-- Posted 22 February, 2010 | | Source: SilverSeek.com
| Close | Gain/Loss |
Gold | $1113.00 | -$8.85 |
Silver | $16.21 | -$0.17 |
XAU | 162.00 | -1.48% |
HUI | 405.19 | -1.36% |
GDM | 1215.17 | -1.38% |
JSE Gold | 2222.12 | -4.12 |
USD | 80.54 | -0.08 |
Euro | 135.98 | -0.16 |
Yen | 109.72 | +0.46 |
Oil | $80.16 | +$0.35 |
10-Year | 3.799% | +0.017 |
T-Bond | 116.375 | -0.40625 |
Dow | 10383.38 | -0.18% |
Nasdaq | 2242.03 | -0.08% |
S&P | 1108.01 | -0.10% |
The Metals:
Gold rose to a new one month high and saw a gain of $6.14 at $1127.99 in Asia, fell back to trade near unchanged in London, and dropped in late morning New York trade to as low as $1109.80 by about 11AM EST before it rebounded in the last couple of hours of trade, but it still ended with a loss of 0.79%. Silver fell to as low as $16.12 before it also bounced back higher, but it still ended with a loss of 1.04%.
Euro gold fell to about €819, platinum lost $8 to $1523, and copper fell 5 cents to about $3.31.
Gold and silver equities fell over 1% by late morning and remained near their lows for most of the rest of trade.
The Economy:
There were no major economic reports today. Tomorrow at 9AM EST brings the Case-Shiller 20-city Index for December expected at -3.0% and at 10AM is Consumer Confidence for February expected at 55.0. Bernanke speaks before Congress on Wednesday and Thursday.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil climbed above $80 on continued worries over Iran’s nuclear program and France’s refinery strikes.
The U.S. dollar index saw fell a bit as traders continue to watch the euro due to worries over Greece and sovereign debt.
Treasuries fell a bit on worries over this week’s massive debt auctions.
The Dow, Nasdaq, and S&P remained near unchanged on mixed earnings reports.
Among the big names making news in the market today were Campbell, Schlumberger, Lowe’s, Toyota, AIG, and Alvarez & Marsal.
The Commentary:
“There isn't a lot to talk about in yesterday's Commitment of Traders report. Silver open interest only rose a smallish 426 contracts. The Commercial short position in silver is 73,779 contracts. The '4 or less' bullion banks hold 50,100 of those short contracts... and the '8 or less' bullion banks are short 58,600 contracts. So, if you subtract these 58,600 contracts from the total Commercial net short position, you've got about 15,100 contracts left held short. There are 36 traders in the Commercial short category... and if you subtract the '8 or less' traders... you're down to 28 traders. Divide 28 into 15,100... and each of these traders hold [on average] an insignificant 539 contracts.
Then, to top it all off... it's Ted Butler's opinion [and now mine as well] that the vast majority of those remaining 15,100 contracts I spoke of in the previous paragraph are market neutral spread trades... so, basically, these other 28 traders don't matter... and it should be obvious that these '8 or less' traders run the silver show entirely... and JPMorgan is the biggest short of all. The link to the full-colour COT graph for silver is here.
In gold, the bullion banks went short a further 6,451 contracts... which isn't a lot. The net short position [the difference between the Commercial long position and the Commercial short position] is 22.0 million ounces of gold. The '4 or less' and '8 or less' traders are not short gold to anywhere near the extent that they are in silver. As of this report, the '4 or less' bullion banks are short 17.1 million ounces of gold... and the '8 or less' traders are short 21.0 million ounces... which represents 95.5% of the net short position. In silver, the Commercial net short position is 191.1 million ounces. The '8 or less' bullion banks traders are short 153% of that amount... or 292.3 million ounces. The full-colour COT graph for gold is here.”– From Ed Steer’s Gold & Silver Daily, read the full report here.
“Dear Friends,
One of the things to bear in mind about markets is that they have a way of cutting through the BS and spin that so often passes for reality in today’s gullible world. Watching a market react to a batch of bullish news by selling off tells us one of two things:
1.) The market has already priced such news in and traders who bought ahead of the news are now taking profits as the novices rush in and get their heads handed to them.
