-- Posted Wednesday, 1 November 2006 | Digg This Article
| Close | Gain/Loss |
Gold | $616.30 | $12.20 |
Silver | $12.41 | $0.21 |
XAU | 137.26 | -0.04% |
HUI | 319.83 | +0.31% |
GDM | 1031.94 | +0.15% |
JSE Gold | 2870.22 | +2.36% |
USD | 85.45 | +0.12 |
Euro | 127.68 | +0.06 |
Yen | 85.48 | -0.05 |
Oil | $58.71 | -$0.02 |
10-Year | 4.561% | -0.045 |
T-Bond | 113.15625 | +0.50 |
Dow | 12031.02 | -0.42% |
Nasdaq | 2334.35 | -1.37% |
S&P | 1367.81 | -0.74% |
The Metals:
Gold rose about $4 in Asia, traded between $608 and $612 in Asia, dipped to $608.40 at the New York open, and added almost $10 more before it fell back off a bit, but it then rallied into the close and ended near its highs with a gain of 2.02%. Silver rose about 10 cents in Asia and traded 10 to 20 cents higher in London before it dropped to $12.25 at the New York open, but it then rose near $12.50, fell back off a bit, rallied again into the close, and ended close to its highs with a 1.72% gain.
Euro gold rose above €485, platinum gained $14 to $1,094, palladium gained $2 to $320, and copper fell nearly 8 cents to about $3.27.
Gold and silver equities rose about 2% at the open before they fell off and traded slightly lower by early afternoon, but they did rebound a bit into to close and ended near unchanged.
The Economy:
Report | For | Reading | Expected | Previous |
ISM Index | Oct | 51.2 | 53.0 | 52.9 |
Construction Spending | Sep | -0.3% | 0.0% | 0.0% |
Tomorrow at 8:30AM EST brings Initial Jobless Claims for 10.28 expected at 310,000 and the preliminary reading for 3rd quarter Productivity expected at 1.1%. At 10AM is the Factory Orders report for September expected at 3.6%.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Crude inventories built 2.0 million barrels, gasoline inventories fell 2.8 million barrels, and distillates fell 2.7 million barrels. Refinery Runs came in at a higher than expected 2.7%. Oil fell on uncertainty about pledged OPEC cuts as it is unclear which member countries are actually following through on their cuts, but it did rebound in late trade and ended just barely lower as inventory reports were not quite as good as expected.
The U.S. dollar index fell and treasuries gained on weak economic data, but the dollar did rebound and ended slightly higher on news that Canada will tax income trusts. This news sent the Canadian dollar to 2 week lows versus the US dollar as it may influence overseas holders to pull out of the market.
The Dow, Nasdaq, and S&P fell on concerns about the economy and on mixed earnings.
Among the big names making news in the market today were Ford, DaimlerChrysler, Cigna, Burger King, Marsh & McLennan, CVS and Caremark, Time Warner, Sandell, and MasterCard.
The Commentary:
“This morning I see comments that a firmer dollar and sinking oil are weighing on gold. There are many market factors which affect the price of gold, but on a short term basis, they are very secondary to what The Gold Cartel does vis-à-vis the physical market. The rest is noise. Yesterday was a perfect example. Gold soared while the dollar was up and oil was sinking. This move back down had nothing to do with either. The dollar/oil action had nothing to do with the weakness in the HUI. It was the crooked cabal with their daily market machinations, pure and simple.” - From yesterday’s Midas report by Bill Murphy of LemetropoleCafe.com
“December Gold finished up 12.5 at 619.3, 0.4 off the high and 8.3 up from the low.
December Silver closed up 0.205 at 12.475. This was 0.125 up from the low and 0.115 off the high.
The gold market started out slightly impressive and then became even more impressive as the session progressed. With gold rising on strong volume and open interest and the market forging the gains in the face of partially negative outside market forces, it is pretty clear that metals traders are focusing on something supportive. While some might suggest that the weakness in the US economic numbers is creating uncertainty and flight to quality buying interest, it is more likely that the buyers are merely anticipating further weakness in the US Dollar. In fact, the gold market was presented with sliding crude oil prices and news that Russian gold output was likely to reach 200 tons by 2010 and yet neither of those developments served to discourage the buyers. Certainly given the upside progression on the charts sparked some stop loss buying and perhaps even fresh outright buying. Just to highlight the ongoing "spin" of the fundamentals, some players even attributed the gains in the Gold market to the overt weakness in the US equity market.
