-- Posted 12 October, 2010 | | Source: SilverSeek.com
| Close | Gain/Loss |
Gold | $1346.00 | -$6.95 |
Silver | $23.12 | -$0.16 |
XAU | 204.18 | -0.37% |
HUI | 520.26 | -0.44% |
GDM | 1574.81 | -0.43% |
JSE Gold | 2546.10 | +17.71 |
USD | 77.35 | -0.17 |
Euro | 139.13 | +0.39 |
Yen | 122.21 | +0.41 |
Oil | $81.67 | -$0.54 |
10-Year | 2.422% | +0.041 |
T-Bond | 133.71875 | -0.59375 |
Dow | 11020.40 | +0.09% |
Nasdaq | 2417.92 | +0.65% |
S&P | 1169.77 | +0.38% |
The Metals:
Gold dipped as much as $12.50 to $1340.43 in Asia before it climbed back to almost unchanged at $1352.45 at around 8:50AM EST, but it then fell back off for most of the rest of trade and ended with a loss of 0.51%. Silver fell to $22.919 and rose to $23.258 before it also fell back off and ended with a loss of 0.69%. Both metals have roughly erased those losses in after hours access trade in reaction to the release of FOMC minutes.
Euro gold fell to about €972, platinum lost $11 to $1672.50, and copper remained at about $3.78.
Gold and silver equities fell over 2% at the open, but they then climbed back higher for most of the rest of trade and ended with only slight losses.
The Economy:
FOMC minutes from their last meeting on September 21st showed that fed members “were prepared to ease monetary policy “before long” and focused on purchases of Treasury securities and boosting inflation expectations as ways to add stimulus.”
Tomorrow at 8:30AM EST brings Import and Export Prices for September and at 2PM is the Treasury Budget for September expected at -$33.5 billion.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil found slight losses after OPEC pledged to keep output targets steady.
The U.S. dollar index reversed early gains and ended modestly lower along with treasuries after fed minutes confirmed that the FOMC is ready to launch a new round of quantitative easing.
The Dow, Nasdaq, and S&P reversed notable early losses and ended with decent gains on the outlook for easy monetary policy.
Among the big names making news in the market today were Google, Pfizer and King Pharma, Tyco, Avon, Cline, and Citigroup.
The Commentary:
“Dear CIGAs,
It appears that we have going on is Federal Reserve Officials heading for the microphones in an attempt to stop an outright blitzkrieg against the US Dollar. In three week’s time, the Dollar has dropped 6% when measured against the basket of currencies comprising the USDX. I suspect that while nothing concrete may have emerged out of the past weekend’s pow-wow to smoke the peace pipe and create a resolution regarding the currency wars, the US got an earful from their counterparts who are not the least bit pleased to see the stunt that they are pulling in deliberately devaluing the greenback.
Thus we get the spectacle of seeing the very same people who brought us QE and have given every reason for market participants to fully expect another round of QE2, and I might add the green light to bond speculators to bid up the price of Treasuries, now suddenly shifting gears and acting as champions of frugal monetary policy and warning us about the dangers of excessively low interest rates! News flash to Fed officials – we did not write the minutes to your last FOMC press release – you did.
The reason everyone and their mother is expecting low interest rates for the foreseeable future and more QE is because these same people now warning us about the same are the very ones who told us that is what we could expect! Personally I wonder how these people sleep at night. This is akin to parents filling the cereal bowls of their children with a near endless amount of Fruit Loops, pouring tablespoons of sugar upon them, and then warning those children about the dangers of juvenile diabetes so that they can then claim to have been responsible parents. What kind of idiots do these elitists think we are!
Regardless, the little staged drama act served to push out a few shorts in the Dollar with the result that several commodity markets experienced some light selling in today’s session including the precious metals. As mentioned yesterday, gold is probably waiting for a further downside move in the Dollar below 77 in the USDX before it takes out its previous all time high just above $1,360. You have to know that the rulers of Monetary La-La Land are more than displeased to see ol’ Yeller trading above $1,350. After all, the best doggone dog in the West is making a mockery out of all of them. Maybe by injecting a bit of doubt into the market about the extent of the next round of QE, they believe that they can make the trade in the Dollar a bit more two sided thereby slowing its descent and taking some of the wind out of the gold market. Problem is what has now been dubbed “Foreclosure Gate” makes all of this just a side show in a circus. The die is cast and the wound is fatal and no amount of talking heads can negate the seriousness of what is occurring and the fall out that is going to continue for a very long time.