2.) The market is weaker than meets the eyes and is primed for a harder fall.
Same goes for a market that moves higher on what is generally regarded as bearish news. The news comes out, the market moves lower and then rebounds with a fury. What is that saying?
1.) The market has already discounted the news and now traders who were short are booking profits.
2.) The market is internally much stronger than meets the eye.
In the past two days we have seen gold hit with a one-two combination punch which could not knock it out even though it initially sent it reeling. The first slam was the obvious ploy by the IMF to knock the price of gold down just as the technical indicators were turning positive and momentum funds were becoming interested in moving over to the long side. The second punch was the Fed’s announcement of a ¼% hike in the discount rate which sent the Dollar soaring and the Euro sinking. Sadly for the gold bears, gold took both punches, dusted itself off of the mat, and then came back and did some counterpunching on its own.
Here is the key to this development – just watch the price of gold in Euro terms as was pointed out earlier this week when discussing the flaws in the Precherites analysis of the gold market.
Succinctly – gold is continuing to make one new record high after another when priced in terms of the Euro. While we here in the US are naturally focused on the Dollar price of gold, gold is performing superbly in terms of the European currencies. Fears concerning the longer term viability of the European monetary union, which I might add were destined to come to the forefront due to the “one size fits all” model which cannot possibly work with a series of nations with such different cultures and differing economic models, have sent European investment money pouring into gold (Did you not read years ago before any of this occurred when Jim wrote that the Euro was a basket of junk). FEAR is driving this phenomenon and fear of such nature is not going to be easily assuaged by rhetoric. Investors on the continent are doing what they always do when faced with a currency whose foundation is shaking – they are moving into gold in a very large way.
It is not just the continent, but also across the Channel, that investment money is pouring into gold – witness the rise in gold priced in terms of the British Pound, another currency which is rapidly losing investor confidence. It too is threatening to also make another all time high, something which it just did a mere two months ago.
Ditto for gold when priced in terms of the Swiss Franc. While it has not yet put in an all time high, it is currently at its highest level since 1980.
As you can see, anything related to Europe is struggling in terms of gold. The Fed may posture and preen and try to establish its “hawkish” bona fides, but the facts are that what is occurring as a crisis of confidence in Europe, is overriding obvious attempts by the official sector to derail the rise in gold. Simply put – gold “just ain’t buying it” and is telling us that it WANTS to go higher. This is the kind of sentiment that is reflected when a market rejects a bearish dose of news. It is going to take a very huge concerted effort on the part of these enemies of gold to stuff the yellow metal into a box. The WAR is heating up and looks to become even more fierce. Fasten your seat belts.”- Dan Norcini, More at JSMineset.com
“If a picture is worth a thousand words than this 33-year chart on the U.S. Treasury 30-year bond is a “book” load of information. There’s really no doubt that declining interest rates were the driving force behind the growth in financial assets. A generation of investors have been weaned on this but now face what I believe can be a “once-in-a-lifetime” epic reversal of fortune. One of the last things anyone should do (besides bet on the gold perma bears who are set to be crushed yet again) is to look to buy U.S. debt instrumentals here with maturities past 1-2 years.
Again we’ve a picture that helps tell a much larger story. After throwing what seem like everything but the kitchen sink at gold last week late in the access market trading when little if anything usually happens, gold has said “take that you crummy bears” and is near a significant break out level of $1,125. Two consecutive closes above $1,125 should fairly quickly bring on a test of far more important resistance just above $1,150.
You can’t help but love the way gold is trading. The perma-bears were once again telling those in the media who continue to listen to the most wrong-way forecasters in the business today how poor the fundamental and technical outlook is for gold. One of those “forever” wrong pied-pipers spews all sorts of quotes from others in his daily commentary who see only bad news ahead for gold like he does. Never in my 25+ years have I’ve seen someone so wrong for so long and make like none of his constantly wrong predictions were ever actually uttered. Sadly, some in the media have a blind eye towards accuracy.
