-- Posted 14 October, 2010 | | Source: SilverSeek.com
| Close | Gain/Loss |
Gold | $1376.50 | +$7.10 |
Silver | $24.45 | +$0.57 |
XAU | 208.36 | -0.61% |
HUI | 530.33 | -0.60% |
GDM | 1603.77 | -0.62% |
JSE Gold | 2558.68 | -26.81 |
USD | 76.55 | -0.54 |
Euro | 140.75 | +1.11 |
Yen | 122.71 | +0.46 |
Oil | $82.79 | -$0.21 |
10-Year | 2.495% | +0.064 |
T-Bond | 132.4375 | -1.00 |
Dow | 11094.57 | -0.01% |
Nasdaq | 2435.38 | -0.24% |
S&P | 1173.81 | -0.36% |
The Metals:
Gold climbed to a new record high of $1386.93 in Asia before it fell back to almost unchanged at $1370.55 by about 9:30AM EST, but it then bounced back higher in the last four hours of trade and ended with a gain of 0.52% at a new record closing high. Silver surged to a new 30-year high of $24.893 in Asia before it fell back to $24.045 in early New York trade, but it also bounced back higher in late trade and ended with an impressive gain of 2.39%.
Euro gold fell to about €979, platinum gained $0.75 to $1701.75, and copper remained at about $3.81.
Gold and silver equities saw slight gains around 11AM EST, but they then fell back off midday and ended with modest losses.
The Economy:
Report | For | Reading | Expected | Previous |
Initial Claims | 10/09 | 462K | 450K | 449K |
PPI | Sep | 0.4% | 0.2% | 0.4% |
Core PPI | Sep | 0.1% | 0.1% | 0.1% |
Trade Balance | Aug | -$46.3B | -$44.5B | -$42.6B |
Banks seize 288K homes in Q3, but challenges await Yahoo
Mortgage rates hit decades-low of 4.19 percent Yahoo
Tomorrow at 8:30AM EST brings CPI for September expected at 0.2%, Core CPI expected at 0.1%, the NY Fed - Empire Manufacturing Survey for October expected at 5.75, and Retail Sales for September expected at 0.4%. Excluding autos, sales are still expected at 0.4%. At 9:55 is Michigan Sentiment for October expected at 68.5, at 10AM is the Business Inventories report for August expected at 0.5%, and at 2PM is the Treasury Budget for September expected at -$33.5 billion. Bernanke will also be giving a speech on monetary policy early tomorrow morning.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil rose in early trade on more dollar weakness and OPEC’s pledge to hold output steady, but it then fell back off and ended with a slight loss after the Energy Information Administration reported that crude inventories fell 400,000 barrels, gasoline inventories fell 1.8 million barrels, and distillates fell 300,000 barrels.
The U.S. dollar index fell after “Singapore's central bank increased the slope of the band in which it maintains the Singapore dollar, propelling the currency to a record high.”
Treasuries fell after today’s $13 billion 30-year note auction drew a yield of 3.852% with a bid to cover of 2.49. Overall, this week’s auctions have been seen as very poor, and today’s was perceived as the worst.
The Dow, Nasdaq, and S&P fell on mostly poor economic data and worries about this week’s poor bond auctions, but hopes of quantitative easing continue to limit any major losses.
Among the big names making news in the market today were Occidental Petroleum, Yahoo, Aon, Goldman Sachs, Sprint Nextel, and Apollo.
The Commentary:
“Dear CIGAs,
Watching the overnight action, particularly as trading moved into early European dealings, one would have thought that the wheels were coming off of the global economic bus. The Dollar was collapsing, the Euro was soaring, gold was hitting record highs above $1,388, silver was threatening to take out $25 and copper, platinum and palladium were all putting in huge upside moves. That is until later in the morning in Europe where the sleepyheads, arriving late to the party, were convinced that Chicken Little was wrong (someone tell that to the cotton market where it is again locked limit up and threatening to derail the entire textile mill industry). Gold slowly began coming off its highs and faded as it came into New York moving down more than $15 off its best overnight level at one point. Silver followed suit and faded considerably off its peak.
