-- Posted Tuesday, 14 November 2006 | Digg This Article
| Close | Gain/Loss |
Gold | $624.00 | -$0.20 |
Silver | $12.81 | -$0.01 |
XAU | 137.23 | -1.07% |
HUI | 328.21 | -0.96% |
GDM | 1044.40 | -1.13% |
JSE Gold | 2901.20 | +1.68% |
USD | 85.29 | -0.10 |
Euro | 128.28 | +0.26 |
Yen | 85.09 | +0.47 |
Oil | $58.28 | -$0.30 |
10-Year | 4.568% | -0.037 |
T-Bond | 113.28125 | +0.46875 |
Dow | 12218.01 | +0.71% |
Nasdaq | 2430.66 | +1.01% |
S&P | 1393.22 | +0.64% |
The Metals:
Gold remained near unchanged in Asia and London and rose about $5 near $630 in early New York trade before it fell to as low as $619.00 in later morning trade, but it then rallied into the close and ended with a loss of just 0.03%. Silver rose to about $13.00 in early New York trade before it fell to as low as $12.69 in late morning trade, but it also rallied into the close and ended with a loss of just 0.08%.
Euro gold fell to about €485, platinum lost $28 to $1,172, palladium lost $7 to $317, and copper dropped roughly 4 cents to about $3.12.
Gold and silver equities opened about 1% higher before they soon fell off and traded about 1% lower into the close.
The Economy:
Report | For | Reading | Expected | Previous |
PPI | Oct | -1.6% | -0.5% | -1.3% |
Core PPI | Oct | -0.9% | 0.1% | 0.6% |
Retail Sales | Oct | -0.2% | -0.4% | -0.8% |
Retail Sales ex-auto | Oct | -0.4% | -0.3% | -1.2% |
Business Inventories | Sep | 0.4% | 0.5% | 0.6% |
Core PPI fell the most since August 1993 and reduced inflation fears which also renewed talk of a possible fed rate cut some time next year. Poor Retail Sales added to the argument as they indicated slowing economic growth. Fed member Poole came out late in the day and noted that inflation expectations are “well controlled” and that “the outlook for the fed funds rate as ‘roughly symmetrical,’ meaning the chances of an interest-rate cut and an increase are about equal.”
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil traded mostly slightly higher before it ended a bit lower as traders weighed weather reports and possible OPEC cuts.
The U.S. dollar index fell after PPI came out and reduced chances for interest rate hikes by the fed, but it did rebound and ended only moderately lower after the mostly ignored “IBD/TIPP Economic Optimism Index rose 3.3 points to a 22-month high of 55.7.” The reading was better than expected and encouraged buyers of other currencies to take profits.
Treasuries rose on tame PPI and poor Retail Sales data that made it more likely the fed will not raise rates, and may even cut them in the somewhat near future.
The Dow, Nasdaq, and S&P opened higher on reduced inflation fears before they fell off on some mixed retailer reports, but they then rallied higher in late trade after Poole’s comments and ended with decent gains. The Dow ended at a new record high and the S&P ended at a 6 year closing high.
Among the big names making news in the market today were Staples, Target, Vodafone, Wal-Mart, Home Depot, and Ford.
The Commentary:
“The further confirmation of China's intention to diversify from the Chairman of the People's Bank of China is remarkable because it has served notice on the U.S. monetary authorities that the U.S. $ will see a significant diminishing in the $' role as the key global reserve currency. Sterling went through the same process after the second world war as its empire shrank, leading to Capital Controls on the movement of the Pound Sterling. This above all other factors, will at some point in the not so distant future will precipitate a dramatic decline in the U.S.$. This will act as the main fundamental supporting the gold and silver prices.” - Julian D.W. Phillips, www.goldforecaster.com
“General Paulson must have been furious over the surge in gold on Thursday. For the second day in a row gold was assaulted upon the completion of the AM Fix which came in at $628.50. The bad guys are up to their same old tricks … assault the market when they don’t need to compete against the physical pricing period.
Why the blatant efforts to take gold down now that the election is over? Don’t really know yet … something to ponder. However, this takedown should not last too long. What is important in the short term is for $618 to hold. From a technical standpoint the bull move remains intact as long as it does.” - From yesterday’s Midas report by Bill Murphy of LemetropoleCafe.com
“December Gold finished down 0.5 at 625.3, 5.1 off the high and 5.3 up from the low.
December Silver closed up 0.005 at 12.89. This was 0.14 up from the low and 0.16 off the high.
