• Gold: 1,658.68 -6.48
  • Silver: 15.15 0.15
  • Euro: 1.081 0.001
  • USDX: 100.622 -0.06
  • Oil: 27.04 0.64

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

|
January 25, 2012 - 5:34pm
 

Close

Gain/Loss

Gold

$1710.80

+$44.60

Silver

$33.26

+$1.27

XAU

197.70

+6.10%

HUI

530.58

+6.57%

GDM

1531.36

+6.42%

JSE Gold

2810.65

-66.86

USD

79.42

-0.43

Euro

131.09

+0.74

Yen

128.64

-0.09

Oil

$99.40

+$0.45

10-Year

2.007%

-0.057

T-Bond

141.78125

+0.625

Dow

12758.85

+0.66%

Nasdaq

2818.31

+1.14%

S&P

1326.06

+0.87%

 

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:

 

Report

For

Reading

Expected

Previous

Pending Home Sales

Dec

-3.5%

-3.0%

7.3%

 

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

 

Gold Warehouse Stocks:

11,527,049

+57,642

Silver Warehouse Stocks:

126,604,796

+386,753

 

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

1250.531

40,205,808

US$66,318m

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

Gold Bullion Securities

115.35

3,708,632

US$6,306m

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$6,901m

Australian Stock Exchange (ASX)

Gold Bullion Securities

14.21

472,906

US$775m

Johannesburg Securities Exchange (JSE)

New Gold Debentures

40.98

1,317,680

US$2,181m

 

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:

©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.

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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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