With a solid upward spike in December silver it is possible that a good portion of the buying interest on Wednesday was technical in nature. However, the silver market did have some fundamental justification for the sharp rally on Wednesday, as the market was made aware of a 4.8% decline in August Mexican silver production. Even more surprising is the fact that the silver market sustained the strength despite the fact that copper and equity prices at times were under significant pressure. In the end the trade seems to be emboldened by the price action and the apparent level of trading interest in the market at even higher trading ranges.” - The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
AngloGold Ashanti continues to reduce forward sales of gold
John Hathaway: Gold can triple without any catastrophe
Ted Butler: A red flag?
The Statistics:
As of close of business: 10/31/2006
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$ 7,543m |
LSE (London Stock Exchange) AND Euronext Paris | Gold Bullion Securities | 83.66 | 2,689,897 | US$ 1,664m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 10.08 | 323,847 | US$ 200m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 9.88 | 317,809 | US$ 191m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU)
Profile as of 10/31/2006 | |
Total Net Assets | $824,797,617 | Ounces of Gold
in Trust | 1,365,789.764 |
Shares Outstanding | 13,750,000 | Tonnes of Gold
in Trust | 42.48 |
Note: No change in Total Tonnes from yesterday’s data.
Silver Trust (SLV)
Profile as of 10/31/2006 | |
Total Net Assets | $1,265,190,571 | 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:
Newmont’s (NEM) earnings, management appointments and changes, and dividend, Barrick’s (ABX) dividend, Crystallex’s (KRY) drill program, Northern Orion’s (NTO) project in Argentina, DRDGOLD’s (DROOY) NASDAQ bell ringing, Richmont’s (RIC) announcement, Rubicon’s (RBY) exploration activities, Fury’s (FUR.V) Board appointment, Pan American’s (PAAS) completed construction, Minefinders’ (MFN) drill results, and Sabina’s (SBB.V) drill results were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Kimber | KBX +10.88% $2.14 |
2. Arizona Star | AZS +6.76% $10.74 |
3. Almaden | AAU +5.71% $2.59 |
LOSERS
1. Mines MGMT | MGN -6.25% $6.00 |
2. Cardero | CDY -5.00% $1.71 |
3. Taseko | TGB -4.69% $2.44 |
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:
Asia Gold and Ivanhoe Mines Agree to More Time to Complete Mongolian Coal Acquisition Agreement - More
- November 01, 2006 | Item | E-mail
Crystallex Launches 40-hole Drilling Program at Las Cristinas - "Crystallex International Corporation today announced that it commenced a diamond drill program at its Las Cristinas, Venezuela property on October 31st, 2006. It is estimated that the drill program will be concluded by the end of January 2007 and that an updated resource and reserve estimate will be completed by the end of May, 2007. The cost of the program is estimated at US$1.6 million." More
- November 01, 2006 | Item | E-mail
Gold & Silver Minerals Appoints New Member to the Board of Directors - More
- November 01, 2006 | Item | E-mail
Wescan completes acquistion of Jojay Gold Deposit - More
- November 01, 2006 | Item | E-mail
Newmont Announces Executive Management Appointments & Changes - "Newmont Mining Corporation announced today the planned retirement of Pierre Lassonde on December 31, 2006 from his full-time role as President of Newmont Mining Corporation. Mr. Lassonde will continue his employment in a part-time capacity, providing strategic guidance to the Company, and will serve as Vice Chairman of the Newmont Board of Directors, effective January 1, 2007." More
- November 01, 2006 | Item | E-mail
Cameco plans Cigar Lake repairs, posts profit dip - More
- November 01, 2006 | Item | E-mail
Newmont Declares Regular Quarterly Dividend - "The Board of Directors of Newmont Mining Corporation today declared a regular quarterly dividend of $0.10 per share, payable December 28, 2006 to holders of record at the close of business on December 7, 2006." More
- November 01, 2006 | Item | E-mail
HE-5 Resources, Corp. Declares Cash Dividend on Common Stock - More
- November 01, 2006 | Item | E-mail
Freegold to raise $1.5 million in debt and equity financing - More
- November 01, 2006 |
Gold Seeker Closing Report – Gold & Silver Rise About 2%