-- Posted 26 May, 2010 | | Source: SilverSeek.com
| Close | Gain/Loss |
Gold | $1213.10 | +$16.10 |
Silver | $18.29 | +$0.48 |
XAU | 170.74 | -0.27% |
HUI | 446.58 | -0.01% |
GDM | 1349.39 | -0.07% |
JSE Gold | 2588.67 | +111.09 |
USD | 87.22 | +0.68 |
Euro | 121.88 | -1.74 |
Yen | 111.21 | +0.47 |
Oil | $71.51 | +$2.76 |
10-Year | 3.218% | +0.060 |
T-Bond | 124.46875 | -0.78125 |
Dow | 9974.45 | -0.69% |
Nasdaq | 2195.88 | -0.68% |
S&P | 1067.95 | -0.57% |
The Metals:
Gold traded about 0.5% higher in Asia and rose to as high as $1214.75 by about 6AM EST in London before it dropped back to around $1210 in early New York trade, but it then rose to a new session high of $1216.40 by about 11AM EST and ended with a gain of 1.35%. Silver climbed to as high as $18.317 in London before it also pared its gains a bit, but it then rose to a new high of $18.39 by late morning in New York and ended with a gain of 2.7%.
Euro gold rose to about €992, platinum gained $38 to $1525, and copper gained 4 cents to about $3.07.
Gold and silver equities rose over 2% by midmorning, but they then fell back off for most of the rest of trade and ended slightly lower.
The Economy:
Report | For | Reading | Expected | Previous |
Durable Orders | Apr | 2.9% | 1.5% | 0.0% |
Durable Orders ex Trans. | Apr | -1.0% | 0.7% | 4.8% |
New Home Sales | Apr | 504K | 425K | 439K |
Tomorrow at 8:30AM EST brings Initial Jobless Claims for 5/22 expected at 455,000, first quarter GDP expected at 3.3%, and the GDP Deflator expected at 0.9%.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil added to early gains and ended over 4% higher after the Energy Information Administration reported that crude inventories rose 2.4 million barrels, gasoline inventories fell 200,000 barrels, and distillates fell 300,000 barrels.
The U.S. dollar index rose as the euro fell again on lingering fears that European debt problems will hurt economic growth in the Eurozone.
Treasuries fell on better than expected economic data and today’s $40 billion 5-year note auction that drew a yield of 2.13% with a bid to cover of 2.71.
The Dow, Nasdaq, and S&P rose in early trade on optimism about the economy, but all three indices fell back off in afternoon trade and ended notably lower on apprehension over tomorrow’s trade.
Among the big names making news in the market today were Toll Brothers, S&P, AIG, and Ambac Financial.
The Commentary:
“Dear CIGAs,
Today was “Back to the Reflation Trade, Part Deux”. Hedge fund money came out of bonds and into just about everything else. Tomorrow? Who knows?
For today, it did not matter whether the Dollar was up and the Euro was down – all that mattered was that equities were higher and risk appetite was restored as can be seen by the fall in the Yen alongside the bonds.
Gold continues to get a firm bid and was able to punch through the 10 day moving average setting off some light buy stops as well as attracting some new buying. The chart continues to look constructive with last Friday’s spike down towards $1165 now being confirmed as good technical support on the downside. Gold’s ability to get back above $1200 after such a rather small retracement in price is very revealing for it shows that there are eager buyers waiting on the downside to acquire the metal. I am especially interested in seeing this Friday’s COT data to see if those Swap Dealers further reduced their short side exposure. I suspect that they did and are doing more. That could very well explain why the metal is bouncing rather quickly. If this side of the short camp is so eager to reduce their exposure that they are not leisurely doing any buying into fund long liquidation but are instead snatching up their offers with great alacrity, then these same shorts are in effect competing with one another to get out. Of course, the usual culprits are still attempting to keep the price under wraps on any upside moves however but it is the Swap Dealers that have me intrigued. Either way, the resilience of the metal is impressive.
