Gold & Silver Digest: 3/28/13

Adam Taggart
By Adam Taggart on Thu, Mar 28, 2013 - 6:56pm

The Gold & Silver Digest contains headlines of stories that members of this group deem relevant and/or interesting to precious metals enthusiasts.

If you have articles to submit for the next digest, please email them to me by clicking here.

3/28/13 7:37 PM EST US close metals price quotes from Finviz

Reuters: Gold falls, down for quarter as safe-haven bid fades

NEW YORK, March 28 (Reuters) - Gold fell on Thursday and closed the first three months of 2013 with a quarterly decline of nearly 5 percent as fears about Europe waned, Wall Street surged and strong U.S. economic data cut demand for a safe haven.

Gold slipped after U.S. GDP data showed the economy expanded at an annual rate of 0.4 percent for the fourth quarter, more than the government had previously estimated. Initial jobless claims rose last week but not enough to suggest the labor market recovery was losing steam. 

Recommended Book:
Currency Wars: The Making of the Next Global Crisis
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BusinessWeek: Gold Declines in Worst Run Since 2001 as Economic Concerns Ease

Gold futures fell, capping the longest run of quarterly declines since 2001, as banks in Cyprus reopened, easing concern that Europe’s debt crisis will worsen and curbing demand for haven assets.

Cyprus’s banks opened for the first time in almost two weeks. The U.S. economy grew at a faster pace than previously estimated in the fourth quarter, Commerce Department figures showed today. Holdings in exchange-traded funds backed by bullion contracted 6.9 percent this quarter amid speculation that the Federal Reserve will rein in stimulus. Gold prices have fallen 4.8 percent this year.

The Wall Street Journal: Gold Concludes Another Horrible, No Good, Very Bad Quarter

Gold hasn’t exactly glittered over the past six months.

The precious metal finished the first quarter at $1594.80, down $80 an ounce, or 4.8%. Combined with its downbeat end to 2012, gold has now dropped 10% over the past two quarters.

Gold’s recent slide  has been quite an anomaly compared to historical trends. The last time the precious fell in two consecutive quarters was in 2001, according to WSJ Market Data Group.

Forbes: Gold Survey: Majority Of Survey Participants See Higher Gold Prices Next Week

Higher prices are expected by a majority of participants in the weekly Kitco News Gold Survey, as the lingering eurozone worries and demand for gold at under $1,600 an ounce is expected to keep the market lifted.

In the Kitco News Gold Survey, out of 34 participants, 27 responded this week. Of those 27 participants, 17 see prices up, while six see prices down, and four see prices moving sideways or are neutral. Market participants include bullion dealers, investment banks, futures traders, money managers and technical-chart analysts.

Forbes: Gold: Why April Is a Key Month

It was another choppy day in the stock market as the S&P 500 was down over 12 points in early trading, but closed down less than one point. As I said, after Tuesday’s strong performance, we needed a strong up day to shift the trend in favor of the bulls, but we did not get it even though the A/D numbers were positive.

As this is the last trading day of the month, we may have to wait until next week before we get over the choppy trading that is often typical in the month of March. I would take a day of quite negative A/D numbers to provide the first warning that the market was in the process of building a top. Two consecutive higher closes would clearly shift the focus on the upside.

Business Insider: SANTELLI: 'I Don't Even Look At Gold As Gold Anymore'

Now that gold isn't doing so hot, it sounds as though Rick Santelli thinks the whole game is rigged.

Santelli, who traded gold since 1979, says those investing in gold ETFs are going to end up with checks from ETFs rather than physical gold.

Barron's: Gold Miners Have ‘Terrible Structural Features’: Morningstar

Morningstar’s Samuel Lee has shown how gold-mining stocks — despite the impression to the contrary – have tracked the price of gold reasonably well for years. That’s been true even as the shares slumped, and gold rose steadily for more than a decade.

How is that possible? It’s true if you look at the total value of gold-mining companies. This simply means multiplying stock prices times shares outstanding, instead of the more commonly cited stock prices by themselves.

ABC Rural: WA company backs prediction of sixfold rise in silver price

A Western Australian miner says there's no reason the price of silver won't hit $200 an ounce in the coming decade.

The prediction, made at last week's Mines and Money conference in Hong Kong, would mean a sixfold price increase for the precious metal.

But Morrie Goodz, from silver miner MacPhersons, says demand for the metal is strong.

King World News: Gold & Silver Will Now See Major Surges After Cyprus Disaste

Eric King:  “Tom, the Cyprus disaster has so many people frightened, your thoughts there?”

Fitzpatrick: “I think at the end of the day some people focused on the size rather than the substance.  At the early stages of last week, the European authorities were quite prepared to haircut insured depositors.  While they may have pulled that idea back in, to a certain extent the cat is out of the bag....

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3 Comments

ao's picture
ao
Status: Diamond Member (Offline)
Joined: Feb 4 2009
Posts: 2220
no manipulation here

Nope, nothing to see.  Just normal market action.

Live 24 hours gold chart [Kitco Inc.]

robie robinson's picture
robie robinson
Status: Diamond Member (Online)
Joined: Aug 25 2009
Posts: 1148
Rob P's picture
Rob P
Status: Bronze Member (Offline)
Joined: Oct 8 2008
Posts: 85
Bizarre

And even much more so than the usual. 

I'm just holding my breath to see what happens next :)

 

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