Gold Seeker Weekly Wrap-Up: Gold and Silver End Barely Lower on the Week

Please Note: There will be no Gold Seeker reports next week. The Gold Seeker report will return on Tuesday, July 6^th.

	Close	Gain/Loss	On Week
Gold	$1255.30	+$10.60	-0.11%
Silver	$19.10	+$0.41	-0.05%
XAU	185.12	+3.61%	-0.27%
HUI	492.93	+3.49%	-0.16%
GDM	1486.88	+3.42%	-0.25%
JSE Gold	2589.70	+21.04	-0.13%
USD	85.28	-0.47	-0.35%
Euro	123.88	+0.55	+0.06%
Yen	112.01	+0.35	+1.67%
Oil	$78.86	+$2.35	+2.18%
10-Year	3.113%	-0.010	-3.41%
Bond	125.34375	+0.3125	+0.70%
Dow	10143.81	-0.09%	-2.94%
Nasdaq	2223.48	+0.27%	-3.74%
S&P	1076.59	+0.27%	-3.66%

Gold rose as much as $13.59 to as high as $1258.29 by early afternoon in New York before it fell back off a bit in the last hour of trade, but it still ended with a gain of 0.85% and ended just $1.35 from last Friday’s all-time closing high. Silver climbed to as high as $19.13 before it also dropped back a bit, but it still ended with a gain of 2.19%.

Euro gold rose to almost €1014, platinum gained $8 to $1567.50, and copper gained 9 cents more to about $3.09.

Gold and silver equities rose throughout most of trade and ended with almost 4% gains.

Report	For	Reading	Expected	Previous
GDP	Q1	2.7%	3.0%	3.0%
GDP Deflator	Q1	1.1%	1.0%	1.0%
Michigan Sentiment	Jun	76.0	75.5	75.5

Next week’s economic highlights include Personal Income and Spending and PCE Prices on Monday, the Case-Shiller 20-city Index and Consumer Confidence on Tuesday, ADP Employment and Chicago PMI on Wednesday, Initial Jobless Claims, Construction Spending, the ISM Index, and Pending Home Sales on Thursday, and June’s jobs data on Friday.

Oil climbed towards $80 a barrel on worries over a developing storm in the Caribbean that may move toward oil facilities in the Gulf of Mexico.

Treasuries rose on the worse than expected GDP report that increased worries over economic growth.

The U.S. dollar index fell as the Dow, Nasdaq, and S&P shrugged off the poor GDP data and ended near unchanged on the financial regulation deal reached this morning by House and Senate members that was not as onerous as many had speculated it would be. Attention now turns to this weekend’s G-20 summit.

Among the big names making news in the market Friday were RIM, BP, KB Home, and Oracle.

I mentioned in one of my earlier posts this week that bulls would need a Herculean effort to blunt the effects of Monday’s big downside reversal day. Guess what – they got exactly that!

In one of the more remarkable displays of gritty determination and tenacity that the gold market has seen since it first began its decade long bull market, the longs have completely negated the bearish downside reversal day pattern that emerged on the charts after Monday’s significant sell off from a new record high price. This simply does not happen very often, in any market for that matter, and has never occurred in gold since 2001. If you are a short, you have to be reeling in stunned disbelief. There are serious buyers at work in gold.

This performance is not merely impressive (that is too mild of a word), it is stupendously rare! Again, at the risk of beating a dead horse, the technical action in gold is telling us that the character of the market has completely changed from the pattern that we have grown accustomed to seeing the past 9 years and has now taken on a life of its own. This is acting like a market that wants to go higher, considerably higher.

To do that however, it now needs to take out the $1,265 level and hold that level for at least a 24 hour period. If it does, it is on its way to $1,280 – $1,285 for starters.

