-- Posted Thursday, 19 October 2006 | Digg This Article
| Close | Gain/Loss |
Gold | $598.80 | +$10.10 |
Silver | $12.04 | +$0.32 |
XAU | 131.52 | +3.55% |
HUI | 308.83 | +3.69% |
GDM | 989.03 | +3.61% |
JSE Gold | 2760.24 | -1.42% |
USD | 86.26 | -0.62 |
Euro | 126.34 | +1.05 |
Yen | 84.67 | +0.62 |
Oil | $58.50 | +$0.85 |
10-Year | 4.786% | +0.022 |
T-Bond | 110.59375 | -0.1875 |
Dow | 12011.73 | +0.16% |
Nasdaq | 2340.94 | +0.16% |
S&P | 1366.96 | +0.07% |
The Metals:
Gold traded mostly slightly higher in Asia and London and dipped a couple dollars down to $586.00 in early New York trade, but it then spiked higher over the next 90 minutes of trade and briefly topped $600 before it dropped backed to about $595 and then rallied into the close and ended back near $600. Silver traded as low as $11.57 in early New York trade before it spiked higher to above $12 and fell back off a few cents, but it also rallied again and made new highs above $12 by the close. Gold ended with a gain of 1.72% while silver ended 2.73% higher.
Euro gold rose near €475, platinum gained $3 to $1,087, palladium gained $7 to $333, and copper gained nearly 5 cents to about $3.53.
Gold and silver equities rose about 2% at the open, fell back off a bit, rallied again in early afternoon trade, and closed with over 3.5% gains.
The Economy:
Report | For | Reading | Expected | Previous |
Initial Claims | 10/14 | 299K | 310K | 309K |
Leading Indicators | Sep | 0.1% | 0.3% | -0.2% |
Philadelphia Fed | Oct | -0.7 | 6.5 | -0.4 |
There are no major economic reports due out tomorrow.
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The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil rose as Saudi Arabia announced they support a cut in output, but no official OPEC decision was announced by the market close.
The U.S. dollar index fell on concerns that the economy is slowing too much as the Philadelphia Fed came in worse than expected and confirmed the slow down reported last month that some thought was an anomaly.
Treasuries fell after Initial Claims came in better than expected and pointed to a strong labor market, but losses were cut in half following the Philadelphia Fed report.
The Dow, Nasdaq, and S&P traded on either side of unchanged in a relatively tight range as mixed earnings reports battled with rising oil prices, but all three indices were able to end slightly higher on the day.
Among the big names making news in the market today were Google, NBC Universal, McDonald’s Honeywell, Citigroup, UPS, Bank of America, Pfizer, Novartis, Lilly, Wyeth, and Coca-Cola.
The Commentary:
“Just as gold was immediately taken down after the US inflation report this morning, the US stock futures markets all popped smartly to the upside after the release of the numbers, despite rates moving slightly higher. We have seen this same orchestrated PPT/Gold Cartel market moving action for some time now. The probability numbers of this happening so often have to be off the charts. Yep, let’s hear it again for free markets in America!
The DOW soared to 12,049 before getting slammed to go down on the day. That was not to last with the PPT lurking. Another Hail Mary close with the DOW leaping 43 to 11,992, thus making another all-time high for the headlines. To add to the headlines, there was the move above 12,000, prolonging the anticipation of a close above 12,000 and more gooing from the CNBC crowd.” - From yesterday’s Midas report by Bill Murphy of LemetropoleCafe.com
“December Gold finished up 9.9 at 602.5, 1.5 off the high and 13.3 up from the low.
December Silver closed up 0.34 at 12.16. This was 0.44 up from the low and 0.01 off the high.
