-- Posted 17 April, 2009 | | Source: SilverSeek.com
| Close | Gain/Loss | On Week |
Gold | $866.80 | -$11.60 | -1.67% |
Silver | $11.83 | -$0.445 | -3.90% |
XAU | 114.99 | -3.24% | -6.33% |
HUI | 275.26 | -4.04% | -6.39% |
GDM | 853.26 | -3.66% | -6.27% |
JSE Gold | 2233.94 | -68.20 | -6.62% |
USD | 85.99 | +0.81 | +0.37% |
Euro | 130.22 | -1.64 | -1.09% |
Yen | 100.75 | +0.09 | +1.19% |
Oil | $50.33 | +$0.35 | -3.66% |
10-Year | 2.930% | +0.10 | +0.14% |
Bond | 125.34375 | -1.640625 | -0.46% |
Dow | 8131.33 | +0.07% | +0.59% |
Nasdaq | 1673.07 | +0.16% | +1.24% |
S&P | 869.60 | +0.50% | +1.52% |
The Metals:
Gold and silver fell in choppy trade throughout the day and gold ended near its session low of $864.65 with a loss of 1.32% while silver ended near its low of $11.799 with a loss of 3.67%.
Euro gold fell to about €664, platinum lost $4.50 to $1202, and copper closed at about $2.17.
Gold and silver equities fell about 4% by early afternoon before they rebounded slightly, but they still ended with over 3% losses on the day.
The Economy:
Report | For | Reading | Expected | Previous |
Michigan Sentiment | Apr | 61.9 | 58.5 | 57.3 |
All of this week’s other economic reports:
Next week’s economic highlights include Leading Economic indicators on Monday, Initial Jobless Claims and Existing home Sales on Thursday, and Durable Goods Orders and New Home Sales on Friday.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil rose back above $50, the U.S. dollar index climbed near the technically important 86 level, treasuries fell markedly, and the Dow, Nasdaq, and S&P rose again to make for the sixth straight week of gains as decent earnings reports and better than expected Michigan Sentiment raised hopes that the worst is behind us and that the economy will start expanding again.
Among the big names making news in the market Friday were Volkswagen, GM, BB&T, Mattel, Citigroup, and GE.
The Commentary:
“Dear CIGAs,
Increased selling pressure hit the gold market during today’s session as the broken neckline support level that had been serving to hold prices from moving lower finally gave way overnight. While the equity markets were not soaring higher, neither were they giving up much of their gains from yesterday. That too served to undercut safe haven flows in the yellow metal. The last straw was the ETF, GLD, finally showed some movement in its reported holdings yesterday – unfortunately that movement was a drop of 8 tons – the first such movement in nearly three weeks. Adding insult to injury, more Dollar strength left the bulls little to reinforce their side today.
Investment demand has been the driver of gold prices recently with the sharp climb in the ETF holdings serving to more than offset any slowdown in jewelry demand and increase of scrap sales. That investment demand, like it or not, is gauged by the industry by monitoring these reported gold holdings. Yesterday I mentioned whether or not the recent buyers of GLD were “sticky”; they had not been selling while gold at the Comex was moving lower in price. The drop in reported holdings is therefore worrisome although one day a trend does not make (I sound like Master Yoda speaking here).
Gold has now moved down the test the former swing low made in early April. Bulls must hold prices here to avoid a sharp drop down to $852 - $850. Watching the price action by the minute today, it is evident that the bears are working hard to breach that level and get to the sell stops sitting just under that level. Longs are valiantly attempting to prevent that from occurring but they need help from some other outside source (much stronger crude, a change in the Euro-Yen cross, or sharply lower stocks) to bolster their line of defense. The problem is that judging from the open interest readings, not only are some longs running, but new sellers are now coming into the market with several funds taking sizeable short positions. That 100 day moving average is keenly watched by technically oriented trading funds and now that it has been breached, their algorithms have them selling. It will take some strong value based buying early next week to keep the technical picture from breaking down further. Bulls need to push prices back above $880 pronto like.
The HUI and the XAU look to be targeting the early March lows.
Safe haven flows into bonds are also seemingly coming to an abrupt halt with prices moving to a one month low. They still remain trapped within the confines of that huge price range made the day of the Fed’s announcement of quantitative easing but they are well off the spike high that occurred back then and less than two points away from that day’s low. A break of that level would have profound implications for the future course of interest rates. I find it telling that in spite of widely publicized and much heralded Federal Reserve buying of longer dated Treasuries, prices cannot move higher. It is obvious that a huge supply is lurking above the market with traders apparently deeply concerned how much of this mammoth amount of new debt can be sold. What should be particularly troubling, is that we have just now scratched the surface of this new indebtedness, that has now effectively enslaved not only the current generation of Americans, but your children and their children.”- Dan Norcini, More at JSMineset.com
“June Gold closed down 11.9 at 867.9. This was 2.3 up from the low and 7.1 off the high.
May Silver finished down 0.465 at 11.79, 0.26 off the high and 0.015 up from the low.
The gold market was under early pressure Friday morning off currency related pressure and also from what seemed to be a further increase in global risk appetites. The Dollar action was definitively strong on Friday with the June Dollar index actually managing to reach the highest level since April 1st. With news of a slight setback in some Gold ETF holdings and rather significant losses in gold prices this week, some in the trade are becoming fearful of stop loss selling by weak handed traders. In the end, the combination of declining flight to quality sentiment, bad technical action and periodic optimism toward paper assets seemed to unnerve the bull camp.