Back to gold – technically it is pausing below its all time high unable or unwilling to charge higher for the immediate moment but thus far dips continue to be bought leaving the market in an apparent wait and see mode. Downside support remains first near $1,330 followed by $1,325 – $1,320 before more substantial support emerges near $1,315 – $1,312. Open interest remains high with a lot of speculative long side exposure but if those longs REFUSE to run, the shorts will not be able to push it lower for any duration. The key is the tenacity and conviction of the gold bulls. This is why the Fed officials are at the microphones – everything has become a game of intimidation as psychological warfare ramps up with Central Bankers of the West arrayed against those who are attempting to preserve their wealth from the depradations of their cancerous policies
A second close over $1,350 in gold would certainly set the market up for a retest of the recent peak high. Once that level gives way, then $1,380 comes into play.
It would certainly aid matters if the HUI were to get and stay above 520 with that level serving as a floor instead of a cap. It is always more advantageous to the bull cause when both the shares and the bullion are moving higher together in tandem.
Silver has experienced so many strong up days recently that support levels need to leave sufficient room for the increase in volatility and the size of the daily trading range. The charts indicate support in the market lies down closer to $22.50 – $22.35 or so. Much stronger support comes in near $22.00 – $21.85. Resistance is yesterday’s high just shy of $23.70 with psychological resistance above that near $24.
Corn continues moving higher still feeding off of last week’s surprise USDA numbers and that is serving to put a floor under the entire grain complex. It made a 25 month high in price as it looks more and more like a push to $6.00 is in the cards. Expect to see higher beef, pork and poultry prices next year as a result of all this.
Copper prices are showing good resilience and continue to hover just below $4.00. Lumber is limit bid today on news China was buying wood. It is remarkable how the least mention of China in combination with any commodity market generally drive its limit up. It was cotton yesterday and now it is lumber. The commodity markets have already made the transition to regarding China as the leading economy on the planet. Its demand overshadows anything that is taking place in the US domestically as we all know that lumber demand stinks here at home with the crippled home building industry caught up in the malaise affecting the entire real estate sector. Doesn’t matter – if China buys it, the market runs higher. At some point the rest of the markets will catch up to the reality of the tectonic shift in the economic dominance of the East over the fading West.
Crude oil is weaker today and Nat gas just made a new yearly low price. Thankfully, those who use natural gas for heating this winter will be spared any price hikes. That gas shale play has turned out to be a big break for weary consumers who are getting slammed on the food front. American technological innovation in the energy industry is still the best in the world. If its there in the ground somewhere, our companies can figure out how to go and get it. As a side note, China’s huge energy company CNOOC, has purchased a sizeable interest in the South Texas oil and gas formation known as the Eagle Ford. Clearly they are eager to acquire the tech know how to extract these deposits. Folks down that way welcome the investment interest partly because we can introduce Chinese business owners to the joys of hunting South Texas white tail deer. You haven’t seen a monster buck until you’ve seen one of those beauts! A lot of Texas ranchers are going to be getting checks not only for mineral rights but for deer leases! If you’ve got a truck that you can load up with genuine cowboy hats and some rattlesnake boots and wallets, you will make a killing selling them the next few years to the new wave of tourists from the East and their business counterparts.
Bonds continue where they left off yesterday doing a whole lot of nothing. They too are sitting around watching for clues about the QE move by the Fed.”- Dan Norcini, More at JSMineset.com
GATA Posts:
Should U.S. say it's selling gold before world learns it's long gone?
Currency rift with China exposes shifting clout
The Statistics:
Activity from: 10/08/2010
Gold Warehouse Stocks: | 10,970,100 | +8,096 |
Silver Warehouse Stocks: | 112,517,052 | -30,627 |
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 | 1287.327 | 41,388,837 | US$55,805m |
London Stock Exchange (LSE) AND NYSE Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse - Xetra) | Gold Bullion Securities | 127.11 | 4,086,783 | US$5,506m |
London Stock Exchange (LSE) AND NYSE Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse - Xetra) AND NYSE Euronext Amsterdam | ETFS Physical Gold | 129.35 | 4,158,569 | US$5,600m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 14.21 | 475,390 | US$618m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 49.33 | 1,586,114 | US$2,144m |
NASDAQ Dubai | Dubai Gold Securities | 0.155 | 4,968 | US$7m |
Note: Change in Total Tonnes from yesterday’s data: SPDR subtracted 0.911 tonnes and the LSE ETFS added 0.06 tonnes.
COMEX Gold Trust (IAU) Total Tonnes in Trust: 101.26 - No change from yesterday’s data.
Silver Trust (SLV) Total Tonnes in Trust: 10,085.62 - No change from yesterday’s data.