As much as gold has done well given what was thrown at it of late, we first still need to get above $1,125 and then more importantly above $1,150 before we put the plates and forks down for yet another perma-bear buffet. The Crimenex is still open Monday – Friday and they appear once again to be doing their thing as I type. The good news is the paper hangers who hang out there are slowly but surely being overwhelmed by the real physical market for gold.
From the lows of March 2009, anyone who has tried to go short U.S. equities at the then perceived top of the market has been badly burned. Such appears to be the case again recently. While I no longer advocated real equity exposure to U.S. stocks outside of those related to metals and mining, I’ve warned against going short despite some real questioning by my listening audience. It’s a terrible mistake to always think you must be long or short. Doing nothing appears to be the toughest trade for many.
Don’t look lightly at this news even though the story suggests it was only to be a focus in one state. The very fact that Citibank wants to do this at all should be of great concern.”- Peter Grandich, Grandich Letter
GATA Posts:
London firm was created to route cash
Supreme Court allows manipulation suit against Pimco to proceed
Gary North: Fed's secrecy aims mainly to hide gold's disposition
GATA congressional appeal update: Only PERSONAL contact has a chance
Adrian Douglas: CFTC admits hiding info exposing market manipulation
Lawrence Williams: Gold resilient amid double adversity last week
Help put the gold swap question to Bernanke next week
Bernanke expected to assure Congress that higher rates aren't imminent
Butler tells King World News metals are 'locked and loaded' for rally
Video of the Bill Murphy roast hits the Internet
The Statistics:
Activity from: 2/19/2010
Gold Warehouse Stocks: | 9,933,269 | -12,228 |
Silver Warehouse Stocks: | 108,838,989 | +603,434 |
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 | 1107.596 | 35,610,332 | US$39,703m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 119.40 | 3,837,595 | US$4,280m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 15.35 | 491,572 | US$551m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 53.52 | 1,720,665 | US$1,931m |
NASDAQ Dubai | Dubai Gold Securities | 0.155 | 4,980 | US$6m |
Note: Change in Total Tonnes from yesterday’s data: SPDR subtracted 1.828 tonnes, the LSE added 0.04 tonnes, and the JSE subtracted 0.23 tonnes.
COMEX Gold Trust (IAU) Total Tonnes in Trust: 77.44 - No change from yesterday’s data.
Silver Trust (SLV) Total Tonnes in Trust: 9,446.40 - No change from yesterday’s data.
The Miners:
Almaden’s (AAU) project update, Buenaventura’s (BVN) resumed mine operations, Fronteer’s (FRG) drill results, Royal Gold’s (RGLD) completed arrangement with International Royalty, and Silvercorp’s (SVM) project purchase were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Solitario | XPL +5.28% $2.19 |
2. Mag Silver | MVG+5.07% $6.22 |
3. Timberline | TLR +1.96% $1.04 |
LOSERS
1. Vista Gold | VGZ -3.76% $2.05 |
2. ITH | THM -3.13% $6.50 |
3. Alexco | AXU-3.11% $3.1005 |
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:
Trelawney Intersects 10.69 g/t Gold Over 3.7 m in Chester 3 Zone - More
- February 22, 2010 | Item | ShareThis
Southeast Asia Mining Provides Update - More
- February 22, 2010 | Item | ShareThis
Almaden Minerals Ltd.: Caballo Blanco Project Update - "Almaden Minerals Ltd. (TSX:AMM - News)(AMEX:AAU - News) ("Almaden") is pleased to announce that it has agreed to terms with NGEx Resources Inc. ("NGEx"; formerly Canadian Gold Hunter Corp.) and Goldgroup Resources Inc. ("Goldgroup") with respect to its Caballo Blanco gold-copper project in Veracruz State, Mexico." More
