-- Posted 19 May, 2010 | | Source: SilverSeek.com
| Close | Gain/Loss |
Gold | $1192.70 | -$21.50 |
Silver | $18.13 | -$0.75 |
XAU | 172.53 | -3.48% |
HUI | 452.32 | -4.37% |
GDM | 1362.54 | -4.22% |
JSE Gold | 2459.33 | -33.82 |
USD | 86.30 | -0.84 |
Euro | 123.91 | +2.06 |
Yen | 109.22 | +0.69 |
Oil | $69.87 | +$0.46 |
10-Year | 3.359% | -0.027 |
T-Bond | 122.78125 | +0.09375 |
Dow | 10444.37 | -0.63% |
Nasdaq | 2298.37 | -0.82% |
S&P | 1115.05 | -0.51% |
The Metals:
Gold rose to see a gain of $6.05 at $1220.25 in late Asian trade, but it then fell off rather markedly for most of the rest of trade in London and New York and ended near its late session low of $1187.25 with a loss of 1.77%. Silver fell to as low as $17.929 by early afternoon in New York and ended with a loss of 3.97%.
Euro gold fell to about €967, platinum lost $82 to $1598, and copper dropped 7 cents to about $2.95.
Gold and silver equities fell over 5% by late morning before they rebounded slightly in afternoon trade, but they still ended with about 4% losses.
The Economy:
Report | For | Reading | Expected | Previous |
CPI | Apr | -0.1% | 0.1% | 0.1% |
Core CPI | Apr | 0.0% | 0.1% | 0.0% |
FOMC Minutes from the fed’s last meeting showed fed members “were in no rush to sell $1.1 trillion of mortgage-backed securities, with a majority preferring to wait until after the central bank starts raising interest rates.”
Loan demand to buy homes sinks to13-year low Reuters
Tomorrow at 8:30AM EST brings Initial Jobless Claims for 5/15 expected at 439,000 and at 10AM are Leading Indicators for April expected at 0.2% and the Philadelphia Fed survey for May expected at 20.7.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil rose a bit after the Energy Information Administration reported that crude inventories rose 200,000 barrels and gasoline inventories fell 300,000 barrels.
The U.S. dollar index fell as the euro bounced from yesterday’s new four-year low on hopes that Europe’s worst problems have passed.
Treasuries reversed early losses and turned higher as the Dow, Nasdaq, and S&P fell on continued worries about the impacts of Germany’s ban on some types of short selling.
Among the big names making news in the market today were Deere, Goldman Sachs, Target, and Sun Capital.
The Commentary:
“Dear Extended Family,
We live in market run by hedge funds like all other markets.
When momentum of gold appreciation slows the selling starts. When an uptrend line breaks, the slower computers come on with selling.
Fundamentally there is no change from the intact Western world economic downward spiral.
Technical damage has been done to gold which will work itself out. The reverse is that when the decline’s momentum contracts then the shorts are covered and the computers turn bullish.
This is the drama you have seen a million times.
Gold is the only insurance that can be purchased that will carry us whole to the other side of this economic madness.
Gold is going to $1650 and beyond. Dig a hole and pull a rock over top once again. Look out once a day until you see the downside momentum decelerate or a major bullish formation starting.
Stay the course.
Respectfully,”- Jim Sinclair, JSMineset.com
“We’ve very fast moving markets (but junior resources only move fast one way -down). The gold correction I envisioned last Wednesday night could be over if we can wash out here today in the $1,185 – $1,190 area.
The usual no-bid junior resource correction is upon us and while its always nail-biting, I’m sitting through it (and so should you if you followed my advice that any and all capital in this sector must be willing to be partially or totally lost). It’s during these declines that I definitely check to see if my wife is watching that TV show “Divorce Court”.”- Peter Grandich, Grandich Letter
“Dear CIGAs,
Score one for the bullion banks…
The capping effort at $1250 was enough to stall the upside long enough to get the usual suspects crowing about another top in gold and start selling. That turned the momentum oscillators bearish and out went the hedgies.
