-- Posted 22 September, 2010 | | Source: SilverSeek.com
| Close | Gain/Loss |
Gold | $1290.50 | +$17.80 |
Silver | $21.00 | +$0.41 |
XAU | 197.89 | +1.18% |
HUI | 509.85 | +0.97% |
GDM | 1552.18 | +1.14% |
JSE Gold | 2536.05 | +31.55 |
USD | 79.81 | -0.65 |
Euro | 133.93 | +1.40 |
Yen | 118.28 | +0.79 |
Oil | $74.71 | -$0.26 |
10-Year | 2.548% | -0.046 |
T-Bond | 132.71875 | +0.65625 |
Dow | 10739.31 | -0.20% |
Nasdaq | 2334.55 | -0.63% |
S&P | 1134.27 | -0.48% |
The Metals:
Gold continued yesterday’s post-fed rally in Asia and London and rose to a new record high of $1295.80 a little after 9AM EST in New York before it fell back off into the close, but it still ended at a new record closing high with a gain of 1.4%. Silver climbed to a new 30-year high of $21.15 before it also fell back off a bit, but it still ended with a gain of 1.99%.
Euro gold fell to about €965, platinum gained $19 to $1627.00, and copper climbed over 8 cents to about $3.56.
Gold and silver equities rose roughly 2% at the open before they fell back near unchanged midday, but they then rallied back higher in afternoon trade and ended with about 1% gains.
The Economy:
Report | For | Reading | Expected | Previous |
FHFA House Price Index | July | -0.5% | - | -1.2% |
Tomorrow at 8:30AM EST brings Initial Jobless Claims for 9/18 expected at 450,000 and at 10AM are Existing Home Sales for August expected at 4,100,000 and Leading Indicators for August expected at 0.1%.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil reversed early gains and ended lower after the Energy Information Administration reported that crude inventories rose 1.0 million barrels, gasoline inventories rose 1.6 million barrels, and distillates rose 300,000 barrels.
The U.S. dollar index fell and treasuries rose in continued reaction to yesterday’s fed announcement that also held the Dow, Nasdaq, and S&P mostly slightly lower.
Among the big names making news in the market today were Adobe, New York Times, Novartis, General Mills, and Jefferies.
The Commentary:
“Dear CIGAs,
If the FED wanted to give the Dollar the kiss of death with yesterday’s FOMC release, they certainly managed to accomplish their task. It continued its descent which began as soon as the statement hit the wires yesterday and has not looked back since. As it has done so, it has resulted in once again another huge inflow of funny money into the commodity sector in an exact replay of what was occurring in early 2008. There were very few individual commodities that were lower today as billions more were jammed into hard assets in an attempt to shield wealth from the depredations of a currency that has broken through support levels in a manner that is frightening for its intensity. Cotton in particular is on an awesome tear into the stratosphere. Get ready to see the price of your cotton clothing moving higher at the retail stores soon.
One more reference to the Dollar – it is clawing its way back above critical support near the 80 level on the USDX chart. Dollar bulls know that a weak close below that level spells a lot more pain to their trading accounts and therefore they will attempt to hold the greenback near this level if possible. If they can do that, we will probably see a short bounce here although without any change in the fundamentals, it is difficult to make a case for anything more than a dead cat bounce.
The metals benefited immediately from the influx of fresh buying related to the Dollar’s drop with both gold and silver leaping higher. Gold set another record just shy of $1300 while silver took out $21 with relative ease. Should silver be able to mount a sustained charge above $21.50 it could very easily be at $23 in a flash. So far it has peaked out at $21.20.
Open interest in gold came in near 597,000 contracts, amazingly still below the record high even as gold has soared into a new all time high price in nominal terms. The very strong volume in yesterday’s trade coupled with what I consider a rather tame increase in open interest suggests a tremendous amount of short covering occurred right after the FOMC report hit the wires. Weak-handed shorts were annihilated in yesterday’s upside reversal.
