• Gold: 1,218.39 2.92
  • Silver: 17.75 -0.07
  • Euro: 1.285 0.000
  • USDX: 84.668 -0.01
  • Oil: 91.22 0.53

Gold Seeker Weekly Wrap-Up: Gold and Silver End Mixed on the Week

|
April 13, 2012 - 4:14pm
 

Close

Gain/Loss

On Week

Gold

$1656.10

-$19.10

+1.56%

Silver

$31.47

-$0.86

-0.63%

XAU

167.64

-1.61%

+1.42%

HUI

453.11

-1.69%

+2.73%

GDM

1313.33

-1.45%

+2.66%

JSE Gold

2286.69

-27.51

-1.10%

USD

79.90

+0.58

-0.21%

Euro

130.77

-1.09

+0.08%

Yen

123.45

-0.20

+1.62%

Oil

$102.83

-$0.81

-0.46%

10-Year

1.998%

-0.051

-8.14%

Bond

141.4375

+0.96875

+0.85%

Dow

12849.59

-1.05%

-1.61%

Nasdaq

3011.33

-1.45%

-2.25%

S&P

1370.26

-1.25%

-1.99%

 
 

 

The Metals:

 

Gold waffled near unchanged in Asia and London, but it then fell back off for most of trade in New York and ended near its late session low of $1649.32 with a loss of 1.14%.Silver slipped to as low as $31.33 and ended with a loss of 2.66%.

 

Euro gold platinum lost $21.50 to $1578.50, and copper

 

Gold and silver equities fell about 1.5% in the first half hour of trade and remained near that level for the rest of the day.

 

The Economy:

 

Report

For

Reading

Expected

Previous

CPI

Mar

0.3%

0.3%

0.4%

Core CPI

Mar

0.2%

0.2%

0.1%

Michigan Sentiment

Apr

75.7

76.1

76.2

 

All of this week’s other economic reports:

 

PPI - March

0.0% v. 0.4%

 

Core PPI - March

0.3% v. 0.2%

 

Trade Balance - February

-$46.0B v. -$52.5B

 

Initial Claims - 4/07

380K v. 367K

 

Treasury Budget - March

-$198.2B v. -$188.2B

 

Import Prices - March

1.3% v. -0.1%

 

Import Prices ex-oil - March

0.5% v. 0.0%

 

Export Prices - March

0.8% v. 0.4%

 

Export Prices ex-ag. - March

0.5% v. 0.5%

 

Wholesale Inventories - February

0.9% v. 0.6%

 

Next week’s economic highlights include Retail Sales, Empire Manufacturing, Net Long-Term TIC Flows, Business Inventories, and the NAHB Housing Market Index on Monday, Housing Starts, Building Permits, Industrial Production, and Capacity Utilization on Tuesday, and Initial Jobless Claims, Existing Home Sales, 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 worries about slower than expected economic growth in China that sent the Dow, Nasdaq, and S&P lower.

 

Among the big names making news in the market Friday were Goldman Sachs, Apple, JPMorgan, Wells Fargo, and Google.

 

The Commentary:

 

What more is left to say at this point other than the fact that the hedge fund computers and their damnable algorithms have destroyed the integrity of the US futures markets. The sheer size, extent, ferocity and volatility of the moves that these pestilential computers are creating have rendered these markets basically useless for what they originally came into being for, namely, risk management for commercial entities.

Price swings of this magnitude are blowing up hedged positions put on by commercials and other end users/merchants/processors, etc. While margins are reduced for legitimate hedgers, they still must meet any and all margin calls on any hedged position, whether that is a long position or a short position. Some will say that all they need to do is to buy or sell the corresponding physical commodity and while simultaneously lifting the hedge. That might work fine on paper but in the real world it is a fabrication.

A cattle feedlot, a grain elevator owner/operator, a cocoa processor, a cotton mill, etc, may or may not have the actual product ready to sell as it is still maturing or growing in the field or may not be ready yet to actually buy the product but they might have hedges in place while they are waiting. So much for their hedges in this sort of idiotically insane trading environment. Their hedges are getting blasted to kingdom come but they must maintain the thing if it moves against them meaning that they need cash to meet any and all margin calls.

At some point, the cost of doing so, with hedge fund running prices all over the damn planet on a daily basis, is no longer feasible.

I am predicting here and now that unless something is done to corral these hedge funds, the futures market is going to become useless as a risk management tool for non-speculative entities.

Take a look at the following CCI chart (it might as well be copper or silver for that matter) and look at the extent of the daily price swings. Tuesday saw a big sell off across the sector as traders feared European debt woes and that brought about the RISK OFF trades. Commodities were dumped, the Dollar was bid higher and up went the bonds. The next day was relatively tame by comparison as traders were hesitant to do much of anything. Thursday saw the entire losses of the previous two days erased as Fed Governor Dudleys' comments were interpreted as making the case for another round of QE forthcoming sooner rather than later.

Today, news hit that Chinas' growth had slowed in the first quarter to a "pitiful" 8.1%. Yep, such a debacle ( if we could get half of that over here, a lot of our fiscal budget woes and our unemployment problem would actually get better). I am of course being sarcastic but once again the hedge funds and their mindless machines dumped everything in sight since we all know that no one needs to eat when growth is slowing down now do they? The result, YEP - all of the Dudley rally went down in flames with the market right back where it ended Tuesday.

Maybe we all should just go the hell to sleep and wake up in a year and see if the chart has actually gone anywhere besides up and down like a stinking yo-yo.- Dan Norcini, More at http://www.traderdannorcini.blogspot.com/

 

The Statistics:

Activity from: 4/12/2012

Gold Warehouse Stocks:

10,992,840.641

-32.15

Silver Warehouse Stocks:

141,594,392.538

+985,437.192

 

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

1286.167

41,351,566

US$68,898m

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

Gold Bullion Securities

115.09

3,700,236

US$6,170m

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

472,484

US$758m

Johannesburg Securities Exchange (JSE)

New Gold Debentures

39.87

1,281,721

US$2,124m

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

 

COMEX Gold Trust (IAU) Total Tonnes in Trust: 180.17: No change from yesterday’s data.

 

Silver Trust (SLV) Total Tonnes in Trust: 9,618.57: -7.55 change from yesterday’s data.

 

The Miners:

 

WINNERS

1.Eurasian

EMXX+4.44% $2.35

2.Loncor

LON +3.32% $1.24

3.Pretivm

PVG+2.99% $15.82

 

 

LOSERS

1.Ivanhoe

IVN-6.30% $12.79

2.Richmont

RIC -5.97% $6.77

3.McEwen

MUX -5.33% $3.91

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

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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