Based on the huge liquidation seen on the drop in yesterday’s open interest (over 21,000) plus today’s exodus of weak-handed longs, the market has seen a rather sizeable drop in the overall long side exposure. Since we are now approaching the rollover period when funds will move out of June and into August and even December gold, we might have to wait another couple of weeks before we get a serious effort to the upside (that is assuming the status quo in Europe does not change – it could worsen). The condition of the world’s financial system is so tenuous that it is not beyond the possibility of gold completely putting back on in one day what it took off during a previous one.
Once the rollovers are winding down, we can get a better view of things to come without the clutter caused by these technical maneuvers. Funds do not like to re-establish longs in a front month during a rollover period because unless they are willing to stand for delivery (something which would end the charade at the Comex in one week’s time), they simply have to take those brand new longs right back off and move them to the next month (August). That month is where the action is going to shift to in another week or so.
Personally, I would love for this market to go nowhere for a while and work sideways and cool things off a bit. That is the normal pattern in gold anyway – it runs higher on a strong leg upwards, backs down making all the top callers come out of the woodwork, works into a consolidation mode, and then breaks out into another thrust upward with the top callers then going long and getting stopped out on the next retracing consolidation move lower (that is when they get invited back on TV to tell everyone how good a gold trader they are!). Keep in mind that the real market in gold is the physical market and it takes a bit of time for people to become accustomed to a new and higher price level in gold. That is what a market in a consolidative trade does.
For those of you who take a longer term view of the gold market than the average 3 minute bar chart reader, remember what we have said here at this site since its inception – you do not make money trading gold by buying it on strength and selling out into weakness. You make money on gold by buying weakness and selling strength. Those of you looking to accumulate the metal for a safe haven, use hedge fund nonsense to your advantage and do not get discouraged by the public roosters who love doing nothing better but crowing about gold tops and announcing sales of their gold positions. We have seen enough of these people over the past 10 years that I have lost count of them. Each time they have done this, the same people have ended up recommending buying gold at precisely the wrong time. Sharp operators never announce what they are doing – PERIOD! Do not forget that nor the strategy of both SCALE down buying and SCALE up selling. Investors can just buy gold, crawl into a hole or go fly fishing or golfing, and sleep happily at night while the current monetary system in the West implodes inward on itself. There is no solution to the problems of the Western debt nightmare except default or devaluation.
The HUI just got slaughtered once again as the ratio trades continue to mangle the shares at the expense of bullion. It has fallen nearly 6% compared to a minor 1.9% correction in the bullion price. You can thank the inventors of the gold ETF’s for this setup. That device has siphoned off a very substantial portion of investment capital that otherwise would have flowed into the shares from those looking for exposure to gold whose charter forbids them from buying futures.
It failed to hold at 460, the rising 20 day moving average and now looks to have enough downside momentum to perhaps drop down towards the 439 level, this month’s low. It really does need to hold there to prevent a deeper correction towards 421 – 419. We will watch for a sign of a bottom in there.
I am still not exactly sure why the hedge fund crowd has algorithms doing this spread trade. I heard chatter that there was some thought that another large hedge fund operator who had a sizeable position in the shares was involved with the Goldman scandal associated with them pedaling stuff out their front door while they were shorting it out the back door and that such fund was going to have to liquidate its holdings in the shares but that does not explain the duration of this spread trade which has now been going on for some time. Eventually it will blow up in their face when we see a real frenzy for gold develop in this country as was recently the case in Europe where dealers were running out of inventory but until then, the shares will tend to lag the overall performance of bullion. One word is all you need to feel comfortable with a mining company – PROFITS – The higher the price of the metal the better the profits of companies with good properties or solid prospects of future profits.
Lumber and copper were both lower today – continuing their commentary on the state of the recovery. It is pretty funny noting the absence of the phrase, “V shaped recovery” of late is it not? Today’s foreclosure number was a shot of reality across the bow of the good ship “Fairy Tale”.
Bonds are higher today on weakness in the equity markets but sure are having trouble getting through that 123 area.
Crude oil is weaker again but looks like the selling might be getting ready to take a bit of a breather. It is at a 5 month low in price after all.