The price level of $1295 – $1300 has been a target for gold once it broke out above $1285. Indeed we are seeing some longs booking profits after a nice run higher so it would not surprise me to see price set back and attempt to rest a bit. If any setback in price holds above $1285 it will be strongly suggestive that a very quick run through $1300 is in order. A deeper setback towards $1260 that holds that level suggests a bit more sideways trade before an attempt to kick off another leg upward. A breach of $1260 would send the metal back towards $1245 where I would look for strong buying to surface.
Also aiding the charge higher in the metals is the action in the HUI which has built on its breakout above the critical resistance level near 500 and has a shot at making a run towards 520. That is the last level that really needs to be cleared to see an acceleration upward in the mining shares. It is also the level at which a great deal of the persistent short sellers in this sector are going to be experiencing tremendous pain. The manner in which it has set back from its high near 514 today suggests that the share bears are fighting to hold the line and prevent a breach of 520. Let’s keep an eye on the price action of the HUI and the XAU for any potential clues as to the next move in bullion. It would be a great solace to the bullish cause to see the HUI maintain its footing above that pesky 500 level.
I still look for the hedge funds trapped in that ratio trade involving a long bullion/short shares position to eventually move to a long mining shares/short broader equities trade. Once that occurs, we will see the mining shares play catch up on the gold/HUI ratio not to mention outperforming the broader market as a whole.
I suspect that an eventual break of the 520 level in the HUI which is maintained will more than likely see gold enter into another phase in its decade long bull market, one marked by increasing awareness on the part of the average citizen about the metals markets. For all of their impressive performance over the last 10 years, gold and silver are just now, just now beginning to come on the radar screen of many small investors and citizens. One can see this sort of shift in the phases in a bull market by noting the slope of the upward lines on a long term chart. The initial increase is a very shallow rise with a low angle slope. The next phase sees the upward sloping line increase its angle of ascent while the final phase sees sometimes nearly vertical rises with incredibly steep slopes. Gold has obviously not yet entered the final phase.
As our wise friend Monty Guild has written in his recent commentary, the rise of the yellow metal is not going to be without its enemies notice. The problem for the West and its perennial gold price rigging scheme is that the Central Banks of other emerging economic powers around the globe have plans to increase their official gold holdings as part of their reserves and are now emerging as buyers of the yellow metal. While the West may attempt to fight the rise in price, the East is going to be there to buy it up on the dips that such machinations create. I have long maintained that the battle over gold is really a battle for economic supremacy.
The long bond speculators are doing exactly what their masters at the Fed expect them to do after receiving their marching orders from yesterday’s FOMC release. They are back bidding up the price taking the bond market up over a full point as I write this. Even with their buying the gold/bond ratio is currently moving in favor of gold.
Crude oil is again the weak sister in the commodity complex as it cannot seem to break out of its range trade and participate in the broader commodity sector price rise. It is being weighed down by ample supplies during a time of the year also when heating demand is still relatively tame and driving season for the summer is now long gone. While food and clothing prices will be soaring in the weeks and months ahead, at least we can deal a bit easier with decent energy costs. How long that will last is anyone’s guess however. Personally at some point next year I expect that to end.”- Dan Norcini, More at JSMineset.com
GATA Posts:
Like China, Japan considers buying resources abroad
Establishment economist Sinai: Fed's code means 'buy gold'
The Statistics:
Activity from: 9/21/2010
Gold Warehouse Stocks: | 10,820,092 | +13,000 |
Silver Warehouse Stocks: | 112,033,603 | -163,356 |
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 | 1304.168 | 41,930,319 | US$54,223m |
London Stock Exchange (LSE) AND NYSE Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse - Xetra) | Gold Bullion Securities | 125.97 | 4,050,053 | US$5,218m |
London Stock Exchange (LSE) AND NYSE Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse - Xetra) AND NYSE Euronext Amsterdam | ETFS Physical Gold | 128.04 | 4,116,661 | US$5,304m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 14.21 | 475,492 | US$590m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 48.50 | 1,559,202 | US$1,984m |
NASDAQ Dubai | Dubai Gold Securities | 0.155 | 4,969 | US$6m |
Note: Change in Total Tonnes from yesterday’s data: SPDR subtracted 0.912 tonnes, the LSE subtracted 0.08 tonnes, the LSE ETFS subtracted 0.31 tonnes, and the JSE subtracted 0.24 tonnes.
