-- Posted Thursday, 27 July 2006 | Digg This Article
| Close | Gain/Loss |
Gold | $633.40 | +$11.60 |
Silver | $11.32 | +$0.32 |
XAU | 137.26 | -2.93% |
HUI | 319.28 | -2.59% |
GDM | 1017.85 | -2.33% |
JSE Gold | 3005.79 | +0.50% |
USD | 85.86 | -0.05 |
Euro | 126.85 | -0.07 |
Yen | 86.24 | +0.26 |
Oil | $74.54 | +$0.60 |
10-Year | 5.040% | +0.004 |
T-Bond | 107.71875 | -0.0625 |
Dow | 11100.43 | -0.02% |
Nasdaq | 2054.47 | -0.77% |
S&P | 1263.20 | -0.41% |
The Metals:
Gold rose near $630 in Asia and climbed near $635 in London before it jumped above $640 in midmorning New York trade. It then steadily fell off a bit into the close, but it still ended with a gain of 1.87%. Silver steadily rose in Asia and London to about $11.20 by the open in New York which took the price over $11.40 before it fell of a bit, but it still ended with a gain of 2.91%.
Euro gold rose above €495, platinum gained $7 to $1,221, palladium gained $3 to $314, and copper rose over 3 cents to get back above $3.40.
Gold and silver equities rose about 2% at the open, but they then steadily fell off throughout the rest of trade (along with the general markets) and ended with more than 2% losses. While hard to explain the poor performance of the miners on a day which the metals performed so well, some pointed to Newmont’s earnings coming in below consensus and poor guidance as being indicative of the industry, while others pointed to tomorrow’s GDP report which may come in strong and increase chances for the fed continuing to raise interest rates. Some profit taking was also in order from earlier in the week as most miners have gained nearly 10% from Monday’s open through today’s early highs.
The Economy:
Report | For | Reading | Expected | Previous |
Durable Orders | June | 3.1% | 2.3% | 0.3% |
Initial Claims | 7/22 | 298K | 310K | 305K |
New Home Sales | June | 1131K | 1164K | 1666K |
Help-Wanted Index | June | 33 | 33 | 33 |
Tomorrow at 8:30AM EST brings the advanced reading for second quarter GDP expected at 3.0%. The Chain Deflator is expected at 3.4% and the Employment Cost Index is expected at 0.8%. At 9:50 is the revised reading of July Michigan Sentiment expected at 83.0.
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The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil rose on increased tensions in the Middle East and on production problems in Nigeria.
The U.S. dollar index continued to fall on the belief the fed may stop raising interest rates, but it did turn higher into the close to end just slightly lower on the day as strong Durable Goods Orders data contradicted that view and suggested more interest rate hikes may be in order.
Treasuries gained early, but then fell off to find slight losses after the Durable Goods Orders data.
The Dow, Nasdaq, and S&P spent the morning nicely higher on decent earnings, but they then fell off in early afternoon trade and ended slightly lower as investors began to worry about tomorrow’s GDP report that may come in strong and influence the fed to continue to raise interest rates.
Among the big names making news in the market today were Microsoft, Aetna, Bristol-Myers, Comcast, Exxon Mobil, Dow Chemical, Raytheon, Shell, DaimlerChrysler, Kazaa, Harrah’s, and Boston Scientific.
The Commentary:
“As mentioned yesterday, the set up for gold and silver to move sharply higher is in place … for the following reasons:
*The world is blowing up. Iraq and Lebanon are a mess. The need for the US to move more troops into Baghdad this late in the game is a political disaster for President Bush and the Republicans, AND dollar bearish.
*US interest rates are NOT going higher, as the blowhard Fed does not want to wreck the real estate and stock markets. Yes, the Fed could raise the Fed Funds rate one more time in the short-term, but if so, they will indicate they are done. Meanwhile, the intermediate term rates continue to go nowhere…” - From yesterday’s Midas report by Bill Murphy of LemetropoleCafe.com
“August Gold closed up 10.6 at 632.5. This was 2.5 up from the low and 8.5 off the high.
July Silver finished up 0.31 at 11.34, 0.11 off the high and 0.19 up from the low.
The Dollar action generally facilitated ongoing buying of gold on Thursday and despite talk that the kidnapped Israeli soldier might be released soon, the market did manage to hold a large portion of the early gains. In retrospect, the US economic reports should have been supportive for gold as they were not patently weak but they were not so strong that the on-hold Fed hope was challenged. With a number of gold mining concerns posting significant jumps in profitability during the session Thursday it is likely that investment sentiment toward gold was improved. While the stock market ended up waffling on both sides of unchanged throughout the session Thursday initial stock prices were higher in conjunction with soaring energy prices and that has in the past been a very positive combination for the precious metals markets.
The silver market was certainly cheered on Thursday by the combination of gains in gold, the stock market and energy prices. While copper started the session out very strong, that market ended up waffling on both sides of unchanged and that seemed to temper the physical demand focus in the silver market. For the time being it seems that the silver market is mainly focused on the gold market and financial flight to quality concerns and not on the physical commodity market issues of physical supply and demand. Therefore, silver will be watching the ebb and flow of developments in the Middle East and the Dollar a little closer than the equity market and the direction of copper prices.” - The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
James Turk: A trendless dollar will break down soon
John Crudele: Ben, come clean about the PPT!
Canadian mint considers creating ETF for precious metals
Short squeeze in gold is near, Grandich says
The Statistics:
As of close of business: 07/26/2006
Gold Warehouse Stocks: | 8,104,275 | - |
Silver Warehouse Stocks: | 101,867,219 | - 518,242 |
Global Gold ETF Holdings
[WGC Sponsored ETF’s]
| Product name | Total Tonnes | Total Ounces | Total Value |
New York Stock Exchange (NYSE) | Streettracks Gold Shares | 387.56 | 12,460,424 | US$ 7,652m |
LSE (London Stock Exchange) AND Euronext Paris | Gold Bullion Securities | 78.21 | 2,514,631 | US$ 1,594m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 9.69 | 311,127 | US$ 197m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 11.01 | 353,898 | US$ 217m |
Note: Change in Total Tonnes from yesterday’s data: The JSE added 0.13 tonnes.
COMEX Gold Trust (IAU)
Profile as of 07/26/2006 | |
Total Net Assets | $840,321,233 | Ounces of Gold
in Trust | 1,352,254.362 |
Shares Outstanding | 13,600,000 | Tonnes of Gold
in Trust | 42.06 |
Note: No change in Total Tonnes from yesterday’s data.
Silver Trust (SLV)
Profile as of 07/26/2006 | |
Total Net Assets | $996,093,909 | Ounces of Silver
in Trust | 91,417,377 |
Shares Outstanding | 9,150,000 | Tonnes of Silver
in Trust | 2,843.4 |
Note: No change in Total Tonnes from yesterday’s data.
The Stocks:
Second quarter results from Newmont (NEM) and AngloGold Ashanti (AU), Crystallex’s (KRY) C$32.4 million equity financing, and Great Basin’s (GBN) completed $7.5 million financing were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Entree Gold | EGI +3.64% $1.14 |
2. Miramar Mining | MNG +3.10% $3.66 |
3. IAMGOLD | IAG +2.41% $8.92 |
LOSERS
1. Meridian Gold | MDG -5.31% $26.21 |
2. Richmont Mines | RIC -5.25% $3.43 |
3. Newmont | NEM -4.71% $50.53 |
Winners & Losers tracks NYSE and AMEX listed gold and silver mining stocks that trade over $1.
All of today's gold and silver stock news:
- Chris Mullen, Gold Seeker Report
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© Gold Seeker 2006
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-- Posted Thursday, 27 July 2006 | Digg This Article
Gold Seeker Closing Report – Gold & Silver Accomplish Impressive Gains; Miners Do Not
