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Gold Seeker Closing Report: Gold and Silver Gain Roughly 1%

By: Chris Mullen, Gold-Seeker.com


-- Posted 5 April, 2010 | | Source: SilverSeek.com

 

Close

Gain/Loss

Gold

$1133.05

+$7.95

Silver

$18.08

+$0.22

XAU

173.07

+1.05%

HUI

432.28

+0.99%

GDM

1295.59

+1.17%

JSE Gold

2243.92

+37.81

USD

81.12

+0.41

Euro

134.80

-1.02

Yen

106.02

-0.52

Oil

$86.62

+$1.75

10-Year

3.994%

+0.135

T-Bond

114.84375

-0.50

Dow

10973.55

+0.43%

Nasdaq

2429.53

+1.12%

S&P

1187.44

+0.79%

 
 

 

The Metals:

 

Gold held near unchanged in Asia and traded mostly slightly higher in London before it extended its gains in New York and ended near its early afternoon high of $1133.34 with a gain of 0.71%.  Silver fell to see a 2 cent loss at $17.84 in early New York trade before it climbed back higher for most of the rest of trade and ended near its late session high of $18.12 with a gain of 1.23%.

 

Euro gold rose to a new all-time high at over €839, platinum gained $33 to $1700, and copper rose another 5 cents to about $3.63.

 

Gold and silver equities rose over 1% at the open and remained near their highs into the close.

 

The Economy:

 

Report

For

Reading

Expected

Previous

ISM Services

Mar

55.4

54.0

53.0

Pending Home Sales

Feb

8.2%

0.0%

-7.8%

 

Tomorrow at 2PM EST brings FOMC minutes from the fed’s last meeting.

 

 

The Markets:

 

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

 

The U.S. dollar rose on uncertainty over China, the yuan, and the US government’s delayed currency report that was originally due out April 15th and could potentially call China a “currency manipulator.”

 

Oil climbed to almost $87 a barrel on hopes for rising energy demand and treasuries fell slightly as the Dow, Nasdaq, and S&P found modest gains on better than expected economic reports.

 

Among the big names making news in the market today were GM, Apple, and Campbell.

 

The Commentary:

 

“In silver, I was hoping for an improvement... but that didn't happen, as the U.S. bullion banks increased their net short position, this time by a smallish 619 contracts.  The '4 or less' bullion banks are short 240 million ounces of silver... and the '8 or less' trader are short about 310 million ounces.

 

In percentage terms, the '4 or less' traders hold around 53% of the entire Comex short position in silver... and the '8 or less' traders [which includes the '4 or less'] are short about 69% of the entire Comex silver market.

 

Gold, on the other hand, was entirely different.  The U.S. bullion banks decreased their net short position by a chunky 16,132 contracts. They did this by buying 10,968 long positions and covering 5,164 short positions.  This ratio of changes in longs to changes in shorts proves to me that the bullion banks have been trying to cover their tracks quietly by going mostly long rather than always covering their short positions... as this method doesn't change daily open interest figures as much.  The only time we see what they've been up to, is this once a week snapshot when they can't hide their previous week's activities any longer.  Don't ever accuse 'da boyz' of being stupid.  When you're a criminal organization this size... the bullion banks have the brightest MBA's and computer systems you can buy, working on their behalf.

 

As of last Tuesday, the '4 or less' bullion banks are short 16.6 million ounces of gold... and the '8 or less' bullion banks are short 20.9 million ounces of gold.  The Commercial net short position sits at 20.8 million ounces... so this means that the '8 or less' bullion banks hold a hair over 100% of the entire net short position between them.  And if you think that's a lot, let me point out that in silver, the '8 or less' bullion banks are short 134% of the Commercial net short position.  How's that for concentration and price control???”– From Ed Steer’s Gold & Silver Daily, read the full report here.

