-- Posted 27 May, 2009 | | Source: SilverSeek.com
| Close | Gain/Loss |
Gold | $953.25 | +$0.60 |
Silver | $14.825 | +$0.225 |
XAU | 149.02 | -1.63% |
HUI | 370.16 | -1.64% |
GDM | 1133.26 | -1.68% |
JSE Gold | 2610.63 | -44.79 |
USD | 80.41 | +0.28 |
Euro | 138.89 | -1.00 |
Yen | 105.03 | -0.26 |
Oil | $63.45 | +$1.00 |
10-Year | 3.695% | +0.202 |
T-Bond | 116.6875 | -1.96875 |
Dow | 8300.02 | -2.05% |
Nasdaq | 1731.08 | -1.11% |
S&P | 893.06 | -1.90% |
The Metals:
Gold fell as much as $6.45 to $946.20 in Asia and remained at about that level in London before it climbed back higher in New York and saw a $6.07 gain at $958.72 by early afternoon, but it then fell back off a bit in the last hour of trade and ended with a gain of just 0.06%. Silver dropped as much as $0.17 to $14.43 in London before it rose to as high as $14.962 in New York and then also fell back off a bit in the last hour of trade, but it still ended with a gain of 1.54%.
Euro gold climbed to about €685, platinum lost $1 to $1132.50, and copper fell a few cents to about $2.12.
Gold and silver equities fell over 1% in the first half hour of trade before they rose to see over 1% gains midday, but they then fell back off with the major indices into the close and ended with over 1% losses.
The Economy:
Report | For | Reading | Expected | Previous |
Existing Home Sales | Apr | 4.68M | 4.66M | 4.55M |
U.S. ‘Problem’ Banks Rise to 305, Highest Since 1994, FDIC Says Bloomberg
U.S. Recession May Soon End, Business Economists Say Bloomberg
Tomorrow at 8:30AM EST brings Initial Jobless Claims for 5/23 expected at 628,000, Durable Goods Orders for April expected at 0.5%, and Orders excluding transportation expected at -0.3%. At 10AM is the New Home Sales report for April expected at 360,000.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil and the U.S. dollar index rose as better than expected home sales data kept hopes high over a potentially rebounding economy, but treasuries and the Dow, Nasdaq, and S&P all fell rather markedly on worries over evaporating demand for treasury auctions.
Among the big names making news in the market today were BofA, GM, and Staples.
The Commentary:
“Dear CIGAs,
Once again, as was the case in yesterday’s session, dip buyers were lurking beneath the market to take advantage of any setback in price to buy. Their buying took gold back into the plus column after the wee bit of Dollar strength emboldened the usual gold sellers. It sure seems to me that the gold bears are beginning to get a bit frustrated since the market is not behaving as they have come to expect. What appears to have changed is that the longs are standing their ground and are refusing to be stampeded out. Since it is panicked long liquidation that enables the bullion banks and their pals to rape and plunder the Comex gold buyers, any change in the stance of the bulls short circuits the perma-bear strategy. That is forcing those who hitch themselves to the bullion bank wagon to cover which in turn helps drive the price back off the session lows. So far this has occurred twice in the last two sessions. If this continues, overhead resistance is not going to hold and price is going to move higher. This kind of action is what I am accustomed to seeing in a market that is in a bullish posture so perhaps we are indeed seeing a change in the psychology of the bulls. That would confirm the reports of very large hedge fund and index fund purchases of gold. It also confirms that continued increase in open interest indicative of fresh buying coming in.
Activity is shifting to the August contract as the rollover intensifies before June goes into its delivery period. It will be interesting to see how that goes next month and whether or not we get another large set of stoppers and a drawdown in the Comex warehouse stocks, although I must say that I along with an increasing number of others who watch these things are convinced that the numbers being reported for both Gold and Silver stocks are as close to make believe as Cinderalla’s magic carriage or Dorothy’s ruby slippers.
One of the things I am noticing and I believe merits mention is the continued disappearing act of the US long bond. It is no coincidence that as the bond market disappears into the abyss that gold is steadily moving higher. Simply put – investors looking to protect their wealth are eschewing Treasuries and more and more favoring gold. And why shouldn’t they? The current Administration and its allies in the spendthrift Congress are creating Petri dishes full of healthy debt bacteria and providing them with everything favorable for cell division and multiplication. “Yo Paulie – ya need another couple trillion in debt?” “Sure thing Mickey – give me 3 trillion for the heck of it”. Would any investor in their right mind expect to protect or preserve their wealth by stashing it into long term US debt??? This is the reason that as the bonds sink, gold rises. The technical breakdown in the US long bond is a signal that the bull run in gold has begun in earnest. Until bonds find some kind of support on the charts, there really is no reason to sell gold. After all, what kind of safe haven is left particularly one that can protect you from the coming ravages of inflation?
