-- Posted Wednesday, 18 October 2006 | Digg This Article
| Close | Gain/Loss |
Gold | $588.70 | -$0.90 |
Silver | $11.72 | +$0.05 |
XAU | 127.01 | -1.89% |
HUI | 297.84 | -1.95% |
GDM | 954.55 | -1.74% |
JSE Gold | 2799.97 | +1.13% |
USD | 86.88 | +0.04 |
Euro | 125.29 | -0.18 |
Yen | 84.05 | -0.02 |
Oil | $57.65 | -$1.28 |
10-Year | 4.764% | -0.014 |
T-Bond | 110.78125 | +0.15625 |
Dow | 11992.68 | +0.36% |
Nasdaq | 2337.15 | -0.33% |
S&P | 1365.96 | +0.14% |
The Metals:
Gold remained near unchanged in Asia and rose in London to trade in a range of about $590 to $595 for most of the rest of trade, but a spike lower in the last minutes of trade in New York erased the day’s gains and caused gold to close with a slight loss on the day. Silver followed a similar pattern in a range of roughly $11.70 to $11.90 before it also fell off into the close, but it was still able to end slightly higher on the day.
Euro gold remained at about €470, platinum gained $5 to $1,084, palladium gained $11 to $326, and copper rose slightly to about $3.48.
Gold and silver equities opened briefly higher before they steadily fell off to find nearly 2% losses by 2PM EST, but a small rally into the close did take the indices off of their lows.
The Economy:
Report | For | Reading | Expected | Previous |
CPI | Sep | -0.5% | -0.3% | 0.2% |
Core CPI | Sep | 0.2% | 0.2% | 0.2% |
Housing Starts | Sep | 1772K | 1650K | 1674K |
Building Permits | Sep | 1619K | 1715K | 1727K |
Year over year Core CPI rose 2.9% which was the highest reading since January 1996. Tomorrow at 8:30AM EST brings Initial Jobless Claims for 10/14 expected at 310,000. At 10AM are Leading Economic Indicators for September expected at 0.3% and at noon is the Philadelphia Fed manufacturing survey for October expected at 6.5.
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The Markets:
Charts Courtesy of http://finance.yahoo.com/
Crude inventories built 5.1 million barrels, gasoline inventories fell 5.2 million barrels, and distillate inventories fell 4.5 million barrels. Utilization came in at a lower than expected 2.9%. Oil initially rose on the larger than expected drops in gasoline and distillate inventories, but it later began to fall on the larger than expected build in crude inventories. OPEC’s meeting tomorrow that is expected to cut output was also on trader’s minds as oil closed over $1 lower.
The U.S. dollar index rose slightly on surprisingly strong Housing Starts, but gains were limited with mostly in-line CPI readings and weak Building Permits data.
Treasuries ended with slight gains as interest rates closed slightly lower after economic data reinforced the view that the fed will continue to keep interest rates unchanged.
The Dow rose nearly 100 points to as high as 12,048.47 at the open and the Nasdaq and S&P followed it higher, but all three indices soon fell off and all traded at least slightly lower at one point before the Dow and S&P rebounded and ended marginally higher on the day.
Among the big names making news in the market today were American Airlines, Verizon, Piper Jaffray, IBM, Apollo Group, Time Warner, General Dynamics, JPMorgan, and Mellon.
The Commentary:
“Today’s descent in the price of gold was the least surprising one I have seen in 8 years of writing this commentary. It had Gold Cartel written all over it the last two days and this morning. Why:
*Two consecutive daily price cappings after opening surges.
*The notable horrid action of the HUI the past two days, which told us JP Morgan and friends were all over it, ready for hit today.
*A core PPI today of .6%, which is way too high … and as we know, when a US financial market report comes out that signals that inflation is a threat, gold is whacked … almost ALWAYS … ALWAYS!” - From yesterday’s Midas report by Bill Murphy of LemetropoleCafe.com
“December Gold finished down 0.9 at 592.6, 5.4 off the high and 0.6 up from the low.
December Silver closed up 0.04 at 11.82. This was 0.04 up from the low and 0.16 off the high.
