The Premier Silver Resource Website
Visit GoldSeek.com
Visit GoldReview.com
Visit UraniumSeek.com

- CLICK HERE TO VISIT THE NEW SILVERSEEK.COM -
Live Spot Silver
Navigation
Silver Market Articles
Silver Discussions at the Forum
Silver Company Links
Silver Market Updates
Silver & Gold Headlines
Silver Stock News
Silver Equity Quotes
Silver & Precious Metals Quotes







 
Gold Seeker Closing Report: Silver Gains Almost 3% While Gold Rises Over 1%

By: Chris Mullen, Gold-Seeker.com


-- Posted 4 August, 2009 | | Source: SilverSeek.com

 

Close

Gain/Loss

Gold

$966.85

+$9.90

Silver

$14.66

+$0.39

XAU

153.71

+0.13%

HUI

374.42

+1.27%

GDM

1132.77

+1.03%

JSE Gold

2440.74

UNCH

USD

77.74

+0.15

Euro

143.99

-0.19

Yen

105.01

+0.06

Oil

$71.42

-$0.16

10-Year

3.679%

+0.040

T-Bond

117.046875

-0.546875

Dow

9320.19

+0.36%

Nasdaq

2011.31

+0.13%

S&P

1005.65

+0.30%

 
 

 

The Metals:

 

Gold fell slightly in Asia and London to see a $6.05 loss at as low as $950.90 by about 8AM EST, but it then soared higher for most of the rest of trade in New York and ended near its high of $969.95 with a gain of 1.03%.  Silver fell almost 2% to $14.02 by late trade in Asia and held lower in early London trade before it also climbed back higher throughout trade in New York and closed near its high of $14.76 with a gain of 2.73%.

 

Euro gold rose to about €671, platinum gained $32.50 to $1264, and copper gained nearly 6 cents more to about $2.79.

 

Gold and silver equities started off the day roughly 1% lower before they rose to see about 2% gains by early afternoon, but they then fell back off into the close and ended with only about 1% gains.

 

The Economy:

 

Report

For

Reading

Expected

Previous

Personal Income

June

-1.3%

-1.0%

1.3%

Personal Spending

June

0.4%

0.3%

0.1%

Pending Home Sales

June

3.6%

0.7%

0.8%

 

Tomorrow at 8:15AM EST brings ADP Employment for July expected at -340,000 and at 10AM is the Factory Orders report for June expected at 0.5% and ISM Services expected at 48.0.

 

The Markets:

 

Charts Courtesy of http://finance.yahoo.com/

 

Oil ended slightly lower after a mixed day as traders await tomorrow’s inventory data.

 

Treasuries fell after the better than expected Pending Home Sales report pushed interest rates higher.

 

The U.S. dollar index ended modestly higher along with the Dow, Nasdaq, and S&P on hopes that better than expected housing data will encourage world investors to put their cash to work in US related assets.

 

Among the big names making news in the market today were GMAC, Toyota, D.R. Horton, Goldman Sachs, CVS Caremark, Pepsi, Bank of America, Archer Daniels, AIG, and Berkshire.

 

The Commentary:

 

Dear CIGAs,

 

Of course the world is not going to replace the dollar as a reserve currency immediately, or for that matter ever. What is going to happen is the IMF or an Asian entity will formulate a basket of currencies and possibly gold into a unit much like the USDX.

 

There will be an issuing agent and much like the SDR it will be an accounting unit representing the underlying bits and pieces.

 

It is from this base that Japan has proclaimed major nations should support the dollar. This is management of perspective economics and spin.

 

What is presently occurring and will accelerate over the coming weeks and months is DIVERSIFICATION out of dependence entirely on the US dollar and the adopting of other currency types even if it takes time to produce the super sovereign currency basket.

 

The risk the MOPErs take is that the longer the IMF waits due to the risk of dollar damage by issue of this SSCI (Super Sovereign Currency Basket Index), the greater the probability that another entity in the Asian trading block will design this simple entity themselves. An Asian entity would be based on the usual suspects plus their own currency like the Yuan and probably gold.