You’ll note on the chart that the horizontal blue line entitled, “short term resistance” was right near the session high. That horizontal line also intersects the upsloping red trendline. That red line served to hold price on previous dips to the downside and is now serving to hold it on the upside. That is why we now need a push back above this line on the pit close to set the market up for a push to $1240.
The action in the HUI is constructive also but I want to see this index get back above the high of last Tuesday’s big down day near 472 before the miners have a shot at testing the previous high near 500. Further consolidation above yesterday’s low would be constructive.
Strangely enough, while analysts were quick to point to the robust New Home Sales data as further evidence of a strengthening economy, the key Lumber Market at the CME dropped sharply lower as it continues to collapse in price. Something simply does not add up. Either the Lumber market has it all wrong or the home numbers are a one hit wonder.
If the guys that trade lumber felt that home building was making a comeback and on the mend, lumber prices would not have hit limit down.
The other bellwether market, copper was up today but considering the extent to which it has been beaten to a bloody pulp of late, it is not surprising that the housing number would give the shorts a reason to ring the cash register. I cannot get excited about the copper market until it gets back above $3.26. It might have bottomed out under $3.00 but that does not necessarily mean it is about to embark on a bull run. It must first repair the severe chart damage before that occurs. Copper is drawing whatever strength it has from prospects of future demand out of China and not necessarily from the US housing market which is perhaps the reason that while it is higher today, it is not particularly impressive.
Either way, this housing number has me scratching my head wondering exactly what is going on that two key futures markets are not responding to the data as one would have expected given all the hoopla surrounding the number.
That brings me to bonds – they are seeing a reversal of safe haven flows which judging from the housing data must not be making the feds happy. After all, watching mortgage rates falling to current levels is what has them all so revved up – where else can you print lots of money and have interest rates drop lower to spark the real estate market?
I still marvel how programmed so many investors are to stash money into US Treasuries when they get nervous. At one time that made sense but now, in my view, it is the height of folly. Forget the fact that the US bond market is so liquid; it is the fact that they are creating gazillions of these IOU’s. I read today that the US National Debt is now above $13 TRILLION giving the US a debt to GDP ratio over 90%. This is complete insanity and yet we have investors stupid enough to actually believe that a promise to repay this debt makes them a safe haven. What are these people drinking? At the rate this debt is growing, the US is going to look like a banana republic by 2015.
What is that saying, “Those whom the gods intend to destroy, they first make mad”. Madness is perfect word to describe this kind of indebtedness.
Crude oil popped higher today on the back of the reflation trade but in all honesty, gold has not been paying much attention to the price level of crude recently. A rising crude oil price is normally constructive for gold as it feeds into the inflation play but even as crude prices have fallen, gold has still been rising.
The S&P is getting a technical bounce today following through from yesterday’s late session rally off an important technical support level. You already have guys talking about a double bottom formation. The general public however are very suspect of the stock market right now after all the wild gyrations and near free falls of late. It has become an arena for the hedgies to chew each other up alongside the day traders and their 3 minute bar charts.”- Dan Norcini, More at JSMineset.com
GATA Posts:
GATA figures in forthcoming DVD movie, 'Why Gold and Silver'
Franco Nevada's Pierre Lassonde interviewed by King World News
Zero Hedge has best fanfare for Sprott gold trust's plan to buy 6 more tonnes
The Statistics:
Activity from: 5/25/2010
Gold Warehouse Stocks: | 10,736,251 | +127,913 |
Silver Warehouse Stocks: | 117,421,969 | -639,170 |
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 | 1267.322 | 40,745,654 | US$49,367m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 121.25 | 3,898,174 | US$4,722m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 14.21 | 476,098 | US$554m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 45.64 | 1,467,272 | US$1,758m |
NASDAQ Dubai | Dubai Gold Securities | 0.155 | 4,975 | US$6m |
Note: Change in Total Tonnes from yesterday’s data: The LSE added 0.08 tonnes and the JSE added 0.36 tonnes.
