-- Posted 23 February, 2011 | | Source: SilverSeek.com
| Close | Gain/Loss |
Gold | $1413.15 | +$13.15 |
Silver | $33.48 | +$0.61 |
XAU | 213.30 | +1.94% |
HUI | 558.92 | +1.78% |
GDM | 1653.97 | +1.82% |
JSE Gold | 2808.50 | -4.80 |
USD | 77.38 | -0.43 |
Euro | 137.47 | +0.90 |
Yen | 121.21 | +0.50 |
Oil | $98.10 | +$2.68 |
10-Year | 3.487% | +0.026 |
T-Bond | 120.8125 | -0.03125 |
Dow | 12105.78 | -0.88% |
Nasdaq | 2722.99 | -1.21% |
S&P | 1307.40 | -0.61% |
The Metals:
Gold fell a few dollars in Asia before it rebounded and saw slight gains in London, but it then accelerated even higher in the last four hours of trade in New York and ended near its late session high of $1416.40 with a gain of 0.94%. Silver climbed to as high as $33.768 and ended with a gain of 1.86% at a new 30-year closing high.
Euro gold climbed to over €1028, platinum lost $9.75 to $1773.25, and copper fell over 7 cents to about $4.27.
Gold and silver equities rose over 2% by midmorning before they pulled back a bit midday, but they then rallied back higher in late trade and ended near their earlier highs.
The Economy:
Report | For | Reading | Expected | Previous |
Existing Home Sales | Jan | 5.36M | 5.23M | 5.22M |
Tomorrow at 8:30AM EST brings Initial Jobless Claims for 2/19 expected at 410,000 and Durable Goods Orders for January expected at 2.7%. Excluding transportation, orders are expected at 0.6%. At 10AM is the New Home Sales report for January expected at 310,000.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil rose almost 3% more to as high as $100 a barrel at one point on worries over continued unrest in the Middle East.
The U.S. dollar index fell again as the euro rose “on expectations that interest rates in the euro zone and UK will rise sooner than U.S. rates.”
Treasuries erased all of their early gains and ended lower after today’s $35 billion 5-year note auction sold at a high yield of 2.19% with a bit to cover of 2.69.
The Dow, Nasdaq, and S&P fell on poor earnings reports and concerns over the Middle East.
Among the big names making news in the market today were KKR, Vornado, Saks, Ford, Lowe’s, Apple, HP, and International Paper.
The Commentary:
“Strong upmoves in both gold and silver today with both metals feeding off of the surging oil price and drawing safe haven money their way.
Gold shot up right into its next resistance band on the chart near the $1420 level before setting back some. One can see the bids flowing into the screen and as they abate somewhat, the bullion banks are able to shove price lower with their offers. When the funds engage in another round of buying, the offers get overwhelmed and back up it goes. It is a similar situation in silver.
From a technical perspective, gold has now established $1420 as the last level that needs to be taken out before a run to the lifetime high commences. I am expecting the bullion banks to fight like hell at this level to prevent that but if crude continues its charge higher, and certainly if the unrest in Libya and elsewhere spreads to Saudi Arabia, no amount of BB selling is going to hold $1420 much less prevent a run to the old high.
Downside support can be expected near the $1400 level with strong support below that back near $1385.
The open interest data from yesterday’s gold and silver trading session is a tale of competing cities. Gold open interest surged over 14,000 with heavy speculative buying competing against heavy bullion bank selling (what else is new). Silver however saw a sharp drop in open interest which plunged a bit over 5,000 with the rollover beginning in earnest as traders move out of the March into the May contract. It is going to be interesting to see how the delivery process unfolds in the March contract as we enter that period next week. The backwardation structure still exists but it seems to be loosening up a bit based on where the first three futures months are trading as I write this.
Back to the silver open interest - it is a bit tricky trying to get a read on the drop off because we had a big wave down in silver yesterday followed by a pretty decent recovery higher. Both longs and shorts were getting out. My guess is that some of the trapped shorts wasted no time in taking advantage of drop from $34 and covered furiously while they had a chance. Tomorrow’s data will give us a bit more insight into what is happening on this front. Trying to get a firm read on this stuff during a rollover period can be tricky at times.
On gold, a surge in open interest of this nature, is indicative of very keen interest on the part of Managed Money again. They look to have gold back in their crosshairs once again and if they keep returning at this kind of rate, it is not going to take them long to push the price up to the recent all time high above $1430.
The HUI is up but fading a bit from its best levels of the session here at midday. Technical indicators show a trending move is underway so dips should be expected to uncover buying support. Moving averages are all positive as well, further reinforcing the bullish picture. The one fly in the ointment is that big ugly downside bar on the chart from yesterday. It needs to be cleared to give the index a shot at running up towards the next resistance level on the chart which comes in near 580.
