Gold bulls were pushed aside for a second day as sellers took command of the gold and silver markets. For the second time in a week, support for gold came into play as the December contract managed to close just above 369 level as funds were hesitant to make a commitment to the yellow metal. After a low right before the close of 368.60, gold had a small bounce settling at 369.80 or down $6.20, the lowest close seen in a month. From the Comex session, speculators slammed gold nearly $10 from early London prices as the U.S. dollar flirted with its downtrend resistance and with strong U.S. equity prices. After the Comex session closed, the U.S. dollar did ease a bit from its highs, which should give gold support in overnight trading. Tomorrow will be critical as gold is near important support levels, which were tested last Friday as well. Silver managed to test the low 4.90s resistance levels before it sold-off with gold getting good buying in the high 4.70 area. Silver closed the day down only 2.8 cents to $4.842.
By the looks of gold and silver shares, one would be surprised to see gold down as much as it did on the day. After the initial morning sell-off to the 192 level area, a bounce was seen followed by another test of the 192 support zone. From there, steady buying which manifested into near frenzy buying into the close sending the HUI up more than 5 points from its daily low even though gold closed down over $6 an ounce and near its lows. After gold closed (comex), the dollar eased with the general markets making buyers feel confident gold would reverse its bearish tone soon. Volume came in slightly light on some equities while moderate to heavy volume was seen on the majority of major gold/silver shares.
WINNERS 1. Agnico-Eagle Mines 12.69 +0.16 (1.28%) 0.813M 2. Gold Fields 13.64 +0.13 (0.96%) 1.720M 3. Randgold & Explor. 13.10 +0.09 (0.69%) 100k LOSERS 1. Minefinders 7.85 -0.42 (5.08%) 92K 2. Durban Deep 2.59 -0.08 (3.00%) 5.817M 3. Crystallex 2.52 -0.07 (2.70%) 0.967M - Company News - AngloGold declined to rule out upping its bid for Ashanti as the rival bid from Randgold Resources represents a far superior offer. “Based on Thursday afternoon share prices, Randgold's all-share offer was worth $1.48 billion, 18.3 percent more than AngloGold's at $1.25 billion.” - details After hours, Crystallex announced it has agreed to sell its Uruguayan interests to Uruguay Mineral Exploration Inc. “Under the terms of the agreement, UME will pay Crystallex US$2,000,000 payable in two equal installments. The first payment of US$1,000,000 will be due 6 months after the closing date of the transaction and the second US$1,000,000 payment will be due 12 months after the closing date. Closing of the transaction is expected on or before October 22, 2003.” - details Golden Star announced it has completed it previously announced buyback of debt and royalties to the Wassa project for $11.5 million. According to the details, the buyback agreement purchase represents approximately 20% discount of the face value of the debt repayment. - Details
Campbell Resources announced that work is underway in the West Zone which confirms previously issued results. – more info U.S. Gold Corp. reported that the 1st phase of exploration drilling results. (details) “Gold Resource Corporation, a private Colorado corporation, is exploring its El Aguila property in the state of Oaxaca, Mexico. Canyon Resources Corporation is funding the exploration program (announced in USGL's August 18, 2003, press release) and can earn a 50% interest in the property by funding $3.5 million in exploration and development expenditures.” Piedmont Mining Company said today that a new group of investors aquired 9 million shares in a private placement. This represents about 24% of the company’s outstanding shares. – more info - Market Watch -
Although the stock market ended up the day up ˝ to 1% across the board, they were unable to hold onto much larger gains seen in the first 2/3rds of the day’s trading. Yahoo provided an impetus to the Nasdaq, which nearly hit 1940 intraday closing at 1911.90 up almost a 1% on the day. Positive economic data and good earnings were major contributors to the bullish atmosphere on Wall Street.
Even with 3-year lows for the U.S. dollar vs. the Yen, the BOJ said they are ready to intervene into the markets again to prop up the dollar. Prior attempts have helped support the dollar but many argue in the end; such attempts only correct a short-term problem making the long-term issue even more problematic. "The yen's recent gains have been too sharp. It's bad for the economy," chief Cabinet secretary Yasuo Fukuda told reporters in Tokyo yesterday. "We will respond to excessive moves. We will take decisive steps." - More - Economy Watch -
Consumers continued their unrelenting demand for goods posting their biggest monthly sales gain in 18 months with Walmart leading the charge.
Initial claims for the week were 382k below market expectations although previous week’s 399k data was revised to 405k. Import/Export prices data for September were released as well. Export minus agriculture was at -0.1% while Import prices minus oil jumped 0.2%. | 
Gold Seeker Daily Report for October 9, 2003
