• Gold: 1,484.77 -2.91
  • Silver: 17.48 -0.04
  • Euro: 1.112 -0.001
  • USDX: 97.533 0.205
  • Oil: 54.32 0.68

June 3: Gold and Silver Gain About 2%

Chris Mullen
|
Monday, June 3rd

 

 

Close

Gain/Loss

Gold

$1412.00

+$27.10

Silver

$22.75

+$0.57

XAU

110.23

+2.67%

HUI

281.89

+2.67%

GDM

839.12

+2.74%

JSE Gold

1526.81

-9.91

USD

82.69

-0.57

Euro

130.69

+0.71

Yen

100.52

+0.94

Oil

$93.45

+$1.48

10-Year

2.134%

-0.030

T-Bond

141.46875

+0.40625

Dow

15254.03

+0.92%

Nasdaq

3465.37

+0.27%

S&P

1640.42

+0.59%

 
 

The Metals:

 

Gold climbed to $1401.64 by a little after 4AM EST before it fell back to $1390.83 in the next six hours of trade, but it then climbed to as high as $1416.69 in New York and ended with a gain of 1.96%. Silver surged to as high as $22.952 and ended with a gain of 2.57%.

 

Euro gold climbed to above €1080, platinum gained $42.75 to $1493.75, and copper climbed 6 cents to about $3.33.

 

Gold and silver equities rose over 3% by midday and remained near that level for the rest of the day.

The Economy:

 

Report

For

Reading

Expected

Previous

ISM Index

May

49.0

50.9

50.7

Construction Spending

Apr

0.4%

1.1%

-0.8%

 

Deficit Deal Even Less Likely Yahoo

Factory activity edges up in May but growth sluggish: Markit Reuters

 

Tomorrow at 8:30AM EST brings the Trade Balance for April expected at -$41.0 billion.

 

The Markets:

 

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

 

Oil rose as the U.S. dollar index fell on worse than expected economic data that sent treasuries higher.

 

The Dow, Nasdaq, and S&P traded mixed as disappointing economic data was offset by confidence that the fed will maintain its stimulus program.

 

Among the big names making news in the market today were Toyota, Airbus, Boeing, American Realty, Chrysler, and BofA.

The Commentary:

 

Up, Down; Up, Down; Up, Down... On and on it goes. Today's big market moving data was the ISM manufacturing number. It came in under 50, surprising nearly everyone on the planet. As a matter of fact, the reading at 49, was the lowest since June 2009! That is saying something indeed.

As soon as that number hit the wires, the currency markets erupted in a turmoil. The usual knee-jerk reaction hit Dollar/Yen and up went the "safe haven" Yen (I still have a hard time putting those words together in one phrase for the sheer idiocy of the rationale behind it), up went the Euro and down plunged the US Dollar, falling through a strong support level I might add.

 

Here is the problem - the entire world is long dollars. Take a look at the following Chart of the Commitment of Traders in the Greenback. Notice I am not posting the usual breakdown which is the Disaggregated Report for simplicity's sake. Just look at the specs, both the large ones and the small ones. This is what can happen when that group is all crowded together on one side of a trade and a chart level gets taken out. There is literally no one to take the other side of their buying or selling, in this case selling.

 

What that weak ISM number did was to once again put a temporary halt to the idea that the Fed was going to imminently begin the "tapering" of their bond buying program. That was all gold needed to hear before it reversed its downside reversal on Friday, from its upside reversal on Thursday of last week. In other words, the YO-YO market is acting like a YO-YO with its fortunes tied to both the US Dollar and the QE program. With the Dollar breaking down, gold is breaking up. It really is that simple. Now, if we get one of those strong payrolls numbers again...well, you figure it out.

Gold still needs to clear $1420 to get a larger wave of short covering among that hedge fund category. Ideally that will occur against a backdrop of a push PAST 290 on the HUI, preferably through 301. They are still selling rallies but if the technicals continue to improve on the gold chart, their algorithms are going to start lifting them off of the short side. The bias in the gold chart is still down and will be until gold can push past $1440.

It will be interesting to see how the specs react to GLD this week. I am curious as to whether they are going to start returning to the buy side or will merely use this rally to further jettison their gold holdings. Keep in mind that there are a lot of money managers out there who still want to buy dips in stocks, whether here in the US or in Japan. They are going to raise funds to do so where and when they can so the onus is on the gold bulls to prove that this is more than a rally back to the top of a trading range market.- Dan Norcini, More at http://www.traderdannorcini.blogspot.com/

 

GATA Posts:

 

 

Gold isn't India's problem; the sinking rupee is

Jaco Schipper: Nationalized ABN Amro offers fool's gold

Gaddafi loot traced to South Africa

Murphy's special weekend 'Midas' commentary at LeMetropole Cafe posted in the clear

Gene Arensberg: Gold futures trading data resembles setup for rally

 

The Statistics:

As of close of business: 5//2013

Gold Warehouse Stocks:

00

-

Silver Warehouse Stocks:

00

-

 

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

1013.154

32,573,918

US$45,663m

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

Gold Bullion Securities

138.13

4,441,056

US$6,275m

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

ETFS Physical Gold

152.66

4,908,200

US$8,004m

Australian Stock Exchange (ASX)

Gold Bullion Securities

11.16

358,789

US$507m

Johannesburg Securities Exchange (JSE)

New Gold Debentures

42.45

1,364,715

US$2,214m

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

 

COMEX Gold Trust (IAU) Total Tonnes in Trust: 187.22: No change from yesterday’s data.

Silver Trust (SLV) Total Tonnes in Trust: 9,992.92: No change from yesterday’s data.

 

The Miners:

 

Centerra Gold’s (CG.TO) resumed operations, Freeport’s (FCX) accident probe, Hecla’s (HL) completed acquisition of Aurizon (AZK), Endeavour Silver’s (EXK) re-commissioning, and Exeter’s (XRA) water exploration were among the big stories in the gold and silver mining industry making headlines today.

 

WINNERS

1. Paramount

PZG +12.00% $1.68

2. Fortuna

FSM +10.41% $3.50

3. Midway

MDW +10.19% $1.19

LOSERS

1. Northern Dynasty

NAK -3.44% $2.53

2. Banro

BAA -2.50% $1.17

3. Rio Alto

RIOM -0.68% $2.92

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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© Gold Seeker 2013

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