The euro needs to get over 12450 to spark some further short covering.”- Dan Norcini, More at JSMineset.com
The Statistics:
Activity from: 5/18/2010
Gold Warehouse Stocks: | 10,476,645 | -1,322 |
Silver Warehouse Stocks: | 117,221,356 | -903,574 |
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 | 1217.108 | 39,131,245 | US$46,748m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 121.39 | 3,902,856 | US$4,651m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 14.21 | 476,134 | US$545m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 46.01 | 1,479,105 | US$1,768m |
NASDAQ Dubai | Dubai Gold Securities | 0.155 | 4,976 | US$6m |
Note: Change in Total Tonnes from yesterday’s data: The LSE subtracted 0.32 tonnes and the JSE added 0.36 tonnes.
COMEX Gold Trust (IAU) Total Tonnes in Trust: 82.39: +0.60 change from yesterday’s data.
Silver Trust (SLV) Total Tonnes in Trust: 9,191.37 - No change from yesterday’s data.
The Miners:
Crystallex’s (KRY) dismissed appeal, Fronteer’s (FRG) new resource estimate, Midway’s (MDW) new President and Chief Operating Officer, and Randgold’s (GOLD) sold shares in Volta Resources were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Endeavour | EXK +2.82% $4.01 |
2. Richmont | RIC +0.87% $4.30 |
3. Freeport | FCX+0.50% $67.69 |
LOSERS
1. Entree | EGI -11.47% $1.93 |
2. Exeter | XRA-10.55% $6.53 |
3. Gammon | GRS -9.62% $7.05 |
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:
Detour Gold Adds to Mine Development Team for Its Detour Lake Project in Northern Ontario - More
- May 19, 2010 | Item | ShareThis
Trelawney Signs Letters of Intent on Two Properties Near Chester Project With Crown Minerals - More
- May 19, 2010 | Item | ShareThis
Amseco Increases to $324,000 Private Placement Announced on May 18, 2010, From $300,000 - More
- May 19, 2010 | Item | ShareThis
Hana Files NI 43-101 - More
- May 19, 2010 | Item | ShareThis
Continental Gold Ltd. Appoints Mark Moseley-Williams as Senior Vice President of Operations - More
- May 19, 2010 | Item | ShareThis
Lateegra Prepares for Drilling - More
- May 19, 2010 | Item | ShareThis
Avion Expansion Schedule on Track - More
- May 19, 2010 | Item | ShareThis
Commander Provides Baffin Exploration Update - More
- May 19, 2010 | Item | ShareThis
Crystallex Reports Noteholders' Appeal Dismissed - "Crystallex International Corporation (TSX:KRY - News) (AMEX:KRY - News) reported today that the Court of Appeal for Ontario upheld the December 16, 2009 decision of Justice Newbould of the Ontario Superior Court and dismissed the noteholders' appeal of Justice Newbould's order." More
- May 19, 2010 | Item | ShareThis
Mindoro Agata Project Drilling Intersects Thick, High-Grade Nickel Laterite - More
- May 19, 2010 | Item | ShareThis
Apoquindo Minerals Intersects 66m of 1.03% Cu at Zafranal - More
- May 19, 2010 | Item | ShareThis
MAX completes drill program at Table Top gold project; Drilling commences at Diamond Peak gold/zinc project in Nevada - More
- May 19, 2010 | Item | ShareThis
Fancamp Acquires Red Paint Lake Property - More
- May 19, 2010 | Item | ShareThis
Geophysics Completed at Fortune River's Highland Project, Drilling Planned for July - More
- May 19, 2010 | Item | ShareThis
Crown Minerals Inc. Announces Completion of Financing With the MineralFields Group - More
- May 19, 2010 | Item | ShareThis
Golden Peaks Cuts 45 Meters of 3.00 g/t Gold - More
- May 19, 2010 | Item | ShareThis
Mindoro Agata Project Drilling Intersects Thick, High-Grade Nickel Laterite - More
- May 19, 2010 | Item | ShareThis
QUADRA and FNX Shareholders Approve Merger - More
- May 19, 2010 | Item | ShareThis
Belmont Intersects 15.0 m-2.476 g/t Au Including 1.5 m Assaying 17.87 g/t Au at Lumby/Bufo Property Northeast of the Brett Resources Inc. Hammond Reef Deposit - More
- May 19, 2010 | Item | ShareThis
High Desert Gold Reports Strong Initial Exploration Results at San Antonio Gold Project, Sonora, Mexico - More
- May 19, 2010 | Item | ShareThis
Cartier Resources Inc. Announces Closing of a $745,000 Financing - More
- May 19, 2010 | Item | ShareThis
Globex Well Positioned in Gold Play - More
- May 19, 2010 | Item | ShareThis
Gold Port Resources: Sampling Confirms and Expands Gold Mineralized Zone at Groete Creek, Drill Program Planned - More
- May 19, 2010 | Item | ShareThis
Wide interest in Ivanhoe project stake-exec - "Major mining firms have shown strong interest in buying a stake in the Oyu Tolgoi copper-gold project in Mongolia, majority owner Ivanhoe Mines (IVN.TO) said on Wednesday.
