• Gold: 1,272.11 -2.84
  • Silver: 14.95 -0.06
  • Euro: 1.125 -0.001
  • USDX: 97.337 0.05
  • Oil: 66.02 0.27

November 7: Gold and Silver Fall Almost 1%

Chris Mullen
|
Thursday, November 7th
 

Close

Gain/Loss

Gold

$1306.70

-$10.50

Silver

$21.60

-$0.18

XAU

91.73

-2.75%

HUI

227.98

-2.42%

GDM

667.05

-2.40%

JSE Gold

1352.84

+18.68

USD

80.83

+0.35

Euro

134.16

-0.99

Yen

102.04

+0.70

Oil

$94.20

-$0.60

10-Year

2.613%

-0.027

T-Bond

133.6875

+0.59375

Dow

15593.98

-0.97%

Nasdaq

3857.33

-1.90%

S&P

1747.15

-1.32%

 
 

The Metals:

 

Gold jumped $8.60 to $1325.80 after this morning’s surprise ECB rate cut before it fell to $1296.49 after GDP came out stronger than expected, but it then bounced back higher in late morning New York trade and ended with a loss of just 0.79%. Silver shot to $21.996 before it fell back to $21.382 and then also rallied back higher, but it still ended with a loss of 0.83%.

 

Euro gold remained at about €974, platinum lost $10 to $1449.50, and copper climbed a penny to about $3.25.

 

Gold and silver equities fell roughly 1.5% at the open before they rallied back to unchanged about an hour into trade, but they then fell to new session lows in afternoon trade and ended with about 2.5% losses on the day.

The Economy:

 

Report

For

Reading

Expected

Previous

GDP

Q3

2.8%

1.9%

2.5%

Chain Deflator

Q3

1.9%

1.4%

0.6%

Initial Claims

11/02

336K

335K

345K

Consumer Credit

Sep

$13.7B

$11.0B

$14.2B

 

Mortgage Delinquencies Reach 5-Year Low as Housing Heals Bloomberg

 

Tomorrow brings October’s jobs data, Personal Income and Spending, Core PCE Prices, Michigan Sentiment, and JOLTS data.

 

The Markets:

 

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

 

Oil fell and the U.S. dollar index jumped higher as the euro dropped markedly after the ECB surprisingly cut its main refinancing rate to a record-low 0.25%.

 

ECB Cuts Key Rate to Record Low to Fight Deflation Threat Bloomberg

Draghi Weighs Whether Rate Cuts Too Valuable as ECB Meets Bloomberg

 

Treasuries rose as the Dow, Nasdaq, and S&P erased early gains and ended noticeably lower on uncertainty about what the fed will do at its meeting next month. December’s 17-18th meeting is associated with a Summary of Economic Projections and a press conference by the Chairman.

 

Among the big names making news in the market today were Twitter, Tesla, Netflix, Freddie Mac, J.C. Penney, and Goldman Sachs.

The Commentary:

 

She's up - nope - wait a minute - She's down - hold on - She's back up a bit...

No, I am not referring to a horse running a race but rather to gold. Talk about some wild price action. So many cross currents and so much volatility... trying to trade gold on a day like this is an exercise in futility except for the most short term of traders, namely the scalpers.

The first mover this AM was an "out of nowhere", surprise rate cut over in the Euro Zone. The initial reaction to gold was "Yippee". Up it went on ideas of ultra loose monetary policy in that region of the globe. Shortly after that sent gold higher, US GDP data came in much better than expected and that pulled the rug completely out from beneath the metal as the Dollar surged higher on notions that the "TAPERING" was back on once again.

Traders were whipsawed severely this AM as both sides found something that they could trade off of but neither side got a clear advantage, YET, although it appears that the bears are attempting to seize a bit more ground as I type this up.

Bulls looked like they had seized the short term advantage when they powered gold up through $1325 on the rate cut surprise and European easy money policy. When the GDP number came out in the US it further bolstered the US Dollar and that sent the new longs scurrying and the bears began growling. That combined selling dropped the price below the important "13" handle level with gold sinking to as low as $1296. However, bulls came back in and regained that $1300 level.

Although the metal remains lower, it is still holding that 13 handle. It is IMPERATIVE that it do so. If it does not, look for a new push to begin soon that will test the resolve of the bulls as the bears try to take it down towards $1280 and perhaps even $1270.

As stated here frequently over the last couple of weeks - the key driver for gold right now remains the US Dollar. When the Euro is sinking over 1% against the Greenback and the USDX itself is up nearly 0.9% on the day, gold will face formidable selling pressure.

Also, crude oil is sinking yet again today having given up yesterday's short-covering rally induced gains.

Let's see what we get as the session wears on today before drawing any further conclusions at this point.

Have you noticed that today the "good news" ( I say this with all manner of sarcasm) about the US GDP number which has started the early TAPER TALK once again, seemingly has no impact on the S&P 500 for now?

Gee - I wonder if it can reach 1800 before Thanksgiving? Yep - there isn't a worry in the world about the state of the US economy. The VIX, Volatility Index, remains mired down near multi-year lows. Complacency rules supreme here in the US.- Dan Norcini, More at http://www.traderdannorcini.blogspot.com/

 

GATA Posts:

 

 

London Metal Exchange increases power to shorten warehouse queues

The first rule of mainstream financial journalism: Never question a central bank

Another cry from China about gold market manipulation

Brent crude traders claim proof that oil firms and other traders rigged oil market

Big time gap between 2013 and 2014 U.S. silver eagles

 

The Statistics:

As of close of business: 11/06/2013

Gold Warehouse Stocks:

7,155,334.376

+17,987.502

Silver Warehouse Stocks:

169,638,975.436

-188,208.86

 

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) AND Mexico Stock Exchange (BMV)

SPDR® Gold Shares

868.418

27,920,500

US$36,482m

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$5,816m

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$469m

Johannesburg Securities Exchange (JSE)

New Gold Debentures

41.77

1,342,959

US$1,773m

Note: Change in Total Tonnes from yesterday’s data: SPDR added 2.101 tonnes.

 

COMEX Gold Trust (IAU) Total Tonnes in Trust: 171.00: -0.54 change from yesterday’s data.

Silver Trust (SLV) Total Tonnes in Trust: 10,497.75: No change from yesterday’s data.

 

The Miners:

 

Royal Gold’s (RGLD) first quarter results, Revett’s (RVM) third quarter results, Richmont’s (RIC) third quarter results, Golden Star’s (GSS) updated Mineral Resource, and Randgold’s (GOLD) third quarter results were among the big stories in the gold and silver mining industry making headlines today.

 

WINNER

1. Randgold

GOLD +4.01% $77.24

LOSERS

1. Coeur

CDE -9.83% $10.91

2. Avino

ASM -7.20% $1.16

3. Alexco

AXU -6.67% $1.26

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 2013

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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