Gold rose to over $580 in Asia, fell about $10 in London, dropped to under $570 in morning New York trade, and then rebounded to over $576, but it soon fell back off and hovered near its lows for the rest of trade to cut its gains from Monday and close 10 cents under its closing price of last Friday.Silver rose near $11.40 in Asia before it fell off in London and remained near its lows just above $11.00 for most of trade in New York, but it still ended 4 cents higher from last Friday’s close.
Euro gold fell near €455, platinum lost $0.90 to $1,069.10, palladium lost $0.50 to $296.50, and copper fell about 4 cents to $3.37.
Gold and silver equities opened slightly lower, but they soon went up and traded roughly 1% higher for the rest of trade.
The Economy:
Report
For
Reading
Expected
Previous
Wholesale Inventories
Aug
1.1%
0.6%
0.9%
Federal Reserve President Richard Fisher spoke today and warned the fed will raise rates again if inflation doesn’t ease.September’s Treasury Budget release was delayed until tomorrow at a time to be announced.It is now expected at $52.0 billion.At 2PM EST is the release of FOMC minutes from their September 20th meeting.
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Oil continued to fall as OPEC still has not announced an official cut in production and doubts surfaced that they will do so at any time in the near future as “Saudi Arabia's state oil company told customers in East Asia and Europe to expect the same quantity of oil in November as this month, undercutting OPEC's plans to cut output.”
The U.S. dollar index found decent gains and treasuries fell on speculation the fed may start raising rates again.
The Dow, Nasdaq, and S&P traded on either side of unchanged in a pretty tight range and ended a bit higher as lower oil prices battled renewed interest rate fears ahead of the release of earnings from several big companies in the near future.
Among the big names making news in the market today were Alcoa, Genentech, ING, Supervalu, Goldman Sachs, Airbus, and ImClone.
The Commentary:
“Let me repeat … the statement by the Bundesbank that other central banks are looking to swap gold with them is a major event as far as GATA is concerned, especially, in light of the Barclays' faux pas. Why:
*The ECB banks only sold 80% of what they could have.
*Whoever wants to swap gold with Germany can’t announce outright sales on their own (like the US), so they want a deceptive swap deal to dump gold on the market. That is exactly what a recent IMF report stated was going on in that the central banks were not accounting for this gold no longer in their possession.
*The request for swapped gold suggests The Gold Cartel is having to scramble for available central bank gold supply.
*The statement by the German central bank is EXTRAORDINARY and most unusual. It is possible it was meant to send a signal out there to other central banks and to the gold world in general.” - From yesterday’s Midas report byBill Murphy of LemetropoleCafe.com
“December Gold finished down 6.6 at 576.2, 4.6 off the high and 3.2 up from the low.
December Silver closed down 0.2 at 11.22. This was 0.07 up from the low and 0.15 off the high.
An outside day down on the charts can sometimes be seen as a partially negative technical development and with the oil market flirting with fresh contract lows again and platinum prices under aggressive attack, it would seem like the bear camp is getting its house back in order again. In fact, with the added pressure of a soaring Dollar a number of bullish long term fundamental forecasts for higher gold prices into the end of the year are called into question. Apparently the trade is becoming even more concerned with the overt slide in the Euro as that has seemingly created yet another liquidation force in addition to the Dollar rise against a host of other currencies. In the near term the trade might attach significant interest to the $60.00 price level in December crude oil as a couple closes below that key level could spark ideas of a move to an even lower level for energies.
