effectively break the back of the paper shorts at the Comex is to strip the metal out of the warehouses. If this continues for silver, and that is a big “IF”, we are going to see just how effective that strategy will be. Only the risk of having to stand and deliver can force the shorts out of the game. They do not fear regulators.”- Dan Norcini, More at JSMineset.com
“June Gold closed up 2.6 at 885.9. This was 6.7 up from the low and 5.8 off the high.
May Silver finished up 0.13 at 12.34, 0.13 off the high and 0.19 up from the low.
The gold market did manage a new high for the move Wednesday but overall the bull camp was probably a little disappointed with the action as a solid reversal in the Dollar and generally upbeat physical commodity market action could have been very supportive to gold prices. While seeing equity prices recover and also seeing a huge drop in US wholesale inventories could in a way downplay the flight to quality angle (which could prompt some gold bulls to liquidate), it is also possible that broad based macro economic optimism could foster renewed inflationary interest in gold. In fact, with a host of physical commodity prices higher and the Dollar lower, the prospect of inflation was elevated slightly during the Wednesday trade.
Like the gold market, the silver market managed a new high for the move, but according to some traders the market didn't exactly give off an impressive signal with the action. However, the US Dollar reversed and the equity market showed some bounce and given the strength in a number of physical commodities, it is possible that silver garnered some classic commodity support in place of the sagging flight to quality interest that attempted to return the silver market earlier this week.”- The Hightower Report, Futures Analysis and Forecasting
The Statistics:
As of close of business: 4/08/2009
Gold Warehouse Stocks: | 8,582,177 | -1,034 |
Silver Warehouse Stocks: | 115,810,161 | +208,635 |
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 | 1,127.37 | 36,246,127 | US$ 31,885m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 136.46 | 4,387,382 | US$ 3,884m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 12.49 | 400,306 | US$ 355m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 29.22 | 939,521 | US$ 826m |
NASDAQ Dubai | Dubai Gold Securities | 0.16 | 5,000 | US$ 4m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU)
Profile as of 4/7/2009 | |
Total Net Assets | $1,921,673,700 | Ounces of Gold in Trust | 2,178,445.298 |
Shares Outstanding | 22,150,000 | Tonnes of Gold in Trust | 67.76 |
Note: No change in Total Tonnes from yesterday’s data.
Silver Trust (SLV)
Profile as of 4/7/2009 | |
Total Net Assets | $3,291,466,013 | Ounces of Silver in Trust | 270,484,574.500 |
Shares Outstanding | 274,450,000 | Tonnes of Silver in Trust | 8,413.01 |
Note: No change in Total Tonnes from yesterday’s data.
The Miners:
Gammon Gold’s (GRS) 3-year operational outlook was the only big story in the gold and silver mining industry making headlines today.
WINNERS
1. Banro | BAA+11.92% $1.69 |
2. Richmont | RIC +7.62% $3.53 |
3. Entree | EGI +5.71% $1.11 |
LOSERS
1. Aurizon | AZK -9.07% $4.11 |
2. New Gold | NGD -3.93% $1.71 |
3. Western Goldfields | WGW -3.16% $1.685 |
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:
World Ventures Inc. - Private Placement Financing and Extension of Common Share Purchase Warrants - More
- April 08, 2009 | Item | E-mail
Coniagas Resources Limited Appoints New Director and Enters Into Consulting Agreement - More
- April 08, 2009 | Item | E-mail
Yale and EXMIN Sign Formal Agreement for Purchase of Urique Project, Mexico - More
- April 08, 2009 | Item | E-mail
Opawica Announces Initial Drill Results From Atikwa Lake and Dingman Properties 2009 Drilling - More
- April 08, 2009 | Item | E-mail
Trevali Receives Independent Resource Estimate for Santander Silver-Lead-Zinc Project, Peru - More
- April 08, 2009 | Item | E-mail
Helio Closes $5.25 Million Private Placements - More
- April 08, 2009 | Item | E-mail
Harte Gold Corp. Issue of Shares for Debt - More
- April 08, 2009 | Item | E-mail
New OGS Regional Aeromagnetic Survey Shows Four Structurally Favorable Horizons on Conquest's Detour Lake Properties - More
- April 08, 2009 | Item | E-mail
Elray Resources, Inc. Provides Overview and Update of Cambodian Property - More
- April 08, 2009 | Item | E-mail
Flag Resources current exploration projects, Rathbun and adjoining Mackelcan Township, Sudbury, Ontario. - More
- April 08, 2009 | Item | E-mail
Guyana Goldfields Inc. announces approval of annual and special meeting matters - More
- April 08, 2009 | Item | E-mail
Azimut and Rukwa discover uranium mineralization grading up to 1.21% U3O8 at North Minto and South Minto, Nunavik, Quebec - More
- April 08, 2009 | Item | E-mail
Urex to List on the Deutsche Boerse Stock Exchange - More
- April 08, 2009 | Item | E-mail
Ressources Appalaches Inc.: Better Than 98.6% Gold Recovery at the Dufferin Mine - More
- April 08, 2009 | Item | E-mail
Typhoon Obtains More Than 4 g/t Gold on Mc Donald Showing and Increases his Presence in This Sector - More
- April 08, 2009 | Item | E-mail
Norsemont Mining Closes C$14 Million Private Placement - More
- April 08, 2009 | Item | E-mail
First Gold Completes Second Closing of Private Placements for $230,000 - More
- April 08, 2009 | Item | E-mail
Orex Hits 6 Kilograms Silver Per Tonne Over 1.1 Metres on Zambranena Vein, Diamond Drilling to Commence - More
- April 08, 2009 | Item | E-mail
San Gold Commences High Grade Hinge Zone Development - More
- April 08, 2009 | Item | E-mail
Raytec Focusing on Precious Metals - More
- April 08, 2009 | Item | E-mail
Energy Fuels Announces Management Changes and the Acquisition of Additional Resource Property Adjoining the Energy Queen Mine - More
- April 08, 2009 | Item | E-mail
Eloro Intersects Zinc-Silver Rich Massive Sulphides 1.5km East of the Hurdman Sulphide Zone Extending Eastern Continuity of Mineralization - More
- April 08, 2009 | Item | E-mail
Ucore Releases Independent Rare Earth Mineralogical Studies - More
- April 08, 2009 | Item | E-mail
Conway Resources Inc. Announces the Final Results of Mineralogical Testing for the Conway, Paquin and Andresen Veins - More
- April 08, 2009 | Item | E-mail
Intrepid Files 2008 Annual Report & Advises of Annual General Meeting Date - More
- April 08, 2009 | Item | E-mail
Appointment of Mr. Patrick Evans as Independent Director to the Board of Anvil Mining Limited - More
- April 08, 2009 | Item | E-mail
Gammon Gold Releases 3-Year Operational Outlook to 2011 Showing a 67% to 81% Increase in Gold Equivalent Production - "As per the Company's commitment, we are today reporting our 3-year outlook for 2009 to 2011. Our organic production estimates demonstrate a compelling growth profile, which targets a 12% to 15% compounded annual growth rate in gold equivalent production over 2008's actual production." More
- April 08, 2009 | Item | E-mail
- Chris Mullen, Gold Seeker Report
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-- Posted 8 April, 2009 | |