-- Posted 16 April, 2010 | | Source: SilverSeek.com
| Close | Gain/Loss | On Week |
Gold | $1135.75 | -$24.40 | -2.14% |
Silver | $17.65 | -$0.76 | -3.71% |
XAU | 168.67 | -2.54% | -4.71% |
HUI | 427.99 | -2.36% | -4.81% |
GDM | 1285.13 | -2.19% | -4.39% |
JSE Gold | 2256.92 | -57.89 | -4.38% |
USD | 80.76 | +0.29 | -0.21% |
Euro | 135.06 | -0.74 | +0.08% |
Yen | 108.55 | +1.03 | +1.18% |
Oil | $83.10 | -$2.41 | -2.14% |
10-Year | 3.770% | -0.078 | -3.03% |
Bond | 116.375 | +0.84375 | +0.78% |
Dow | 11018.66 | -1.13% | +0.19% |
Nasdaq | 2481.26 | -1.37% | +1.11% |
S&P | 1192.13 | -1.61% | -0.19% |
The Metals:
Gold saw modest losses in Asia and traded only slightly lower in London before it dropped throughout most of trade in New York and ended near its noontime low of $1129.85 with a loss of 2.1%. Silver fell to as low as $17.61 by early afternoon in New York and ended with a loss of 4.13%.
Euro gold fell to about €842, platinum lost $33 to $1684.50, and copper fell nearly 9 cents to about $3.51.
Gold and silver equities fell about 4% by early afternoon before they rallied back higher in the last few hours of trade, but they still ended with over 2% losses.
The Economy:
Report | For | Reading | Expected | Previous |
Building Permits | Mar | 685K | 625K | 637K |
Housing Starts | Mar | 626K | 610K | 616K |
Michigan Sentiment | Apr | 69.5 | 75.0 | 73.6 |
Low Rates Good for Banks, but Pity the Saver Yahoo
All of this week’s other economic reports:
Next week’s economic highlights include Leading Indicators on Monday, Initial Jobless Claims, PPI, Existing Home Sales, and the FHFA Home Price Index on Thursday, and Durable Orders and New Home Sales on Friday.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil fell along with the Dow, Nasdaq, and S&P as the U.S. dollar index and treasuries rose on worries over Goldman’s fraud charge, poor earnings reports, and increased concerns over Greece that sent the euro lower.
Among the big names making news in the market Friday were Goldman Sachs (charged with FRAUD by the SEC), Bank of America, GE, Mattel, MetLife, Toyota, and Sony Ericsson.
The Commentary:
“Gold's open interest for Wednesday's trading showed a decline of 1,983 contracts. Volume was 135,879 contracts. However, silver's open interest went the other direction... up 1,967 contracts on volume of 45,578 contracts, about a third of which were roll overs and probably some spreads. Ted Butler figures that a spread trade was the reason why o.i. rose in silver... as there was nothing in the price action on Wednesday to indicate a jump in o.i. of this size. Today's Commitment of Traders report will be released at precisely 3:30 p.m. Eastern time... and the link to that report is here.
The CME Delivery Report showed that 76 gold and zero silver contracts have been posted for delivery on Monday. The GLD ETF showed no changes yesterday...but, once again, the silver ETF stole the show, as the boys and girls over at SLV reported another huge withdrawal... the second in as many days. This time it was 2,157,100 ounces. Since February 26th... 16.7 million ounces of silver have been withdrawn in ten consecutive tranches. That's 5% of SLV's silver removed by 'authorized participants'... almost ten days of world silver production. What entity [or entities] needed silver that badly, or in such a hurry... and how tight must the supply line be if they have to resort to getting it from SLV? I can tell you this, dear reader, if the silver users who have withdrawn this metal from SLV had to source it from the Comex... I can absolutely guarantee that the price of silver would not be $18.50 spot right now!
Talking about silver disappearing... the U.S. Mint updated their April sales figures yesterday. They reported that 21,500 gold eagles and another 749,500 silver eagles were sold. This brings April one-ounce gold eagle sales up to 33,500... and silver eagle sales up to 1,147,000. The Comex-approved depositories reported a net inflow of a very tiny 17,950 ounces on Wednesday. But there was a lot of in-and-out movements associated with that small change... and you can view all the action here.”– From Ed Steer’s Gold & Silver Daily, read the full report here.