 

Dear CIGAs,

 

Welcome to another new week in the gold market and another week of bullion bank price capping displays. Today’s price action in gold makes the price capping by the above culprits at the $1,130 level most evident as once again it was repelled from that level earlier in the session, even in the facing of a surging crude oil market and a copper market that has gone on to make yet another yearly high. Also, with the equity market, as evidenced by the S&P 500, putting in a new yearly high, the reflation trade was in full swing today.

 

More investors are apparently buying into the idea that the economy is recovering and are putting money to work especially in the energy sector as they are hoping for renewed demand for that complex as things improve. Even natural gas moved higher today and that has been a dog for some time now. Lumber also moved higher.

 

While the Euro was not particularly strong, strength in the British Pound, the Yen, the Aussie, the Loonie, etc, was enough to put some mild pressure on the Dollar. Given the combination of the above factors, one would have expected to see gold taking out the overhead selling at the top of the trading range but the longs could not quite kick the bullion banks out of the way until the last hour of pit session trade where a move up in the Euro from the unchanged level gave the gold bulls enough support to take out the selling. I must say however that the bullion banks seem terrified of losing the battle at $1130 judging from the ferocity of their selling here today.

 

Technically, the push through $1,130 is bullish but it needs additional upside to attract more recruits. A push through $1,145 is necessary for gold to say goodbye to its trading range and begin a trending move to the upside. Technicals are now firmly favoring the upside.

 

I am encouraged by the action in the gold shares as the HUI has moved exactly to the level where selling has contained it for the last 5 weeks. With the equity markets moving solidly higher, the shares should not be having this much difficulty plowing through that level and kicking off some sort of uptrending move but thus far they have not been able to garner sufficient recruits to the bull cause to do so. It appears that they are waiting and watching to see if bullion can push through $1135 or so. A closing push through 435 should squeeze out some shorts and bring in fresh buying. Momentum indicators are all positive in the HUI right now as are the moving averages but it still must prove itself.

 

Perhaps more important than any of this however was the price action in the long bond which fell through the bottom of a 3 month low that had held prices going back to August of last year. Bonds have a critical support level down near the 112 level. If they take that out, and right now it sure appears as if they want to move down to at least test it, the interest market could get ugly very quickly.

 

The central planners should beware what they wish for.

 

In their attempts to reflate the economy they are managing to perhaps awaken the nearly extinct bond vigilantes. There is no doubt that the bond bears are looking at the supply coming down the road to fund this insane government spending binge and are saying that demand is not sufficient to absorb it at current yields. No doubt they are also eyeing the move higher in crude oil with a great deal of concern. A surge in energy prices would lead into inflation fears. Expectations are more dangerous to central planners than reality at times. The yield on the 10 year jumped to hit the 4% level today. That is the highest it has been in 10 months (June 2009). If the yield pushes above 4.3%, the charts are going to show a technical breakout which has the potential to see them reach 5%. I do not know how this is not going to crush the real estate sector which is already struggling with a surfeit of available homes and pitiful demand. Then again, it is certainly not going to help government to see the interest it must pay on all that borrowed money moving higher. What the hell, they can just print more money to pay those increased borrowing costs so why worry.

 

If investors are shunning bonds in favor of jumping on the new bull market train for equities, then that source of demand is fading at the exact time that the red ink is flowing at the government. Should the Dollar suddenly fall out of favor for any reason, bond prices could sink quite sharply. Stay tuned.

 

Just a quick reminder here that the financial woes of many American cities, counties and states is not going away anytime soon as difficult choices must be made on the spending front that are sure to prove extremely unpopular. We seem to forget such things as the attention of the majority turns to the one high after another in equities. Apparently, such things are trivial compared to the technical charts which show the S&P having fully regained 50% of its losses since peaking in October 2007. “The trend is your friend” is the trader’s adage and no matter what is occurring, it is still up. Fighting the tape might be heroic but it does not exactly do wonders for one’s trading account so do not argue with things until the trend turns. The big banks can make huge profits borrowing short and lending long with the current yield curve and seeing that the financials comprise so large a portion of the stock indices, bulls will be happy particularly with energy shares going along for the ride. Crude is moving into a seasonally strong period which will support further gains in that sector.

