-- Posted Thursday, 16 November 2006 | Digg This Article
| Close | Gain/Loss |
Gold | $620.90 | -$1.60 |
Silver | $12.92 | +$0.06 |
XAU | 133.10 | -3.65% |
HUI | 317.33 | -3.98% |
GDM | 1014.52 | -3.71% |
JSE Gold | 2807.13 | -1.16% |
USD | 85.49 | +0.15 |
Euro | 127.93 | -0.27 |
Yen | 84.59 | -0.11 |
Oil | $56.26 | -$2.50 |
10-Year | 4.655% | +0.040 |
T-Bond | 112.3125 | -0.46875 |
Dow | 12305.82 | +0.44% |
Nasdaq | 2449.06 | +0.26% |
S&P | 1399.76 | +0.23% |
The Metals:
Gold traded mostly slightly higher in Asia and London before it found about $5 gains in early New York trade, but it then steadily fell off into the close and ended near its lows with a loss of 0.26%. Silver also traded mostly slightly higher in Asia and London before it rose to find about 25 cent gains in early New York trade and then fell back off a bit, but it sill ended with a gain of 0.47%.
Euro gold remained at about €485, platinum gained $14 to $1,182, palladium remained unchanged at $318, and copper fell roughly 6 cents to about $3.03.
Gold and silver equities found slight gains in the first hour of trade, but they then steadily fell off for the rest of trade and ended with over 3% losses.
The Economy:
Report | For | Reading | Expected | Previous |
CPI | Oct | -0.5% | -0.3% | -0.5% |
Core CPI | Oct | 0.1% | 0.2% | 0.2% |
Initial Claims | 11/11 | 308K | 310K | 310K |
Net Foreign Purchases | Sep | $53.7B | - | $97.1B |
Capacity Utilization | Oct | 82.2% | 82.0% | 82.1% |
Industrial Production | Oct | 0.2% | 0.3% | -0.6% |
Philadelphia Fed | Nov | 5.1 | 5.0 | -0.7 |
Inflation fears eased after the release of the CPI report, but they then rose back up after some hawkish remarks from fed member Moskow, a decent Philadelphia Fed report, and a positive report from the NAHB on homebuilder sentiment.
Tomorrow at 8:30AM EST brings Building Permits for October expected at 1,625,000 and Housing Starts expected at 1,680,000.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil rose in early trade, but it then fell with other energy prices after Natural Gas Inventories built 5 billion cubic feet instead of an expected drop. Forecasts of mild winter weather, doubts over OPEC cuts, and stockpiles well above levels last year also encouraged selling and resulted in a loss of over 4% on the day to the lowest level this year.
The U.S. dollar index initially fell and treasuries rose after a tame CPI report, but hawkish comments from the fed’s Moskow and a decent Philadelphia Fed report reversed early conditions and resulted in bonds ending lower and the dollar higher by the end of trade.
The Dow, Nasdaq, and S&P rose on a tame inflation report, buyout news, and markedly lower oil prices. The Dow closed at a new record high.
Among the big names making news in the market today were Reader’s Digest and Ripplewood, Dell and Hewlett-Packard, Clear Channel and Bain Capital and Thomas H. Lee, Citigroup and Guangdong, and Sears.
The Commentary:
“My thinking has been that gold would begin to make its move up here. Instead, although gold is still higher now than where I thought it would be at election time a couple of months ago, the fix is clearly in to stop the price advance cold.
What the heck is REALLY going on that we don’t see here? Not sure, of course, but my bet is something BIG is brewing and the Orwellians want gold in tame mode before it hits. Nothing to do but wait and see.” - From yesterday’s Midas report by Bill Murphy of LemetropoleCafe.com
“December Gold finished down 2.1 at 621.7, 7.3 off the high and 0.6 up from the low.
December Silver closed unchanged at 12.945. This was 0.025 up from the low and 0.225 off the high.
After seeing early gains off of weak inflation data, the gold market was pressured by profit taking as a slightly stronger Philly Fed Business Index and a rise in the Nov NAHB Housing Index suggesting that the housing market may be more resilient than expected gave the Dollar an extra boost. Despite both the Oct CPI and PPI inflation data coming in weaker than expected, comments from Fed members made it clear that inflation remains their primary concern suggesting US rates at best will remain on hold. Despite early gains in Silver and a slightly weak Dollar off the inflation report, Dec gold failed to make a solid push above the $629 area and speculative profit taking was triggered when the Philly Fed and NAHB reports gave the Fed even less incentive to cut rates. With a sharp sell off in energy prices also adding to the negative news flow, it is somewhat surprising that gold didn't see a deeper sell off.
Bullish technicals initially drove silver prices higher as a move through the $13 triggered new speculative buying. However, the silver market couldn't hold on to gains in the face of a rising Dollar amid sinking energy and copper prices as the whole complex fell victim to profit taking late in the session. With several commodity markets coming under a liquidation wave on Thursday, the silver market was not spared. While the Fed has made it clear that rate policy will remain on hold despite softer inflation data in Oct, today's gains in the Philly Fed Index and NAHB Housing Index are positives for silver on a forward looking basis.” - The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
U.S. is biggest currency manipulator, Chinese researcher says
The Statistics:
As of close of business: 11/15/2006
Gold Warehouse Stocks: | 7,524,997 | - |
Silver Warehouse Stocks: | 107,631,280 | - |
Global Gold ETF Holdings
[WGC Sponsored ETF’s]
| Product name | Total Tonnes | Total Ounces | Total Value |
New York Stock Exchange (NYSE) AND Singapore Exchange (SGX) | Streettracks Gold Shares | 415.76 | 13,367,010 | US$ 8,256m |
LSE (London Stock Exchange) AND Euronext Paris | Gold Bullion Securities | 90.34 | 2,904,425 | US$ 1,797m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 10.31 | 331,182 | US$ 205m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 9.88 | 317,756 | US$ 196m |
Note: Change in Total Tonnes from yesterday’s data: The NYSE added 3.09 tonnes.
COMEX Gold Trust (IAU)
Profile as of 11/15/2006 | |
Total Net Assets | $849,785,424 | 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 11/15/2006 | |
Total Net Assets | $1,328,820,447 | 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:
Kimber’s (KBX) CEO search, Tanzanian Royalty’s (TRE) drill program, Rubicon’s (RBY) drill program, Fronteer’s (FRG) drill results, Nevsun’s (NSU) technical report, U.S. Energy’s (USEG) third quarter results, Avino’s (ASM.V) Tier 1 listing, and Palmarejo (PJO.V) drill results were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Fronteer | FRG +7.99% $8.65 |
2. Claude Resources | CGR +4.27% $1.22 |
3. Almaden Minerals | AAU +2.39% $2.57 |
LOSERS
1. Silver Wheaton | SLW -7.05% $10.94 |
2. Crystallex | KRY -6.52% $3.01 |
3. Golden Star | GSS -5.73% $2.96 |
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:
Aberdeen Expands Gold Royalty Portfolio - More
- November 16, 2006 | Item | E-mail
North American Gem Inc.: Results of Metallurgical Study, Louise Lake Project - More
- November 16, 2006 | Item | E-mail
Azco Mining Temporarily Moves to Pink Sheets - More
- November 16, 2006 | Item | E-mail
Amarillo Drilling Detects New Mineralization at Mara Rosa Project Includes 25 m of Gold @ 2.1 g/t - More
- November 16, 2006 | Item
Gold Seeker Closing Report – Gold & Silver End Mixed & Near Unchanged Again