 

MOPErs are now caught between facing the fact that central banks outside of North American and Euroland are sharply decelerating their purchase of US Treasury instruments or are playing games for their hot air dollar support that results in the marketplace revealing the SSCI plan by sharp dollar depreciation into the final quarter of 2009.

 

If the dollar market makes the decision for the IMF then anticipate the last quarter of 2009 to the last quarter of 2010 as the year of dollar hell. The dollar market making the decision for the IMF means the bottom drops out of the dollar rather than the exercising of MOPE’s "Strong Dollar Policy" which is defined as the dollar dropping slowly, rather than catastrophically.

 

MOPErs have not distinguished themselves by preventing the problem before it has occurred or fixing the real problem. The economic school of MOPErs simply issues more paper to attempt to fix the problem via more MOPE.

 

You see, the MOPErs are primarily Yalees from one fraternity that control Wall Street which has captured Washington, installing their school of economics of which Greenspan is a major practitioner. When you MOPE you produce nothing but paper bubbles, not sustainable economic gains. You must recall his speeches on market perceptions creating economic occurrences.

 

You see, one day the MOPErs paper planet melts down. Of course they save themselves by issuing more paper – this time dollars to themselves and they truly don’t give a rat’s ass what happens after that.

 

So the lesson you need to learn is that all things economic are processes. The dollar is losing its position first as the universal reserve currency, now as the major constituent of international central bank reserves and finally as just another part, not necessarily the majority part, of a new SSCI (Super Sovereign Currency Index) used then as the universal reserve currency.

 

This make the school of the "dollar will always be a reserve currency" right and wrong. It is right in that it will always be a PART of the reserve basket but WRONG in the implication that this lasting presence means anything bullish whatsoever for the dollar.

 

Those that hold, like I do, that the value of the US dollar has a long way to go on the downside are right on price, but if they then conclude it is no longer any part of the reserve system they are stone wrong!

 

Quiz:

 

1. Does the statement that major government will support the dollar as a reserve currency mean it should rise in price?

2. Will the US dollar always be part of the reserves of central banks?

3. If the US dollar is always part of the reserve of central banks should that be bullish for the US dollar?

4. Why is buying momentum so important to the value of the US dollar now?

5. Why would increased interest rates on 30 year US Treasuries be bearish for the US dollar?

 

If you can answer these five questions with certainty then you understand what a SSCI is and why MOPE will be useless in 125 days.

 

Answers:

 

1. No

2. Yes

3. No

4. A decline in the momentum of buying, even without central bank selling, would hold the most bearish implications for the US dollar.

5. Because that would occur as non-USA buyers of long US paper exited the market as buyers.”- Jim Sinclair, JSMineset.com

 

Dear CIGAs,

 

In a manner somewhat reminiscent of last Friday’s stunning upmove, gold shrugged off early selling pressure tied to some stability in the US Dollar and weakness in crude oil, reversing course around midmorning and tacking $13 onto its trading session low. The buying pushed price all the way to yesterday’s peak and then some.

 

I am a bit hesitant to go too far out on a limb these days when it comes to market predictions but gold seems to be trading in a fashion that is suggestive of the presence of a large scale buyer who is willing to take on the concerted selling efforts of the bullion banks. The reason I mention this is on account of the dip buying that is taking place which is coming even without much support from the Dollar at times. Whether or not this will continue is anyone’s guess, but the price action is evidence enough for me that, for now, this buying is quite substantial.

 

Technically, the close above yesterday’s peak in gold brings a very good chance of bringing in further recruits to the bull cause which could easily take price on up to significant technical resistance centered in and around the $980 level. That will be a tough nut to crack for it is the last barrier of note before $1,000 comes into play. Support lies first at today’s low near $953 and then again at $947- $945. Today’s close above $965 is quite friendly.

