Gold rose a bit in early Asian trade, fell back off and came into London slightly lower, rose a little in London, and came into New York near $580.Gold fell over the next two hours to the low $570s, but it then rallied higher for the rest of trade and ended near its highs with a gain of 0.71%.Silver followed a similar pattern and rallied over 50 cents from its lows after dropping over 30 cents at the New York open.
Euro gold rose near €465, platinum lost $6 to $1,057, palladium gained $3 to $318, and copper fell a few cents to about $3.43.
Gold and silver equities dropped over 1% at the open, but they then rallied for the rest of morning trade and accomplished over 1% gains by early afternoon before they fell a bit into the close, but they still ended about 0.5% higher on the day.
The Economy:
There were no major economic reports today.Tomorrow at 10AM EST are Existing Home Sales for September expected at 6,250,000 and at 2:15PM is the FOMC policy statement which is expected to keep rates unchanged.
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Oil rose after the United Arab Emirates pledged to follow through on OPEC’s cut in oil exports, but the market remains confused and waits to see whether OPEC members will make their cuts through quotas or through actual production if they follow through.
The U.S. dollar index fell a bit as the yen gained on rumors “that the Japanese authorities may be about to intervene in the currency market to prop up the currency” and the euro gained a bit on a strong industrial orders in Europe, but any losses in the dollar were limited ahead of tomorrow’s fed meeting.
Treasuries remained near unchanged ahead of tomorrow’s fed meeting despite a strong 2-year note auction.
The Dow, Nasdaq, and S&P traded mixed and near unchanged due to various earnings reports as most awaited tomorrow’s fed meeting.
Among the big names making news in the market today were Alcatel, Amazon, BP, Lucent, Jet Blue, Lockheed, Northrop, DuPont, Whirlpool, Countrywide, BellSouth, and TD Ameritrade.
The Commentary:
“This might as well be a political market forum today, rather than one on gold and the financial markets. The Gold Cartel and PPT crew have gone into pre-election market rigging overdrive. All the focus in this column the past many months about this most important aspect of the US financial markets is crystallizing into a last blitzkrieg push by General Paulson and his various platoons.
The coming election in two weeks has the potential to be one of the most important in American history … for if President Bush loses both houses there is a possibility he could be impeached, due to the reasons for getting into the Iraq mess. It seems to me, and it has been this way for months, the best and only shot for the Republicans was to goose the US financial markets to where they wanted them … to create fear (their most used tactic) that if the Republicans aren’t voted back in the markets might fall apart.” - From yesterday’s Midas report byBill Murphy of LemetropoleCafe.com
“December Gold finished up 4.7 at 587.6, 1.4 off the high and 11.6 up from the low.
December Silver closed up 0.18 at 11.85. This was 0.5 up from the low and 0.045 off the high.
The gold market was certainly bailed out by the recovery in oil prices. However, given the start and stop action in the energy complex the gold market might need to see consistent confirmation of a bottoming in energy prices just to keep out from under the recent pattern of selling. It does seem like the $575 level managed to support prices but we also have to think a bit of a reversal in the Dollar inspired some gold shorts to bank profits. Certainly the weakness in gold prices since last week's highs is largely the result of sagging oil prices, one might also lay blame on hawkish Fed expectations and weak scheduled US economic numbers. News that Saudi Arabia and the UAE were informing customers of reduced November supplies, might actually serve to underpin oil prices but the oil market and therefore the gold market, will be watching the weekly distillate stock change on Wednesday morning for signs that early cool weather in the US is actually serving to tighten US supplies. Unfortunately, the gold market is locked in on energy market fundamentals and therefore the weekly inventory reports will be of interest to metals traders.
