• Gold: 1,456.56 1.52
  • Silver: 16.87 0.02
  • Euro: 1.103 0.000
  • USDX: 98.23 -0.172
  • Oil: 56.8 -0.13

September 4: Gold and Silver Gain With Dollar

Chris Mullen
|
Tuesday, September 4th
 

Close

Gain/Loss

Gold

$1695.30

+$3.50

Silver

$32.33

+$0.585

XAU

169.83

-0.03%

HUI

456.06

-0.52%

GDM

1318.99

-0.34%

JSE Gold

2211.34

-39.14

USD

81.35

+0.14

Euro

125.62

-0.17

Yen

127.54

-0.07

Oil

$95.30

-$1.17

10-Year

1.581%

+0.019

T-Bond

150.21875

-0.28125

Dow

13035.94

-0.42%

Nasdaq

3075.06

+0.26%

S&P

1404.94

-0.12%

 
 

The Metals:

 

Gold fell a few dollars from last Friday’s close to $1688.31 by a little after 9:30AM EST before it jumped back to $1698.76 in the next half hour of trade and then drifted back lower midday, but it then rallied back higher in late trade and ended with a gain of 0.21%. Silver climbed to $32.27 in Asia before it slipped to $31.90 in London, but it then climbed to as high as $32.40 in New York and ended with a gain of 1.84%.

 

Euro gold climbed to almost €1350, platinum gained $33.75 to $1567, and copper climbed a couple of cents to about $3.47.

 

Gold and silver equities traded mostly slightly lower and ended with modest losses.

The Economy:

 

Report

For

Reading

Expected

Previous

ISM Index

Aug

49.6

50.0

49.8

Construction Spending

July

-0.9%

0.5%

0.4%

 

Federal debt tops $16 trillion, Treasury Dept. says Washington Times

Tomorrow at 8:30AM EST brings second quarter Productivity expected at 1.8% and Unit Labor Costs expected at 1.4%.

 

The Markets:

 

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

 

Oil fell on worse than expected economic data.

 

The U.S. dollar index found slight gains as the euro dropped on worries about ECB bond buying.

 

Treasuries ended with slight losses as the Dow, Nasdaq, and S&P reversed some of their morning losses and ended mixed on the day.

 

Among the big names making news in the market today were Campbell Soup, Chrysler, Ford, Lufthansa, Amazon, Valeant and Medicis Pharmaceutical, and TPC.

The Commentary:

 

Gold bulls managed to push the yellow metal to the psychologically significant $1700 for the first time in months. As can be expected, it could not hold ABOVE the level as selling from both fresh short sellers and some profit taking from longs, surfaced on the first approach to this round number.

Gold has a history of pausing around these even or round numbers, retreating, consolidating a bit, and then pushing through and moving to the next resistance level on the charts.

It looks to me like the weakness in the gold mining stocks in today's session, which are feeling spillover from the generally lower stock market, is enabling the capping action at $1700. I would personally like to see the HUI power through the 460 level as I think it would enable the gold bulls to beat back the bullion bank selling at the highs of today's session.

 

Incidentally, Euro Gold, or gold priced in terms of the Euro, is within a mere 20 euros or so of its all-time high!

Silver is once again leading Gold to the upside as this market is now running on pure momentum as hot money pours in chasing prices higher. I am looking at $32.50 as a resistance level that needs to be cleared if silver is going to mount a push to the all-important $35.00 - $35.50 region. So far silver has pushed within .07 or 7 cents from $32.50 where the sellers showed up. Bulls however as of yet show no signs of growing weary and are buying dips in price. Support is rising and comes in at $31.50 near today's low and then $30.00 - $30.25.- Dan Norcini, More at http://www.traderdannorcini.blogspot.com/

 

“With Summer unofficially behind us now, we enter three of the more interesting months of every trading year.

 

U.S. Stock Market - The “Don’t Worry, Be Happy” crowd on Wall Street shall eat up the perception that Bernanke and the FED have or will be in QE3 mode. Despite numerous fundamental and technical reasons for concern, it’s been my belief that the path of least resistance remains up, not down. I continue to think a marginal, new all-time high is possible.

 

U.S. Bonds – Thanks to QE3 unfolding, I continue to hope the 10yr. T-Bond yield can get down to 1.25% It would be a screaming short if and when it does. U.S. bonds look to be the worse investment vehicle for the next decade.

 

U.S. Dollar – Despite something like 95%-98% bulls, the U.S. Dollar managed only a dead-cat bounce and is rolling over as we speak. This is in the face of Europe still a basket case (what does that say about the dollar once Uncle Sam shows to be even a bigger basket case next year?). The only party that doesn’t know the U.S Dollar is terminally ill is the U.S. Dollar.

 

Gold - The “mother” of all gold bull markets has had a classic consolidation/correction in a secular bull market that still has much left on the upside.

 

Please remember we shall be collecting funds for the “Tokyo Rose” of gold bears when we go to new highs.

 

Oil and Natural Gas - Triple-digit oil is around the corner. Natural gas remains an avoid.

 

Special Note - The one fly in the ointment for many markets remains the belief it’s a question of when, not if, war breaks out between Israel and Iran. There are all sorts of signs suggesting it’s indeed when and the number of possible scenarios that can unfold if and when this take place are many. We shall see if and when the time comes and go from there.”- Peter Grandich, Grandich Letter

 

GATA Posts:

 

 

Russia Today interviews GATA Chairman Murphy on Wednesday

Swiss National Bank vows to keep holding franc down

Frank Giustra explains his bet on the resource sector

Butler tells MineWeb why he sees silver's potential greater than gold's

 

The Statistics:

As of close of business: 8/31/2012

Gold Warehouse Stocks:

10,923,615.238

-37,936.177

Silver Warehouse Stocks:

141,959,886.698

+1,009,045.02

 

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

1289.519

41,459,310

US$68,320m

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

Gold Bullion Securities

131.28

4,220,879

US$7,151m

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

ETFS Physical Gold

148.91

4,787,678

US$7,807m

Australian Stock Exchange (ASX)

Gold Bullion Securities

11.16

358,789

US$607m

Johannesburg Securities Exchange (JSE)

New Gold Debentures

41.26

1,326,494

US$2,121m

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

 

COMEX Gold Trust (IAU) Total Tonnes in Trust: 188.87: No change from yesterday’s data.

Silver Trust (SLV) Total Tonnes in Trust: 9,671.60: -49.73 change from yesterday’s data.

 

The Miners:

 

Goldcorp’s (GG) dividend, NovaGold’s (NG) new Executive Vice President and General Counsel, Brigus Gold’s (BRD) drill results, Vista Gold’s (VGZ) updated mineral resource estimate, and Gold Fields’ (GFI) unlawful and unprotected strike were among the big stories in the gold and silver mining industry making headlines today.

 

WINNERS

1. Northern Dynasty

NAK +24.38% $3.52

2. Jaguar

JAG +16.16% $1.15

3. Avino

ASM +11.97% $1.59

LOSERS

1. Harmony

HMY -3.86% $8.21

2. Gold Standard

GSV -2.29% $1.71

3. Newmont

NEM-1.71% $49.47

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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