 

What is encouraging for the bullish cause for gold is the price action in the miners. Even with the broader equity markets lower today, they are trading higher as I write this choosing rather to move in tandem with bullion rather the rest of the paper world. There is some minor resistance in place near the 380 level on the HUI with the index looking like it wants to challenge that. Besting that level puts 400 into play.

 

I should also note that the bonds are moving lower today in the face of lower equities. The pending home sales data was friendly and that took the wind out of the bond bulls after they were strongly higher earlier this morning. That data spurred on risk takers once again and that probably more than anything is what brought back buying into the crude oil pit which is attempting to sneak up on $72/barrel. I want to reiterate something I have said many times before – crude oil is trading more as a currency than a commodity. It has become an inflation hedge which is the main reason that a strict adherence to the demand/supply factors of that market can at times seem to be an exercise in futility for traders. It is really in another world and I see nothing that will change that anytime soon. When risk is in, crude is going to move higher and when risk is out, crude is going to move lower. It is pretty much that simple – for now!

 

Copper simply refuses to stay down and silver too is apparently joining the metals’ party. A sleeper metal has been palladium, which quietly made an 11 month high today. It looks to be tracking the increase in auto sales. Maybe that has something to do with the government’s “cash for clunkers” program.

 

I am waiting for the “cash for ice box clunkers” (I need a new refrigerator), the cash for noisy washing machines (I need a new washer) and the cash for “dirty, environmentally unfriendly clothes dryers” program. I actually installed one of those highly energy efficient SOLAR CLOTHES DRYERS (around here we call it a clothes line) and am waiting for my check from the feds on that. Personally I think we should have a “cash for big screen TV’s” program since the older ones are so energy inefficient. Don’t forget the “cash for new fluorescent light bulbs” program. With all these nifty handouts, no wonder the commodity world is so happy these days.

 

Poor ol pork bellies are one of the few commodities not joining the happy parade – they are limit down today. Looks like folks need to go out and eat more bacon and do their civic duty.

 

The CCI (Continuous Commodity Index) is looking more and more like it is presaging a trending move higher in the entire commodity complex. It completed a nearly textbook 50% retracement move from its December 2008- June 2009 move higher and is now demonstrating a move up and away from that level. The key to any trending move in the complex will be whether or not it can take out its June peak. If it can, the deflationists have lost the battle and the inflationists have been vindicated. Stay tuned on this one.- Dan Norcini, More at JSMineset.com

 

“August Gold closed up 10.9 at 967.5. This was 12 up from the low and 2 off the high.

 

September Silver finished up 0.443 at 14.695, 0.07 off the high and 0.47 up from the low.

 

After a choppy two sided trade the gold market fleshed out a definitively bullish move on the charts, with the October contract at the highs Tuesday afternoon reaching the highest level since June 5th. Clearly the gold bulls were inspired by the better than expected US Pending home sales report and the fact that the recent rise was the fifth straight monthly rise. While the stock market didn't seem to fully buy into the recovery view again in the wake of the favorable pending home sales figures, gold, silver, copper and the platinum market all seemed to be reacting to the improved economic outlook. While the gold market was higher, a minor recovery bounce in the Dollar in the wake of the Pending home sales readings seemed to limit the gold market at times during the Tuesday trade.

 

The silver market managed another big range up extension on the charts Tuesday, with the September silver contract reaching the highest level since June 15th. Like the gold market, the silver market seemed to correlate with the ebb and flow of the US equity market. Silver traders probably saw the better than expected US pending home sales report as the main bullish catalyst of the trade Tuesday, but with a host of commodity markets on the rise, it appeared as if another revival of the recovery view was serving to influence a number of physical commodity markets.”- The Hightower Report, Futures Analysis and Forecasting

 

GATA Posts:

 

 

Rob Kirby: Suppressing interest rates, Morgan Chase is the Fed

SEC to ban advance looks at stock trading orders

End the Fed? A not-so-crazy idea

China moves to internationalize its currency

Ed Steer's daily commentary is at Casey site

 

The Statistics:

Activity from: 7/31/2009

Gold Warehouse Stocks:

9,142,800

+2,154

Silver Warehouse Stocks:

117,711,202

+940

 

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

1,072.87

34,493,747

US$ 33,092m

London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse )

Gold Bullion Securities

130.49

4,195,421

US$ 4,044m

Australian Stock Exchange (ASX)

Gold Bullion Securities

13.73

440,187

US$ 426m

Johannesburg Securities Exchange (JSE)

New Gold Debentures

42.86

1,377,850

US$ 1,322m

NASDAQ Dubai

Dubai Gold Securities

0.16

5,000

US$ 5m

Note: Change in Total Tonnes from yesterday’s data: The LSE subtracted 0.53 tonnes.

 

COMEX Gold Trust (IAU)

Profile as of 8/3/2009

 

Total Net Assets

$2,222,026,537

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 8/3/2009

 

Total Net Assets

$4,054,197,758

Ounces of Silver
in Trust

283,831,312.300

Shares Outstanding

288,350,000

Tonnes of Silver
in Trust

8,828.14

Note: No change in Total Tonnes from yesterday’s data.

 

The Miners:

 

International Royalty’s (ROY) strike impact, ITH’s (THM) agreement to purchase Redstar’s (RGC.V) interest in the North Bullfrog project in Nevada, Gold Fields’ (GFI) finalized executive team, and UC Resources (UC.V) commenced drilling were among the big stories in the gold and silver mining industry making headlines today.

 

WINNERS

1.  NovaGold

NG +4.65% $4.28

2.  Eldorado

EGO+4.60% $10.47

3.  Taseko

TGB +4.55% $2.30

 

LOSERS

1.  Banro

BAA -5.36% $2.12

2.  Mines MGMT

MGN -4.30% $1.78

3.  Ivanhoe

IVN -4.21% $8.19

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:

Urex Completes Sale of Argentine Subsidiary - More
- August 04, 2009 | Item | E-mail


KWG announces non-brokered private placement - More
- August 04, 2009 | Item | E-mail


Mega Silver Inc. Announces Proposal to Change Name to Mega Precious Metals Inc. - More
- August 04, 2009 | Item | E-mail


Synatom Agrees to Make Additional Strategic Investment in Powertech - More
- August 04, 2009 | Item | E-mail


Puma Exploration Inc.: 1.72% Copper Over a 56.5-Metre Thickness at Turgeon, New Brunswick - More
- August 04, 2009 | Item | E-mail


Cavan Ventures Inc. Enters Into Investor Relations Agreement with MarketSmart Communications Inc. - More
- August 04, 2009 | Item | E-mail


Conquest Resources Limited - Press Release - More
- August 04, 2009 | Item | E-mail


Apella Commences Further Field Work on Its Lac Dore North Iron-Vanadium-Titanium Project - More
- August 04, 2009 | Item | E-mail


Oroco Resource Corp. Announces Closing of Private Placement - More
- August 04, 2009 | Item | E-mail


International Royalty anticipates minimal Q3 impact from Voisey's Bay strike - "International Royalty Corporation (NYSE-A: ROY, TSX: IRC) ("IRC" or the "Company") reports that employees at nickel miner Vale Inco Ltd.'s ("Vale") Voisey's Bay operations have rejected a contract offer and have been on strike since August 1, 2009. IRC owns an effective 2.7% net smelter return royalty on the Voisey's Bay project." More
- August 04, 2009 | Item | E-mail


Lakota Resources Announces Proposal Filing Pursuant to the Bankruptcy and Insolvency Act and Appointment of a Trustee - More
- August 04, 2009 | Item | E-mail


Conquest Resources Limited - Press Release - More
- August 04, 2009 | Item | E-mail


MBMI Completes $1,000,000 Loan Agreement - More
- August 04, 2009 | Item | E-mail


Blue Note Mining Obtains Court Approval For Plan of Arrangement; Restructuring Successful - More
- August 04, 2009 | Item | E-mail


Equinox Q2-2009 Conference Call Details - More
- August 04, 2009 | Item | E-mail


Extract Resources Limited - Preliminary cost estimates study confirms Rossing South's potential to be one of world's largest uranium mines - More
- August 04, 2009 | Item | E-mail


Landore Resources Limited - Drilling Update - Junior Lake Property - Lamaune Iron Deposit - B4-7 Nickel Project - More
- August 04, 2009 | Item | E-mail


Forsys Metals Corp.: GFI Confirms Financing for Plan of Arrangement - More
- August 04, 2009 | Item | E-mail


Victory Nickel Gains Strong New Strategic Investor - More
- August 04, 2009 | Item | E-mail


Nuinsco Deals With Loan and Gains Strong Strategic Investor for Victory Nickel - More
- August 04, 2009 | Item | E-mail


Benton completes option on Sibley project to Kennecott - More
- August 04, 2009 | Item | E-mail


Titan Uranium Inc. and Uranium Power Corp. Announce Completion of the Business Combination - More
- August 04, 2009 | Item | E-mail


Uruguay Mineral Exploration Inc. Announces Further Results for Arenal Deeps Drilling Including 26.2 m at 13.76 g/t Au - More
- August 04, 2009 | Item | E-mail


Tiger increases its interest in the Kipoi Project and receives notification of potential contract dispute - More
- August 04, 2009 | Item | E-mail


Unico, Inc. Announces Initial Agreement With Royal Mines And Minerals Corp. for Processing of Gold and Silver From the Deer Trail Mine - More
- August 04, 2009 | Item | E-mail


Uruguay Mineral Exploration Inc. Announces Positive Prefeasibility Study Results for Arenal Deeps underground mining - More
- August 04, 2009 | Item | E-mail


Velocity Minerals Releases 2009 NI 43-101 Compliant Mineral Resource Calculation (Revised Table) - More
- August 04, 2009 | Item | E-mail


INV Options Brazilian (Cu-Au) and Namibian (Cu) Exploration Properties - More
- August 04, 2009 | Item | E-mail


Ucore Divides Alaska Projects to Focus on Rare Earths - More
- August 04, 2009 | Item | E-mail


Fortress Acquires Two-Year Extension to Exploration License at Svetloye Project Russia - More
- August 04, 2009 | Item | E-mail


Carlisle Goldfields Shareholders Elect New Directors - More
- August 04, 2009 | Item | E-mail


AZHA Mining Mobilizing the 2nd Gold Rush, Large Scale Mining Permit Near Completion, AZHA to Issue Dividends; AZHA CUSIP No. Y0529N 104 - More
- August 04, 2009 | Item | E-mail


Orex Exploration Inc.: Significant Increase in Gold Mineral Resources at the Goldboro Project, Nova Scotia - More
- August 04, 2009 | Item | E-mail


Goldrich Progressing Toward Gold Production at Chandalar, Alaska - More
- August 04, 2009 | Item | E-mail


Nicholas Tintor joins Dumont as New Director - More
- August 04, 2009 | Item | E-mail


Jien International Investment Ltd. Acquires Securities of Victory Nickel Inc. - More
- August 04, 2009 | Item | E-mail


DIA BRAS/REMINDER: Teleconference Re Proposed Transaction With EXMIN Resources - More
- August 04, 2009 | Item | E-mail


North Arrow Announces Drilling Is Underway at Phoenix Lithium Project, NWT - More
- August 04, 2009 | Item | E-mail


Western Uranium Corporation Announces Additional Higher Grade Drill Results From Kings Valley Project, Nevada - More
- August 04, 2009 | Item | E-mail


Melkior Options Henderson Copper Nickel Rights to First Nickel - More
- August 04, 2009 | Item | E-mail


Redstar Sells Bullfrog Property to International Tower Hill - More
- August 04, 2009 | Item | E-mail


General Moly Announces Second Quarter Results - More
- August 04, 2009 | Item | E-mail


