• Gold: 1,304.37 -9.72
  • Silver: 15.39 -0.11
  • Euro: 1.135 -0.008
  • USDX: 96.621 0.86
  • Oil: 59.95 -0.05

July 26: Gold and Silver Gain Almost 1%

Chris Mullen
|
Thursday, July 26th
 

Close

Gain/Loss

Gold

$1615.60

+$11.10

Silver

$27.50

+$0.15

XAU

149.97

+1.96%

HUI

408.53

+2.22%

GDM

1183.08

+2.01%

JSE Gold

2350.26

+9.97

USD

82.81

-0.76

Euro

122.83

+1.32

Yen

127.89

-0.04

Oil

$89.39

+$0.42

10-Year

1.428%

+0.022

T-Bond

152.50

-0.3125

Dow

12887.93

+1.67%

Nasdaq

2893.25

+1.37%

S&P

1360.02

+1.65%

 
 

“Within our mandate, the ECB is ready to do whatever it takes to preserve the euro,” said Draghi, president of the central bank, at a conference in London. “Believe me it will be enough.”

The Metals:

 

Gold jumped to as high as $1621.37 before it fell back off a bit in New York, but it still ended with a gain of 0.69%. Silver surged to as high as $27.815 and ended with a gain of 0.55%.

 

Euro gold fell to about €1315, platinum gained $6.95 $1401.75, and copper remained at about $3.39.

 

Gold and silver equities traded just slightly higher for most of the morning, but they then climbed steadily higher throughout the afternoon and ended with about 2% gains.

The Economy:

 

Report

For

Reading

Expected

Previous

Initial Claims

7/21

353K

381K

388K

Durable Orders

June

1.6%

0.3%

1.6%

Durable Orders - ex Trans.

June

-1.1%

-0.1%

0.8%

Pending Home Sales

June

-1.4%

0.9%

5.9%

 

U.S. Mortgage Rates Fall With 30-Year at a Record-Low 3.49% Bloomberg

Central Banks Search Toolbox for Ideas as Growth Slows Bloomberg

Foreclosure Filings Increase in 60% of Large U.S. Cities Bloomberg

Tomorrow at 8:30AM EST brings second quarter GDP expected at 1.2% and the Chain Deflator expected at 1.6%. At 9:55 is Michigan Sentiment for July expected at 72.0.

 

The Markets:

 

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

 

Oil rose and the U.S. dollar index fell as the euro jumped higher after European Central Bank President Mario Draghi said the ECB will do everything in its power to save the shared currency.

 

Treasuries fell as the Dow, Nasdaq, and S&P jumped higher after Draghi’s comments.

 

Among the big names making news in the market today were Dow Chemical, Sprint, Exxon Mobil, and Starwood.

The Commentary:

 

From late Wednesday - “The ability of the gold market to push a "16" handle on the price can be considered a minor victory for the bulls. You can see from the chart below, that within its broader consolidation pattern, gold had been experiencing a somewhat tightening or constricting of its range. The upper boundary of that "mini-pattern" has been the $1600 level. The ability of the bulls to take it through this region gives them a very slight advantage over the bears in the immediate term and provides the possibility of a push towards more stubborn resistance beginning near the $1620 level.

Keep in mind that every bit of today's move higher was predicated on the notion being floated that the Fed is going to ease and provide additional stimulus measures as soon as next month. What the Fed giveth, the Fed can taketh away in a real hurry. What this means is that as long as traders feel fairly confident that the stimulus is coming sooner rather than later, gold will attract dip buyers. On the other hand, if anything comes along to disabuse them of this notion, the market will drop back down towards the bottom of the recent range where the big Asian buyers are lurking.

I have stated many times that I believe any additional bond buying programs are an enormous waste of time which will do absolutely nothing to deal with the underlying problems in the US economy, which are structural in nature. Simply put - there is already too much debt in the system. Trying to lower interest rates even further in order to encourage additional borrowing is a fool's exercise.

For Pete's sake, the yield on the Ten Year note is at 1.406% today. Speaking sarcastically here I am sure that all those fence sitters out there just itching to spend money they do not have will immediately launch forward with those plans if the Fed manages to push the yield down to 1.25%.

They can do all they want to entice banks to lend instead of holding money at the Fed and earning interest but if consumers are afraid of sinking further into debt in this jobless economy, what good will conjuring up more attempts to entice lending do?

Also do not forget - the Fed has spent a minimum of $2.5 Trillion between QE1 and QE2. What lasting good did any of that do??? Answer - nothing.- Dan Norcini, More at http://www.traderdannorcini.blogspot.com/

 

GATA Posts:

 

 

GoldMoney interview with Cheviot's Naylor-Leyland cites gold market manipulation

New York Sun: Ron Paul's triumph

House approves Paul's legislation to audit Federal Reserve

Paul Craig Roberts interview: All investment avenues are rigged

Fed has destroyed money and capital markets, Stockman tells Casey Research

 

The Statistics:

  As of close of business: 7/25/2012

Gold Warehouse Stocks:

10,790,857.979

-20,067.89

Silver Warehouse Stocks:

140,232,877.540

-329,991.424

 

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

1252.528

40,270,039

US$65,136m

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

Gold Bullion Securities

123.92

3,984,199

US$6,424m

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

ETFS Physical Gold

146.79

4,719,559

US$7,696m

Australian Stock Exchange (ASX)

Gold Bullion Securities

11.16

358,789

US$578m

Johannesburg Securities Exchange (JSE)

New Gold Debentures

39.35

1,265,119

US$2,041m

Note: Change in Total Tonnes from yesterday’s data: SPDR subtracted 2.112 tonnes.

 

COMEX Gold Trust (IAU) Total Tonnes in Trust: 182.90: No change from yesterday’s data.

Silver Trust (SLV) Total Tonnes in Trust: 9,639.42: No change from yesterday’s data.

 

The Miners:

 

Lake Shore’s (LSG) amended option agreement with Revolution Resources (RV.TO), Entree’s (EGI) metallurgical recoveries, Goldcorp’s (GG) second quarter results, Barrick’s (ABX) second quarter results, Newcrest’s (NCM.AX) output, and Hecla’s (HL) offer for U.S. Silver (USA.TO) were among the big stories in the gold and silver mining industry making headlines today.

 

WINNERS

1. Nevsun

NSU +14.96% $3.92

2. Banro

BAA +10.95% $3.85

3. Agnico-Eagle

AEM+8.09% $42.09

LOSERS

1. NovaGold

NG -25.28% $4.02

2. Exeter

XRA -5.30% $1.25

3. Northern Dynasty

NAK -3.38% $2.29

Winners & Losers tracks NYSE and AMEX listed gold and silver mining stocks that trade over $1.

Please see Yahoo’s Mining/Metals News Wire for all of today’s mining news.

 

- Chris Mullen, Gold Seeker Report

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

© Gold Seeker 2012

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