-- Posted Thursday, 17 August 2006 | Digg This Article
| Close | Gain/Loss |
Gold | $615.30 | -$13.20 |
Silver | $11.95 | -$0.29 |
XAU | 140.32 | -2.04% |
HUI | 327.09 | -2.20% |
GDM | 1040.44 | -2.21% |
JSE Gold | 2897.40 | -1.11% |
USD | 85.03 | +0.15 |
Euro | 128.19 | -0.35 |
Yen | 86.11 | -0.24 |
Oil | $70.06 | -$1.83 |
10-Year | 4.867% | -0.004 |
T-Bond | 109.3125 | UNCH |
Dow | 11334.96 | +0.07% |
Nasdaq | 2157.61 | +0.38% |
S&P | 1297.48 | +0.16% |
The Metals:
Gold held near unchanged in Asia and traded a couple of dollars higher in London, but it then fell off throughout trade in New York and ended near its lows of the session with a loss of 2.10%. Silver rose over 15 cents in Asia before it fell back near unchanged in London, but the real drop came in New York trade which took it under $12 to close with a loss of 2.37%.
Euro gold fell under €480, platinum lost $19 to $1,217, palladium gained $1 to $331 to a 10 week high, and copper fell over 15 cents to about $3.34.
Gold and silver equities traded about 1% lower in morning trade before they extended their drop in early afternoon trade to find about 2.5% losses by roughly 2:30, but they did rally a bit into the close to end off of their lows.
The Economy:
Report | For | Reading | Expected | Previous |
Initial Claims | 8/12 | 312K | 315K | 322K |
Leading Indicators | July | -0.1% | 0.1% | 0.1% |
Philadelphia Fed | Aug | 18.5 | 8.0 | 6.0 |
Also making economic news today was the fed’s Fisher who noted that the fed would not be inhibited in raising interest rates again in order to keep inflation contained. Tomorrow at 9:50AM EST is the preliminary reading for August Michigan Sentiment expected at 84.0.
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The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil fell on the belief that current stockpile levels are high enough to combat any supply shortages as the summer driving season ends. It also may have fallen on signs of a slowing economy which cuts into demand.
The U.S. dollar index fell in early trade, but it then rallied to find slight gains by the close as the fed’s Fisher spoke and the Philadelphia Fed survey came in strong and raised hopes for interest rate hikes.
Treasuries gained early, but then fell off to unchanged after the Philadelphia Fed report. The yield on the 10-year fell to a new 4 and ½ month low.
The Dow, Nasdaq, and S&P found nice gains by early afternoon on decent earnings and a lower oil price, but they then fell off to find losses following Fisher’s hawkish comments before a rally in the last hour of trade brought all 3 indices back slightly higher on the day.
Among the big names making news in the market today were Dell, Merck, China.com and Google, Sears, and HP.
The Commentary:
“While the bombing of the gold price in recent weeks by Herr Paulson and his stormtroopers has made our financial lives most aggravating of late, the big picture for gold and silver continues to brighten. The gold and silver macro market fundamentals continue to improve and remain explosive. Why?
The consistent MIDAS analysis of what the Fed and those in power in Washington have been up to is they have been bluffing regarding their intentions to fight inflation seriously … for two basic reasons:
*The US economy is generally weaker than acknowledged by Planet Wall Street and the housing market is falling apart in some places. To really fight inflation, by taking interest rates up, US stocks and real estate would really suffer.
*If the US stock and real estate markets GO (down), so do the incumbents facing re-election in November, especially the Republicans. The Orwellians running the show in Washington must keep these markets afloat ahead of this crucial election, especially President Bush. If the Democrats ever gain control of the House and Senate, there could be severe repercussions over how the US got into our Iraq quagmire.” - From yesterday’s Midas report by Bill Murphy of LemetropoleCafe.com
“December Gold closed down 13.7 at 625.3. This was 1.8 up from the low and 16.7 off the high.
September Silver finished down 0.29 at 11.995, 0.395 off the high and 0.015 up from the low.
