-- Posted 26 August, 2011 | |
| Close | Gain/Loss | On Week |
Gold | $1794.30 | +$34.30 | -2.96% |
Silver | $40.98 | +$0.20 | -3.07% |
XAU | 215.94 | +2.38% | +2.61% |
HUI | 596.95 | +2.52% | +2.70% |
GDM | 1734.41 | +2.43% | +2.16% |
JSE Gold | 2629.22 | +5.26 | -2.50% |
USD | 73.75 | -0.47 | -0.30% |
Euro | 144.97 | +1.17 | +0.71% |
Yen | 130.45 | +1.41 | -0.18% |
Oil | $85.37 | +$0.07 | +3.78% |
10-Year | 2.188% | -0.034 | +5.65% |
Bond | 138.15625 | +0.59375 | -1.47% |
Dow | 11284.54 | +1.21% | +4.32% |
Nasdaq | 2479.85 | +2.49% | +5.89% |
S&P | 1176.80 | +1.51% | +4.74% |
The Metals:
Gold climbed to $1794.24 by about 7:40AM EST before it fell back to $1765.20 in the next 45 minutes of trade, but it then rallied to as high as $1795.00 in New York and ended with a gain of 1.95%. Silver fell to $40.205 in Asia and rose to $41.30 in London before it fell back to $40.096 by a little after 10AM EST in New York, but it then rallied back higher into the close and ended with a gain of 0.49%. Both metals are rising to new highs in afterhours access trade as well.
Euro gold climbed back over €1238, platinum gained $6.75 to $1821, and copper rose a couple of cents to about $4.10.
Gold and silver equities waffled near unchanged for most of the morning, but they then climbed steadily higher in afternoon trade and ended with over 2% gains.
The Economy:
Report | For | Reading | Expected | Previous |
GDP | Q2 | 1.0% | 1.1% | 1.3% |
GDP Deflator | Q2 | 2.4% | 2.3% | 2.3% |
Michigan Sentiment | Aug | 55.7 | 55.8 | 54.9 |
“Federal Reserve Chairman Ben S. Bernanke said the central bank still has tools to stimulate the economy without providing details or signaling when or whether policy makers might deploy them.
“In addition to refining our forward guidance, the Federal Reserve has a range of tools that could be used to provide additional monetary stimulus,” Bernanke said in a speech today to central bankers and economists gathered at an annual forum in Jackson Hole, Wyoming. He said a second day has been added to the next policy meeting in September to “allow a fuller discussion” of the economy and the Fed’s possible response.”
All of this week’s other economic reports:
Next week’s economic highlights include Personal Income and Spending, Core PCE Prices, and Pending Home Sales on Monday, the Case-Shiller 20-city Index and Consumer Confidence on Tuesday, ADP Employment, Chicago PMI, and Factory Orders on Wednesday, Initial Jobless Claims, Productivity, Unit Labor Costs, the ISM Index, and Construction Spending on Thursday, and August’s jobs data on Friday.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil ended slightly higher as traders tracked Hurricane Irene.
The U.S. dollar index fell and treasuries pared early gains after Bernanke’s speech sent the Dow, Nasdaq, and S&P over 1% higher.
Among the big names making news in the market Friday were Warren Buffett, Tiffany, and Apple.
The Commentary:
“Silver has thus far held solidly at the intersection of three major chart support levels detailed on the following chart. Horizontal support near $39.50, the 38.2% Fibonacci retracement level of the move from $50 down to $33, and the upsloping trendline created by the price action of the last 6 weeks. Now the bulls will need to take it through the 50% retracement level once again and keep it ABOVE that level to set it up for another test of overhead resistance near $44.
Trying to explain the reasons for the price action in the markets today is an exercise in futility as there are far too many cross currents at work and far too many hedge fund computers sloshing money all over the place. And this does not even take into account the parasitical HFT crowd.
That being said - gold initially dipped a bit lower and came off its best level early in the session as Bernanke's highly anticipated speech turned out to be a dud. Why these guys expected him to come out and announce another round of QE3 escapes me for the reasons we have detailed here on this site previously. The political environment just did not permit it without a SERIOUS DEGRADATION of the economic data (not to mention the glaringly obvious fact that is DOES NOT WORK).
After the initial knee jerk lower (which also took silver down with it), gold moved back up again as the speech was interpreted by the market as saying that the economy was very weak and that the Fed was closely monitoring the upcoming economic reports. Most took it as saying that the Fed left the door open for additional monetary stimulus next month in September and reinforced the demand for gold as a safe haven. Once that theory seemed to gain traction, gold began moving steadily higher as the Dollar began heading steadily lower.
