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Gold Seeker Closing Report: Gold and Silver Close Slightly Higher

By: Chris Mullen, Gold-Seeker.com


-- Posted 9 February, 2011 | | Source: SilverSeek.com

 

Close

Gain/Loss

Gold

$1364.40

+$1.30

Silver

$30.28

+$0.07

XAU

206.29

-1.67%

HUI

530.83

-1.75%

GDM

1568.69

-1.61%

JSE Gold

2656.58

-5.51

USD

77.60

-0.35

Euro

137.30

+1.01

Yen

121.37

-0.08

Oil

$86.71

-$0.23

10-Year

3.642%

-0.083

T-Bond

118.3125

+1.00

Dow

12239.89

+0.06%

Nasdaq

2789.07

-0.29%

S&P

1320.88

-0.28%

 
 

 

The Metals:

 

Gold fell $1.70 to $1361.40 in Asia before it chopped its way up to $1366.90 in midmorning New York Trade and then fell all the way to $1357.80 by about 11:30AM EST, but it then rallied back higher in the last couple of hours of trade and ended near its earlier high with a gain of 0.1%. Silver rallied to as high as $30.51 by about 8AM EST before it fell back to $30.06 by late morning in New York, but it also rallied back higher in late trade and ended with a gain of 0.23%.

 

Euro gold fell to about €994, platinum lost $2.50 to $1851.00, and copper fell 5 cents to about $4.52.

 

Gold and silver equities fell over 1% by late morning before they rebounded slightly in early afternoon trade, but they then fell to new lows in the last couple of hours of trade and ended with almost 2% losses.

 

The Economy:

 

Ron Paul holds first hearing on Federal Reserve  washingtonpost

Republicans grill Bernanke over inflation threat  Yahoo

Bernanke says job growth, inflation still too low  Reuters

Bernanke encouraged by sharp drop in unemployment  Yahoo

Geithner Says U.S. Economy Getting `Stronger,' More Confident  Bloomberg

Home loan demand drops, rates at 10-month high  Reuters

Home-Price Drop Leaves 27% of U.S. Owners Underwater on Loans, Zillow Says  Bloomberg

 

Tomorrow at 8:30AM EST brings Initial Jobless Claims for 2/05 expected at 410,000.  At 10AM is the Wholesale Inventories report for December expected at 0.7% and at 2PM is the Treasury Budget for January expected at -$59.5 billion.

 

The Markets:

 

Charts Courtesy of http://finance.yahoo.com/

 

Oil erased early gains and ended slightly lower after the Energy Information Administration reported that crude inventories rose 1.9 million barrels, gasoline inventories rose 4.66 million barrels, and distillates rose 288,000 barrels.

 

The U.S. dollar index fell along with interest rates on Bernanke’s testimony.

 

Treasuries rose on worries over inflation and the fed’s lack of concern about it.  Bonds added to gains after today’s $24 billion 10-year note auction sold at a high yield of 3.665% with a bid to cover of 3.23.

 

The Dow, Nasdaq, and S&P traded mostly slightly lower on Bernanke’s grim economic outlook.

 

Among the big names making news in the market today were NYSE and Deutsche Boerse, CSC, JPMorgan, Nissan, Fannie and Freddie, AIG, Northrop, St. Joe, Allstate, and Coca-Cola.

 

The Commentary:

 

“I particularly enjoyed this headline that originated out the hearings featuring Fed Chairman Ben Bernanke – being questioned about the overall policy of QE, the Chairman stated:

 

“all bond buys MAY (emphasis mine) have created up to 3 million jobs”.

 

Yes indeed they MAY have done just that – then again, they MAY NOT have done anything of the sort. I think I could also assert with the same sort of complete confidence, preparing a nice brisket on my backyard smoker MAY have also contributed to the creation of multiple jobs in the beef industry. My question to the Chairman would be:

 

“Can you assert with complete confidence that the enormous amounts of money expended under QE1 and now currently underway with QE2 did specifically create that number of jobs that you just asserted?”

 

If he answered in the affirmative, then we could produce the actual numbers.

 

Let’s see – under QE1 where the Fed was mopping up the alphabet soup derivatives and then Treasuries, the sum involved was in the general vicinity of $1.5 TRILLION  ($1.25 in MBS and $300 billion in Treasuries). Let’s do the math – that means each of those 3 million jobs took only $500,000 to create. Wow – is that a deal or what?

 

Perhaps we are being a bit too hard on the Chairman – let’s use the numbers associated with QE2 instead, $600 billion. If we can create another 3 million jobs each of those jobs will have cost a mere $200,000 to create. Leave it to the feds to come up with numbers like that and have the temerity to congratulate themselves.