Wesdome - Record revenue of $53.8 million in H1 2009 - Increasing production guidance - More
- August 04, 2009 | Item | E-mail


International Tower Hill Mines Signs Agreement to Acquire 100% Interest in North Bullfrog Project, Nevada - "International Tower Hill Mines Ltd. ("ITH" or the "Company") (TSX-V:ITH - News)(AMEX:THM - News)(Frankfurt:IW9 - News) is pleased to announce that it has signed an agreement with Redstar Gold Corporation (TSX-V:RGC - News) to purchase all of Redstar's interest in the North Bullfrog project in Nevada (in which the Company currently has the option to earn up to a 70% interest). As consideration for the acquisition of all of Redstar's interest, the Company will pay to Redstar CAD 250,000 and issue 200,000 common shares to Redstar." More
- August 04, 2009 | Item | E-mail


UC Resources has Commenced Drilling at McFaulds Lake - "Based on historic drilling, two of the anomalies are suspected to be copper/zinc/silver VMS targets situated near the previous McFaulds #6 discovery where the Spider/KWG joint venture has historic 2004 assay results from hole MCF-04-50 of 2.89% copper and 5.28 g/t Silver over 1.65 metres, hole MCF-04-51 of 1.16 g/t Silver and .62 % copper over 1.53 metres, and hole MCF-04-38 which encountered 1.82% copper and 4.3 g/t silver over 3.3 metres plus hole MCF-04-39 which encountered 3.63% copper, .34 g/t gold and 7.1 g/t silver over 1.3 metres." More
- August 04, 2009 | Item | E-mail


Gold Fields Finalises Executive Team - "Gold Fields Limited (Gold Fields) (JSE, NYSE, NASDAQ Dubai: GFI) today announced the appointment of three additional members to its Group executive team, reporting to Chief Executive Officer of Gold Fields, Nick Holland." More
- August 04, 2009 | Item | E-mail

- Chris Mullen, Gold Seeker Report

 

- Would you like to receive the Free Daily Gold Seeker Report in your e-mail? Click here

Additional Resources for today’s Gold Seeker Report can be found:

© Gold Seeker 2009

Note: This article may be reproduced provided the article, in full, is used and mention to Gold-Seeker.com is given.

 

 

Disclosure: The owner, editor, writer and publisher and their associates are not responsible for errors or omissions.  The author of this report is not a registered financial advisor.  Readers should not view this material as offering investment related advice. Gold-Seeker.com has taken precautions to ensure accuracy of information provided. Information collected and presented are from what is perceived as reliable sources, but since the information source(s) are beyond Gold-Seeker.com’s control, no representation or guarantee is made that it is complete or accurate.  The reader accepts information on the condition that errors or omissions shall not be made the basis for any claim, demand or cause for action.  Past results are not necessarily indicative of future results.  Any statements non-factual in nature constitute only current opinions, which are subject to change.  Nothing contained herein constitutes a representation by the publisher, nor a solicitation for the purchase or sale of securities & therefore information, nor opinions expressed, shall be construed as a solicitation to buy or sell any stock, futures or options contract mentioned herein.  Investors are advised to obtain the advice of a qualified financial & investment advisor before entering any financial transaction.


-- Posted 4 August, 2009 | |


Latest Articles


Gold Seeker Closing Report: Gold and Silver Fall Over 2% More
13 December, 2011

Gold Seeker Closing Report: Gold and Silver Fall Almost 3%
12 December, 2011

Gold Seeker Weekly Wrap-Up: Gold and Silver Fall Slightly on the Week
9 December, 2011

Gold Seeker Closing Report - Article Archive List

SilverSeek.com is presented to you by:

© 2003 - 2011
SilverSeek.com, Silver Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of SilverSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on SilverSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Disclaimer

The views contained here may not represent the views of SilverSeek.com, its affiliates or advertisers. SilverSeek.com makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of SilverSeek.com, is strictly prohibited. In no event shall SilverSeek.com or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.