-- Posted 14 May, 2010 | | Source: SilverSeek.com
| Close | Gain/Loss | On Week |
Gold | $1227.60 | -$1.40 | +1.54% |
Silver | $19.16 | -$0.26 | +4.41% |
XAU | 183.80 | +0.57% | +6.93% |
HUI | 487.45 | +0.72% | +7.93% |
GDM | 1465.16 | +0.89% | +7.89% |
JSE Gold | 2494.75 | -44.65 | +2.22% |
USD | 86.14 | +0.78 | +2.04% |
Euro | 123.77 | -1.52 | -2.89% |
Yen | 108.26 | +0.39 | -1.04% |
Oil | $71.61 | -$2.79 | -4.66% |
10-Year | 3.442% | -0.122 | +0.38% |
Bond | 122.03125 | +1.50 | -0.13% |
Dow | 10620.16 | -1.51% | +2.32% |
Nasdaq | 2346.85 | -1.98% | +3.58% |
S&P | 1135.68 | -1.88% | +2.23% |
The Metals:
Gold saw slight gains in Asia and rose as much as $20.30 to a new record intraday high of $1249.30 in London before it dropped in morning New York trade to as low as $1217.80 by a little after 11AM EST, but it then bounced back higher into the close and ended with a loss of just 0.11%. Silver climbed to as high as $19.702 in London before it fell to as low as $18.94 in New York and then rallied back higher in the last couple of hours of trade, but it still ended with a loss of 1.34%.
Euro gold climbed to a new record high of €1002.93 before it fell back to close at €991, platinum lost $25 to $1706.50, and copper fell nearly 10 cents to about $3.12.
Gold and silver equities opened up about 2% higher before they fell to see over 2% losses by late morning, but they then rallied back higher in afternoon trade and ended with almost 1% gains.
The Economy:
Report | For | Reading | Expected | Previous |
Retail Sales | Apr | 0.4% | 0.2% | 2.1% |
Retail Sales ex-auto | Apr | 0.4% | 0.5% | 1.2% |
Capacity Utilization | Apr | 73.7% | 73.9% | 73.1% |
Industrial Production | Apr | 0.8% | 0.8% | 0.2% |
Michigan Sentiment | May | 73.3 | 73.5 | 72.2 |
Business Inventories | Mar | 0.4% | 0.4% | 0.4% |
All of this week’s other economic reports:
Next week’s economic highlights include Net Long-Term TIC Flows on Monday, PPI, Building Permits, and Housing Starts on Tuesday, CPI on Wednesday, and Initial Jobless Claims, Leading Indicators, and the Philadelphia Fed on Thursday.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil fell to almost $70 a barrel at one point as the U.S. dollar index rose yet again on worries over debt problems in Europe that sent treasuries markedly higher and the Dow, Nasdaq, and S&P nearly 2% lower.
Among the big names making news in the market Friday were Ford, EADS, Morgan Stanley, J.C. Penney, Citigroup, Transocean, and Procter & Gamble.
The Commentary:
“I must admit that even though the entire world is starting to circle the economic, financial and monetary drain... I'm still more than a little nervous about the sky-high gold open interest. Ted Butler says the net short position is probably back over 30 million ounces... of which at least 90% is held by the '8 or less' bullion banks. The huge run to gold and silver in Europe [and probably elsewhere, to a smaller degree] is hugely positive... but what will these bullion banks do? Or, more aptly, what can they do?
I supposed they can instigate a short-term sell-off in gold... dragging silver down with it. But they're all still trapped like rats with no way out. As a matter of fact, if we do see a big sell-off from here, it will because the bullion banks [led by JPMorgan] will have engineered it. First notice day for delivery into the June gold contract is two weeks from today... so maybe they'll do it between now and then. But... with the Department of Justice breathing down their necks... maybe they won't.
But I'm still 'all in'... and I'm not budging.”– From Ed Steer’s Gold & Silver Daily, read the full report here.
“Dear Friends,
Some commentators are talking a euro at par to the dollar. I assure you that would be the end of the union and the beginning of the attack on the dollar that is certain to come.
If you have the emergence of national European currencies as a result of the failure of the union, the mirror image strength of the dollar would instantaneously disappear. Credit default swaps would turn their vengeance on the dollar. The Drachma would be incinerated. The Swiss and DM would be the stronger units.
If the EU fails so does the USDX. With no mirror image to hold up the dollar artificially, the US dollar will fall faster than Greece’s credit.”- Jim Sinclair, JSMineset.com
“Dear CIGAs,
Gold priced in Dollar terms made a brand new all time high in overnight London trade before coming into New York where the sellers tried their luck at taking it lower as the equity markets fell apart and the Euro plunged further into the abyss. Sadly for the sellers, once the initial knee-jerk selling response across the entire commodity sector was initiated and gold moved lower, buyers came back into the yellow metal and took it higher. There still appears to be a “buy the dip” mentality in gold which is providing support for the metal and allowing it to shrug off some of the algorithm Dollar related selling.
You have to feel a bit of sympathy towards the European monetary authorities (not really – my concern is for the citizens of these various countries and not the monetary officials or some of the political leaders). The poor guys dithered and withered while the Euro was crashing around them finally coming up with what they believed was their own financial version of “Shock and Awe”. The gargantuan sum of money they announced to shore up Greece and defend the Euro in the process turned out to be more of a Fizzling Fireworks Fiasco.
The Euro is now deeply below the level that it had reached prior to their announcement of the rescue package. If the Euro takes out the 2008 low, it is going all the way to 11600. If it cracks that, it could end up trading at parity with the US Dollar. German exporters seem thrilled about its demise – for now – but wait until the inflationary effects of a collapsing currency begin being felt. Be careful what you wish for; you are liable to get it!
The result of all this – Euro gold is closing in rapidly on the €1000 level as it was fixed at €993.971 at the afternoon in London. British Pound gold is moving up the scale towards Ł900 as it was fixed at Ł848.662. Both are new record high prices. I am not sure if we are yet seeing panic buying of gold in Europe but based on good reports, dealers are having trouble keeping coins and bars in stock. While that may not qualify officially as panic, it seems to me that the potential for such is increasing with the passing of each day and another new low in the Euro. These things can get rapidly out of hand and the speed at which a panic can ensue should not be underestimated.
Watch and see how the rivalries between the various countries that comprise the Euro zone, which were plastered over when the European Monetary Union was first concocted, now come to the forefront and nationalistic tendencies reassert themselves.
It reminds me of the former USSR. You had a situation where countries with different ethnic backgrounds, customs, religions, traditions, etc. and oftentimes little in common, were formed into a “union” and held together by the sheer force of military might. Once that restraint was taken out of the way, the forces that under normal circumstances would have prevented such a union from being viable, came to the forefront and ripped the entire thing apart. Perhaps what we are seeing in Europe is a similar thing. I do not know but trying to cobble a disparate set of countries together with oftentimes little but geographical nearness the only thing they share in common, seems to me to be an attempt to defy history. We will soon see.
The US Dollar on the technical charts now looks like it has a clear path up towards the 89 – 90 level. That should prove to be a very tough nut to crack. However, should it be able to do so, it would portend an unraveling of the Euro. In such a case, gold will still be strong as it will move higher against all fiat currencies, including the greenback. While gold is still being influenced somewhat by the Dollar, namely because the algorithms are programmed to sell it on dollar strength (those things are soon going to have to undergo some modifications to adjust them), there will be sufficient safe haven demand for gold against sovereign debt contagion, to power the metal higher even as the Dollar moves higher. At some point then the Dollar itself would come under attack since its fundamentals are no better than some of the countries comprising the Euro zone. Were that to happen, gold will then accelerate very sharply to the upside.
Besides, you have to consider, exactly what is the “value” of the Dollar? When we look at the USDX it is being measured against a basket of currencies with the Euro holding over a 50% weighting. If the Euro fails, what good is an index containing a currency that no longer exists? In other words, the USDX is merely a tool comparing one fiat currency against others. I might look like one strong dude if I bench press 200 pounds (please have someone standing by to lift the barbell off of my crushed chest) but what is that compared to a guy who can bench press 380? In other words, it is all relative. The Dollar may look strong compared to the Euro and the Pound, but so what. Both are rapidly becoming junk. All this means is that the Dollar is gaining value against two paper currencies headed to the toilet but it says nothing whatsoever about the intrinsic value of the Dollar on its own merits. Gold is telling us that the Dollar isn’t worth squat and that is the true and final estimation of the greenback’s merits.
The HUI is being influenced by weakness in the equity markets more so than strength in gold, although the weakness in silver is not helping the HUI any. I mentioned a few days ago that we might see some hedgies institute some new spread trades where they buy the miners and sell the broader equity markets. They might be doing some of that today based on what I can see from here. Such a strategy would tend to provide some support for the shares in the event of a further meltdown in the broad markets with the mining sector eventually decoupling altogether and moving higher along with the metals. For now it is evident on the charts that the HUI is experiencing pretty solid selling resistance near and just shy of the 500 level. Once it cracks that level, it should easily move towards 520. Support appears near 440.
Silver was caught in a tug of war today. It was pulled lower by the collapse in the base metals such as copper and weakness in the PGM’s, but was pulled higher by the stability in gold. It will now need to put in a close above 19.66 or a strong intraday push through that level to kick off the next leg higher.
Gold seems to have established some resistance near the psychological even number of $1,250. It has been up near there twice and been unable to breach it for now. Such is a common occurrence for the yellow metal. It likes these round and even numbers for some reason. The fact is that it is still well bid and holding support on the charts quite well. I want to see a weekly close above the former high at $1227 to really paint that particular chart strongly bullish as it would unequivocally pose an upside breakout. It is evident to me that there are entities present at the Comex who are attempting to prevent just that based on the way they are going after the bids here on the closing bell for pit session trade. A close above $1240 sets it up for a run towards $1280.
Crude oil continues to be pummeled both by the one-two punch of the stronger Dollar and the fading equity markets. It dropped below $72 today and looks poised to head low enough to test critical chart support near $70 – $69. If it fails there, it will be at $65 before you can change your socks. At least drivers and transportation related firms are smiling although how would you like to be member of OPEC trading your valuable black gold for paper currencies which are falling apart? Something tells me that a great deal of gold buying is coming out of the Middle East these days.
Bonds, here they go again! After spending all of this week moving lower in a continuation of the peaking move once the stock market rout of last week finished its course, they are back where they closed the previous week as I write this. Further weakness next week in the equity markets and bonds will make another run at 125^00. The home mortgage crowd is crowing about how good this is for home sales. Yep – nothing like more cheap money to fix the problems created by more cheap money.”- Dan Norcini, More at JSMineset.com
GATA Posts:
Jay Taylor interviews Ron Paul on auditing the Fed
Gold ETFs try to lure Indians away from metal and into paper
Jonathan Weil: Rigged-market theory scores a perfect quarter
The Statistics:
Activity from: 5/13/2010
Gold Warehouse Stocks: | 10,451,324 | +100,282 |
Silver Warehouse Stocks: | 116,340,983 | +785,223 |
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 | 1209.499 | 38,886,611 | US$48,072m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 120.36 | 3,869,631 | US$4,754m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 14.21 | 476,159 | US$562m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 47.23 | 1,518,342 | US$1,879m |
NASDAQ Dubai | Dubai Gold Securities | 0.155 | 4,976 | US$6m |
Note: Change in Total Tonnes from yesterday’s data: The LSE added 1.61 tonnes.
COMEX Gold Trust (IAU) Total Tonnes in Trust: 81.79 - No change from yesterday’s data.
Silver Trust (SLV) Total Tonnes in Trust: 9,191.37:+76.22 change from yesterday’s data.
The Miners:
Almaden’s (AAU) reporting standards, Aurizon’s (AZK) AGM results, Claude’s (CGR) first quarter results, Allied Nevada’s (ANV) assay results, ITH’s (THM) spin-out plans, Silvermex’s (SMR.V) drilling program, and Excellon’s (EXN.TO) first quarter profit were among the big stories in the gold and silver mining industry making headlines Friday.