 

One last thing for today, the CCI (Continuous Commodity Index) is currently trading at a 2 month high. If it can tack on a few more points this week, it has a shot at matching the high made in January of this year. I think it is important to note that in January, the US dollar was trading down near 77. It is currently near 81.10. Even with the move higher in the Dollar, the commodity markets are no longer falling apart. That is telling. Commodities have regained more than half their losses since the credit crisis debacle began in what seems like eons ago. Managed money wants to own these things irrespective of what the Dollar is doing. The tide is slowly turning or so it would seem as the link is weakening.- Dan Norcini, More at JSMineset.com

 

GATA Posts:

 

 

Peter Brimelow: Gold price suppression suspicion now mainstream

Switzerland's Daily Bell interviews GATA Chairman Murphy

Germany gets a full account of the CFTC hearing sensation

Max Keiser covers silver market rigging on Russia Today network

Silver couldn't be more bullish, Ted Butler tells King World News

Tim Iacono: Gold, silver, the CFTC, and conspiracy theories

Attack on King World News site meant to shut it down

If everything's manipulated, does that make it OK?

James Turk: Silver looks ready to soar

James Turk: A new dynamic in the gold market

FOFOA: Last month has done much to liberate gold

 

The Statistics:

 

Activity from: 4/02/2010

Gold Warehouse Stocks:

9,975,250

-

Silver Warehouse Stocks:

116,066,288

-23,677

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

1129.823

36,324,952

US$40,793m

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

Gold Bullion Securities

115.97

3,726,795

US$4,217m

Australian Stock Exchange (ASX)

Gold Bullion Securities

15.35

491,351

US$559m

Johannesburg Securities Exchange (JSE)

New Gold Debentures

49.20

1,581,669

US$1,764m

NASDAQ Dubai

Dubai Gold Securities

0.155

4,978

US$6m

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

 

COMEX Gold Trust (IAU) Total Tonnes in Trust: 76.96 - No change from yesterday’s data.

 

Silver Trust (SLV) Total Tonnes in Trust: 9,217.17: -61.01 tonne change from yesterday’s data.

 

The Miners:

 

Agnico’s (AEM) growth plans, Allied Nevada’s (ANV) accelerated mining plan, and Fronteer’s (FRG) metallurgical results and work program were among the big stories in the gold and silver mining industry making headlines today.

 

WINNERS

1.  Metalline

MMG+11.36% $1.19

2.  Timberline

TLR +8.41% $1.16

3.  Alexco

AXU +8.26% $3.80

 

LOSERS

1.  Banro

BAA -1.86% $2.11

2.  Ivanhoe

IVN-0.97% $17.29

3.  NovaGold

NG -0.53% $7.57

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:

Millrock Finalizes Alaskan Exploration Agreement With Kinross; Drill Program to Commence at Council Gold District Alaska in July - More
- April 05, 2010 | Item | ShareThis


Acero-Martin Exploration Inc. Announces Revision to 1,500,000 Flow-Through Share Private Placement - More
- April 05, 2010 | Item | ShareThis


Agnico says acquisition drives next stage of growth - "Agnico-Eagle Mines (AEM.TO) is laying the groundwork for the next phase of its growth with the purchase of the Meliadine gold project in northern Canada, a site that boasts 5 million ounces of gold and plenty of exploration upside, the company's CEO said on Monday." More
- April 05, 2010 | Item | ShareThis


Crown Closes Shares for Debt Placement - More
- April 05, 2010 | Item | ShareThis


Bear Lake Gold Announces Conditional Settlement of Class Action Lawsuit - More
- April 05, 2010 | Item | ShareThis