Apparently, there still remains plenty of willing and eager fresh short sellers judging by the continued rise in open interest in both futures markets. Open interest in gold surged nearly 11,000 contracts and in silver it increased by nearly 1,700. Clearly there are still more than a few short sellers around who are trying to pick tops in both these markets. As of yet, I have not seen any evidence of large scale short covering occurring although I expect that those weak-handed shorts who are exiting are getting replaced by the larger, strong-handed bullion banks and swap dealers. The key to both markets is the continued willingness of buyers to refrain from any sizeable liquidation as well as committing fresh funds to both. If they do not flinch and stand their ground, the shorts are going to suffer more pain.
The upside targets in silver of $25 and in gold, the $1390 level, have been effectively reached and that more than likely spurred some short term oriented longs to book some profits prior to the weekend, especially as Bernanke is on slate to fill the air with more words tomorrow. Some guys may suspect that he will attempt to tamp down expectations of the SIZE of the next QE and thereby give shorts in the Dollar an excuse to cover. That might put some pressure on the metals for the day so the thinking is why not take some money off of the table and wait for another dip lower to come back in at a lower level. The market might oblige them; it might not. Dips in both markets have been shallow and fleeting of late.
The HUI went on earlier in the session to set another high but then it too faded as the metals came off their best levels. I like the fact that it is holding above 520 and looks poised to put in a very strong weekly close. Last week it managed a good close above 520, but just barely. Should it hold above 520 tomorrow, it would one up that performance and get a second consecutive close above that massive resistance level. Such a development would be strongly bullish on the charts and confirm more trouble ahead for the shorts. For today – it seems to be attracting buying near 530.
The Dollar appears to be seeing some short covering as the session wears on. It is trying to poke its head back above 77 after crashing through that level in overnight trading. I still suspect that we are seeing smoothing operations occurring in the greenback although it will never be admitted. The only way the US can keep from stirring up the hornet’s nest further is to not allow a total plunge in the Dollar. A controlled descent, while still engendering ill will, would assuage some of the concerns of those nations whose currencies are bearing the brunt of this managed decline. It will be interesting to see if the Dollar can get back above 77 before the week is over.
Corn and wheat, both very strong overnight, are fading also as we move towards the close of the session. I am not sure whether some of this, as well as the move off the worst levels in the Dollar, is related to the move lower in the equities. The latter started off the day looking rather well but have begun to give up the ghost. That generally has resulted in “safe haven” Dollar buying (It is hard for me to even write those words in such close proximity to each other) but the lemmings cannot be expected to unlearn old habits without some pain. Regardless, it might be inducing a bit of money coming out of the commodity sector although only to a light degree. If the equities recover before the day’s end and we see these commodity markets that have come off their best levels, begin moving higher again, we will know what is occurring.
Bonds are lower today based on what best I can tell of nervousness over what Bernanke might say tomorrow. Now that everyone and his dog is fully expecting QE2, some are worried that it might not be a huge amount and that the market will be disappointed after factoring in a windfall of fresh liquidity. Some longs are slipping money off the table in that pit. If Bernanke sounds incredibly bearish tomorrow and stokes further fears of an economy sliding back into stagnation, it should not be long before the bond bulls re-emerge. We’ll see what the 21rst century version of the Oracle at Delphi pronounces.
Crude oil just cannot seem to stay above the $83 level for any length of time on a consecutive closing basis. It keeps flirting with it but runs out of steam whenever it nears $84 and then falls back. However, it has thus far not set back to any substantial degree which makes it look like the next trending move will be to the upside.
The CCI (Continuous Commodity Index) is very strong. Demand from the developing world remains quite robust and is keeping a solid floor beneath the complex even as the US economy flounders.