WINNERS
1. Solitario | XPL +5.69% $2.60 |
2. Gammon | GRS+4.01% $8.04 |
3. US Gold | UXG+3.78% $4.12 |
LOSERS
1. Entree | EGI -5.56% $2.38 |
2. Taseko | TGB-5.52% $5.65 |
3. Nevsun | NSU-4.82% $2.96 |
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:
Adanac Molybdenum Corporation Monitor's Eighth Report - More
- May 14, 2010 | Item | ShareThis
Dia Bras Completes Equity Rights Offering - More
- May 14, 2010 | Item | ShareThis
Rye Patch Gold Corp. Engages Consultant to Promote Investor Relations - More
- May 14, 2010 | Item | ShareThis
Almaden Early Adopts International Financial Reporting Standards - "Almaden Minerals Ltd. (TSX:AMM - News)(AMEX:AAU - News) ("Almaden") announces that its application to early adopt International Financial Reporting Standards ("IFRS") under National Instrument 52-107 has been approved by the applicable Canadian Securities Administrators. The Company has chosen to early adopt IFRS and will commence reporting under these standards for the period beginning January 1, 2010, with a January 1, 2009 date of transition (the "Transition Date"). Comparative periods for fiscal 2009 will also be restated under IFRS." More
- May 14, 2010 | Item | ShareThis
Updated Resource for Bravo's Homestake Ridge, Drilling to Resume Mid June - More
- May 14, 2010 | Item | ShareThis
Bonaventure Enterprises Inc.: New Pass Project Resource Estimate Upgraded to 1,725,022 Au EQ - More
- May 14, 2010 | Item | ShareThis
Fortune Minerals releases first quarter 2010 results and reminder of Annual Meeting of Shareholders - More
- May 14, 2010 | Item | ShareThis
Frontline Gold Resignation of Director - More
- May 14, 2010 | Item | ShareThis
Black Hawk to Receive Additional Investment From European Financial Institution - More
- May 14, 2010 | Item | ShareThis
Aurizon Mines Ltd. announces Annual General Meeting results - "Aurizon Mines Ltd. (TSX:ARZ - News; AMEX:AZK - News) is pleased to report that all of the resolutions that shareholders were asked to consider at the Annual General Meeting held in Vancouver, B.C. on May 13, 2010, were approved, including the amendments to the Company's existing stock option plan, the adoption of an Amended and Restated Stock Option Plan (7% Rolling) (the "Amended and Restated Plan") and the approval of the unallocated entitlements thereunder, by a majority of votes cast at the Meeting." More
- May 14, 2010 | Item | ShareThis
Mandalay Resources announces mineral resources and reserves for its Costerfield gold-antimony mine and completion of an updated NI 43-101 report - More
- May 14, 2010 | Item | ShareThis
Golden Eagle Provides Update on Company Restructuring, Gold Bar Mill & Yukon-Nevada Lawsuit - More
- May 14, 2010 | Item | ShareThis
Avnel Gold Mining Limited (AVK: TSX) announces first quarter 2010 results - More
- May 14, 2010 | Item | ShareThis
Magellan Files NI 43-101 Compliant Preliminary Economic Assessment - More
- May 14, 2010 | Item | ShareThis
Silvermex Resources Ltd.: 3000 Meter Core Drilling Program to Commence on the San Marcial Silver Project - "Silvermex Resources Ltd. ("Silvermex") (TSX-V:SMR - News) is pleased to announce the planned commencement of a minimum 3,000 meter core drilling program at its San Marcial Silver project in southern Sinaloa, Mexico. The Company is also pleased to report on its recent investor relations initiatives and grant of 2,650,000 incentive stock options." More
- May 14, 2010 | Item | ShareThis
Excellon Reports 1st Quarter Profit of $549K - "Platosa continues to provide consistent and profitable operating performance for Excellon as evidenced by these results for the quarter ended March 31, 2010." commented Chris Hopkins, Excellon's Chief Financial Officer. "Profits and a growing cash position in the quarter were achieved in spite of slightly lower silver prices and an aggressive drilling program in the quarter. Given these steady ongoing results we continue to remain confident that 2010 will produce record production volumes and revenues in line with previous guidance." More
- May 14, 2010 | Item | ShareThis
Callinan Receives Net Profits Interest Payment from HudBay Minerals - More
- May 14, 2010 | Item | ShareThis
