June 11: Gold Erases Midday Losses and Ends Higher

The Metals:

Gold climbed $8.44 to $1603.04 in Asia before it fell back to as low as $1581.60 by about 10AM EST in New York, but it then climbed back higher for most of the rest of trade and ended with a gain of 0.35%. Silver rose to $28.956 in Asia before it dropped back to $28.299, but it also rallied back higher in late trade and ended unchanged on the day.

Euro gold rose to about €1282, platinum gained $9.25 to $1440.75, and copper gained a couple of cents to about $3.33.

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

The Economy:

There were no major economic reports today. Tomorrow at 8:30AM EST brings Import and Export Prices for May and at 2PM is the Treasury Budget for May expected at -$125.0 billion.

The Markets:

Charts Courtesy of http://finance.yahoo.com/ [6]

Oil [7] fell as the U.S. dollar [8] index erased early losses and ended with a slight gain while the euro closed lower after “optimism over Spain's bank bailout [9] gave way to unease about the country's debt problems.”

Treasuries rose as the Dow, Nasdaq, and S&P fell on persistent worries about Europe.

Among the big names making news in the market [10] today were Best Buy, UnitedHealth, and J&J.

The Commentary:

“I have provided an 8 hour gold chart [11] today as it provides a very good glimpse into the technical composition of that market's recent price action.

Note that you can clearly see the solid zone of buying support extending from just slightly above the $1550 level on down towards $1520. It has been at these levels that strong buying has continued to emerge over the last month. I suspect that it is in this zone that Asian Central Banks are gobbling up the metal. Remember, they will not chase the metal higher - only the hedge fund managers buy high and hope to buy even higher before selling. By keeping an eye on this chart we can therefore get a sense of at just what level these buyers believe gold has "value". It is this sort of buying that provides a base for a market upon which it will eventually launch a rally.

For gold, that spark is not there just yet as the absence of an "immediate or forthcoming" QE event means that we lack the ingredient to make the dough rise. However, the continued ultra low interest rate environment, in many instances resulting in negative REAL rates of return, is strongly friendly towards gold as there is little opportunity cost in holding the metal with yields this low. Also, this feeds into the concerns of those who fear continued currency turmoil.

You can also see on this chart that band of congestion or range trade that was bounded by $1700 on the top and checked by $1620 or so on the bottom. Gold had been in that range beginning back in late February/early March with the top of the range retreating down towards $1680 as Europe worsened.

If you notice, this recent rally off the lows near and under $1550 ran right back into this former congestion range before encountering selling pressure from the bullion banks forcing a retreat.

It will take news of a QE launch to take gold up through the top of that former congestion zone and send this market into a strong uptrend.”- Dan Norcini, More at http://www.traderdannorcini.blogspot.com/ [12]

“My Dear Friends,

In one corner we have the Exchange stabilization fund and gold banks, their brokers who are clearly in a panic to hold gold below $1600. In the other corner are many central banks elsewhere that fear the viability of their paper currency inventories. In the middle stands the speculators which are basically gambleholics who will always be in the middle of the battle getting pummeled.

Last evening was the worst nightmare of the Exchange Stabilization Fund and gold banks as gold moved up $17 in Asia, therein properly defining the situation in paper currency everywhere.

The EU had gapped up and gold had worked its way up.

The situation is so fragile for Goldman, the primary broker for the Exchange Stabilization Fund selling paper.

Gold went from plus $17 to minus $10 as it caught the notice of latent central bank physical buyers. Gold then gained $13 so far from the low.

The war is between US manipulative interests and central banks. The fiat paper system is broken to the point that depositors will not get back their funds without delay and potential discounting.

The banking system, thanks to OTC derivatives, is broken. Austerity politicians are going to be swept out of Euroland and elsewhere.

Stay the course. Gold’s targets are $1909 and $2111 on its progressive march.

The secret that the manipulators must keep quiet is that the physical market for gold is very thin on the sell side. Whatever is offered, be it 500 tons or more in manipulation from paper, has been and will continue to be taken.

As gold ticked up $17, the physical market was thin on offerings.

Bullion will top paper. The price target for gold is not below $1524 but rather over $2100.

Respectfully yours,”- Jim Sinclair, JSMineset.com [13]

GATA Posts:

[14]

Alasdair Macleod: Gold data hints at possible market upswing [15]

A golden idea to save (or doom) the euro [16]

Felix de la Cova: The real cost of not owning gold [17]

Brodsky and Quaintance: Solution is asset monetization, starting with gold revaluation [18]

The Statistics:

As of close of business: 6/08/2012

Global Gold ETF Holdings

[WGC Sponsored ETF’s]

[19]

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

COMEX Gold Trust (IAU) Total Tonnes in Trust: 178.09: +0.82 change from yesterday’s data.

Silver Trust (SLV) Total Tonnes in Trust: 9,669.08: No change from yesterday’s data.

The Miners: [20]

NovaGold’s (NG) Divestiture of Rock Creek, Kinross Gold’s (KGS) resumed production, and IMPACT Silver’s (IPT.V) ranking and update were among the big stories in the gold and silver mining industry making headlines today.

WINNERS

LOSERS

Winners & Losers tracks NYSE and AMEX listed gold and silver mining stocks that trade over $1.

Please see Yahoo’s Mining/Metals News Wire [21] for all of today’s mining news.

- Chris Mullen, Gold Seeker Report [22]

- Would you like to receive the Free Daily Gold Seeker Report in your e-mail? Click here [23]

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

• http://www.capitalupdates.com [24]
• http://www.goldseek.com [25]
• http://www.silverseek.com [26]
• http://www.goldreview.com [20]

© Gold Seeker 2012

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