-- Posted Monday, 16 October 2006 | Digg This Article
| Close | Gain/Loss |
Gold | $594.80 | +$5.90 |
Silver | $11.81 | +$0.24 |
XAU | 130.17 | +0.88% |
HUI | 306.06 | +0.89% |
GDM | 978.55 | +0.97% |
JSE Gold | 2768.50 | -0.12% |
USD | 86.98 | -0.16 |
Euro | 125.26 | +0.11 |
Yen | 84.01 | +0.43 |
Oil | $59.94 | +$1.37 |
10-Year | 4.788% | -0.018 |
T-Bond | 110.53125 | +0.1875 |
Dow | 11980.60 | +0.17% |
Nasdaq | 2363.84 | +0.28% |
S&P | 1369.06 | +0.25% |
The Metals:
Gold rose a few dollars in Asia, added a couple dollars more in London, remained higher in morning New York trade, and closed near its highs with a 1.00% gain. Silver remained near unchanged in Asia and added a few cents in London before it gained another 20 cents in morning New York trade and closed near its highs with a gain of 2.07%.
Euro gold rose to about €475, platinum gained $8 to $1,082, palladium gained $9 to $320, and copper gained over 13 cents to roughly $3.53.
Gold and silver equities opened slightly higher before they fell off to find about 1% losses by noontime, but they then rallied into the close and ended nearly 1% higher on the day.
The Economy:
Report | For | Reading | Expected | Previous |
NY Empire State Index | Oct | 22.9 | 12.0 | 13.8 |
Fed members Bernanke, Yellen, and Poole all spoke today, but none gave much, if any, insight into the fed’s future monetary policy. Tomorrow at 8:30AM EST brings PPI for September expected at -0.7% and Core PPI expected at 0.2%. At 9AM are Net Foreign Purchases for August expected at $53.0 billion and at 9:15 are Capacity Utilization for September expected at 82.3% and Industrial Production for September expected at -0.1%.
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The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil rose as OPEC announced an emergency meeting to be held on Thursday to determine a possible cut in production quotas. Natural gas rose over 15% on cold weather forecasts.
The U.S. dollar index fell as Russia announced plans to increase its Japanese currency reserves. Losses were minimal, however, as most are looking ahead to economic data later in the week.
Treasuries rose slightly despite a strong NY Empire State Index report as traders prepared for PPI data tomorrow.
The Dow, Nasdaq, and S&P accomplished small gains on decent earnings reports. The Dow closed at a new record high.
Among the big names making news in the market today were Schwab, Citadel, UnitedHealth Group, Wachovia, Oshkosh truck and JLG, and Mattel.
The Commentary:
“The physical gold market has been on fire with enormous visible orders coming from Turkey and India. Meanwhile, the specs got themselves very short (relative to the past and recent memory). Back at the ranch The Gold Cartel has only so much central bank gold available to throw at the market on a daily basis. They must come up with 3 to 4 tonnes per day just to keep the price where it is. At some point the cabal forces have to save what ammo they have left and pull back. With the US stock market soaring and all eyes on it, perhaps this was the time they felt comfortable doing so.
As evidence The Gold Cartel is running low and supply (anecdotal as it is), let us go retro to the recent comment made by the Bundesbank's Axel Weber:
“We have been asked to negotiate with other central banks” about potential swap deals involving gold.
I have speculated as to the meaning of that comment and stated whatever the reason it was HIGHLY unusual and meaningful. Central bankers DO NOT let the cat out of the bag like that. To me it clarified to the unsuspecting how The Gold Cartel is operating AND how low their ammo gold stash is, which is why they went to the Germans. This unusual gold surge today may be an indication that assessment might be right on the money.” - From Friday’s Midas report by Bill Murphy of LemetropoleCafe.com
“December Gold finished up 5.8 at 598.5, 0.4 off the high and 3.5 up from the low.
December Silver closed up 0.23 at 11.91. This was 0.14 up from the low and 0.04 off the high.
The gold market staged an impressive upward extension and probably managed the gains off the periodic strength in the energy complex. We suspect that the better than expected New York Fed Manufacturing survey and the strength in the equity market prompted follow through spec buying but we also think that the anticipation of rising geopolitical tensions added to the bullishness. The Dollar was marginally lower during the session and that might have provided some indirect support to prices, but recently the gold market hasn't exactly been tracking Dollar movement closely. The market did see some old oil stories dredged up again, with the Indian Hallmarking rule changes expected to stimulate some demand improvement in that country and the market also circulating talk that there could be new labor concerns for Gold Fields in Peru. In short, the market seems to have had a long list of minor but supportive items and that was mixed in with a slightly additional improvement in the macro economic outlook.