Well - what do you know - after acting like fools and throwing away all their corn yesterday for no reason other than their damn black boxes told them to, the hedgies are in there today buying it all back again. As I commented yesterday, the unrest in the middle East is serious but it is not going to stop the rest of the world from having to deal with a shortage of corn stocks that had shows no signs of ameliorating. If they could not shut off demand at $7.00 for corn, they sure as hell are not going to shut it off any further by discounting the price another $0.40 /bushel. End users did what we expected them to do - they stepped up and bought all the corn that the hedge funds were throwing away.
Soybeans too recovered in price and the strength in those two markets help to pull wheat up, which is also in low supply but has been dropping because some of the big wheat buying countries are in the middle East and traders are uncertain how the unrest over there might affect the government bids for wheat on the global market.
Cotton has continued its recent sell off from record levels but looks like it might be finding a temporary bottom in here. That market is enough to make all of one's hair turn grey very quickly if you happen to get on the wrong side of it, either moving up or moving down. It is merciless and extremely volatile right now but even after its three day move lower, it is still incredibly expensive meaning all of us will be seeing higher prices for cotton goods, towels and clothing, for some time. That could not come at a better time seeing that we will soon be leaving our firstborn child at the gasoline pump.
Speaking of gasoline - it was up as much as 13 cents a gallon at the wholesale level today at one point and is currently trading over 12 cents higher. Think of how this is going to affect not only all of us consumers at the pump but all the businesses that move freight or packages or anything. The cost to haul our fruit, vegetables, and meat to the grocery store is going to rise not to mention here we go with the airlines once again as aviation fuel costs rise further. What are they going to do next that they haven't already done - charge us for wearing clothes on the plane?
Stocks are broadly lower but the S&P is off its worst levels of the session helped no doubt by strength in the energy sector. Technical damage has been severe on the daily chart but the weekly still shows the market in an uptrend. Further weakness will begin to put that into doubt. The market will need to hold the 50 day moving average near 1280 to keep the bulls charging.”- Dan Norcini, More at http://www.traderdannorcini.blogspot.com/
GATA Posts:
Ralph Benko: Gold, the states, and federal monetary policy
The Statistics:
Activity from: 2/22/2011
Gold Warehouse Stocks: | 11,143,818 | -193 |
Silver Warehouse Stocks: | 102,365,168 | +7,259 |
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 | 1218.243 | 39,167,741 | US$55,183m |
London Stock Exchange (LSE) AND NYSE Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse - Xetra) | Gold Bullion Securities | 115.63 | 3,717,723 | US$5,257m |
London Stock Exchange (LSE) AND NYSE Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse - Xetra) AND NYSE Euronext Amsterdam | ETFS Physical Gold | 122.09 | 3,925,256 | US$5,548m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 14.21 | 474,703 | US$644m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 49.50 | 1,591,582 | US$2,230m |
NASDAQ Dubai | Dubai Gold Securities | 0.154 | 4,960 | US$7m |
Note: Change in Total Tonnes from yesterday’s data: SPDR subtracted 4.855 tonnes.
COMEX Gold Trust (IAU) Total Tonnes in Trust: 116.34: +0.61 change from yesterday’s data.
Silver Trust (SLV) Total Tonnes in Trust: 10,342.89: -176.16 change from yesterday’s data.
