Gold traded over $3 lower in early Asian trade before it rebounded and traded on either side of unchanged in a tight range in London.It then climbed a few dollars in early New York trade, fell back off near unchanged, again rose a few dollars in late morning trade, and then fell back off into the close and ended just slightly higher on the day.Silver fell roughly 20 cents to about $12.50 in early Asian trade before it moved steadily higher in London and New York and got back up near unchanged on the day, but it then fell back off at the close and ended with a loss of 0.71%.
Euro gold fell slightly under €490, platinum lost $1 to $1,187, palladium lost $3 to $328, and copper rose a couple cents to above $3.33.
Gold and silver equities rose over 1% at the open before they fell back near unchanged by late afternoon, but they then rebounded a bit at the close and ended slightly higher on the day.
The Economy:
Report
For
Reading
Expected
Previous
Consumer Credit
Sep
-$1.2B
$5.5B
$9.1B
Consumer Credit fell the most since 1992 to $2.37 trillion.There are no major economic reports due out tomorrow.
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Oil fell on easing geopolitical worries in Nigeria as most looked ahead to tomorrow’s inventory reports which are expected to show small builds in crude and gasoline stocks.
The U.S. dollar index fell markedly as the yen rose on indications the Bank of Japan may raise interest rates later this year.The dollar was also hurt from comments by San Francisco Fed President Janet Yellen that suggested foreigners may be diversifying away from the dollar.
Treasuries rose after Cleveland Federal Reserve President Sandra Pianalto said she does “not believe inflation will accelerate further.”
The Dow, Nasdaq, and S&P rose on signs of political gridlock after today’s elections.
Among the big names making news in the market today were Emerson Electric, Toll Brothers, EchoStar, Sara Lee, and Revlon.
The Commentary:
“A month ago, with gold a little above $580, it was the MIDAS contention gold would move "irregularly higher" going into the election … my thinking was $620 gold and it has done better than that. The reasoning was based on the notion that a number of the bad guys would want to cover ahead of the election because they know what was done to gold and what is coming in the months ahead as a result of the "ordered" takedown of gold.
The move up to these levels was STEP 1. STEP 2 is for the price of gold, and silver, to explode in the months to come. The first step for gold will be to take out $640. Once that key level is pierced, it will be all she wrote. GONZO!” - From yesterday’s Midas report byBill Murphy of LemetropoleCafe.com
“December Gold finished down 0.2 at 627.7, 3.5 off the high and 1.5 up from the low.
December Silver closed down 0.085 at 12.675. This was 0.055 up from the low and 0.095 off the high.
With the Dollar falling sharply on ideas from the Fed's Yellen that more central bank diversification might be ahead for the Dollar, it is a little surprising that the gold market failed to mount a rally on Tuesday. In fact, with the Dollar falling to the lowest level since September 11th during the session that should have given the gold bulls a lift. However, a sharp rally in the stock market and a steep slide in energy prices from early highs seemed to discourage the buyers in gold. With the sharp upward thrust in equity prices, it is also possible that some flight to quality traders in the gold market decided to exit before the election was totally past and the expectation of election problems were found to be insignificant. While oil prices were sunk by domestic price forecasts from the EIA on Tuesday, it does seem like there is a pattern of rising terrorism uncertainty in the oil market and that could serve to underpin energy prices and in turn keep gold selling interest off weak oil prices to a minimum.
Technically the December silver contract forged an inside day down on the charts and that is partially undermining. However, seeing sharp gains in copper prices and a more upbeat demand dialogue flowing from China in the copper market might be an indirect support to silver in the face of sagging gold prices. However, with the Treasury bond market soaring on renewed US housing market concerns Tuesday morning, the hope of renewed Chinese physical demand for metals from the overnight Trade Tuesday was probably more than offset by concerns of slumping US metals demand. It also seems like soaring equity prices are serving to rob the silver market of some investment interest. Like the gold market, silver prices also failed to benefit Tuesday from the ultra weak US Dollar!” - The Hightower Report,Futures Analysis and Forecasting
New York Stock Exchange (NYSE) AND Singapore Exchange (SGX)
Streettracks Gold Shares
404.03
12,989,976
US$ 8,132m
LSE (London Stock Exchange) AND Euronext Paris
Gold Bullion Securities
89.10
2,864,712
US$ 1,797m
Australian Stock Exchange (ASX)
Gold Bullion Securities
10.12
325,095
US$ 204m
Johannesburg Securities Exchange (JSE)
New Gold Debentures
9.88
317,788
US$ 198m
Note: Change in Total Tonnes from yesterday’s data: The NYSE added 1.11 tonnes and the LSE added 1.09 tonnes.