In some totally and completely unrelated news, the CME Group announced today that it would begin listing and trading RAINFALL futures on November 1 of this year. Yep – you heard it right – now you can bet on whether or not it will rain and maybe make money doing it! Poor Tom Skilling (Chicago’s premier meteorologist whose every word is hung upon by grain traders from about April onward through August). Now almost as soon as he utters his forecasts, the hedge fund algorithms will be slamming the rain futures market before he even gets to go to put up his maps.
Let’s see, they’ve already got futures contracts on temperature, snowfall, frost and hurricanes; now comes this. About the only thing missing is thunder and lightning. I have put in a request that they offer sunrise and sunset futures because as we all are so painfully aware, there is a risk element involved here as to whether or not the sun will rise in the East and set in the West. With Quantitative Easing coming from the Fed, there is a chance that it could cause the Earth to reverse the direction that it spins on its axis and heaven knows, we need to be hedged against such a development. And one wonders why America is in decline. What’s next – futures contracts on dead cow entrails?”- Dan Norcini, More at JSMineset.com
GATA Posts:
U.S. aims to foist its debts on others, Chinese economist warns
Somebody jumps through hoops to get real gold out of an ETF
GATA's Adrian Douglas interviewed about gold, silver market manipulation
Chile rescues last of the trapped miners
Writer can't get government to answer about gold, can't figure out why
The Statistics:
Activity from: 10/13/2010
Gold Warehouse Stocks: | 11,090,072 | -32 |
Silver Warehouse Stocks: | 112,613,837 | -21,137 |
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 | 1285.200 | 41,320,452 | US$56,734m |
London Stock Exchange (LSE) AND NYSE Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse - Xetra) | Gold Bullion Securities | 127.18 | 4,089,029 | US$5,624m |
London Stock Exchange (LSE) AND NYSE Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse - Xetra) AND NYSE Euronext Amsterdam | ETFS Physical Gold | 129.47 | 4,162,426 | US$5,725m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 14.21 | 475,380 | US$629m |
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 2.127 tonnes and the LSE ETFS added 0.13 tonnes.
COMEX Gold Trust (IAU) Total Tonnes in Trust: 101.68: +0.42 change from yesterday’s data.
Silver Trust (SLV) Total Tonnes in Trust: 10,125.17: +39.55 change from yesterday’s data.
The Miners:
Almaden’s (AAU) closed private placement, Claude’s (CGR) third quarter production, Fortuna’s (FVI.V) third quarter production, Sabina’s (SBB.V) assay results, SilverCrest’s (SVL.V) dore shipment, Silver Quest’s (SQI.V) earned interest in the Capoose claim, and Silver Standard’s (SSRI) drill results were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Kimber | KBX+19.98% $1.20 |
2. Timberline | TLR +7.62% $1.35 |
3. Endeavour | EXK +5.05% $4.99 |
LOSERS
1. Taseko | TGB -10.01% $6.20 |
2. Banro | BAA -5.69% $2.82 |
3. Gold Reserve | GRZ -4.70% $1.42 |
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:
NWM Closes Oversubscribed Equity Financing for CAD $5.2M - More
- October 14, 2010 | Item | ShareThis
White Canyon Uranium Limited Finalizes Sales Agency Agreement with Denison Mines Corp. - More
- October 14, 2010 | Item | ShareThis
Challenger to Commence Nevada Drilling - More
- October 14, 2010 | Item | ShareThis
Adex Shareholders Approve Great Harvest Transaction - More
- October 14, 2010 | Item | ShareThis
Lateegra Appoints New Director and New Vice President - More
- October 14, 2010 | Item | ShareThis
LINCOLN MINING RECEIVES POSITIVE COLUMN LEACH RESULTS FOR PINE GROVE, NEVADA - More
- October 14, 2010 | Item | ShareThis
Ensurge Announces Preliminary Corporate Agreement with Brazilian Based Gold Mine - More
- October 14, 2010 | Item | ShareThis
PREMIER SIGNS OPTION AGREEMENTS TO CREATE THE REDGOLD PROJECT - More
- October 14, 2010 | Item | ShareThis
Fortuna Reports Production Results for Third Quarter - "Fortuna Silver Mines Inc. (TSX:FVI.to - News) is pleased to announce production figures for third quarter of 2010 from the Caylloma Mine located in Arequipa, Peru. Year to date, Caylloma has produced 1.42 million ounces of silver and is on track to exceed the annual silver production forecast of 1.7 million ounces. The 1,500 tpd underground San Jose Mine located in Oaxaca, Mexico is scheduled to commence production on the third quarter of 2011 and an update on on-going construction activities will be issued in the upcoming days." More
- October 14, 2010 | Item | ShareThis
Sunridge Gold Announces Private Placement - More
- October 14, 2010 | Item | ShareThis
Almaden Minerals Ltd. Announces Closing of Private Placement - "Almaden Minerals Ltd. (the "Company") (TSX:AMM - News)(AMEX:AAU - News)announces that it has closed the Flow Through Private Placement consisting of 81,200 Common Shares at a price of $3.50 per Share. The hold period in Canada on the securities expires on February 14, 2011." More
- October 14, 2010 | Item | ShareThis
Sabina Gold & Silver Continues to Extend Umwelt Discovery Along Strike at Back River Gold Project, Nunavut - "Sabina Gold & Silver Corp. (TSX:SBB - News) is pleased to announce further significant assay results from drilling at its Umwelt discovery at the Goose property on its 100% owned Back River gold project in Nunavut, Canada." More
- October 14, 2010 | Item | ShareThis
Advanced Explorations-Announces Appointment of New Officer - More
- October 14, 2010 | Item | ShareThis
Hawthorne Announces Non-Brokered Private Placement to Raise Up to $10,000,000 - More
- October 14, 2010 | Item | ShareThis
Minemakers Limited: Strategic Investment In BCD Resources NL and its Tasmania Gold Mine - More
- October 14, 2010 | Item | ShareThis
Energy Fuels Acquires Additional DOE Lease in Colorado; Contracts for Consulting Support from Nuclear Industry Veteran - More
- October 14, 2010 | Item | ShareThis
Guinness Exploration Announces Letter of Intent to Venture Its Charlotte Project - More
- October 14, 2010 | Item | ShareThis
Newcastle Options Crowshore Property Patents Along PC Gold's Core Mine Trend - More
- October 14, 2010 | Item | ShareThis
Uranium North Reports High Gold and Silver at Mallery, Drill Targets Identified - More
- October 14, 2010 | Item | ShareThis
Notice: DPM Third Quarter 2010 Results - More
- October 14, 2010 | Item | ShareThis
Indigo Commences Work on Moule Gold Permit in Burkina Faso - More
- October 14, 2010 | Item | ShareThis
Rockgate Intersects 6.0 m @ 1.24% U3O8 and 34.8 g/tonne Ag at Falea Project, Mali - More
- October 14, 2010 | Item | ShareThis
Claim Post Resources Commences Exploration Program - More
- October 14, 2010 | Item | ShareThis
SilverCrest Announces Santa Elena's First Dore Shipment - "SilverCrest Mines Inc. (the "Company") (TSX-V:SVL - News) is pleased to announce that the first shipment of dore bars from the Santa Elena Mine has occurred, just a month after the Company announced its first metals pour. The inaugural shipment included 383 kilograms of combined metals, comprised of approximately 368 ounces of gold and 10,034 ounces of silver with a combined estimated value of US$700,000." More