COMEX Gold Trust (IAU) Total Tonnes in Trust: 83.00 - No change from yesterday’s data.
Silver Trust (SLV) Total Tonnes in Trust: 9,191.37 - No change from yesterday’s data.
The Miners:
Aurizon’s (AZK) optioned property, Timberline’s (TLR) court approved plan of arrangement with Staccato, Gold Fields’ (GFI) carbon trading, Hecla’s (HL) adjourned portion of the annual meeting, Kimber’s (KBX) exploration update, Minco Silver’s (MSV.TO) appointment, and U.S. Silver’s (USA.V) drill results were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Solitario | XPL +8.96% $2.31 |
2. Mag Silver | MVG+5.16% $6.52 |
3. Richmont | RIC +4.82% $5.00 |
LOSERS
1. Mines MGMT | MGN-4.82% $2.17 |
2. Paramount | PZG -4.52% $1.48 |
3. NovaGold | NG -3.31% $7.02 |
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:
Capstone Mining Sponsors Yukon Hospital Foundation's Chair-ity Live Art Auction - More
- May 26, 2010 | Item | ShareThis
SIRIOS Resources Inc.: Escale Property Sold to Virginia Mines Inc. - More
- May 26, 2010 | Item | ShareThis
Centurion Minerals Increases Private Placement by One Million Units - More
- May 26, 2010 | Item | ShareThis
Acero-Martin Exploration Inc. Announces Commencement of 2010 Work Program on its Red Mountain Project in the Yukon - More
- May 26, 2010 | Item | ShareThis
Alix Negotiating to Expand Gold Property in Nunavut - More
- May 26, 2010 | Item | ShareThis
Victoria Joint Venture 2010 Drilling Plans - More
- May 26, 2010 | Item | ShareThis
Quaterra Accelerated Warrants Exercised - More
- May 26, 2010 | Item | ShareThis
Colossus Minerals Inc. Hires Luiz Carlos Celaro to Manage Mine Development at Serra Pelada - More
- May 26, 2010 | Item | ShareThis
Strait Gold Expands Geophysical Surveys at Alicia Project - More
- May 26, 2010 | Item | ShareThis
Sego Drills 27.43 metres of 0.42% Copper 0.3 g/t Gold 1.45 g/t Silver(includes 3.05 m of 1.67%% Cu 1.16 g/t Au 3.9 g/t Ag) at Miner Mountain Granby Zone - More
- May 26, 2010 | Item | ShareThis
i-minerals inc.: Drilling of Kaolinite - Halloysite - Quartz - K-spar Targets Underway - More
- May 26, 2010 | Item | ShareThis
Fire River Gold Corp. Previously Announced Non-Brokered Private Placement Oversubscribed - More
- May 26, 2010 | Item | ShareThis
Australia to lessen impact of resources tax-paper - "The Australian government is planning to dampen the impact of its planned resources tax by lifting the threshold of where it would kick in, The Australian newspaper said on its website on Wednesday." More
- May 26, 2010 | Item | ShareThis
White Canyon Uranium Adds New Utah Based Director - More
- May 26, 2010 | Item | ShareThis
Yorbeau Intersects 33 Metres of Gold Mineralization With Thickest Interval to Date at the Rouyn Property - More
- May 26, 2010 | Item | ShareThis
Paget Minerals Acquires Cu-Au-Mo Properties From Pembrook Mining - More
- May 26, 2010 | Item | ShareThis
Klondike Silver Corp. Commences 2010 Spring/Summer Regional Exploration Program in Silvana Silver Camp - More
- May 26, 2010 | Item | ShareThis
European Goldfields Limited - Update on Certej permitting appointment of Senior Independent Non Executive Director - More
- May 26, 2010 | Item | ShareThis
Decade Resources Ltd.: Red Cliff Drilling Started - More
- May 26, 2010 | Item | ShareThis
Mountain Boy Minerals Ltd.: Red Cliff Drilling Started - More
- May 26, 2010 | Item | ShareThis
Blue Note Mining Dismayed by Recent Actions of Gold Hawk Resources Management - More
- May 26, 2010 | Item | ShareThis
