• Gold: 1,225.70 0.37
  • Silver: 14.48 0.00
  • Euro: 1.138 0.000
  • USDX: 96.735 -0.101
  • Oil: 54.5 1.13

Gold Seeker Closing Report: Gold and Silver End With Decent Gains

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January 26, 2012 - 4:41pm
 

Close

Gain/Loss

Gold

$1719.80

+$9.00

Silver

$33.37

+$0.11

XAU

199.93

+1.13%

HUI

535.78

+0.94%

GDM

1548.45

+1.09%

JSE Gold

2939.66

+129.01

USD

79.41

-0.01

Euro

131.00

-0.06

Yen

129.14

+0.55

Oil

$99.70

+$0.30

10-Year

1.931%

-0.076

T-Bond

142.84375

+1.0625

Dow

12734.63

-0.18%

Nasdaq

2805.28

-0.46%

S&P

1318.45

-0.57%

 
 

 

The Metals:

 

Gold climbed to as high as $1730.26 by about 10AM EST before it fell back off a bit into the close, but it still ended with a gain of 0.53%. Silver rose to $33.784 before it also dropped in late trade, but it still ended with a gain of 0.33%.

 

Euro gold rose to about €1313, platinum gained $24.75 to $1603.00, and copper gained 7 cents to about $3.90.

 

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

 

The Economy:

 

Report

For

Reading

Expected

Previous

Initial Claims

1/21

377K

375K

356K

Durable Orders

Dec

3.0%

2.0%

4.3%

Durable Orders -ex Auto

Dec

2.1%

0.7%

0.5%

New Home Sales

Dec

307K

321K

314K

Leading Indicators

Dec

0.4%

0.7%

0.2%

 

Tomorrow at 8:30AM EST brings fourth quarter GDP expected at 3.2% and the Chain Deflator expected at 1.5%.At 9:55 is Michigan Sentiment for January expected at 74.2.

 

The Markets:

 

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

 

Oil saw modest gains as the U.S. dollar index remained weak in further reaction to yesterday’s fed announcement.

 

Treasuries remained higher after today’s $29 billion 7-year note auction sold at a record low yield of 1.359% with a bid to cover of 2.73.

 

The Dow, Nasdaq, and S&P rose in early trade on strong earnings reports, but they then fell back off into the close on disappointing housing data.

 

Among the big names making news in the market today were AT&T, 3M, Caterpillar, Bristol-Myers, Illumina, and Greenlight.

 

The Commentary:

 

The binge continues unabated in today's session as both gold and silver bulls are giddy with delight over the FOMC statement from yesterday while bears are still trying to locate what is left of their trading accounts. Both metals are pressing higher as the US Dollar continues to plummet now that the Fed has basically given it the kiss of death once again.

Lost in this stupid euphoria over zero interest rates for the next TWO YEARS is the pathetic fact that the Fed has just consigned the savings accounts of all of our retired citizens and the elderly to the wastelands. How in the hell are they supposed to live off the fruit of their labors and enjoy their retirement SAFELY and without concerns when the monetary masters have just laid them on the altar and sacrificed them to the hedge fund gods?

This is the price we supposedly have to pay in order to watch the stock market rally - namely turning our entire generation of senior citizens into a band of wild-eyed speculators if they are to hope to obtain more than a pitiful 1% on their one year Certificate of Deposits in their local banks.

I wish that some one of these Republican presidential candidates besides Ron Paul would actually begin to deal with this madness head on. After all, we are talking about a primary in Florida, a state loaded with senior citizens and other retirees who were hoping to live off the interest yields on their savings and other CONSERVATVE investments. My view is that what the Fed is doing is downright criminal in the sense that it is plundering the wealth of those who have saved in order to prop up the rotten house of Dagon.

As a trader I have to deal with what the market gives me and what that is at the moment is a veritable orgy of risk asset buying by hedge fund managers. As a private citizen however I have to shake my head in dismay that this is now what passes for sound monetary policy and is conducive to lasting prosperity. Have we lost our collective minds?

