• Gold: 1,501.83 -0.28
  • Silver: 17.94 -0.08
  • Euro: 1.107 -0.001
  • USDX: 98.261 -0.332
  • Oil: 58.8 0.17

July 27: Gold and Silver Gain About 2% on the Week

Chris Mullen
|
Friday, July 27th
 

Close

Gain/Loss

On Week

Gold

$1623.40

+$7.80

+2.49%

Silver

$27.77

+$0.27

+1.68%

XAU

151.80

+1.21%

+2.86%

HUI

411.94

+0.83%

+3.27%

GDM

1191.81

+0.73%

+3.36%

JSE Gold

2431.70

+81.44

+10.22%

USD

82.72

-0.09

-0.93%

Euro

123.04

+0.22

+1.18%

Yen

127.45

-0.42

-0.01%

Oil

$90.13

+$0.74

-1.43%

10-Year

1.555%

+0.127

+6.51%

Bond

150.03125

-2.46875

-1.15%

Dow

13075.66

+1.46%

+1.97%

Nasdaq

2958.09

+2.24%

+1.12%

S&P

1385.97

+1.91%

+1.71%

 
 

The Metals:

 

Gold climbed almost 1% to $1629.31 at around 8:20AM EST before it drifted back lower at times in New York, but it then bounced back higher in late trade and ended with a gain of 0.48%. Silver surged to as high as $27.839 before it also fell back off at times, but it still ended with a gain of 0.98%.

 

Euro gold rose to about €1320, platinum gained $7.25 to $1409.00, and copper gained four cents to about $3.43.

 

Gold and silver equities waffled near unchanged for most of the day, but they then climbed steadily higher in late trade and ended with about 1% gains.

The Economy:

 

Report

For

Reading

Expected

Previous

GDP

Q2

1.5%

1.2%

2.0%

Chain Deflator

Q2

1.6%

1.6%

2.0%

Michigan Sentiment

Jul

72.3

72.0

73.2

 

All of this week’s other economic reports:

 

Pending Home Sales - June

-1.4% v. 5.9%

Durable Orders - June

1.6% v. 1.6%

Durable Orders - ex Trans. - June

-1.1% v. 0.8%

Initial Claims - 7/21

353K v. 388K

New Home Sales - June

350K v. 382K

FHFA Housing Price Index - May

0.8% v. 0.7%

 

Next week’s economic highlights include Personal Income and Spending, Core PCE prices, the Employment Cost Index, the Case-Shiller 20-city Index, Chicago PMI, and Consumer Confidence on Tuesday, ADP Employment, the ISM Index, Construction Spending and a FOMC Rate Decision on Wednesday, Initial Jobless Claims and Factory Orders on Thursday, and July’s jobs data and ISM Services on Friday.

 

The Markets:

 

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

 

Oil found slight gains as the U.S. dollar index and treasuries fell after this morning’s economic data.

 

The Dow, Nasdaq, and S&P rose on “expectations Europe may move toward a new round of bond purchases to ease borrowing costs in Spain and Italy.”

 

Among the big names making news in the market Friday were Samsung, Apple, Barclays, Facebook, Merck, Starbucks, Elan, and Legg Mason.

The Commentary:

 

With the grain markets the center of the commodity universe this year on account of the fierce drought that has gripped the Midwest for what now seems like an eternity, commodity firms have been reaping a bonanza pushing the "buy those grains" theme for new speculators.

What has happened however is that corn prices have reached a point where the market is doing what it is supposed to be doing, namely shutting off demand.

First we learned that Smithfield, the nations' largest pork producer, began importing corn from Brazil. Even with the shipping costs to the East Coast, South American corn was still cheaper than US corn at the Gulf.

Now we learn today that Pilgrim's Pride, the world's second largest chicken producer, is working on an agreement to also import corn from Brazil.

While this does not signal an end to the bull run, it is a third warning shot across the bow, the first being shrinking ethanol margins, the second being Smithfield.

By the way, for those of you who might have missed it, check out my written interview with Eric King of King World News on the action in the gold market yesterday.

http://tinyurl.com/d88o3pw- Dan Norcini, More at http://www.traderdannorcini.blogspot.com/

 

GATA Posts:

 

 

Douglas Keenan: My thwarted attempt to tell of LIBOR shenanigans

EU may criminalize commodities price distortion

 

The Statistics:

Activity from: 7/26/2012

Gold Warehouse Stocks:

10,806,909.351

+16,051.372

Silver Warehouse Stocks:

141,078,502.610

+845,625.07

 

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

123.84

3,981,591

US$6,463m

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

ETFS Physical Gold

146.97

4,725,291

US$7,705m

Australian Stock Exchange (ASX)

Gold Bullion Securities

11.16

358,789

US$582m

Johannesburg Securities Exchange (JSE)

New Gold Debentures

39.35

1,265,119

US$2,041m

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

 

COMEX Gold Trust (IAU) Total Tonnes in Trust: 181.96: -0.94 change from yesterday’s data.

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

 

The Miners:

 

Eldorado’s (EGO) divided and second quarter results, Royal Gold’s (RGLD) update on the Pascua-Lama project, and Excellon’s (EXN.TO) update on the status of the illegal action at the Company's La Platosa mine were among the big stories in the gold and silver mining industry making headlines Friday.

 

WINNERS

1. McEwen

MUX +6.51% $3.11

2. Eldorado

EGO+6.06% $11.02

3. Ivanhoe

IVN +5.58% $8.70

LOSERS

1. Nevsun

NSU -4.59% $3.74

2. Newmont

NEM-3.40% $44.525

3. Midway

MDW -2.08% $1.41

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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© Gold Seeker 2012

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