• Gold: 1,487.59 -3.07
  • Silver: 17.52 -0.04
  • Euro: 1.112 -0.005
  • USDX: 97.282 -0.332
  • Oil: 53.66 -0.47

Gold Seeker Closing Report: Gold and Silver Fall With Bonds and Oil

|
March 14, 2012 - 4:23pm

 

 

Close

Gain/Loss

Gold

$1642.80

-$27.70

Silver

$32.16

-$1.03

XAU

177.23

-3.43%

HUI

479.25

-3.86%

GDM

1388.73

-3.74%

JSE Gold

2483.12

-53.74

USD

80.55

+0.33

Euro

130.22

-0.62

Yen

119.42

-1.20

Oil

$105.43

-$1.28

10-Year

2.274%

+0.167

T-Bond

138.0625

-2.625

Dow

13194.10

+0.12%

Nasdaq

3040.73

+0.03%

S&P

1394.28

-0.12%

The Metals:

 

Gold bumped up to $1682.29 in Asia, but it then fell back off for most of the rest of trade and ended near its late session low of $1634.10 with a loss of 1.66%.Silver slipped to as low as $31.625 and ended with a loss of 3.1%.

 

Euro gold fell to about €1261, platinum lost $18.75 to $1665.75, and copper dropped 7 cents to about $3.83.

 

Gold and silver equities fell throughout most of trade and ended with almost 4% losses.

 

The Economy:

 

Report

For

Reading

Expected

Previous

Current Account Balance

Q4

-$124.1B

-$113.8B

-$110.3B

Import Prices

Feb

0.4%

-

0.0%

Import Prices ex-oil

Feb

-0.1%

-

0.1%

Export Prices

Feb

0.4%

-

0.2%

Export Prices ex-ag.

Feb

0.5%

-

0.0%

 

Tomorrow at 8:30AM EST brings Initial Jobless Claims for 3/10 expected at 355,000, Empire Manufacturing for March expected at 15.0, and PPI for February expected at 0.5%.Core PPI is expected at 0.2%.At 9AM are Net Long-Term TIC Flows for January and at 10AM is the Philadelphia Fed for March expected at 12.5.

 

The Markets:

 

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

 

Oil pared early losses after the Energy Information Administration reported that crude inventories rose 1.8 million barrels, gasoline inventories fell 1.4 million barrels, and distillates fell 4.7 million barrels, but it then fell back off again in afternoon trade and ended with an over 1% loss on a stronger dollar.

 

The U.S. dollar index rose along with bond yields in continued reaction to yesterday’s fed statement that lacked any mention of more quantitative easing.Treasuries remained sharply lower after today’s $13 billion 30-year note auction sold at a high yield of 3.383% with a bid to cover of 2.7.The yield on the 10-year note rose to its highest since last October.

 

The Dow, Nasdaq, and S&P waffled near unchanged and ended mixed.

 

Among the big names making news in the market today were Citigroup, BMW, and Goldman Sachs.

 

The Commentary:

 

For the last six months or so, platinum has been trading at a discount to gold. This is a rare occurrence as one can see from a glance at the monthly chart going back to 1990. Only in 1991 did platinum trade at a discount to the price of gold. Late last year and early into this year, an ounce of the white metal was over $200 cheaper than an ounce of gold!

 

This came about due to fears that the global economy would slow down as European sovereign debt woes sent out a type of contagion rippling across the planet. Auto sales especially would be hit and since platinum is heavily used in catalytic converters, ideas spread that demand for the metal would falter.

If you notice however, platinum has been steadily gaining ground against gold as investors began anticipating Central Bank liquidity injections to deal with the pesky debt issues plaguing Europe, not to mention an ultra low interest rate environment which was intended to spur both borrowing and lending and by consequence, growth.

It also did not hurt that a major strike in an important platinum mine popped up cutting off supply from the world market.

This is another one of those combination indicators that can be used to gauge investor sentiment towards the global economy in general. As long as traders feel that there is little to fear as impediments to growth, they will bid this spread higher in favor of platinum.- Dan Norcini, More at http://www.traderdannorcini.blogspot.com/

 

My Dear Friends

 

If you were to talk to the intelligencia of the street you would be treated to the following. I do and I know.

 

1. The US economy is reaching escape velocity.

2. The equity market is now rising on #1 and liquidity is no longer the key ingredient.

3. The fact that gold did not go to $2000 on the Greek default means gold is tired.

4. The dollar is strong on all of the above.

 

The fact is there is not one ounce of truth in the above.

 

1. No account is taken for the savings of $40 billion not spent on utilities on the East coast for the winter that was not. Seasonality will soon factor into statistics, bringing them more toward a mean.

2. Without liquidity as a primary factor, the general equities market will go into severe reaction also due to weak internals that only stimulation can overcome.

3. The figures concerning the Greek debt and CDS activation are total fabrications invited by US management due to an election year tolerance for whatever might help.

4. The dollar this year will cave for reasons few understand. That is sundering of its use as an international settlement mechanism on a weekly basis.

 

Look for the long term cash buyers of gold to defeat the lower estimates of price that you will hear blasting out of the top callers, bears and seekers of your subscription money.

 

Pull the rock over your hole or go for a long walk. As always avoid margin like a disease.

 

Regards,”- Jim Sinclair, JSMineset.com

 

“While we seem to lose the occasional short-term battle, the war has been won only the perma-bears don’t know it yet. Still, it’s quite disturbing to the “good guys’ when it feels like you’re getting beaten up like it has since the “flash-crash” in gold several days ago. This morning’s drop to key support makes me feel like Paul Newman and wanting to call in the Hanson boys to turn things around.

 

Since 2004, the gold market has witnessed occasional sharp sell-offs but all of them held the long-term uptrend line. Currently, it’s just above $1,600. Like before, it shall take days or even weeks before the uptrend resumes but it shall or my name is not Reggie Dunlop.

 

Chart courtesy of www.the-privateer.com”- Peter Grandich, Grandich Letter

 

GATA Posts:

 

Greg Smith: Why I am leaving Goldman Sachs

MineWeb notes concerns about gold reserves held outside owning countries

 

The Statistics:

Activity from: 3/13/2012

Gold Warehouse Stocks:

11,408,451

+10,208

Silver Warehouse Stocks:

130,780,496

-132,054

 

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

1293.268

41,579,863

US$68,352m

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$6,312m

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

472,644

US$751m

Johannesburg Securities Exchange (JSE)

New Gold Debentures

39.75

1,278,132

US$2,160m

Note: Change in Total Tonnes from yesterday’s data: SPDR subtracted 0.408 tonnes.

 

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: No change from yesterday’s data.

 

The Miners:

 

Timberline’s (TLR) exercised option to purchase 19 patented claims, Claude’s (CGR) updated National Instrument 43-101 gold reserve and resource, SEMAFO’s (SMF.TO) 2011 results, Seabridge’s (SA) exploration program, Centerra Gold’s (CG.TO) board and management changes, Timmins Gold’s (TGD) updated resource estimate, Golden Minerals’ (AUMN) appointment of Jan Dahlgren as Construction Manager, Silvermex’s (SLX.TO) drill results, and Pan American’s (PAAS) recommendation that shareholders vote FOR the Plan of Arrangement with Minefinders (MFN) were among big stories in the gold and silver mining industry making headlines today.

 

WINNER

1.Loncor

LON+3.47% $1.49

 

LOSERS

1.Vista Gold

VGZ -8.26% $3.11

2.Golden Star

GSS -7.43% $1.62

3.First Majestic

AG -7.18% $17.07

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 2012

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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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