The gold market started out on positive footing but when the Dollar managed a recovery into positive ground for the session and oil prices plummeted to even lower levels, it seemed that another wave of longer term position longs decided to liquidate. With the trade also concerned about a general pattern of slowing in the US and the Euro zone, it is also possible that some of the selling was the result of sagging near term physical demand expectations. While the Philly Fed survey readings were mostly positive and served to countervail the slack leading indicators report early in the session it is clear that the gold market is being confronted with threats of slowing from a number of sectors.
A significant failure in the silver market from the early rally seems to have disappointed a large sector of the trade on Thursday. Surprisingly the gains in the stock market on Thursday were countervailed in the minds of silver traders by what appears to be ongoing inflation or flight to quality liquidation pressures. With the oil prices falling significantly and now down almost nearly $10.00 an ounce since the August highs, the general tone in the precious metals markets is weakened. The market did show some fleeting interest in the $12.00 psychological even number support level but in looking at market dialogue the bear camp seems to be getting a more conclusive flow of news to support its case.” - The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Nickel soars, prompting metal exchange to impose trading limits
The Statistics:
As of close of business: 08/16/2006
Gold Warehouse Stocks: | 8,178,823 | - |
Silver Warehouse Stocks: | 102,622,489 | - 451,492 |
Global Gold ETF Holdings
[WGC Sponsored ETF’s]
| Product name | Total Tonnes | Total Ounces | Total Value |
New York Stock Exchange (NYSE) | Streettracks Gold Shares | 388.98 | 12,506,073 | US$ 7,874m |
LSE (London Stock Exchange) AND Euronext Paris | Gold Bullion Securities | 78.20 | 2,514,048 | US$ 1,546m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 9.71 | 312,255 | US$ 192m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 11.13 | 357,788 | US$ 225m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU)
Profile as of 08/16/2006 | |
Total Net Assets | $871,599,627 | Ounces of Gold
in Trust | 1,386,595.482 |
Shares Outstanding | 13,950,000 | Tonnes of Gold
in Trust | 43.13 |
Note: Change in Total Tonnes from yesterday’s data: 0.31 tonnes were added to the trust.
Silver Trust (SLV)
Profile as of 08/16/2006 | |
Total Net Assets | $1,176,776,709 | Ounces of Silver
in Trust | 96,909,651 |
Shares Outstanding | 9,700,000 | Tonnes of Silver
in Trust | 3,014.2 |
Note: No change in Total Tonnes from yesterday’s data.
The Stocks:
Barrick’s (ABX) comments on NovaGold’s (NG) lawsuit, Royal Gold’s (RGLD) earnings, Bema Gold’s (BGO) “bought deal” financing, Newmont’s (NEM) problems in Uzbekistan, Yamana’s (AUY) plans to acquire Viceroy (VYE.TO), Great Panther’s (GPR.V) extended silver-gold mineralization, and Sterling Mining’s (SRLM.OB) additional mining claims were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Cumberland | CLG +5.15% $4.29 |
2. Claude Resources | CGR +3.20% $1.29 |
3. Almaden Minerals | AAU +1.53% $2.66 |
LOSERS
1. Vista Gold | VGZ -7.11% $10.85 |
2. Bema Gold | BGO -5.93% $5.08 |
3. Great Basin | GBN -5.52% $1.54 |
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:
Gryphon's Borealis Feasibility Study Completed; Company to Advance Gold Resources to Production - More
- August 17, 2006 | Item | E-mail
Majescor Announces $1,500,000 Non-Brokered Private Placement - More
- August 17, 2006 | Item | E-mail
ECU Silver Mining Inc.-Press Release - More
- August 17, 2006 | Item | E-mail
Finlay Minerals Ltd. - Initial Results from Atlas gold-silver zones, B.C. - More
- August 17, 2006 | Item | E-mail
