Gold Seeker Closing Report: Gold and Silver Gain Almost 3% and 4%

The Metals:

Gold climbed $4 to $1670.20 in Asia before it fell back to $1649.05 by about 10AM EST, but it then shot to as high as $1712.92 following the fed’s announcement and ended with a gain of 2.68%.Silver fell over 1% to $31.561 by midmorning in New York, but it then soared to as high as $33.40 after the fed’s announcement and ended with a gain of 3.97%.

Euro gold rose to about €, platinum gained $ to $1578.25, and copper

Gold and silver equities traded slightly lower for much of the morning, but they then climbed steadily higher throughout most of the afternoon and ended with over 6% gains.

The Economy:

Mortgage applications retreated last week: MBA Yahoo

Home Prices Fell 1.8% in November From Prior Year, FHFA Says Businessweek

The fed “said it will likely not raise interest rates until at least late 2014, much later than it had said previously, as it nurses a still-sluggish economic recovery.”

Tomorrow at 8:30AM EST brings Initial Jobless Claims for 1/21 expected at 375,000 and Durable Goods Orders for December expected at 2.0%.Excluding transportation, orders are expected at 0.7%.At 10AM are New Home Sales for December expected at 321,000 and Leading Economic Indicators expected at 0.7%.

The Markets:

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

Oil briefly topped $100 after the fed’s statement sent the U.S. dollar index sharply lower.

Treasuries added to early gains after the fed’s pledge to keep rates low.

The Dow, Nasdaq, and S&P also reversed higher following the fed’s statement.

Among the big names making news in the market today were Apple, United Technologies, Corning, Norwegian Air, ConocoPhillips, Roche and Illumina, and WellPoint.

The Commentary:

“Gold shattered overhead resistance near $1680 and has continued higher as momentum based buying is coming in driving out panicked shorts who were hoping for a halt in the advance to occur as the market encountered bullion bank selling originating at $1680. The FOMC made that a mirage as a zero interest rate environment for the next two years means an environment in which it pays to own gold. The yellow metal pays no interest but at this point, neither do short term Treasuries and those offer no protection from currency induced price increases. Just look at what is occurring across the commodity sector today as hedge funds now push the price of food, energy and metals in a northerly direction. Forget about tame inflation - that just vanished.

The sheer size and scope of this fund buying has driven out everything in front of it except for the strongest of shorts.

Gold has light resistance starting at $1705 or so and extending towards $1720. Pushing through this cap will set it up to make a run at $1750.”- Dan Norcini, More at http://www.traderdannorcini.blogspot.com/

GATA Posts:

Murray Pollitt: Gold is the uninvited guest

The Statistics:

As of close of business: 1/24/2012

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: 174.03: No change from yesterday’s data.

Silver Trust (SLV) Total Tonnes in Trust: 9,510.70: -6.05 change from yesterday’s data.

The Miners:

Allied Nevada’s (ANV) preliminary operating results for 2011 and guidance for 2012, Eurasian’s (EMXX) listing on the NYSE, and McEwen Mining’s (MUX) completed business combination were among the big stories in the gold and silver mining industry making headlines today.

Winners and Losers will return by Friday.

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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