-- Posted 31 July, 2009 | | Source: SilverSeek.com
Please Note: Canadian markets are closed on Monday in observance of a Civic Holiday.
| Close | Gain/Loss | On Week |
Gold | $953.80 | +$18.70 | +0.06% |
Silver | $13.95 | +$0.46 | +0.43% |
XAU | 148.62 | +3.95% | -0.59% |
HUI | 360.40 | +4.62% | -0.19% |
GDM | 1095.60 | +4.23% | -0.32% |
JSE Gold | 2304.29 | +20.74 | -2.18% |
USD | 78.32 | -1.00 | -0.55% |
Euro | 142.52 | +1.76 | +0.28% |
Yen | 105.65 | +0.97 | +0.12% |
Oil | $69.45 | +$2.51 | +2.06% |
10-Year | 3.501% | -0.140 | -4.60% |
Bond | 119.00 | +1.953125 | +2.50% |
Dow | 9171.61 | +0.19% | +0.86% |
Nasdaq | 1978.50 | -0.29% | +0.64% |
S&P | 987.47 | +0.07% | +0.84% |
The Metals:
Gold and silver traded mostly slight higher in Asia and London before they fell to see slight losses at as low as $932.67 and $13.39 shortly after 8:30AM EST when the GDP data was released, but both metals quickly rebounded midmorning and then exploded even higher in late morning trade to as high as $955.45 and $13.958 by about noon. The metals then pared their gains a bit in afternoon trade, but gold still ended with a gain of 2.00% while silver closed out 3.41% higher on the day.
Euro gold rose to about €669, platinum gained $24.50 to $1203, and copper gained another couple of cents to about $2.58.
Gold and silver equities rose throughout most of trade and ended with about 4% gains.
The Economy:
Report | For | Reading | Expected | Previous |
GDP | Q2 | -1.0% | -1.5% | -6.4% |
Core PCE | Q2 | 2.0% | 2.3% | 1.1% |
Chain Deflator | Q2 | 0.2% | 1.0% | 1.9% |
Employment Cost Index | Q2 | 0.4% | 0.3% | 0.3% |
Chicago PMI | July | 43.4 | 43.0 | 39.9 |
All of this week’s other economic reports:
Next week’s economic highlights include Construction Spending and the ISM Index on Monday, Personal Income and Spending and Pending Home Sales on Tuesday, ADP Employment, Factory Orders, and ISM Services on Wednesday, Initial Jobless Claims on Thursday, and July’s jobs data and Consumer Credit on Friday.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil rose on hopes over rising demand after GDP did not fall as much as expected.
The U.S. dollar index absolutely plummeted and fell to the lowest level of the year on recovery hopes that encouraged sidelined traders to put cash to work.
Treasuries rose in continued relief over the government’s ability to have sold a record high amount of $115 billion of debt this past week.
The Dow, Nasdaq, and S&P waffled on either side of unchanged and ended mixed as traders debated mixed earnings reports and balanced the better than expected current GDP reading with past revisions.
Among the big names making news in the market Friday were Washington Post, AutoNation, Chevron, MetLife, and Genworth.
The Commentary:
“China bashers insist that China is financially imprisoned and therefore compromised because they hold $800 billion in US dollars out of reserves of $2 trillion.
The US just flushed $12 trillion into the collapsed OTC derivative positions of financial institutions which most certainly involve large losses and non recoveries.
Do you really believe that China cannot afford to write off $400 billion if they decided to prevent future losses and take over the world economic leadership after the event horizon of that action?”- Jim Sinclair, JSMineset.com
“Dear CIGAs,
The Dollar had the stuffing slapped out of in today’s session and as it collapsed, gold shot up and through several resistance levels rocketing all the way back to $960 where once again bullion bank selling entered the short covering frenzy to stem its upward progess. This level is gaining more and more technical significance as it is evident that they are attempting to hold the line here on gold. Should the yellow metal be able to maintain its footing above this region for two consecutive trading sessions, the momentum fund algorithms are going to kick back in and drive it higher; perhaps as high as $978-$980. The key will be whether or not the US Dollar can hold above CRITICAL DOWNSIDE support near 78.40 on the USDX. Failure there and 76 is a shoe in for the greenback and no amount of bullion bank price capping efforts will be able to keep Ol’ Yeller from heading up to $980. If 76 on the USDX fails, gold will at $1,000 before you can say, “oligopoly”.
AS you can see on the hourly chart, there is a spike high that was made early this week near 963. Bettering that on a closing basis will be the first feat that the yellow metal must accomplish to make a push towards $978 – $980. I must say that today’s sharp climb higher is very impressive from a technical perspective as it pushed gold back above all of the major moving averages on the WEEKLY chart. It is evident from the ferocity of today’s climb that a good many guys got caught flat footed on the short side and were violently squeezed out.
On the monthly chart, the previous month high near $992 is all that stands between gold and 4 digits but first it has to muster a monthly close above $980, which was the highest monthly close ever on the continuous chart.