“Dear CIGAs,
The whooper that rocked the markets today was news of the SEC charging Goldman with fraud. That overshadowed everything else. Once Goldman’s stock led the way down, the entire financial sector was slammed and that took the entire equity market sharply lower.
It was out with risk and in with safe havens once again. That led the Yen higher as well as bonds which were able to break through that double top near 116^ 22. It also kept a bid under the Dollar. The result for gold was predictable at that point – it fell out of bed as money was withdrawn from some key commodity sectors in quick fashion.
The yellow metal fell through support at this week’s previous low near $1,145 falling to the second support level shown on the chart near the vicinity of $1,130. Gold will need to hold here to avoid a strong round of long liquidation.
The problem for Goldman is this now opens the door for buyers of the stuff they were peddling for recourse against the firm especially if they are found to be guilty of the charge. Who knows how that is going to end? One thing about traders is that they do not like unanswered questions so the general action plan is to sell first and ask additional questions later. It will be interesting to see how the stock market closes for the day however and whether enough players decide to buy the financials on a contrarian play. The big banks have been making obscene profits this year and traders might decide to look past the current SEC charges and focus on the upcoming earnings numbers. If that occurs, look for gold to move higher in the afterhours trading session.
As Treasuries surged higher, the yield on the 10 year note dropped down near 3.76% today. Who knows, perhaps the Feds chose the timing to go after Goldman Sachs to stop the 10 year from climbing back above the 4% level. I have become so cynical that I put nothing past these guys any more.
Crude oil experienced a sharp sell off as did copper but the grains held relatively firm as did the meats. That is encouraging as it indicates that money flows into the commodity sector did not completely reverse. That should bring some stability into gold once the initial knee-jerk reaction subsides.
For now, we have sustained some short term chart damage in gold but as long as it can hold above $1,130 it will be okay. Physical market demand will probably kick in Sunday evening as Asia comes online. Remember this is occurring as Asia is already into their weekend. Let’s see how things shake out on Monday to get a better sense of what lies ahead for gold.
The action in the gold shares is not surprising given the sharp selloff in the broad equity markets and the weakness at the Comex. If the stock market recovers, so too will the mining shares. For now, they have fallen into a zone between the 20 day moving average and the 40 day. The 50 day comes in near 414, currently about 9 points below where the index is currently trading. It will need to hold above this level to prevent a further fall to 400. For the bulls to get back on track again, the HUI needs a closing push above 438.
Even with the move away from risk trades today, the Dollar is having difficulty extending its gains above the gap formed by this week’s price action. If it can close above 81.05, it has a chance to move higher early next week. If it is unable to close the gap and hold it, technicians will see it as a sell signal. The jury is therefore out until later in the day.
How the bonds close today is going to be significant on the technical charts. A push above 117^00 will help the weekly chart and signify the potential to move back up within a broader wedge formation. Last week’s low near 114 is crucial if the long bond is to prevent a downside breakdown.”- Dan Norcini, More at JSMineset.com
GATA Posts:
Warren Mosler: Central bank gold lending may have other motives
SEC accuses Goldman of fraud in mortgage investments
Gold advocate Sprott interviewed by CNBC
FOFOA: The 21st-century bank run
The Statistics:
Activity from: 4/15/2010
Gold Warehouse Stocks: | 10,091,856 | -2,028 |
Silver Warehouse Stocks: | 115,598,988 | +12,733 |
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 | 1141.041 | 36,685,623 | US$42,233m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 115.32 | 3,706,447 | US$4,200m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 14.21 | 476,302 | US$518m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 49.19 | 1,581,408 | US$1,826m |
NASDAQ Dubai | Dubai Gold Securities | 0.155 | 4,978 | US$6m |
Note: Change in Total Tonnes from yesterday’s data: The LSE subtracted 0.02 tonnes and the ASX subtracted 1.14 tonnes.
COMEX Gold Trust (IAU) Total Tonnes in Trust: 76.94 - No change from yesterday’s data.
Silver Trust (SLV) Total Tonnes in Trust: 8,958.68: -67.1 change from yesterday’s data.
The Miners:
Harmony’s (HMY) plans to close three mining shafts, US Gold’s (UXG) Preliminary Economic Assessment results, Keegan’s (KGN) President and CEO appointment, and U.S. Silver’s (USA.V) increase in proven and probable ore reserves were among the big stories in the gold and silver mining industry making headlines Friday.
WINNERS
1. Paramount | PZG+6.21% $1.54 |
2. Banro | BAA +4.31% $2.42 |
3. Vista Gold | VGZ +3.26% $2.22 |
LOSERS
1. Jaguar | JAG -7.29% $10.43 |
2. US Gold | UXG -4.05% $3.08 |
3. Golden Star | GSS -3.92% $3.92 |
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:
Golden Band Resources Inc. completes buy back of interest in mineral properties - More
- April 16, 2010 | Item | ShareThis
Titan Uranium Files Technical Report on SEDAR - More
- April 16, 2010 | Item | ShareThis
Finlay Minerals Ltd. - $640,000 Private Placement Initiated - More
- April 16, 2010 | Item | ShareThis
Harmony to close three shafts at Virginia - "After "careful" review, Harmony Gold Mining Co said it will close three of its shafts that form part of the Virginia operations in the Free State, affecting about 3,700 employees." More
- April 16, 2010 | Item | ShareThis
Uranium International Corp. Appoints Rahim Jivraj as President, CEO and Director of the Company - More
- April 16, 2010 | Item | ShareThis
Northland Releases Tapuli, Sahavaara and Pellivuoma Mineral Resource Updates In Support of Kaunisvaara Definitive Feasibility Study - More
- April 16, 2010 | Item | ShareThis
Global Uranium enters into an option and joint venture agreement with Concentric Energy Corp. - More
- April 16, 2010 | Item | ShareThis
Colibri Resource Corporation (CBI) provides update on corporate activities and exploration plans - More
- April 16, 2010 | Item | ShareThis
La Mancha Obtains First Gold Pour From Its Australian White Foil Mine - More
- April 16, 2010 | Item | ShareThis
Eastplats Reports Operating Results for the Quarter Ended March 31, 2010 - More
- April 16, 2010 | Item | ShareThis
Ireland Inc. to Present at the Chicago Resource Expo - More
- April 16, 2010 | Item | ShareThis
Colossus Minerals Inc. Granted an Installation License for Serra Pelada - More
- April 16, 2010 | Item | ShareThis
American Paramount Gold Corp. Announces Agreement to Acquire 100% Interest in Cap Gold Project - More
- April 16, 2010 | Item | ShareThis
Dundee Precious Metals Inc.: Bulgarian Court Renders Final Decision Revoking Chelopech EIA Resolution - More
- April 16, 2010 | Item | ShareThis
El Capitan Precious Metals, Inc. Moves to Advance a Proposed Joint Venture with Planet Resource Recovery, Inc. Utilizing Their Eco-Friendly Mining Technology - More
- April 16, 2010 | Item | ShareThis
Goldrich to Drill 20,000 Feet at Chandalar in Alaska - More
- April 16, 2010 | Item | ShareThis
Castle Gold Q4 2009 and 2009 Year End Production Results - More
- April 16, 2010 | Item | ShareThis
Bandera Acquires Two Portable Drills for Belmira - More
- April 16, 2010 | Item | ShareThis
U.S. Silver's Reserves Update & Option Grant - "U.S. Silver Corporation (TSX-V: USA, US OTC: USSIF, Frankfurt: QE2) (“US Silver” or “the Company”) is pleased to announce today an increase in proven and probable ore reserves for the fourth consecutive year at the Galena mine in Wallace, Idaho." More
- April 16, 2010 | Item | ShareThis
US Gold Announces Positive Preliminary Economic Assessment for Gold Bar Project, Nevada - "US GOLD CORPORATION (AMEX:UXG - News)(TSX:UXG - News) is pleased to announce results of a Preliminary Economic Assessment ("PEA") for its 100% owned Gold Bar Project in Nevada. Results demonstrate favourable economic returns at the current gold prices." More
- April 16, 2010 | Item | ShareThis
Keegan Appoints Maurice Tagami President And CEO - "Keegan Resources Inc. ("Keegan") (TSX:KGN - News)(AMEX:KGN - News) is pleased to announce that Maurice Tagami, P. Eng has been appointed President and CEO of the company. Mr. Tagami replaces Dr. Dan McCoy who has resigned as President and CEO. Dr. McCoy will remain a director and the Chief Geologist for the company. Dan will continue to oversee all aspects of exploration at both Asumura and Esaase, Keegan's two properties in Ghana, West Africa." More
- April 16, 2010 | Item | ShareThis
- Chris Mullen, Gold Seeker Report
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-- Posted 16 April, 2010 | |
