-- Posted Wednesday, 11 October 2006 | Digg This Article
| Close | Gain/Loss |
Gold | $572.50 | +$0.40 |
Silver | $11.23 | +$0.11 |
XAU | 122.22 | -2.08% |
HUI | 287.53 | -1.63% |
GDM | 918.61 | -1.75% |
JSE Gold | 2808.98 | -1.18% |
USD | 87.10 | +0.08 |
Euro | 125.08 | -0.31 |
Yen | 83.49 | -0.04 |
Oil | $57.59 | -$0.93 |
10-Year | 4.784% | +0.036 |
T-Bond | 110.625 | -0.40625 |
Dow | 11852.13 | -0.13% |
Nasdaq | 2308.27 | -0.31% |
S&P | 1349.95 | -0.26% |
The Metals:
Gold traded in a range of about $570 to $574 in Asia and London, came into New York near unchanged above $572, and then rose above $578 by late morning, but it then fell back off in afternoon trade and ended just slightly higher on the day. Silver traded mostly slightly lower in Asia and London and rose to over $11.40 in late morning New York trade before it also fell off in afternoon trade, but it still closed with a gain of 0.99%.
Euro gold remained near €455, platinum lost $0.10 to $1,069.00, palladium gained $5.50 to $302.00, and copper gained more than 3 cents to over $3.40.
Gold and silver equities remained near unchanged for much of trade, but they then fell off in the last 2 and ½ hours of trade and ended with over 1.5% losses.
The Economy:
The budget deficit fell to $248 billion, the smallest in four years. FOMC minutes from their September 20th meeting showed the fed saw a “substantial risk that inflation would not decline as anticipated by the committee,” but the committee did keep rates unchanged and noted that the decision to keep rates unchanged was less difficult than the one in August which was a “particularly close call.”
Tomorrow at 8:30AM EST brings Initial Jobless Claims for 10/07 expected at 312,000 and the Trade Balance for August expected at -$66.5 billion.
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The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil dropped to an 8 month low on growing speculation that there will be no output cut by OPEC as Saudi Arabia has not confirmed recent rumors of a cut of 1 million barrels a day.
The U.S. dollar index traded a bit lower for most of trade, but it then rose in late trade and ended slightly higher after FOMC minutes showed greater concern over inflation than many had anticipated.
Treasuries rose in early trade, but they then fell off and ended lower after interest rates spiked higher on inflation fears raised by the FOMC minutes.
The Dow, Nasdaq, and S&P opened higher on mostly poor earnings, briefly rose to find small gains in early afternoon trade as oil closed near its lows, fell back off on inflation worries and briefly extended their losses on news that a small aircraft crashed into a Manhattan building, but they then rebounded and ended with just minor losses as it became clear that the crash was not terrorism related.
Among the big names making news in the market today were Sovereign, AT&T and BellSouth, Legg Mason, Genentech, CNet, Alcoa, Bank of America, Gannett, Jacuzi and Apollo, McAfee, Visa, Delphi and GM, and Pimco.
The Commentary:
“I see the DOW is now up on the day at an all-time high, oil is getting crushed, the dollar is firm as can be, and gold is in the toilet. What Lola wants, Lola is getting today, like almost every day these days.
Sure, the PPT, Gold Cartel and Counterparty Risk Management Group can influence the markets for now, but they can only do so much for so long. Bush and the neo-cons have put America in an untenable position, a disastrous one. There is no way that position won’t have a profound effect on gold and the dollar in the coming months and years.
More than likely the pre-election market rigging shenanigans will also prove to be profoundly negative for the US stock and bond markets in the coming months and years. Once the elections are over, look out.” - From yesterday’s Midas report by Bill Murphy of LemetropoleCafe.com
“December Gold finished up 0.3 at 576.5, 6.9 off the high and 0.4 up from the low.
December Silver closed up 0.11 at 11.33. This was 0.13 up from the low and 0.21 off the high.
All things considered the gold market held up much better than one would have considered given that oil prices were weak early and the US Dollar was showing signs of strength. However, later in the session the gold rally fizzled and in the process seemed to downplay the potential North Korean inspired flight to quality buying argument. On the other hand, the gold market was probably a little disappointed in the inability to hold the mid morning gains and with the Press suggesting that a portion of the buying was seemingly carried out by spec accounts, the slide back from the highs might have additional repercussions.