Fancamp Exploration Update - More
- May 26, 2010 | Item | ShareThis
ATAC Resources Ltd. Announces the Commencement of 2010 Drilling and Exploration at Its Rau Gold Project in Yukon - More
- May 26, 2010 | Item | ShareThis
Rocmec Technologies Presented on the Internationale Scene - More
- May 26, 2010 | Item | ShareThis
SAfrica's Malema seeks mine nationalisation in 2012 - "Julius Malema, the outspoken youth leader of South Africa's ruling ANC, said nationalisation of mines was being discussed by the party's top decision-making organ and could be adopted as policy in 2012." More
- May 26, 2010 | Item | ShareThis
Apoquindo Minerals Inc. Reports Progress of the Antakena Mining Joint Venture, Copper Oxide Project, Northern Chile - More
- May 26, 2010 | Item | ShareThis
Valterra and Tosca Table 2010 Exploration Plan for Swift Katie - More
- May 26, 2010 | Item | ShareThis
Duncastle Announces 90% Gold Recovery in Metallurgical Tests for its Yankee-Dundee Project - More
- May 26, 2010 | Item | ShareThis
Shea Creek Emerges as Largest Undeveloped Uranium Resource in the Athabasca Basin - More
- May 26, 2010 | Item | ShareThis
Silver Falcon Mining, Inc.'s (SFMI) Employees Receive MSHA Certification; Updates Mill Site Improvements and Transports - More
- May 26, 2010 | Item | ShareThis
Rodinia Minerals Inc. Defines 2.5 km by 4 km High-Grade Lithium-Potash Zone Near Surface at Salar De Diablillos Through Auger Drilling - More
- May 26, 2010 | Item | ShareThis
NioGold Grants Option to Geomega on Montviel and Pump Lake Carbonatites - More
- May 26, 2010 | Item | ShareThis
Alto Starts Summer Program at Miner Lake, Beardmore-Geraldton Gold Belt, Ontario - More
- May 26, 2010 | Item | ShareThis
Everton Announces the Beginning of Trading for Focus Metals Inc. on the TSX Venture and the appointment of Dan Hachey to the Board - More
- May 26, 2010 | Item | ShareThis
Solitaire Minerals Corp. is Creating a U.S.A Subsidiary to Primarily Hold Metallurgical Coal Leases - More
- May 26, 2010 | Item | ShareThis
Platinex Commences Drill Program at Shining Tree Property - More
- May 26, 2010 | Item | ShareThis
Azimut and Aurizon sign a Letter of Intent for the Rex South Property (Gold-Copper-Rare Earth Elements), Nunavik, Quebec - More
- May 26, 2010 | Item | ShareThis
Liberty Silver Advances Geophysics Program at Trinity Silver Project in Nevada - More
- May 26, 2010 | Item | ShareThis
Rockridge Begins Drilling at Fatou Gold Project, Mali - More
- May 26, 2010 | Item | ShareThis
Moly Mines Company Update - More
- May 26, 2010 | Item | ShareThis
Andean American Mining Corp.: Invicta Project Optimized Feasibility Study Audit Completed - More
- May 26, 2010 | Item | ShareThis
Kria Resources Drill Program at Halfmile Lake Project Returns 29.25 Metres of 6.87% Zinc, 2.23% Lead, 52.01 g/t Silver and 0.86 g/t Gold - More
- May 26, 2010 | Item | ShareThis
Bellhaven Hires Vice President of Exploration and General Country Manager for Colombia - More
- May 26, 2010 | Item | ShareThis
Qiao Xing Universal to Acquire a Lead-zinc Mining Company in Inner Mongolia - More
- May 26, 2010 | Item | ShareThis
Fjordland Exploration Inc.: Gold Fields Granted Option on Woodjam South Property, BC - More
- May 26, 2010 | Item | ShareThis
Canadian Shield Receives Initial Colpayoc Inferred Gold Resource Estimate, Peru - More
- May 26, 2010 | Item | ShareThis
Centamin Egypt Limited Progress Update - More
- May 26, 2010 | Item | ShareThis
Arco Signs Long-Term Property Access Agreement - More
