• Gold: 1,658.62 -6.54
  • Silver: 15.18 0.18
  • Euro: 1.081 0.002
  • USDX: 100.563 -0.119
  • Oil: 26.83 0.43

Gold Seeker Closing Report: Gold and Silver Gain Almost 1%

|
March 15, 2012 - 4:17pm

 

 

Close

Gain/Loss

Gold

$1658.00

+$15.20

Silver

$32.46

+$0.30

XAU

177.68

+0.25%

HUI

479.03

-0.04%

GDM

1388.71

+0.00%

JSE Gold

2476.14

-6.98

USD

80.20

-0.35

Euro

130.88

+0.59

Yen

119.83

+0.32

Oil

$105.11

-$0.32

10-Year

2.281%

+0.007

T-Bond

137.96875

-0.09375

Dow

13252.76

+0.44%

Nasdaq

3056.37

+0.51%

S&P

1402.60

+0.60%

The Metals:

 

Gold dipped a few dollars to $1639.51 by a little after 8:30AM EST, but it then rallied back higher for most of the rest of trade in New York and ended near its late session high of $1666.40 with a gain of 0.93%.Silver surged to as high as $32.86 and ended with a gain of 0.93%.

 

Euro gold rose to about €1268, platinum gained $11.25 to $1677, and copper gained 6 cents to about $3.89.

 

Gold and silver equities waffled near unchanged and ended mixed.

 

The Economy:

 

Report

For

Reading

Expected

Previous

Empire Manufacturing

Mar

20.2

15.0

19.5

Initial Claims

3/10

351K

355K

365K

PPI

Feb

0.4%

0.5%

0.1%

Core PPI

Feb

0.2%

0.2%

0.4%

Philadelphia Fed

Mar

12.5

12.5

10.2

Net Long-Term TIC Flows

Jan

$101.0B

-

$19.1B

 

Average rate on 30-year mortgage up to 3.92 pct. Yahoo

 

Tomorrow at 8:30AM EST brings CPI for February expected at 0.4%.Core CPI is expected at 0.2%.At 9:15 is Industrial Production for February expected at 0.5% and Capacity Utilization expected at 78.8%, and at 9:55 is Michigan Sentiment for March expected at 75.8.

 

The Markets:

 

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

 

Oil fell after Reuters reported that “Britain has decided to cooperate with the United States in a bilateral agreement to release strategic oil stocks.”

 

The U.S. dollar index fell as traders took profits from this week’s earlier gains.

 

Treasuries fell as the Dow, Nasdaq, and S&P rose on decent economic news.

 

Among the big names making news in the market today were Apple, Las Vegas Sands, Yahoo, and Cisco.

 

The Commentary:

 

Much to the chagrin of the Federal Reserve, bond traders are taking that FOMC statement from yesterday and taking no prisoners as they literally hammer the long bond into submission. I find it a bit ironic (to be honest I am gleeful about it) that the Fed, which continues its attempts to manipulate hedge fund behavior by herding them into the equity markets, has opened an enormous can of worms and awakened the heretofore comatose bond vigilantes as an undesirable chain reaction to their "peachy" statement about the state of the US economy.

Bond traders are already moving the Fed Funds Futures to indicate interest rate hikes in early 2014, and not the latter part of 2014 as those minutes revealed yesterday. Worse, the yield on the Ten Year has spiked. It started off the week at 2.04% and ended today at 2.27%. As for the long bond, forgettaboutit; it was absolutely pummeled today now having dropped over 3 1/2 points the last two days.

 

What has happened is very simple - the happy talk about the US economy coming out of the FOMC minutes has traders jettisoning safe haven trades and even short term Treasuries in favor of the bull train leaving the station in the US equity markets. The problem? The last thing that the Fed and the US government needs or wants is a rising interest rate environment.

Oh sure, they can stand a bit of a move higher, but if any of this begins filtering into the mortgage market and the cost of home mortgages, autos, etc. begins moving higher, it will nip whatever nascent recovery there might be in the bud. And don't forget - there is that pesky "LITTLE" issue of the US national debt which will cost more federal tax revenue to service in a rising interest rate environment. Remember, even with its more upbeat assessment of the US economy yesterday, the FOMC certainly did not suggest that the recovery was robust or was it healthy. What they basically said, if I might paraphrase, was that it was showing modest improvement but was not out of the woods.

Doesn't matter - the bond market is focused on the "modest improvement" part and is interpreting that, either rightly or wrongly, that the Fed is not going to be doing any QE in the immediate future. After all, if things are supposedly so firmly on the right track, why the heck does anyone want to be in a "SAFE HAVEN" Treasury when everything is peachy keen, particularly if those paper IOU's are paying out squat.

The Fed has basically undercut it own low interest rate policy by giving investors the greenlight to sell bonds in order to deploy those funds into the equity markets. See what happens when you engineer a stock market rally?

 

I suspect that the Fed is going to be getting increasingly nervous if this sell off in the bonds, particularly the long end, continues unabated. Let's see how far the bond bears will push them.- Dan Norcini, More at http://www.traderdannorcini.blogspot.com/

 

The Statistics:

Activity from: 3/14/2012

Gold Warehouse Stocks:

11,401,117

-7,334

Silver Warehouse Stocks:

132,213,653

+1,433,157

 

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$68,507m

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$6,346m

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

472,639

US$757m

Johannesburg Securities Exchange (JSE)

New Gold Debentures

39.75

1,278,062

US$2,160m

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

 

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:

 

Nevsun’s (NSU) new director, Great Basin’s (GBG) new bought deal, Seabridge’s (SA) optioned project, Vista Gold’s (VGZ) operating highlights, Freeport’s (FCX) update on Grasberg operations, Richmont’s (RIC) drill results, Aurizon’s (AZK) 2011 results, McEwen Mining’s (MUX) production and development update, and AngloGold’s (AU) upgraded credit rating were among big stories in the gold and silver mining industry making headlines today.

 

WINNERS

1.Golden Star

GSS +5.56% $1.71

2.Golden Minerals

AUMN +4.97% $6.97

3.Timmins

TGD +4.47% $2.57

 

LOSERS

1.Solitario

XPL-6.90% $1.35

2.Nevsun

NSU-6.57% $3.27

3.Loncor

LON-4.70% $1.42

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

- Would you like to receive the Free Daily Gold Seeker Report in your e-mail? Click here

Additional Resources for today’s Gold Seeker Report can be found:

©Gold Seeker 2012

Note: This article may be reproduced provided the article, in full, is used and mention to Gold-Seeker.com is given.

 

 

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.

 

Your rating: None Average: 3.5 (4 votes)

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/

Article Comments

Sponsored Links

Join the Free Weekly Silver Review!
SilverSeek.com week in review delivered direct to your inbox!

Live SilverSeek Map