St Andrew Announces Private Placement of Subscription Receipts to Replace Public Offering - More
- August 17, 2006 | Item | E-mail
Battle Mountain's Royalty Portfolio Reports 35 Percent Increase in First Six Months Revenues - More
- August 17, 2006 | Item | E-mail
Cash Minerals Updates Uranium Exploration Program - More
- August 17, 2006 | Item | E-mail
Golden Hope Mines-Additional Financing - More
- August 17, 2006 | Item | E-mail
Kalimantan Gold Oversubscribed Equity Financing Closed - More
- August 17, 2006 | Item | E-mail
Nikos Explorations Ltd. - Private Placement Completed - More
- August 17, 2006 | Item | E-mail
Barrick Says NovaGold Lawsuit Unfounded-Barrick Confident of its 70% Interest in Donlin Creek - "Barrick has reviewed the complaint and denies that it used confidential information belonging to NovaGold as alleged by NovaGold. The lawsuit was filed on the same day as NovaGold issued its Directors' Circular in response to Barrick's offer to acquire the outstanding shares of NovaGold. "The lawsuit appears to be a defensive tactic and should NovaGold actually try to advance the case, Barrick will vigorously defend this proceeding," said Greg Wilkins, President and Chief Executive Officer." More
- August 17, 2006 | Item | E-mail
Silvermet Inc. Completes Nickel/Copper/PGE Soils Survey on its Optioned Muskox Property, Nunavut - More
- August 17, 2006 | Item | E-mail
Cogitore discovers copper-bearing stringer sulphides at the Scott Lake Project - More
- August 17, 2006 | Item | E-mail
Great Panther Extends Silver-Gold Mineralization at Guanajuato Mine - "GREAT PANTHER RESOURCES LIMITED is pleased to announce that the Company's Phase II surface diamond drilling program and extensive underground sampling have extended the limits of the silver-gold mineralization in the Guanajuatito-Encarnacion area of its wholly-owned Guanajuato Mine in Guanajuato, Mexico. Both the drilling and sampling are part of a comprehensive, ongoing exploration program at the Mine aimed at better understanding and delineating the silver-gold mineralization in this world class deposit." More
- August 17, 2006 | Item | E-mail
Golden Eagle Advances Gold Project in Eastern Bolivia - More
- August 17, 2006 | Item | E-mail
Silk Road Resources announces receipt of business license - More
- August 17, 2006 | Item | E-mail
Western Troy Encouraged by July Drilling Results at MacLeod Lake and Receives $484,000 from Quebec - More
- August 17, 2006 | Item | E-mail
Tagish Mandates Macquarie Bank Ltd. to Arrange Feasibility and Project Debt Financing Facilities - More
- August 17, 2006 | Item | E-mail
Temex provides update on Merico Ethel Property - More
- August 17, 2006 | Item | E-mail
Sable Intersects 0.23 oz/t Gold and 11.75 oz/t Silver over 98 feet (30 metres) - More
- August 17, 2006 | Item | E-mail
BacTech Closes Private Placement for $1.1 Million - More
- August 17, 2006 | Item | E-mail
Excellon Resources Inc.: New Platosa Mineral Resources Estimate Over 180,000 Tonnes - More
- August 17, 2006 | Item | E-mail
AXMIN Inc.: Drilling Update-Pouloubou Permit, Central African Republic - More
- August 17, 2006 | Item | E-mail
Majescor's Initial Surface Sampling of Daraina in Madagascar Returns Grades of up to 87 G/T Gold and 75 G/T Silver - More
- August 17, 2006 | Item | E-mail
Sterling Mining Adds to Silver Valley Holdings - "Sterling Mining Company announced today it has leased an additional 520 acres of unpatented mining claims adjacent to its RC claim group in the southeastern portion of the Silver Valley, Idaho, increasing Sterling's total position in the Silver Valley to 18,220 acres through ownership, lease or option agreements. Sterling has also acquired from New Jersey Mining Company their entire interest in the CAMP project located in the Coeur d'Alene Mining District in Idaho." More
- August 17, 2006 | Item | E-mail
Konigsberg Corporation Now Trading on Frankfurt Stock Exchange - More
