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
Gold Seeker Closing Report – Gold Gives Up Early Gains While Silver Rises