- May 26, 2010 | Item | ShareThis
Universal Gold Mining Corp. Announces Initial Closing of Private Placement - More
- May 26, 2010 | Item | ShareThis
Gold Fields Granted Option on Woodjam South Property, BC - More
- May 26, 2010 | Item | ShareThis
Hecla Adjourns Portion of Its Annual Meeting until June 18, 2010 - "Hecla Mining Company (NYSE:HL) today announced that it adjourned a portion of the annual meeting of shareholders on Proposal 3 until June 18 to allow the holders of a majority of outstanding shares of common stock to vote on the matter. All other matters before the shareholders were completed at the meeting on May 21. The proposal concerns the adoption of Hecla’s 2010 Stock Incentive Plan and the reservation of 20 million shares for the plan." More
- May 26, 2010 | Item | ShareThis
Aurizon Options Azimut's Rex South Property - "Aurizon (TSX:ARZ; AMEX:AZK) is pleased to announce the signing of a letter of intent with Azimut Exploration Inc. (TSX.V: AZM) ("Azimut"), regarding Azimut's Rex South property, in Nunavik, Quebec." More
- May 26, 2010 | Item | ShareThis
Kimber updates exploration activities at Monterde gold-silver and Pericones silver properties - "Kimber Resources Inc. (NYSE Amex:KBX, TSX:KBR) announces that permits to drill have now been received for three new areas of mineralization discovered at the Company's Monterde gold-silver project in Mexico, and renewed for the known deposits of Carmen, Veta Minitas and Carotare, which host all the currently defined mineral resources at Monterde. Drill results have also been received for the recent drill program conducted on the Plaza de Gallos target at Pericones." More
- May 26, 2010 | Item | ShareThis
Court Approves Plan of Arrangement for Timberline's Acquisition of Staccato Gold Resources - "Timberline Resources Corporation (NYSE Amex:TLR) ("Timberline") announced today that Staccato Gold Resources Ltd. (TSX-V:CAT - News) ("Staccato") has obtained the Final Order from the Supreme Court of British Columbia approving the proposed acquisition of Staccato by Timberline." More
- May 26, 2010 | Item | ShareThis
Minco Silver Appoints VP of Operations and President of Foshan Minco Fuwan Mining Co. Ltd. - "Minco Silver Corporation (the "Company" or "Minco Silver") (TSX:MSV - News) is pleased to announce that Dr. Dianmin Chen has been appointed as Vice President of Operations for Minco Silver and President of Foshan Minco Fuwan Mining Co. Ltd. Dr. Chen will be based at the Fuwan Mine site located in Gaoming, Guangdong Province, China, and will be in charge of the construction and operation of the Fuwan Silver Project." More
- May 26, 2010 | Item | ShareThis
Gold Fields Pioneers Carbon Trading in the Gold Industry - "Gold Fields Limited (Gold Fields) (JSE, NYSE, NASDAQ Dubai: GFI) is set to become the world's first gold mining company to sell Certified Emissions Reductions (CERs), the financial securities used to trade carbon emissions." More
- May 26, 2010 | Item | ShareThis
U.S. Silver Drilling Proves High-grade Ore Extensions - "U.S. Silver Corporation (TSX-V: USA, OTCQX: USSIF, Frankfurt: QE2) (“U.S. Silver” or “the Company”) is pleased to announce positive results from underground diamond drilling indicating potential for higher-grade silver resources at the Company’s Galena mine near Wallace, Idaho." More
- May 26, 2010 | Item | ShareThis
- Chris Mullen, Gold Seeker Report
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-- Posted 26 May, 2010 | |