COMEX Gold Trust (IAU) Total Tonnes in Trust: 98.75: +0.46 change from yesterday’s data.
Silver Trust (SLV) Total Tonnes in Trust: 9509.55: +127.81 change from yesterday’s data.
The Miners:
Entree Gold’s (EGI) management changes, Newmont’s (NEM) inclusion in the Dow Jones Sustainability World Index, Timberline’s (TLR) drill results, and Metalline’s (MMG) project update were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Mines MGMT | MGN+11.28% $2.17 |
2. Almaden | AAU +6.92% $2.78 |
3. Minefinders | MFN +5.08% $10.76 |
LOSERS
1. Gold Reserve | GRZ-7.44% $1.12 |
2. Banro | BAA -3.00% $1.94 |
3. Paramount | PZG -2.60% $1.50 |
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:
AM Gold Inc. Announces Red Mountain Property Purchase Agreement/Shares for Debt Settlement with Solitaire Minerals Corp./Addition to Board of Directors - More
- September 22, 2010 | Item | ShareThis
Max completes soil sampling at Diamond Peak gold/silver/zinc property in Nevada; drill permit granted - More
- September 22, 2010 | Item | ShareThis
Hudson Rare Earth Exploration Samples Over 10% TREO From Reconnaisance Program - More
- September 22, 2010 | Item | ShareThis
Nevada Exploration Completes $560,000 Private Placement - More
- September 22, 2010 | Item | ShareThis
Inspiration Distributes Shares of Nitinat Minerals Corporation - More
- September 22, 2010 | Item | ShareThis
Copper Creek Bonsai Update - More
- September 22, 2010 | Item | ShareThis
The Typhoon-Aurizon Tandem Summarizes its 2010 Grooving Campaign on the Fayolle Property - More
- September 22, 2010 | Item | ShareThis
Corex Intersects 301.8 m of 0.37 g/t Au (Incl. 16.8 m of 1.63 g/t Au and 70.1 m of 0.67 g/t Au) - More
- September 22, 2010 | Item | ShareThis
Fischer-Watt Outlines Its Wyoming Uranium Potential - More
- September 22, 2010 | Item | ShareThis
Fire River Gold Announces High-Grade Results From Whalen Zone Nixon Fork Gold Mine, Alaska - More
- September 22, 2010 | Item | ShareThis
Company Profile for New Millennium Capital Corp. - More
- September 22, 2010 | Item | ShareThis
Entrée Gold Management Changes - "Entrée Gold Inc. (TSX:ETG; NYSE AMEX:EGI; Frankfurt:EKA - "Entrée" or the "Company") is pleased to announce the addition of Susan McLeod to its executive team as Vice President, Legal. Ms. McLeod has been practicing law in Vancouver, Canada since 1997. She has worked as outside counsel to public companies engaged in international mineral exploration and mining. She has advised clients with respect to corporate finance activities, mergers and acquisitions, corporate governance and continuous disclosure matters, and mining-related commercial agreements." More
- September 22, 2010 | Item | ShareThis
Vanstar Starts Drilling on the Lac Fortune West Gold Project in the Rouyn-Noranda Mining Camp, Quebec - More
- September 22, 2010 | Item | ShareThis
Newmont shares hit new high as gold rally rolls on - "es of Newmont Mining Corp (NEM.N), the world's second-largest gold producer, climbed to their highest mark in more than 20 years on Wednesday as gold prices continued their upward march, hitting record levels near $1,300 per ounce." More
- September 22, 2010 | Item | ShareThis
First Point Releases First Assay Results from Baptiste Target, Decar Nickel-Iron Alloy Property - More
- September 22, 2010 | Item | ShareThis
Drilling Resumes at Platinex's Shining Tree Gold Property - More
- September 22, 2010 | Item | ShareThis