COMEX Gold Trust (IAU)
Profile as of 11/06/2006
Total Net Assets
$854,375,375
Ounces of Gold in Trust
1,365,342.180
Shares Outstanding
13,750,000
Tonnes of Gold in Trust
42.47
Note: No change in Total Tonnes from yesterday’s data.
Silver Trust (SLV)
Profile as of 11/06/2006
Total Net Assets
$1,310,133,205
Ounces of Silver in Trust
104,735,443
Shares Outstanding
10,500,000
Tonnes of Silver in Trust
3,257.6
Note: No change in Total Tonnes from yesterday’s data.
The Stocks:
Barrick’s (ABX) redemption of preferred securities, Fronteer’s (FRG) drill results, Gammon Lake’s (GRS) monthly gold production, Vista Gold’s (VGZ) closed public offering of common shares, Gold Reserve’s (GRZ) debt financing arranger appointment, Seabridge’s (SA) drill results, Golden Star’s (GSS) quarterly results, Stillwater Mining’s (SWC) quarterly results, Cambior’s (CBJ) shareholder approval of the IAMGOLD (IAG) transaction, First Majestic’s (FR.V) closed acquisition of DESMIN, Fortuna’s (FVI.V) concentrate shipment, and Apogee’s (APE.V) drill results were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1.Miramar
MNG+11.41% $5.37
2.Minco
MMK +6.76% $1.58
3.Richmont
RIC +4.17% $3.00
LOSERS
1.Fronteer
FRG -5.34% $7.62
2.DRDGOLD
DROOY-4.84% $1.18
3.Claude
CGR -4.44% $1.29
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:
Barrick Announces Full Redemption of 8.5% Series B Preferred Securities - "Barrick Gold Corporation today announced that it will redeem on December 18, 2006 all of the outstanding Placer Dome Inc. 8.5% Series B Preferred Securities "Series B COPrS" due December 31, 2045 for cash at a redemption price of US$1,039.43 per US$1,000 aggregate principal amount. This redemption price is comprised of the outstanding principal amount plus accrued and unpaid interest to December 17, 2006. Barrick intends to use approximately US$80 million to fund the redemption." More - November 07, 2006 | Item | E-mail
Drilling Program Begins on High Plains' Sand Creek JV - More - November 07, 2006 | Item | E-mail
International Star Inc. Announces Appointment of New Director and Repayment of Outstanding Loan Balance - More - November 07, 2006 | Item | E-mail
News Release: Purepoint Uranium Group Inc. - More - November 07, 2006 | Item | E-mail
Explor Resources Inc.: Drill Program to Start Launay Gold Property - More - November 07, 2006 | Item | E-mail
Lincoln Gold Completes Soil Survey on La Bufa Property, Chihuahua, Mexico - More - November 07, 2006 | Item | E-mail
Houston Lake to Raise $1 Million in a Private Placement Financing With Max Capital Markets Ltd. - More - November 07, 2006 | Item | E-mail
Newgold Becomes First Mining Company Granted Exploration Rights to Giant Nevada Property - More - November 07, 2006 | Item | E-mail
Exall Resources Limited and Southern Star Resources Inc. Update - Merger - More - November 07, 2006 | Item</
Gold Seeker Closing Report – Gold & Silver End Mixed Again
“A month ago, with gold a little above $580, it was the MIDAS contention gold would move "irregularly higher" going into the election … my thinking was $620 gold and it has done better than that. The reasoning was based on the notion that a number of the bad guys would want to cover ahead of the election because they know what was done to gold and what is coming in the months ahead as a result of the "ordered" takedown of gold.
