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Gold Seeker Closing Report: Gold and Silver End Near Unchanged While Stocks Drop On Greece

By: Chris Mullen, Gold-Seeker.com



-- Posted 15 June, 2011 | |

 

Close

Gain/Loss

Gold

$1524.60

+$1.00

Silver

$35.27

-$0.14

XAU

193.62

-0.52%

HUI

506.56

-0.56%

GDM

1470.90

-0.65%

JSE Gold

2401.97

+11.01

USD

75.60

+1.22

Euro

141.68

-2.71

Yen

123.45

-0.86

Oil

$94.81

-$4.56

10-Year

2.973%

-0.126

T-Bond

126.78125

+1.59375

Dow

11897.19

-1.48%

Nasdaq

2631.46

-1.76%

S&P

1265.42

-1.74%

 
 

 

The Metals:

 

Gold fell almost $10 to $1513.93 by a little after 8AM EST before it shot up to as high as $1534.32 in the next hour and a half of trade, but it then drifted back lower into the close and ended with a gain of just 0.07%.  Silver fell to as low as $34.80 before it surged up to $35.953 by late morning in New York, but it then fell back off a bit in the last couple hours of trade and ended with a loss of 0.4%.

 

Euro gold rose to about €1076, platinum lost $21 to $1769.50, and copper fell a few cents to about $4.12.

 

Gold and silver equities fell a little over 1% by midday and remained near that level for the rest of trade.

 

The Economy:

 

Report

For

Reading

Expected

Previous

CPI

May

0.2%

0.1%

0.4%

Core CPI

May

0.3%

0.1%

0.2%

Empire Manufacturing

June

-7.8

10.0

11.9

Net Long-Term TIC Flows

April

$30.6B

-

$24.0B

Industrial Production

May

0.1%

0.2%

0.0%

Capacity Utilization

May

76.7%

77.0%

76.7%

NAHB Housing Market Index

June

13

16

16

 

Tomorrow at 8:30AM EST brings Initial Jobless Claims for 6/11 expected at 421,000, Housing Starts for May expected at 540,000, Building Permits expected at 548,000, and the first quarter Current Account Balance expected at -$130 billion.  At 10AM is the Philadelphia Fed survey for June expected at 7.0.

 

The Markets:

 

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

 

Oil briefly pared early losses after the Energy Information Administration reported that crude inventories fell 3.4 million barrels, gasoline inventories rose 600,000 barrels, and distillates fell 100,000 barrels, but it ultimately fell to new session lows in late trade and ended with an over 4% loss on the day.

 

The U.S. dollar index rose as the euro fell markedly on an apparent deadlock about how to resolve Greece’s debt problems.  Violent protests over government cutbacks by thousands of people in Athens intensified recent concerns.

 

Treasuries rose as the Dow, Nasdaq, and S&P fell almost 2% on disappointing economic data and worries over Greece.

 

Among the big names making news in the market today were Pandora, Citigroup, J&J, BMW, TerreStar and Dish Network, and Chevron.

 

The Commentary:

 

Growing fears of a Greek government debt default have sent the Euro plummeting in today's trading session. It has also fueled a mad rush back into US bonds after the bottom fell out of that same market in yesterday's session. As I mentioned in my post last evening, the US bond market was liable to reverse course in a heartbeat as soon as the fear index rose once again. That is exactly what happened.

Investors fear a domino-like contagion effect upon the big European banks holding a substantial portion of Greek debt. Combine that with an Empire State Manufacturing Index reading of negative 7.8 (anything below zero shows contraction) plus a 0.3% rise in the core CPI reading (the sharpest rise since 2008), and stocks were hammered while the long bond regained most if not all of its huge losses from yesterday.

What we have here in the US seems more and more like the stagflation of the late 1970's - a slowing economy in which prices continue to rise - a notable exception being that wages are going nowhere. None of this is positive for consumer spending moving forward. While US companies that do a large portion of business overseas are showing good earnings, it is not translating into growth at a sufficient pace to put a dent in the lousy job market.