Iron Mining Group to Acquire 70% of Chilean Iron Sands Reserve Project - More
- September 22, 2010 | Item | ShareThis
Galahad Prepares for Regcourt Drilling - More
- September 22, 2010 | Item | ShareThis
Sacre-Coeur Minerals Executes Agreement for Its Acquisition by Severstal - More
- September 22, 2010 | Item | ShareThis
BUCHANS MINERALS TO RESUME DRILLING BUCHANS NORTH HIGH GRADE MASSIVE SULPHIDE PROSPECT - More
- September 22, 2010 | Item | ShareThis
Strait Gold Samples 9.27% Copper, 0.83g/t Gold Over 4.0 Metres at Alicia Project - More
- September 22, 2010 | Item | ShareThis
Moly Mines Limited Update: Iron Ore Project Execution on Track for First Ore Shipment in December 2010 - More
- September 22, 2010 | Item | ShareThis
Oromin Explorations Ltd.: Resource Increase, New Drilling Results, Higher Grade Masato Underground Potential, and Two New Discoveries Enhance Potential - More
- September 22, 2010 | Item | ShareThis
Sonora Announces: Second Gold Property in Tanzania, Private Placement, Appointment of New Director, Grant of Options - More
- September 22, 2010 | Item | ShareThis
Alto Ventures Ltd.: 45.95 m Zone Averaging 1.05 g/t Gold Intersected at Coldstream in Ontario - More
- September 22, 2010 | Item | ShareThis
CANADIAN ARROW RECEIVES NI 43-101 RESOURCE ESTIMATE FOR TIMMINS NICKEL PROJECTS: 5.8M LBS OF CONTAINED NICKEL IN INDICATED CATEGORY - More
- September 22, 2010 | Item | ShareThis
Volta to Drill 50,000 Meters at the Kiaka Gold Project, Burkina Faso - More
- September 22, 2010 | Item | ShareThis
Paladin Energy Ltd Releases 2010 Annual Report - More
- September 22, 2010 | Item | ShareThis
TEMEX ENTERS INTO OPTION AND JOINT VENTURE ON CROXALL PROPERTY WEST TIMMINS GOLD DISTRICT, ONTARIO - More
- September 22, 2010 | Item | ShareThis
Source Gold to Launch Expanded Drill Program on Established Gold Asset Recently Acquired in Arizona - More
- September 22, 2010 | Item | ShareThis
Far West Mining Announces Increase in Private Placement - More
- September 22, 2010 | Item | ShareThis
Greenlight Resources Inc. - Drilling confirms Spodumene mineralization at Brazil Lake Lithium and Rare Metal property - More
- September 22, 2010 | Item | ShareThis
NMC Resource Corporation: Mine Potential Expanded by Deep Drilling - More
- September 22, 2010 | Item | ShareThis
Ironwood Gold Announces Investment by Callinan Mines - More
- September 22, 2010 | Item | ShareThis
Galore Resources Closes a $2,050,000 Financing - More
- September 22, 2010 | Item | ShareThis
Terra Firma Provides Update on Restigouche Uranium Property - More
- September 22, 2010 | Item | ShareThis
Shield Gold Signs Agreement With Virginia Mines - More
- September 22, 2010 | Item | ShareThis
Douglas Lake Acquires 100% Interest in 4 New Properties - More
- September 22, 2010 | Item | ShareThis
B2Gold Corp. Announces Additional Positive Exploration Results at La Libertad and Limon Mine Properties in Nicaragua - More
- September 22, 2010 | Item | ShareThis
Rare Earth Metals Reports SIX NEW DISCOVERIES From Its Letitia Lake/Red Wine Property in Labrador - More
- September 22, 2010 | Item | ShareThis
Mega Commences Drilling Near Cameco-Mitsubishi's Kintyre Uranium Resource - More
- September 22, 2010 | Item | ShareThis
Golden Hope Intersects 34m at 3.68 Au g/t and Significantly Expands the Mineralized Structures at Bellechasse-Timmins - More
- September 22, 2010 | Item | ShareThis
Glen Eagle Resources Inc.: LaMotte - More