As suggested in the mid day coverage, the flow of US economic numbers undermined gold and in the process fostered talk of disinflation and recession. With the slow US economic numbers not applying pressure to the Dollar, the gold market might have seen a definitively bearish outcome from the numbers. With the Fed's Poole suggesting that slower US job growth ahead might actually signal a recession, the gold bulls were logically concerned about broad based long liquidation of gold positions that were initially implemented as a hedge against inflation. With aggressive liquidation in the platinum market there could have been some spill over pressure on gold but the bull camp did show some resolve by pushing prices back into positive territory just after mid session but it could be difficult throwing off the weight of the deflationary numbers.
Despite the outside pressure thrown off by the gold market and as a result of the weak US numbers, the silver market managed to hold together relatively well on Tuesday. Both gold and silver seemed to battle small spec liquidation interest in the wake of recessionary talk from the US Fed's Poole. The fact that the copper market managed to throw off significant weakness early in the session Tuesday, was perhaps a plus for silver, but the copper gains were largely forged as a result of labor issues at a large underground copper mine and not because of some improvement in the macro economic outlook.” - The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Health care costs likely to rise 10%
Ted Butler: Silver has a lot of catching up to do
The Statistics:
As of close of business: 11/13/2006
Gold Warehouse Stocks: | 7,524,997 | - |
Silver Warehouse Stocks: | 107,037,908 | +81 |
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$ 8,209m |
LSE (London Stock Exchange) AND Euronext Paris | Gold Bullion Securities | 90.34 | 2,904,490 | US$ 1,808m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 10.25 | 329,370 | US$ 205m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 9.88 | 317,763 | US$ 198m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU)
Profile as of 11/13/2006 | |
Total Net Assets | $852,125,176 | 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 11/13/2006 | |
Total Net Assets | $1,346,662,353 | 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:
Crystallex’s (KRY) tax investigation in Venezuela, NovaGold’s (NG) update on Galore Creek, Minco’s (MMK) mining license, Nevsun’s (NSU) third quarter highlights, Newmont’s (NEM) agreement with Computer Sciences Corporation (CSC) and gold price outlook, DRDGOLD’S (DROOY) resumed shaft, third quarter results from Crystallex (KRY), Endeavour (EDR.TO), Bema Gold (BGO), Northern Orion (NTO), Fronteer (FRG), Glencairn (GLE), and Queenstake (QEE), Sabina’s (SBB.V) expanded mineral resource, and First Majestic’s (FR.V) private placement were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Entree Gold | EGI +6.04% $1.58 |
2. Minco Mining | MMK +3.12% $1.65 |
3. Exeter | XRA +2.93% $2.46 |
LOSERS
1. Claude Resources | CGR -6.40% $1.17 |
2. Fronteer | FRG -6.18% $7.59 |
3. Miramar Mining | MNG -5.34% $4.79 |
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:
Crystallex Reports Third Quarter 2006 Results - "The Company recorded a net loss for the first nine months and third quarter of 2006 of $24.1 million, (($0.11) per share) and $8.8 million, (($0.04) per share) respectively, as compared with net losses of $26.6 million, (($0.14) per share) and $10.3 million (($0.05) per share) for the comparable periods in 2005. The losses in the first nine months and third quarter of 2006 are principally attributable to the aggregate of mine operations costs, corporate general and administrative costs and interest expense." More
- November 14, 2006 | Item | E-mail
Endeavour Releases Third Quarter Report for 2006 and Restates Second Quarter Financial Statements - "For the nine months ended September 30, 2006, silver production from the Guanacevi Mines Project jumped 48% to 983,366 oz and gold production increased 20% to 2062 oz (1,091,621 oz Ag equivalents at 52.5 Ag: 1 Au ratio) compared to the same period in 2005. The sharp rise in metal output can be attributed to increases in plant throughput (up 11% to 83,591 tonnes), ore grades (silver up 23% to 455 gpt and gold up 3% to 0.94 gpt), and metal recoveries (silver up 8% to 79.9% and gold up 3% to 81.2%)." More
- November 14, 2006 | Item | E-mail
Gabriel Resources Ltd. - Third Quarter Report - More
- November 14, 2006 | Item | E-mail
Bema Gold Corporation: 2006 Third Quarter Results - "Bema reported net earnings for the quarter, under Canadian GAAP, of $0.2 million ($0.00 per share) compared with a loss of $24.9 million in the same period last year (negative $0.06 per share). If net earnings under Canadian GAAP were adjusted to exclude certain non-cash items consisting of unrealized non-hedge derivative gains or losses, stock-based compensation expense and future income taxes, the adjusted earnings for the third quarter of 2006 would be a loss of $2.4 million (negative $0.01 per share) compared with an adjusted loss of $12.3 million in the same period last year (negative $0.03 per share)." More
- November 14, 2006 | Item | E-mail
Gold Seeker Closing Report – Gold & Silver End Barely Lower