-- Posted Tuesday, 3 October 2006 | Digg This Article
| Close | Gain/Loss |
Gold | $576.40 | -$21.20 |
Silver | $10.90 | -$0.60 |
XAU | 120.92 | -6.39% |
HUI | 282.67 | -6.67% |
GDM | 906.75 | -6.52% |
JSE Gold | 2786.11 | -3.77% |
USD | 85.73 | +0.12 |
Euro | 127.26 | -0.20 |
Yen | 84.80 | -0.22 |
Oil | $58.68 | -$2.35 |
10-Year | 4.616% | -0.002 |
T-Bond | 112.5625 | +0.03125 |
Dow | 11727.34 | +0.49% |
Nasdaq | 2243.65 | +0.27% |
S&P | 1334.11 | +0.29% |
The Metals:
Gold dropped a couple of dollars in Asia, traded over $5 lower in London, fell another $10 in early New York trade, and then went down about $5 further in the last half-hour of trade to result in a loss of 3.55% on the day. Silver also experienced significant drops throughout world trade and ended at its low of the day with a loss of 5.22%.
Euro gold fell near €450, platinum lost $27 to $1,113, palladium lost $9 to $299, and copper dropped over 10 cents to about $3.30.
Gold and silver equities fell about 4% at the open and remained at about that level in morning trade, but they then fell off further in afternoon trade and ended with losses of over 6%.
The Economy:
There were no major economic reports today. Tomorrow at 10AM EST are Factory Orders for August expected at -0.2% and ISM Services for September expected at 56.0. 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 in the night.
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The Markets:
Charts Courtesy of http://finance.yahoo.com/
Despite a call for OPEC supply cuts, oil fell to 10 month lows on ample supplies, continued easing geopolitical worries, and a forecast for no major hurricanes this season.
The U.S. dollar index and treasuries remained near unchanged and ended slightly higher as traders await an expected ECB rate hike, fed speeches, and economic data later in the week.
The Dow, Nasdaq, and S&P rose as oil plummeted and inflation/interest rate fears eased. The Dow passed its previous record high set on January 14, 2000 and rose to as high as 11758.95 before it fell off a bit, but it still ended at a new record closing high at 11727.34. The S&P 500 is about 12% from its record high and the Nasdaq is over 100% from a new record high.
Among the big names making news in the market today were Toyota, GM, Chrysler, Honda, Nissan, Ford, Volkswagen, Audi, Disney, Microsoft, PartyGaming, Kohl’s, Harrah’s, GM, Pepsi Bottling, and Marvell.
The Commentary:
“For all of that the political situation in the US is beyond belief, with the moral decay of our politicians leading to a nightmare that is reminiscent of the fall of the Roman Empire. This rant is leading to a judgement of what lies ahead for our markets, not to judge people’s choices for lifestyles. As a Libertarian, I believe in each to his own, as long as it doesn't hurt someone else. However, it is a judgement on the political leadership in America these days and how it relates to us as far as our investments are concerned.
What I do for a living is to bring topics up which I believe are going to have a profound influence on the gold market in the months and years ahead. Where the Bush Administration is leading us is profoundly disturbing, and the inanity of it all is accelerating.” - From yesterday’s Midas report by Bill Murphy of LemetropoleCafe.com
“December Gold finished down 21.8 at 581.5, 13.5 off the high and 0.5 up from the low.
December Silver closed down 0.595 at 11.045. This was 0.025 up from the low and 0.345 off the high.
Any number of fundamental arguments could have sunk gold prices on Tuesday. In addition to sagging oil prices and deteriorating macro economic expectations, the gold market also saw some pressure off the partially undermining World Gold Council predictions of a near term decline in gold investment interest. With another rogue story circulating about a joint venture effort to mine gold from the ocean, there were apparently more than just a few negative fundamental stories circulating in the action Tuesday. In fact, the sharp slide in oil prices during the session Tuesday clearly seemed to hint at a return of the partially deflationary conditions that were seen throughout most of early September. In the end, the gold market continues to behave like a physically demand driven commodity and with the economic outlook in a deteriorating posture, there is no sign that the deflationary selling interest will run its course quickly. We might add that the World Gold Council clarified their statements by suggesting that physical demand would recover toward the end of the year and that gold prices might improve.