Philex Gold Announces Leading Independent Proxy Advisory Firm RiskMetrics Group Recommends Minority Shareholders Support Proposed Transaction - More
- April 05, 2010 | Item | ShareThis


Goldcorp Declares Fourth Monthly Dividend Payment for 2010 - "GOLDCORP INC. (TSX:G - News)(NYSE:GG - News) is pleased to declare its fourth monthly dividend payment for 2010 of $0.015 per share. Shareholders of record at the close of business on Thursday, April 15, 2010 will be entitled to receive payment of this dividend on Friday, April 23, 2010. Goldcorp has paid a monthly dividend to its shareholders since 2003." More
- April 05, 2010 | Item | ShareThis


Edgewater Exploration Announces Ryan King Appointed Vice President - More
- April 05, 2010 | Item | ShareThis


Virginia Mines Inc./Anatacau-Wabamisk Project: Update on Drill Results - More
- April 05, 2010 | Item | ShareThis


Ranger Gold Corp. Approves Drilling Budget for the CX Property - More
- April 05, 2010 | Item | ShareThis


Acadian Mining commences airborne survey in search for bulk tonnage gold deposits in Nova Scotia - More
- April 05, 2010 | Item | ShareThis


AmeriLithium's Americana Project Poised to Exploit North American Market - More
- April 05, 2010 | Item | ShareThis


Pan American Lithium Corp. CEO Andrew Brodkey Interviewed by CEOcast - More
- April 05, 2010 | Item | ShareThis


Liberty Star Identifies 12 Potential Porphyry Targets for Further Exploration at the Big Chunk Super Project for Gold-Copper-Moly - More
- April 05, 2010 | Item | ShareThis


Uranium International Corp. Acquires Option on Colombian Claims from Mercer Gold Corporation - More
- April 05, 2010 | Item | ShareThis


Kirrin Resources Reports 2009 Results - More
- April 05, 2010 | Item | ShareThis


Solex Enters Into a Definitive Agreement with Homeland Uranium - More
- April 05, 2010 | Item | ShareThis


Minatura Gold Appoints New Director - More
- April 05, 2010 | Item | ShareThis


Guyana Goldfields Appoints Mr. Paul Murphy as Executive Vice President, Finance and Chief Financial Officer - More
- April 05, 2010 | Item | ShareThis


Fischer-Watt Raises Private Placement Funds - More
- April 05, 2010 | Item | ShareThis


Standard Gold Announces New President - More
- April 05, 2010 | Item | ShareThis


General Metals Reports 100 Feet Assaying 0.058 Ounces Gold in Hill Zone at Independence Property -- Extends Wide, Near Surface Mineralized Zone - More
- April 05, 2010 | Item | ShareThis


Bullion Monarch Mining Updates Drill Results From Bom Jesus Project - More
- April 05, 2010 | Item | ShareThis


Allied Nevada Announces Accelerated Mining Plan With Production Expected to Reach Over 250,000 Ounces by 2012 at an Average Cost of $425-$450 Per Ounce Sold(1) - "Allied Nevada Gold Corp. ("Allied Nevada" or the "Company") (TSX:ANV - News)(AMEX:ANV - News) is pleased to announce that the Company plans to implement, subject to approval by its Board of Directors, an accelerated oxide mining plan at the Company's wholly owned Hycroft mine ("Hycroft") located near Winnemucca, Nevada. " More
- April 05, 2010 | Item | ShareThis


Fronteer Reports Metallurgical Results and 2010 Work-Program for Halilaga Copper Gold Project - "Fronteer (TSX:FRG - News)(AMEX:FRG - News) announces the 2010 work-program activities and promising metallurgical results from previously unreported work at Halilaga, a growing copper-gold porphyry deposit in northwestern Turkey." More
- April 05, 2010 | Item | ShareThis

- Chris Mullen, Gold Seeker Report

 

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

© Gold Seeker 2010

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 5 April, 2010 | |


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