• Gold: 1,459.49 -1.26
  • Silver: 16.54 -0.04
  • Euro: 1.105 -0.001
  • USDX: 97.677 0.288
  • Oil: 59.17 0.83

August 10: Gold and Silver Gain Over 1% on the Week

Chris Mullen
|
Friday, August 10th
 

Close

Gain/Loss

On Week

Gold

$1620.40

+$2.70

+1.10%

Silver

$28.11

-$0.01

+1.22%

XAU

158.37

+0.59%

+5.35%

HUI

430.15

+0.90%

+5.55%

GDM

1239.00

+0.69%

+5.05%

JSE Gold

2445.90

+51.92

+2.07%

USD

82.55

-0.07

+0.23%

Euro

122.92

-0.11

-0.70%

Yen

127.75

+0.45

+0.37%

Oil

$92.87

-$0.49

+1.61%

10-Year

1.649%

-0.039

+4.57%

Bond

148.84375

+0.59375

-0.46%

Dow

13207.95

+0.32%

+0.85%

Nasdaq

3020.86

+0.07%

+1.78%

S&P

1405.87

+0.22%

+1.07%

 
 

The Metals:

 

Gold fell $12 to $1605.70 in Asia, but it then rallied to as high as $1625.87 in New York and ended with a gain of 0.17%. Silver slipped to $27.613 in early New York trade before it surged back to $28.32, but it then drifted back lower in afternoon trade and ended with a loss of 0.4%.

 

Euro gold climbed to over €1318, platinum lost $15 to $1396.50, and copper fell a few cents to about $3.40.

 

Gold and silver equities traded mostly slightly higher and ended with modest gains.

The Economy:

 

Report

For

Reading

Expected

Previous

Export Prices

July

0.5%

-

-1.7%

Export Prices ex-ag.

July

-0.3%

-

-1.5%

Import Prices

July

-0.6%

-

-2.4%

Import Prices ex-oil

July

-0.4%

-

-0.3%

Treasury Budget

July

-$69.6B

-$71.0B

-$129.4B

 

What’s Fed to Do as 15 of 18 Banks Fixing Libor Aren’t American Bloomberg

Exclusive: U.S. banks told to make plans for preventing collapse Reuters

All of this week’s other economic reports:

 

Wholesale Inventories - June

-0.2% v. 0.0%

Trade Balance - June

-$42.9B v. -$48.0B

Initial Claims - 8/04

361K v. 367K

Productivity - Q2

1.6% v. -0.5%

Unit Labor Costs - Q2

1.7% v. 5.6%

Consumer Credit - June

$6.5B v. $16.7B

 

Next week’s economic highlights include Retail Sales, PPI, and Business Inventories on Tuesday, CPI, Empire Manufacturing, Net Long Term TIC Flows, Industrial Production, Capacity Utilization, and the NAHB Housing Market Index on Wednesday, Initial Jobless Claims, Housing Starts, Building Permits, and the Philadelphia Fed on Thursday, and Michigan Sentiment and Leading Economic Indicators on Friday.

 

The Markets:

 

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

 

Oil fell on weak trade data out of China that increased worries about slow economic growth and waning energy demand.

 

The U.S. dollar index erased its early morning gains and ended slightly lower as the yen won out as the preferred safe haven fiat currency of today’s session.

 

Treasuries rose as the Dow, Nasdaq, and S&P traded mostly slightly lower on worries about slow economic growth, but hopes for new central bank action over the weekend sent all three indices higher in the final half hour of trade.

 

Among the big names making news in the market Friday were Facebook, Standard Chartered, J.C. Penney, Citigroup, Manchester United, and KKR.

The Commentary:

 

Gold has pushed to the very top of its recent trading range as it works within the confines of its consolidation pattern noted on the chart.

It either mounts a solid breakout this time around or it will fall back towards $1600 and slightly below once again.

I have noted that for the last 5 weeks or so, the lows have been slowly creeping higher hinting at market strength. It simply needs a spark, something to ignite it and push it past the strong selling pressure emerging between $1620 - $1630.

 

Today's strength is predicated on news out of China showing its economy slowing also. Traders are expecting the Chinese authorities to therefore be more inclined towards further monetary accommodation there also.

However, bond yields are moving lower today and equities are flat to lower suggesting that traders are hesitant to read too much into the Chinese news. The focus continues to be on Jackson Hole at the end of this month and early September for the ECB. My guess is that neither one of these Central Banks is going to do anything on the bond buying front.

As a general rule of thumb, the 4th quarter tends to favor a stronger gold price which is helpful to the cause of the bulls. The summer doldrums however are in full force as volume in the gold pit is pitifully low. In such an environment, relatively small orders are able to push prices around rather easily resulting in times at some wild swings. Right now watching gold trade is about as interesting as watching paint dry.

The HUI has pushed strongly past the resistance level at 420 and is now on course for a push towards the 440 level.

 

The HUI to Gold ratio continues to improve with the mining shares leading the bullion price for a change.- Dan Norcini, More at http://www.traderdannorcini.blogspot.com/

 

GATA Posts:

 

 

At the top of China's government, a plan for getting gold

Treasury used ESF cash to insure money-market funds

Dimitri Speck: A high-frequency attack on gold

 

The Statistics:

Activity from: 8/09/2012

Gold Warehouse Stocks:

10,891,149.873

+13,260.135

Silver Warehouse Stocks:

137,519,467.049

-66,421.358

 

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

1254.942

40,347,630

US$65,271m

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

Gold Bullion Securities

127.89

4,111,710

US$6,669m

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

ETFS Physical Gold

149.61

4,810,145

US$7,844m

Australian Stock Exchange (ASX)

Gold Bullion Securities

11.16

358,789

US$582m

Johannesburg Securities Exchange (JSE)

New Gold Debentures

40.91

1,315,135

US$2,098m

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

 

COMEX Gold Trust (IAU) Total Tonnes in Trust: 183.60: No change from yesterday’s data.

 

Silver Trust (SLV) Total Tonnes in Trust: 9,742.43: No change from yesterday’s data.

 

The Miners:

 

WINNERS

1. Paramount

PZG+5.73% $2.40

2. ITH

THM+5.56% $2.85

3. NovaGold

NG +3.62% $4.29

LOSERS

1. McEwen

MUX -5.03% $3.40

2. Golden Star

GSS -4.93% $1.35

3. Exeter

XRA -4.29% $1.56

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

© Gold Seeker 2012

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