- February 22, 2010 | Item | ShareThis
Early Warning Report Issued Pursuant to National Instrument 62-103-Acquisition of Shares of Soho Resources Corp. - More
- February 22, 2010 | Item | ShareThis
Gowest Announces Grant of Options - More
- February 22, 2010 | Item | ShareThis
Royal Gold and International Royalty Corporation Complete Plan of Arrangement - "Royal Gold, Inc. (NASDAQ:RGLD - News)(TSX:RGL - News) (“Royal Gold”) and International Royalty Corporation (NYSE-A: ROY, TSX: IRC) (“IRC”) today announced the completion of the plan of arrangement (the “Arrangement”) between Royal Gold and IRC pursuant to which Royal Gold has acquired all of the outstanding common shares of IRC." More
- February 22, 2010 | Item | ShareThis
U3O8 Corp. Provides Update on Stock Halt - More
- February 22, 2010 | Item | ShareThis
Copper Ridge announces purchase of Quitovac gold project from Andina Minerals and subsequent sale to Golden Predator - More
- February 22, 2010 | Item | ShareThis
Houston Lake Mining Drills 17.25 m at 2.93 g/t Au Including 2.50 m at 10.05 g/t Au - More
- February 22, 2010 | Item | ShareThis
Goldstone Reports Best Intercept To-Date From Deep Drilling at Hardrock Project - More
- February 22, 2010 | Item | ShareThis
Drilling for Gold is Underway on the Matheson Property - More
- February 22, 2010 | Item | ShareThis
First Gold Exploration Inc.: Formal Agreement on Mexican Option and Amendment to Terms - More
- February 22, 2010 | Item | ShareThis
Avanti Mining appoints Investor Relations Manager - More
- February 22, 2010 | Item | ShareThis
Platinex Update - More
- February 22, 2010 | Item | ShareThis
Cartier Announces More Drill Results From New VMS Discovery - More
- February 22, 2010 | Item | ShareThis
Premier Gold - Deep drilling at Hardrock returns best intercept to-date 5.37 g/t GOLD OVER 57.1 m (0.16 oz/ton over 187.3 feet) - More
- February 22, 2010 | Item | ShareThis
Strategic Mining Announces Appointment of New President and Launch of New Website - More
- February 22, 2010 | Item | ShareThis
Lundin Reports 2009 Reserve & Resource Estimate - More
- February 22, 2010 | Item | ShareThis
Ecometals Announces Significant Intersection of Porphyry-Epithermal Style Mineralization, Rio Zarza Gold Project, Ecuador - More
- February 22, 2010 | Item | ShareThis
Queenston Drilling Expands Resource Potential at Upper Beaver - More
- February 22, 2010 | Item | ShareThis
Terrane Appoints New Director - More
- February 22, 2010 | Item | ShareThis
Tamerlane Commences Drill Program at Pine Point Pb Zn Project - More
- February 22, 2010 | Item | ShareThis
Black Tusk Minerals Engages Public Relations / Investor Communications Agency to Enhance Industry and Investor Awareness - More
- February 22, 2010 | Item | ShareThis
Western Troy to Explore Its Fabiola Molybdenum/Gold/Copper Prospect Near Rouyn-Noranda, Quebec, Announces Drilling Results at Its Galloway Molybdenum Prospect - More
- February 22, 2010 | Item | ShareThis
Todd Bruce Joins Board of Amarillo Gold - More
- February 22, 2010 | Item | ShareThis
Atna Updates Reserve Estimates for Briggs and Reward - More
- February 22, 2010 | Item | ShareThis
Advanced Airborne Survey Underway on Pacific Bay Uranium Property, Quebec - More
- February 22, 2010 | Item | ShareThis
Calibre Mining to Drill Borosi Gold-Copper-Silver Project - More
- February 22, 2010 | Item | ShareThis
Nevada Gold Holdings Inc. Secures $3.2 Million of New Financing - More
- February 22, 2010 | Item | ShareThis
Nanika Receives Assay Results for Selected Intervals from First Drill Hole on the Sweeney Property of 2010 - More
- February 22, 2010 | Item | ShareThis
PBX Announces Private Placement - More
- February 22, 2010 | Item | ShareThis
