Gold Seeker Closing Report: Gold and Silver Fall Slightly

The Metals:

Gold climbed up to $1751.63 in Asia, but it then fell back off for most of trade in New York and ended near its early afternoon low of $1725.00 with a loss of 0.68%.Silver rose to $34.51 in Asia, but it then fell to as low as $33.647 in New York and ended with a loss of 0.64%.

Euro gold fell to about €1307, platinum gained $17.50 to $1663, and copper rose a few cents to about $3.90.

Gold and silver equities waffled near unchanged and ended slightly lower.

The Economy:

Mortgage applications jump on refi demand: MBA Reuters

Tomorrow at 8:30AM EST brings Initial Jobless Claims for 2/04 expected at 370,000 and at 10AM is the Wholesale Inventories report for December expected at 0.4%.

The Markets:

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

Oil traded mostly slightly higher after the Energy Information Administration reported that crude inventories rose 300,000 barrels, gasoline inventories rose 1.6 million barrels, and distillates rose 1.2 million barrels.

The U.S. dollar index, treasuries, and the Dow, Nasdaq, and S&P all waffled near unchanged in quiet trade on uncertainty about the progress of Greece’s debt deal.

Among the big names making news in the market today were Time Warner, Nokia, Nissan, Sprint, Caesars, McDonald’s, BofA, Wells Fargo, and Rambus.

The Commentary:

“Gold currently seems unable to better the level near $1750 which is proving to be rather stubborn. There appears to be a bit of a headwind arising from lingering fears about Greece and a potential slowdown impact on the global economy as debt issues remain in the back of traders' minds. That was trumped the other day by Chairman Bernanke's promise of another 18 months or more of free money but in today's session, apparently the effect has been somewhat muted. I am noticing that equities are lower today and the Dollar has managed a bit of a bounce with bonds moving up slightly off of their worst levels of the session and are now unchanged. One can spot the "risk aversion" trades in the session.

Trying to get a decent read on many of these markets is very challenging in this environment because there is an enormous tug of war from both the forces of deflation and the forces of liquidity. That has many traders sitting with their finger on the keyboard ready to run in either direction very quickly as what remains of conviction is generally easily swayed based on the latest headline or data release. The end result is that day traders are more at home rather than trend following systems which can easily be whipsawed and caught flatfooted.

On days like this I actually feel a bit sorry for the many newsletter writers who have to come up with some sort of baloney to explain price action in order to justify their subscription fees. Truth be told, sometimes there are just "a lot of fuss about nothing" days in the market when neither side (bulls or bears) really seems to have a clear edge and the markets end up marking time. This is the sort of environment which produces choppy trading patterns where floor locals make the majority of their income scalping or otherwise generally separating novice traders from their wealth.

Maybe we will get something going later in the session. For now, the bulls are getting frustrated over their inability to beat back the selling at $1750. Support remains the same general region down near $1725 - $1720 where valued-based buying has been seen.”- Dan Norcini, More at http://www.traderdannorcini.blogspot.com/

GATA Posts:

Goldcorp, gold council chairman Telfer implicated in insider scheme; he denies it

A tribute to Murray Pollitt, 1941-2012

The Statistics:

Activity from: 2/07/2012

Global Gold ETF Holdings

[WGC Sponsored ETF’s]

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

COMEX Gold Trust (IAU) Total Tonnes in Trust: 177.68: No change from yesterday’s data.

Silver Trust (SLV) Total Tonnes in Trust: 9,664.26: No change from yesterday’s data.

The Miners:

A free, new stock report on Tahoe Resources Inc., Centerra Gold’s (CG.TO) strike, Freeport’s (FCX) senior notes offering, Seabridge’s (SA) increased estimated measured and indicated gold resources, and Huldra Silver’s (HDA.V) bulk sample update were among big stories in the gold and silver mining industry making headlines today.

WINNERS

1.Entre Gold EGI +3.76% $1.38

2.Loncor LON +2.86% $1.44

3.Gold Reserve GRZ +1.77% $2.88

LOSERS

1. Avino ASM -4.84% $1.77
2. NovaGold NG -4.62% $8.46
3. Nevsun NSU-4.09% $4.22

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:

• http://www.capitalupdates.com
• http://www.goldseek.com
• http://www.silverseek.com
• http://www.goldreview.com

©Gold Seeker 2012

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