With December silver prices managing to rise by 47 cents off the session low on Tuesday, we suspect that the bear camp is feeling a bit of pain. Some traders are suggesting the negative psychology will return to the forefront in the event that December silver prices fail to hold above the Monday low of $11.65. Fortunately both copper and platinum prices managed to recoil from early weakness or the outside market impact on silver prices on Tuesday could have been much more significant. With the last two days action posting significant volume on price weakness the technical crowd would suggest that silver has to definitively throw off the bearish tilt with a rise back above the $12.00 level.” - The Hightower Report,Futures Analysis and Forecasting
New York Stock Exchange (NYSE) AND Singapore Exchange (SGX)
Streettracks Gold Shares
390.26
12,547,364
US$ 7,310m
LSE (London Stock Exchange) AND Euronext Paris
Gold Bullion Securities
83.67
2,690,135
US$ 1,571m
Australian Stock Exchange (ASX)
Gold Bullion Securities
9.98
320,716
US$ 187m
Johannesburg Securities Exchange (JSE)
New Gold Debentures
9.89
317,837
US$ 185m
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU)
Profile as of 10/23/2006
Total Net Assets
$803,057,251
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 10/23/2006
Total Net Assets
$1,209,037,396
Ounces of Silver in Trust
103,280,281
Shares Outstanding
10,350,000
Tonnes of Silver in Trust
3,212.4
Note: No change in Total Tonnes from yesterday’s data.
The Stocks:
Glamis Gold’s (GLG) earnings and Goldcorp (GG) combination update, Kirkland’s (KGI.TO) drill results, Barrick’s (ABX) $16.00 Best and Final Offer for NovaGold (NG), NovaGold’s advice to take no action on the takeover bid, Endeavour’s (EDR.TO) acquired silver project, Minefinders’ (MFN) completed sale of senior notes, and Silver Standard’s (SSRI) drill results were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1.Tanzanian Royalty
TRE +4.13% $5.80
2.NovaGold
NG +3.85% $15.65
3.Coeur d’Alene
CDE +2.96% $4.87
LOSERS
1.Banro
BAA -8.98% $10.75
2.Entree Gold
EGI -6.10% $1.54
3.US Energy
USEG -4.99% $4.19
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:
Colombia Goldfields engages leading colombian environmental consultants - More - October 24, 2006 | Item | E-mail
Greencastle Grants Options - More - October 24, 2006 | Item | E-mail
CR Structure Results/Second Drill Added at La Fortuna - More - October 24, 2006 | Item | E-mail
Production update - More - October 24, 2006 | Item | E-mail
Consolidated Global Minerals Ltd.: Front Rage Project Update - More - October 24, 2006 | Item | E-mail
Alma Provides La Seca, Los Tacotes, Reconaissance Update - More - October 24, 2006 | Item | E-mail
Ontex Commences 3,000 Meter Drilling Program on Brookbank Gold Deposit - More - October 24, 2006 | Item | E-mail
Barrick ups NovaGold offer, says best and final - "Barrick said its offer, now worth $1.7 billion, is its "best and final offer." The sweetener comes after Barrick extended the previous offer of $14.50 a share three times without changing the terms. "Recent discussions with some pointed us to this best and final offer being made," said Barrick spokesman Vince Borg." More - October 24, 2006 | Item | E-mail
American Bonanza Discovery: 14 Meters Grading 0.43% Nickel and 0.14% Copper at Fenelon Massive Sulfide Target - More - October 24, 2006 | Item | E-mail
Equal Trading Inc. is Investigating the Source of the False News - More - October 24, 2006 | Item | E-mail
Glamis profit soars on strong gold production - "Glamis Gold Ltd., which has agreed to be taken over by Goldcorp Inc., reported a 12-fold jump in third-quarter profit on Tuesday, thanks to increased output and higher gold prices. Glamis earned $19.2 million, or 11 cents a share, in the three months ended Sept. 30, up from $1.6 million, or 1 cent a share, in the same period a year earlier." More - October 24, 2006 | Item | E-mail
Howlett Research Corp. Publishes Research Report on Bralorne Gold Mines Ltd. - More - October 24, 2006 | It
Gold Seeker Closing Report – Gold & Silver Reverse Early Losses and End Higher
“This might as well be a political market forum today, rather than one on gold and the financial markets. The Gold Cartel and PPT crew have gone into pre-election market rigging overdrive. All the focus in this column the past many months about this most important aspect of the 