Because today’s price action occurred at the end of the month, I want to see more upside confirmation early next week. You often get so much book squaring and position balancing at month end that markets can make pretty wild price movements but even at that, I am impressed at the strength that developed today in gold. Coming in so unexpected a manner, it makes today’s move all the more impressive.
The mining shares seem to be confirming the move higher in bullion at this point in the trading session. Once again the HUI is doing battle with the most stubborn 360 level that has been holding it in check on a closing basis. A close above 360 for the week will put 400 on the map as a realistic objective but the day is yet young so we will have to see what happens, especially in the last hour of trading where we often see shenanigans occur.
Bonds are back to working within that large range trade they have carved out over the past few weeks with 121 on the top side and 112 on the downside. This time around it appears that 114^15 or so seems to be the current floor. That level will take on more technical significance next week while 121 still stands as a formidable topside barrier.
It is odd today watching the bond market machinations seeing that gold is solidly higher as is copper, which continues to soar to the heavens as well as stronger crude oil and grains. One would think that the higher CCI (Continuous Commodity Index) coupled with the weaker dollar would see bonds moving lower in anticipation of increasing economic activity as least as far as commodity prices go, but the exact opposite is occurring. Once again I am at a loss to understand exactly which side of this deflation/inflation battle has gained the upper hand today because of this mixed signal but with equities moving higher, a weaker dollar, and higher commodity prices, it is difficult for me to give any credence to the deflationary move in the bonds. Then again, it might be a simple case of month-end short covering given a bit of an extra kick by the lousy GDP data. We’ll wait until next week for this muddy water to clear up a bit further.
One last thing – as I write this the Dollar is hanging on to 78.40 by the skin of its teeth so things might get interesting before the day is over. I think the feds are monitoring this level quite closely as they can read the chart significance of that support level.”- Dan Norcini, More at JSMineset.com
“August Gold closed up 18.8 at 953.7. This was 21.7 up from the low and 4.4 off the high.
September Silver finished up 0.455 at 13.94, 0.03 off the high and 0.57 up from the low.
The gold market started out with a mostly positive bias, corrected in the wake of the scheduled data but then regained its bullish footing later in the trading session. It probably goes without saying that the gold market was lifted by noted weakness in the Dollar, but it also seemed as if a number of physical commodity markets were embracing the prospect of a recovery during the trade Friday. In short, the gold trade was seemingly anticipating an improvement in physical and investment demand for gold.
The silver market saw an approximate range of 60 cents on Friday as the trade was roiled in both directions by the ebb and flow of the Dollar and by the ebb and flow of macro economic data. Like gold, the silver market saw buying interest off renewed recovery hopes and also because of significant pressure in the US Dollar. With a host of physical commodity markets at times on Friday showing noted strength, it seemed as if silver was catching part of a broad based buying lift.”- The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Poll finds 75% favor auditing Fed
Government's rescue money underwrote monstrous bonuses for bankers
A compliment for GATA from Peter Grandich
Franklin Sanders: The war against specie money and how we can win it at face value
The Statistics:
Activity from: 7/30/2009
Gold Warehouse Stocks: | 9,140,646 | -1,067 |
Silver Warehouse Stocks: | 117,710,262 | -599,470 |
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 | 1,072.87 | 34,493,747 | US$ 32,153m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 131.31 | 4,221,837 | US$ 4,028m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 13.73 | 440,206 | US$ 421m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 40.54 | 1,303,340 | US$ 1,215m |
NASDAQ Dubai | Dubai Gold Securities | 0.16 | 5,000 | US$ 5m |
Note: Change in Total Tonnes from yesterday’s data: The LSE subtracted 0.39 tonnes.
COMEX Gold Trust (IAU)
Profile as of 7/30/2009 | |
Total Net Assets | $2,171,699,388 | Ounces of Gold in Trust | 2,323,676.559 |
Shares Outstanding | 23,650,000 | Tonnes of Gold in Trust | 72.27 |
Note: No change in Total Tonnes from yesterday’s data.
Silver Trust (SLV)
Profile as of 7/30/2009 | |
Total Net Assets | $3,775,429,188 | Ounces of Silver in Trust | 281,863,452.300 |
Shares Outstanding | 286,350,000 | Tonnes of Silver in Trust | 8,766.93 |
Note: No change in Total Tonnes from yesterday’s data.
The Miners:
Minco Gold’s (MGH) NYSE notice advisement, Gold Fields’ (GFI) accreditation, AngloGold’s (AU) second quarter earnings and reduced hedge book, Silver Wheaton’s (SLW) plans for the future, and Silver Standard’s (SSRI) second quarter results and concentrate shipment were among the big stories in the gold and silver mining industry making headlines Friday.
WINNERS
1. DRDGOLD | DROOY+8.71% $7.61 |
2. Golden Star | GSS +8.41% $2.45 |
3. Exeter | XRA +8.13% $3.06 |
No “Losers” Today
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:
Uragold Bay Closes Equity Private Placement - More
- July 31, 2009 | Item | E-mail
Linear Metals Announces Completion of Private Placement - More
- July 31, 2009 | Item | E-mail
Sacre-Coeur Intersects Gold Bearing Vein System at Million Mountain New Zone 9 - 13.6 Meters @ 4.0 g/t Au: Zone 2 Drilling Suggests Deeper System - More
- July 31, 2009 | Item | E-mail
Zoloto announces update on 2008 year-end financials - More
- July 31, 2009 | Item | E-mail
Silver Wheaton eyeing dividend, acquisition-CEO - "Silver Wheaton (SLW.TO) is mulling the idea of paying a shareholder dividend, but its near-term focus is more on making a significant acquisition, the company's chief executive said on Friday.