Oddly enough, I read some news this morning that housing prices in the Silicon Valley are surging as new found wealth from the recent technology IPO's has fueled what looks like another one of those insanely stupid buying binges with all the new rich kids tripping over themselves to bid up the price of their newest status symbol. In some cases they are bidding ABOVE the asking price. It was that same sort of imbecilic psychology that helped contribute to the housing bubble in many communities across the nation back in 2004-2007. I am sure the realtors there are extremely happy but I have to shake my head in bewilderment that many in this nation never seem to learn a single thing.

I think that is what happens when money is made too easily and too quickly instead of systematically increased year over year. Don't get me wrong, I begrudge no one’s success, but there is something that happens to those who find themselves suddenly extremely wealthy. They lose a sense of the value of wealth and how difficult it is to make it and hold onto it. Show me someone who has made a lot of money and then lost it, only to make it back through hard work and I will show you someone who is far more careful of it and far more frugal than those who meet with sudden success. More often than not, it goes straight to their head. It is said that youth is wasted on the young and foolish. I think the same thing could be said of riches on the young and foolish.

Back to the markets however - the collapse in the Euro has sent the US Dollar surging higher as risk trades from yesterday are being yanked off today. This is why I keep saying to traders - do not let any single day's price action fool you into thinking a trend is developing and spur you into placing large positions on. Only the dipsticks that run the hedge funds do that sort of thing. (As you can tell I have nothing but contempt for the majority of hedge fund managers - they are the worst traders on the planet). Smart traders will look at this schizophrenic market behavior and reduce position size or just get out altogether and enjoy some hobbies. Let these other fools shred each other to pieces. You can still trade but just trade in size that will not seriously hurt you if you are on the wrong side of the daily price action.

As the risk trades come off, the equity markets sink ever lower and the commodity markets see further downside. The S&P 500 is getting perilously close to the 1250 level, the level at which it goes negative for the year and at which it threatens to put in a double top on the longer term weekly chart. Should it do so, consumer confidence will fall off the charts. Consumer spending will suffer as the psychological impact of losses in their 401K and other retirement accounts, combined with home values that are also underwater, dampens the desire for big ticket items and forces further retrenchment on that part of the US economic engine. All this will do is build further pressure on the Fed to act. And thus the addiction to monetary stimulus continues until the junkie is hopelessly ruined.

Earlier in the session, gold had recaptured broken support near $1530 and looked like it was attempting to get its footing there. As the equity markets dropped near midsession, the unwind in the risk trades derailed it and took it lower towards $1520. I might add here however that in terms of both the Euro and the British Pound, gold is holding very firm. That should keep it supported in US Dollar terms and prevent a sharper selloff such as what we are seeing in the grains, fiber and energy markets.

As can be expected in this sort of environment, the Continuous Commodity Index is taking a sharp hit and has sunk below 650. As long as it stays above 640 it is still range bound however. A decline through that level which cannot be recaptured quickly will not be good news for commodity bulls as it will reflect the return of the deflation mindset. Rest assured that Bernanke and company are closely watching this chart also.

The Dollar's rally has it strongly back above the 50 day moving average. What is more important than that however is the fact that is has now reached the 100 day moving average. It fell below this critical moving average in January of this year and has been unable to put in a close above it since that time. Should it manage to push past 76 one has to give the move higher respect from a technical perspective. If it can push above 76.50 and hold those gains, we could see the Dollar make a run towards 78 in short order.- Dan Norcini, More at http://www.traderdannorcini.blogspot.com/

 

GATA Posts:

Gold Standard Institute: Bankers aren't the problem; funny money is

Thom Calandra: Mining stock rally in the works

 

The Statistics:

Activity from: 6/13/2011

Gold Warehouse Stocks:

11,294,568

-20,606

Silver Warehouse Stocks:

98,816,119

-1,999,340

 

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

1200.050

38,582,816

US$59,010m

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

Gold Bullion Securities

115.35

3,708,632

US$5,680m

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

ETFS Physical Gold

126.23

4,058,350

US$6,185m

Australian Stock Exchange (ASX)

Gold Bullion Securities

14.21

474,104

US$700m

Johannesburg Securities Exchange (JSE)

New Gold Debentures

48.11

1,546,846

US$2,366m

NASDAQ Dubai

Dubai Gold Securities

0.154

4,954

US$8m

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

 

COMEX Gold Trust (IAU) Total Tonnes in Trust: 141.32 - No change from yesterday’s data.