The gold market did attempt some early strength but failed to hold that strength into the close. In fact, the failure to see prices rise above the critical psychological level of $600 in the December contract is viewed by some in the trade to be a moderately negative development. However, given that the Dollar finished higher, that crude oil market actually posted a new low close on the session, there was certainly plenty of outside market fundamentals applying pressure to gold prices. Even the US economic report slate seemed to favor the bear camp as the housing numbers showed both growth and contraction, while the CPI report showed a significant dampening of headline inflation but also posted a rather robust up tick in annual change in core inflation readings. Apparently all the talk early in the session about strong Asian physical buying interest and the expectation of strong Indian festival demand was glossed over by the developments from the US trade.
While the copper market tried to rally from a rather significant early washout, the silver and other base metals markets seemed to fight an uphill battle throughout the session Wednesday. While the stock market was able to post more new all time highs in a number of market measures early in the session, the action in equity prices was choppy and therefore of little help to silver. With the gold market also undermining and the new low in the energy complex, the silver market would seem to trade on under a minor outside market liquidation threat.” - The Hightower Report, Futures Analysis and Forecasting
The Statistics:
As of close of business: 10/17/2006
Gold Warehouse Stocks: | 7,727,235 | - 32,090 |
Silver Warehouse Stocks: | 105,451,277 | + 263328 |
Global Gold ETF Holdings
[WGC Sponsored ETF’s]
| Product name | Total Tonnes | Total Ounces | Total Value |
New York Stock Exchange (NYSE) AND Singapore Exchange (SGX) | Streettracks Gold Shares | 390.26 | 12,547,364 | US$ 7,451m |
LSE (London Stock Exchange) AND Euronext Paris | Gold Bullion Securities | 80.78 | 2,597,310 | US$ 1,534m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 9.98 | 320,737 | US$ 189m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 9.89 | 317,858 | US$ 187m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU)
Profile as of 10/17/2006 | |
Total Net Assets | $816,967,748 | 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 10/17/2006 | |
Total Net Assets | $1,235,419,661 | 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:
Ivanhoe’s (IVN) partnership with Rio Tinto (RTP), Silver Standard’s (SSRI) production decision at Pirquitas, Apogee’s (APE.V) meeting with the Bolivian State Mining Agency, and Minefinders’ (MFN) intent to offer and sell US$75 million aggregate principal amount of its Senior Convertible Notes were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Ivanhoe | IVN +33.08% $8.69 |
2. Entree Gold | EGI +21.55% $1.41 |
3. New Gold | NGD+11.13% $7.89 |
LOSERS
1. Minefinders | MFN-11.11% $8.00 |
2. Lihir Gold | LIHR-5.10% $21.21 |
3. Crystallex | KRY -3.78% $2.80 |
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:
Harte Gold Corp. Completes $1,383,000 Financing - More
- October 18, 2006 | Item | E-mail
Coronation Minerals Inc.: Drilling Results From Wellgreen Mine Property - More
- October 18, 2006 | Item | E-mail
Eloro Identifies Second Polymetallic Zone in James Bay Mine District, Eastmain 1 Property Grab Samples Yields up to 2.85% Copper and 14.8 G/T Silver - More
- October 18, 2006 | Item | E-mail
Nuinsco Announces Rights Offering To Shareholders - More
- October 18, 2006 | Item | E-mail
HE-5 Resources, Corp. Acquires Claims in Matagami Mining Camp - More
- October 18, 2006 | Item | E-mail
Gabriel Resources Ltd. - David Christensen appointed as Vice President, Corporate Development - More
- October 18, 2006 | Item | E-mail
Aurora Gold Corporation Is Pleased to Announce Significant Further Drill Results for Properties in the Tapajos Gold Province, State of Pará, Brazil - More
- October 18, 2006 | Item | E-mail
Eaglecrest Explorations Ltd.: Second Shipment of Gold Flotation Concentrate Sent to Penoles in Mexico - More
- October 18, 2006 | Item | E-mail
Alberta Star Completes $12.12 Million Brokered Private Placement - More
- October 18, 2006 | Item | E-mail
Keegan Discovers New Gold Zone at Esaase Property, Ghana - More
- October 18, 2006 | Item | E-mail
Patricia Mining Corp. Announces the Completion of a $2,000,000 Flow Through Private Placement - More
- October 18, 2006 | Item | E-mail
