-- Posted Monday, 30 October 2006 | Digg This Article
| Close | Gain/Loss |
Gold | $604.40 | +$6.40 |
Silver | $12.12 | +$0.12 |
XAU | 133.72 | +0.53% |
HUI | 311.69 | +0.38% |
GDM | 1005.59 | +0.53% |
JSE Gold | 2865.65 | +2.10% |
USD | 85.56 | +0.03 |
Euro | 127.26 | -0.09 |
Yen | 85.15 | +0.13 |
Oil | $58.36 | -$2.39 |
10-Year | 4.673% | -0.002 |
T-Bond | 111.90625 | +0.0625 |
Dow | 12086.50 | -0.03% |
Nasdaq | 2363.77 | +0.56% |
S&P | 1377.93 | +0.04% |
The Metals:
Gold rose about $5 in Asia and London and surged about another $7 higher in New York to over $610 before it fell back off a bit into the close, but it still ended with a gain of 1.07%. Silver rose to about $12.20 in London before it fell back near $12.00 in early New York trade, but it then rebounded in late morning trade, fell back off a bit in afternoon trade, and ended with a gain of 1.00%.
Euro gold rose to €475, platinum gained $10 to $1,085, palladium gained $5 to $323, and copper fell roughly 5 cents to about $3.35.
Gold and silver equities rose over 2% in the first ½ hour of trade, but they then steadily fell off for the rest of trade and ended with less than 1% gains.
The Economy:
Report | For | Reading | Expected | Previous |
Personal Income | Sep | 0.5% | 0.3% | 0.4% |
Personal Spending | Sep | 0.1% | 0.3% | 0.2% |
Year over year Core PCE came in at 2.4% which was near the 11 and ½ year high of 2.5% reported last month, but monthly Core PCE came in at just 0.2% and that eased inflation fears a bit. Inflation/interest rate fears were later raised, however, after Richmond Federal Reserve President Jeffrey Lacker noted in a speech that “the economy is resilient enough right now to withstand further policy tightening.”
Tomorrow at 8:30AM EST is the Employment Cost Index report for the 3rd quarter expected at 0.9%. At 10AM are Chicago PMI for October expected at 58.0 and Consumer Confidence for October expected at 107.8.
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The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil fell over 3% as fears over a threat to Saudi oil operations eased. Speculation over healthy supplies in this week’s inventory report also encouraged selling.
The U.S. dollar index remained near unchanged ahead of a busy economic week as the interest rate outlook remained relatively unchanged.
Treasuries rose slightly on tame monthly inflation data, but gains were limited as year over year data was not so tame.
The Dow, Nasdaq, and S&P fell on consumer fears raised by poor sales at Wal-Mart, but all three indices rallied back and ended near unchanged as oil ended over 3% lower.
Among the big names making news in the market today were Delphi, Monster, Ford, Wal-Mart, Schneider and APC, Clear Channel, Verizon, and Humana.
The Commentary:
“The Gold Cartel was not to be totally outdone. While a very firm cash market spoiled their gold takedown plans today, and the PPT took a licking, the cabal countered near the end of the day by bashing the HUI … down 3.96 to 310.51. That makes it two days in a row that gold went up and the HUI went down … after a decisive breakout. We are back to that word sickening again, and I thought I could ease up with the histrionics.
At the end of the day though, it was not a good one for the PPT and Gold Cartel. It may just be they really are running out of gas. I wouldn’t count them out, of course, but today might a sign that times are going to change substantially in the very near future.
Only 7 more trading days and the elections will be behind us. This has been some long haul these past months, but soon it will have been worth the wait.” - From Friday’s Midas report by Bill Murphy of LemetropoleCafe.com
“December Gold finished up 6.4 at 607.4, 5.8 off the high and 3.1 up from the low.
December Silver closed up 0.17 at 12.25. This was 0.13 up from the low and 0.045 off the high.