 

Silver Trust (SLV) Total Tonnes in Trust: 9,665.52: -42.46 change from yesterday’s data.

 

The Miners:

 

Randgold’s (GOLD) awards, IAMGOLD’s (IAG) further investment in Avnel, New Gold’s (NGD) drilling plan, Paramount’s (PZG) drill results, ECU Silver’s (ECU.TO) first quarter results, and MAG Silver’s (MVG) first quarter results were among the big stories in the gold and silver mining industry making headlines today.

 

WINNERS

1.  Great Panther

GPL +8.28% $3.27

2.  MAG Silver

MVG +2.02% $9.59

3.  Exeter

XRA +1.94% $4.74

 

LOSERS

1.  Northern Dynasty

NAK -7.13% $8.60

2.  Vista Gold

VGZ -5.28% $2.69

3.  Golden Star

GSS -5.08% $2.24

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:

Pitchblack Enters LOI Regarding Mike Lake Property - More
- June 15, 2011 | Item | ShareThis


Rio Alto Drills 134 Metres of 2.29 Grams of Gold Per Tonne - More
- June 15, 2011 | Item | ShareThis


Trevali Mining Shares Listed on the Lima Stock Exchange - More
- June 15, 2011 | Item | ShareThis


Petaquilla Minerals Ltd.: Rating of Panama Upgraded by Fitch Ratings - More
- June 15, 2011 | Item | ShareThis


Wolverine Exploration Announces Update on Cache River Exploration - More
- June 15, 2011 | Item | ShareThis


Seafield to Host Open Webcast With New Management - More
- June 15, 2011 | Item | ShareThis


Red Mile Minerals Issues Shares for Services - More
- June 15, 2011 | Item | ShareThis


Full Metal and Antofagasta Minerals S.A. Announce that Drilling has Commenced at Pyramid Cu-Au-Mo Porphyry Deposit - More
- June 15, 2011 | Item | ShareThis


Woulfe Mining Drill Results Support Early Start-Up Proposal - More
- June 15, 2011 | Item | ShareThis


Stellar Pacific Ventures Resumes Drilling on Monster Lake, Chibougamau Quebec - More
- June 15, 2011 | Item | ShareThis


Argentex Announces Withdrawal of Financing - More
- June 15, 2011 | Item | ShareThis


Canada Fluorspar Announces Strategic Agreement With Arkema Resulting in a CDN$83.5 Million Investment to Fund the St. Lawrence Fluorspar Project - More
- June 15, 2011 | Item | ShareThis


Geodex Commences 2011 Exploration on Cumberland & Jake Lee Projects for Rare Earth Potential - More
- June 15, 2011 | Item | ShareThis


Orbite Submits an Application to List its Shares on the TSX - More
- June 15, 2011 | Item | ShareThis


Chalice and ENAMCO Reach Agreement Terms for Joint Ownership of the Zara Project - More
- June 15, 2011 | Item | ShareThis


Barkerville Appoints Ross Hollinger as Mine Manager For Bonanza Ledge and QR Mines - More
- June 15, 2011 | Item | ShareThis


Augustine Ventures Completes Confirmation Drilling Program - More
- June 15, 2011 | Item | ShareThis


Velocity Minerals Ltd. Announces Resumption of Geochemical Survey at Orogrande - More
- June 15, 2011 | Item | ShareThis


CuOro Awards Airbourne Geophysical Contract - More
- June 15, 2011 | Item | ShareThis


Yellowhead Mining Retains Renmark Financial Communications Inc. - More
- June 15, 2011 | Item | ShareThis


Avanti Adds KORES to SeAH Letter of Intent Forming a New Consortium That Will Assist With Kitsault Molybdenum Mine Debt Financing - More
- June 15, 2011 | Item | ShareThis


Rockland Completes Earn-In on Schefferville Gold Property - More
- June 15, 2011 | Item | ShareThis


