• Gold: 1,254.26 -1.54
  • Silver: 16.02 -0.01
  • Euro: 1.176 0.001
  • USDX: 93.932 0.443
  • Oil: 57.37 0.11

June 21: Gold and Silver Fall Over 2% and 4%

Chris Mullen
|
Thursday, June 21st

Please Note: There will not be any Gold Seeker Reports until Thursday, June 28th.

 

Close

Gain/Loss

Gold

$1566.30

-$40.10

Silver

$26.92

-$1.16

XAU

157.04

-5.51%

HUI

428.34

-5.27%

GDM

1239.45

-5.22%

JSE Gold

2511.71

-19.78

USD

82.30

+0.83

Euro

125.43

-1.62

Yen

124.53

-1.25

Oil

$78.20

-$3.25

10-Year

1.618%

-0.024

T-Bond

149.21875

+0.625

Dow

12573.57

-1.96%

Nasdaq

2589.09

-2.44%

S&P

1325.51

-2.23%

 
 

The Metals:

 

Gold fell to as low as $1564.57 and ended with a loss of 2.5%. Silver slipped to as low as $26.849 and ended with a loss of 4.13%.

 

Euro gold fell to about €1248, platinum lost $20.50 to $1434.50, and copper dropped another 7 cents to about $3.30.

 

Gold and silver equities fell throughout most of trade and ended with over 5% losses.

The Economy:

 

Report

For

Reading

Expected

Previous

Initial Claims

6/16

387K

380K

389K

Existing Home Sales

May

4.55M

4.56M

4.62M

Philadelphia Fed

June

-16.6

-0.2

-5.8

Leading Indicators

May

0.3%

0.0%

-0.1%

FHFA Housing Price Index

April

0.8%

-

1.6%

 

There are no major economic reports due out tomorrow.

 

The Markets:

 

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

 

Oil fell below $80 as the U.S. dollar index and treasuries rose on poor economic data around the world that sent the Dow, Nasdaq, and S&P markedly lower.

 

Among the big names making news in the market today were Chesapeake, BlueMountain, Pfizer, and Philip Morris.

The Commentary:

 

What a difference one day can apparently make in the minds of traders! Yesterday, following an initial sharp downside knee jerk reaction to the lack of an imminent QE3, Gold (and Silver) both rebounded well off their lows as traders became convinced that the Fed had surely left the door open to a round of QE should there be one more month of disappointing payrolls numbers.

That sentiment sure proved fleeting, not only in the precious metals markets, but across the entire spectrum of commodities, as well as the bond markets.

Die-hard equity bulls, who were consoling themselves that if they did not get their dearly beloved and eagerly anticipated round of drugs yesterday, would surely get it from their dope-dealing masters at the Fed soon, were throwing away everything that they had purchased yesterday at a big, fat, whopping loss. As mentioned in my piece on King World News, the equity markets DIED a long time ago as far as being any source of efficient allocation of precious capital. The entire structure is now being GAMED. Instead of XBOX or NINTENDO, (the younger kids and early adult are playing those), we have GAMERS trying to time the Fed and any other official monetary sector authorities. INVESTING is DEAD. What lives is who is fastest on the power key combination of their "ENTER" button to slam orders down the wires into the exchanges.

Whoops, another stumbling block - numbers out of China this AM reinforced the slowing global economy theme. Then, as if that were not enough, the Philly Fed readings confirmed more of the same. Further piling on were former Fed Chairman Alan Greenspan's comments that the economy was "very sluggish".

Bonds took back most of yesterday's losses with the yield on the Ten Year dropping back down towards the 1.6 level.

In short, DEFLATION was the theme of today's session as traders simply do not see any source of inflationary pressures without another quick round of liquidity injections, compliments of the Fed. That means that they are going to be selling commodities. Just take a look at crude oil which is imploding as it has now broken down through the bottom of chart support.

 

Silver is in serious trouble based on its technical chart. It MUST HOLD ABOVE THE RED SUPPORT LEVEL SHOWN or it is heading to $24.50 or even lower to $24 unless the bulls perform immediately. As you can see, going all the way back to September of last year, every time the metal has come down towards $26, it has not stayed there long. Buyers have always shown up. Those buyers had better be here.

 

The HUI Has further reinforced the 460 level as that level which MUST BE TAKEN OUT if the shares are going to sustain any sort of upward trending move. They are currently sitting right on the next level of chart support. If the buyers do not show up later today and tomorrow, there is a good chance that we will see the index drop to the next red line further down.

 

Gold has failed to break through the shorter term downtrending line noted on the chart that formed within the recent congestion zone. It has also failed to sustain its footing above psychological support at $1600. It now looks as if it is going to be up to the Eastern Central Banks to rescue the metal from hedge fund computer algorithms as it moves back down to its solid support zone noted on the chart.- Dan Norcini, More at http://www.traderdannorcini.blogspot.com/

 

GATA Posts:

 

 

Zero Hedge: The fundamental flaw in the Fed's thinking

GATA secretary scheduled for CNBC Asia appearance

 

The Statistics:

As of close of business: 6/20/2012

Gold Warehouse Stocks:

11,064,241.531

+1,896.28

Silver Warehouse Stocks:

146,003,627.727

+721,473.61

 

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

1281.619

41,205,335

US$65,953m

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

Gold Bullion Securities

121.81

3,916,276

US$6,203m

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

ETFS Physical Gold

144.83

4,656,394

US$7,593m

Australian Stock Exchange (ASX)

Gold Bullion Securities

14.21

472,115

US$724m

Johannesburg Securities Exchange (JSE)

New Gold Debentures

39.23

1,261,267

US$2,022m

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

 

COMEX Gold Trust (IAU) Total Tonnes in Trust: 181.70: No change from yesterday’s data.

Silver Trust (SLV) Total Tonnes in Trust: 9,821.45: No change from yesterday’s data.

 

The Miners:

 

Timberline’s (TLR) acquisition, ITH’s (THM) updated evaluation, Timmins Gold’s (TGD) extended credit facility, Huldra Silver’s (HAD.V) progress update, and Paramount’s (PZG) drill results were among the big stories in the gold and silver mining industry making headlines today.

 

No “winners” today.

LOSERS

1. Golden Minerals

AUMN -13.43% $4.19

2. Loncor

LON -13.16% $0.99

3. McEwen

MUX -11.46% $2.86

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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