-- Posted Wednesday, 27 September 2006 | Digg This Article
| Close | Gain/Loss |
Gold | $597.60 | +$6.50 |
Silver | $11.57 | +$0.21 |
XAU | 130.68 | +1.51% |
HUI | 305.67 | +1.89% |
GDM | 984.89 | +1.98% |
JSE Gold | 2844.24 | +0.67% |
USD | 85.68 | -0.04 |
Euro | 127.04 | +0.13 |
Yen | 85.07 | -0.29 |
Oil | $62.96 | +$1.95 |
10-Year | 4.594% | +0.009 |
T-Bond | 112.75 | -0.125 |
Dow | 11689.24 | +0.17% |
Nasdaq | 2263.39 | +0.09% |
S&P | 1336.59 | +0.02% |
The Metals:
Gold rose slightly in Asia and traded as much as $5 higher in London and early New York trade before it fell back off in late morning trade to as low as $590.60, but it then rallied into the close in the last 2 hours of trade and ended near its highs of the session with a gain of 1.10%. Silver rose over 20 cents in London before it fell to as low as $11.42 in late morning New York trade, but it also rallied into the close and ended with a gain of 1.85%. At the time of writing, both gold and silver are trading roughly 0.5% higher from the close in after hours trade.
Euro gold rose above €470, platinum gained $6 to $1,130, palladium gained $1 to $315, and copper remained at about $3.45.
Gold and silver equities opened over 1% higher before they fell to find about 1% losses by late morning, but they then rallied for the rest of trade and ended with nearly 2% gains.
Today was the last day of the Denver Gold Forum (http://www.denvergold.org/).
Although it was an invitation only event, most of the presentations are available by webcast here: http://events.onlinebroadcasting.com/denvergold/092506/index.php?mode=1&sel_date=3
The Economy:
Report | For | Reading | Expected | Previous |
Durable Orders | Aug | -0.5% | 0.4% | -2.7% |
New Home Sales | Aug | 1050K | 1040K | 1009K |
Also making economic news today was that the “Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity <USMGM=ECI>, which includes both refinancing and purchasing loans, for the week ended September 22 fell 4.9 percent to 566.6 from the previous week's 595.8, its highest level since April.”
Tomorrow at 8:30AM EST brings the final reading for 2nd quarter GDP expected at 2.9% with the Chain Deflator expected at 3.3%. Initial Jobless Claims are expected at 315,000. At 10AM is the Help-Wanted Index expected at 32.
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The Markets:
Charts Courtesy of http://finance.yahoo.com/
Inventory reports showed crude inventories fell 100,000 barrels, gasoline inventories rose 6.3 million barrels, and distillates rose 2.6 million barrels. Crude inventories fell less than expected and gasoline inventories rose more than expected, so energy prices initially fell as a result, but renewed worries that OPEC may cut production pushed prices higher in afternoon trade and that resulted in oil gaining nearly $2 by the close.
The U.S. dollar index traded in a tight range on either side of unchanged on mixed economic data.
Treasuries initially rose following the poor Durable Orders report, but they then fell off and ended lower following the New Home Sales report that came in better than expected.
The Dow, Nasdaq, and S&P rose in morning trade and the Dow came within about 3 points of its record closing high before all three indices fell off in late afternoon trade to find slight losses on the day, but all three indices than rallied back into the close and ended a bit higher on the day.
Among the big names making news in the market today were Renault-Nissan & GM, Ford, EMI & Warner, McCormick, Nymex and Amaranth, and General Electric & Crow Family Real Estate.
The Commentary:
“Gold was very firm overseas with the Fixes coming in at $591.25 and $591. The Gold Cartel forces would have none of it and down we went coming into the Comex opening. However, an extremely steady cash market brought prices right back up. The key to moving sharply higher is for Dec gold, the active trading month, to take out $600.
You GATA love the way gold and silver rebounded the past two trading sessions. There is just too much demand down here ... especially below $590 and $11.
Silver would have none of the gold selloff, staying positive while gold fell. $12 here we come.
Both gold and silver have closed higher five days in a row.” - From yesterday’s Midas report by Bill Murphy of LemetropoleCafe.com
Make that 6 days in a row, with December gold closing at over $603 today.
“December Gold finished up 6.2 at 603.3, 1.5 off the high and 6.3 up from the low.
December Silver closed up 0.205 at 11.7. This was 0.16 up from the low and 0.12 off the high.