- September 22, 2010 | Item | ShareThis
GLOBEX: Test Work on Refractory Gold Ore Highly Successful - More
- September 22, 2010 | Item | ShareThis
East Asia Minerals Announces Initial Gold Resource Estimate for Sangihe - More
- September 22, 2010 | Item | ShareThis
Foundation Resources Inc.: 45.95 m Zone Averaging 1.05 g/t Gold Intersected at Coldstream in Ontario - More
- September 22, 2010 | Item | ShareThis
Continental Nickel Intersects 0.74% Nickel and 0.15% Copper Over 53.1 Metres at the New "Sleeping Giant" Sulphide Zone on the Nachingwea Nickel Project - More
- September 22, 2010 | Item | ShareThis
Mercer Gold Corp. Defines Drill Targets Based on Additional Rock Sampling Results up to 4.89 Grams of Gold per Tonne at Guayabales - More
- September 22, 2010 | Item | ShareThis
Yorbeau Reports Excellent Results From Compilation and Re-Interpretation of Recent and Historical Drill Data - More
- September 22, 2010 | Item | ShareThis
Strategic Metals Ltd. Announces $15 Million Private Placement - More
- September 22, 2010 | Item | ShareThis
Energizer Resources to Present Green Giant Vanadium Project at Modern Energy Investor Forum - More
- September 22, 2010 | Item | ShareThis
Virginia and Shield Gold Sign a $1 M Agreement on La Grande Nord - More
- September 22, 2010 | Item | ShareThis
Premium All-Cash Offer to Acquire BAFFINLAND IRON MINES CORPORATION Announced by Nunavut Iron Ore Acquisition Inc. - More
- September 22, 2010 | Item | ShareThis
Mr. William M. Sheriff Appointed Chairman of Tigris Uranium Corp. - More
- September 22, 2010 | Item | ShareThis
Silver Predator Announces Close of Oversubscribed Private Placement - More
- September 22, 2010 | Item | ShareThis
VMS Announces Appointment of Chief Operating Officer - More
- September 22, 2010 | Item | ShareThis
CanAlaska Uranium Reports on Summer Exploration Surveys - More
- September 22, 2010 | Item | ShareThis
Newmont Included in Dow Jones Sustainability World Index for Fourth Consecutive Year - "Newmont Mining Corporation (NYSE:NEM - News) ("Newmont" or "the Company") today announced that it was selected to be included in the prestigious Dow Jones Sustainability World Index (www.sustainability-index.com) for the fourth consecutive year. In 2007, Newmont became the first gold company included in the index. In addition, Newmont was selected for inclusion in the DJSI North America Index in 2006, 2007, 2008, 2009 and 2010." More
- September 22, 2010 | Item | ShareThis
Metalline Mining Updates Progress on the Sierra Mojada Project, Coahuila, Mexico - "The Company has received a report on the deportment of silver and zinc from a sample taken from the shallow silver-zinc resource from the San Salvador shaft area at approximately 100 meters depth along section 631500E, a cross section of which was posted to the web earlier. The deportment study demonstrates the likely methods for recovery of silver, zinc, and lead." More
- September 22, 2010 | Item | ShareThis
Timberline Announces Exploration Drill Results From Butte Highlands - "Timberline Resources Corporation (NYSE Amex:TLR) (TSX-V:TBR - News) ("Timberline" or the "Company") today announced initial drill results from the first phase of its surface exploration drilling at the Butte Highlands Joint Venture Property." More
- September 22, 2010 | Item | ShareThis
- Chris Mullen, Gold Seeker Report
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-- Posted 22 September, 2010 | |