Tiomin Turns Interest in Copper-Gold Project Into Cash - More
- February 22, 2010 | Item | ShareThis
Asia Now to Host Influential Chinese Investors - More
- February 22, 2010 | Item | ShareThis
Medoro Announces Resource Estimate on Zona Baja Property - More
- February 22, 2010 | Item | ShareThis
New Dimension Continues Cenepa Field Work in Peru - More
- February 22, 2010 | Item | ShareThis
Fission Intersects 12m of 3.64% U308 Including Mineralization as High as 45.2% U308 - More
- February 22, 2010 | Item | ShareThis
Iberian Minerals Reports 2009 Operating Results and Mine Updates, 2010 Capex and Exploration Budgets, Hedging Update, and 2010 Guidance - More
- February 22, 2010 | Item | ShareThis
Linear Gold Intercepts Gold Zone Below Box Deposit at 100% Owned Goldfields Project - More
- February 22, 2010 | Item | ShareThis
Orvana Announces Appointment of New Vice President, Mining - More
- February 22, 2010 | Item | ShareThis
Golden Minerals Reports 2009 Year-End Results - More
- February 22, 2010 | Item | ShareThis
General Metals Reports Hill Zone Delineation Drilling Defines 360 Foot (110 Meter) Wide Mineralized Zone at Independence Property - More
- February 22, 2010 | Item | ShareThis
Sunergy Files Current Terminal Report and Application for Extension for 2 Year Renewable Prospecting License for Its 150 sq. km. Nyinahin Mining Concession - More
- February 22, 2010 | Item | ShareThis
Gold Resource Corporation Signs Underground Mining Contract for Development of Its High-Grade Arista Gold Silver Deposit at Its Aguila Project - More
- February 22, 2010 | Item | ShareThis
PC Gold Hits Highest Grades on Record in Deep Drilling Below Shaft 1 Workings - More
- February 22, 2010 | Item | ShareThis
Rainy River Announces Final 2009 Drill Results - More
- February 22, 2010 | Item | ShareThis
HudBay Updates Drilling at Lalor Deposit: Copper-Gold Zone Remains Open Down Plunge to the North and West - More
- February 22, 2010 | Item | ShareThis
Pacific Comox Reports 4.5 % (90 lbs/ton) Molybdenum, 2.7 % Copper and 53 grams/tonne Silver in Channel Samples From Floor of Ryan Lake Open Pit - More
- February 22, 2010 | Item | ShareThis
Operations Resume at Buenaventura's Mines - "Compania de Minas Buenaventura S.A.A. ("the Company" or "Buenaventura") (NYSE: BVN; Lima Stock Exchange: BUE.LM), Peru's largest publicly-traded precious metals mining company announced today that operations resumed on Saturday, February 20, 2010 at midnight at the Company's three operating units Orcopampa, Uchucchacua and Antapite, after the conclusion of a strike that began on February 13, 2010." More
- February 22, 2010 | Item | ShareThis
Silvercorp to Acquire Advanced Stage Silver-Lead-Zinc Project in British Columbia, Canada - "Silvercorp Metals Inc. ("Silvercorp" or "the Company") (TSX:SVM - News)(NYSE:SVM - News) has signed a definitive purchase agreement with Silver Standard Resources Inc. ("Silver Standard") to purchase a 100% interest in the Silvertip silver-lead-zinc project covering 216 km2 in northern British Columbia, Canada. Total consideration for the project is CDN$15-million with up to 50% to be paid in Silvercorp common shares and the balance in cash. The closing date is expected on or before February 26, 2010." More
- February 22, 2010 | Item | ShareThis
Fronteer: New Drilling Expands Halilaga Copper-Gold Porphyry in Northwestern Turkey - "Fronteer (TSX:FRG - News)(AMEX:FRG - News) announces today that drilling has further defined the footprint of copper-gold mineralization at the Halilaga porphyry deposit in northwestern Turkey." More
- February 22, 2010 | Item | ShareThis
- Chris Mullen, Gold Seeker Report
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-- Posted 22 February, 2010 | |