In retrospect the gold market is generally viewed as being out from under the weight of the Central Bank Sales threat, and that in conjunction with a little less overtly negative broad market sentiment in the commodities probably allowed the recent short covering in gold. One might even suggest that the gold market saw the best of two worlds from the scheduled US economic numbers early Wednesday, as the new home sales reading was positive but yet that didn't seem to strengthen the Dollar and in turn apply direct pressure to gold prices. According to a major Brokerage firm part of the September declines in gold prices were the result of last minute Central bank sales and according to a number of sources the passing of the CBGA (Central Bank Gold Sales Agreement) deadline, the gold market might have the capacity to rally. However, just because one annual allotment period has ended doesn't mean that Central Banks can't offer up sales in the new sale period. It was noted that the slide in oil prices in the wake of the weekly oil inventory reports, seemed to pull back on gold prices, which means that a portion of the deflationary selling impetus continues to operate in the gold market.
With a spike up early thrust the silver market seemed to be catching a macro economic lift on Wednesday morning. However, as in the gold market, it was clear that the reversal of oil prices seemed to undermine the silver market just ahead of mid session. On the other hand, the outlook for physical commodities does seem to be better than was present in early September and there is it is possible that a resumption of the downside in energy prices might actually begin to benefit the physically demand driven commodity markets like silver and gold.” - The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Enron CFO says banks were part of crooked schemes
Central bank rush to dishoard pushed gold down for two months ...
Many Americans suspect gas price decline is political market rigging
China has enough dollars but maybe not enough oil and gold
Ted Butler: Hedge fund's collapse proves concentration in commodity markets
The Statistics:
As of close of business: 09/26/2006
Gold Warehouse Stocks: | 7,914,271 | - |
Silver Warehouse Stocks: | 104,818,831 | + 576,910 |
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$ 7,339m |
LSE (London Stock Exchange) AND Euronext Paris | Gold Bullion Securities | 78.16 | 2,512,908 | US$ 1,513m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 9.95 | 319,511 | US$ 193m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 9.89 | 317,931 | US$ 187m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU)
Profile as of 09/26/2006 | |
Total Net Assets | $819,239,653 | 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 yesterday’s data.
Silver Trust (SLV)
Profile as of 09/26/2006 | |
Total Net Assets | $1,158,606,457 | 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 yesterday’s data.
The Stocks:
Goldcorp’s (GG) response to Robert McEwen, the Denver Gold Group's executive director’s disappointment with McEwen, Buenaventura’s (BVN) belief that the worst of the protests in Peru are over, Harmony’s (HMY) plans to cut costs, U.S. Energy’s (USEG) sale of their minority ownership interest in Pinnacle Gas Resources and settled litigation with Phelps Dodge, IAMGOLD’s (IAG) increased indicated resources at Quimsacocha, Newmont’s (NEM) operations outlook and diamond investment, Silver Wheaton’s (SLW) received right of first refusal on future silver production from the Penasquito Project from Goldcorp, and Silver Standard’s (SSRI) drill results were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Orezone | OZN+12.03% $1.49 |
2. Northgate | NXG +9.27% $3.30 |
3. Minco Mining | MMK +7.91% $1.50 |
LOSERS
1. Newmont | NEM-1.98% $43.14 |
2. Kimber | KBX -1.00% $1.99 |
3. Almaden | AAU -0.89% $2.23 |
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:
Goldcorp Responds to Robert McEwen - "Goldcorp Inc. today responded to the press release issued by McEwen Capital on September 25, 2006. Shareholders should be aware that Goldcorp has pursued the transaction with Glamis in compliance with all applicable corporate and securities laws as well as the rules of the TSX and the NYSE. In particular, Goldcorp has complied with all applicable provisions of the Business Corporations Act (Ontario) (the "OBCA") and it is simply without legal merit for Mr. McEwen to suggest otherwise." More
- September 27, 2006 | Item | E-mail
Great West Gold, Inc. -- Restructuring Of Company; Company Outlines the Salient Points of its Restructure - More
- September 27, 2006 | Item | E-mail
Newmont sees lower gold sales in 2006, 2007 - "Newmont Mining Corp. on Wednesday cut its forecast for gold sales this year and next partly due to loss of business in Uzbekistan and lower output in Ghana and Peru. But sales will recover in 2008 and 2009 when projects in the United States, Ghana and Australia reach full production, said the Denver-based company, whose stock slipped more than 3 percent after the announcement." More
- September 27, 2006 | Item | E-mail
Bellhaven Ventures, Inc. Shareholder Update & Progress Report - More
- September 27, 2006 | Item | E-mail
International Tower Hill Mines Ltd.: 2006 Annual Meeting Results - More
- September 27, 2006 |
Gold Seeker Closing Report – Gold & Silver Rise Over 1%