-- Posted 3 June, 2011 | |

The Metals:

Gold fell $7.60 to $1524.00 in London before it jumped up to $1545.69 in midmorning New York trade and then pared its gains a bit heading into midday, but it then rallied back higher in afternoon trade and ended near its earlier high with a gain of 0.63%.  Silver fell to as low as $35.10 by about 9AM EST, but it then rallied back higher into the close and ended with a loss of just 0.25%.

Euro gold fell to about €1054, platinum gained $3.50 to $1814, and copper climbed 5 cents to about $4.13.

Gold and silver equities waffled near unchanged and ended mixed.

The Economy:

The BLS net birth/death adjustment added 206,000 payrolls to May’s data.  Private Payrolls rose 83,000.

All of this week’s other economic reports:

Next week’s economic highlights include Consumer Credit on Tuesday, the fed’s Beige Book on Wednesday, Initial Jobless Claims, the Trade Balance, and Wholesale Inventories on Thursday, and Export and Import Prices and the Treasury Budget on Friday.

The Markets:

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

Oil ended slightly lower on worries over waning energy demand.

The U.S. dollar index fell and treasuries rose on disappointing jobs data that sent the Dow, Nasdaq, and S&P roughly 1% lower.

Among the big names making news in the market Friday were Newell Rubbermaid, Wells Fargo, and Wal-Mart.

The Commentary:

“This morning's abysmal US payrolls data caps off a 'weak' in which economic data releases confirmed that the US economy is headed for a "double dip". A pitiful 54,000 jobs were supposedly created in the month of May with the unemployment rate moving up to 9.1%.

While we market watchers and traders have come to expect news like this to drive off the risk trades and send safe haven flows into the US Dollar, no such thing happened. I mentioned earlier this week that the Dollar's tepid response to the weak ADP numbers was interesting and bared watching. Looking back that was now a harbinger of things to come.

What has apparently happened is that the US economic data has become so rotten, that traders are not moving money into the US Dollar even on news that otherwise would have driven safe haven flows in its direction. The reason is simple - market players are now convinced that the string of consecutive poor news is leaving the hawks at the Fed with no arguments for their case and has brought the doves there into the ascendancy. In other words, interest rates in the US are going to be forced to stay at ultra low levels for a long time to come and while QE2 is coming to an end this month, further monetary accommodation is coming forthwith. At least that is what the market is attempting to signal to the Fed as to its wishes.

The news initially caused a sell off in stocks taking the S&P futures below important chart support near the 1300 level. It has since recovered and moved above it as I write this but as to how it is going to fare the rest of the day is unclear. A close below this level and the stock market chart gets even uglier. A stock market that enters a bearish downtrend is going to be at the forefront of the minds of the FOMC as they consider their next move on the monetary front.

Back to the Dollar however. It is now trading well below the 50 day moving average and has fallen back below all of the major shorter term moving averages as well. The 10 dma has made a bearish downside crossover of the 20 dma and both look to be getting ready for a bearish downside crossover of the 50 dma. In short, the technicals have completely soured for the greenback and it is once again flirting with the 74 level on its daily chart. A breach of this level that sees the Dollar close underneath it and it is going back down to 73, a level which is extremely, and I do mean, 'extremely' critical from a technical support level.

Meanwhile the combined weakness in the Dollar along with true safe haven flows into gold, is pushing the metal back up and away from its chart support near $1530. If it can claw back towards $1550 and push through that level, it is going to make a run towards $1575 very quickly. The key will be the $1550 level.”- Dan Norcini, More at http://www.traderdannorcini.blogspot.com/

GATA Posts:

Senate bill would force CFTC to act on position limits

The Statistics:

Activity from: 6/02/2011

Global Gold ETF Holdings

[WGC Sponsored ETF’s]

Note: No change in Total Tonnes from yesterday’s data.

COMEX Gold Trust (IAU) Total Tonnes in Trust: 137.88 -0.03 change from yesterday’s data.

Silver Trust (SLV) Total Tonnes in Trust: 9,936.96 -4.37 change from yesterday’s data.

The Miners:

WINNERS

LOSERS

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:

- Chris Mullen, Gold Seeker Report

- Would you like to receive the Free Daily Gold Seeker Report in your e-mail? Click here

Additional Resources for today’s Gold Seeker Report can be found:

• http://www.capitalupdates.com
• http://www.goldseek.com
• http://www.silverseek.com
• http://www.goldreview.com 

© Gold Seeker 2011

Note: This article may be reproduced provided the article, in full, is used and mention to Gold-Seeker.com is given.

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.

Latest Articles Gold Seeker Closing Report: Gold and Silver Fall Over 2% More 13 December, 2011 Gold Seeker Closing Report: Gold and Silver Fall Almost 3% 12 December, 2011 Gold Seeker Weekly Wrap-Up: Gold and Silver Fall Slightly on the Week 9 December, 2011 Gold Seeker Closing Report - Article Archive List