-- Posted Thursday, 26 October 2006 | Digg This Article
| Close | Gain/Loss |
Gold | $596.60 | +$9.40 |
Silver | $12.14 | +$0.35 |
XAU | 134.20 | -0.45% |
HUI | 314.47 | -0.53% |
GDM | 1008.10 | -0.38% |
JSE Gold | 2890.61 | -1.79% |
USD | 85.90 | -0.54 |
Euro | 126.87 | +0.97 |
Yen | 84.48 | +0.55 |
Oil | $60.36 | -$1.04 |
10-Year | 4.721% | -0.052 |
T-Bond | 111.34375 | +0.65625 |
Dow | 12163.66 | +0.24% |
Nasdaq | 2379.10 | +0.96% |
S&P | 1389.08 | +0.50% |
The Metals:
Gold gained about $5 in after hours access trade yesterday, held most of its gains in Asia and London, and rose near $600 in New York before it fell back off a bit, but it still ended with a gain of 1.60%. Silver followed a similar pattern but remained near its highs into the close and ended with a gain of 2.97%.
Euro gold rose above €470, platinum gained $12 to $1,076, palladium gained $4 to $322, and copper remained at about $3.42.
Gold and silver equities rose slightly at the open, quickly fell off to find about 1% losses by late morning, rebounded to find slight gains by early afternoon, fell back off into the close, and ended slightly lower.
The Economy:
Report | For | Reading | Expected | Previous |
Initial Claims | 10/21 | 308K | 308K | 300K |
Durable Orders | Sep | 7.8% | 2.3% | -0.1% |
Help-Wanted Index | Sep | 30 | 31 | 30 |
New Home Sales | Sep | 1075K | 1050K | 1021K |
“The Commerce Department reported that the median price for a new home sold in September was $217,100, a drop of 9.7 percent from September 2005. It was the lowest median price for a new home since September 2004 and the sharpest year-over-year decline since December 1970. The weakness in new home prices was even sharper than a 2.5 percent fall in the price of existing homes last month, which had been the biggest drop on record.”
Tomorrow at 8:30AM EST is the advanced reading for third quarter GDP expected at 2.1%. The Chain Deflator is expected at 2.8%. At 9:50 is the revised reading of October Michigan Sentiment expected at 92.5.
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The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil started higher in continued reaction to yesterday’s supply draws, but it soon fell off on profit taking and ended over a dollar lower as inventories are still at higher levels than a year ago.
The U.S. dollar index fell on the outlook for steady interest rates and on comments by Greenspan who noted “that both private investors and central banks were shifting away from the U.S. dollar and toward the euro.”
Treasuries rose despite a weaker than expected 5 year note auction as economic data reinforced the view that the fed is unlikely to raise interest rates anytime soon.
The Dow, Nasdaq, and S&P opened higher, fell off to find slight losses after New Home Sales data, rose as oil fell, and ended with decent gains by the close.
Among the big names making news in the market today were Red Hat, the SEC and Congress, Bristol-Myers, Sony, Comcast, Raytheon, Ghosn, Coca-Cola, Kellogg, US Airways, Dow Chemical, Exxon Mobil, Aetna, and Sprint Nextel.
The Commentary:
“*The HUI is leading the way up. It broke out today, decisively. It made new recent highs by a wide margin, breaking out of a well formed base, while both gold and silver are well off recent highs. This makes sense. The Gold Cartel have moved the shares down ahead of the election. They want out, or want IN because they know what is coming in the months ahead.
*Gold is moving irregularly higher. The move up should continue into the elections on November 7. However, super excitement will not be allowed until the elections are over. So far this has been the case … and very evident the past two trading sessions. Meanwhile, general interest in the gold and silver markets remains moribund in the West.” - From yesterday’s Midas report by Bill Murphy of LemetropoleCafe.com
“December Gold finished up 9 at 599.8, 1.7 off the high and 6.8 up from the low.
