-- Posted Monday, 25 September 2006 | Digg This Article
| Close | Gain/Loss |
Gold | $590.20 | +$1.00 |
Silver | $11.17 | +$0.02 |
XAU | 124.65 | -0.92% |
HUI | 291.25 | -1.13% |
GDM | 936.92 | -1.16% |
JSE Gold | 2772.10 | UNCH |
USD | 85.38 | +0.21 |
Euro | 127.48 | -0.45 |
Yen | 85.90 | +0.05 |
Oil | $61.45 | +$0.90 |
10-Year | 4.555% | -0.042 |
T-Bond | 110.84375 | +0.125 |
Dow | 11575.81 | +0.59% |
Nasdaq | 2249.07 | +1.36% |
S&P | 1326.37 | +0.88% |
The Metals:
Gold dropped to about $585 in early Asian trade, rose to over $590 in late Asian trade, fell a few dollars in London, and dropped to as low as $581.80 in morning New York trade, but it then rallied fiercely higher in afternoon trade and ended near its highs with a small gain. Silver followed a similar rollercoaster ride in a range of about $11.00 to $11.20 and also ended near its highs with a slight gain.
Euro gold rose above €460, platinum lost $14 to $1,124, palladium lost $4 to $312, and copper rebounded form early losses to end near unchanged at about $3.43.
Gold and silver equities fell about 3% in morning trade, but they then rebounded into the close and ended with losses of about 1%.
The Economy:
Report | For | Reading | Expected | Previous |
Existing Home Sales | Aug | 6.30M | 6.20M | 6.33M |
Existing Home Sales did not fall as much as some expected, but median prices fell for the first time in 11 years and the number of unsold homes on the market rose 1.5%.
Tomorrow at 10AM EST is the Consumer Confidence report for September expected at 103.0.
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The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil fell under $60 to a new 6 month low in early trade on news that BP’s Prudhoe Bay may return to full production soon, but energy prices rose in afternoon trade and ended mostly higher on short covering and speculation that OPEC may cut production soon.
The U.S. dollar index rose slightly as housing data was not as bad as some expected, but gains were limited ahead of a busy economic week.
Treasuries rose on concerns that a poor housing market may slow the economy more than expected and possibly cause the fed to cut interest rates in the coming months. The yield on the 10-year fell to a seven month low.
The Dow, Nasdaq, and S&P rose and fell in somewhat volatile trade as funds adjusted their positions in this last week of the third quarter, but all three indices ultimately rose to end with nice gains after some comments by Dallas Federal Reserve President Richard Fisher suggested inflation would be dampened by a slowing economy.
Among the big names making news in the market today were Chiquita, Revlon, the Tobacco companies, GM, Ethan Allen, Amaranth, Walgreen, Goldman Sachs, Merrill Lynch, and Fidelity.
The Commentary:
“The morning fix in London today was at $589, clearly showing the price the physical market likes and is prepared to pay. The question being asked is, are the funds, who see gold tightly linked to the oil price, likely to keep pressing gold down? They did today in the first part of New York's day and pressed the price to the lower $580's, but towards the end of the day it seems their efforts were overwhelmed by the physical demand and the price responded by going back to the mornings level.
We are receiving reports that Central Bank sales last week and this are down to the previously seen 1 - 2 tonne levels again down from the 33 tonne sales the week before but will confirm that in the next day or so. This has softened the selling pressure for sure.
It seems as though the funds are becoming spent and their pressure unlikely to dominate the market from hereon, as physical demand, focusing on completely different factors such as seasonal demand and lower prices comes in strong. This week should see the battle resolved, but keep your eyes on the basic fundamentals, the tide of the market.” - Julian D.W. Phillips, www.goldforecaster.com
“December Gold finished up 0.5 at 595.9, 1.1 off the high and 8.4 up from the low.
December Silver closed up 0.015 at 11.325. This was 0.195 up from the low and 0.045 off the high.
The gold market managed to reject an initial bout of selling to put a partially positive face on the gold market into the afternoon trade on Monday. It was not surprising to see the gold dip in the face of early weakness in the oil sector and in the face of slack US economic readings. In fact, the Fed Fisher almost seemed to hint at the potential for severe slowing in the US economy because of the slowing in the US housing sector and that was justifiably un-nerving to the bull camp. However, with a significant recovery in the oil market into the afternoon action and the US equity market managing a similar recovery run, the patently deflationary environment present at the begging of the session was reversed. In the end, the trade seemed to be the most interested in the recovery in the oil market, as that rally was sharp enough to hint at flight to quality or uncertainty buying.