The Miners:
Gammon Gold’s (GRS) production ramp-up, Rubicon’s (RBY) operations and permitting update, Great Panther’s (GPR.TO) third quarter production and update, and Minefinders’ (MFN) drill results were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Banro | BAA +4.74% $2.87 |
2. DRDGOLD | DROOY +3.56% $5.24 |
3. Silver Standard | SSRI +0.80% $22.60 |
LOSERS
1. Golden Minerals | AUMN -5.31% $23.20 |
2. Timberline | TLR -4.84% $1.18 |
3. Allied Nevada | ANV -3.88% $25.50 |
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:
Molycor Private Placement Over-Subscribed - More
- October 12, 2010 | Item | ShareThis
Palladon Announces Annual and Special Meeting and Proposed Share Consolidation - More
- October 12, 2010 | Item | ShareThis
Inter-Rock Nevada Mineral Property Update - More
- October 12, 2010 | Item | ShareThis
Cayden Announces Exploration Advancement by Airborne Geophysics and Drill Preparation for the Wildcat Property, British Columbia - More
- October 12, 2010 | Item | ShareThis
California Gold Corp. Signs Letter of Intent to Acquire an Eighty Percent Interest in Mexivada's AuroTellurio Gold-Tellurium Property in Sonora, Mexico - More
- October 12, 2010 | Item | ShareThis
Callinan Mines Ltd. - Coles Creek Program Update - More
- October 12, 2010 | Item | ShareThis
Eagle Hill Appoints Jean-Philippe Desrochers as Chief Geologist - More
- October 12, 2010 | Item | ShareThis
Athena Silver Company Plans New Drilling Program to Test Historical Resource Estimates - More
- October 12, 2010 | Item | ShareThis
Sona and First Nation Sign Partnership Agreement - More
- October 12, 2010 | Item | ShareThis
American Paramount Gold Corp. Appoints Former Vice-Chairman of Merrill Lynch Canada, Mr. Hugh Aird, as CEO and President - More
- October 12, 2010 | Item | ShareThis
Eagle Plains/Providence Capital Expand Drill Program on Iron Range Project, South-eastern British Columbia - More
- October 12, 2010 | Item | ShareThis
Abacus Closes Definitive Joint Venture Agreement With KGHM JV Company Incorporated With Abacus as Operator - More
- October 12, 2010 | Item | ShareThis
Yale Announces Drilling Has Started at Guadalupe - More
- October 12, 2010 | Item | ShareThis
GRIT International Inc. -- Signs Agreements to Acquire New Mineral Projects - More
- October 12, 2010 | Item | ShareThis
GLADSTONE PACIFIC NICKEL LIMITED - QNI Takeover Offer - Publication of Supplementary Target's Statement - More
- October 12, 2010 | Item | ShareThis
Renowned Geophysicist Joins Lake Victoria Mining Company's Consulting Team - More
- October 12, 2010 | Item | ShareThis
Great Panther Reports Third Quarter Production and Updates Exploration & Development Programs - "The combined metal production totaled 588,454 silver equivalent ounces ("Ag eq oz"), an increase of 2% over the last quarter and within 1% of the production for Q3 2009. The mines produced 2,201 ounces of gold, 382,220 ounces of silver, 271 tonnes of lead, and 352 tonnes of zinc. In this first year of the Company's 3-year growth strategy, the focus continues to be on underground development of new production areas and delineation of new resources and reserves. As such, some changes are being made to the mining methods and schedule at Guanajuato, which have temporarily deferred some silver production, while production from Topia remains on target. The combined year to date metal production at September 30, 2010 was 1.69 million Ag eq oz." More
- October 12, 2010 | Item | ShareThis
Commander's Kanosak Potential Expanded With Drill Results and New Surface Gold Discoveries - More
- October 12, 2010 | Item | ShareThis
Canadian Mining's Bullard Pass Gold Project Potential Calls for Large JV Partner - More
- October 12, 2010 | Item | ShareThis
Claim Post Resources Announces Engagement of First Canadian Capital for Investor Relations - More
- October 12, 2010 | Item | ShareThis
Voluntary Delisting of Unigold Shares From the NASDAQ Dubai Exchange - More
- October 12, 2010 | Item | ShareThis
Amarillo Welcomes Frank Baker to Lead the Mara Rosa Project Through Pre-Feasibility and Beyond - More
- October 12, 2010 | Item | ShareThis
