-- Posted Thursday, 12 October 2006 | Digg This Article
| Close | Gain/Loss |
Gold | $576.00 | +$3.50 |
Silver | $11.27 | +$0.04 |
XAU | 125.39 | +2.61% |
HUI | 294.61 | +2.46% |
GDM | 942.18 | +2.56% |
JSE Gold | 2743.43 | -2.33% |
USD | 86.87 | -0.23 |
Euro | 125.50 | +0.42 |
Yen | 83.70 | +0.21 |
Oil | $57.86 | $0.27 |
10-Year | 4.778% | -0.006 |
T-Bond | 110.6875 | +0.0625 |
Dow | 11947.70 | +0.81% |
Nasdaq | 2346.18 | +1.64% |
S&P | 1362.83 | +0.95% |
The Metals:
Gold rose over $576 in late Asian trade before it fell off in London and dropped to as low as $570.30 in midmorning New York trade, but it then rallied into the close and ended near its highs with a gain of 0.61%. Silver dropped to as lows as $11.07 before it also rallied into the close and ended with a gain of 0.36%.
Euro gold rose over €460, platinum remained at $1,069, palladium gained $3 to $305, and copper fell slightly to get back under $3.40.
Gold and silver equities rose about 2% in the first 2 hours of trade before they backed off a bit in early afternoon trade, but they then rallied into the close, made new highs on the day, and closed with about 2.5% gains.
The Economy:
Report | For | Reading | Expected | Previous |
Trade Balance | Aug | -$69.9B | -$66.5B | -$68.0B |
Initial Claims | 10/07 | 308K | 312K | 304K |
The trade deficit came in at a new record high. The fed’s Beige Book noted cooling in the housing market, but noted otherwise “moderate or mixed” economic expansion. Tomorrow at 8:30AM EST brings Import and Export Prices for September and Retail Sales for September expected 0.2%. Excluding autos, sales are expected to come in at 0.0%. At 9:50AM is the preliminary reading for October Michigan Sentiment expected at 86.5 and at 10AM is the Business Inventories report for August expected at 0.5%.
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The Markets:
Charts Courtesy of http://finance.yahoo.com/
Crude inventories built 2.4 million barrels, gasoline inventories built 300,000 barrels, distillates fell 1.6 million barrels, and natural gas stocks built 62 bcf. A large draw in heating oil brought distillate inventories down due to a decline in refinery operation as homes stock up on supplies for the winter and that encouraged some buying in the energy markets today as there was no news from OPEC.
The U.S. dollar index fell a bit on news of a new record high trade deficit, but losses were limited following the release of the fed’s Beige Book that gave no indication of cutting interest rates anytime soon.
Treasuries rose on a strong Treasury Inflation Protected Securities (TIPS) auction, but gains were somewhat limited after the release of the fed’s Beige Book.
The Dow, Nasdaq, and S&P rose on mostly strong earnings and on favorable remarks from the fed’s Beige Book which indicated the fed will likely continue to hold rates where they are for now. The Dow closed at a new record high.
Among the big names making news in the market today were Genzyme, Winnebago, Harley-Davidson, Costco, McDonald’s, and PepsiCo.
The Commentary:
“Let me get to a surprising positive on a market issue which is mostly ignored. My focus today is on what the base metals are doing. Yesterday the GFMS base metals index made an all-time HIGH. Today it followed through to the upside on that high with ALL the base metals closing higher on the day…
How do you have a bubble BURST in base metals with the index making all-time highs?
I am no expert in this area, however, by way of what I have heard, and through feedback from informed Café sources, it has been my long held view that many pundits in this arena have been snookered … in that they believed the run up in the base metals was mostly due to excessive speculation by the hedge funds. My contention is that much of that buying was the Chinese and others, going through intermediaries, to make it look as if it were hedge fund buying. Much of what was thought to be spec buying by weak hands has, in actuality, been strong hand buying, or supply that is not coming back on the market in the near term.
An example of this would be Chinese buying of gold through the STALKER buying group, noted here for years in this column. In addition, over the past years, MIDAS has reported the Chinese scouring the countryside of Africa and South America to secure supply via long term base metals contracts.” - From yesterday’s Midas report by Bill Murphy of LemetropoleCafe.com
“December Gold finished up 3.8 at 580.3, 2.7 off the high and 5.8 up from the low.
December Silver closed up 0.05 at 11.38. This was 0.18 up from the low and 0.075 off the high.
The gold bulls would suggest that the capacity to build consolidation support in the December gold contract around the $575 level is a positive, while the bear camp would suggest that the failure to bounce aggressively on Thursday, in the face of the sharp rise in the equity market, is a sign that gold is not that sensitive to positive macro economic developments. Certainly the early new low in energy prices Thursday morning was an undermine for gold prices but the oil markets capacity to reject new lows around the $60.00 per barrel level in December crude oil is also beginning to give off the impression that oil prices are going to have trouble tracking to even lower levels ahead. In short, one might suggest that the environment for aggressive commodity selling is waning, especially when compares current conditions to the conditions seen in September and early October.
The silver market underperformed gold early in the session and with the equity market soaring and economic prospects seemingly brightening, one might have expected silver to get a more salient lift than gold during the action Thursday. However, copper prices remained weak and the trade seemed to be unwilling to bid up the classic industrial or physical demand driven metals sector and that seemed to indirectly hold back silver prices. In the end, seeing the US equity market charge to another round of new all time highs, should help the silver market downplay the recent fears of a significant and sustained slump in commodities demand.” - The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Peter Brimelow: Indians back buying gold
The Statistics:
As of close of business: 10/11/2006
Gold Warehouse Stocks: | 7,824,095 | - 32,001 |
Silver Warehouse Stocks: | 105,180,800 | - |
Global Gold ETF Holdings
[WGC Sponsored ETF’s]
| Product name | Total Tonnes | Total Ounces | Total Value |
New York Stock Exchange (NYSE) | Streettracks Gold Shares | 390.26 | 12,547,364 | US$ 7,202m |
LSE (London Stock Exchange) AND Euronext Paris | Gold Bullion Securities | 79.23 | 2,547,482 | US$ 1,474m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 9.94 | 319,458 | US$ 185m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 9.89 | 317,879 | US$ 182m |
Note: Change in Total Tonnes from yesterday’s data: The NYSE added 0.92 tonnes and the LSE subtracted 0.01 tonnes.
COMEX Gold Trust (IAU)
Profile as of 10/11/2006 | |
Total Net Assets | $792,910,726 | 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 10/11/2006 | |
Total Net Assets | $1,161,479,960 | 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:
Rob McEwen’s opposition to Goldcorp’s (GG) proposed Plan of Arrangement with Glamis Gold (GLG), Rio Narcea’s (RNO) revised open pit mineral reserve estimate, and Great Panther’s (GPR.V) drill results were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Entree Gold | EGI +7.45% $1.01 |
2. Bema Gold | BGO +5.91% $4.48 |
3. Lihir Gold | LIHR +5.55% $22.65 |
LOSERS
1. Minco Mining | MMK-2.17% $1.35 |
2. NovaGold | NG -2.04% $15.35 |
3. Mines MGMT | MGN -1.80% $4.91 |
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:
Glass Earth announces NZ$10m Offer Fully Subscribed and NZAX Listing - More
- October 12, 2006 | Item | E-mail
Tamija Gold & Diamond Exploration, Inc. Plans to Enter the Booming Online Sector of the $59.4 Billion Annual Jewlery Sales Market - More
- October 12, 2006 | Item | E-mail
Ascendant Copper Corporation Appoints PricewaterhouseCoopers LLP as Auditors - More
- October 12, 2006 | Item | E-mail
Newgold to Become Firstgold; Announces Intent to Change Company Name - More
- October 12, 2006 | Item | E-mail
Tournigan Announces IR Appointment - More
- October 12, 2006 | Item | E-mail
Consolidated Puma Minerals Corp.: Drill Program Results From Chuarvi Zone, East Pansky PGE Property, Russia - More
- October 12, 2006 | Item | E-mail
Unico, Inc. Announces Agreement for Additional Labor to Complete Construction at Deer Trail Mill and Processing Facility - More
- October 12, 2006 | Item | E-mail
Drilling Program Started at Victoria's Newly Acquired Cove-McCoy Property - More
- October 12, 2006 | Item | E-mail
General Minerals Corporation Announces Termination of the Joint Venture on the Monitor Copper-Silver Property - More
- October 12, 2006 |
Gold Seeker Closing Report – Gold & Silver Gain Again