• Gold: 1,487.55 -0.13
  • Silver: 17.52 0.00
  • Euro: 1.113 -0.000
  • USDX: 97.485 0.157
  • Oil: 54.36 0.72

May 8: Gold Gains Over 1% While Silver Slips

Chris Mullen
|
Wednesday, May 8th
 

Close

Gain/Loss

Gold

$1472.60

+$20.60

Silver

$23.91

-$0.02

XAU

110.46

+5.05%

HUI

286.80

+5.91%

GDM

843.86

+5.44%

JSE Gold

1481.82

+16.85

USD

81.93

-0.37

Euro

131.55

+0.77

Yen

101.05

+0.03

Oil

$96.62

+$1.00

10-Year

1.760%

-0.023

T-Bond

146.46875

+0.21875

Dow

15105.12

+0.32%

Nasdaq

3413.26

+0.49%

S&P

1632.69

+0.41%

 
 

The Metals:

 

Gold saw a slight loss at $1450.14 at about 6AM EST before it jumped up to $1469.90 by a little after 8AM EST and then drifted back off into midday, but it then jumped to a new session high of $1476.30 in early afternoon New York trade and ended with a gain of 1.42%. Silver dropped to $23.73 before it jumped up to $24.08 and then fell back off to $23.67, but it then climbed back to as high as of $24.00 in early afternoon New York trade and ended with a loss of just 0.08%.

 

Euro gold climbed back over €1119, platinum gained $20.50 to $1496.50, and copper climbed 6 cents to about $3.36.

 

Gold and silver equities rose over 5% by early afternoon and remained near that level for the rest of the day.

The Economy:

 

U.S. Mortgage Applications Up 7% Last Week - MBA Fox Business

U.S. April surplus up, year-to-date deficit down: CBO Reuters

Fed's credibility tested as inflation drifts below target Reuters

 

Tomorrow at 8:30AM EST brings Initial Jobless Claims for 5/04 expected at 336,000 and at 10AM is the Wholesale Inventories report for March expected at 0.3%.

 

The Markets:

 

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

 

Oil rose after the Energy Information Administration reported that crude inventories rose 200,000 barrels, gasoline inventories fell 900,000 barrels, and distillates rose 1.8 million barrels.

 

The U.S. dollar index fell as the euro rose on better than expected industrial data out of Germany.

 

Treasuries remained modestly higher after today’s $24 billion 10 year note auction sold at a yield of 1.81% with a bid to cover of 2.70.

 

The Dow, Nasdaq, and S&P traded mostly slightly higher on decent earnings reports.

 

Among the big names making news in the market today were Bank of America, Delta, Yahoo, AOL, Chesapeake, Freddie Mac, and JPMorgan.

The Commentary:

 

U.S. Stock Market – I’ve shown since the first of the year a technical chart of the DJIA in what is known as a “megaphone” position. I noted that it suggested we could see 15,000 – 15, 500 before topping out.

 

We’re now in a danger zone. Many signs of a major top are now taking hold. TOUT-TV has gone back to beating their puny chests (as they have done at other major tops) and a sense that so long as the FED continues QE the market can’t miss. When you combined this with the fact that the “Don’t Worry, Be Happy” crowd have convince the investing public (and themselves) one must always be in stock or bonds or both (Remember, you can toss one of the Talking Heads off the top of the Empire State Building and all the way down they will say the same thing – so far so good!), you’re setting up for a major fall.

 

U.S. Bonds – Here too an air of invincible has gripped the bulls and a sense interest rates are never, ever going to rise substantially so keep partying-on dude. Bonds are clearing the worse of two evils versus stocks.

 

U.S. Dollar Index – Quietly and without much discussion, the technical picture of the Index gets worse. All sorts of failed momentum and relative strength indicators are screaming this.

 

Gold – The next $50 move in gold could very well signal where the next $500 goes. A close above $1,500 and the gold “take-down” a few weeks ago blows up in the bears faces big-time. However, if we for some reason go back under $1,400, the bears could collapse the market. The good thing this time around my heart and brain both believe it’s to the upside. Remember, physical buyers around the world continue to say only one thing on any decline.

 

Mining and Exploration Shares – I’ve received numerous inquiries about my alternative to traditional financial planning process and many who have contacted me all share a common position with me – we got killed in junior resource stocks. That’s why I think on any real rally we’re going to see more than usual resistance as like me, these folks don’t want the financial and mental anguish anymore of being in such a position. A close above $1,500 and more importantly $1,700 in gold, is what needed to get the juniors moving up again in a big way.”- Peter Grandich, Grandich Letter

 

GATA Posts:

 

 

Gold plunge was not natural market event, fund manager Auerback says

GATA Chairman Bill Murphy interviewed by Jay Taylor

MineWeb's Lawrence Williams: GATA gaining credence

What a 'bear market'! India's gold imports seen topping 100 tonnes for second month

That's some 'bear market': China is taking all the gold it can get

 

The Statistics:

As of close of business: 5/07/2013

Gold Warehouse Stocks:

8,001,236.313

-60,972.048

Silver Warehouse Stocks:

163,981,771.159

-331,378.68

 

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

1057.785

34,008,852

US$49,897m

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$6,512m

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$528m

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 5.142 tonnes.

 

COMEX Gold Trust (IAU) Total Tonnes in Trust: 194.79: No change from yesterday’s data.

Silver Trust (SLV) Total Tonnes in Trust: 10,431.39: No change from yesterday’s data.

 

The Miners:

 

Pretivm’s (PVG) access ramp, Aurizon’s (AZK) election results, Coeur’s (CDE) CFO appointment, Banro’s (BAA) first quarter results, Franco-Nevada’s (FNV) first quarter results, Huldra Silver’s (HDA.V) filed technical report, Timmins Gold’s (TGD) first quarter results, and AngloGold’s (AU) CEO appointment were among the big stories in the gold and silver mining industry making headlines today.

 

WINNERS

1. Pretivm

PVG +16.94% $7.73

2. IAMGOLD

IAG +11.90% $6.02

3. Barrick

ABX +8.46% $21.41

LOSERS

1. Comstock

LODE -2.49% $1.96

2. Avino

ASM -0.85% $1.16

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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