July 5: Gold and Silver Fall Almost 1% and 4% on the Week

The Metals:

Gold fell to as low as $1208.10 in the aftermath of this morning’s jobs data before it rallied back higher in the last hour of trade, but it still ended with a loss of 2.49%. Silver slumped to as low as $18.69 and ended with a loss of 4.75%.

Euro gold fell to about €952, platinum lost $13.70 to $1327.50, and copper dropped 10 cents to about $3.07.

Gold and silver equities fell over 5% in the first half hour of trade and remained near that level for most of the day, but they then edged back higher in the last hour of trade and ended with less than 4% losses.

The Economy:

The BLS net birth/death adjustment added 132,000 payrolls to June’s data. Private Payrolls rose 202,000.

All of this week’s other economic reports:

Next week’s economic highlights include Consumer Credit on Monday, Wholesale Inventories and FOMC Minutes on Wednesday, Initial Jobless Claims, Import and Export Prices, and the Treasury Budget on Thursday, and PPI and Michigan Sentiment on Friday.

The Markets:

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

Oil rose along with the U.S. dollar index on better than expected jobs data that sent treasuries lower.

The Dow, Nasdaq, and S&P traded mostly higher as optimism about jobs data was offset at times by worries about fed tapering.

Among the big names making news in the market Friday were BlackBerry, Dana, Samsung, and Dell.

The Commentary:

“Never mind the growing number of part time jobs, nor the rise in the unemployment rate, all the market looked at was the headline number of 195,000 jobs created compared to expectations of 165,000 and it was pretty much baked-into-the-cake that the tapering was going to begin in September of this year.

That pulled the rug out from under both gold and the bond market as those markets plunged. Rising interest rates in what most investors believe is a NON-INFLATIONARY environment is serving to lure short sellers into gold and forcing an exodus among recent bottom pickers and even some long-time bulls.

As stated many times recently, gold is in an intermediate term bear market and as such, rallies are going to be sold by speculative forces until such time as the technical chart pattern changes.

I wish to remind readers of this site not to be sucked into taking aggressive long positions in anything gold right now unless you have deep pockets and can absorb further losses while you wait for the deflation/inflation psychology to shift. Trying to buy into a market like this right now is attempting to catch a falling knife - you are going to end up getting hurt.

One of the most important things to learn if you are trading futures is that LEVERAGE can destroy you. Far too many of these self-appointed experts in gold, whether they be "analysts" recommending long positions based on their improper reading of that Commitment of Traders reports, or those who have gold to sell, simply do not recognize that the chart pattern in gold has shifted on an intermediate and shorter term time basis. When they glibly recommend long positions in gold, they are setting you up to get hurt badly when the trend reasserts itself as it is currently doing today.

If you are trading on the shortest of time frames (day trading) that is one thing as there will always be short term tradable bottoms as well as tops. However, to take a position in the gold futures market without a technical chart confirmation that the trend is changed is the same as having a financial death wish. Remember that....

Currently gold is holding above psychological chart support at the $1200 level which is near the cost of production. That level needs to hold or it will revisit the recent low near $1180. I have noted the extremely high volume day with ellipses. That area should attract buying if the bottom is actually in. We will see what happens.

The mining shares are also falling lower today which is serving to bring additional sellers into the Comex. Throw in the fact that the US Dollar is absolutely SOARING and proving to be the King of the Hill among currencies, gold has its work cut out for it if it is going to start any sort of SUSTAINABLE rally to the upside. For right now, gold will have to clear and STAY ABOVE $1250 - $1260, preferably on a weekly chart, to denote a more lasting bottom.”- Dan Norcini, More at http://www.traderdannorcini.blogspot.com/

GATA Posts:

Toronto reviews bid to become yuan currency trading hub

Ted Butler: The new law of supply and demand

QEternity for Europe and UK

Gold sales tumble at Perth Mint after rout deters buyers

Huge premium on gold in India as government tries to destroy the industry

Jan Skoyles: London gold market is too secret to judge its reliability

Stoeferle stresses that gold production has little effect on price

The Statistics:

Activity from: 7/03/2013

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: 181.11: No change from yesterday’s data.

Silver Trust (SLV) Total Tonnes in Trust: 9,961.42: No change from yesterday’s data.

The Miners:

Avino’s (ASM) AGM results and Lake Shore’s (LSG) second quarter operating results were among the big stories in the gold and silver mining industry making headlines Friday.

WINNERS

LOSERS

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

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