-- Posted 21 September, 2011 | |
Please Note: There will be no Gold Seeker Reports until October 10th.
| Close | Gain/Loss |
Gold | $1804.70 | -$1.40 |
Silver | $40.38 | +$0.35 |
XAU | 213.80 | -2.83% |
HUI | 611.33 | -1.79% |
GDM | 1782.28 | -1.89% |
JSE Gold | 3165.71 | +120.27 |
USD | 77.72 | +0.61 |
Euro | 135.90 | -1.16 |
Yen | 130.47 | -0.39 |
Oil | $85.92 | -$1.03 |
10-Year | 1.875% | -0.072 |
T-Bond | 143.25 | +0.625 |
Dow | 11124.84 | -2.49% |
Nasdaq | 2538.19 | -2.01% |
S&P | 1166.76 | -2.94% |
The Metals:
Gold climbed $10.25 to $1816.35 in Asia before it fell back to $1785.50 by about 10:30AM EST, but it then rallied back higher in the last few hours of trade and ended with a loss of just 0.08%. Silver fell to as low as $39.825 in late morning New York trade before it also rallied back higher midday and ended near its late session high of $40.588 with a gain of 0.87%. Both metals are falling in afterhours access trade following the fed’s statement.
Euro gold fell to about €1311, platinum gained $3.75 to $1779.75, and copper gained a few cents to about $3.75.
Gold and silver equities rose about 1% by early afternoon, but they then fell following the fed’s statement and ended with about 2% losses.
Is gold forming a bubble? MarketWatch
Bullion Vaults Run Out of Space on Gold Rally Bloomberg
Gold Price May Reach $2,300 in 2012, Newmont’s O’Brien Says Bloomberg
The Economy:
Report | For | Reading | Expected | Previous |
Existing Home Sales | Aug | 5.03M | 4.70M | 4.67M |
Fed chairman gets letter from GOP leaders: No stimulus Yahoo
Mortgage Twist Presents Fed With a Puzzle Yahoo
Mortgage applications edged up last week: MBA Reuters
Middle-class income fell in the last decade Yahoo
California Sells $2.4 Billion in Debt With Yields a Third Below 2009 Level Bloomberg
In the US, two housing markets and two directions Yahoo
Bernanke Has Few Tools to Heal Economy Bloomberg
“Federal Reserve policy makers will replace much of the short-term debt in their portfolio with longer-term Treasuries in an effort to further reduce borrowing costs and keep the economy from relapsing into a recession.
The central bank will buy $400 billion of bonds with maturities of six to 30 years through June while selling an equal amount of debt maturing in three years or less, the Federal Open Market Committee said today in Washington after a two-day meeting. The action “should put downward pressure on longer-term interest rates and help make broader financial conditions more accommodative,” the FOMC said.”
Tomorrow at 8:30AM EST brings Initial Jobless Claims for 9/17 expected at 418,000 and at 10AM is the Leading Economic Indicators report for August expected at 0.1%.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil turned higher after the Energy Information Administration reported that crude inventories fell 7.3 million barrels, gasoline inventories rose 3.3 million barrels, and distillates fell 900,000 barrels, but it then turned back lower following the fed’s statement.
The U.S. dollar index and treasuries rose as the Dow, Nasdaq, and S&P fell over 2% following the fed’s statement.
Among the big names making news in the market today were BofA, Netflix and Discovery, SABMiller, Microsoft, Alpha Natural Resources, Walter Energy, Adobe, and Oracle.
The Commentary:
“Very impressive strength in the mining sector was the feature of the day in the trading session. The result was to set the index within striking distance of its recent all time high.
Newmont Mining shot to yet another all time high today (Tuesday).
Having a few days of price action under our belt allows us to get a better picture of where the buy orders and sell orders are coming in; in other words, defining where the "value" regions are located.
Note the chart and look at the horizontal red line drawn near the 580 level. We remarked that the index bounced off of this level on its retest last week, confirming a reversal of polarity principle where stubborn overhead selling resistance now becomes strong buying support.