 

For those of you who want to argue that these jobs will result in their holders paying taxes back to the government thus lowering the overall cost, I will grant you that but you are still left with the unfortunate fact that the amount in taxes paid will certainly not cover the overall costs incurred in creating the job thus still leaving the citizenry in a hole.

 

Perhaps the citizens would have gotten a better deal on their children and grandchildren’s money, if the Fed had just written a check to every single family in the nation for $34,711. They would have spent the same amount under both QE’s and I suspect we would have had a lot more consumer spending than we have gotten by purchasing rotten derivatives from the hairbrained banks who manufactured them and more government IOU’s.

 

This is the particular line that had me falling on the floor and pulling my hair out:

 

“We have been very careful not to distort the bond market”

 

Technically, true but the answer would be more accurate if he stated:

 

“we’ve been very careful not to distort the bond market but our primary dealers and same sharp hedge fund managers have had no such scruples. They were just front running our purchases for the last two months making obscene profits in the process. However, since last week, things are not going so well for us. Suddenly our game plan is in the toilet.”

 

Here is yet another one:

 

“The Dollar has been looking more attractive versus other currencies”

 

Factfinder:  US DOLLAR CHART

 

And then lastly:

 

“Fed policy does not add one more bushel of wheat to the world supply” (I am paraphrasing that one but it contains the basic premise that it is not the Fed’s fault that commodity prices are rising.

 

That is once again technically true but to deny that Fed policy has resulted in an enormous surge in SPECULATIVE DEMAND for hard assets is yet again, playing fast and loose with the facts. Take a chart of the CCI and overlay the implementation of both QE’s and one can easily see the connection between the two. I will grant the Chairman that there has been a strong weather element in the rising cost of food. That coupled with increasing demand from developing and emerged markets has indeed been a strong factor in the rise in price of the grains and other commodities in general, yet for the Fed Chairman to seemingly lay the entire blame for the rise in commodity prices on factors outside of his control is striking for its audacity. Note to Ben: SPECULATIVE DEMAND is real and cannot be overlooked when attempting to ascertain factors behind price rises and it is a FACT that demand from this quarter has been fanned by QE as investors have looked to tangible assets to shield their wealth from the accompanying currency debauchment that inevitably results from unlimited money printing.- Dan Norcini, More at http://www.traderdannorcini.blogspot.com/

 

GATA Posts:

Warren Bevan: Technical analysis does work for gold

More credit for GATA for busting silver market rig

GATA credited for exposing gold, silver market manipulation

J.S. Kim: Technical, fundamental analysis no good in gold and silver

 

The Statistics:

Activity from: 2/08/2011

Gold Warehouse Stocks:

11,400,866

-48,596

Silver Warehouse Stocks:

103,230,462

+177,837

 

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

1228.560

39,499,440

US$53,911m

London Stock Exchange (LSE) AND NYSE Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse - Xetra)

Gold Bullion Securities

121.34

3,901,253

US$5,311m

London Stock Exchange (LSE) AND NYSE Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse - Xetra) AND NYSE Euronext Amsterdam

ETFS Physical Gold

134.41

4,321,452

US$5,883m

Australian Stock Exchange (ASX)

Gold Bullion Securities

14.21

474,778

US$622m

Johannesburg Securities Exchange (JSE)

New Gold Debentures

50.36

1,619,256

US$2,156m

NASDAQ Dubai

Dubai Gold Securities

0.154

4,961

US$7m

Note: Change in Total Tonnes from yesterday’s data: SPDR subtracted 0.304 tonnes.

 

COMEX Gold Trust (IAU) Total Tonnes in Trust: 110.84 - No change from yesterday’s data.

 

Silver Trust (SLV) Total Tonnes in Trust: 10,370.22 - No change from yesterday’s data.

 

The Miners:

 

IAMGOLD’s cash reception, Ivanhoe’s (IVN) board appointments, Kimber’s (KBX) grant of options, Brigus Gold’s (BRD) new CFO, and Silvercorp’s (SVM) dividend were among the big stories in the gold and silver mining industry making headlines today.