The Miners:
Gammon Gold’s (GRS) resolved labor disruption, Newmont’s (NEM) dividend, Vista Gold’s (VGZ) agreement with Midas Gold, NovaGold’s (NG) extended offer for Copper Canyon (CPY.V), Brigus Gold’s (BRD) mine progress, Pretivm’s (PVG.TO) resource increase, and Randgold’s (GOLD) restricted stock award were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Timberline | TLR +19.43% $1.29 |
2. Great Panther | GPL +8.78% $3.47 |
3. Solitario | XPL +8.01% $3.91 |
LOSERS
1. Banro | BAA -4.35% $3.08 |
2. Mines MGMT | MGN -4.11% $3.50 |
3. Alexco | AXU -2.78% $8.04 |
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:
Gammon Gold Announces New El Cubo Collective Agreement and Return to Work - "Gammon Gold Inc. ("Gammon" or the "Company") (TSX:GAM.to - News) and (NYSE:GRS - News) is pleased to announce today that the Company successfully resolved the labour disruption at its 100% owned El Cubo mine, located in Guanajuato State, Mexico." More
- February 23, 2011 | Item | ShareThis
J.A.G. Mines Ltd.: Resignation of a Director - More
- February 23, 2011 | Item | ShareThis
Newmont Declares Regular Quarterly Dividend - "The Board of Directors of Newmont Mining Corporation (NYSE:NEM - News) today declared a regular quarterly dividend of $0.15 per share of common stock, payable March 30, 2011 to holders of record at the close of business on March 15, 2011." More
- February 23, 2011 | Item | ShareThis
Canaco Drills 48.3 Metres at 7.24 Grams Per Tonne Gold at Magambazi and 8.7 Metres at 38.76 Grams Per Tonne Gold at Magambazi North - More
- February 23, 2011 | Item | ShareThis
Cap-Ex to Acquire Four Additional Iron Properties at Schefferville - More
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Redstar Appoints New Chief Financial Officer - More
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Luiri Gold Closes Transaction With Carlton Resources Plc - More
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Britannica Resources Corp.: Resignations - More
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95,000 Hectare Claim Block Staked Between Timmins Gold's San Francisco Mine and Capital Gold's El Chanate Mine - More
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Artha Resources Corporation: Argentina-New Rare Earth Property Staked - More
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Continental Precious Minerals Provides Corporate Update - More
- February 23, 2011 | Item | ShareThis
Excalibur Update on Catanava JV Project in Mexico - More
- February 23, 2011 | Item | ShareThis
Nuinsco Identifies Four Kilometre Strike Length at Talat Gadalla Gold Showing in Egypt - More
- February 23, 2011 | Item | ShareThis
Peregrine Metals Drills 164 Metres of 1.15 Grams Per Tonne Gold at Quebrada de la Mina, A New Porphyry Gold-Copper Discovery at the Altar Project, Argentina - More
- February 23, 2011 | Item | ShareThis
Consolidated Thompson Iron Mines Limited Waives Proxy Cut-Off for Its Special Meeting of Shareholders to be Held on February 25, 2011 - More
- February 23, 2011 | Item | ShareThis
Salazar Discovers New Gold Zone 300m From El Domo VMS Deposit - More
- February 23, 2011 | Item | ShareThis
James Bay Resources Update - More
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Dia Bras Provides Second Update on Construction Progress at Its Piedras Verde Mill, Bolivar Property - More
- February 23, 2011 | Item | ShareThis
White Canyon Uranium Limited: Conversion of Secured Convertible Note and Issue of Ordinary Shares - More
- February 23, 2011 | Item | ShareThis
Diamonds North Significantly Expands Gold Target on Amaruk - More
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Athena Silver Corporation Completes Drilling and Awaits Comprehensive Assay Results From Its Langtry Silver Project Drill Program - More
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Gold Bag's Focus Celtic Gold to Acquire UK's Metallum Resources PLC, Holder of Extensive Exploration Licenses - More
- February 23, 2011 | Item | ShareThis
Focus Metals Forms Graphene Patents and Technologies Joint Venture - More
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Great Western Minerals Group to Launch Steenkampskraal Exploration Program - More
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White Canyon Uranium Recommends Cash Takeover Offer by Denison Mines - More
- February 23, 2011 | Item | ShareThis
Calibre Initiates Drill Program at Riscos de Oro, Nicaragua - More
- February 23, 2011 | Item | ShareThis
International Millennium Updates Positive Results, Adds Ground at Hilda Property Sonora Mexico & Grants Option - More
- February 23, 2011 | Item | ShareThis
Touchdown Commences Drilling at Argyle Gold Project - More
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Can-Cal Closes Second Tranche of Unit Private Placement - More
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Skyline Management Appointments Deploy Exploration Strategies - More
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Duncan Park Announces Commencement of Exploration at Red Lake - More
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Kobex Confirms Transfer of Insider Position and Provides Update - More
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Gold Wheaton Gold Corp. Announces That Institutional Shareholder Services Recommends That Shareholders Vote FOR the Arrangement Resolution - More
- February 23, 2011 | Item | ShareThis
The Superior Court Approves the Plan of Arrangement Proposed by Animiki Resources Inc. - More