- August 17, 2006 | Item | E-mail
Alma closes acquisition of Promotora Minera Dialex S.A. de C.V. and first tranche of private placement - More
- August 17, 2006 | Item | E-mail
Copper Fox Starts Environmental Permitting Process - More
- August 17, 2006 | Item | E-mail
Bravo Venture Group Inc.: Woewodski Yields High-Grade Gold Up to 14.3 Ounces/Ton - More
- August 17, 2006 | Item | E-mail
Equitable Mining Corp. Update - More
- August 17, 2006 | Item | E-mail
Admiralty Holding Company Finds Gold - More
- August 17, 2006 | Item | E-mail
Sao Luis Mining, Inc. Announces Completion of Joint Venture Agreement - More
- August 17, 2006 | Item | E-mail
Northwater Resources, Inc. Announces Private Placement - More
- August 17, 2006 | Item | E-mail
BrazMin Announces Additional Mineralized Intercepts from the Sao Jorge Gold Project - More
- August 17, 2006 | Item | E-mail
Petaquilla Minerals Ltd.: Phase I Completed-Molejon Drilling Still Finding Gold - More
- August 17, 2006 | Item | E-mail
AGA Resources, Inc. Changes Name to Greater China Media and Entertainment Corporation - More
- August 17, 2006 | Item | E-mail
News Release Update: Bema Grants Underwriters Over Allotment Option - "Bema Gold Corporation announces that in addition to the 18.4 million unit financing announced earlier this morning the Company has also granted the Underwriters an "over-allotment" option to purchase up to an additional 2,760,000 units at the Offering Price exercisable within 30 days after the Closing of the Offering. The units are priced at $6.25 per unit." More
- August 17, 2006 | Item | E-mail
Uzbek Authorities Annul British Contract - "Uzbek President Islam Karimov issued a decree last week canceling Oxus' exclusive license for tapping into the Khandiza deposit in southeastern Surkhandarya region and handing it over to the state-owned Almalyk Mining and Metallurgical Plant, a government-run Web site said late Wednesday. It did not give the exact date or reasons for the decree." More
- August 17, 2006 | Item | E-mail
Bema Enters "Bought Deal" Financing Agreement for CDN$ 115 Million - "Bema Gold Corporation is pleased to announce that it has entered into an agreement for a "bought deal" financing with a syndicate of Canadian underwriters which have agreed to purchase 18.4 million units of Bema at a purchase price of $6.25 per unit, for aggregate gross proceeds in the amount of $115 million." More
- August 17, 2006 | Item | E-mail
Royal Gold Announces Year-End Results Generating Record Revenues and Free Cash Flow - "ROYAL GOLD, INC. today announced record revenues of $28.4 million for fiscal 2006 (ended June 30), a 12% increase over revenues of $25.3 million in fiscal 2005. The Company reported net income of $11.4 million, or $0.50 per basic share, for fiscal 2006 compared to net income of $11.5 million, or $0.55 per basic share, for fiscal 2005. In fiscal 2006, earnings were impacted by higher non-cash stock compensation expenses of $0.08 per share, net of tax." More
- August 17, 2006 | Item | E-mail
Yamana to Acquire Viceroy Solidifying its Position as Leading Intermediate Gold Producer - "Yamana Gold Inc. and Viceroy Exploration Ltd. today announced that Yamana has agreed to make a take-over bid to acquire all of the outstanding common shares of Viceroy in exchange for Yamana common shares. Yamana has agreed to offer Viceroy shareholders 0.97 of a Yamana common share for each Viceroy common share held. Based on today's respective TSX closing prices of C$11.20 for Yamana and C$8.65 for Viceroy, the transaction value is C$10.86 per Viceroy common share, representing a premium of 25.5%." More
- August 17, 2006 | Item | E-mail
- Chris Mullen, Gold Seeker Report
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-- Posted Thursday, 17 August 2006 | Digg This Article
Gold Seeker Closing Report – Gold & Silver Fall Over 2%