 

WINNERS

1.  Northgate

NXG +1.77% $2.88

2.  Golden Minerals

AUMN +1.03% $22.17

3.  Claude

CGR +0.81% $2.50

 

LOSERS

1.  Northern Dynasty

NAK -14.37% $17.64

2.  US Gold

UXG -6.01% $7.19

3.  Timberline

TLR -5.88% $1.12

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:

Diamond Fields Initiates US Action Against Liberia On DFI Gold Property - More
- February 09, 2011 | Item | ShareThis


Creso Announces Additional Drill Results at the Shining Tree Project - More
- February 09, 2011 | Item | ShareThis


Council of Ministers Approves Granting of Krumovgrad Mining Concession - More
- February 09, 2011 | Item | ShareThis


IAMGOLD Receives US$49 Million Cash From La Arena Option - "IAMGOLD Corporation ("IAMGOLD" or "the Company") (TSX:IMG - News)(NYSE:IAG - News)(BOTSWANA: IAMGOLD) today announced that Rio Alto Mining Limited ("Rio Alto") has exercised its option to acquire 100% of IAMGOLD's Peruvian copper/gold project for US$49 million cash." More
- February 09, 2011 | Item | ShareThis


Rio Alto Announces Acquisition of 100% of La Arena Project - More
- February 09, 2011 | Item | ShareThis


Windarra Minerals Ltd. (WRA.V) to Drill Mishi Leases Gold Targets - More
- February 09, 2011 | Item | ShareThis


Eaglecrest Initiates Exploration Program in the Middle Cauca Belt, Colombia - More
- February 09, 2011 | Item | ShareThis


Geodex Announces 2011 Plans - More
- February 09, 2011 | Item | ShareThis


Bonterra's Expands Eastern Extension Next to Current Drilling - More
- February 09, 2011 | Item | ShareThis


UPDATE: Raptor Technology Group Signs Long Term Contract for Mineral Recovery - More
- February 09, 2011 | Item | ShareThis


Great Western Minerals Group Appoints Mohamed Madhi as Rareco President - More
- February 09, 2011 | Item | ShareThis


Copper One Announces TSXV Approval on Option and Joint Venture with Cartier - More
- February 09, 2011 | Item | ShareThis


Mesa Uranium Retains North American Exploration Inc. for the Green Energy Lithium Project - More
- February 09, 2011 | Item | ShareThis


Hard Creek Nickel Corporation: Metallurgical Report Confirms Significantly Improved Flotation Performance - More
- February 09, 2011 | Item | ShareThis


Colorado Rare Earths, Inc. Appoints James Hedrick To Advisory Board - More
- February 09, 2011 | Item | ShareThis


Supreme Resources Ltd.: TAS Drilling Intersects Significant Copper Values at Copper Mountain - More
- February 09, 2011 | Item | ShareThis


Robex Resources Inc./Nampala, Impressive Results: 1.47 g/t Over 57 Meters, Including 14 Meters at 3.28 g/t - More
- February 09, 2011 | Item | ShareThis


Nebu Intersects Significant Gold Mineralization in Initial Drill Holes at Beehive Property, Timmins - More
- February 09, 2011 | Item | ShareThis


NioGold Mining Corporation to Use CARDS Technology on its Projects in Abitibi - More
- February 09, 2011 | Item | ShareThis


Prodigy and MPH Resources Sign Option Agreement on Magino Extension - More
- February 09, 2011 | Item | ShareThis


Carpathian Completes Mill & Crusher Acquisition, for the RDM Gold Project, Brazil - More
- February 09, 2011 | Item | ShareThis


Alto Group Holdings Announces Acquisition of Ground Penetrating Radar System - More
- February 09, 2011 | Item | ShareThis


Linear Metals Signs Option Agreement to Acquire Large Gold and Base Metal Property Package in Western Kenya - More
- February 09, 2011 | Item | ShareThis


Victoria Announces Grant of Stock Options - More
- February 09, 2011 | Item | ShareThis


First Gold Exploration Inc.: Drilling Leads to New Tantalum Discovery on Pivert/Rose - More
- February 09, 2011 | Item | ShareThis


Millrock and Inmet Commence First Drilling Program on San Jose and Dry Mountain Projects, Arizona - More
- February 09, 2011 | Item | ShareThis


Golden Share Samples up to 52.4 oz/t Silver on Berens River, Ontario, Canada - More
- February 09, 2011 | Item | ShareThis


Riverstone Reports High Grades in Core Drilling at Kao - More
- February 09, 2011 | Item | ShareThis


RX Exploration Inc. Extends Strike and Down Dip Extent of the Charly & Xmas Veins at Drumlummon Mine, Montana - More
- February 09, 2011 | Item | ShareThis


Brixton Metals Appoints Mr. Hughes as VP Exploration - More
- February 09, 2011 | Item | ShareThis


Vantex Completes the Acquisition of the Galloway Project - More
- February 09, 2011 | Item | ShareThis


Rugby Commences Exploration Program on Mabuhay Project, Philippines and Interceptor Project, Argentina - More
- February 09, 2011 | Item | ShareThis


Yale to Option the Carol Property - More
- February 09, 2011 | Item | ShareThis


GTSO Eyes Billions in S. Korean Rare Earth Earmarks - More
- February 09, 2011 | Item | ShareThis


