• Gold: 1,263.02 7.22
  • Silver: 16.14 0.10
  • Euro: 1.180 0.005
  • USDX: 93.548 -0.384
  • Oil: 57.47 0.21

May 17: Gold and Silver Gain Over 2% and 3%

Chris Mullen
|
Thursday, May 17th
 

Close

Gain/Loss

Gold

$1573.70

+$34.30

Silver

$28.02

+$0.87

XAU

147.69

+3.76%

HUI

393.25

+4.44%

GDM

1144.28

+4.58%

JSE Gold

2188.24

-13.14

USD

81.45

+0.01

Euro

127.01

-0.14

Yen

126.21

+1.68

Oil

$92.56

-$0.25

10-Year

1.702%

-0.063

T-Bond

148.375

+1.5625

Dow

12442.49

-1.24%

Nasdaq

2813.69

-2.10%

S&P

1304.86

-1.51%

 
 

 

The Metals:

 

Gold jumped to as high as $1579.80 by midday in New York before it drifted a bit in afternoon trade, but it still ended with a gain of 2.23%. Silver surged to as high as $28.33 and ended with a gain of 3.2%.

 

Euro gold rose to almost €1239, platinum gained $23 to $1449, and copper fell slightly to about $3.47.

 

Gold and silver equities rose about 4% by late morning and remained near the level for the rest of the day.

 

Latest Issue: Gold Demand Trends Q1 2012 - WGC

 

The Economy:

 

Report

For

Reading

Expected

Previous

Initial Claims

5/12

370K

365K

370K

Philadelphia Fed

May

-5.8

8.8

8.5

Leading Indicators

Apr

-0.1%

0.2%

0.3%

 

There are no major economic reports due out tomorrow.

 

The Markets:

 

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

 

Oil fell as the U.S. dollar index and treasuries rose on poor economic data and continued worries about Greece and Spain that sent the euro and the Dow, Nasdaq, and S&P lower.

 

Among the big names making news in the market today were JPMorgan, Tiffany, Pinterest, Sears, Goldman Sachs, Berkshire Hathaway, Wal-Mart, and Agilent.

 

The Commentary:

 

While one day's worth of price action does not a trend make, it is interesting to me watching the combination of price action in both the gold market and in the Treasury market.

In the long bond, the market has broken into a new all-time high. That is significant as it shows that traders there are anticipating an upcoming round of bond purchases attached to a new Federal Reserve round of Quantitative Easing. It seems as if the catalyst for today's surge higher was the Philadelphia Fed business index drop to an unexpected -5.8. Business conditions in that corner of the realm are worsening rather quickly.

 

Note also that the yield on the Ten Year Note has now fallen solidly BELOW that critical 1.80% level. This is what has traders moving towards action by the Fed. That line is technically significant, as has been stated before, seeing that we have never had a WEEKLY CLOSE below this level and it is now Thursday! If this yield were to further break below that spike low at 1.696% and the Fed were to NOT ACT, Bernanke would get his place in history all right, but it would not be in the light that he no doubt is hoping for!

 

All of this appears to be the driver in the nice pop higher in the gold market this morning, continuing the rally that began in Asian trading last evening. A push past $1580 would certainly startle the bears and induce further short covering that has the potential to take the price back to the key $1600 level.

Let's see where the dust settles at the end of the trading session today. For now, it appears that traders are regarding any dose of rotten economic news as increasing the odds of QE sooner rather than later.

If, and this is the big question, IF gold becomes CONVINCED that the Fed is going to act, it will immediately bottom. That is all one needs to know about the gold market. Nothing else will matter at that point.

We are back to picking the petals from Daisy flowers - She loves me; she loves me not. The Fed loves me; the Fed loves me not. Will it do the QE or will it not???- Dan Norcini, More at http://www.traderdannorcini.blogspot.com/

 

GATA Posts:

 

 

Grandich, Sinclair do hand-holding for monetary metals investors

Japanese pension fund buys gold -- but only the ETF kind

 

The Statistics:

As of close of business: 5/16/2012

Gold Warehouse Stocks:

11,001,357.934

+1,167.85

Silver Warehouse Stocks:

142,314,990.830

+317,442.40

 

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

awaited

awaited

US$awaited

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

Gold Bullion Securities

awaited

awaited

US$awaited

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

ETFS Physical Gold

awaited

awaited

US$awaited

Australian Stock Exchange (ASX)

Gold Bullion Securities

awaited

awaited

US$awaited

Johannesburg Securities Exchange (JSE)

New Gold Debentures

awaited

awaited

US$awaited

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

 

COMEX Gold Trust (IAU) Total Tonnes in Trust: 176.58: -0.91 change from yesterday’s data.

 

Silver Trust (SLV) Total Tonnes in Trust: 9,516.40: No change from yesterday’s data.

 

The Miners:

 

Gold Reserve’s (GRZ) notice on notes, Eurasian’s (EMXX) first quarter results, Gold Fields’ (GFI) quarterly results, and MAG Silver’s (MVG) drill results were among the big stories in the gold and silver mining industry making headlines today.

 

WINNERS

1. Mines MGMT

MGN+20.87% $1.39

2. Extorre

XG +15.18% $2.58

3. Great Panther

GPL +12.99% $1.74

 

LOSERS

1. Golden Minerals

AUMN -16.3% $3.39

2. Loncor

LON -5.88% $1.12

3. Ivanhoe

IVN -4.68% $8.56

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

Note: This article may be reproduced provided the article, in full, is used and mention to Gold-Seeker.com is given.

 

 

Disclosure: The owner, editor, writer and publisher and their associates are not responsible for errors or omissions. The author of this report is not a registered financial advisor. Readers should not view this material as offering investment related advice. Gold-Seeker.com has taken precautions to ensure accuracy of information provided. Information collected and presented are from what is perceived as reliable sources, but since the information source(s) are beyond Gold-Seeker.com’s control, no representation or guarantee is made that it is complete or accurate. The reader accepts information on the condition that errors or omissions shall not be made the basis for any claim, demand or cause for action. Past results are not necessarily indicative of future results. Any statements non-factual in nature constitute only current opinions, which are subject to change. Nothing contained herein constitutes a representation by the publisher, nor a solicitation for the purchase or sale of securities & therefore information, nor opinions expressed, shall be construed as a solicitation to buy or sell any stock, futures or options contract mentioned herein. Investors are advised to obtain the advice of a qualified financial & investment advisor before entering any financial transaction.

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