With open interest continuing to hover around 600,000 it is evident that the bulls did not engage in a mass exodus from the market after Monday’s significant drop lower but instead dug in their heels. That alone was enough to force the shorts to begin covering; it was also enough to bring in some new buying as well. Some would-be bulls sitting on the sidelines after Monday’s session noticed the price action and jumped back into the fray. The result – gold climbed all the way back from its low of the week and actually moved higher than last week’s close during today’s session.

Not only did the Comex gold market see a remarkable turnaround, the mining shares put on a spectacular showing almost completely erasing the damage down on Monday as well. The HUI dropped briefly below the rising 10 day moving average on its daily chart on Wednesday of this week but the rebounded during that session and has steadily risen since. It is back within striking distance of this week’s high just shy of 496, which if the bears are unable to hold, will set the shares up for a quick rise to above 500.

Outside market factors were not much of an influence on gold today as the equity markets were relatively quiet for a change as were the Forex markets. That is what makes the strong move up in gold more significant. Again, it is trading on its own merits – something which is contributing to the change in investor psychology towards this market. Investors want to own the metal – period!

Crude oil was higher today, as was natural gas so we had energy prices moving upward but I do not think there was much influence from this side of things in gold. It never hurts gold to have higher energy costs but the yellow metal has been working higher this week even as crude has moved lower for the last three days, excluding today, so that cannot be the factor behind its move back towards $1,260.

Bonds also were higher in a continuation of the safe haven bid that we have seen in that pit for most of the week but then again copper was sharply higher so if risk trades were being shunned, copper evidently did not get the message.

The last two weeks have not been kind to the US Dollar with it moving down from 89 to near 86. It is still above the rising 10 week moving average on its weekly chart but momentum indicators are turning lower. Bulls will have to reassert themselves soon to prevent a wave of long liquidation that could take price down as low as 83.70 or so.

If there is anything of significance in today’s COT report, I will publish it at the site today or tomorrow.

1. EC members terrified by the power of OTC derivatives to destroy national bond markets are running scared. The strategy is twofold. Intervention at $1.19 to $1.20 in the euro and massive PR concerning strong currency initiatives weakened the dollar from its highs and took the euro so far into its $1.24-$1.25 key resistance.

2. Bernanke as a student of the Great Depression organizes a strong argument for continued coordinated monetary expansion with the US Treasury.

3. Monetarism fails miserably when applied in an open system. That is its major weakness. Bernanke’s thesis demands the entire Western World be on the same page of Monetarism for without it new lows in the history of this period will be established. A return to locked credit markets is a reasonable assumption

5. There seems to be a slight pickup in media discussion of the dire condition of US states heading towards bankruptcy.

Keep in mind that in this new global economy a problem anywhere is a problem everywhere. As any currency in the Western World comes under attack, Gold has become the asset of choice.

Be ready for more violence in the USD/EU equation. Violence regardless of direction will be gold positive. This move is to $1650 and beyond.”- Jim Sinclair, JSMineset.com

Note: Change in Total Tonnes from yesterday’s data: SPDR added 3.042 tonnes to a new record high holding, the LSE added 0.43 tonnes, and the JSE added 0.97 tonnes.

COMEX Gold Trust (IAU) Total Tonnes in Trust: 84.96 - No change from yesterday’s data.

Silver Trust (SLV) Total Tonnes in Trust: 9176.84: -31.99 change from yesterday’s data.

Harmony’s (HMY) mine accident and U.S. Silver’s (USA.V) revised technical report were among the big stories in the gold and silver mining industry making headlines Friday.

Winners & Losers tracks NYSE and AMEX listed gold and silver mining stocks that trade over $1.

