-- Posted Wednesday, 8 November 2006 | Digg This Article
| Close | Gain/Loss |
Gold | $616.90 | -$8.80 |
Silver | $12.48 | -$0.12 |
XAU | 136.44 | -1.14% |
HUI | 327.50 | -0.38% |
GDM | 1039.36 | -0.75% |
JSE Gold | 2922.09 | +0.09% |
USD | 85.50 | +0.10 |
Euro | 127.67 | -0.17 |
Yen | 84.92 | -0.10 |
Oil | $59.83 | +$0.90 |
10-Year | 4.633% | -0.026 |
T-Bond | 112.5625 | +0.34375 |
Dow | 12176.54 | +0.16% |
Nasdaq | 2384.94 | +0.38% |
S&P | 1385.72 | +0.21% |
The Metals:
Gold remained near unchanged in Asia, dropped over $5 in mid-London trade, rebounded to near unchanged in morning New York trade, fell off to new lows in afternoon trade, and closed with a loss of 1.41%. Silver fell in mid-London trade before it rallied in morning New York trade and found slight gains at one point, but it also fell off into the close and ended with a loss of 0.95%.
Euro gold fell near €480, platinum lost $25 to $1,162, palladium lost $4 to $324, and copper fell over 10 cents to about $3.22.
Gold and silver equities dropped about 1% at the open before they rallied higher and found slight gains by late morning, but they then fell back off in the next 2 hours of trade and saw about 1% losses ahead of a small rally into the close that took the indices off of their lows.
The Economy:
There were no major economic reports today, but an MBA report showing rising mortgage applications and a record high Consumer Confidence report by ABC/Washington Post did have some talking. Also making news was Chicago Federal Reserve Bank President Michael Moskow who said that “the risk of inflation remaining too high is greater than the risk of growth being too low.” He also restated the possible need for interest rate hikes and said that another shock to the economy from high energy costs remains a risk.
Tomorrow at 8:30AM EST brings Import and Export Prices for October, Initial Jobless Claims for 11/04 expected at 318,000, and the Trade Balance for September expected at -$66.0 billion. At 9:50 is the preliminary reading for November Michigan Sentiment expected at 93.5 and at 10AM are Wholesale Inventories for September expected at 0.6%
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The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil rose as OPEC again pledged cuts and inventories did not come in as good as expected. Crude inventories built 400,000 barrels, gasoline inventories fell 600,000 barrels, and distillates fell 2.7 million barrels which was a much bigger draw than expected.
The U.S. dollar index found slight gains early on the election results and on some inflationary remarks from the fed’s Moskow, but it soon fell off and closed near unchanged ahead of tomorrow’s trade deficit data.
Treasuries rose on the election results and on a decent three-year note auction as a Democratically controlled House may make the government more fiscally responsible and make it harder to pass legislation to boost the budget.
The Dow, Nasdaq, and S&P fell in early trade, but they then rose in the last two hours of trade and ended with decent gains after it became more clear that Democratic gains in both the House and Senate would result in gridlock in congress and keep away any new laws from impacting business.
Among the big names making news in the market today were James River Coal, DirecTV, Dynegy, Cablevision, Airbus and EADS, McDonald’s, Federated, the NYSE, and Barr Pharmaceuticals.
The Commentary:
“The Mitsui hedging report, which came out today, is of interest in that so many years after GATA tore into the big hedgers for hurting their own product and facilitating the Gold Cartel price manipulation scheme, they are STILL covering those bullion banking influenced shorts …. 4 to 8 years later.
Back in the 1999 to 2002 days, the GATA forces focused on the stupidity of putting on these hedges. We were ignored by the Aussies, given grief by Barrick Gold, and dissed by many in the mainstream gold world for our views, which turned out to be very prescient.
The executives of these companies were supposed to be the brightest in the industry. But, it was the GATA camp that nailed what was going to happen and why. How could GATA get it so right for so many years and most of them get it so wrong? The amount of profit these executives, conned by, or in league with, The Gold Cartel, have cost their shareholders is staggering. And still, so many years later, they still maintain hedges put on at $300 plus or minus prices. Good grief!” - From yesterday’s Midas report by Bill Murphy of LemetropoleCafe.com
“December Gold finished down 9.4 at 618.3, 8.5 off the high and 0.3 up from the low.
December Silver closed down 0.125 at 12.55. This was 0.03 up from the low and 0.19 off the high.
The gold market started out weak, attempted to recover into positive ground into mid session and then fell off in the afternoon action. Surprisingly a rally in oil prices was of little benefit to gold prices and that might have been the result of the Dollar mostly avoiding ongoing weakness. According to various Press reports, the Democratic sweep of the House prompted some long liquidation in gold, and it is possible that talk of a possible Democratic edge in the Senate, added yet another push down in gold prices.
While the silver market fought a strong battle to remain positive on the session Wednesday, the significant weakness in the gold, platinum and copper markets was apparently too much for the silver trade. With the US equity market weak and the gold market weak, the silver market wasn't getting support from either of the flight to quality or physical demand themes. In fact, it is a little surprising that the sharp rally in grain prices failed to provide any inflationary psychology for the metals markets, but with the trade fearful of slowing, the whole idea of inflation is a tough sell.” - The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Treasury joins Fed in repo-like manipulation of money supply and markets
The Statistics:
As of close of business: 11/07/2006
Gold Warehouse Stocks: | 7,525,703 | +64 |
Silver Warehouse Stocks: | 106,818,120 | + 324,157 |
Global Gold ETF Holdings
[WGC Sponsored ETF’s]
| Product name | Total Tonnes | Total Ounces | Total Value |
New York Stock Exchange (NYSE) AND Singapore Exchange (SGX) | Streettracks Gold Shares | 404.03 | 12,989,976 | US$ 8,128m |
LSE (London Stock Exchange) AND Euronext Paris | Gold Bullion Securities | 89.10 | 2,864,680 | US$ 1,764m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 10.12 | 325,092 | US$ 200m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 9.88 | 317,784 | US$ 198m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU)
Profile as of 11/07/2006 | |
Total Net Assets | $854,229,478 | 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 11/07/2006 | |
Total Net Assets | $1,321,636,157 | 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:
Rubicon’s (RBY) drill program, Royal Gold’s (RGLD) dividend, New Gold’s (NGD) drill results, Anatolia’s (ANO.TO) project update, IAMGOLD’s (IAG) completed combination with Cambior (CBJ), Barrick’s (ABX) extended offer for NovaGold (NG), Pan American’s (PAAS) redemption of outstanding debentures, Silvercorp’s (SVM.TO) mining permit, and Silver Standard’s (SSRI) Board of Director appointment and third quarter results were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Great Basin | GBN+4.49% $1.86 |
2. IAMGOLD | IAG +3.71% $9.23 |
3. Cambior | CBJ +3.49% $3.86 |
LOSERS
1. Vista Gold | VGZ-5.45% $7.80 |
2. Miramar | MNG-5.40% $5.08 |
3. Seabridge | SA -3.57% $12.95 |
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:
Exeter Resource Corporation Lists on the American Stock Exchange Trading Symbol "XRA" - More
- November 08, 2006 | Item | E-mail
Pan American Silver Announces: Redemption of Outstanding Debentures - "Pursuant to the Redemption Notice the Debentures will be redeemed as of December 12, 2006 and each holder will be entitled to a redemption amount equal to US $1,019.27 for each US $1,000 principal amount of Debentures, being equal to the aggregate of (i) US $1,000 and (ii) all accrued and unpaid interest up to but excluding the Redemption Date (collectively, the "Total Redemption Price")." More
- November 08, 2006 | Item | E-mail
Barrick extends NovaGold bid after 22.5 pct accept - "Barrick, the world's biggest gold producer, requires 50.1 percent to gain control of NovaGold, which has rejected the offer as too low. Barrick has already extended its offer four times since launching the takeover bid in July. The latest extension is to Nov. 21. "I am embarrassed on their behalf that after nearly four months, they have managed to get 20 percent of the short-term arbitrage funds to tender only," said NovaGold Chief Executive Rick Van Nieuwenhuyse." More
- November 08, 2006 | Item | E-mail
Tagish Reports that Diamond Drilling Continues to Outline High Grade Zones - More
- November 08, 2006 | Item | E-mail
Drake Gold Announces Jackpot Placer Project Update - More
- November 08, 2006 | Item | E-mail
North American Palladium Third Quarter 2006 Financial Results and Conference Call - "North American Palladium Ltd. plans to release its third quarter financial results after market on Tuesday, November 14, 2006. A conference call to discuss the results will be held on Friday, November 17, 2006 at 8:30 a.m. ET, presided by Mr. James Excell, President & CEO and Ian MacNeily, VP Finance & CFO." More
- November 08, 2006 | Item | E-mail
ESO Uranium Corp. Welcomes Anthony Harvey As Chairman And Director - More
- November 08, 2006 | Item | E-mail
Rusoro Mining commences trading on TSXV - More
- November 08, 2006 | Item | E-mail
Yorbeau Continues its Exploration Work on the Mineralized Corridor Extension of the Former Augmitto Deposit - More
- November 08, 2006 | Item | E-mail
Royal Standard Minerals Announces Goldwedge Progress Update - More
- November 08, 2006 | Item | E-mail
Landmark Options 70% Interest in Peter Snout Property to Ucore Uranium - More
- November 08, 2006 | Item | E-mail
Antoro Resources Inc. Announces the Acquisition of the Carmen Lake "Uranerz" Project Next to Strateco's Matoush Project - More
- November 08, 2006 | Item | E-mail
Drill Permits granted for Gold Junction and Poker Flats Projects, Nevada - More
- November 08, 2006 | Item |
Gold Seeker Closing Report – Gold & Silver Fall About 1%