Midland Exploration and North American Palladium Discover a New Ni-Cu-Pge Zone on the Laflamme Project - More
- June 15, 2011 | Item | ShareThis


Integra Gold Provides Corporate Update - More
- June 15, 2011 | Item | ShareThis


Cadan Encounters Further High Grade Gold Assays as it Reaches South Vein System - More
- June 15, 2011 | Item | ShareThis


Cap-Ex Ventures Ltd.: Multiple DSO and Magnetite Targets Identified at Block 103 and Redmond - More
- June 15, 2011 | Item | ShareThis


Starcore Earns $5.18 million from Mine Operations for Third Quarter of 2011 - More
- June 15, 2011 | Item | ShareThis


Lithium One Commences Pumping Tests at Sal de Vida Lithium-Potash Brine Project - More
- June 15, 2011 | Item | ShareThis


Zone Resources Inc. Announces Additional Historical Drilling Results, Labrador Trough, Quebec - More
- June 15, 2011 | Item | ShareThis


Lithium Exploration Group Retains TEN Associates, LLC as Investor Relations Representative - More
- June 15, 2011 | Item | ShareThis


Ucore Comments on Dysprosium Price Gains - More
- June 15, 2011 | Item | ShareThis


Tirex Appoints Mr. Fred Tejada as VP Operations and Exploration - More
- June 15, 2011 | Item | ShareThis


QRS Reports High Grade Results from Sampling of Stockpiles at Judith Project, Mexico - More
- June 15, 2011 | Item | ShareThis


Pershimco First Drill Results on New Zones Show Positive Potential Upside with 183 Meters at 1.00 g/t Gold Equivalent at Cerro Quema (Panama) - More
- June 15, 2011 | Item | ShareThis


Positive Results From Halo 2011 Exploration Program - More
- June 15, 2011 | Item | ShareThis


Mercator Reports First Quarter Results - More
- June 15, 2011 | Item | ShareThis


Purepoint Initiates Field Program Utilizing CAMIRO Technology - More
- June 15, 2011 | Item | ShareThis


Cogitore Increases Mineral Resource on Scott Lake Project by 47 Percent - More
- June 15, 2011 | Item | ShareThis


Strategic Metals Ltd. Announces Commencement of Exploration and Drilling at Midas Touch and Silver Range Projects - More
- June 15, 2011 | Item | ShareThis


Foran Completes Phase One Program at McIlvenna Bay with High Grade Massive Sulphide Intercept & Provides Program Summary - More
- June 15, 2011 | Item | ShareThis


Balmoral Intersects Potential Bulk Tonnage Gold Target on Detour Gold Trend, Martiniere East, Quebec - More
- June 15, 2011 | Item | ShareThis


Sunridge Gold Announces Drill Results from Emba Derho Deposit, Asmara Project, Eritrea - More
- June 15, 2011 | Item | ShareThis


Virginia Plans a CA$17 Million Exploration Budget for 2011 - More
- June 15, 2011 | Item | ShareThis


Garrison International Appoints Paul Roberts as Independent Director - More
- June 15, 2011 | Item | ShareThis


Brookmount Enters Into a Joint Venture Agreement With Pana - Minerales S.A. to Explore and Bring Into Production Its Mercedes 100 Project - More
- June 15, 2011 | Item | ShareThis


Largo Announces Purchase of Final 30% Option on the Northern Dancer Project - More
- June 15, 2011 | Item | ShareThis


Vaaldiam Reports 2011-Q1 Financial Results - More
- June 15, 2011 | Item | ShareThis


Corex Drills 23.9m of 1.65 g/t Au at Santana Property, Mexico - More
- June 15, 2011 | Item | ShareThis


Ateba Provides Exploration and Corporate Update - More
- June 15, 2011 | Item | ShareThis


Habanero Resources Inc. Increases Land Position in the Yukon - More
- June 15, 2011 | Item | ShareThis


Ur-Energy Set to Join Russell 3000 Index - More
- June 15, 2011 | Item | ShareThis


Ivernia Confirms Large Mineralised System and High Grade Zone in the Wolf Prospect at the Prairie Downs Base Metals Project - More
- June 15, 2011 | Item | ShareThis