Arianne Grants Stock Options - More
- June 25, 2010 | Item | ShareThis

SLAM coverage on Casey Research - More
- June 25, 2010 | Item | ShareThis

Bonaparte Announces Closing of Private Placement and Commencement of Drilling - More
- June 25, 2010 | Item | ShareThis

U.S. Silver Announces Revised Technical Report - "US Silver Corporation (TSX-V: USA, OTCQX: USSIF, Frankfurt: QE2) (“US Silver” or “the Company”) announces the completion of a revised Technical Report on the mineral resources and reserves of the Galena silver-copper-lead mine located near Wallace, Idaho. The revised report was prepared by Chlumsky, Armbrust and Meyer LLC (CAM) and is dated 14 June 2010. It replaces one prepared earlier by CAM and dated 13 April 2010. The effective date of the mineral reserves and resources report is December 31, 2009." More
- June 25, 2010 | Item | ShareThis

Mediterranean updates negotiations in Turkey - More
- June 25, 2010 | Item | ShareThis

Copper Ridge announces appointments of President and CFO, granting of stock options and exploration update - More
- June 25, 2010 | Item | ShareThis

Ecometals Limited: Update re Closing of Proposed Sale of Condor Gold Project - More
- June 25, 2010 | Item | ShareThis

Uranium Resources, Inc. Completes Common Stock Offering - More
- June 25, 2010 | Item | ShareThis

TNR Gold 2010 Annual General and Special Meeting Held/Proceeds With Spinout of International Lithium - More
- June 25, 2010 | Item | ShareThis

Denarii Financing Update - More
- June 25, 2010 | Item | ShareThis

NWT Uranium Corp. New Board Composition - More
- June 25, 2010 | Item | ShareThis

Galantas AGM Results and Notice of Special Meeting - More
- June 25, 2010 | Item | ShareThis

Otish Energy to Acquire Alphonso Gold Property, Purini, Guyana - More
- June 25, 2010 | Item | ShareThis

Pele Mountain Initiates Planning and Permitting Process to Mine Near Surface Gold at East Highland's 'A' Zone - More
- June 25, 2010 | Item | ShareThis

Anglo Swiss Resources Commences Phase 1 Drill Program - More
- June 25, 2010 | Item | ShareThis

Sierra Resource Group Inc. to Issue 6 for 1 Stock Dividend of the Company's Common Shares - More
- June 25, 2010 | Item | ShareThis

PolyMet EIS-Path Forward to Completion Announced - More
- June 25, 2010 | Item | ShareThis

Acadian Mining announces highlights of AGM, appointment of new director and grant of options - More
- June 25, 2010 | Item | ShareThis

Iberian Minerals Closes Private Placement of Convertible Debentures - More
- June 25, 2010 | Item | ShareThis

Newcastle Sells Yukon Gold Prospect - More
- June 25, 2010 | Item | ShareThis

Radisson Mining Reports Broader Exploration Scope at Its Annual Meeting Held on June 22, 2010 - More
- June 25, 2010 | Item | ShareThis

Quebec Market Authority Requires Anaconda to Extend Bid Expiry for New Island to August 3, 2010 - More
- June 25, 2010 | Item | ShareThis

Minatura Gold Announces Proposed Voluntary Deregistration Filing with SEC - More
- June 25, 2010 | Item | ShareThis

Genco Appoints Anderson Acting CEO - More
- June 25, 2010 | Item | ShareThis

African Queen Mines Hires Gregory Nowak as Ghana Country Manager and Noyem Project Manager - More
- June 25, 2010 | Item | ShareThis

Intrepid Mines Limited: Postponement of General Meeting - More
- June 25, 2010 | Item | ShareThis

Olympus Announces Further Gold Resource Increases - More
- June 25, 2010 | Item | ShareThis

An Exceptional Metal for 2010: Molybdenum - More
- June 25, 2010 | Item | ShareThis

Blast at Harmony Mine in South Africa Kills Three - "Three mine workers investigating a possible fire were killed and two others seriously injured in an underground explosion at one of Harmony Gold Mining Co.'s mines in South Africa, the company said Friday." More
- June 25, 2010 | Item | ShareThis

- Would you like to receive the Free Daily Gold Seeker Report in your e-mail? Click here

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.