-- Posted 12 July, 2011 | |
| Close | Gain/Loss |
Gold | $1562.30 | +$13.90 |
Silver | $35.71 | UNCH |
XAU | 210.19 | +2.72% |
HUI | 545.91 | +3.09% |
GDM | 1592.13 | +3.22% |
JSE Gold | 2431.20 | +46.42 |
USD | 76.04 | +0.03 |
Euro | 139.74 | -0.58 |
Yen | 125.94 | +1.29 |
Oil | $97.43 | +$2.28 |
10-Year | 2.908% | -0.009 |
T-Bond | 126.46875 | +0.28125 |
Dow | 12446.88 | -0.47% |
Nasdaq | 2781.91 | -0.74% |
S&P | 1313.64 | -0.44% |
The Metals:
Gold fell as much as $7.85 to $1540.55 by about 7:15AM EST, but it then rallied back higher throughout most of trade in New York and ended near it last minute high of $1562.59 with a gain of 0.9%. Silver fell to as low as $34.776 before it also rallied back higher, but it still ended at just unchanged on the day.
Both metals are also extending higher in afterhours access trade in reaction to the release of FOMC minutes from the fed’s last meeting. – “A few members noted that, depending on how economic conditions evolve, the committee might have to consider providing additional monetary stimulus, especially if economic growth remained too slow to meaningfully reduce the unemployment rate in the medium run.”
Euro gold jumped to a new record high at almost €1116, platinum gained $14.05 to $1732.25, and copper gained a couple of cents to about $4.38.
Gold and silver equities rose about 3% by midafternoon and remained near that level for the rest of the day.
The Economy:
Report | For | Reading | Expected | Previous |
Trade Balance | May | -$50.2B | -$44.0B | -$43.6B |
FOMC minutes from the fed’s last meeting showed that “policy makers disagreed on whether additional monetary stimulus will be needed even if the outlook for economic growth remains weak.”
Tomorrow at 8:30AM EST brings Import and Export Prices for June and at 2PM is the Treasury Budget for June expected at -$45.0 billion. Bernanke will also be testifying before the House Financial Services committee on Wednesday and the Senate Banking Committee on Thursday.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil rose on a rosy demand outlook from OPEC as the U.S. dollar index reversed early gains and ended near unchanged following the release of the fed’s minutes.
Treasuries ended modestly higher as the Dow, Nasdaq, and S&P struggled to find gains on continued worries about the world economy, but the possibility of further stimulus from the fed briefly gave some strength to the market.
Among the big names making news in the market today were Alcoa, Cisco, RIM, MBIA, News Corp., Citrix Systems, and Pimco.
The Commentary:
“Sovereign debt fears out of the Euro Zone are filling investors' minds with fear and trepidation as many believe a contagion effect is inevitable. News concerning Italy has sent stock market bulls scurrying for cover today and has emboldened the bears who have been mercilessly squeezed out over the last two weeks once the S&P was miraculously resuscitated from the 1250 level on the price charts. The thinking is that a rash of credit downgrades might commence hitting large bank balance sheets in particular which would have a similar effect on Europe as the collapse of Lehman did on the US back three years ago to this very month.
Risk trades went out the window today as most commodities were jettisoned along with equities while the bonds and the Dollar were both sharply higher as the latter two were beneficiaries of a safe haven flow. With the Euro looking shaky, traders were willing to buy the greenback in spite of the lack of any serious effort on the part of the current US administration to come to terms with the runaway costs of entitlement programs, which is where the serious money is going to have to be cut in order to get federal spending under control.
An interesting thing happened however to the gold market - it completely ignored the reversal of the risk trades and actually functioned exactly like a safe haven market is supposed to function in such an environment. It shot up through the critical technical resistance level at $1550 and while it did fall below that level briefly as silver get slammed, it clawed its way right back above that level and ended today's (Monday) trading in New York firmly above $1550. That bodes very well for the future prospects of the metal as the bears have been able to successfully block its upward progress there for three separate attempts over the last 6 weeks. Given the strength in the Dollar, this is excellent price action as it translates into higher prices for gold measured across a wide variety of various major currency terms.
What we are now watching to see is whether or not it can attract buyers on any dip back down below that level or whether it sinks below $1550 and fails to regain its footing and incurs speculative long liquidation instead of dip buying. If it can hold $1550 and plow through the last technical level shown on the chart ($1560), it will be at its all time high very quickly. As it stands now, it has already made a new all time record high when priced in terms of the Euro and in the British Pound. That strength will aid the metal and SHOULD attract dip buyers as it is extremely difficult to be bearish on any commodity when it is making new all time highs when priced in terms of other currencies. What adds another element of interest to this current drama is the fact that gold is moving higher during the summer doldrums. Quite frankly, a fair contingent of traders are off of vacation with their families right now. Unless they are checking in regularly, they might well be surprised when they return.
The fly in the ointment is the weakness in the mining shares which succumbed to the selling that hit the broad equity markets. I would prefer to see those things moving higher in conjunction with the metal but no dice. The price action today confirms the 210 level in the XAU as the next formidable resistance level through which the index will have to climb in order to presage better prices for the sector lay just ahead. There is some technical price support down near the 200 level.
Silver today (Monday) was viewed as a risk trade as it sank sharply lower alongside of copper and the energies and softs. That market is so schizophrenic in nature that one never knows from day to day how it is going to be regarded by traders. Is it a safe haven or a risk asset? The answer depends on whatever the hedge funds say it is on any given day. See the chart for the technical posture.
The US Dollar was sharply higher today (Monday) on a safe haven bid but was once again unable to successfully clear overhead resistance centered near the 76.50 level on the USDX chart. This level is taking on increasing significance therefore as sellers have been able to hold it from breaking through even when volume has been good. IF, and this is a big "IF", the Dollar can punch through this level and hold its gains, it will have managed a breakout to the upside and should be able to garner enough buying momentum from trapped shorts to initially take it up towards 77.50 - 78.00. Should it do so, we will want to see how gold responds to any such event. If gold does what it did today and ignores Dollar strength, the Gold bears are in trouble.
The S&P 500 dropped down and bounced lightly off of its 50 day moving average. It looks heavy here as it is still reeling from the abysmal jobs number from last Friday but today had to contend with traders running out of equities and into bonds. It will need to climb through 1350 to set up a run for 1375. On the downside there is additional support near and just below the 1300 level.
My last comment for today is a sure fire trade for the summer. Get ready - BUY FROZEN YOGURT at the market. Can't miss on that one!”- Dan Norcini, More at http://www.traderdannorcini.blogspot.com/
“Despite some serious turbulence the last couple of days, it’s hard to make a technical bearish argument for the Dow Jones Industrial Average. It was no surprise to see it run into resistance near its May highs and was overbought when the debt fears hit late last week.- One technical concern would be the failure of a “Dow Theory” buy signal (Transports made a new high but Indus trials didn’t). While fundamentals are overall bearish, there’s little technical evidence to suggest the U.S. stock market is about to plunge sharply. It would come as no surprise that the “Don’t Worry, Be Happy” crowd that roams Wall Street and CNBC-TV end up spinning the market higher as the summer heat melts the growling bears. I remain comfortable in my chicken coop.
- I’ve spoken often about how useful the 150-Day M.A. chart for gold continues to show the “Mother” of all gold bull markets remains fully intact. Gold is $1,550 and you can cut the overall bearishness or dis-heartenment towards gold with a knife. I LOVE IT WHEN A PLAN COMES TOGETHER! Look for new, nominal high before the leaves turn color.
- I believe the lows for mining and exploration shares have been put in and one of the better rallies in years can take place into the Fall/Winter period.
- Going against the crowd may prove worthy when it comes to bonds. For the riskiest speculators/gamblers, being long Europe bonds and short U.S. is becoming a temptation that may be too hard to resist in the coming days.”- Peter Grandich, Grandich Letter
GATA Posts:
Bulletin: Ron Paul to focus on presidential campaign and will leave Congress next year
James Turk: Something more important than the debt limit
Ambrose Evans-Pritchard: German 'nein' leaves Italy and Spain in turmoil
The Statistics:
Activity from: 7/11/2011
Gold Warehouse Stocks: | 11,414,068 | +32,234 |
Silver Warehouse Stocks: | 101,568,958 | +595,647 |
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 | 1205.414 | 38,755,260 | US$60,080m |
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$5,791m |
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$6,308m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 14.21 | 473,959 | US$718m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 48.10 | 1,546,387 | US$2,362m |
NASDAQ Dubai | Dubai Gold Securities | 0.154 | 4,953 | US$8m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU) Total Tonnes in Trust: 145.16: +0.55 change from yesterday’s data.
Silver Trust (SLV) Total Tonnes in Trust: 9,500.57: -31.83 change from yesterday’s data.
The Miners:
AuRico’s (AUQ) preliminary quarterly results, Extorre’s (XG) closed financing, and Great Panther’s (GPL) second quarter production were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Kimber | KBX+8.67% $1.86 |
2. Rubicon | RBY+7.74% $3.48 |
3. Richmont | RIC +6.93% $7.71 |
LOSERS
1. Almaden | AAU-1.83% $3.75 |
2. Taseko | TGB-1.48% $4.65 |
3. Claude | CGR-1.41% $2.10 |
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:
BonTerra Assays 114.00 Grams/Tonne Gold, Eastern Extension, Quebec - More
- July 12, 2011 | Item | ShareThis
Gulfside Minerals Ltd. - Mongolia Update - More
- July 12, 2011 | Item | ShareThis
Golden Reign Resources Ltd.: Second Drill Rig in Operation, Update on Drilling at San Albino - More
- July 12, 2011 | Item | ShareThis
Hudson Awards Sarfartoq REE Project Environmental Impact Study - More
- July 12, 2011 | Item | ShareThis
Beaufield Commences 2011 Schefferville Iron Exploration - More
- July 12, 2011 | Item | ShareThis
Victory Resources Corporation - Stage I - Drill Results on Reforma - More
- July 12, 2011 | Item | ShareThis
Colombia Crest Gold Corp. Initiates Drilling at the San Simon Project - More
- July 12, 2011 | Item | ShareThis
Auriga Gold Completes First Tranche of $3.0 Million Private Placement Financing - More
- July 12, 2011 | Item | ShareThis
Sona Updates 4,500-Metre Underground Drill Program at Its Elizabeth Gold Deposit Property - More
- July 12, 2011 | Item | ShareThis
Aura Minerals Awards Feasibility Study on Serrote Deposit to SNC-Lavalin Inc. - More
- July 12, 2011 | Item | ShareThis
Ethos Identifies Gold Anomalies in the Coffee Fault, White Gold District, Yukon - More
- July 12, 2011 | Item | ShareThis
Pershimco Now Extends the LaPava Gold-Copper Target More Than 500 Metres in Width at the Cerro Quema Project (Panama) - More
- July 12, 2011 | Item | ShareThis
Critical Elements Corporation Initiates the Environmental Impact Assessment for the Rose Tantalum-Lithium Project - More
- July 12, 2011 | Item | ShareThis
Galahad Metals Inc.'s-Red Ore Gold Launches IPO - More
- July 12, 2011 | Item | ShareThis
St. Eugene Intersects High Grade Gold at Tartan Lake and Announces Termination of Churchill Group Private Placement - More
- July 12, 2011 | Item | ShareThis
Compass Gold Exploration Update and Option Exercise - More
- July 12, 2011 | Item | ShareThis
Helio's Latest Drilling Discovers Multiple Zones of Gold Mineralisation at Porcupine Target - SMP Gold Project, Tanzania - More
- July 12, 2011 | Item | ShareThis
Condor Discovers New Epithermal Gold-Silver Occurrence in Peru - More
- July 12, 2011 | Item | ShareThis
Drill Five Now Onsite at Curraghinalt Deposit - More
- July 12, 2011 | Item | ShareThis
Eagle Star Minerals Corp. Adds New Director and Advisory Board Member - More
- July 12, 2011 | Item | ShareThis
Magellan Reports Initial Drill Results Including 36.7m @ 0.79g/t Gold From Valdette Zone at Coringa Project, Brazil - More
- July 12, 2011 | Item | ShareThis
International Enexco Appoints Spiros Cacos - More
- July 12, 2011 | Item | ShareThis
Silver Predator Commences Drill Program at Plata Project, Yukon - More
- July 12, 2011 | Item | ShareThis
Siga Resources Inc. Information to be Available Through Standard & Poor's Market Access Program - More
- July 12, 2011 | Item | ShareThis
Integra Gold Intersects 23.3 g/t Gold Over 5.4 Meters at the Triangle Zone on the Lamaque Gold Project - More
- July 12, 2011 | Item | ShareThis
Prize Mining Announces Changes to its Board and Executive Team - More
- July 12, 2011 | Item | ShareThis
Prize Mining Announces Changes to its Board and Executive Team - More
- July 12, 2011 | Item | ShareThis
AQM Drills 312 Metres of 0.60% Cu and 0.14 g/t Au in the First Deep Hole Completed on the Zafranal Main Zone During the 2011 Drill Program - More
- July 12, 2011 | Item | ShareThis
Lithium Exploration Group CEO Meets with Team in Alberta - More
- July 12, 2011 | Item | ShareThis
Lithium Corporation Commences Drilling at Cortez - More
- July 12, 2011 | Item | ShareThis
Blind Creek Completes Phase 1 Drill Program to Follow Up 2010 Rock Sample Assays That Included 263g/t (8.46 oz/t) Gold, 1350 g/t (43.4 oz/t) Silver - More
- July 12, 2011 | Item | ShareThis
Extorre Closing of $25 Million Bought Deal Equity Financing - "Extorre Gold Mines Limited (TSX:XG - News) (AMEX:XG - News) (Frankfurt:E1R - News) ("Extorre" or the "Company") is pleased to announce that it has closed the bought deal private placement financing announced June 20, 2011 (the "Offering"). The Company has issued 2,400,000 common shares (the "Shares") at a price of $10.50 per Share for gross proceeds of $25,200,000." More
- July 12, 2011 | Item | ShareThis
Klondex Mines Confirms Seven-Member Board with Substantial Nevada Gold Mining Experience - More
- July 12, 2011 | Item | ShareThis
Soltoro Announces $4.5M Financing With Coeur d'Alene Mines - More
- July 12, 2011 | Item | ShareThis
Copper Mountain produces first concentrate and commences trucking to port - More
- July 12, 2011 | Item | ShareThis
High Desert Gold Completes Earn-In for 60%-Interest in the Gold Springs Project, Provides an Update on Gold Springs - More
- July 12, 2011 | Item | ShareThis
Detour Gold Holds Ground Breaking Ceremony for its New Regional Office in Cochrane with Provincial and Local Officials - More
- July 12, 2011 | Item | ShareThis
Lupaka Gold Corp. Increases Property Position at Crucero Gold Project, and Provides Update on Exploration Progress - More
- July 12, 2011 | Item | ShareThis
Pilot Gold Announces Completion of Gold Springs Project Earn-in Option by High Desert Gold Corporation - More
- July 12, 2011 | Item | ShareThis
Rogue Resources Acquires Kachelly Property, Secures Extension to 12 km Nat River Iron Formation - More
- July 12, 2011 | Item | ShareThis
Crosshair Drills 0.11% eU3O8 over 29 Feet at Juniper Ridge - More
- July 12, 2011 | Item | ShareThis
Southern Arc Appoints Rhylin Bailie as Vice President, Communications & Investor Relations - More
- July 12, 2011 | Item | ShareThis
Canarc Resource Corp.: Shareholder Update; Review of Second Quarter and Outlook for Third Quarter, 2011 - More
- July 12, 2011 | Item | ShareThis
Romios Gold Resources Inc.: Ground Geophysical Survey Indicates Continuity of the Deep Conductivity Anomaly Below the North Zone, Trek Property, B.C. - More
- July 12, 2011 | Item | ShareThis
Northair Intersects 92.95 Metres of 25.8 g/t Silver at La Cigarra Project, Mexico - More
- July 12, 2011 | Item | ShareThis
Strategic Metals Ltd. Provides Update at Its Midas Touch and Silver Range Projects - More
- July 12, 2011 | Item | ShareThis
GGL Resources Corp.: Rio Tinto Summer Diamond Exploration - More
- July 12, 2011 | Item | ShareThis
Silver Dragon Resources Announces Commencement of Production at Erbahuo Silver Mine, China - More
- July 12, 2011 | Item | ShareThis
Golden Phoenix Signs LOI to Acquire Santa Rosa Gold Mine in Panama; Growth in Jobs, Investment and Infrastructure Expected to Develop - More
- July 12, 2011 | Item | ShareThis
Intrepid Mines Limited: Tujuh Bukit Indonesia-Exceptional Drill Intercept - More
- July 12, 2011 | Item | ShareThis
Horizonte Minerals to Acquire 100% of Vila Oito and Floresta Nickel Projects, Northern Brazil - More
- July 12, 2011 | Item | ShareThis
Lara Exploration Ltd.: Sale of Brazilian Nickel Laterite Projects to Horizonte Minerals Completed - More
- July 12, 2011 | Item | ShareThis
Centamin Egypt Limited Notice of Results - More
- July 12, 2011 | Item | ShareThis
Goldrush Announces Appointment of Mr. Driffield Cameron, P.Geo as Vice President, Exploration - More
- July 12, 2011 | Item | ShareThis
Century Estimates Second Quarter Production at Lamaque and San Juan - More
- July 12, 2011 | Item | ShareThis
Continental Gold Drills 18.1 m @ 24.89 g/t Gold and 63 g/t Silver at Veta Sur and Announces New Sediment-Hosted Gold-Silver-Zinc-Lead Discovery - More
- July 12, 2011 | Item | ShareThis
Salazar Updating El Domo Mineral Resource Estimate - More
- July 12, 2011 | Item | ShareThis
American Manganese Inc.: 11 More Drill Results From Artillery Peak Manganese Project - More
- July 12, 2011 | Item | ShareThis
CuOro Reports Shallow Drill Results of 5.63% Copper Over 7.61 Meters at Santa Elena Project, Colombia - More
- July 12, 2011 | Item | ShareThis
Forsys wants 6Mt/y uranium output at Namibian projects - More
- July 12, 2011 | Item | ShareThis
Chinese company bids for uranium junior - More
- July 12, 2011 | Item | ShareThis
AuRico Gold Reports Increased Production Profile, Record Operating Cash Flow and Record Net Free Cash Flow for the Second Quarter - "AuRico Gold Inc. (TSX:AUQ.to - News) (NYSE:AUQ - News), ("AuRico" or "the Company") is pleased to announce preliminary results that include a significant increase in production as well as record operating cash flow and net free cash flow for the second quarter. During the quarter, the Ocampo mine produced 19% more gold equivalent ounces (realized) as compared to Q1 2011 at cash costs of USD$340 per realized gold equivalent ounce, resulting in a record margin of 77% or $1,171 per gold equivalent ounce. The Company's consolidated production for the quarter was augmented by solid production from the El Chanate mine that was acquired effective April 8, 2011." More
- July 12, 2011 | Item | ShareThis
Great Panther Silver Reports Second Quarter Production - "Metal production from the two mines, at 562,944 silver equivalent ounces ("Ag eq oz"), including 386,209 ounces silver, 1,931 ounces gold, 266 tonnes lead, and 348 tonnes zinc, is within 2% of production for the second quarter 2010. Plant throughput is up by an average of 30% compared to Q2 2010, however, ore grades were lower than anticipated. Record quarterly metal production of 212,108 Ag eq oz was achieved at Topia, including record silver production of 143,774 silver ounces ("Ag oz")." More
- July 12, 2011 | Item | ShareThis
- Chris Mullen, Gold Seeker Report
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-- Posted 12 July, 2011 | |