Aurelian Intersects 161.0 Metres Grading 6.51 g/t of Gold in Drilling, Further Extends the Strike of the FDN Epithermal Gold-Silver Discovery - More
- October 18, 2006 | Item | E-mail
Vena Resources Confirms Huachon High-Grade Vein Gold Project - More
- October 18, 2006 | Item | E-mail
Avnel Gold is awarded the Fougadian Exploration Permit, directly south of the Kalana Exploitation Permit, Mali - More
- October 18, 2006 | Item | E-mail
American Creek announces Phase II drilling underway on Electrum Project, Stewart, BC - More
- October 18, 2006 | Item | E-mail
European Minerals Corporation: Varvarinskoye Debt Facility Completed and Project Update - More
- October 18, 2006 | Item | E-mail
SearchGold Presents its Latest Results at Frankfurt's Stock Days and Rohstoffmesse in Germany - More
- October 18, 2006 | Item | E-mail
Unico, Inc. Announces Chairman's Purchase of 2.55 Million Shares to Double Common Stock Ownership - More
- October 18, 2006 | Item | E-mail
Eleonore South JV Update -- Roberto-Type -- Gold -- Arsenic -- Antimony Targets Outlined - More
- October 18, 2006 | Item | E-mail
Diadem-Duquesne West Gold Project Liz Zone Mineralization Extended 160 Meters Down Dip With Composite Assay of 8.9 Grams Gold Over 6.0 Meters - More
- October 18, 2006 | Item | E-mail
Temex set to drill at Gowganda Silver Project - More
- October 18, 2006 | Item | E-mail
Alexis Intersects 1.02 Ounces Per Tonne Over 30 Feet at Lac Herbin, Quebec - More
- October 18, 2006 | Item | E-mail
PAN AFRICAN MINING CORP. Reports Progress on Diamond Program; Commencing Airbourne Survey of Key Targets - More
- October 18, 2006 | Item | E-mail
Stroud Resources Announces Diamond Drilling Program on Hislop Gold Project Property - More
- October 18, 2006 | Item | E-mail
Anvil Mining Congo receives notification from Congolese Military Court in relation to the Kilwa incident in October 2004 - More
- October 18, 2006 | Item | E-mail
Ressources Appalaches Acquires Bornite Hill Property - More
- October 18, 2006 | Item | E-mail
Petaquilla Minerals Ltd.: Private Placement Closes - More
- October 18, 2006 | Item | E-mail
Wide Gold Intersection at Globex's Duquesne West Project - More
- October 18, 2006 | Item | E-mail
Aquila Resources Inc.: Drilling Expands Gold and VMS Zones - More
- October 18, 2006 | Item | E-mail
Silver Standard Announces Production Decision at Pirquitas - "Silver Standard is pleased to report that it has made a production decision for the Pirquitas Project following a meeting held today in Jujuy Province, Argentina, with Dr. Eduardo Alfredo Fellner, governor of the province where he was presented with the feasibility study update supporting the development of the Pirquitas Project." More
- October 18, 2006 | Item | E-mail
Apogee Meets With Bolivian State Mining Agency - "We expect to continue to have the ability to operate our producing silver-zinc mine and carry out our exploration activities at our high-grade silver projects in Bolivia. We are continuing with our objectives of producing a new Business Plan for the La Solucion mine and generating a NI 43-101 compliant Resource Estimate at the Paca open-pit project by year-end." More
- October 18, 2006 | Item | E-mail
Ivanhoe Mines and Rio Tinto Form Strategic Partnership to Develop Mongolian Copper-Gold Resources - "Robert Friedland, founder and Chairman of Ivanhoe Mines, and John Macken, Ivanhoe's President and CEO, announced today that world mining leader Rio Tinto has agreed to form a strategic partnership by investing in Ivanhoe and, through an Ivanhoe-Rio Tinto Technical Committee, will jointly engineer, construct and operate Ivanhoe's Oyu Tolgoi copper-gold mining complex in Mongolia's South Gobi region. The agreement creates a defined path for Rio Tinto to become the largest shareholder in Ivanhoe Mines." More
- October 18, 2006 | Item | E-mail
Minefinders Announces Intent to Offer Senior Convertible Notes - "Minefinders Corporation Ltd. today announced its intention to offer and sell US$75 million aggregate principal amount of its Senior Convertible Notes due 2011 to certain qualified institutional buyers pursuant to Rule 144A under U.S. Securities Act of 1933 (the "1933 Act"), subject to market and other conditions, including approval of the Toronto Stock Exchange and the American Stock Exchange." More
- October 18, 2006 | Item | E-mail
- Chris Mullen, Gold Seeker Report
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-- Posted Wednesday, 18 October 2006 | Digg This Article
Gold Seeker Closing Report – Gold & Silver Erase Early Gains and End Mixed
