• Gold: 1,232.28 -0.62
  • Silver: 17.19 -0.03
  • Euro: 1.265 -0.000
  • USDX: 85.845 0.072
  • Oil: 81.99 1.6

November 14: Gold and Silver End Slightly Higher

Chris Mullen
|
Wednesday, November 14th
 

Close

Gain/Loss

Gold

$1725.00

+$0.50

Silver

$32.63

+$0.21

XAU

168.49

-4.66%

HUI

447.96

-4.59%

GDM

1302.87

-4.58%

JSE Gold

2349.27

-67.91

USD

81.12

+0.03

Euro

127.36

+0.33

Yen

124.67

-1.23

Oil

$86.32

+$0.94

10-Year

1.589%

UNCH

T-Bond

152.03125

-0.0625

Dow

12570.95

-1.45%

Nasdaq

2846.81

-1.29%

S&P

1355.49

-1.39%

 
 

The Metals:

 

Gold edged up to $1729.23 in Asia before it fell back to $1720.65 in London and then chopped up to as high as $1733.60 by about 2PM EST, but it then fell back off in the last couple of hours of trade and ended with a gain of just 0.03%. Silver slipped to $32.36 in London before it rose to as high as $32.908, but it then fell back off in late trade and ended with a gain of just 0.65%.

 

Euro gold fell to about €1356, platinum gained $5.70 to $1584.50, and copper fell slightly to about $3.46.

 

Gold and silver equities fell throughout most of trade and ended with over 4.5% losses.

The Economy:

 

Report

For

Reading

Expected

Previous

PPI

Oct

-0.2%

0.1%

1.1%

Core PPI

Oct

-0.2%

0.1%

0.0%

Retail Sales

Oct

-0.3%

-0.2%

1.3%

Retail Sales ex-auto

Oct

0.0%

0.1%

1.2%

Business Inventories

Sep

0.7%

0.6%

0.6%

 

Minutes from the fed’s October 24th meeting showed that “a number of participants indicated that additional asset purchases would likely be appropriate next year after the conclusion of the maturity-extension program.”

 

Obama calls for rich to pay more, keep middle-class cuts Reuters

US mortgage applications rise on Sandy rebound, record low rates Reuters

Tomorrow brings Initial Jobless Claims, CPI, Empire Manufacturing, and the Philadelphia Fed.

 

The Markets:

 

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

 

Oil jumped higher after reports that a top Hamas leader was killed in an attack that could be the start of a much larger conflict.

 

The U.S. dollar index traded mostly slightly lower as the euro found modest gains on Germany’s proposal to bailout Greece.

 

Treasuries fell on profit taking.

 

The Dow, Nasdaq, and S&P fell on worries about the US fiscal cliff and the conflict in the Middle East.

 

Among the big names making news in the market today were Man United, Abercrombie & Fitch, Staples, Cisco, and Facebook.

The Commentary:

 

Ever since Newmont and Barrick reported "less than stellar" earnings, (and that is being generous with my choice of words), the mining sector has not been able to shrug off the selling pressure coming from both disappointed bulls as well as opportunistic bears.

The technical posture of the market has deteriorated but if the index is able to stay above the former downsloping trend line which it took out in early September, the long term bulls will be okay.

It is not uncommon to see a market breach a trendline and then come back to retest it before moving higher. If we get such a test, it will prove whether or not the resolve of the bulls remains intact and whether they still see the mining sector as the strong value that they did a couple of months ago. I think it is an obvious statement that the Newmont and Barrick news shook their confidence in a big way.

 

There is a bit of chart support near 448. If that cannot stem the bleeding in the sector, the most likely target for the next support region arises near 440.

The problem that the sector has right now is that the disappointing earnings numbers, combined with strong weakness across the broader US equity markets, have given rise to that infernal ratio spread trade of the hedge funds, a trade which I might add has proven to be wildly successful for them even as it has produced massive frustration among the long-term oriented holders of these companies. It has also produced dramatic UNDERVALUATION of the shares in selective companies at times. This looks to be once again developing with the stubborn refusal of the Comex gold and silver markets to follow the shares lower.

This dichotomy between the shares and the metals cannot go on indefinitely however so something will eventually give. Either the metals will follow the shares lower or the shares are going to rebound.

Given the fact that the S&P 500 is flirting dangerously with a critical support level, it is going to take a near Herculean effort on the part of the mining sector bulls to drive these share prices back higher. If we do get one of these "miraculous" rebounds in the S&P 500, especially in the last hour of trading, I would look for selling pressure on the mining shares to dissipate.- Dan Norcini, More at http://www.traderdannorcini.blogspot.com/

 

GATA Posts:

 

 

Shock: NYTimes notes that banking system gold may not be real or accessible

On RT's 'Capital Account,' CFTC's Chilton repeats belief in silver market manipulation

 

The Statistics:

As of close of business: 11/13/2012

Gold Warehouse Stocks:

11,164,977.036

-114,669.401

Silver Warehouse Stocks:

143,516,473.004

-368,873.81

 

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

1338.712

43,040,927

US$74,263m

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

Gold Bullion Securities

140.16

4,506,341

US$7,787m

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

ETFS Physical Gold

156.72

5,038,548

US$8,216m

Australian Stock Exchange (ASX)

Gold Bullion Securities

11.16

358,789

US$620m

Johannesburg Securities Exchange (JSE)

New Gold Debentures

42.45

1,364,715

US$2,214m

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

 

COMEX Gold Trust (IAU) Total Tonnes in Trust: 212.01: No change from yesterday’s data.

 

Silver Trust (SLV) Total Tonnes in Trust: 10,030.35: -25.59 change from yesterday’s data.

 

The Miners:

 

IAMGOLD’s (IAG) completed project sale and third quarter results, Gold Fields’ (GFI) and Buenaventura’s (BVN) update on the Chucapaca exploration project in Peru, Comstock’s (LODE) third quarter results and priced public offering, Claude’s (CGR) third quarter results, AuRico’s (AUQ) mine fatalities, SilverCrest’s (SVL.V) third quarter results, Endeavour Silver’s (EXK) drill results, First Majestic’s (AG) third quarter results, and Excellon’s (EXN.TO) third quarter results were among the big stories in the gold and silver mining industry making headlines today.

LOSERS

1. IAMGOLD

IAG -19.45% $11.97

2. Gold Resource

GORO-13.99% $12.67

3. Sandstorm

SAND -9.07% $12.53

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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