- October 14, 2010 | Item | ShareThis
Huldra Silver Inc. Samples Up to 2920g/t Ag or 85.16oz/t Ag in New Mineralized Zone at Treasure Mountain - More
- October 14, 2010 | Item | ShareThis
Alto's Partner Pacific North West Capital Commences Exploration Program on the Destiny Gold Project Drill Program Slated for November, 2010 - More
- October 14, 2010 | Item | ShareThis
Siga Resources Inc. (OTCBB: SGAE) Announces Acquisition of BC Placer Property - More
- October 14, 2010 | Item | ShareThis
Cadillac Ventures Inc.: San Eduardo Assays 3.81% Cu in Recent Spanish Drilling - More
- October 14, 2010 | Item | ShareThis
Continental Nickel Increases its Interest to 75% in the Nachingwea Nickel Sulphide Project in Tanzania - More
- October 14, 2010 | Item | ShareThis
Uranerz Reports Uranium Resources for Reno Creek Project - More
- October 14, 2010 | Item | ShareThis
Goldeye Commences New Drilling Program at Shining Tree-10,000 Metres Planned - More
- October 14, 2010 | Item | ShareThis
Rare Earth Metals Reports 1.35% TREO Over 45.0 Meters from Initial Drill Results from Its Letitia Lake/Red Wine Property in Labrador - More
- October 14, 2010 | Item | ShareThis
Riverstone Commences Airborne Geophysical Survey - More
- October 14, 2010 | Item | ShareThis
Ventana Receives Commitments for $65 Million Private Placement - More
- October 14, 2010 | Item | ShareThis
West Kirkland Mining Commences Drilling on Goldstorm Property - More
- October 14, 2010 | Item | ShareThis
Renforth Resources Engages Investor Relations Group - More
- October 14, 2010 | Item | ShareThis
Uragold Completes the Acquisition of a 425 Square Kilometre Gold Anomaly - More
- October 14, 2010 | Item | ShareThis
Salazar Provides Corporate Update - More
- October 14, 2010 | Item | ShareThis
Beaufield Resources Inc.: Focus on Tortigny, 10,000 Metre Drill Contract Signed - More
- October 14, 2010 | Item | ShareThis
Halo Commences Drilling at West Red Lake - More
- October 14, 2010 | Item | ShareThis
SEMAFO Intersects 27.77 g/t Au Over 4 Meters at Samira Hill - More
- October 14, 2010 | Item | ShareThis
Osisko Reports 2.14 g/t Au Over 107 Metres at New Barnat Extension - More
- October 14, 2010 | Item | ShareThis
Update on DIOS U33 Diamond-Gold 2010 Program - More
- October 14, 2010 | Item | ShareThis
Exploration Program to Commence at Oremex's El Sol Silver Project - More
- October 14, 2010 | Item | ShareThis
African Gold Group, Inc. Step-Out Drilling Yields Discovery of New Gold Zone Located 4.3 Km North of Zone 1, Kobada, Mali - More
- October 14, 2010 | Item | ShareThis
Dalradian Intercepts 1 Metre of 59.88 g/t of Gold at Tyrone Project - More
- October 14, 2010 | Item | ShareThis
Golden Predator Intercepts 137.50 g/t Gold over 1.52 m from Contact Zone, Clear Creek Property, Yukon - More
- October 14, 2010 | Item | ShareThis
Nevada Copper Announces Director Appointment - More
- October 14, 2010 | Item | ShareThis
Pacific North West Capital Commences Exploration Program on the Destiny Gold Project, Québec Drill Program Slated for November 2010 - More
- October 14, 2010 | Item | ShareThis
Miranda Gold Signs Letter of Intent with Agnico-Eagle on Ester Dome - More
- October 14, 2010 | Item | ShareThis
TITAN URANIUM REPORTS ON 2010 GEOPHYSICAL EXPLORATION PROGRAMS FROM ATHABASCA BASIN PROPERTIES - More
- October 14, 2010 | Item | ShareThis
Orosur Mining Inc. Stock Options Grant - More
- October 14, 2010 | Item | ShareThis
Tournigan Drilling Adds High-Grade Uranium Mineralization at Kuriskova - More