Glass Earth Gold Announces Closing of First Tranche of C$3M Private Placement - More
- May 14, 2010 | Item | ShareThis
New Dawn Mining Corp. Reports Financial Results For the Quarter Ended March 31, 2010 - More
- May 14, 2010 | Item | ShareThis
Claude Resources Inc. Reports First Quarter Results - "Claude Resources Inc. ("Claude" or the "Company") today announced first quarter production results of 9,221 ounces of gold, a 13 percent decrease over the 10,613 ounces produced during the same period in 2009. For the quarter ended March 31, 2010, the Company recorded a net loss of $0.2 million, or $0.00 per share after a $1.6 million non-cash recovery related to income tax benefits arising from the issuance of flow through shares during 2009. This compares to a net loss of $1.0 million in 2009, or $0.01 per share." More
- May 14, 2010 | Item | ShareThis
New Island Provides Update on Glover Island - More
- May 14, 2010 | Item | ShareThis
SLAM acquiring additional interest in gold properties - More
- May 14, 2010 | Item | ShareThis
Guinness Exploration Reports on Nantawa Project Site Inspection - More
- May 14, 2010 | Item | ShareThis
MDN Reports its Financial Results for the First Quarter - More
- May 14, 2010 | Item | ShareThis
Mega Uranium Ltd. Releases Unaudited Results for the Three and Six Months Ended March 31, 2010 - More
- May 14, 2010 | Item | ShareThis
Nautilus Minerals Announces Financial Results for Q1 2010 - More
- May 14, 2010 | Item | ShareThis
Nord Resources Announces Expiry of Forbearance Agreements with Nedbank - More
- May 14, 2010 | Item | ShareThis
Brazauro Releases Initial Geochemical Soil Sampling Results for Agua Branca Property in Brazil - More
- May 14, 2010 | Item | ShareThis
Brazauro Confirms Receipt of Final Exploration Permits for Agua Branca Property - More
- May 14, 2010 | Item | ShareThis
Harte Gold Reports Additional Significant Assay Results - More
- May 14, 2010 | Item | ShareThis
Candente Copper Completes Financing for Pre-Feasibility and Exploration - More
- May 14, 2010 | Item | ShareThis
Lundin Mining Corporation; Neves-Corvo Copper Mine: Industrial Issues Settled - More
- May 14, 2010 | Item | ShareThis
Allied Nevada Announces Initial Drilling at Its Hasbrouck Mountain Project Returns 110 Meters Grading 1.45 g/t Gold - "Allied Nevada Gold Corp. ("Allied Nevada" or the "Company") (TSX:ANV - News)(AMEX:ANV - News) is pleased to announce preliminary assay results from the initial core hole of a three core hole exploration program at its Hasbrouck Mountain project, located approximately five miles south of Tonopah, Nevada. Hole HSB10-001 intersected mineralization that outcrops at surface with 110 meters grading 1.45 g/t Au(1). Included in the 110 meter intercept are higher grade intervals including 11 meters grading 2.09 g/t Au, 14 meters grading 1.69 g/t Au, 5 meters grading 5.09 g/t Au and 5 meters grading 7.12 g/t Au. Silver assays have not yet been completed for this hole. As per the NI 43-101 technical report dated August 14, 2006, silver indicated resource grades, at a cutoff grade of 0.34 g/t, average 10.97 g/t." More
- May 14, 2010 | Item | ShareThis
International Tower Hill Plans to Undertake Spin-Out Transaction to Create Two Independent Companies - "The Board of Directors of International Tower Hill Mines Ltd. ("ITH" or the "Company") (TSX:ITH - News)(AMEX:THM - News)(Frankfurt:IW9 - News) has unanimously approved a proposal to undertake a spin-out transaction to segregate its assets into two separate and highly focused companies. Under the terms of the proposed transaction, ITH will retain all assets relating to the Livengood gold project in Alaska, an advanced stage project, together with approximately CAD 41 million in working capital. Corvus Gold Inc. ("Corvus") will hold all of ITH's other existing Alaska and Nevada assets and have approximately CAD 3 million in working capital. A condition of the closing of the transaction will be that Corvus obtains conditional approval for the listing of its common shares on a major Canadian stock exchange." More
- May 14, 2010 | Item | ShareThis
- Chris Mullen, Gold Seeker Report
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-- Posted 14 May, 2010 | |
