• Gold: 1,489.70 4.11
  • Silver: 17.60 0.08
  • Euro: 1.103 -0.001
  • USDX: 98.515 0.214
  • Oil: 54.07 -0.78

Gold Seeker Closing Report: Gold and Silver Fall Over 1%

|
March 13, 2012 - 4:17pm

 

 

Close

Gain/Loss

Gold

$1670.50

-$28.90

Silver

$33.19

-$0.38

XAU

183.53

-0.37%

HUI

498.47

-0.52%

GDM

1442.66

-0.67%

JSE Gold

2536.86

-7.53

USD

80.22

+0.37

Euro

130.65

-0.89

Yen

120.46

-1.08

Oil

$106.71

+$0.37

10-Year

2.107%

+0.076

T-Bond

140.6875

-1.28125

Dow

13177.68

+1.68%

Nasdaq

3039.88

+1.88%

S&P

1395.96

+1.81%

The Metals:

 

Gold fell $15.88 to $1683.52 by a little after 9AM EST before it rebounded to $1701.28 by midday, but it then fell to a new session low of $1662.70 after the fed’s statement and ended with a loss of 1.7%.Silver slipped to as low as $33.011 and ended with a loss of 1.13%.

 

Euro gold fell to about €1278, platinum lost $6 to $1684.50, and copper gained 7 cents to about $3.90.

 

Gold and silver equities saw slight gains for most of the morning, but they then fell back off in afternoon trade and ended with modest losses.

 

The Economy:

 

Report

For

Reading

Expected

Previous

Retail Sales

Feb

1.1%

1.0%

0.6%

Retail Sales ex-auto

Feb

0.9%

0.6%

1.1%

Business Inventories

Feb

0.7%

0.6%

0.6%

 

The fed kept rates unchanged as expected.

 

“The central bank described the economy as "expanding moderately," unchanged from its January statement, and said growth still faced significant downside risks.

 

Policymakers said the job market had improved but unemployment remains high, reiterating its expectation that rates would remain near zero until at least late 2014.

 

A quickening in the pace of jobs growth and a sharp drop in the unemployment rate to 8.3 percent from 9.1 percent in August has led some economists to rein in their expectations for a further easing of monetary policy.

 

The Fed said a recent spike in energy costs would likely push up inflation but only in the short run. Richmond Fed President Jeffrey Lacker again dissented against the decision, since he did not expect economic conditions to warrant ultra-low rates until late 2014.”

 

Federal Open Market Committee March 13 Statement: Full Text Bloomberg

U.S. Job Openings Were Little Changed From Highest Since 2008 Bloomberg

 

Tomorrow at 8:30AM EST brings Export and Import Prices for February and the fourth quarter Current Account Balance expected at -$113.8 billion.

 

The Markets:

 

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

 

Oil remained modestly higher after the fed’s statement sent the U.S. dollar index back near its earlier session highs.

 

Treasuries remained lower after today’s $21 billion 10-year note auction sold at a high yield of 2.076% with a bid to cover of 3.24.

 

The Dow, Nasdaq, and S&P rose on better than expected economic data and late session reports that major financial companies are passing the fed’s stress tests.

 

Among the big names making news in the market today were Dell, Merrill Lynch, Yahoo and Facebook, and JPMorgan.

 

The Commentary:

 

Last week I posted a chart of the S&P 500 wondering if a top was in this market. Apparently not, said the bulls, who have proceeded to take this market higher for the last 5 days in a row. Today they took the price to a new 52 week high. Isn't it amazing what a "bit" of Central Bank supplied liquidity can get ya?

Unfortunately for the Fed, bond traders are not being particularly cooperative today as they are slamming the long bond lower, particularly as they digest the day's FOMC statement which repeated, once again, the committee's intent on keeping short term rates extremely low until late in 2014!

Money is thus fleeing out of the longer term Treasury market and plowing into stocks as investors are all gleefully leaping onto the equity bull train before it leaves the station without them. With extremely low yields as far as the eye can see and the Central Banks papering over all that ails the global economy, traders are being herded into stocks, which is exactly where the monetary authorities want them to be!

Money has also been flowing out of the gold market today as safe haven trades involving gold are being taken off as well. Apparently the theme today is "GO FOR THE GROWTH". Copper is certainly acting as if traders are convinced the global economy is back on its feet and blue skies lie ahead.

I should note that the Dollar is moving higher today not based on the risk aversion trades (the Japanese Yen is getting blasted lower which would not be the case if the risk aversion trades were back on) but rather on the idea that the US economy is going to be stronger than Euroland or Japan.

The bond breakdown is extremely significant in my opinion. A while ago I posted a MONTHLY CHART of the LONG BOND detailing some technical action. I am reposting that same chart with the current action now charted. Whether the monetary authorities like it or not, long term interest rates have begun rising. If they close the week out below the technical support levels noted, momentum players will begin taking on short positions in an attempt to drive the bonds even lower. There are an awful lot of players on the LONG SIDE of the bond market who have been counting on the Fed to put a floor in this market. It is going to be one nifty trick for the monetary masters to keep the equities soaring higher and preventing the bonds from falling apart.

 

One last chart - yes, you did just dream that the US underwent a credit crisis - relax - everything that led to that has been fixed!- Dan Norcini, More at http://www.traderdannorcini.blogspot.com/

 

GATA Posts:

 

Carmen Reinhart: Financial repression has come back to stay

More praise for Rickards book; and Calandra appeals for Cambodia

Hathaway lists 9 key points for gold and silver markets

Japan starts buying Chinese debt to diversify away from dollar

Is the Banque de France eager to show it still has its gold?

New York Sun: Obama in your tank

Ira Stoll: Bernanke's big hidden tax on savers

13 years after leaving Treasury, Rubin says he has too many dollars

Gold Resource Corp. to offer dividends in gold and silver coins

 

The Statistics:

Activity from: 3/12/2012

Gold Warehouse Stocks:

11,398,244

-6,921

Silver Warehouse Stocks:

130,912,550

+594,086

 

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

1293.676

41,592,971

US$70,255m

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

Gold Bullion Securities

119.15

3,830,754

US$6,498m

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$6,985m

Australian Stock Exchange (ASX)

Gold Bullion Securities

14.21

472,650

US$774m

Johannesburg Securities Exchange (JSE)

New Gold Debentures

39.75

1,278,132

US$2,160m

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

 

COMEX Gold Trust (IAU) Total Tonnes in Trust: 182.36: No change from yesterday’s data.

 

Silver Trust (SLV) Total Tonnes in Trust: 9,752.67: -10.58 change from yesterday’s data.

 

The Miners:

 

Comstock’s (LODE) hires, Paramount’s (PZG) assay results, Kirkland’s (KGI.TO) third quarter results, and McEwen’s (MUX) new silver discovery were among big stories in the gold and silver mining industry making headlines today.

 

WINNERS

1.Avino

ASM +4.13% $2.26

2.Coeur

CDE+3.22% $26.31

3.Comstock

LODE +3.09% $2.00

 

LOSERS

1.Almaden

AAU -4.12% $2.79

2.Lake Shore

LSG -3.62% $1.33

3.Kinross

KGC-3.39% $10.54

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

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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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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