• Gold: 1,295.10 -1.88
  • Silver: 20.68 0.04
  • Euro: 1.339 -0.001
  • USDX: 81.457 0.035
  • Oil: 99.45 -0.04

May 11: Gold and Silver Fall About 4% on the Week

Chris Mullen
|
Friday, May 11th
 

Close

Gain/Loss

On Week

Gold

$1581.30

-$12.70

-3.72%

Silver

$28.91

-$0.17

-4.59%

XAU

151.25

-1.41%

-3.51%

HUI

404.03

-1.69%

-4.26%

GDM

1173.79

-1.57%

-3.81%

JSE Gold

2358.36

+25.12

+6.36%

USD

80.28

+0.13

+1.02%

Euro

129.21

-0.16

-1.25%

Yen

125.13

+0.01

-0.10%

Oil

$96.13

-$0.95

-2.40%

10-Year

1.841%

-0.043

-2.07%

Bond

145.125

+0.78125

+1.00%

Dow

12,820.60

-0.27%

-1.67%

Nasdaq

2933.82

+0.01%

-0.76%

S&P

1353.39

-0.34%

-1.15%

 
 

 

The Metals:

 

Gold fell $20.28 to $1573.72 by about 3:30AM EST before it climbed back to $1590.53 by late morning in New York, but it then fell back off into the close and ended with a loss of 0.8%. Silver slipped to as low as $28.436 by midmorning in New York before it rallied back to $29.15, but it also fell back off in afternoon trade and ended with a loss of 0.58%.

 

Euro gold fell to about €1224, platinum lost $20.25 to $1459.75, and copper fell 6 cents to about $3.63.

 

Gold and silver equities traded mostly slightly lower and ended with about 1.5% losses.

 

The Economy:

 

Report

For

Reading

Expected

Previous

PPI

Apr

-0.2%

0.0%

0.0%

Core PPI

Apr

0.2%

0.2%

0.3%

Michigan Sentiment

May

77.8

76.0

76.4

 

All of this week’s other economic reports:

 

Treasury Budget - April

$59.1B v. -$40.4B

 

Export Prices - April

0.4% v. 0.8%

 

Export Prices ex-ag. - April

0.2% v. 0.5%

 

Import Prices - April

-0.5% v. 1.5%

 

Import Prices ex-oil - April

0.1% v. 0.5%

 

Trade Balance - March

-$51.8B v. -$45.4B

 

Initial Claims - 5/05

367K v. 368K

 

Wholesale Inventories - March

0.3% v. 0.9%

 

Consumer Credit - March

$21.4B v. $9.3B

 

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

 

The Markets:

 

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

 

Oil fell as the U.S. dollar index and treasuries rose on lingering worries about Europe.

 

The Dow, Nasdaq, and S&P fell at the open on a surprising loss from JPMorgan, but they then pared their losses a bit midmorning and ended only mixed after a stronger than expected Consumer Confidence report.

 

Among the big names making news in the market Friday were JPMorgan, Sony, Facebook, and Arena.

 

The Commentary:

 

Silver continues to be the poor poster child for the Deflation or Risk Aversion Trade. Its chart is abysmal at this point as it has steadily retreated since peaking near $50 in what seems a lifetime ago. About the only positive thing that can be said about it is that is had not been below the $26 level for some time now. That level still seems to be bringing in buyers.

Unless something changes rather drastically over the next week, it looks like it is going to once again test the resolve of those buyers that have been busy down there. If it holds, fine; if not, it would get rather ugly for silver.

One thing about it is that it has already seen a rather large exodus of speculative money from the long side of the market. It will take fresh short selling to break it down below $26 therefore. The key question is when will the market psychology shift away from deflation back to inflation? My view is that it will not UNLESS and UNTIL the monetary authorities give a credible hint that the QE punch bowl is going to be brought out soon.- Dan Norcini, More at http://www.traderdannorcini.blogspot.com/

 

The Statistics:

Activity from: 5/10/2012

Gold Warehouse Stocks:

11,046,772.254

-

Silver Warehouse Stocks:

140,581,983.349

+110,401.1

 

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

awaited

awaited

US$awaited

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

Gold Bullion Securities

awaited

awaited

US$awaited

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

ETFS Physical Gold

awaited

awaited

US$awaited

Australian Stock Exchange (ASX)

Gold Bullion Securities

awaited

awaited

US$awaited

Johannesburg Securities Exchange (JSE)

New Gold Debentures

awaited

awaited

US$awaited

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

 

COMEX Gold Trust (IAU) Total Tonnes in Trust: 179.22: -0.91 change from yesterday’s data.

 

Silver Trust (SLV) Total Tonnes in Trust: 9,465.08: No change from yesterday’s data.

 

The Miners:

 

Tanzanian Royalty’s (TRX) drill results, Randgold’s (GOLD) plans to ring the NASDAQ Stock Market Closing Bell, and Banro’s (BAA) appointment of Mr. Colin Belshaw as Vice President, Operations of the Company were among the big stories in the gold and silver mining industry making headlines Friday.

 

WINNERS

1. Royal Gold

RGLD+4.29% $63.20

2. Extorre

XG +3.31% $3.12

3. Comstock

LODE +2.63% $1.95

 

LOSERS

1. Aurizon

AZK-8.95% $4.58

2. Avino

ASM-6.75% $1.52

3. Exeter

XRA-6.58% $2.13

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.

 

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