"We've had a lot of interest, we've had a lot of interest from other majors," Deputy Chairman Peter Meredith said on the sidelines of the World Mining Investment Congress." More
- May 19, 2010 | Item | ShareThis
Lluvia de Oro & La Jojoba Mineral Resources and Reserves - More
- May 19, 2010 | Item | ShareThis
American Bonanza Acquires Mill for the Copperstone Gold Mine - More
- May 19, 2010 | Item | ShareThis
Houston Lake Mining Intersects 32.82 g/t Over 0.95 Metres of New Horizon on Dubenski Gold Property - More
- May 19, 2010 | Item | ShareThis
Standard Gold Letter to Shareholders - More
- May 19, 2010 | Item | ShareThis
PBX Announces 267 Metres at 0.57% Copper From Drilling Program at Copaquire Property, Chile - More
- May 19, 2010 | Item | ShareThis
Tyhee Development Corp Reports a 200 Metre Extension of Gold Mineralization on the Clan Lake Main Zone, Yellowknife Gold Project, NWT, Canada - More
- May 19, 2010 | Item | ShareThis
Aldrin Ready to Drill 3 Gold Projects in the Yukon - More
- May 19, 2010 | Item | ShareThis
Grayd Reports New Discovery at Tarachi - More
- May 19, 2010 | Item | ShareThis
Lake Victoria to Conduct Pre-Drill Exploration at Singida Gold Project to Determine Undiscovered Sub Surface Gold Vein Sets and Economic Resource - More
- May 19, 2010 | Item | ShareThis
Silver Falcon Mining, Inc. (SFMI) Updates Diamond Creek Mill Facility Gold Production Operations - More
- May 19, 2010 | Item | ShareThis
Crocodile Gold Announces AGM Results - More
- May 19, 2010 | Item | ShareThis
New Guinea Gold: Sinivit Mine Update - More
- May 19, 2010 | Item | ShareThis
Golden Chalice Resources Receives NI 43-101 Resource Estimate for Langmuir W4 Nickel Project - More
- May 19, 2010 | Item | ShareThis
Constantine Acquires Trapper Lake Gold Property in Northern British Columbia - More
- May 19, 2010 | Item | ShareThis
Ventana Announces Drill Results from La Bodega Zone-4.8 Metres of 443.8 Grams Per Tonne Gold Intercepted - More
- May 19, 2010 | Item | ShareThis
Extorre Lists on OTCQX Market in the USA - More
- May 19, 2010 | Item | ShareThis
Golden Chalice Resources Receives NI 43-101 Resource Estimate for Langmuir W4 Nickel Project - More
- May 19, 2010 | Item | ShareThis
Benton to Drill Kingurutik Nickel Project - More
- May 19, 2010 | Item | ShareThis
Pacific Bay Minerals Ltd.: Strong Rare Earth Values at Chacho Show High Ratio of Heavy REE - More
- May 19, 2010 | Item | ShareThis
Amador Gold Corp Intersects 0.88% Nickel 1.11% Copper Over 9.2 Meters at Loveland's Cominco Zone, Discovers Significant Mineralization in First Hole - More
- May 19, 2010 | Item | ShareThis
Spur Ventures Announces Extension of the Shukongping Mining License - More
- May 19, 2010 | Item | ShareThis
Marifil Receives Extension for San Roque Payment - More
- May 19, 2010 | Item | ShareThis
Alto Ventures Ltd.: Exploration Work Commences on the Coldstream Property, Ontario - More
- May 19, 2010 | Item | ShareThis
Anglo Swiss Resources Inc. Options Mammoth Copper-Gold Property - More
- May 19, 2010 | Item | ShareThis