- February 23, 2011 | Item | ShareThis
Frontline Gold-Stock Options - More
- February 23, 2011 | Item | ShareThis
Tombstone Exploration Corporation Stakes Additional Claims - More
- February 23, 2011 | Item | ShareThis
Cadillac Provides Thierry Drilling Update - More
- February 23, 2011 | Item | ShareThis
Typhoon Exploration: New Discovery of Gold and Silver at More Than 750 Meters of the Fayolle Deposit - More
- February 23, 2011 | Item | ShareThis
SIRIOS Resources Inc.: Private Placement Announcement - More
- February 23, 2011 | Item | ShareThis
Western Pacific Completes South Lida Drilling Program, Nevada - More
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Silver Dragon Reports Additional 11.5M oz. Silver, 93.9M lbs. Lead and 132.8M lbs. Zinc at Dadi - More
- February 23, 2011 | Item | ShareThis
Mercer Gold President Rahim Jivraj Appears on BBC World Business Report - More
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IBC Advanced Alloys Reports Positive Results from Completed Airborne Survey - More
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Condor Receives $2.265M From the Exercise of Warrants - More
- February 23, 2011 | Item | ShareThis
Denison Mines Announces C$65 Million "Bought Deal" Financing - More
- February 23, 2011 | Item | ShareThis
VMS Reports 37.10 Metres of 5.60% Copper From In-Fill Hole RLD024 at Reed Lake Joint Venture - More
- February 23, 2011 | Item | ShareThis
Treasury Metals Intersects High-Grade Gold Mineralization - More
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Queenston Drilling Extends Upper Beaver Deposit with 10.8 g/t Au, 1.2% Cu Over 4.3 m and 12.9 g/t Au Over 5.0 m Permitting Initiated for Advanced Exploration - More
- February 23, 2011 | Item | ShareThis
American Energy Fields, Inc. Enters MOU With American Nuclear Resources LLC for Purchase of Colorado Plateau Mining Properties - More
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Guerrero Adds Experience, William H. Petrie Sr. Joins the Advisory Board - More
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Medusa Achieves Record Half-Year Profit - More
- February 23, 2011 | Item | ShareThis
Halo Announces North Extension of Lost Deposit, Manitoba - More
- February 23, 2011 | Item | ShareThis
Confederation Minerals Ltd. Announces New Director - More
- February 23, 2011 | Item | ShareThis
Ivernia Announces Lifting of Order and Resumption of Operations at the Magellan Mine - More
- February 23, 2011 | Item | ShareThis
Vista Gold & Midas Gold Enter Into Combination Agreement in Respect of Idaho Gold Properties - "Vista Gold Corp. ("Vista", TSX & NYSE Amex Equities: VGZ) and Midas Gold, Inc. ("Midas", a private Washington company) today announced that Midas and certain of Vista's US subsidiaries have executed a Combination Agreement ("the Combination Agreement") whereby they will contribute their respective Idaho gold assets through a share exchange and contribution to Midas Gold Corp., a new Canadian private company ("Midas Gold"). If the plan of share exchange is approved by the shareholders of Midas, and all other conditions to the transaction are satisfied or waived, Midas Gold will be owned, on a fully diluted basis, 65% by Midas and 35% by Vista." More
- February 23, 2011 | Item | ShareThis
NovaGold Extends Share Offer to Acquire Copper Canyon and Intends to Make an Application to Cease Trade Shareholder Rights Plan - "NovaGold Resources Inc. (TSX:NG - News)(AMEX:NG - News) announced today that it has extended its offer to acquire all of the issued and outstanding common shares of Copper Canyon Resources Ltd. (TSX-V:CPY - News) ("Copper Canyon") until 5:00 pm (Eastern time) on March 8, 2011. Copper Canyon shareholders who tender to the offer will receive 0.0425 of a NovaGold share. All offer conditions remain unchanged." More
- February 23, 2011 | Item | ShareThis
Brigus Gold Completes New Ventilation Raise and Prepares for Commercial Production from Underground Mining at Black Fox - "Brigus Gold Corp. (“Brigus” or the “Company”) (TSX:BRD.to - News) (NYSE Amex: BRD) is making steady progress towards the commencement of commercial production from underground operations at its Black Fox Mine in the Timmins Gold District, Ontario, Canada." More
- February 23, 2011 | Item | ShareThis
Pretium Resources Inc.: Snowfield Resources Increase - "Pretium Resources Inc. (TSX:PVG - News) ("Pretivm") is pleased to report mineral resources at its wholly-owned Snowfield Project of 25.9 million ounces of Measured and Indicated gold resources and 9.0 million ounces of Inferred gold resources at a cut-off grade of 0.30 grams of gold-equivalent per tonne. The Snowfield Project is located 65 kilometers north of the town of Stewart, British Columbia." More
- February 23, 2011 | Item | ShareThis
Randgold Resources -- Restricted Stock Award: Non Executive Directors - "Randgold Resources Limited announces that in terms of the company's remuneration for non-executive directors approved by shareholders at the Annual General Meeting on 4 May 2010, an award of 1 200 restricted shares is made each year to each non-executive director. The price of the 2011 restricted stock calculation was the Nasdaq Global Select Market closing price on 3 January 2011, being US$81.60." More
- February 23, 2011 | Item | ShareThis
- Chris Mullen, Gold Seeker Report
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-- Posted 23 February, 2011 | |
