-- Posted Thursday, 28 September 2006 | Digg This Article
| Close | Gain/Loss |
Gold | $605.10 | +$7.50 |
Silver | $11.61 | +$0.04 |
XAU | 129.88 | -0.61% |
HUI | 303.34 | -0.76% |
GDM | 976.87 | -0.81% |
JSE Gold | 2851.44 | +0.22% |
USD | 85.76 | +0.08 |
Euro | 127.00 | -0.04 |
Yen | 84.82 | -0.25 |
Oil | $62.76 | -$0.20 |
10-Year | 4.626% | +0.032 |
T-Bond | 112.40625 | -0.34375 |
Dow | 11718.45 | +0.25% |
Nasdaq | 2270.02 | +0.29% |
S&P | 1339.15 | +0.19% |
The Metals:
Gold immediately rose over $600 in access trade yesterday and traded between $600 and $605 in Asia, London, and most of trade in New York before it rose above $605 in late morning trade and remained near its highs in afternoon trade to close with a gain of 1.26%. Silver rose to about $11.75 in late Asian trade before it fell off a bit in Asia and dropped to as low as $11.47 in midmorning New York trade, but it then rallied a bit into the close and ended with a gain of 0.35%.
Euro gold rose near €475, platinum gained $14 to $1,144, palladium gained $4 to $319, and copper fell over 5 cents to under $3.40.
Gold and silver equities traded on either side of unchanged in a tight range and found about 1% gains by late morning, but they then fell off into the close and ended near their lows with almost 1% losses on the day.
The Economy:
Report | For | Reading | Expected | Previous |
GDP-Final | Q2 | 2.6% | 2.9% | 2.9% |
Chain Deflator | Q2 | 3.3% | 3.3% | 3.3% |
Initial Claims | 9/23 | 316K | 315K | 322K |
Help-Wanted Index | Aug | 31 | 32 | 32 |
Tomorrow at 8:30AM EST brings Personal Income for August expected at 0.3% and Personal Spending expected at 0.2%. At 9:50 is the revised reading for Michigan Sentiment for September expected at 85.0 and at 10AM is Chicago PMI for September expected at 56.0.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil seesawed on varying reports over whether OPEC will cut production or not before it ultimately ended slightly lower on the day.
The U.S. dollar index found slight gains despite poor economic data and a euro that was strong early on hawkish ECB talk.
Treasuries fell despite weak economic data as traders took profits from an overbought market.
The Dow, Nasdaq, and S&P rose at the open before they fell in late morning trade, but all three indices then rose throughout afternoon trade and ended with decent gains. The Dow ended less than 5 points from a new all-time closing high and did not eclipse its record intraday high of roughly 11,750.
Among the big names making news in the market today were HP, ESPN, Topps, Neiman Marcus, Tracinda and GM, American Greetings, and GM and Renault.
The Commentary:
“The trading action the past many months around $600 gold is fascinating. First gold gapped above $600. Three times it came back to check that gap, only to reject going below that level on the downside. The fourth time down, it gapped BELOW the long held gap, thus leaving this long standing gaping hole. Today, gold went up to that level once more, was shot right down and then roared back up in choppy action to challenge $600 once again…
October gold
http://futures.tradingcharts.com/chart/GD/A6
Not sure what it all means from a technical level except to point out that it is a powerful area of contention. Since I am such a rampant bull, my take is that once gold closes above the $605 level, the price will have done all it needs to do on the downside to launch a rise to new high ground.” - From yesterday’s Midas report by Bill Murphy of LemetropoleCafe.com
“December Gold finished up 7.6 at 610.9, 1.5 off the high and 5.4 up from the low.
December Silver closed up 0.035 at 11.735. This was 0.12 up from the low and 0.065 off the high.
Gold prices fluctuated aggressively on Thursday but did manage to rise to new highs for the day, after the flow of patently weak US economic numbers. In fact, the Press was reporting evidence of renewed physical demand during the session and that seemed to distract the market away from the economy and back toward potentially supportive internal supply and demand developments. With oil prices showing signs of strength again and a Fed member cautioning the market in its discounting of inflation readings, it would seem that a number of flight to quality elements were coming out in favor of the bull camp. While the Dollar was mostly higher and managed a new high for move, the gold market didn't seem to be that interested in the negative ramifications of a rising Dollar. While the US numbers might have been soft, one almost gets the sense that the market is assuming a better economy regardless of recent evidence to the contrary.
The silver market didn't regain the 200 day moving average like the gold market but the market did climb above the 100 day moving average and that could increase the buying interest of the funds and the specs. Surprisingly a hard reversal in the copper market and the patently negative US economic numbers didn't discourage the market from behaving positively on Thursday but in general the bull camp seemed to have the edge despite the choppy afternoon action. News of a new ETF fund at the London Stock exchange might stimulate renewed investment talk in silver and that could be important considering the slack macro economic news floated during the session Thursday.” - The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
You're invited to GATA's reception during the New Orleans Investment Conference
Treasury irked that somebody else may be rigging markets
The Statistics:
As of close of business: 09/27/2006
Gold Warehouse Stocks: | 7,889,420 | - 24,851 |
Silver Warehouse Stocks: | 105,261,045 | + 442,214 |
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$ 7,373m |
LSE (London Stock Exchange) AND Euronext Paris | Gold Bullion Securities | 78.16 | 2,512,880 | US$ 1,514m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 9.95 | 319,508 | US$ 193m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 9.89 | 317,927 | US$ 188m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU)
Profile as of 09/27/2006 | |
Total Net Assets | $827,686,032 | 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 09/27/2006 | |
Total Net Assets | $1,207,622,703 | 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:
Rob McEwen’s voiced support for a shareholder vote over Goldcorp’s (GG) purchase of Glamis Gold (GLG), Arizona Star’s (AZS) C$6,000,000 financing, Tanzanian Royalty’s (TRE) repurchased rights to the Kigosi property, and Banro’s (BAA) increase in gold resources were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Banro Corp | BAA +8.37% $8.63 |
2. Solitario | XPL +4.81% $3.27 |
3. Apex Silver | SIL+2.67% $16.53 |
LOSERS
1. Nevsun Resources | NSU -4.89% $2.72 |
2. Mines Management | MGN -4.37% $5.69 |
3. Crystallex | KRY -3.99% $2.89 |
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:
Carmax Explorations Ltd.: Assays Pending - More
- September 28, 2006 | Item | E-mail
Copper Fox Metals Inc. announces third quarter results - More
- September 28, 2006 | Item | E-mail
Sea Green Capital Corp. Seeks to Extend Warrants - More
- September 28, 2006 | Item | E-mail
Taranis Completes Geologic Due Diligence At Thor Property, British Columbia - More
- September 28, 2006 | Item | E-mail
Plexmar Acquires Escondida Project, Ecuador - More
- September 28, 2006 | Item | E-mail
Golden Phoenix Adds Mining Professionals Corby Anderson and Kent Aveson to Its Board of Directors - More
- September 28, 2006 | Item | E-mail
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Gold Seeker Closing Report – Gold & Silver Gain for the 7th Straight Session