In yesterday's session the market pushed through the former gap and go region noted on the chart but was unable to hold its gains and settled below the bottom of the gap. While the action was not particularly bullish, it did hold the previous day's low, and refused to break down even while the metal price of gold was moving down to near the $1780 level. It was evident that there was dip buying taking place at the lower levels. This was all the more noteworthy because of the very broad weakness across the entirety of the equity world yesterday.
Today saw the miners explode back to the upside, through the gap and go region and to within a few points of the all time high in the index. The ferocity of today's move higher indicates distressed buying on the part of some of the shorts in these shares. They are being squeezed out by some fairly steady and determined buying. My guess is that there were some fresh shorts piled on below the 600 level that were too far underwater to hold any longer.
You can see on the chart that there are several candles with long upper shadows present up at these levels. There is also a minor double top just shy of the 640 level. The bulls now have it in their power to attack that region and see if they can dislodge some of the more stubborn bears in these shares. If they can do so, the buying by the shorts as they seek to cover will intensify and that should give us another sharp push higher.
The strongest hands in the short community are going to try to make a stand and prevent that from happening. Whether they can do so remains unclear at this time. If they fail to hold it at 640, they are in trouble.
Note something else of significance on the following ratio chart. This compares the price of the HUI mining shares index against the price of gold itself. The ratio is useful in the sense that it provides us a benchmark; something against which to measure the value of the shares in general. Here we have the situation where the HUI made it to within a few points of its all time high today yet the overall HUI/Gold ratio is sitting at a relatively low level compared to previous peaks in the valuation of the shares.
Today we closed at the .344 level. The peaks in this index were either above the .60 level or right at it. In other words, even with the HUI sitting at such a lofty level as where it closed at today, the overall sector remains UNDERVALUED against the gold price.
This is what happens when a long established trade outstays its welcome and descends into the arena of foolishness. The ratio spread trade employed by the hedge fund community, buying gold or the ETF and shorting the shares, depressed the share prices of so many miners that it has led to a case of excessive undervaluation which is now in the process of being corrected. I think one could easily make the case without even getting too far out on a limb, that this particular ratio could move to at least the .50 level before it gets anywhere near being in the "overvalued" camp. Believe it or not that would put the index closer to the 900 level if the gold price were to remain near the current level of $1800.
That is mind boggling now isn't it???”- Dan Norcini, More at http://www.traderdannorcini.blogspot.com/
GATA Posts:
As gold price suppression grows more brazen, maybe Asia will defeat it
Bullion vaults run out of space on gold rally
Demand for real metal astonishes participants at LBMA conference in Montreal
The Statistics:
Activity from: 9/20/2011
Gold Warehouse Stocks: | 11,409,448 | -610 |
Silver Warehouse Stocks: | 105,252,194 | - |
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 | 1252.211 | 40,259,832 | US$72,166m |
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$6,683m |
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$7,313m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 14.21 | 473,580 | US$825m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 45.28 | 1,455,635 | US$2,611m |
NASDAQ Dubai | Dubai Gold Securities | 0.154 | 4,949 | US$9m |
Note: Change in Total Tonnes from yesterday’s data: SPDR added 0.303 tonnes.
COMEX Gold Trust (IAU) Total Tonnes in Trust: 168.32: No change from yesterday’s data.
Silver Trust (SLV) Total Tonnes in Trust: 9,921.49: -34.83 change from yesterday’s data.
The Miners:
Ivanhoe’s (IVN) challenge to Rio Tinto’ (RIO) remarks and Gold Fields’ (GFI) second down-payment were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Solitario | XPL +7.66% $2.39 |
2. Kimber | KBX +4.85% $1.71 |
3. DRDGOLD | DROOY+2.55% $5.64 |
LOSERS
1. Ivanhoe | IVN -10.62% $16.84 |
2. Freeport | FCX -7.68% $35.59 |
3. Northern Dynasty | NAK -7.09% $7.34 |
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:
Worldwide Appoints Mr. Fred Tejada as Director - More
- September 21, 2011 | Item | ShareThis
Fancamp Provides Exploration Update and Summary of Recent Activities on the Stoke Property - More
- September 21, 2011 | Item | ShareThis
Nitinat Announces Private Placement - More
- September 21, 2011 | Item | ShareThis
Iberian Minerals Strike Called Off - More
- September 21, 2011 | Item | ShareThis
ValGold to Acquire Past Producing Gold-Silver Mine and Surrounding Region in Western Ukraine - More
- September 21, 2011 | Item | ShareThis
Willow Creek and Iconic Minerals Form Joint Venture on Hercules Gold & Silver Property, Nevada - More
- September 21, 2011 | Item | ShareThis
Greenock Resources: Funding for PTM Minerals' Kakanda Copper Project - More
- September 21, 2011 | Item | ShareThis
Lac Seul First Nation and Tamaka Gold Corporation Sign Negotiation Protocol - More
- September 21, 2011 | Item | ShareThis
Otterburn Ventures Inc. Closes Option Agreement with Nortec Minerals Corp. - More
- September 21, 2011 | Item | ShareThis
Shamrock Finalizes Private Placement - More
- September 21, 2011 | Item | ShareThis
Iconic Acquires the Hercules Gold and Silver Project - More
- September 21, 2011 | Item | ShareThis
Aldrin Applies for Extension of Warrant Term - More
- September 21, 2011 | Item | ShareThis
Molycorp CEO to Congress: China’s New Warnings on Further Rare Earth Export Restrictions Spotlights Need to Ramp up U.S. Production - More
- September 21, 2011 | Item | ShareThis
Lakota Closes Its Private Placement Financing - More
- September 21, 2011 | Item | ShareThis
Newton Completes Field Work at Wholly Owned Chuchi Property - More
- September 21, 2011 | Item | ShareThis
Rockhaven Resources Ltd. Options Val Property - More
- September 21, 2011 | Item | ShareThis
Southern Arc Announces Drill Results From Mencanggah and Pelangan Prospects, West Lombok Project - More
- September 21, 2011 | Item | ShareThis
Preliminary Metallurgical Testwork Yields Positive Results for Miraflores, Colombia - More
- September 21, 2011 | Item | ShareThis
Samaranta Acquires 80% Interest in Guinea, West Africa Gold Property - More
- September 21, 2011 | Item | ShareThis
Cadan Completes a Geophysical Airborne Survey Over Its 9000ha Comval and 2,500ha T'Boli Properties - More
- September 21, 2011 | Item | ShareThis
Trelawney Announces That 88.8% of Augen Gold Corp. Shares have Been Tendered to Its Offer and Reminds Shareholders That Deadline to Tender is September 23, 2011 - More
- September 21, 2011 | Item | ShareThis
Drill Program Report: Apella Confirms Mineralization Along Entire 22.5 km Strike Length, Iron-T Vanadium-Iron-Titanium Project - More
- September 21, 2011 | Item | ShareThis
Strike Minerals Announces Non-Brokered Private Placement of up to $400,000 - More
- September 21, 2011 | Item | ShareThis
Horizonte Minerals Awards Stock Options - More
- September 21, 2011 | Item | ShareThis
Bravada Reports Encouraging In-fill Holes at Wind Mountain Project, Nevada - More
- September 21, 2011 | Item | ShareThis
Aurvista Provides Drill Results on the Porphyry Zone, Douay Property, Quebec-and Plans for 2012 Drilling Program - More
- September 21, 2011 | Item | ShareThis
Board of Directors of Calvista Announce Board Change - More
- September 21, 2011 | Item | ShareThis
Empire Mining Corporation: IP/Resistivity Survey Commences at Karapinar Copper Project, Turkey - More
- September 21, 2011 | Item | ShareThis
Alderon Expands Corporate Presence in Newfoundland & Labrador - More
- September 21, 2011 | Item | ShareThis
Phase II Drilling Commences at Columbus Gold's Guild Project in Nevada - More
- September 21, 2011 | Item | ShareThis
Animas Sells Kinsley Mountain Interest to Pilot Gold Inc. - More
- September 21, 2011 | Item | ShareThis
Sunridge Gold Completes 5000 m Core Drilling Program and Reaches 50% Ownership of Majescor's Besakoa Copper-Zinc-Gold Project, Madagascar - More
- September 21, 2011 | Item | ShareThis
Rogue Resources Intersects 1.2% Nickel Over 29 Meters at Langmuir - More
- September 21, 2011 | Item | ShareThis
Pan American Lithium Corp. is the Focus of Conservative Speculator Report - More
- September 21, 2011 | Item | ShareThis
Pilot Gold Purchases Option Agreement for Nevada Sunrise's Kinsley Mountain Property - More
- September 21, 2011 | Item | ShareThis
Latin American Minerals Advances Its Paraguay Gold Pilot Plant Closer to Operation - More
- September 21, 2011 | Item | ShareThis
Serengeti Enters into Agreement with Major Mining Company to Explore its Quest JV Properties - More
- September 21, 2011 | Item | ShareThis
Worldwide Identifies Three Major Drill Targets at Fox Lake - More
- September 21, 2011 | Item | ShareThis
Viking Minerals Bullish About Its Dolly Varden Property as Goldman Sachs Recommends Copper - More
- September 21, 2011 | Item | ShareThis
Fjordland Enters Into Agreement With Major Mining Company to Explore Its QUEST Copper-Gold Properties in Central British Columbia - More
- September 21, 2011 | Item | ShareThis
Oceanic Iron Ore Corp. Announces Hopes Advance NI 43-101 Resource Estimate - More
- September 21, 2011 | Item | ShareThis
Antioquia Gold Inc. Intersects 16.21 g/t Au over 4.0 metres, and Extends High Grade Gold Mineralization to Depth and Along Strike at the Guayabito Deposit - More
- September 21, 2011 | Item | ShareThis
Black Iron Strengthens Management Team With Addition of Nikolay Bairak as Vice President Government & Community Relations - More
- September 21, 2011 | Item | ShareThis
NQ Intersects 210.0 g/t Ag Over 9.0 Metres at Its Carheil Project - More
- September 21, 2011 | Item | ShareThis
Pilot Gold Purchases Option Agreement on Kinsley Mountain Sediment-Hosted Gold Property, Nevada - More
- September 21, 2011 | Item | ShareThis
Eskay Mining Corp Grants Options - More
- September 21, 2011 | Item | ShareThis
New Hana Announces Appointment of Highly Experienced and Successful Consultant to Assist Exploration Program at the Kuke Project - More
- September 21, 2011 | Item | ShareThis
U3O8 Corp. Reports Further Positive Metallurgical Test Results from the Laguna Salada Project, Argentina - More
- September 21, 2011 | Item | ShareThis
White Mountain Receives Final Report on Feldspar Processing and Adds to Its Engineering Team - More
- September 21, 2011 | Item | ShareThis
Li3 Energy Closes $8 Million First Tranche of Funding with POSCO - More
- September 21, 2011 | Item | ShareThis
StoneShield Commences Exploration in Colombia - More
- September 21, 2011 | Item | ShareThis
Ivanhoe Mines Challenges Unauthorized Remarks by Rio Tinto Representatives About the Status of the Oyu Tolgoi Project - "Ivanhoe Mines (TSX: IVN.TO - News)(NYSE: IVN.TO - News)(NASDAQ: IVN.TO - News) founder and Chief Executive Officer Robert Friedland said today that the company has been made aware of the dissemination of what it considers to be unauthorized and incomplete information concerning the Oyu Tolgoi Project by members of Rio Tinto's senior management during a briefing for investors this week." More
- September 21, 2011 | Item | ShareThis
Gold Fields Makes Second Down-payment on FSE Gold-Copper Project - "Gold Fields Limited (Gold Fields) (JSE, NYSE, NASDAQ Dubai: GFI) has made the second down-payment of US$66 million in terms of the option agreements to acquire a 60% interest in the undeveloped gold-copper Far Southeast (FSE) deposit in the Philippines. The option agreements were entered into with Lepanto Consolidated Mining Company (Lepanto), a company listed in the Philippines, and Liberty Express Assets, a private holding company." More
- September 21, 2011 | Item | ShareThis
- Chris Mullen, Gold Seeker Report
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-- Posted 21 September, 2011 | |
