-- Posted Monday, 13 November 2006 | Digg This Article
| Close | Gain/Loss |
Gold | $624.40 | -$4.00 |
Silver | $12.82 | -$0.19 |
XAU | 138.71 | -0.17% |
HUI | 331.40 | -0.30% |
GDM | 1056.37 | -0.34% |
JSE Gold | 2853.39 | -2.25% |
USD | 85.39 | +0.34 |
Euro | 128.02 | -0.45 |
Yen | 84.62 | -0.40 |
Oil | $58.58 | -$1.01 |
10-Year | 4.605% | +0.019 |
T-Bond | 112.8125 | -0.15625 |
Dow | 12131.88 | +0.19% |
Nasdaq | 2406.38 | +0.70% |
S&P | 1384.42 | +0.25% |
The Metals:
Gold rose over $3 in early Asian trade, fell back near unchanged by the open in London, dropped over 1% in mid-London trade and fell near $620 at the New York open, but it then rebounded nearly 1% from its lows and closed with a loss of 0.64%. Silver dropped under $12.70 before it rebounded about 15 cents from its lows, but it still closed with a loss of 1.46%.
Euro gold fell under €490, platinum lost $10 to $1,200, palladium lost $3 to $324, and copper remained at about $3.16.
Gold and silver equities fell over 2% at the open and remained near their lows in the first 4 hours of trade, but they then rallied higher in the last 2 and ½ hours of trade and ended with minimal losses.
The Economy:
Report | For | Reading | Expected | Previous |
Treasury Budget | Oct | -$49.3B | -$49.0B | -$47.3B |
Tomorrow at 8:30AM EST are PPI for October expected at -0.5%, Core PPI expected at 0.1%, Retail Sales for October expected at -0.4%, and Retail Sales excluding auto sales expected at -0.3%. At 10AM is the Business Inventories report for September expected at 0.5%.
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The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil fell on doubts over OPEC cuts and on warmer than expected weather that is cutting into US demand.
The U.S. dollar index rose and treasuries fell as traders positioned themselves for economic reports later in the week.
The Dow, Nasdaq, and S&P rose on hopes for signs of economic growth without inflationary concerns in this week’s slew of economic data.
Among the big names making news in the market today were Tyson Foods, Isis, Clear Channel, Morgan Stanley, and UnitedHealth.
The Commentary:
“In the last 3 days we have seen gold hit hard, rocket, and then taken down again below the previously defended $630 mark … all fairly big moves. The battle is picking up steam, as evidenced by the increasing volatility, which is positive as it indicates The Gold Cartel has their hands full.
When it comes to market action, silver was a noticeable standout. When gold was hit early and copper was falling apart, dropping 17 cents early, silver refused to go down, and went POSITIVE mid-day. Even when gold was taken down a second time, silver held its ground and closed above $13 per ounce. Those looking for silver to fall apart with copper must be sorely disappointed for the moment.” - From Friday’s Midas report by Bill Murphy of LemetropoleCafe.com
“December Gold finished down 4.3 at 625.8, 1.5 off the high and 4.3 up from the low.
December Silver closed down 0.23 at 12.885. This was 0.17 up from the low and 0.06 off the high.
While the gold market didn't exactly extend last weeks currency related strength as many in the trade expected, one could suggest that gold prices were lucky to have avoided more significant losses. In fact, with oil prices down sharply and that market anticipating even more declines ahead, the uncertainty off oil and inflation is certainly missing. With the gold market soon to be confronted with slack US inflation readings and the Dollar managing to throw off its recent pattern of weakness the metals had almost nothing to hang their hat on during the Monday session. With the US Energy Secretary suggesting that he wasn't "unhappy" with the latest OPEC production cut, it almost seemed as if the DOE viewed the current oil supply situation to be such that even lower oil prices might be seen ahead. Against a back drop of sagging inflation, slowing growth, a rising Dollar and higher equity prices, it is likely that more than a few gold bulls were questioning their stay in the market.
With the precious metals focus dragging on silver and the base metals pressure well documented in the Press on Monday, the December silver contract was lucky to have avoided more weakness. While the recent positioning reports probably overstate the magnitude of the spec long positioning in silver, it is clear that the size of the spec long is due to ramp up in the wake of the sharp October rally. The question for the silver trade is whether or not the trade will become increasingly uncomfortable with the fact that December silver is effectively trading over 65 cents above the October lows in the face of a suspect global economy.” - The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Private silver currency gets notice in western North Carolina
You're invited to GATA's reception in New Orleans on Saturday, Nov. 18
Chinese central banker says gold is 'separate' from FX diversification
NovaGold CEO and Grandich on Canada's ROB-TV
The Statistics:
As of close of business: 11/10/2006
Gold Warehouse Stocks: | 7,524,997 | -642 |
Silver Warehouse Stocks: | 161,037,817 | - 349,600 |
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 | 409.59 | 13,168,578 | US$ 8,286m |
LSE (London Stock Exchange) AND Euronext Paris | Gold Bullion Securities | 90.34 | 2,904,522 | US$ 1,819m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 10.25 | 329,373 | US$ 206m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 9.88 | 317,767 | US$ 199m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU)
Profile as of 11/10/2006 | |
Total Net Assets | $857,887,818 | 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 11/10/2006 | |
Total Net Assets | $1,363,999,756 | 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:
Seabridge’s (SA) third quarter results, Metallica’s (MRB) updated resource estimate, Vista Gold’s (VGZ) preliminary assessment of its Yellow Pine project, Great Panther’s (GPR.V) Toronto Stock Exchange listing, and Silver Dragon’s (SDRG.OB) completed purchase were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Pacific Rim | PMU +4.08% $1.02 |
2. U.S. Energy | USEG +2.83% $4.72 |
3. Metallica | MRB +2.46% $3.75 |
LOSERS
1. Entree Gold | EGI -9.15% $1.49 |
2. Rio Narcea | RNO -7.78% $2.37 |
3. Taseko Mines | TGB -5.84% $2.42 |
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:
Seabridge Gold Files Third Quarter Financial Statements, MDA and Report to Shareholders - "Seabridge Gold announced today that it has filed its Third Quarter Financial Statements, Management's Discussion and Analysis and Report to Shareholders for the period ended September 30, 2006 on SEDAR. To review these documents, please see http://www.seabridgegold.net/2006-Q3.pdf." More
- November 13, 2006 | Item | E-mail
ESO Uranium announces $6 million brokered financing - More
- November 13, 2006 | Item | E-mail
Imperial Reports on Applications to the British Columbia Securities Commission in Connection with bcMetals - More
- November 13, 2006 | Item | E-mail
Melkior Acquires 141 Claims in Otish and Updates - More
- November 13, 2006 | Item | E-mail
Aurora Gold Corporation Is Pleased to Announce That the Company Has Completed a Road Joining Its Sao Domingos and Sao Joao Properties - More
- November 13, 2006 | Item | E-mail
Northwestern Mineral Ventures to extend term of warrants - More
- November 13, 2006 | Item | E-mail
Equitable Mining Corp. (EQUITABLE) asset sale to Soma Petroleum Limited (SOMA) results in share dividend - More
- November 13, 2006 | Item | E-mail
Results for Q3 2006 - First Net Earnings Reported - Sales Up 84% Over Q2 2006 - Skouries Feasibility Nears Completion - More
- November 13, 2006 | Item | E-mail
Haber, Inc. Successfully Recovers Gold Using Environmentally Friendly Gold Process in Its U.S. Processing Facility - More
- November 13, 2006 | Item | E-mail
Pershimco Annouces the Closing of a Private Placement - More
- November 13, 2006 | Item | E-mail
YGC Resources reports acquisition of the Silver Valley Property - More
- November 13, 2006 | Item
Gold Seeker Closing Report – Gold & Silver Fall Ahead of a Busy Economic Week