With the silver market clearly falling below a series of critical technical levels on the charts Tuesday and other industrial metals under intense selling pressure it would seem like the bears have a firm grip on sentiment. With the market failing to respect psychological support around even numbers in the December contract and copper prices finishing flat on its back, the silver can't expect much in the way of support from the precious metals or industrial metals argument. However, given the evidence of only a marginally long spec positioning in silver, one might suggest that the washout on Tuesday goes a long way toward leveling the technicals in the silver market.” - The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Asian Development Bank economist urges big exchange rate deal
Silver ETF share registration increase doesn't require metal purchases
The Statistics:
As of close of business: 10/02/2006
Gold Warehouse Stocks: | 7,889,388 | -32 |
Silver Warehouse Stocks: | 105,220,490 | +251 |
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$ 7,458m |
LSE (London Stock Exchange) AND Euronext Paris | Gold Bullion Securities | 78.15 | 2,512,741 | US$ 1,446m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 9.94 | 319,490 | US$ 184m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 9.89 | 317,910 | US$ 190m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU)
Profile as of 10/02/2006 | |
Total Net Assets | $828,194,953 | 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 10/02/2006 | |
Total Net Assets | $1,207,540,005 | 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:
Kimber’s (KBX) drill results and undersea mining were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Almaden | AAU+4.44% $2.35 |
2. Crystallex | KRY+2.18% $2.81 |
3. Fronteer | FRG+2.08% $5.41 |
LOSERS
1. Vista Gold | VGZ-10.81% $8.66 |
2. Hecla | HL -10.39% $5.09 |
3. Cumberland | CLG-10.08% $4.55 |
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:
NORTHGATE MINERALS CORPORATION: CONFERENCE CALL AND WEBCAST OF THIRD QUARTER FINANCIAL RESULTS - "The call and webcast will take place on Tuesday, October 31, 2006, at 10:00 am ET. Northgate's third quarter financial results will be released the evening of October 30, 2006 and the presentation package for the conference call will be uploaded for the webcast the morning of October 31 and posted on Northgate's web site at www.northgateminerals.com under Investor Relations - Presentations page." More
- October 03, 2006 | Item | E-mail
Nevada Star Resource Corp.: MAN Alaska Project Joint Venture Interest - More
- October 03, 2006 | Item | E-mail
Reunion Gold Corporation Announces the Grant of Options - More
- October 03, 2006 | Item | E-mail
Dutton Associates Announces Investment Opinion: U.S. Energy Rating Raised to Strong Speculative Buy by Dutton Associates - "Dutton Associates continues its coverage of U.S. Energy Corp., raising its rating from Speculative Buy to Strong Speculative Buy with a 12-month price target of $6.00." More
- October 03, 2006 | Item | E-mail
Canarc Resource Corp.: Drilling Returns Additional High Grade Gold Intercepts From New Polaris Project, BC - More
- October 03, 2006 | Item | E-mail
Douglas Lake Minerals Adds 28 Gold Prospecting Licenses to its Tanzanian Portfolio - More
- October 03, 2006 | Item | E-mail
Oremex Reports Positive Results from Independent Preliminary Assessment Study on Tejamen Silver Property - More
- October 03, 2006 | Item | E-mail
Typhoon Cuts 14.2 g/t Gold Over 6.0 Meters at Fayolle - More
- October 03, 2006 | Item | E-mail
Step-out drilling extends Main Zone Mineralization to Southwest - More
- October 03, 2006 | Item | E-mail
Yale to Acquire 100% of Carol Property, Sonora, Mexico - More
- October 03, 2006 | Item | E-mail
Local and National Dignitaries Attend Ribbon Cutting Ceremony Launching MGM Mineral Resources Latest Mine Into Full Operation
Gold Seeker Closing Report – Gold & Silver Fall as the Dow Reaches New All-Time Highs