In retrospect the silver market seemed to outperform the gold market but even around the highs on Wednesday the silver market was still unable to climb back above the prior session's highs. With the copper market also relatively outperforming the silver and gold market on Wednesday, one doesn't get the sense that the trade is turning that negative toward the US economy. On the other hand, the silver market isn't immune to the slowing noted in the US Beige Book and the FOMC Meeting minutes Wednesday afternoon.” - The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
In defense of the Liberty Dollar
No big gold sales in latest European Central Bank report
Izzy Friedman explains optimism for silver; Ted Butler reports on CBOT
The Statistics:
As of close of business: 10/10/2006
Gold Warehouse Stocks: | 7,856,096 | - |
Silver Warehouse Stocks: | 105,180,800 | -32,713 |
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$ 7,151m |
LSE (London Stock Exchange) AND Euronext Paris | Gold Bullion Securities | 79.24 | 2,547,510 | US$ 1,458m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 9.94 | 319,462 | US$ 183m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 9.89 | 317,882 | US$ 181m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU)
Profile as of 10/10/2006 | |
Total Net Assets | $792,365,150 | 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 10/10/2006 | |
Total Net Assets | $1,168,795,426 | 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:
Tanzanian Royalty’s (TRE) prioritized exploration targets, Gold Fields’ (GFI) battle to gain full control of South Deep, Endeavour’s (EDR.TO) new VP and update at Guanacevi, and Fortuna’s (FVI.V) production at Caylloma were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Banro | BAA +4.04% $8.75 |
2. Rio Narcea | RNO +3.57% $2.32 |
3. Ivanhoe | IVN +2.52% $6.51 |
LOSERS
1. Fronteer | FRG -5.88% $5.44 |
2. US Energy | USEG-5.41% $4.02 |
3. Vista Gold | VGZ -4.79% $8.75 |
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:
New Guinea Gold Corporation: High Grade Gold & Silver Zone in Hole MPD 22 at Mt Penck - More
- October 11, 2006 | Item | E-mail
Tanzanian Royalty Prioritizes Exploration Targets in Kibara Nickel Belt - "The Kibara belt hosts the Kabanga nickel deposit (Barrick Gold) which was discovered by the United Nations Development Program (UNDP) during the 1970s. The discovery was made following a comprehensive geochemical and geophysical program that identified a chain of coincident airborne magnetic and geochemical anomalies within a 20-30 kilometre wide northeasterly trending belt that extends for over 200 kilometres from Burundi in the south, through western Tanzania, to Uganda in the north." More
- October 11, 2006 | Item | E-mail
King's Bay Gold Corporation: Drill Progress; Rowan Lake Mine, Red Lake - More
- October 11, 2006 | Item | E-mail
ITH Consolidates Livengood Gold Project, Alaska Tests Bulk Tonnage Potential With 2500m Diamond Drillhole Program - More
- October 11, 2006 | Item | E-mail
Endeavour Appoints New Vice President, Mexico Operations; Provides Update on Installation of New Ball Mill At Guanacevi - "On a separate note, senior management recently conducted an onsite operational review of the plant refurbishment program at the Guanacevi Mines Project. Godfrey Walton, President and COO, reports that most of the new plant infrastructure is now complete, including the construction of the fine ore bin, related conveyor systems, and new ball mill foundations. However, the installation of the new 10 1/2 x 12 ft. ball mill will not be completed until late October due to repeated delays in equipment and parts deliveries to the mill-site." More
- October 11, 2006 | Item | E-mail
General Minerals Corporation Acquires Gold Property in Sonora, Mexico and Reports Encouraging Results - More
- October 11, 2006 | Item | E-mail
Pan American Gold Corporation Signs Definitive Option - More
- October 11, 2006 | Item | E-mail
Simberi Mining Corporation Announces $2.0 Million Private Placement - More
- October 11, 2006 | Item | E-mail
Progress Report on the Ramard Project in Sonora, Mexico - More
- October 11, 2006 | Item | E-mail
South Africa slashes rates in new royalty bill - "South Africa, the world's biggest producer of gold and platinum, slashed rates of proposed mining royalties on Wednesday to lessen the impact of a controversial tax based on company revenues. Most reaction to the lower rates was positive, even though the government refused to agree to industry demands to change the basis of the tax to profits from revenues." More
- October 11, 2006 | Item | E-mail
Gold Seeker Closing Report – Gold & Silver Rise Moderately