The silver market was hardly immune to the pressure being seen in gold and platinum on Tuesday. In fact, with a host of outside market influences all pointing to more pressure for silver prices directly ahead, the bull camp might need help from the economic outlook or there could be another broad based commodity liquidation wave. While the regularly scheduled economic reports haven't necessarily contributed to the concern of sagging physical and jewelry demand, the stock market hasn't exactly provided the same time of positive spin on the economy as was seen last week and therefore the sloppy price action in silver, copper and platinum isn't that surprising.” - The Hightower Report,Futures Analysis and Forecasting
The Statistics:
As of close of business: 10/09/2006
Gold Warehouse Stocks:
7,856,096
-32,033
Silver Warehouse Stocks:
105,213,513
+4,808
Global Gold ETF Holdings
[WGC Sponsored ETF’s]
Product name
Total Tonnes
Total Ounces
Total Value
New York Stock Exchange (NYSE)
Streettracks Gold Shares
389.34
12,517,589
US$ 7,200m
LSE (London Stock Exchange) AND Euronext Paris
Gold Bullion Securities
79.24
2,547,538
US$ 1,461m
Australian Stock Exchange (ASX)
Gold Bullion Securities
9.94
319,465
US$ 183m
Johannesburg Securities Exchange (JSE)
New Gold Debentures
9.89
317,886
US$ 182m
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU)
Profile as of 10/09/2006
Total Net Assets
$801,380,657
Ounces of Gold in Trust
1,385,649.968
Shares Outstanding
13,950,000
Tonnes of Gold in Trust
43.10
Note: No change in Total Tonnes from yesterday’s data.
Silver Trust (SLV)
Profile as of 10/09/2006
Total Net Assets
$1,181,846,357
Ounces of Silver in Trust
104,277,935
Shares Outstanding
10,450,000
Tonnes of Silver in Trust
3,243.4
Note: No change in Total Tonnes from yesterday’s data.
The Stocks:
Buenaventura’s (BVN) exercised option to purchase the remaining 25% of Minas Poracota, US Energy’s (USEG) agreement over the Lucky Jack molybdenum property, Gammon Lake’s (GRS) progress update, Fronteer’s (FRG) Aurora drill results, Seabridge’s (SA) drill results, Eldorado’s (EGO) aim for a Hong Kong listing, Hochschild Mining’s plans for a London IPO, and Silver Dragon’s (SDRG.OB) drill results were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1.US Energy
USEG+5.72% $4.25
2.GammonLake
GRS +5.36% $11.01
3.Bema Gold
BGO +3.68% $4.23
LOSERS
1.Fronteer
FRG-3.99% $5.78
2.Eldorado
EGO-3.16% $3.98
3.Orezone
OZN-2.21% $1.33
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:
Eastern Goldfields, Inc. Announces Financing, Forthcoming Roadshows and RC Drilling Results - More - October 10, 2006 | Item | E-mail
Prospero Minerals Corp. Elects Four New Directors - More - October 10, 2006 | Item | E-mail
Buenaventura Exercises Option to Purchase Remaining 25% of Minas Poracota - "Compania de Minas Buenaventura S.A.A., Peru's largest publicly-traded precious metals mining company, announced today that it has accepted the decision of Teck Cominco Peru S.A. to sell its 25% interest in Minas Poracota S.A. to Buenaventura." More - October 10, 2006 | Item | E-mail
Stellar Pacific Ventures Inc.: 10.43 g/t Au Over 1.0 M. Intersected at Vassan Property - More - October 10, 2006 | Item | E-mail
CMQ Encouraged by Recent Drilling - More - October 10, 2006 | Item | E-mail
Pelangio Reports final results from first surface exploration program at its Obuasi gold property in Ghana - More - October 10, 2006 | Item | E-mail
Pelangio Reports final results from first surface exploration program at its Obuasi gold property in Ghana - More - October 10, 2006 | Item | E-mail
High Grade Rock Sampling Results, up to 557 g/t Gold in Quartz Veins and up to 306 g/t Gold in the Altered Host Rocks, at the Gaoua Project - More - October 10, 2006 | Item | E-mail
U.S. Energy Corp. / Crested Corp. and Kobex Resources Ltd. Enter Into Letter Agreement Involving Lucky Jack Molybdenum Property - "On October 6, 2006, U.S. Energy Corp., its majority-owned subsidiary, Crested Corp., and U.S. Moly Corp., a Wyoming corporation organized by USEG and Crested but not yet active, entered into the "Letter Agreement" with Kobex Resources Ltd., which is headquartered in Vancouver, B.C. The Letter Agreement outlines the terms under which Kobex can acquire a 50% interest in certain patented and unpatented mining claims held by USEG and Crested, f
Gold Seeker Closing Report – Gold & Silver Lose Monday’s Gains
“Let me repeat … the statement by the Bundesbank that other central banks are looking to swap gold with them is a major event as far as GATA is concerned, especially, in light of the Barclays' faux pas. Why:
