Gold quickly rose over $600 in Asia and remained a few dollars higher in London before it extended its gains in early New York to trade about $5 higher on the day, but it then fell throughout most of the rest of trade and ended near its lows with a small loss.Silver traded over 30 cents higher in early New York trade before it also fell off into the close, but it still ended with a decent gain of 0.79%.
Euro gold fell under €470, platinum gained $6 to $1,140, palladium lost $2 to $308, and copper fell a couple of cents to about $3.41.
Gold and silver equities rose about 2% at the open, but they then steadily fell off throughout the rest of trade and ended about 0.5% higher.
The Economy:
Report
For
Reading
Expected
Previous
Construction Spending
Aug
0.3%
-0.3%
-1.0%
ISM Index
Sep
52.9
53.5
54.5
Pending Home Sales for August were also released today and came in stronger than expected as they rose 4.3% from 105.6 to 110.1.There are no major economic reports due out tomorrow.Most are waiting for comments from both Kohn and Bernanke on Wednesday.Bernanke is expected to make a lunch time speech on “Reflections on the Yield Curve and Monetary Policy” and Kohn is expected to specifically talk about the economic outlook later that night.
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Oil fell on ample supplies as cuts in production by Nigeria and Venezuela only take off about 170,000 barrels of oil per day, a small number when compared to Saudi Arabia’s daily production of 9.1 million barrels.
The U.S. dollar index fell and treasuries rose on the poor ISM report that reignited talks of not only another pause in interest rate hikes by the fed, but possibly even a cut in interest rates soon.
The Dow, Nasdaq, and S&P rose to find slight gains by early afternoon as oil sold off markedly, but all three indices then sold off sharply just before 2PM EST and remained mostly slightly lower into the close.The Nasdaq was especially weak and ended with a loss of nearly 1%.
Among the big names making news in the market today were Harrah’s, Morgan Stanley, AWG, the online gaming stocks, and Gilead and Myogen.
The Commentary:
“December Gold finished down 0.9 at 603.3, 5.9 off the high and 1.3 up from the low.
December Silver closed up 0.1 at 11.64. This was 0.06 up from the low and 0.195 off the high.
While some in the trade have wanted to discount the positive correlation between gold and oil prices that correlation seemed to click back into position in the action Monday. In fact, with the ISM manufacturing employment and Price readings soft and the oil markets under significant selling pressure, one might suggest that the deflationary psychology present at the beginning of September was creeping back into the equation again. As mentioned in the mid day coverage, reports of a sharp 46% rise in Turkish Gold imports in September should provide the market a back drop of support, especially since the total import figure was significant at 26.6 tons!
For a while the silver market held up against the liquidation effort in gold, but into mid session Monday morning, the December silver contract managed to fall almost 20 cents away from its early highs. Apparently the silver market was in a position to benefit from the idea that falling oil prices would increase the odds of a revival in the economy. In fact, with copper prices fading in the face of a negative surplus forecast and the scheduled US numbers somewhat soft the influence, the physical commodity market aspect for silver wasn't entirely supportive for silver. One might have expected news of an increase in silver holdings by a major Silver ETF, would have lent some support to silver prices, as the ETF indicated that they were looking to boost silver ownership by as much as 48 million ounces. With rising investment ownership in silver we suspect that the long term talk of tightness will remain a fixture in the marketplace and that should generally serve to support prices.” - The Hightower Report,Futures Analysis and Forecasting
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU)
Profile as of 09/29/2006
Total Net Assets
$829,469,735
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 09/29/2006
Total Net Assets
$1,204,459,794
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:
Take over rumors, Cumberland’s (CLG) secured gold loan facility for at least C$254 million, Cambior’s (CBJ) shareholder vote date set for the proposed arrangement with IAMGOLD (IAG), NovaGold’s (NG) support for the Galore Creek project from British Columbia, Newmont’s (NEM) venture declared bankrupt in Uzbekistan, Anglogold Ashanti’s (AU) Employee Share Ownership Plan and BEE Transaction, Minco Silver’s (MSV.TO) drill results, and Aura Silver’s (AUU.V) agreement with Sterling Mining (SRLM.OB) to explore the Pine Creek Area Properties were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1.Cardero
CDY +4.64% $1.58
2.Harmony
HMY+3.94% $13.44
3.Gold Fields
GFI +3.81% $18.52
LOSERS
1.Mines MGMT
MGN-6.25% $5.25
2.Richmont
RIC -4.88% $2.34
3.Cumberland
CLG -4.25% $5.06
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:
Anglo lifts S.Africa bourse on fresh takeover rumour - "Diversified mining company Anglo American jumped 4 percent to lead South African shares higher on Monday on speculation of a takeover by a rival, while bank and retail shares wilted on interest rate jitters. The resource-heavy bourse was buoyed as miners added gains on a day of thin trade -- in which volumes were about half their usual strength -- as firmer metal prices gave some impetus." More - October 02, 2006 | Item | E-mail
Dundee Precious Acquires Further Shares of Goldbelt Resources Ltd. - More - October 02, 2006 | Item | E-mail
Copper Fox Metals Inc. Announces $500,000 Flow-Through Financing - More - October 02, 2006 | Item | E-mail
Sterling Mining's Pine Creek Properties to be Explored by Aura Silver - "Sterling Mining Company has entered into an agreement with Aura Silver Resources to explore Sterling's Pine Creek properties. Sterling's Pine Creek claims lie adjacent to the New Bunker Hill Mine property." More - October 02, 2006 | Item | E-mail
Prudential Analyst Raises Gold Estimates - "A Prudential analyst on Monday provided rosier reserve estimates for a handful of gold companies following an industry gold show last week. Meanwhile, gold prices settled over $600, while shares of gold producers rose." More - October 02, 2006 | Item | E-mail
Emgold's Golden Bear Ceramics Pilot Plant Up-Date - More - October 02, 2006 | Item | E-mail
Guyana Goldfields Inc.: Aurora Drilling Update - More - October 02, 2006 | Item | E-mail
International Wayside Gold Mines Ltd.: Mine-Pit Survey Underway and Drilling Update - More - October 02, 2006 | Item | E-mail
Mineralization Extended in Rio Gold Zone - Bissett Mining Camp - More - October 02, 2006 | Item | E-mail
Bison Plans Further Exploration in Bissett Gold Camp - More - October 02, 2006 | Item | E-mail
Follow Up Drilling Commences on Birim's Chert Ridge Gold Prospect, Ghana - More - October 02, 2006 | Item | E-mail
Golden Phoenix and Win-Eldrich Complete Formation of Ashdown Operating Company - More - October 02, 2006 | Item | E-mail
Minco Silver Provides Additional Assay Results on Its Fuwan Silver Property - "Out of 34 holes (total 8,500 meters) drilled so far this year on the Fuwan deposit, the Company has released assay results for the first 17 holes (news releases dated March 3, May 10, and August 15). Assays results for additional six holes are provided in the table below, highlighted by drill hole FW0026 which returned 10.08 meters grading 295 g/t silver, 0.47 g/t gold, 0.20% lead, and 0.67% zinc. Assay results for the remaining 11 drill holes are pending." More - October 02, 2006 | Item | E-mail
Rocher DeBoule Minerals Corp. Commences Trading - More - October 02, 2006 | Item | E-mail
Armistice to release financial statements for year end 2006 - More - October 02, 2006 | Item | E-mail
Tagish Issues Financial Statements for the Period ended July 31, 2006 - More - October 02, 2006 | Item | E-mail
North Atlantic Resources Ltd.: Additional Delineation Drilling Results From the FT Gold Project, Republic of Mali - More - October 02, 2006 | Item | E-mail
Gossan Completes First Tranche of Private Placement - More - October 02, 2006 | Item | E-mail
MGM Mineral Resources Announces Corporate Update Based on Recent Meetings in Colombia - More - October 02, 2006 | Item | E-mail
Condo Completes Escudo IP Survey; Drill Targets Finalized - More - October 02, 2006 | Item | E-mail
El Alacran Gold Mine Corp. Negotiating Two Producing Properties - More - October 02, 2006 | Item | E-mail
Finlay Minerals Ltd. - Au, Ag Discovery Hole Drilled at the Atlas East Zone, Pil North Property, B.C. - More - October 02, 2006 | Item | E-mail
Uranium One Files Amended Audit Committee Charter - More - October 02, 2006 | Item | E-mail