- October 14, 2010 | Item | ShareThis
Pelangio Exploration Engages Investor Relations Consultant - More
- October 14, 2010 | Item | ShareThis
Eastplats Reports Record Production for the Quarter Ended September 30, 2010 - More
- October 14, 2010 | Item | ShareThis
Northair Plans Additional Drilling at La Cigarra Silver Project, Mexico - More
- October 14, 2010 | Item | ShareThis
Ashburton Announces up to 1,180 g/t Gold from Ongoing Upper Vein Rock Samples at Deep Creek, Nevada - More
- October 14, 2010 | Item | ShareThis
Crocodile Gold Identifies Significant Resource Increase at Pine Creek-Excellent Potential for Low Cost Production Near Existing Union Reefs Mill as Early as Q1 - More
- October 14, 2010 | Item | ShareThis
Timmins Gold Corp.: 15,680 Ounces of Gold Sold in Second Quarter of Production - More
- October 14, 2010 | Item | ShareThis
Medusa Mining Limited: Notice of Annual General Meeting - More
- October 14, 2010 | Item | ShareThis
Medusa Mining Limited: Constitution - More
- October 14, 2010 | Item | ShareThis
Medusa Mining Limited: 2010 Annual Report - More
- October 14, 2010 | Item | ShareThis
Bonterra Receives Channel Sample Assays Up To 7.27 gpt Gold On Eastern Extension Property - More
- October 14, 2010 | Item | ShareThis
RockBridge Appoints CEO - More
- October 14, 2010 | Item | ShareThis
Vena Announces Significant NI 43-101 Uranium Resource at Macusani, Peru - More
- October 14, 2010 | Item | ShareThis
Kirkland Lake Gold Inc.: Result of Annual Meeting - More
- October 14, 2010 | Item | ShareThis
Claude Resources Inc. Increases Third Quarter Gold Production by 9% - "For the quarter ended September 30, 2010, Claude processed 62,242 tonnes at 6.76 grams per tonne of ore to produce 12,931 ounces of gold (Q2 2010 - 11,902 ounces of gold from 46,071 tonnes at 8.44 grams of gold per tonne). Produced ounces for the period increased by nine percent compared to Q2 2010. Year to date production of 34,054 ounces of gold, increase by nearly five percent over the 32,528 ounces of gold produced for the same period in 2009." More
- October 14, 2010 | Item | ShareThis
Silver Quest Earns 100% Interest in Capoose Claim, Drilling Continues - "Silver Quest Resources Ltd. (TSX VENTURE:SQI - News; the "Company") is pleased to announce that it has incurred expenditures in excess of $1,667,000 and has therefore earned an additional 40% interest in the Capoose claim from Bearclaw Capital Corporation (BRL.V) bringing the Company's interest to 100%. Bearclaw Capital will retain a 2.25% net smelter return royalty interest. The Company has the right, exercisable at any time, to purchase four-ninths (i.e., 1%) of the royalty interest from Bearclaw Capital for $2,000,000." More
- October 14, 2010 | Item | ShareThis
Silver Standard Resources Inc.: Snowfield Drilling Concludes for 2010, Gold Zone Still Open - "Silver Standard Resources Inc. (TSX:SSO - News)(NASDAQ:SSRI - News) is pleased to report that all results from 17,976 meters of diamond drilling at the Snowfield Project have now been received. The 2010 program was successful in expanding known mineralization to the south and southeast. Most of the newly defined mineralization is in areas previously classified as waste in the Preliminary Assessment announced in September 2010 (see news release dated September 13, 2010). The wholly-owned Snowfield Project is located 65 kilometers north of the town of Stewart in British Columbia, Canada." More
- October 14, 2010 | Item | ShareThis
- Chris Mullen, Gold Seeker Report
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-- Posted 14 October, 2010 | |