December Silver closed up 0.35 at 12.24. This was 0.21 up from the low and 0.04 off the high.
While the bull camp might have been happy with getting the Fed and weaker oil prices off their back, we suspect that the developing weakness in the US Dollar is beginning to take on added importance in the markets psychology. Certainly seeing the December gold contract climb back above $600 during the session on Thursday gave added technical credence to the idea of a bottoming, but in the event that the Dollar continues to slide, it is possible that the daily ebb and flow of energy prices will be relegated to a less important role in the gold market. With the ex Chairman Greenspan suggesting on Thursday that the Euro is an equal partner to the Dollar and also suggesting that more and more holdings will shift from the Dollar to the Euro, we suspect that the flight to quality crowd in the Gold market is emboldened. In the end, the economic numbers released during the session weren't specifically noted to be responsible for much of a reaction in gold prices, but the numbers on their face were clearly supportive.
A huge upward extension on the charts in silver probably sparked short covering and perhaps fresh speculative buying. It is likely that gold gains provided silver with the majority of its strength but it is also possible that strength in the copper, lead and zinc markets also helped the silver market forge gains on the charts. With the December contract forging a clear run up above the $12.00 level the trade certainly has to recognize an improvement in both the technical and fundamental condition in silver.” - The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Peter Brimelow: Bulls bask, but bears and bugs regrouping
GATA holds reception at New Orleans conference Nov. 18
Treasury's Paulson plays with the plunge protectors
Will defeat in Iraq herald a repeat of post-Vietnam economic ills?
The Statistics:
As of close of business: 10/25/2006
Gold Warehouse Stocks: | 7,565,823 | - |
Silver Warehouse Stocks: | 105,307,961 | + 227,183 |
Global Gold ETF Holdings
[WGC Sponsored ETF’s]
| Product name | Total Tonnes | Total Ounces | Total Value |
New York Stock Exchange (NYSE) AND Singapore Exchange (SGX) | Streettracks Gold Shares | 388.72 | 12,497,746 | US$ 7,256m |
LSE (London Stock Exchange) AND Euronext Paris | Gold Bullion Securities | 83.67 | 2,690,076 | US$ 1,606m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 10.08 | 323,868 | US$ 193m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 9.89 | 317,830 | US$ 184m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU)
Profile as of 10/25/2006 | |
Total Net Assets | $813,986,213 | 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 10/25/2006 | |
Total Net Assets | $1,213,135,681 | 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:
Quarterly reports from Richmont (RIC), Agnico-Eagle (AEM), and Gold Fields’ (GFI), Glamis Gold’s (GLG) shareholder approved combination with Goldcorp(GG), Royal Gold’s (RGLD) acquired royalty, Great Basin’s (GBN) JSE listing, Northern Orion’s (NTO) Feasibility Study Update, Centerra Gold’s (CG.TO) drill results, Entree Gold’s (EGI) drill results, Minefinders’ (MFN) construction update, and SilverCrest’s (SVL.V) drill results were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Ivanhoe | IVN +15.35% $11.20 |
2. Entree Gold | EGI +11.39% $1.84 |
3. Mines MGMT | MGN +5.27% $5.79 |
LOSERS
1. Lihir Gold | LIHR -3.22% $21.05 |
2. Coeur d’Alene | CDE -2.84% $4.79 |
3. Richmont | RIC -2.48% $2.45 |
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:
Goldrea/Tortuga Outline Strategic Plan for China - More
- October 26, 2006 | Item | E-mail
Louvem Mines Announces its Third Quarter Results for 2006 - More
- October 26, 2006 | Item | E-mail
Private placement with Sodemex II- LP. - More
- October 26, 2006 | Item | E-mail
Sirios Resources Inc.: Private Placement Announcement - More
- October 26, 2006 | Item
Gold Seeker Closing Report – Gold & Silver Gain While Miners Fall