Riverstone Commences 25,000 Metre Drill Program at Karma - More
- October 12, 2010 | Item | ShareThis
Golden Predator Intercepts 12.19 m of 1.49 g/t Gold from newly discovered Swede Zone at the Gold Dome Project, Yukon - More
- October 12, 2010 | Item | ShareThis
Nanika Starts Drilling On Red Cliff East Property - More
- October 12, 2010 | Item | ShareThis
Tres-Or Commences Establishment of a Gold Resource at Its Advanced Duvay Gold Project, Quebec - More
- October 12, 2010 | Item | ShareThis
LeBoldus Capital Identifies Significant Gold-Silver Mineralization at Surface on the Corongo Property in Peru - More
- October 12, 2010 | Item | ShareThis
Golden Phoenix Will Host Shareholder Conference Call: Provide Acquisition, Debt Reduction, Growth Strategy Updates; Will Appear at Chicago Resource Expo - More
- October 12, 2010 | Item | ShareThis
Norsemont Mining Drills 242.5 gpt Gold at Constancia - More
- October 12, 2010 | Item | ShareThis
DPM Enters Into Option Agreement With Queensland Minerals Ltd. Covering Balance of Serbian Properties - More
- October 12, 2010 | Item | ShareThis
Valterra Expands Toughnut Zone by Drilling 10.86m of 1.12 g/t Au & 4.24 g/t Ag, Phase II Program Planned - More
- October 12, 2010 | Item | ShareThis
Cap-Ex Completes Airborne Geophysical Survey over Canarc's Tay-LP Gold Property in Yukon - More
- October 12, 2010 | Item | ShareThis
CALDERA RECEIVES CONFIRMATION THAT MARJAN MINING LICENSE IS IN ORDER AND JV IS IN FULL FORCE - More
- October 12, 2010 | Item | ShareThis
Petaquilla Infrastructure Subsidiary Offered Equipment Leasing Facility - More
- October 12, 2010 | Item | ShareThis
Mackenzie (Mac) Watson Joins Savant Explorations Ltd. as an Advisor - More
- October 12, 2010 | Item | ShareThis
Argonaut Gold Inc. Updates Drill Results From the El Castillo Resource Expansion Program - More
- October 12, 2010 | Item | ShareThis
Condor Resources Inc.: La Libertad Cu-Mo Porphyry Target Expanded, New Mineralized Breccia Discovered, Community Agreements Signed - More
- October 12, 2010 | Item | ShareThis
Tiex Identifies Five Au/Cu Porphyry Targets at Horsefly Property - More
- October 12, 2010 | Item | ShareThis
TintinaGold Resources Inc. Announces High-Grade Drill Results From its Sheep Creek Copper-Cobalt Property - More
- October 12, 2010 | Item | ShareThis
Panoro Announces Increase in Financing to $3,000,000 - More
- October 12, 2010 | Item | ShareThis
Lake Victoria Mining Company Announces New Officers and Board Changes; New President, CEO, Director and CFO - More
- October 12, 2010 | Item | ShareThis
Batero Gold Initiates Ground Geophysics Program - More
- October 12, 2010 | Item | ShareThis
Orvana Closes US $50 Million Debt Financing With Credit Suisse - More
- October 12, 2010 | Item | ShareThis
Ascot Resources Ltd. Drilling Intersects 8.99 g/t Au Over 14.5 Meters at Premier Unicorn Zone - More
- October 12, 2010 | Item | ShareThis
Soldi Ventures Inc. Acquires Another Strategic Land Package Along the Rainy River Gold Belt - More
- October 12, 2010 | Item | ShareThis
Paget Minerals to Drill Cabin Gold-Silver Project, Nechako Basin, BC - More
- October 12, 2010 | Item | ShareThis
Tarsis Announces White River Soil Assays and Additional Staking, Yukon - More
- October 12, 2010 | Item | ShareThis
Premium Exploration Increases District-Sized Land Package by 200% upon Additional Review of Airborne Geophysics; Phase-Three Drilling & Scoping Study Update - More
- October 12, 2010 | Item | ShareThis
Miranda Gold Reports Red Canyon Drill Results - More
- October 12, 2010 | Item | ShareThis
Ironwood Gold Completes Geochemical Survey at Rock Creek Project, Nevada - More
- October 12, 2010 | Item | ShareThis
First Liberty Power Corp. Announces Second Phase of Exploration Program for Lida Valley, Nevada Lithium Prospect - More
- October 12, 2010 | Item | ShareThis
Aldridge Minerals Announces Drilling Results on Yenipazar Project - More
- October 12, 2010 | Item | ShareThis
UMG Increases Contiguous Exploration Holdings by 265% - More
- October 12, 2010 | Item | ShareThis
MAWSON SAMPLES UP TO 1,415 GRAMS PER TONNE GOLD AT ROMPAS IN FINLAND - More
- October 12, 2010 | Item | ShareThis
