• Gold: 1,471.65 4.84
  • Silver: 17.04 0.10
  • Euro: 1.107 0.002
  • USDX: 97.795 -0.205
  • Oil: 56.94 -0.96

October 17: Gold and Silver Gain While Dollar Drops

Chris Mullen
|
Wednesday, October 17th
 

Close

Gain/Loss

Gold

$1748.70

+$1.05

Silver

$33.15

+$0.20

XAU

191.04

+1.14%

HUI

509.46

+1.03%

GDM

1463.68

+0.93%

JSE Gold

2432.35

-23.56

USD

79.02

-0.35

Euro

131.25

+0.56

Yen

126.64

-0.18

Oil

$92.12

+$0.03

10-Year

1.811%

+0.091

T-Bond

146.65625

-1.53125

Dow

13557.00

+0.04%

Nasdaq

3104.12

+0.10%

S&P

1460.91

+0.41%

 
 

The Metals:

 

Gold climbed up to $1753.30 in Asia before it fell back to $1742.79 by a little before 10AM EST, but it then rallied back higher in the next couple of hours of trade and ended with a gain of 0.6%. Silver rose to $33.14 before it fell back to $32.847, but it then rose to a new session high of $33.255 and ended with a gain of 0.61%.

 

Euro gold fell to about €1333, platinum gained $31 to $1665, and copper climbed 4 cents to about $3.75.

 

Gold and silver equities rose about 1% by midday and remained near that level for the rest of the day.

The Economy:

 

Report

For

Reading

Expected

Previous

Housing Starts

Sep

872K

768K

758K

Building Permits

Sep

894K

815K

801K

 

U.S. mortgage applications fall 4.2 percent; purchase demand up: MBA Reuters

Tomorrow at 8:30AM EST brings Initial Jobless Claims for 10/13 expected at 360,000 and at 10AM are Leading Economic Indicators for September expected at 0.2% and the Philadelphia Fed for October expected at -0.1.

 

The Markets:

 

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

 

Oil erased most of its early gains after the Energy Information Administration reported that crude inventories rose 2.9 million barrels, gasoline inventories rose 1.7 million barrels, and distillates fell 2.2 million barrels.

 

The U.S. dollar index and treasuries fell as the euro rose after Spain kept its investment-grade credit rating from Moody’s Investors Service.

 

The Dow, Nasdaq, and S&P traded mixed as better than expected housing data and relief over Europe was offset by disappointing earnings reports.

 

Among the big names making news in the market today were IBM, Knight Capital, BofA, BlackRock, Exxon, Nike, Abbott, and PepsiCo.

The Commentary:

 

U.S. Stock Market – I’ve often said it’s not so much what you do but what you avoid doing in the market that ends up separating the winners from the losers. I believe you would sooner find a needle in a haystack than a bullish U.S. stock market commentator within the hard asset community (where I ply myself) or among the investors who are fond for metals and mining shares. I know because many of them have questioned why I haven’t bet against the market for almost five years and have said for much of 2012 it would come as no surprise that the market made a new, marginal all-time high.

 

Barring something unforeseen and/or a Middle East conflict far worse than most anticipate, I continue to believe the “Don’t Worry, Be Happy” crowd on Wall Street shall pull out all the stops (and say whatever is necessary) to achieve this goal. But such a feat is not going to be the beginning of something much bigger IMHO but just the conclusion of the greatest bear market rally in the secular bear market of all time (that began in November 2007). It’s my personal goal to be very liquid by this time next year (and that may include lightning up on all equities).

 

It’s just a gentle reminder for now but as 2013 takes hold is likely to become a warning (which means don’t send me emails about selling anytime soon).

 

U.S. Bonds – I continue to hope the “happy” people on Wall Street can get the 10-year T-Bond down to 1.25% but time is not on their side. I continue to believe U.S. bonds shall end up the worse investment for the next decade and hope to get a chance to get aggressively short them before the house of cards comes tumbling down.

 

U.S. Dollar – A very bearish technical signal has been trigger in the daily charts of the U.S. Dollar Index. A “Death Cross” (when the 50-Day M.A. crosses the 200-Day M.A.) has occurred (Point A) and it looks like the Index wants to test critical support around 78. Stay tuned.

 

Gold and Silver – I think it’s pretty clear where I stand here. One note of interest was the report of a large delivery request of silver made last week to J.P. Morgan and the difficulty to make good on the whole delivery. We saw the typical bear raid around this and I smell bear meat upcoming.

 

Oil and Natural Gas – I remain bullish on oil and anticipate a seasonal bounce in natural gas.”- Peter Grandich, Grandich Letter

 

GATA Posts:

 

 

Mexican journalist tracks down his country's gold -- in London

 

The Statistics:

As of close of business: 10/16/2012

Gold Warehouse Stocks:

11,208,998.653

-32.15

Silver Warehouse Stocks:

140,815,454.200

-1,348,001.31

 

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

1333.889

42,885,878

US$74,886m

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

Gold Bullion Securities

142.96

4,596,392

US$8,037m

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

ETFS Physical Gold

154.23

4,958,705

US$8,086m

Australian Stock Exchange (ASX)

Gold Bullion Securities

11.16

358,789

US$627m

Johannesburg Securities Exchange (JSE)

New Gold Debentures

42.45

1,364,715

US$

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

 

COMEX Gold Trust (IAU) Total Tonnes in Trust: 205.95: +0.88 change from yesterday’s data.

 

Silver Trust (SLV) Total Tonnes in Trust: 9,861.44: -24.10 change from yesterday’s data.

 

The Miners:

 

AuRico’s (AUQ) sold interest in Endeavour Silver (EXK), Gold Reserve’s (GRZ) note extension, and Gold Fields’ (GFI) resolved strike were among the big stories in the gold and silver mining industry making headlines today.

 

WINNERS

1. Comstock

LODE+6.91% $2.94

2. Solitario

XPL +4.22% $1.73

3. AuRico

AUQ +4.05% $8.23

LOSERS

1. Endeavor Silver

EXK -3.23% $9.00

2. Mines MGMT

MGN -2.94% $1.32

3. ITH

THM -2.53% $2.70

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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