Along this same line I should also note that crude oil (basis July) has broken out today into another new high for the year moving up to $63.45 as I write this. Once again the CCI (Continuous Commodity Index) is moving higher with unleaded gasoline approaching $1.90 at the wholesale level. It is now at the highest level since October of last year. Get ready for some more pain at the pump as driving season kicks off in earnest. Don’t worry however – now that Obama and the feds have taken over the car companies, we can all be happy and content squeezing our average sized family of 4.3 into a go cart that runs on a wind up rubber band and needs nothing but a giant sail to move it down the road. After all, what is $4.00 gasoline to those whose cars runs on the Energizer Bunny? Seriously, this move higher in the crude complex is noteworthy as the one saving grace for many unemployed Americans has been the relatively cheap cost of gasoline and energy. Once those begin to rise, cash strapped consumers are going to be caught in a vicious snare of rising food prices (see grains) and energy bills at a time in which many have turned to maxing out their credit cards in order to make ends meet while they look for new employment elsewhere.
I tell you something that is downright bizarre - it is watching the British Pound shooting nearly straight up even after the fact that one of the rating agencies threatened to downgrade its sovereign debt. It just goes to show you how strongly the aversion to the US Dollar has become – traders are willing to buy just about anything rather than the Dollar!
Judging by the price action in the US Dollar, it sure looks like someone has sprayed a tank full of super-concentrated Round-Up on all those “Green shoots” that are supposedly sprouting up all over the place.
Technically, gold looks like it is setting up for a run at major resistance near $967-$970 basis June. All of the major moving averages, the 10, 20, 40, 50, and 100 day, are moving higher indicating the bullish trend in the market. Momentum needs to be watched as the Bears are going to fight in an attempt to hold it below the $967 mark. They do not want a charge from hedge funds that would take it to $1,000 should bulls be able to muster sufficient force to propel price up through that last resistance level shown on the chart. The bullion banks are trying to soak up all the incoming bids once again. How does it feel to have these bastards using your TARP money to sell paper gold at the Comex?”- Dan Norcini, More at JSMineset.com
“Dear CIGAs,
With the Fed prepared to buy Treasuries, the US will not at this time face a failed auction. If they weren’t that would be the scenario we would now be facing.
The under-current of the utilization of quantitative easing is hyper inflationary because it is so dollar negative.
Remember hyperinflation is NOT an economic event, it is a currency event.
If you study market history you will see the glaring truth that the Weimar experience would not have happened if German debt markets were not used as a vehicle to heavily short the Weimar Mark.
It was the Weimar mark short sellers that created the Weimar hyperinflation just as the OTC derivative shorts will cream the US dollar with the unavoidable effect being hyperinflation.
I know of what I speak. About the above there is no doubt. There is no real argument to the contrary and you can count the number of those outside of our community on one hand who understand how hyperinflation is created.”- Jim Sinclair, JSMineset.com
“August Gold closed up 0.1 at 955.2. This was 4.2 up from the low and 6.3 off the high.
July Silver finished up 0.265 at 14.865, 0.155 off the high and 0.35 up from the low.
While the August gold contract managed to take out the prior sessions high, the market wasn't initially able to hold that pulse up move. Perhaps lingering bullishness toward the Dollar limited the bull case or perhaps fears of ongoing slowing provided the bear camp with their confidence. It almost appeared as if weakness in the equity market provided gold with its pulse up more but as equity prices became progressively weaker, gold was unable to garner a definitive lift. Therefore, it would seem like the flight to quality or safe haven themes were not a key feature of the gold trade on Wednesday.
The silver market clearly seemed to outperform the gold market on Wednesday but with the rest of the metals markets remaining weak, the silver market action was really a surprising event. Perhaps talk of increased spread interest of silver over gold prompted the divergence between the key precious metals markets, as recent classic fundamental news for silver wasn't that helpful.”- The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
John Taylor: Exploding debt threatens America
Here's what happens if you believe what the coins say
Join GATA at the Vancouver conference June 7 and 8
Jay Taylor interviews GATA secretary on gold suppression
Gene Arensberg's 'Got Gold Report' posted at Stockhouse
The Statistics:
As of close of business: 5/27/2009
Gold Warehouse Stocks: | 8,322,609 | +7,527 |
Silver Warehouse Stocks: | 119,909,827 | -450,766 |
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 | 1,118.76 | 35,969,105 | US$ 33,981m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 134.10 | 4,311,303 | US$ 4,099m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 13.50 | 433,132 | US$ 413m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 31.28 | 1,005,780 | US$ 950m |
NASDAQ Dubai | Dubai Gold Securities | 0.16 | 5,000 | US$ 5m |
Note: Change in Total Tonnes from yesterday’s data: The JSE added 0.24 tonnes.
COMEX Gold Trust (IAU)
Profile as of 5/26/2009 | |
Total Net Assets | $2,112,490,363 | Ounces of Gold in Trust | 2,217,048.759 |
Shares Outstanding | 22,550,000 | Tonnes of Gold in Trust | 68.96 |
Note: No change in Total Tonnes from yesterday’s data.
Silver Trust (SLV)
Profile as of 5/26/2009 | |
Total Net Assets | $3,836,811,896 | Ounces of Silver in Trust | 268,400,195.900 |
Shares Outstanding | 272,450,000 | Tonnes of Silver in Trust | 8,348.18 |
Note: No change in Total Tonnes from yesterday’s data.
The Miners:
Revett’s (RVM.TO) hedging. Coeur’s (CDE) completed reverse stock split, and Fresnillo’s production were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Taseko | TGB +5.77% $1.65 |
2. Mines MGMT | MGN +5.00% $1.68 |
3. Western Goldfields | WGW +3.20% $2.58 |
LOSERS
1. Jaguar | JAG -6.39% $7.32 |
2. Solitario | XPL -5.98% $1.73 |
3. Northern Dynasty | NAK -4.93% $7.72 |
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:
Champion Minerals Intersects Up to 28.7% Iron on the Fire Lake North Claim Block, Fermont Iron Property, Northeastern Quebec - More
- May 27, 2009 | Item | E-mail
Randsburg announces loan financing - More
- May 27, 2009 | Item | E-mail
VMS Ventures Inc.: Sails Lake 2009 Exploration Plans - More
- May 27, 2009 | Item | E-mail
Revett Minerals Announces Hedging for Second Half of 2009 - "Although we feel copper and silver will be strong in the long-term, we feel that near term hedging is prudent risk management to secure our short term cash flows. This supports our upcoming operating plans, which includes the development of our C bed deposit at the Troy mine in Q3 2009. We believe this phase of our development will provide higher overall grades and further improve productivity and lower costs." More
- May 27, 2009 | Item | E-mail
Trelawney Completes Financing - More
- May 27, 2009 | Item | E-mail
GobiMin Announces First Quarter 2009 Results - More
- May 27, 2009 | Item | E-mail
Uranium One Provides Kazakhstan Update - More
- May 27, 2009 | Item | E-mail
Avalon Announces 1,259,000 Share Purchase Warrants Exercised and Comments on the Recent Increase in Share Price and Trading Volumes - More
- May 27, 2009 | Item | E-mail
Azteca Gold Corp.: Target Intersected at Two Mile - More
- May 27, 2009 | Item | E-mail
African Copper Announces Update on Interim Financial Statements and MD&A - More
- May 27, 2009 | Item | E-mail
Venezuela ends 2nd Gold Reserve Brisas' concession - "Venezuela has ended a second concession held by Gold Reserve (GRZ.TO) at the Brisas project in one of Latin America's largest gold deposits, a government move to boost state control of key economic sectors. The government's official publication on Wednesday declared "extinct" the Brisas del Cuyuni concession, one of several properties making up the Brisas project." More
- May 27, 2009 | Item | E-mail
Uranium Star - Initial Trench Results on Green Giant Vanadium Project - More
- May 27, 2009 | Item | E-mail
Uruguay Mineral Exploration Inc: Diamond Farm-out - More
- May 27, 2009 | Item | E-mail
US Canadian Minerals Inc. Introduces the COD Mine, Mercator's Proximity and NI 43-101 Schedule - More
- May 27, 2009 | Item | E-mail
New Guinea Gold Corporation: Drilling in Central Oxide Zone, Sinivit, Papua New Guinea, Gives Results to 4m at 57.30g/t Gold - More
- May 27, 2009 | Item | E-mail
Anglo Canadian Uranium Corp. Announces Otish Basin Uranium Exploration Results - More
- May 27, 2009 | Item | E-mail
Coniagas Resources Announces Option to Acquire Additional Lithium Property - More
- May 27, 2009 | Item | E-mail
La Ronge Gold Project receives Saskatchewan Ministerial Approval - More
- May 27, 2009 | Item | E-mail
Tribute Minerals Begins Airborne Z-TEM Survey on James Bay Lowlands Land Holdings- Geotech Airborne Magneto Telluric at the Forefront in Airborne Technology - More
- May 27, 2009 | Item | E-mail
Landore Resources Limited - Drilling update - Junior Lake-Nickel Project - B4-7 Deposit - More