Goldstone Provides Hardrock Joint Venture Exploration Update - More
- February 09, 2011 | Item | ShareThis


Energizer Resources Announces Closing of Additional Funds - More
- February 09, 2011 | Item | ShareThis


Sandstorm Resources Announces Commercial Production at Luna Gold's Aurizona Gold Mine - More
- February 09, 2011 | Item | ShareThis


Luna Gold Announces Commercial Production at Aurizona - More
- February 09, 2011 | Item | ShareThis


Vior Inc.: Positive Drilling Results at Douay - More
- February 09, 2011 | Item | ShareThis


Glen Eagle Resources Inc.: Corporate Update - More
- February 09, 2011 | Item | ShareThis


Continental Nickel Reports High Nickel Recoveries Are Possible at the Sleeping Giant Nickel-Copper Sulphide Zone on the Nachingwea Nickel Project, Tanzania - More
- February 09, 2011 | Item | ShareThis


Eloro Resources Launches Two-Phase 10,000 m Diamond Drilling Program at Simkar Gold Property, Val-d'Or, Quebec - More
- February 09, 2011 | Item | ShareThis


Sierra Resource Group, Inc. Advises Investors to Rely Exclusively on Factual Information Provided by the Company - More
- February 09, 2011 | Item | ShareThis


Inmet Options Evrim's Cumobabi and Suaqui Verde Projects in Sonora, Mexico - More
- February 09, 2011 | Item | ShareThis


Puma Exploration: 10.1% Cu and 54 g/t Ag over 7.5 meters at Turgeon Copper Project - More
- February 09, 2011 | Item | ShareThis


Romios Announces Continued Expansion of Mineralization at Its Dirk Property in British Columbia, Including a Chip Sample With 1.23% Cu, 1.00 g/t Au - More
- February 09, 2011 | Item | ShareThis


Serengeti Announces Appointment of New Director - More
- February 09, 2011 | Item | ShareThis


Lions Gate Metals Announces $5 Million Financing - More
- February 09, 2011 | Item | ShareThis


Colorado Goldfields Inc. Announces Innovative Dry Stack Plan Toward Successful Pride of the West Mill Permitting - More
- February 09, 2011 | Item | ShareThis


Energy Fuels' Pinon Ridge Uranium Mill Radioactive Materials License Challenged by Sheep Mountain Alliance - More
- February 09, 2011 | Item | ShareThis


Candente Gold Discovers New, Bulk Tonnage Gold Target on the El Oro Project in Mexico - More
- February 09, 2011 | Item | ShareThis


Ivanhoe Mines Announces Appointments of Rio Tinto Executives Andrew Harding and Kay Priestly to Company's Board of Directors - "Robert Friedland, Executive Chairman and Chief Executive Officer of Ivanhoe Mines (TSX:IVN - News)(NYSE:IVN - News)(NASDAQ:IVN - News), announced today that Andrew Harding and Kay Priestly, senior executives of Rio Tinto's copper division, have been appointed to the Ivanhoe Mines Board of Directors." More
- February 09, 2011 | Item | ShareThis


Kimber Announces Grant of Options - "Kimber Resources Inc. (NYSE Amex:KBX, TSX:KBR) announces that the Company has granted 870,000 options to directors and officers, 140,000 options to staff and 140,000 options to certain consultants of the Company at an exercise price of C$1.38, the closing price on the TSX on the day preceding the date of the grant. Options represent an important component of Kimber's compensation program, aimed at attracting and retaining important contributors to Kimber's growth objectives." More
- February 09, 2011 | Item | ShareThis


Brigus Gold Appoints New Chief Financial Officer - "Brigus Gold Corp. (“Brigus” or the “Company”) (TSX:BRD.to - News)(NYSE Amex: BRD) announces that Dana Hatfield will be appointed Chief Financial Officer following the retirement of Melvyn Williams, the Company’s current Senior Vice President and Chief Financial Officer." More
- February 09, 2011 | Item | ShareThis


Silvercorp Announces Q3 Dividend of CAD$0.02 - "Silvercorp Metals Inc. (TSX:SVM - News)(NYSE:SVM - News) ("Silvercorp" or the "Company") today announced that its Board of Directors has declared its third quarter fiscal 2011 dividend of CAD$0.02 per share, to be paid on or before April 21, 2011 to shareholders of record at the close of business on March 31, 2011. The dividends are considered eligible dividends for Canadian tax purposes." More
- February 09, 2011 | Item | ShareThis


- Chris Mullen, Gold Seeker Report

 

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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.


-- Posted 9 February, 2011 | |


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