Breakwater Agrees to Offer from Nyrstar NV - More
- June 15, 2011 | Item | ShareThis


High River Gold Reports First Quarter 2011 Results - More
- June 15, 2011 | Item | ShareThis


Delta Uranium Issues Shares for Debt - More
- June 15, 2011 | Item | ShareThis


Randgold Resources - Awards granted - "Under the Randgold Resources Limited Restricted Share Scheme, awardsover 38,456 ordinary shares in Randgold Resources Limited ("Shares")were granted to Dr D M Bristow and awards over 8,121 Shares weregranted to Mr G P Shuttleworth on 13 June 2011. The awards granted toboth Dr Bristow and Mr Shuttleworth will vest as to one third on 13June 2014, a further one third on 13 June 2015 and the final third on13 June 2016 to the extent the performance conditions are satisfied." More
- June 15, 2011 | Item | ShareThis


ECU Silver Releases First Quarter Results for 2011 - "ECU Silver Mining Inc. (TSX:ECU - News) reports that it has recently released its consolidated financial statements for the first quarter ended March 31, 2011 (Q1 2011) and the related management's discussion and analysis of financial position and results of operations (MD&A). The Company increased revenues by 88% and cash flows from mining operations by 149% over the same period ending March 31, 2010 (Q1 2010). The Q1 2011 financial statements were prepared in accordance with International Financial Reporting Standards (IFRS)." More
- June 15, 2011 | Item | ShareThis


IAMGOLD Announces Further Investment in Avnel - "IAMGOLD Corporation ("IAMGOLD" or the "Company") (TSX:IMG - News)(NYSE:IAG - News)(BOTSWANA: IAMGOLD) announced that, today, it acquired 5,000,000 common shares of Avnel Gold Mining Limited ("Avnel") (TSX:AVK - News), as the result of a purchase of common shares from an Avnel shareholder, on a prospectus exempt basis." More
- June 15, 2011 | Item | ShareThis


MAG Silver Reports First Quarter Financial Results - "At March 31, 2011, the Company had working capital of $37,688,517 (compared to $24,218,741 at March 31, 2010), including cash on hand of $35,456,632 (compared to $24,251,678 at March 31, 2010). Accounts receivable at March 31, 2011 totalled $2,332,080 (2010: $2,069,616) and was comprised primarily of value added taxes repayable to the Company by the Government of Mexico. Current liabilities at March 31, 2011 amounted to $1,549,528 (2010: $2,338,710) and are attributable primarily to accrued legal and exploration (drilling) expenses. The Company's net loss for the three months ended March 31, 2011 amounted to $1,427,461 (2010: $2,160,888). The decrease in the net loss compared to the prior period is primarily due to the decreased share based payment expense in the current period of $493,796 (March 31, 2010 - $1,159,401)." More
- June 15, 2011 | Item | ShareThis


New Gold Targets Over 40,000 Metres of Drilling at Blackwater Project in Second Half of 2011 - "New Gold Inc. ("New Gold") (TSX:NGD.to - News)(NYSE AMEX:NGD) today announces its plan for the continued exploration of the recently acquired Blackwater Project in central British Columbia. Following acquisition of the Blackwater Project on June 1, 2011, New Gold is now planning to significantly increase the exploration program at the project and is targeting 40,000 to 50,000 metres of drilling in the second half of 2011. New Gold is budgeting $20 million for this exploration program." More
- June 15, 2011 | Item | ShareThis


Paramount Gold and Silver Reports New Drill Results Expand San Francisco Deposit and Discover New Higher Grade Veins at Its San Miguel Project in Mexico - "Paramount Gold and Silver Corp. (AMEX:PZG - News)(TSX:PZG - News)(Frankfurt:P6G - News)(WKN: A0HGKQ) ("Paramount Gold") announced today new assay results from its ongoing drilling program at the San Miguel project in Mexico have extended the bulk-mineable San Francisco deposit and discovered a new, closely-spaced swarm of higher grade gold-silver veins named Santa Clara." More
- June 15, 2011 | Item | ShareThis


- Chris Mullen, Gold Seeker Report

 

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© 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.


-- Posted 15 June, 2011 | |


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