• Gold: 1,221.22 -1.07
  • Silver: 14.31 -0.01
  • Euro: 1.137 0.000
  • USDX: 96.836 0.643
  • Oil: 54.21 0.84

Gold Seeker Closing Report: Gold and Silver End Modestly Lower

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January 24, 2012 - 4:22pm
 

Close

Gain/Loss

Gold

$1666.20

-$11.90

Silver

$31.99

-$0.30

XAU

186.34

-1.92%

HUI

497.86

-2.17%

GDM

1438.99

-2.23%

JSE Gold

2877.51

+11.86

USD

79.85

+0.15

Euro

130.22

-0.02

Yen

128.69

-1.17

Oil

$98.95

-$0.63

10-Year

2.064%

-0.003

T-Bond

141.15625

UNCH

Dow

12675.75

-0.26%

Nasdaq

2786.64

+0.09%

S&P

1314.63

-0.10%

 
 

 

The Metals:

 

Gold fell to as low as $1661.40 by about 9AM EST before it bounced back higher midday, but it still ended with a loss of 0.71%.Silver slipped to $31.874 before it also rebounded, but it still ended with a loss of 0.93%.

 

Euro gold fell to about €1279, platinum lost $16.40 to $1542.60, and copper rose slightly to about $3.80/

 

Gold and silver equities fell about 2% at the open and remained near that level for the rest of the day.

 

The Economy:

 

Fed seen indicating no rate hikes until 2014 Reuters

Pariahs No More, U.S. Bankers Ascend at Davos Bloomberg

IMF Cuts Global Growth Forecast; Sees Recession Bloomberg

Obama to make pitch for second term in State of the Union Reuters

 

There were no major economic reports today.Tonight at 9PM EST is the State of the Union speech.Tomorrow at 10AM EST brings Pending Home Sales for December expected at -3.0% and at 12:30 is a FOMC Rate Decision.

 

The Markets:

 

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

 

Oil fell as the U.S. dollar index rose on renewed worries about the ability to come up with a debt deal for Greece.

 

The Dow, Nasdaq, and S&P traded mostly slightly lower on worries about Europe and tomorrow’s fed meeting.

 

Debt prices fall in push for auction concessions Reuters

 

Among the big names making news in the market today were Verizon, Morgan Stanley, J&J, McDonald’s, and DuPont.

 

The Commentary:

 

Barrick Gold was downgraded this morning to sector perform by some of the "analysts" citing concerns over delays and cost escalations at new mines under construction. Tie that in with weakness in both gold and silver, which ran into long liquidation and some fresh selling after failing to better the chart resistance levels noted yesterday, and that has resulted in the HUI sinking down to the bottom of a critical support level on the price chart once again.

The gold shares in general are becoming dogs that cannot hunt or in the case of some, not even bark.

The same hedge funds that have been buying them down at this level late last year and early this year had better not have a change of heart. Still, it is only Tuesday so they do have time to recover before the end of the week. They will certainly need to or we are going to see a technical chart breakdown.

Pressure in gold and silver today is coming from a slightly stronger Dollar and some increased chatter over Greece and woes associated with that running sore. Traders are a bit hesitant to get too aggressive on the risk trades as a result and are exercising a bit of caution. That is allowing for some long liquidation and fresh short sellers from top pickers.

Silver stills need to get a solid close ABOVE $32.50 to avoid sagging here while gold needs to close over $1680 to avoid a setback towards $1650.

Bonds, a good measurement of the willingness of traders to take on risk, are basically flat today reflecting the lack of conviction either way for today's session. We'll see what we get in tomorrow's session which should be more telling as to where we might head next.

Note on the following HUI chart that all of the major moving averages are trending lower. We need the shorter term ones to at least stop heading lower and flatten out if the HUI is going to attract any sort of momentum based chart buying in the gold sector.- Dan Norcini, More at http://www.traderdannorcini.blogspot.com/

 

GATA Posts:

 

 

Warsh speech on 'financial repression' to be broadcast at Stanford's Internet site

Resource Clips interview with GATA: No more tinfoil hats

 

The Statistics:

Activity from: 1//2012

Gold Warehouse Stocks:

11,469,407

+60,201

Silver Warehouse Stocks:

126,218,044

-530,767

 

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

1250.531

40,205,808

US$66,942m

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$6,174m

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$6,756m

Australian Stock Exchange (ASX)

Gold Bullion Securities

14.21

472,912

US$761m

Johannesburg Securities Exchange (JSE)

New Gold Debentures

40.98

1,317,680

US$2,181m

Note: Change in Total Tonnes from yesterday’s data: SPDR subtracted 5.139 tonnes.

 

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

 

Silver Trust (SLV) Total Tonnes in Trust: 9,516.75: No change from yesterday’s data.

 

The Miners:

 

Banro’s (BAA) Updated Economic Assessment, Randgold’s (GOLD) gold production, Gold Fields’ (GFI) possible JV, Endeavour Silver’s (EXK) review of the Company's exploration results in 2011 and its exploration plans for 2012, and First Majestic’s (AG) mill expansion and construction update were among big stories in the gold and silver mining industry making headlines today.

 

WINNERS

1.Solitario

XPL +3.45% $1.80

2.Banro

BAA +2.48% $4.55

3.Gold Reserve

GRZ +2.43% $2.95

 

 

LOSERS

1.Entree

EGI -8.40% $1.20

2.Kimber

KBX -7.44% $1.12

3.Tanzanian Royalty

TRX -5.26% $2.88

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 2012

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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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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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