-- Posted 2 July, 2009 | | Discuss This Article - Comments:
Source: SilverSeek.com
Please Note: US markets are closed on Friday in observance of Independence Day. Canadian markets will remain open. The Gold Seeker report will return on Monday. The release of this week’s CoT report is delayed until Monday.
| Close | Gain/Loss | On Week |
Gold | $930.75 | -$10.25 | -1.03% |
Silver | $13.39 | -$0.34 | -5.10% |
XAU | 139.97 | -3.02% | -2.66% |
HUI | 342.68 | -3.35% | -3.06% |
GDM | 1051.90 | -3.06% | -2.64% |
JSE Gold | 2285.32 | -87.18 | -6.47% |
USD | 80.24 | +0.58 | +0.51% |
Euro | 140.04 | -1.44 | -0.47% |
Yen | 104.31 | +0.81 | -0.73% |
Oil | $66.73 | -$2.58 | -3.51% |
10-Year | 3.495% | -0.049 | -0.31% |
Bond | 118.9375 | +0.703125 | +0.34% |
Dow | 8280.74 | -2.63% | -1.87% |
Nasdaq | 1796.52 | -2.67% | -2.27% |
S&P | 896.45 | -2.91% | -2.44% |
The Metals:
Gold fell all the way to $926.45 after the release of this morning’s jobs report before it rebounded back higher into the close, but it still ended with a loss of 1.09%. Silver dropped to as low as $13.29 before it also rebounded, but it still ended with a loss of 2.48%.
Euro gold fell to about €663, platinum lost $7.50 to $1185, and copper fell a few cents to about $2.30.
Gold and silver equities fell over 4% at the open before they rebounded back higher midday, but they still ended with over 3% losses on the day.
The Economy:
Report | For | Reading | Expected | Previous |
Nonfarm Payrolls | June | -467K | -367K | -322K |
Unemployment Rate | June | 9.5% | 9.6% | 9.4% |
Hourly Earnings | June | 0.0% | 0.1% | 0.1% |
Average Workweek | June | 33.0 | 33.1 | 33.1 |
Initial Claims | 6/27 | 614K | 615K | 630K |
Factory Orders | May | 1.2% | 0.9% | 0.5% |
The BLS net birth/death adjustment added 185,000 payrolls to June’s data.
All of this week’s other economic reports:
Next week’s economic highlights include ISM Services on Monday, Consumer Credit on Wednesday, Initial Jobless Claims and Wholesale Inventories on Thursday, and Export and Import Prices, the Trade Balance, and Michigan Sentiment on Friday.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil fell almost 4% on renewed worries over demand. It will be a year ago tomorrow that oil set its record closing high at $145.29 a barrel.
The U.S. dollar index and treasuries rose on cash raising/safe haven buying as the worse than expected jobs report raised worries over the economy and sent the Dow, Nasdaq, and S&P almost 3% lower on the day.
Among the big names making news in the market Friday were J&J and Elan, Exelon and NRG, Lear, AIG, and GM.
The Commentary:
“Dear CIGAs,
Were it not for the fact that such serious sums of money are involved, it would be comical watching the happenings in our idiotic markets these days. Here we get the worst unemployment numbers (9.5%) since August 1983 (and that is just the official number, which is bogus), and traders flee stocks but for some odd reason rush into the “safety” of the US Dollar and that of Japan’s Yen, which as we all surely know by now is the strongest economy in the world at the current time! Nothing like the comfort of knowing that you are getting yields of less than 2% on your money to let you sleep well at night. Yeah, sure…
I really do wonder what historians commenting on this period at some point in the future are going to write when they attempt to explain the madness in rational terms. All I know is that we will have lived through this and will be able to say the entire global investment community lost their collective minds for a season.
Suffice it to say for now that once the stinker of a jobs report came out this morning, the deflationist psychology took over once again and the inflationist psychology went out the window – once again. Back and forth, up and down, in and out and around we go over and over and over again. Like I have been writing all week long – why bother even watching this crap any more. It is a waste of constructive time. Monday morning of next week we will probably be sitting here watching the exact opposite of what we saw take place today and remarking how the “green shoots” are thriving and well after having another spray tank full of Round Up applied to them today.
Of course, once the “safety” of the Dollar was the play of the day, and once crude oil got thumped, down went gold after yesterday’s very strong performance and down went the HUI. Yawn – someone wake me up in September.