- May 27, 2009 | Item | E-mail
Apoquindo Announces Start of an $8M Work Program by Antakena Mining JV, for the Development of its Copper Oxide Project Antofagasta Region, Chile - More
- May 27, 2009 | Item | E-mail
Delta Uranium Acquires Interest in Wheeler River Area of Athabasca Basin, Saskatchewan - More
- May 27, 2009 | Item | E-mail
Hana Mining Intersects 26 Meters Grading 1.63% Cu and 10.8 g/t Ag Including 9 Meters Grading 2.68% Cu and 19.9 g/t Ag at Zone 5-Ghanzi Copper-Silver Project - More
- May 27, 2009 | Item | E-mail
Hochschild Exercises Right of First Refusal to Purchase EXMIN Interest in Moris Mine - More
- May 27, 2009 | Item | E-mail
Normabec Announces the Engagement of Haywood Securities to Advise on Strategic Alternatives - More
- May 27, 2009 | Item | E-mail
Golden Share Mining Corporation: Historical Data Outlines Gold Mineralization Over 1 Km2 in the Shebandowan Intrusive Complex of the Pistol Lake Property - More
- May 27, 2009 | Item | E-mail
Shoreham Announces Suspension of $3,000,000 Private Placement - More
- May 27, 2009 | Item | E-mail
Columbus Silver Corporation: Mogollon Silver-Gold Project Review Previously Unreported Significant Drilling Results - More
- May 27, 2009 | Item | E-mail
Volta Resources Inc. - Bui Dam update - More
- May 27, 2009 | Item | E-mail
Romarco expands mineralization to North - Drills 27.4 meters of 2.9 g/t Au - More
- May 27, 2009 | Item | E-mail
Alexis Identifies New Resource Areas Adjacent to Lac Herbin Mine and Two Areas With Mine Discovery Potential - More
- May 27, 2009 | Item | E-mail
Virginia to Sell its Dieppe Property to Agnico Eagle Mines - More
- May 27, 2009 | Item | E-mail
MEXIVADA samples up to 2.5 g/t Au and 11.25 g/t Ag at Goldstorm in Nevada; Delineates Carlin- and Midas-Style Gold-Silver Targets - More
- May 27, 2009 | Item | E-mail
Wesdome Gold Mines Ltd. - Schist Zone shapes up 202 gAu/tonne over 3.2 metres - More
- May 27, 2009 | Item | E-mail
Crowflight Appoints Mike Kelly as President & CEO and Mike Hoffman as Chairman - More
- May 27, 2009 | Item | E-mail
Wallbridge Mining Defines Highly Conductive Drill Targets on Sudbury Parkin Offset Dyke Properties - More
- May 27, 2009 | Item | E-mail
DOT Resources Reports First NI 43-101 Resource Estimate - More
- May 27, 2009 | Item | E-mail
Yorbeau Commences Drilling with Two Rigs - More
- May 27, 2009 | Item | E-mail
Aurelio to Acquire Portfolio of Exploration and Development-Stage Gold Projects in Nevada - More
- May 27, 2009 | Item | E-mail
Thelon Ventures Ltd.: Winter Drill Program Completed at Pasfield Lake, Athabasca - More
- May 27, 2009 | Item | E-mail
Detour Gold Reports an Updated Mineral Resource Estimate on Block A Joint Venture Property - More
- May 27, 2009 | Item | E-mail
Coeur Announces Completion of 1-for-10 Reverse Stock Split on NYSE - "Coeur d’Alene Mines Corporation (NYSE:CDE - News) (TSX:CDM - News) (ASX:CXC - News) announced today that its previously disclosed 1-for-10 reverse stock split was completed effective as of 6:01 p.m., Eastern time, on May 26, 2009. Trading of Coeur’s common stock on the NYSE will begin on a split-adjusted basis at the open of trading today, May 27, 2009, under Coeur’s new CUSIP number, 192108504 (Old CUSIP Number: 192108108). It is expected that the common stock will commence trading on the Toronto Stock Exchange on a split-adjusted basis at the opening of the market on or about May 29, 2009." More
- May 27, 2009 | Item | E-mail
Record silver output at Fresnillo - "Fresnillo said attributable silver production reached record levels in 2008; silver resources increased to 1.1 billion ounces from 837 million ounces, and gold resources reached 12.0 million ounces from 9.5 million ounces. EBITDA rose 21% in the year." More
- May 27, 2009 | Item | E-mail
- Chris Mullen, Gold Seeker Report
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-- Posted 27 May, 2009 | |