With another range up move, the bull camp continues to throw off more of the dominatingly bearish stance seen into the beginning of the month. Apparently the gold market was being supported in part by the new terrorism threats against Saudi Arabia and perhaps because of the idea that the US stock market was under aggressive pressure. However, the gold market certainly wasn't getting support from the sharp slide in energy prices and certainly the gold market was getting much help from the action in the Dollar. In fact, the gold market managed to hold higher levels despite news that some gold production was set to rise in the 4th quarter. Despite some attempts to bank profits in the early afternoon action, the gold market stood up extremely well to potentially negative outside market influences. Some traders think that the gold market was looking beyond the short sighted idea that a terrorism incident wasn't seen in Saudi Arabia over the weekend, to the prospect of future attacks against a very critical cog in the energy supply chain.
The silver market continued to be led around by the strength in the gold market and with the silver market apparently totally ignoring significant weakness in the copper market, it certainly seems like the silver is trading anything but physical supply and demand ideas. While the gold market was supposedly lifted by fund buying during the action on Monday, the trade generally didn't see that same type of Press coverage in the silver market. In general the gains on Monday in silver seemed to leave the market in the same positive position as was seen last week and that could help the silver market avoid selling this week in the face of soft US economic readings.” - The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
China looking for ways to tiptoe out of huge dollar surplus
Why would anyone want gold? ....
... When there's so much other money lying around?
Dmitri Speck: Gold market interventions
Deal with operators completes Bolivia's oil and gas nationalization
Top U.S. govt. accountant warns of economic disaster
The Statistics:
As of close of business: 10/27/2006
Gold Warehouse Stocks: | 7,565,823 | - |
Silver Warehouse Stocks: | 105,312,961 | - |
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$ 7,449m |
LSE (London Stock Exchange) AND Euronext Paris | Gold Bullion Securities | 83.67 | 2,689,957 | US$ 1,626m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 10.08 | 323,854 | US$ 196m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 9.89 | 317,816 | US$ 189m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU)
Profile as of 10/27/2006 | |
Total Net Assets | $828,656,123 | 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 10/27/2006 | |
Total Net Assets | $1,262,116,544 | Ounces of Silver
in Trust | 104,776,594 |
Shares Outstanding | 10,500,000 | Tonnes of Silver
in Trust | 3,258.9 |
Note: No change in Total Tonnes from yesterday’s data.
The Stocks:
AngloGold Ashanti’s (AU) earnings, Richmont’s (RIC) closed sale, and Gold Fields’ (GFI) Dubai listing and mailed offer documents to Western Areas shareholders were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Great Basin | GBN +6.13% $1.73 |
2. Rio Narcea | RNO +5.84% $2.90 |
3. Richmont | RIC +5.62% $2.63 |
LOSERS
1. Ivanhoe | IVN-4.12% $10.23 |
2. Orezone | OZN -4.03% $1.43 |
3. Aurizon | AZK -3.17% $2.75 |
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:
Richmont Mines Announces the Closing of the Sale of the Nugget Pond Gold Property - "Richmont Mines is pleased to announce it has received from New Island Resources Inc. a final cash consideration of CAN$2,250,000 to complete the sale of the Nugget Pond property and gold mill located on the Baie Verte Peninsula in Newfoundland. This sale results in Richmont Mines being released from all reclamation and other liabilities relating to this property and the $843,659 letter of credit held by the Government of Newfoundland and Labrador to guarantee reclamation will be returned to Richmont Mines in the next few days." More
- October 30, 2006 | Item | E-mail
Baltic Resources Announces Website Launch - More
- October 30, 2006 | Item | E-mail
Richview Resources Inc. Changes its Joint Venture Holdings on the Headway and Pickle Crow Properties - More
- October 30, 2006 | Item | E-mail
RSM Hires CFO, Engages New Corporate Counsel and Hires Investor Relations Firm - More
- October 30, 2006 | Item | E-mail
Sargold Restructures Monte Ollasteddu Agreement With Gold Fields - More
- October 30, 2006 | Item | E-mail
Crew Gold to Acquire Nugget Pond Processing Facility - More
- October 30, 2006 | Item | E-mail
Gold Seeker Closing Report – Gold & Silver Gain 1%