I also happen to think that with Bernanke passing the ball off to the political leaders to address the structural issues plaguing the US economy, those who wanted to put their trust in those clowns to fix anything decided that gold looked mighty attractive and decided to trust it instead of their princes.
The other issue working for gold was the thinking that what ECB President Trichet might say this weekend would actually be more important that what was contained in Bernanke's speech. After all, Europe is experiencing its own version of its credit crisis and the ECB is going to be under pressure to deal with that, not the Fed. Whatever they might do, if anything further, to provide some form of monetary accommodation or further increase the size of their bond buying program, makes gold all that much more attractive.
Let me make a quick comment in regards to some of the "experts" that are continually trotted out to pontificate by stating that "gold is not a safe haven". Have you ever noticed that it is ALWAYS AFTER A SELL OFF IN GOLD that these mushrooms pop up and appear for the sole purpose of annoying us? They are never anywhere to be found while the metal is making one record high after another. But let the market experience a normal price retracement such as those that occur in any bull market and out they come dazzling us with their brilliance. My response is simple - if they think it is not a safe haven, then they should have some courage and short the market with reckless abandon to prove how smart they are? After all, once it broke out above $1500, they could have sold it short over and over again all the way to $1900. After all, a $400 dollar drawdown on a short position would only amount to a paper loss of $40,000 on each short position initiated. What's that to these wizards???
I cannot think of any other statement that so utterly disqualifies these individuals from being taken seriously as stating that gold is not a safe haven. Not only does it display amazing ignorance, the statement has also been proven to have been blatantly erroneous. What else can explain a $400 rally since the beginning of July? Indigestion induced by a bad batch of pepperoni pizzas that made the round in the investing community?
Gold is and always will be a measure of the CONFIDENCE that investors have in their monetary and political leaders. It is that simple.
If you doubt my comments, then let a more objective argument make the case and convince you of the utter stupidity of these babblers who are legends only in their own minds. Following is a chart comparing the price of gold to the price of the long bond. Both are considered CLASSIS SAFE HAVENS.
Which one has proven to have been the better choice as a safe haven since the first inception of the Fed's failed QE policies were first begun? Yes, you have guessed it - Gold.
The chart settles the argument. Ignore the babblers and pay them no heed. They have been discredited and can be and should be ignored by savvy traders and investors.”- Dan Norcini, More at http://www.traderdannorcini.blogspot.com/
GATA Posts:
GoldMoney's Turk interviews Matterhorn's Egon von Greyerz
The Statistics:
Activity from: 8/25/2011
Gold Warehouse Stocks: | 11,579,080 | +32 |
Silver Warehouse Stocks: | 105,325,155 | +560,514 |
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 | 1232.314 | 39,620,116 | US$70,818m |
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$6,630m |
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$7,242m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 14.21 | 473,719 | US$817m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 45.65 | 1,467,712 | US$2,538m |
NASDAQ Dubai | Dubai Gold Securities | 0.154 | 4,950 | US$9m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU) Total Tonnes in Trust: 168.11: No change from yesterday’s data.
Silver Trust (SLV) Total Tonnes in Trust: 9,705.90: -130.28 change from yesterday’s data.
The Miners:
Aurizon’s (AZK) VP resignation and Silvercorp’s (SVM) normal course issuer bid update were among the big stories in the gold and silver mining industry making headlines Friday.
WINNERS
1. Taseko | TGB+17.33% $3.86 |
2. Paramount | PZG +7.69% $2.38 |
3. Golden Star | GSS +7.66% $2.39 |
LOSERS
1. Avino | ASM -9.68% $2.52 |
2. Mines MGMT | MGN -3.59% $1.61 |
3. Entree | EGI -3.47% $1.67 |
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:
Red Mile Minerals Corp. Closes First Tranche of Private Placement With MineralFields Group - More
- August 26, 2011 | Item | ShareThis
Cangold Closes $5 Million Private Placement Fully Subscribed - More
- August 26, 2011 | Item | ShareThis
Blackstone Announces Debt Settlement - More
- August 26, 2011 | Item | ShareThis
Renforth Files 43-101 Technical Report at New Alger Gold Project - More
- August 26, 2011 | Item | ShareThis
Robex Resources Inc.: Resignation of Mr. Jean-Luc Roy - More
- August 26, 2011 | Item | ShareThis
Luiri Gold Limited: Private Placement of AUD$1.15 Million - More
- August 26, 2011 | Item | ShareThis
Levon Continues Bulk Tonnage Ag, Au, Zn, Pb Resource Expansion Drilling at Cordero, Mexico, as Phase 4 Exploration Begins - More
- August 26, 2011 | Item | ShareThis
Sacre-Coeur Minerals Appoints Jennifer Todhunter as VP Financial Adminstration - More
- August 26, 2011 | Item | ShareThis
Sacre-Coeur Minerals Appoints Mark Lotz as New CFO and Director - More
- August 26, 2011 | Item | ShareThis
African Queen Appoints Jennifer Todhunter as VP Financial Administration - More
- August 26, 2011 | Item | ShareThis
African Queen Appoints Mark Lotz as New CFO And Director - More
- August 26, 2011 | Item | ShareThis
Argus Announces Identification of 2 Km Long Iron Magnetite Trend at Iron King Project, Peru - More
- August 26, 2011 | Item | ShareThis
Treasury Metals Reports High-Grade Results at Depth in the Eastern Zone and in the Developing Western Target at the Goliath Gold Project - More
- August 26, 2011 | Item | ShareThis
Takara Grants Stock Options - More
- August 26, 2011 | Item | ShareThis
Aurizon Announces Vice President, Corporate Development Resignation - "The Company announces that Mr. Roger Walsh, Vice-President, Corporate Development, has resigned from the Company to pursue other opportunities." More
- August 26, 2011 | Item | ShareThis
Skyharbour Resources Ltd: Annual General Meeting Held - Directors Re-Elected - More
- August 26, 2011 | Item | ShareThis
COPPER MOUNTAIN Mine holds official opening ceremony & releases new video update - More
- August 26, 2011 | Item | ShareThis
Mega Establishes Project Participation Framework for Monument Bay - More
- August 26, 2011 | Item | ShareThis
MacDonald Mines Provides Update on its Ring of Fire Semple-Hulbert Property: Assay Results Pending - More
- August 26, 2011 | Item | ShareThis
IBC Advanced Alloys Joins OTCQX Market in the USA - More
- August 26, 2011 | Item | ShareThis
Paladin Energy Ltd-Langer Heinrich Mine, Namibia Execution of US$141M Project Finance Facility for Stage 3 Expansion - More
- August 26, 2011 | Item | ShareThis
Paladin Energy Ltd-Kayelekera Mine, Malawi Drying and Packaging Plant Temporarily Off-Line - More
- August 26, 2011 | Item | ShareThis
Trelawney Mining and Exploration Inc. and Augen Gold Corp. Announce Increased Offer and Support Agreement - More
- August 26, 2011 | Item | ShareThis
Cue Resources Ltd. Files an Updated Technical Report Showing Increased Average Grade and Resource at the Yuty Uranium Project - More
- August 26, 2011 | Item | ShareThis
Vantex Resumes Drilling on the Moriss Zone-Galloway Project - More
- August 26, 2011 | Item | ShareThis
Samco Gold Releases its Interim Financial Statements and Management%u2019s Discussion & Analysis for the Six Months Ended June 30, 2011 - More
- August 26, 2011 | Item | ShareThis
Silvercorp Metals Inc.: Update on Normal Course Issuer Bid - "Silvercorp Metals Inc. (TSX: SVM - News)(NYSE: SVM - News) ("Silvercorp" or the "Company") announces that to date, pursuant to its normal course issuer bid ("NCIB") announced on June 17, 2011, it has acquired a total of 1,624,233 of its common shares at an average price of CDN$8.18." More
- August 26, 2011 | Item | ShareThis
Taku Commences Drilling at Portland Property in Yukon - More
- August 26, 2011 | Item | ShareThis
GoldQuest Grants Incentive Stock Options - More
- August 26, 2011 | Item | ShareThis
El Capitan Precious Metals Announces Replacement of Common Stock Rights Plan with Preferred Stock Rights Plan - More
- August 26, 2011 | Item | ShareThis
Cameco Announces Intention to Acquire Hathor Exploration Limited - More
- August 26, 2011 | Item | ShareThis
Trece Barras Reaches Preliminary Agreement With Community Leaders and Representatives of Pampa Larga - More
- August 26, 2011 | Item | ShareThis
Canaco Identifies New Mineralization at Magambazi and Extends Western Lodes Along Strike and at Depth-Drill Results Include 30.0 Metres at 2.83 g/t Au - More
- August 26, 2011 | Item | ShareThis
Augen Gold Founder and CEO, David Mason, To Resign - More
- August 26, 2011 | Item | ShareThis
Glass Earth Gold Makes New Discovery at "WKP South" With High Grade Gold Results; and Further Broad Mineralised Zones in "WKP West" - More
- August 26, 2011 | Item | ShareThis
- Chris Mullen, Gold Seeker Report
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-- Posted 26 August, 2011 | |