December silver managed an impressive upward adjustment on the charts and in the process took silver prices to the highest high since September 11th. Some in the trade are concerned that the December contract was destined to encounter significant resistance at the $12.00 level. We might note that significant gains in copper prices, and moderate strength in tin and nickel prices contributed to a broad based bullishness in a number of metals markets on Monday. In fact, with the macro economic readings from the US strong and copper prices at times showing gains in excess of 17 cents at times during the session the outside market action on Monday was probably distinctly supportive to silver.” - The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Counterfeiting, not barter, is thrust of threat against Liberty Dollar
F. William Engdahl: Crisis of the U.S. dollar system
The Statistics:
As of close of business: 10/13/2006
Gold Warehouse Stocks: | 7,759,325 | - 64,770 |
Silver Warehouse Stocks: | 105,785,073 | + 604,273 |
Global Gold ETF Holdings
[WGC Sponsored ETF’s]
| Product name | Total Tonnes | Total Ounces | Total Value |
New York Stock Exchange (NYSE) AND Singapore Exchange (SGX) | Streettracks Gold Shares | 390.26 | 12,547,364 | US$ 7,353m |
LSE (London Stock Exchange) AND Euronext Paris | Gold Bullion Securities | 80.79 | 2,597,368 | US$ 1,548m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 9.94 | 319,444 | US$ 190m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 9.89 | 317,865 | US$ 186m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU)
Profile as of 10/13/2006 | |
Total Net Assets | $815,756,511 | 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 10/13/2006 | |
Total Net Assets | $1,188,560,173 | 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:
DRDGold’s (DROOY) shut mine shaft, Golden Star’s (GSS) CFO resignation, Nevsun’s (NSU) technical report filing date, Randgold’s (GOLD) reinvestment in Mali Gold, Yamana’s (AUY) mine start-up and update, Wildcat Silver’s (WLDVF.PK) Ventana spinoff, UC Resources (UC.V) exploration program, Coeur’s (CDE) start on the tailings facility at San Bartolome, SilverCrest’s (SVL.V) resource increase, Arian Silver’s (AGQ.V) drill results, Minefinders’ (MFN) selected CFO successor, 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. Banro Corp. | BAA+20.35% $11.65 |
2. Northgate | NXG +6.78% $3.15 |
3. Entree Gold | EGI +6.48% $1.15 |
LOSERS
1. Richmont | RIC -5.56% $2.55 |
2. Cardero | CDY -4.40% $1.52 |
3. Apex Silver | SIL -3.89% $14.10 |
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:
CR Structure Results/Second Drill Added at La Fortuna - More
- October 16, 2006 | Item | E-mail
DRDGOLD shuts Philip shaft at Fiji gold mine - "A comprehensive investigation has already commenced to establish the cause of the failure, and relevant authorities are being kept informed of our progress." More
- October 16, 2006 | Item | E-mail
Simberi Mining Corporation Increases Private Placement to $2.75 Million - More
- October 16, 2006 | Item | E-mail
Drake Gold Announces Strategic Review of Potential Naked Short Selling Utilizing a Combination of Tools Including the ADP: NOBO and OBO Lists - More
- October 16, 2006 | Item | E-mail
Dhanoa Minerals Ltd. Announces Paul Roberts as President, and 5-1 Forward Stock Split. - More
- October 16, 2006 | Item | E-mail
Wildcat Silver Proceeds With Ventana Spinoff - "Wildcat Silver Corporation is pleased to announce it has called its Annual & Special General Meeting of Shareholders on November 15, 2006 to seek approval of the previously announced Plan of Arrangement. The Plan proposes for the Company to spin out its interest in its wholly-owned subsidiary, Ventana Gold Corporation, to the Company's shareholders on the basis of one Ventana common share for each Wildcat common share held (at no cost to the shareholder)." More
- October 16, 2006 | Item | E-mail
UC Resources Ltd.: Phase III Exploration Program Commences on 64,000 Hectare Copalquin Project in Durango, Mexico - "UC Resources is pleased to announce that Phase III drilling has commenced on the Company's 100% owned flagship exploration property, Copalquin, which is located in the Northwest corner of Durango, Mexico. The property is a 64,000 hectare land package which encompasses 23 historically productive silver and gold mines within its boundaries." More
- October 16, 2006 | Item | E-mail
Gold Seeker Closing Report – Gold & Silver Rise 1% & 2%