The Canadian silver streaming company closed its $152 million acquisition of Silverstone Resources during the second quarter, and sees opportunities for another deal that could transform the company further, CEO Peter Barnes said on a conference call to discuss the company's quarterly results." More
- July 31, 2009 | Item | E-mail
Evolving Gold Drilling Update Rattlesnake Hills and Carlin - More
- July 31, 2009 | Item | E-mail
Denison Mines Corp. Second Quarter 2009 Results Conference Call Thursday, August 13, 2009 - More
- July 31, 2009 | Item | E-mail
Minco Gold Advises of NYSE Notice - "Minco Gold Corporation (the "Company" or "Minco Gold") (TSX:MMM - News)(AMEX:MGH - News)(Frankfurt:MI5 - News) advises that Minco Gold has filed its annual report on Form 20-F, including its audited financial statements for the fiscal year ended December 31, 2008 with the United States Security and Exchange Commission (the "SEC") on July 30, 2009. The annual report on Form 20-F can be accessed on the SEC's website at http://www.sec.gov/." More
- July 31, 2009 | Item | E-mail
Alert to Kinbauri Shareholders: ATW-Kinbauri Transaction Terminated; Kinbauri Shareholders Urged to Tender to Orvana's All-Cash Offer - More
- July 31, 2009 | Item | E-mail
Viking Gold commences summer exploration program - More
- July 31, 2009 | Item | E-mail
Gold Fields Mines Obtain Accreditation - "Gold Fields Limited (Gold Fields) (JSE, NYSE, NASDAQ Dubai: GFI) is pleased to announce that Beatrix Gold Mine has achieved accreditation with the International Cyanide Management Code (ICMC). Beatrix is the fourth of Gold Fields' nine mines to achieve Cyanide Code accreditation. The Tarkwa and Damang Gold Mines in Ghana achieved accreditation in June and May 2008, respectively and the South Deep Gold Mine in South Africa achieved accreditation in December 2008." More
- July 31, 2009 | Item | E-mail
Centamin Egypt Reports on Activities in the Quarter Ended June 30, 2009 - More
- July 31, 2009 | Item | E-mail
Far City Mining Limited Begins Trading on the CNSX - More
- July 31, 2009 | Item | E-mail
Advanced Explorations Inc. Closes Private Placement First Tranche of $448,000 - More
- July 31, 2009 | Item | E-mail
Lake Victoria Mining Company Receives First Assay Results from Kilimanjaro's Singida "Gold Rush" District, Tanzania - More
- July 31, 2009 | Item | E-mail
ATW Terminates Letter Agreement With Kinbauri Gold Corp. - More
- July 31, 2009 | Item | E-mail
William J. Hogan Appointed to the Board of Can-Cal Resources - More
- July 31, 2009 | Item | E-mail
Armistice Resources Corp. announces private placement financing - More
- July 31, 2009 | Item | E-mail
Tiger Resources Issues June 2009 Quarterly Report - More
- July 31, 2009 | Item | E-mail
DPM Announces Subscription for Shares of Weatherly International - More
- July 31, 2009 | Item | E-mail
Bannerman Releases Quarterly Activities Report for the Period Ended 30 June 2009 - More
- July 31, 2009 | Item | E-mail
Silver Standard Resources Inc.: Pirquitas Makes First Silver Concentrate Shipment, Second Quarter 2009 Results and Conference Call - "Silver Standard Resources Inc. (TSX:SSO - News)(NASDAQ:SSRI - News) is pleased to report that the wholly-owned Pirquitas Mine has made its first shipment of silver concentrate. A further update on progress at the mine, located in the province of Jujuy in Argentina, is planned in conjunction with the release of the company's Second Quarter 2009 financial results on Thursday, August 6, 2009." More
- July 31, 2009 | Item | E-mail
AngloGold Ashanti (NYSE: AU) Announces Record 2nd-Quarter Earnings on Higher Production, Gold Price - "Adjusted headline earnings increased to $167m, or US47 cents a share in the three months to 30 June, compared with $150m, or US42 cents, in the previous quarter." More
- July 31, 2009 | Item | E-mail
AngloGold Ashanti (NYSE: AU) Announces Reduced Hedge Book by 1.4Moz, to Less Than One Year's Output - "AngloGold Ashanti Limited (NYSE:AU - News) undertook an extensive restructuring of its hedge book in July, reducing its overall commitments by about 1.4Moz, in order to realize its strategy of maximizing exposure to spot gold prices." More
- July 31, 2009 | Item | E-mail
- Chris Mullen, Gold Seeker Report
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-- Posted 31 July, 2009 | |