• Gold: 1,498.10 -16.14
  • Silver: 16.93 -0.19
  • Euro: 1.110 0.001
  • USDX: 98.198 0.056
  • Oil: 55.09 0.18

March 6: Gold and Silver Rise, Miners Jump Higher

Chris Mullen
|
Wednesday, March 6th
 

Close

Gain/Loss

Gold

$1583.40

+$8.40

Silver

$29.05

+$0.38

XAU

134.29

+4.20%

HUI

354.56

+3.95%

GDM

1039.05

+4.05%

JSE Gold

1800.64

-53.10

USD

82.48

+0.39

Euro

129.91

-0.60

Yen

106.31

-0.84

Oil

$90.43

-$0.39

10-Year

1.938%

+0.044

T-Bond

144.40625

-0.75

Dow

14296.24

+0.30%

Nasdaq

3222.36

-0.05%

S&P

1541.46

+0.11%

 
 

The Metals:

 

Gold dropped to $1567.40 at about 9:45AM EST before it rebounded to $1584.58 in the next hour of trade and then fell back to about unchanged by early afternoon in New York, but it then rallied back higher in the last few hours of trade and ended with a gain of 0.53%. Silver slipped to $28.54 before it jumped up to $29.067 and then also fell back off, but it still ended with a gain of 1.33%.

 

Euro gold climbed to almost €1219, platinum lost $4 to $1581.50, and copper fell slightly to about $3.51.

 

Gold and silver equities rose throughout most of trade and ended with about 4% gains.

The Economy:

 

Report

For

Reading

Expected

Previous

ADP Employment

Feb

198K

150K

215K

Factory Orders

Jan

-2.0%

-2.2%

1.3%

 

Mortgage applications surged last week as rates fell: MBA Reuters

The fed’s Beige Book noted that: “The majority of districts reported modest improvements in labor market conditions, although hiring plans were limited in several districts,” the central bank said in its Beige Book business survey, which is based on reports from the Fed’s 12 regional banks. “Residential real estate markets strengthened in nearly all districts and home prices rose amid falling inventories across much of the country.”

 

Tomorrow brings Initial Jobless Claims, the Trade Balance, Productivity, Unit Labor Costs, and Consumer Credit.

 

The Markets:

 

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

 

Oil fell after the Energy Information Administration reported that crude inventories rose 3.8 million barrels, gasoline inventories fell 600,000 barrels, and distillates fell 3.8 million barrels.

 

The U.S. dollar index rose and treasuries fell on better than expected jobs data that sent the Dow, Nasdaq, and S&P mostly higher.

 

Among the big names making news in the market today were Hovnanian, Virgin Media, Microsoft, and Verizon.

The Commentary:

 

HUI to Gold Ratio exceeds Nov. 2008 low then bounces

 

The ratio briefly dropped below the low made back in November of 2008 before bouncing higher in today's session. It came very close to matching the October 2008 low. It could be that we have gotten the answer to our question posed previously whether the gold shares would need to move lower against the price of bullion before the HUI would finally bottom out. I want to see a bit more subsequent action to feel that has been confirmed.

By the way, I will try to provide a CLOSING chart of this later on today if my schedule permits.

 

As far as the actual index itself goes, it ran to within a point or so of the 61.8% Fibonacci Retracement level noted on the monthly chart before attracting what seems to be at this point a significant amount of buying. I want to take a look at some of the actual stocks that comprise this index to get a better sense of whether this is a one day wonder or is the long-awaited selling climax. Again, that will need to await the close of trading today and also how these things behave tomorrow. The weekly close is also going to take on a great deal of significance given the extent of the price decline in this sector, particularly against the backdrop of an upside runaway in the broader equities.

Note that the technical indicator has surpassed the 2008 low in regards to its oversold reading. It is back to levels last seen in 2001, TWELVE YEARS AGO!

 

Incidentally, gold itself is stronger in terms of all of the major currencies today; Canadian Dollar, Swiss Franc, Euro and Yen. It is basically holding steady against the Aussie which is vacillating up and down today against the US Dollar. This is coming on the heels of a stronger Dollar which is noteworthy. In observing the price action in the metal today it looked as if the bears were gunning for downside stops below $1570. They didn't reach them!

I was surprised at the ferocity of the rebound off that level as it reversed quite sharply to the upside around 8:45 AM CST on strong volume. Someone either covered in large size or some new buying came in. I am not sure which it was right now but the volume was big. I would like to see the metal close out a pit session trade this week ABOVE $1587 or so. That would make some of the Johnnie-come-lately gold bears extremely nervous. It will still take a closing push or good intraday push through $1600 to confirm a near term bottom. That would also need confirmation by the HUI.- Dan Norcini, More at http://www.traderdannorcini.blogspot.com/

 

GATA Posts:

 

 

Jan Skoyles: The Mexican standoff -- gold, Banxico, and the Bank of England

Citi's Fitzpatrick's charts bullish; Hinde's Mahaffey sees debt underpinning gold

Ed Steer: Don't invest in monetary metals miners if they won't defend themselves

British financial regulator was warned of 'significant' Libor problem in 2008

A tribute to South Africa's 'Mr. Gold,' longtime GATA supporter Peter George

 

The Statistics:

As of close of business: 3/05/2013

Gold Warehouse Stocks:

10,097,931.248

-103,737.316

Silver Warehouse Stocks:

163,644,321.023

-91,810.13

 

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

1244.855

40,023,346

US$62,965m

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

Gold Bullion Securities

138.13

4,441,056

US$7,016m

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

ETFS Physical Gold

152.66

4,908,200

US$8,004m

Australian Stock Exchange (ASX)

Gold Bullion Securities

11.16

358,789

US$568m

Johannesburg Securities Exchange (JSE)

New Gold Debentures

42.45

1,364,715

US$2,214m

Note: Change in Total Tonnes from yesterday’s data: SPDR subtracted 8.428 tonnes.

 

COMEX Gold Trust (IAU) Total Tonnes in Trust: 214.21: -0.38 change from yesterday’s data.

 

Silver Trust (SLV) Total Tonnes in Trust: 10,646.48: No change from yesterday’s data.

 

The Miners:

 

WINNERS

1. McEwen

MUX +18.42% $2.70

2. Vista Gold

VGZ +17.86% $1.98

3. Tanzanian Royalty

TRX +15.84% $3.73

4. Seabridge

SA +11.07% $13.75

5. Great Panther

GPL +10.19% $1.19

6. Pretivm

PVG +10.07% $7.87

LOSERS

1. Northern Dynasty

NAK -2.11% $2.79

2. Midway

MDW-1.85% $1.06

3. Timmins

TGD -1.78% $2.21

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 2013

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