An impressive recovery rally in the gold market seemed to come from a flurry of fresh bullish developments. In addition to a sharp rally in the oil market, the gold market also benefited from a sharp slide in the Dollar and perhaps from ideas that OPEC might be poised to invoke additional production cuts beyond the initially 1 million barrel per day figure. The gold market could have been derailed by the disappointed Philly Fed readings, which showed a decline in almost every sector. One might also suggest that a fresh terrorist threat in the US on Thursday morning might have prompted some fresh flight to quality buying. In the end, seeing a distinct upside run on the charts probably pulled in some speculative buying and it might also have generated some simple stop loss buying by traders that were seeking to press prices in the wake of the soft inflation readings and the initial idea that OPEC would fail to impress the market with their interest in reigning in excess supply. However, with OPEC members hinting at the prospects of an additional 500,000 barrel per day production cut, it is possible that the energy complex will find it difficult to forge another round of new lows. Seeing the potential for a bottom in oil prices is a clearly supportive development for the gold market.
The silver market also managed an impressive upward thrust on the charts and with the rise above the $12.00 level and above a few other key technical levels, we suspect that a few buyers on Thursday were covering short positions. As in the gold market the silver market was certainly lifted by the strength in oil prices and was perhaps helped to the gains in directly as a result of the sharp slide in the US Dollar. With copper and platinum prices hardly managed much in the way of gains on Thursday it was somewhat clear that the bullishness toward the metals was coming from the financial sector and not necessarily from the physical or industrial demand quadrant.” - The Hightower Report, Futures Analysis and Forecasting
The Statistics:
As of close of business: 10/18/2006
Gold Warehouse Stocks: | 7,695,184 | - 32,051 |
Silver Warehouse Stocks: | 105,451,277 | - |
Global Gold ETF Holdings
[WGC Sponsored ETF’s]
| Product name | Total Tonnes | Total Ounces | Total Value |
New York Stock Exchange (NYSE) AND Singapore Exchange (SGX) | Streettracks Gold Shares | 390.26 | 12,547,364 | US$ 7,451m |
LSE (London Stock Exchange) AND Euronext Paris | Gold Bullion Securities | 80.78 | 2,597,281 | US$ 1,557m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 9.98 | 320,733 | US$ 192m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 9.89 | 317,854 | US$ 188m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU)
Profile as of 10/18/2006 | |
Total Net Assets | $815,850,275 | 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 10/18/2006 | |
Total Net Assets | $1,214,285,314 | Ounces of Silver
in Trust | 103,280,281 |
Shares Outstanding | 10,350,000 | Tonnes of Silver
in Trust | 3,212.4 |
Note: Change in Total Tonnes from yesterday’s data: 31 tonnes were subtracted from the trust.
The Stocks:
Golden Star’s (GSS) debt facility, Orezone’s (OZN) Preliminary Assessment report, Entree’s (EGI) comments on Rio Tinto’s (RTP) investment in Ivanhoe (IVN), Agnico-Eagle’s (AEM) mine tour invitation, Kimber’s (KBX) drill results, Apogee’s (APE.V) drill results, Revett’s (RVM.TO) status update, and IMA’s (IMR) agreement with Aquiline (AQI.TO) were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Entree Gold | EGI +13.48% $1.60 |
2. Rio Narcea | RNO +7.95% $2.58 |
3. Great Basin | GBN +7.64% $1.69 |
LOSERS
1. New Gold | NGD -0.51% $7.85 |
2. Nevsun | NSU -0.37% $2.67 |
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:
Tassawini, Guyana preliminary metallurgical results - More
- October 19, 2006 | Item | E-mail
Diamond drilling program commences on the Seneca property - More
- October 19, 2006 | Item | E-mail
Notice DPM 2006 Third Quarter Financial Results - More
- October 19, 2006 | Item | E-mail
Canarc Closes Two Private Financings Totaling CA$4 Million - More
- October 19, 2006 | Item | E-mail
Tonogold Resources, Inc. Forms New Land Division - More
- October 19, 2006 | Item | E-mail
Pershimco Files its Annual Financial Statements for 2006 and Amends its First Quarterly Financial Report - More
- October 19, 2006 | Item | E-mail
Carmax Cuts 8.078% Cu Plus .065% MO and 6.954% Cu Plus .099 Mo. - More
- October 19, 2006 | Item | E-mail
Quinsam Capital Corporation closes acquisition of Churn property - More
- October 19, 2006
Gold Seeker Closing Report – Gold & Silver Gain Nearly 2% & 3%