Western Troy Announces Grand Council of The Crees Support for The Otish Mountain Road Project - More - October 02, 2006 | Item | E-mail
Aura Silver Enters into Agreement with Sterling Mining to Explore Pine Creek Area Properties - "Aura Silver Resources Inc. announced today that the Company has entered into an agreement with Sterling Mining Company to explore the Pine Creek Area Properties, which are part of Sterling's extensive Silver Valley land holdings situated in the famed Coeur d'Alene Mining District, Idaho, USA ." More - October 02, 2006 | Item | E-mail
Gold Summit Elects Martin Quick as Director; Announces Equity Financing - More - October 02, 2006 | Item | E-mail
Bellhaven Ventures Highlights Molybdenum from the Cerro Chorcha Porphyry Copper Deposit - More - October 02, 2006 | Item | E-mail
Liaoning Gold Project, China - First Drill Hole Intersects 3.03 g/t Gold, 62.9 g/t Silver over 32.88 Metres - More - October 02, 2006 | Item | E-mail
Tournigan Receives Positive Results From Uranium Properties in Arizona - More - October 02, 2006 | Item | E-mail
Romarco Receives Final TSXV Approval for Private Placement - More - October 02, 2006 | Item | E-mail
Admiralty Holding Company Completes Financing - More - October 02, 2006 | Item | E-mail
Sacre-Coeur Minerals Accelerating Programs in Guyana With Key Staff Additions - More - October 02, 2006 | Item | E-mail
Andina Approves US$10 Million Phase III Exploration Program for Volcan Gold Project - More - October 02, 2006 | Item | E-mail
Exeter Resource Corporation: Cuello Zone Drilling Extends La Cabeza Mineralization - More - October 02, 2006 | Item | E-mail
New Order Right for Leeuwkop - More - October 02, 2006 | Item | E-mail
Second Mine Development at Tambis Banaghilig Progressing Rapidly - More - October 02, 2006 | Item | E-mail
Cumberland Secures at Least Cdn$254 Million for its Gold Loan Facility to Develop Meadowbank Gold Project - "The 420,000 ounce gold loan facility represents approximately 15% of Meadowbank's current open pit gold reserves of 2.9 million ounces(1). Meadowbank, host to Canada's largest pure gold open pit gold reserves, is forecast to produce an average of 330,000 ounces of gold per year over an eight year mine life." More - October 02, 2006 | Item | E-mail
Cambior Sets Shareholder Vote for November 7, 2006 Record Date Set for October 3, 2006 - "Cambior announces that the Quebec Superior Court has issued an interim order ordering the holding of a special general meeting of Cambior shareholders . The definitive management information circular and related proxy form and letter of transmittal are expected to be mailed to Cambior's security holders before the end of the week." More - October 02, 2006 | Item | E-mail
British Columbia Government Review Confirms Pioneer Grace Property Condemned and Supports NovaGold's Development at Galore Creek Project - "NovaGold Resources Inc. announced today that the British Columbia Ministry of Energy, Mines and Petroleum Resources concurs that NovaGold's drilling on the Grace Property over the past 3 years is sufficient to confirm that there is no economic mineralization in the area of the Grace claims proposed to be used for a tailings and waste storage facility for NovaGold's Galore Creek project." More - October 02, 2006 | Item | E-mail
Uzbek court declares Newmont gold venture bankrupt - "Newmont, the world's second-largest gold miner, has run into difficulties in the former Soviet republic at a time of worsening diplomatic relations prompted by U.S. condemnation of a government crackdown on a rebellion in Andizhan a year ago. In July, Uzbek authorities seized gold and some of the assets belonging to Zarafshan-Newmont, the other 50 percent of which is owned by the government of Uzbekistan, and launched two tax claims for payments it said were due between 2002 and 2005." More - October 02, 2006 | Item | E-mail
Anglogold Ashanti, Num, Solidarity, UASA and Izingwe Holdings announce Employee Share Ownership Plan and BEE Transaction and cautionary announcement - "With regard to the first component, the three unions and the company have agreed the architecture of an employee share ownership plan (ESOP), to be known as the Bokamoso ESOP - "harvesting for the future". All employees at AngloGold Ashanti"s South African operations, including the corporate office, who are not participants in any current share incentive scheme, will qualify as beneficiaries of the Bokamoso ESOP." More - October 02, 2006 | Item | E-mail
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