The silver market managed a distinct downside extension and in the process the July contract reached the lowest level since January 29th. With gold and the industrial metals lower today, the silver market couldn't find much in the wave of support from outside market action. Like the gold market, the silver market was under pressure because of Dollar strength and also because increased risk tolerance seemed to be siphoning off money from the precious metals markets. Given the damage on the silver charts today it is also possible that technical stop loss selling was adding to the downside tilt in prices.”- The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Jon Herring: Gold is manipulated but buy it anyway
Obama's Wall Street ties doom bank rescue, Stiglitz says
William Pesek: China isn't the only currency manipulator
If currency market is rigged, might gold be too?
The Statistics:
As of close of business: 4/17/2009
Gold Warehouse Stocks: | 8,444,142 | +404 |
Silver Warehouse Stocks: | 115,954,726 | +600,434 |
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) | SPDR® Gold Shares | 1,119.43 | 35,990,642 | US$ 31,684m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 133.05 | 4,277,543 | US$ 3,711m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 13.15 | 422,066 | US$ 367m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 29.22 | 939,428 | US$ 827m |
NASDAQ Dubai | Dubai Gold Securities | 0.16 | 5,000 | US$ 4m |
Note: Change in Total Tonnes from yesterday’s data: SPDR subtracted 8.25 tonnes, the LSE subtracted 3.17 tonnes, and the ASX added 0.01 tonnes.
COMEX Gold Trust (IAU)
Profile as of 4/16/2009 | |
Total Net Assets | $1,915,165,859 | 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 4/16/2009 | |
Total Net Assets | $3,420,885,401 | 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:
Revett’s (RVM.TO) announcement that Silver Wheaton (SLW) has exercised its participation rights, Arian Silver’s (AGQ.V) update, and SilverCrest’s (SVL.V) revised letter of intent were among the big stories in the gold and silver mining industry making headlines Friday.
WINNERS
1. Tanzanian Royalty | TRE +5.26% $3.00 |
2. Nevsun | NSU +3.48% $1.19 |
3. Gammon Gold | GRS +0.93% $6.49 |
LOSERS
1. Exeter | XRA-7.12% $2.61 |
2. Hecla | HL -7.11% $2.09 |
3. Harmony | HMY-6.74% $8.17 |
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:
Golden Share Modifies Stock Option Plan - More
- April 17, 2009 | Item | E-mail
Anglo Swiss Resources Inc. Extends Warrants - More
- April 17, 2009 | Item | E-mail
AXMIN Announces Further Details Regarding Private Placement Offering - More
- April 17, 2009 | Item | E-mail
Eagle Plains/Blind Creek Complete Blende Sale - More
- April 17, 2009 | Item | E-mail
Revett Announces Silver Wheaton Exercises Participation Rights - "Revett Minerals Inc., ("TSX-RVM") ("Revett" or the "Company") is pleased to announce that Silver Wheaton has exercised its participation right to acquire 3,855,558 Revett Minerals common shares." More
- April 17, 2009 | Item | E-mail
FNX Responds to Sudbury Shutdown - More
- April 17, 2009 | Item | E-mail
AXMIN Appoints Vice President of Exploration - More
- April 17, 2009 | Item | E-mail
Amex Exploration Closes Second Tranche of a $500,000 Financing - More
- April 17, 2009 | Item | E-mail
Arian Silver Update - "Arian Silver Corporation ("Arian" or the "Company")(CDNX:AGQ.V - News)(AIM: AGQ)(PLUS: AGQ)(Frankfurt:I3A.F - News) announces that it has closed the final stage of a two-part share exchange transaction with Grafton Resource Investments Ltd ("Grafton") (see Arian's press releases dated 26 February and 27 March 2009)." More
- April 17, 2009 | Item | E-mail
High Desert Gold Corporation Prepares to Initiate a Phase II Drill Program Designed to Extend Gold Mineralization at the Canasta Dorada Property in Sonora - More
- April 17, 2009 | Item | E-mail
Glen Eagle Resources Inc.: Binding Letter of Intent - More
- April 17, 2009 | Item | E-mail
Kinbauri Secures $32M Funding for El Valle/Carles - More
- April 17, 2009 | Item | E-mail
Premier signs final Lennie Property Acquistion Agreement - More
- April 17, 2009 | Item | E-mail
Gitennes provides update on Urumalqui Project, Peru - More
- April 17, 2009 | Item | E-mail
Colorado Goldfields Inc. -- First in a Special Series on the Pride of the West Mill - More
- April 17, 2009 | Item | E-mail
Valdez Gold Inc. Announces the Initiation of a Diamond Drill Programme on its Gaby II Claim in Chihuahua State, Mexico - More
- April 17, 2009 | Item | E-mail
Zambia Copper Investments Limited - Binding Offer to African Copper PLC - More
- April 17, 2009 | Item | E-mail
SilverCrest Mines Inc. Revises Letter of Intent With Sandstorm Resources Ltd. for Development Financing of the Santa Elena Project, Mexico - "SilverCrest Mines Inc. (the "Company") (TSX VENTURE:SVL - News) is pleased to announce that it has entered into an amended and restated letter of intent with Sandstorm Resources Ltd. (Sandstorm). The terms of the original letter of intent enabled Sandstorm to acquire 20% of the future life of mine gold production from SilverCrest's Santa Elena project (the "Santa Elena Project") located in Mexico by providing US$12 million in development financing ("up-front payment") plus ongoing payments and at SilverCrest's option, debt financing of up to US$6 million." More
- April 17, 2009 | Item | E-mail
- Chris Mullen, Gold Seeker Report
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-- Posted 17 April, 2009 | |