Open interest in Comex gold continues moribund. That too is characteristic of a market stuck in a rut where there is no clear consensus.
Gold will need to close above $950 to get anything going on the top side.
Other than that there is really not much to say about any of this – deflation is battling inflation and until one side gets a clear advantage and dethrones the thinking in the other camp, we are going to see no trends, no orderly markets, no sanity and nothing but idiotic volatility and casino-like markets.
The markets have been completely taken over by the day trading, one minute bar chart geeks who wouldn’t know a pork belly from a brisket cut or a grain of wheat from a cocoa pod but who are enamored with lots of squiggly lines and dream of coming back from their bathroom break and discovering that they have traded in and out of the same market 15 times during that period and made $100,000 on each turn…
The rest of us normal people who actually have lives to lead and families to raise, etc. are better served keeping a longer term perspective and understanding that the Dollar’s days of supremacy are forever over and that the rise of the BRIC nations means that America is beginning to go the same path as the once mighty and proud British Empire. Its leaders too spent it into oblivion and destroyed its currency in the process.
China is slowly and surely taking steps to make the yuan more readily adaptable to taking a larger role in international trade while Brazil and India also begin to flex their economic muscles and demand a larger role on the international stage.
Quo Vadis America?”- Dan Norcini, More at JSMineset.com
“August Gold closed down 10.3 at 931. This was 4.4 up from the low and 4.7 off the high.
September Silver finished down 0.352 at 13.408, 0.107 off the high and 0.118 up from the low.
The gold market retraced yesterday's gains today in the wake of some very disappointing US economic data that indicated that the global economic recovery is still far off. This morning's non-farm payrolls report showed a decline of 467,000 jobs in June, which was worse than expected. US unemployment has reached 9.5%. The stock market was down sharply and the dollar was stronger. All of this data reduces inflationary concerns and puts pressure on precious metals. Despite the disappointing economic data and the volatile markets, August gold managed to stay inside the past two days' ranges. A modest improvement in factory orders (up 1/2% in May) apparently lent little support.
The silver market performed even worse than gold today, as the bearish economic data hit silver on the fundamental demand front as well as on the precious metals/flight to quality front. July silver broke to new lows on the week and traded to its lowest level since May 6. Silver is also an industrial metal, so the poor economic data hurt the outlook for future demand, and the market may have also felt pressure from declines in the stock market, copper, energies as well as the stronger dollar. Even the improvement in factory orders did little to counteract the disappointing jobs data.”- The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
King World News interviews GATA
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The Statistics:
Activity from: 7/01/2009
Gold Warehouse Stocks: | 8,894,687 | +157,403 |
Silver Warehouse Stocks: | 117,583,739 | - |
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 | 1,120.55 | 36,026,770 | US$ 33,790m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 134.50 | 4,324,396 | US$ 4,027m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 13.72 | 440,343 | US$ 411m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 37.25 | 1,197,750 | US$ 1m |
NASDAQ Dubai | Dubai Gold Securities | 0.16 | 5,000 | US$ 5m |
Note: Change in Total Tonnes from yesterday’s data: The LSE subtracted 0.49 tonnes.
COMEX Gold Trust (IAU)
Profile as of 7/1/2009 | |
Total Net Assets | $2,140,334,836 | Ounces of Gold
in Trust | 2,275,302.120 |
Shares Outstanding | 23,150,000 | Tonnes of Gold
in Trust | 70.77 |
Note: No change in Total Tonnes from yesterday’s data.
Silver Trust (SLV)
Profile as of 7/1/2009 | |
Total Net Assets | $3,827,232,150 | Ounces of Silver
in Trust | 280,510,676.900 |
Shares Outstanding | 284,850,000 | Tonnes of Silver
in Trust | 8,724.86 |
Note: No change in Total Tonnes from yesterday’s data.
The Miners:
Jaguar’s (JAG) stock listing transfer to the NYSE and Coeur’s (CDE) debt reduction were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Entree | EGI +7.21% $1.19 |
2. Jaguar | JAG+2.85% $7.94 |
3. US Gold | UXG+1.08% $2.80 |
LOSERS
1. Mines MGMT | MGN-7.65% $1.57 |
2. Harmony | HMY -6.67% $9.66 |
3. Banro | BAA -6.52% $1.72 |
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:
Anaconda Mining Begins Toll Milling of Pine Cove Ore at Nugget Pond Facility - More
- July 02, 2009 | Item | E-mail
Galway awards incentive stock options - More
- July 02, 2009 | Item | E-mail
Cogitore Resources Signs New Agreement With Inmet Mining. - More
- July 02, 2009 | Item | E-mail
Paramount Gold and Silver Corp Amends Morelos Option Agreement - More
- July 02, 2009 | Item | E-mail
Rossing South Zone 1 resource upgrade - More
- July 02, 2009 | Item | E-mail
Gabriel/RMGC's Statement Regarding the Decision of the Bucharest Court of Appeal in EIA Case - More
- July 02, 2009 | Item | E-mail
High Desert Gold Announces Positive Gold Results From a Soil Geochemical Survey at Artillery Peak, Arizona - More
- July 02, 2009 | Item | E-mail
Orex Exploration Inc.: Progress Report on Mineral Resource Estimates - More
- July 02, 2009 | Item | E-mail
Duran Announces Peru Acquisitions and Transition to New CEO - More
- July 02, 2009 | Item | E-mail
No change statement and Notice of Annual General Meeting - More
- July 02, 2009 | Item | E-mail
New Guinea Gold Announces Gold Production Increase of 40% in Second Quarter to 2246 ozs - More
- July 02, 2009 | Item | E-mail
Maya Gold & Silver Inc. Closes the Final Tranche of a Private Placement for a Total of $1,680,736 - More
- July 02, 2009 | Item | E-mail
Dumont completes interim financing for Alberta polymetallic black shale projects - More
- July 02, 2009 | Item | E-mail
Amarillo Announces New Director - More
- July 02, 2009 | Item | E-mail
Paladin Energy Ltd: Langer Heinrich Uranium Project, Namibia - More
- July 02, 2009 | Item | E-mail
Lebowa Acquisition Becomes Effective - More
- July 02, 2009 | Item | E-mail
Enexco Begins Drilling at Nevada Exploration's Hot Pot Property - More
- July 02, 2009 | Item | E-mail
Cartier Confirms Gold Potential with 19.55 g/t Au on Rambull Property - More
- July 02, 2009 | Item | E-mail
Gold World Resources' Shareholders Support Company Growth Strategy - More
- July 02, 2009 | Item | E-mail
Alturas Appoints Chief Financial Officer - More
- July 02, 2009 | Item | E-mail
Asian Mineral Resources Completes Private Placement - More
- July 02, 2009 | Item | E-mail
Ventura Commences 7,000m Drill Program at Inmaculada Project and Completes First Two Holes on the Angela Vein - More
- July 02, 2009 | Item | E-mail
PHI Mining Group Signs Agreement to Mine Manganese in Thailand - More
- July 02, 2009 | Item | E-mail
Farallon Ships Zinc Concentrates to Canadian Smelter - More
- July 02, 2009 | Item | E-mail
USCorp Adds 21 Claims to Twin Peaks Gold and Silver Project in Arizona - More
- July 02, 2009 | Item | E-mail
Wallbridge Mining Starts Second Drill in 8,900 metre Sudbury Program - More
- July 02, 2009 | Item | E-mail
Energy Fuels Announces Closing of Merger with Magnum Uranium Corp. - More
- July 02, 2009 | Item | E-mail
Jaguar Mining to Transfer Stock Listing to NYSE - "Jaguar Mining Inc. ("Jaguar" or the "Company") (JAG: TSX/NYSE Arca, JAG.NT: TSX) announced it will transfer the trading of its common shares from the NYSE Arca exchange to the New York Stock Exchange (the "NYSE")". The Company has received approval from the NYSE and anticipates it will begin trading on the NYSE on July 6, 2009 under the current symbol "JAG". In light of this approval, the Company will seek to delist its common shares from the NYSE Arca Exchange. The Company will continue to be listed on the Toronto Stock Exchange." More
- July 02, 2009 | Item | E-mail
Coeur Strengthens Balance Sheet Through Successful Debt Reduction Program - "Coeur d’Alene Mines Corporation (NYSE:CDE - News) (TSX:CDM - News) (ASX:CXC - News) provided an update today on its debt reduction program. During the first half of 2009, the Company reduced its convertible debt by over $150 million, or approximately 37%." More
- July 02, 2009 | Item | E-mail
- Chris Mullen, Gold Seeker Report
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-- Posted 2 July, 2009 | | Discuss This Article - Comments:
