The Metals:
Gold fell only a little over 1% to around $1200 in Asia and London, but it then fell much further throughout most of trade in New York and ended near its low of $1167.02 with a loss of 3.86%. Silver followed a similar pattern and ended near its low of $18.412 with a loss of 3.15%. Both metals have also fallen to new lows in after hours access trade.
Euro gold fell to about €786, platinum lost $47 to $1440, and copper remained at about $3.22.
Gold and silver equities fell over 7% by midday before they rebounded slightly at times in afternoon trade, but still ended with over 5% losses.
The Commentary:
“Thursday's data shows that there was a very small change in GLD... the gold ETF... which was up 8,893 ounces. But in the silver ETF...SLV... it was another red-letter day... as another big chunk got taken into inventory. This time it was a paltry 3,634,473 ounces. Another half a dozen shipments of this size and they actually might get caught up. Since October 13th... less than two months ago... 29.0 million ounces have been brought into the SLV. That's equivalent to 75% of the U.S.A.'s entire yearly silver production. To put it another way, that's equal to all the silver eagles that will be sold by the U.S. Mint during the entire 2009 calendar year! And that, dear reader, is a lot!
Talking about the U.S. Mint, I was surprised to see an update from them yesterday... but it wasn't silver eagles that were updated, it was factional sizes of gold eagles... bullion coin sizes that the mint hasn't produced since this time last year. I'm not going to break down the numbers but, in total, it added up to 58,000 ounces of gold... an amount not to be sneezed at. No one-ounce gold eagles were sold. The mint also reported selling another 9,000 24K gold buffaloes as well.”
– From Ed Steer’s Gold & Silver Daily, read the full report
here.
“
Dear Comrades In Golden Arms,
The dollar has rallied today and accordingly gold is soft.
1. The temporary high of this rally was $1224.00 to $1224.10 in the cash market 3 times.
2. Remember the day that unemployment figures went from 9.5% to 9.4%? It was heralded as the end of the continuous increase in that figure.
3. Gold at these price levels will axiomatically become extremely violent.
4. The magnet underlying gold is at $1156 and below that at $1089.
5. Regarding articles that claim gold has topped, the Chinese will be buyers on the decline if they can make that purchase and save face.
6. This is a boon to the Chairman of the Federal Reserve as his supporters can claim that changing leadership when things are turning is a greater risk than maintaining the present leadership at the Fed.
7. If Bernanke is confirmed, which is reasonable to assume, you can be sure that the pressures for policy will be generated via the Treasury.
8. Clearly this economy is bouncing along a bottom and has decelerated its decline, but is doing so poorly in light of the over the top liquidity placed into the world economy. This is how all figures, market related, react in a trend. That is all.
9. Respectfully, this is gold so if you cannot stand the heat in the kitchen then you had better leave. Buying dollars here has no real fundamental basis other than a few days at best.
The MOPE (Management of Perspective Economics) accelerated two trading days ago is now rising to spiritual levels. The exception to this is at the US Labor Department. They suffered a major loss of standing when they went wild over the drop from 9.5% to 9.4% as the end of increasing unemployment.
I am interested in following the analysis of this number by paying attention to
www.shadowstats.com.
Gold weakness and dollar firmness is again temporary.
Act with your head, not with your gut center of emotions.
Sincerely,”
- Jim Sinclair, JSMineset.com
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Originally Posted by zen
