• Gold: 1,275.54 0.00
  • Silver: 14.99 0.00
  • Euro: 1.124 -0.000
  • USDX: 97.474 0.07
  • Oil: 64.06 0.19

Gold Seeker Closing Report: Gold and Silver Erase Overnight Losses and End Near Unchanged

|
February 16, 2012 - 5:19pm

 

 

Close

Gain/Loss

Gold

$1728.40

-$0.90

Silver

$33.48

+$0.08

XAU

195.73

+2.83%

HUI

527.28

+2.68%

GDM

1524.37

+2.46%

JSE Gold

2803.63

-66.23

USD

79.34

-0.28

Euro

131.37

+0.73

Yen

126.78

-0.80

Oil

$102.31

+$0.51

10-Year

1.993%

+0.062

T-Bond

142.28125

-1.03125

Dow

12904.08

+0.96%

Nasdaq

2959.85

+1.51%

S&P

1358.04

+1.10%

 

The Metals:

 

Gold fell $23.50 to as low as $1705.80 by about 9AM EST, but it then rallied back higher for most of the rest of trade and ended near its late session high of $1729.91 with a loss of just 0.05%. Silver slipped over 2% to as low as $32.643 before it also stormed back higher in New York and ended near its late session high of $33.548 with a gain of 0.24%.

 

Euro gold fell to about €1314, platinum lost $13.70 to $1619.30, and copper rose slightly to about $3.81.

 

Gold and silver equities fell over 1% at the open, but they then rallied back higher for most of the rest of trade and ended with about 2.5% gains.

 

The Economy:

 

Report

For

Reading

Expected

Previous

Initial Claims

2/11

348K

365K

361K

Housing Starts

Jan

699K

671K

389K

Building Permits

Jan

676K

675K

671K

PPI

Jan

0.1%

0.3%

-0.1%

Core PPI

Jan

0.4%

0.2%

0.3%

Philadelphia Fed

Feb

10.2

10.0

7.3

 

Number of foreclosed homes climbed in January Yahoo

Jobs, factory data strengthen growth outlook Reuters

Bernanke says recovery slow but small banks climbing back Reuters

Mortgage Rates for 30-Year U.S. Fixed Loans Unchanged at Record-Low 3.87% Bloomberg

 

Tomorrow at 8:30AM EST brings CPI for January expected at 0.3% and Core CPI expected at 0.1%. At 10AM is the Leading Economic Indicators report for January expected at 0.5%.

 

The Markets:

 

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

 

Oil rose on worries about declining output from Iran and the North Sea.

 

The U.S. dollar index and treasuries fell on better than expected economic data that sent the Dow, Nasdaq, and S&P about 1% higher.

 

Among the big names making news in the market today were Amazon, UBS, Morgan Stanley, Citigroup, Facebook, and GM.

 

The Commentary:

 

The 1350 level in the S&P 500 is becoming a rather significant resistance level on the technical price chart as the market has rallied to this point several times over the last two weeks and stalled out. Bulls are counting on further liquidity blasts from the Central Banks to provide them with enough ammunition to dislodge the selling originating at this zone.

 

I find it rather odd to see how the broader market is apparently ignoring the surge in gasoline prices as if soaring energy costs are not going to have the least impact on consumer spending in terms of disposable income or transportation costs across the entire economy.

Central Banks are attempting to ward off deflationary pressures from issues arising from massive amounts of debt in the system so what we have here is a battle between the forces of liquidity and those of debt. From what I can see of the price chart, the liquidity forces are apparently able to trump everything. It also goes to show you how utterly disconnected the stock market is from the reality of most citizens.

 

This rally in the equities is what is pulling silver and gold off of their lows in today's session. It is also pulling copper off its worst levels as well. If the Fed wants inflation, they are going to get it. A strong upside performance in the S&P will guarantee that the metals all begin moving higher, whether or not any fundamentals justify the move or not as hedge funds will bid up everything tangible and send those prices soaring.

 

The Fed had better be careful however that their gambit does not allow the long bond to drop below the bottom of its nearly 4 month old trading range. That would be a No-No for Uncle Sam for if long term borrowing costs were to begin rising, the cost of servicing this idiotic mountain of debt that has been heaped upon our nation will becoming unbearable. No doubt orders will go out to Goldman and Morgan to buy bonds if it looks like the bond technical price chart might be breaking down.- Dan Norcini, More at http://www.traderdannorcini.blogspot.com/

 

GATA Posts:

 

Ted Butler: Short position in SLV has fallen substantially

 

The Statistics:

Activity from: 2/15/2012

Gold Warehouse Stocks:

11,431,527

-3,020

Silver Warehouse Stocks:

129,131,136

-193,754

 

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

1278.262

41,097,403

US$70,383m

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

Gold Bullion Securities

118.63

3,813,918

US$6,561m

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

472,789

US$787m

Johannesburg Securities Exchange (JSE)

New Gold Debentures

40.37

1,297,879

US$2,235m

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

 

COMEX Gold Trust (IAU) Total Tonnes in Trust: 179.27: No change from yesterday’s data.

 

Silver Trust (SLV) Total Tonnes in Trust: 9,591.72: -33.25 change from yesterday’s data.

 

The Miners:

 

Centerra Gold’s (CG.TO) work resumption, Jaguar’s (JAG) drill results, SEMAFO’s (SMF.TO) signatory of the United Nations ("UN") Global Compact, Barrick’s (ABX) fourth quarter results, Paramount’s (PZG) assay results, Agnico-Eagle’s (AEM) fourth quarter results, Orko Silver’s (OK.V) update of activities, and SilverCrest’s (SVL.V) drill results were among big stories in the gold and silver mining industry making headlines today.

 

WINNERS

1. Kinross

KGC +7.66% $11.10

2. Agnico-Eagle

AEM +6.96% $36.59

3. Fortuna

FSM +6.59% $6.63

LOSERS

1. Midway

MDW-2.12% $1.85

2. Kimber

KBX -1.74% $1.13

3. Eurasian

EMXX-1.52% $2.58

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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