As I stated yesterday, the end result of this FOMC green light to the speculative community is to borrow all the "free money" you can get your hands on, leverage that up at least 10:1, and plow it into commodities and other risk assets and have at it. Bring back that carry trade and let's get this party going as we are in an election year and we cannot have a sagging stock market or actually deal with the real problems associated with $16 trillion in debt.

Quo vadis America?- Dan Norcini, More at http://www.traderdannorcini.blogspot.com/

 

U.S. Stock Market – With QE 2.5 announced yesterday, I continue to believe the least resistance for the stock market until further notice is up. I’m by no means a bull, but it’s not what you make at times but what you don’t lose (and bears have been getting killed shorting since 2009) that matters (And being much more aggressively long in gold and silver has been the best choice).

 

U.S. Bonds – While the Fed’s 24/7 printing press may keep interest rates low for now, one of these days the bond vigilantes shall conclude the end game is hyperinflation and bonds shall go into the crapper. U.S. bonds IMHO shall be the worse investment for the next decade (and equities the lesser of two evils).

 

U.S. Dollar – The wimpy bear market rally can’t get much above 80 on the U.S. Dollar Index. While the rabbit didn’t die (U.S. Dollar), it remains in critical condition.

 

Gold and Silver – What can I say (past comments here) that I haven’t said over and over? Where did all those bearish forecasters (and the media that gives them carte-blanch over and over again without questioning their constant wrong forecasts) gone? Back to their little holes and shall return after the next serious correction above $2,000 gold and $50 silver.

 

Oil and Natural Gas – I Like oil and avoid natural gas until further notice.”- Peter Grandich, Grandich Letter

 

GATA Posts:

 

 

Volcker confirms central bank need to suppress gold to stabilize exchange rates at 'critical point'

J.S. Kim: You won't go wrong just buying real metal on the dips

The overnight gold trade that is up 1,700% since 2001

India mum on possible use of gold to pay for Iranian oil

 

The Statistics:

Activity from: 1/25/2012

Gold Warehouse Stocks:

11,493,241

-33,808

Silver Warehouse Stocks:

126,993,566

-388,770

 

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

1259.600

40,497,413

US$69,917m

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

Gold Bullion Securities

115.35

3,708,632

US$6,406m

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

ETFS Physical Gold

126.23

4,058,350

US$7,010m

Australian Stock Exchange (ASX)

Gold Bullion Securities

14.21

472,901

US$787m

Johannesburg Securities Exchange (JSE)

New Gold Debentures

40.98

1,317,593

US$2,174m

Note: Change in Total Tonnes from yesterday’s data: SPDR added 9.069 tonnes.

 

COMEX Gold Trust (IAU) Total Tonnes in Trust: 174.03: No change from yesterday’s data.

 

Silver Trust (SLV) Total Tonnes in Trust: 9,510.70: No change from yesterday’s data.

 

The Miners:

 

Seabridge’s (SA) contribution of $100,000 to the British Columbia Aboriginal Mine Training Association, ITH’s (THM) engineering services for its feasibility study, Gold Resource’s (GORO) dividend, Polyus’ possible merger with Polymetal, Kimber’s (KBX) drill results, Silvercorp’s (SVM) drill results, and Fortuna’s (FSM) production figures and guidance were among big stories in the gold and silver mining industry making headlines today.

 

WINNERS

1.Mines MGMT

MGN +9.00% $2.18

2.Northern Dynasty

NAK +5.13% $7.79

3.Kimber

KBX +5.08% $1.24

 

 

LOSERS

1.Almaden

AAU-3.41% $2.55

2.Claude

CGR-2.08% $1.41

3.US Gold

UXG-2.04% $5.75

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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About Chris Mullen

Chris Mullen has been the Chief Content Manager of GoldSeek.com, SilverSeek.com, UraniumSeek.com, GoldReview.com, CapitalUpdates.com, and Gold-Seeker.com since 2004. Sign up for free email lists from these sites at http://email.goldseek.com/

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