After early weakness the silver market also managed an impressive early afternoon recovery bounce and at times the market was back to within close proximity to the highest price level in two weeks. With suspect that silver was helped to the bounce by the recovery in the copper market and was also lifted indirectly by the recovery in oil and equity prices. In the end, the silver market continues to act like a physical commodity market, instead of a financial or flight to quality precious metal. In fact, with the prevailing trend toward soft US economic numbers and ongoing concern for the US economy, the silver market could have to constantly fight against the commodity liquidation mode.” - The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Bank of Tokyo sees faster advance of China's yuan
Another bullion fund, Central Gold-Trust, launches on Amex
Goldman's revision of commodity index caused plunge in gasoline prices
Canada's ROB-TV interviews market analyst Peter Grandich
MineWeb has two reports on Silver Summit in Coeur d'Alene
Dubai's AMEInfo: Buy gold to hold, not to trade
Resource Investor: Central banks quicken pace of gold sales
James Turk: 8 things everyone should know about gold
The Statistics:
As of close of business: 09/22/2006
Gold Warehouse Stocks: | 7,984,666 | -40,208 |
Silver Warehouse Stocks: | 103,142,743 | +295,472 |
Global Gold ETF Holdings
[WGC Sponsored ETF’s]
| Product name | Total Tonnes | Total Ounces | Total Value |
New York Stock Exchange (NYSE) | Streettracks Gold Shares | 386.38 | 12,422,498 | US$ 7,315m |
LSE (London Stock Exchange) AND Euronext Paris | Gold Bullion Securities | 78.16 | 2,512,963 | US$ 1,481m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 9.90 | 318,218 | US$ 188m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 9.89 | 317,948 | US$ 184m |
Note: Change in Total Tonnes from last Wednesday’s reported data: The NYSE subtracted 4.32 tonnes and the LSE subtracted 0.01 tonnes.
COMEX Gold Trust (IAU)
Profile as of 09/22/2006 | |
Total Net Assets | $816,780,441 | Ounces of Gold
in Trust | 1,386,124.118 |
Shares Outstanding | 13,950,000 | Tonnes of Gold
in Trust | 43.11 |
Note: No change in Total Tonnes from last Wednesday’s reported data.
Silver Trust (SLV)
Profile as of 09/22/2006 | |
Total Net Assets | $1,176,405,610 | Ounces of Silver
in Trust | 104,323,655 |
Shares Outstanding | 10,450,000 | Tonnes of Silver
in Trust | 3,244.8 |
Note: No change in Total Tonnes from last Wednesday’s reported data.
The Stocks:
Nevsun’s (NSU) deposit in Eritrea, Great Basin’s (GBN) addition to the GDM index, Newmont’s (NEM) award, Solitario’s (XPL) agreement with Newmont, Pacific Rim’s (PMU) acquired gold project, Newmont’s joint venture with Shore Gold, Cumberland’s (CLG) production decision, Golden Star’s (GSS) management changes, NovaGold’s (NG) Donlin Creek study and waived shareholder rights plan, Entree Gold’s (EGI) plans to ring the opening bell at the Toronto Stock Exchange, Barrick’s (ABX) increased stake in Pioneer, Esperanza’s (EPZ.V drilling, Apex Silver’s (SIL) alliance with Sumitomo Corporation, and Silver Standard’s (SSRI) drill resutls were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Apex Silver | SIL +2.83% $15.26 |
2. Solitario | XPL +2.33% $3.07 |
3. US Energy | USEG+2.03% $3.51 |
LOSERS
1. New Gold | NGD -8.80% $6.94 |
2. Cumberland | CLG -8.51% $5.05 |
3. Northern Dynasty | NAK -6.44% $5.96 |
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:
Rolling Rock Resources Corporation: New Zone Discovered Assaying Up to 45.54g/t Au Over 0.5 Metres - More
- September 25, 2006 | Item | E-mail
Mercator to Hold Conference Call to Discuss ASARCO LLC's Mission South Mill Litigation - More
- September 25, 2006 | Item | E-mail
NovaGold drops poison pill, slams Barrick bid - "NovaGold Resources Inc. said on Monday its board has waived the company's shareholder rights plan, leaving the door open for its shareholders to consider what it called an "inadequate hostile takeover bid" by Barrick Gold Corp. Vancouver, British Columbia-based NovaGold said "a significant number" of its major shareholders have indicated they will not tender shares to Barrick's $1.3 billion, or $14.50 a share, offer." More
- September 25, 2006 | Item | E-mail
Canarc Resource Corp.: Drilling Intersects 23.1 gpt Gold Over 16.5 m at New Polaris Project - More
- September 25, 2006 | Item | E-mail
Uranium One Reports Exploration Results at the Dominion Uranium Project - More
- September 25, 2006 | Item | E-mail
AURUS Concludes US$10 Million Offering to NewConsult Ltd., a Swiss Private Equity Fund - More
- September 25, 2006 | Item | E-mail
Gold Seeker Closing Report – Gold & Silver Rally Late & End Slightly Higher