MDN and SOQUEM Start Drilling on the MCGold Project in Chibougamau, Quebec - More
- October 12, 2010 | Item | ShareThis
Tumi Resources Limited - TUMI TO DRILL FOUR PROJECTS IN MEXICO AND SWEDEN - More
- October 12, 2010 | Item | ShareThis
Richfield Completes Staking and Acquisition of Blackwater West Property - More
- October 12, 2010 | Item | ShareThis
AVANTI ENTERS INTO TOLLING AGREEMENT WITH MOLYMET - More
- October 12, 2010 | Item | ShareThis
Santa Fe Gold Conference Call Oct. 15 - More
- October 12, 2010 | Item | ShareThis
Golden Hope Mines Limited: Robert J. Stocks Appointed to Chairman of the Board of Directors - More
- October 12, 2010 | Item | ShareThis
Explor Intersects 4.0 Meters of 30.6 g/tonne Au on Timmins Porcupine West - More
- October 12, 2010 | Item | ShareThis
Zincore Discovers High Grade Zinc Mineralization North of Accha Deposit - More
- October 12, 2010 | Item | ShareThis
Arcus Development Group Inc.: Dawson Gold Trenching Program Remains Unfinished - More
- October 12, 2010 | Item | ShareThis
Silver Quest Completes Yukon Exploration Programs - More
- October 12, 2010 | Item | ShareThis
Uranium One Announces Change in Interest Rate for Convertible Debentures Due 2015 - More
- October 12, 2010 | Item | ShareThis
Liberty Reports Third Quarter Production Results - More
- October 12, 2010 | Item | ShareThis
Bellhaven Cuts Western Edge of the Middle Zone, La Mina Porphyry Gold-(Copper) Project, Colombia - More
- October 12, 2010 | Item | ShareThis
Proving Up Leprechaun's Heart of Gold: Marathon Intersects 27 m (core length) Grading 6.53 g/t of Gold - More
- October 12, 2010 | Item | ShareThis
Continuing to Prove Up Leprechaun%u2019s Heart of Gold: Latest Results from Mountain Lake%u2019s Leprechaun Deposit Include 6.53 g/t Gold Over 27 m - More
- October 12, 2010 | Item | ShareThis
Harvest Gold Updates Shareholders on Activities in Manitoba & Nevada - More
- October 12, 2010 | Item | ShareThis
Big Bear Mining Corp Announces Results from Preliminary Exploration in Red Lake Claims - More
- October 12, 2010 | Item | ShareThis
Bolero Strengthens Advisory Board by Adding Ian Smith - More
- October 12, 2010 | Item | ShareThis
Orosur Mining Inc. Announces Results and corporate update for the First Quarter Ended August 31, 2010 - More
- October 12, 2010 | Item | ShareThis
Aura Minerals Releases Second Set of Results from the Phase 1 Deep Drilling Program for the Aranzazu Copper-Gold-Silver Project in Mexico - More
- October 12, 2010 | Item | ShareThis
Minefinders Encounters High-Grade Gold and Silver Intercepts in the South Extension at the Dolores Mine - "Significant grades encountered to date include 2.0 metre intervals assaying 73.24 grams per tonne ("gpt") gold and 4,986.7 gpt silver in hole DD-540, 41.76 gpt gold and 722.1 gpt silver in DD-522 and 9.57 gpt gold with 637.7 gpt silver in DD-518. On a gold equivalent ("Aueq") basis, using a silver to gold ratio of 60 to 1, these intervals represent 156.3 gpt Aueq, 53.8 gpt Aueq and 20.2 gpt Aueq, respectively. A compilation of intercepts from the recently completed core holes considered significant to the underground potential of the South Extension is provided in Table 1 below." More
- October 12, 2010 | Item | ShareThis
Gammon Continues Production Ramp-up During Third Quarter, Production Increases 10% - "Gammon Gold Inc. ("Gammon") (TSX:GAM.to - News): is pleased to provide preliminary third quarter results for its Ocampo mine where production increased by 10% over the prior quarterly production result. All figures reported are in U.S. dollars unless otherwise indicated." More
- October 12, 2010 | Item | ShareThis
Rubicon Provides Operations and Permitting Update, Phoenix Gold Project, Red Lake, Ontario - "Rubicon Minerals Corporation (RMX:TSX / RBY:NYSE-AMEX) is pleased to provide an update of both operations and permitting at its 100% owned Phoenix Gold Project, located in the heart of the prolific Red Lake Gold District of Ontario." More
- October 12, 2010 | Item | ShareThis
- Chris Mullen, Gold Seeker Report
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-- Posted 12 October, 2010 | |