Ironwood Gold to Commence Survey of Haystack Property in Nevada - More
- May 19, 2010 | Item | ShareThis
Great Western Minerals Group and Cornerstone Capital Resources Inc. Sign Letter of Intent - More
- May 19, 2010 | Item | ShareThis
Advanced Explorations Inc. Closes First Tranche of Private Placement for $2,023,900 - More
- May 19, 2010 | Item | ShareThis
NEVADO Launches Gold Exploration Program Following the Significant and Favourable 4,500 Line-Kilometres Airborne Geophysical Survey - More
- May 19, 2010 | Item | ShareThis
Source Exploration Corp. Completes $551,250 Private Placement - More
- May 19, 2010 | Item | ShareThis
Kiska Discovers New Porphyry Systems at Whistler Project, Alaska - More
- May 19, 2010 | Item | ShareThis
Cedar Mountain Announces $2 Million Private Placement Offering - More
- May 19, 2010 | Item | ShareThis
Foundation Resources Commences Work Program at Coldstream - More
- May 19, 2010 | Item | ShareThis
Consolidated Thompson Completes Feasibility Study to Increase Production From 8.0 to 16.0 Million Tonnes of Iron Ore Concentrate Per Year at Bloom Lake - More
- May 19, 2010 | Item | ShareThis
Plexmar Resources Inc.: Malin Plant Update - More
- May 19, 2010 | Item | ShareThis
Probe Mines Provides Update on McFauld's Lake Exploration - More
- May 19, 2010 | Item | ShareThis
AuEx Ventures, Inc.: Long Canyon Gold Resource Grows - More
- May 19, 2010 | Item | ShareThis
FNX's Renames the Levack Footwall Deposit the Morrison Deposit - More
- May 19, 2010 | Item | ShareThis
American Manganese Reports 9.15 Meters (30 Feet) of Manganese Grading 10% in Hole #AP10-35 - More
- May 19, 2010 | Item | ShareThis
Canaco Announces 94.14% Gold Recovery From Preliminary Metallurgical Test Work at the Magambazi Gold Discovery - More
- May 19, 2010 | Item | ShareThis
Fronteer Gold Reports New Resource Estimate for Long Canyon Gold Deposit, Nevada - "Fronteer Gold (TSX:FRG - News)(AMEX:FRG - News) reports that a new resource estimate for the Long Canyon deposit shows a meaningful increase in resource size and continues to showcase the high-grade nature of this new Nevada gold deposit." More
- May 19, 2010 | Item | ShareThis
Midway Hires Kenneth A. Brunk - "Midway Gold Corp. ("Midway") is pleased to announce that it has hired Kenneth A. Brunk as President and Chief Operating Officer. Mr. Brunk will provide the leadership and management necessary to guide the Company through the steps to develop the Pan gold project in Nevada to production." More
- May 19, 2010 | Item | ShareThis
Randgold Resources Announces Disposal of 5,000,000 Common Shares in Volta Resources Inc - "Randgold Resources (NASDAQ:GOLD - News) sold 5 million common shares in Volta Resources Inc ("Volta") at a price of CAD$1.59 per common share on Wednesday 12 May 2010. The total proceeds payable to Randgold were CAD$7.95 million (US$7.80 million). The cash proceeds received will be used for general corporate purposes." More
- May 19, 2010 | Item | ShareThis
- Chris Mullen, Gold Seeker Report
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-- Posted 19 May, 2010 | |
