-- Posted Monday, 27 November 2006 | Digg This Article
| Close | Gain/Loss |
Gold | $639.70 | +$11.10 |
Silver | $13.45 | +$0.44 |
XAU | 142.38 | +0.56% |
HUI | 340.59 | +0.10% |
GDM | 1086.72 | +0.45% |
JSE Gold | 2960.81 | +0.21% |
USD | 83.51 | -0.17 |
Euro | 131.37 | +0.49 |
Yen | 86.19 | -0.10 |
Oil | $60.32 | +$1.08 |
10-Year | 4.538% | -0.010 |
T-Bond | 113.59375 | +0.15625 |
Dow | 12121.79 | -1.29% |
Nasdaq | 2405.92 | -2.21% |
S&P | 1381.96 | -1.36% |
The Metals:
CoT Reports: Gold | Silver
After closing at $628.60 in the U.S. last Wednesday, gold gained about $10 in London on Friday and came into the weekend at $637.90. It then rose a few dollars more at the start of trade today in Asia before it fell back off a bit in London and dropped back near $636 in early New York trade, but it then rallied into the close and ended near its highs of the session with a gain of 1.77% when compared to last Wednesday’s close. Silver came into the weekend at $13.40 and rose over 10 cents in Asia before it fell back under $13.40 by the New York open, but it then quickly rose back above $13.50 in later New York trade, fell off just slightly into the close, and ended with a gain of 3.38% when compared to last Wednesday’s close.
Euro gold rose to about €488, platinum lost $3 to $1,142, palladium gained $2 to $324, and copper fell a few cents to about $3.18.
Gold and silver equities rose nearly 1.5% at the open, but they then steadily fell off along with the major indices and closed with just slight gains.
The Economy:
There were no major economic reports today. Tomorrow at 8:30AM EST brings Durable Goods Orders for October expected -5.0% and at 10AM are Existing Home Sales for October expected at 6.14 million and Consumer Confidence for November expected at 106.0.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil rose over a dollar to back above $60 on cold weather forecasts in the U.S., an attack on a major refinery in Iraq, and on talks of another OPEC cut at their next meeting.
The U.S. dollar index fell on the outlook for lower interest rates in the U.S. and on general waning confidence in the dollar as the world’s reserve currency. The euro rose to a 20 month high.
Treasuries fell in early trade on concerns over dollar denominated assets, but they then rallied in late trade and ended slightly higher on safe haven buying as the major indices dropped markedly.
The Dow and S&P fell over 1% and the Nasdaq dropped over 2% on worries over a declining dollar and on poor holiday sales from Wal-Mart. Higher oil prices also encouraged some profit taking from recent gains.
Among the big names making news in the market today were Hertz, Nasdaq and LSE, Wal-Mart, Ford, ACS, and Swift.
The Commentary:
“The moves in the euro, gold and silver could be EPIC in what they portend for financial markets in December and 2007. In the past MIDAS has downplayed the importance of the dollar and gold. That was because of how The Gold Cartel was using the action of the dollar to assist them in their manipulation.
Now that The Gold Cartel is running low on gold supply, and the need to keep the dollar steady ahead of the elections has passed, it is likely a weakening dollar will have a profound effect on the price of gold. This is not a new comment by me of late, but one worth emphasizing for its importance.
Why: a weakening dollar, or collapsing one, has a good shot to bring in massive investment interest in the West ... interest which has been dormant for the most part. Without inflation hype, or sinking US stock/real estate markets, most Americans (and others in the West) can’t see any reason to own gold. A disappearing dollar could provide that reason and dramatically increase demand for bullion … silver too.” - From last Friday’s Midas report by Bill Murphy of LemetropoleCafe.com
“December Gold finished up 11.6 at 640.6, 0.4 off the high and 3.3 up from the low.
December Silver closed up 0.45 at 13.49. This was 0.05 up from the low and 0.09 off the high.
The gold market waffled around unchanged throughout most of the early action but then seemed to catch a bid around mid session. It seems like the scheduled US numbers were soft enough to assume that more Dollar declines were ahead and with the US equity market coming under intense liquidation pressure, one might expect following through pressure in the Dollar and perhaps some increased flight to quality interest in the gold market. In fact, the trade is already leaning toward a significant decline in the Dollar and seeing the US numbers disappoint and seeing the equity market confirm the disdain for the US economic outlook would seem to promote flight to quality concerns. With an attack on Northern Iraqi oil facilities also in the news Monday, the gold and silver markets might have seen more than one flight to quality theme at work.
The silver market initially outperformed the gold market in the morning trade but as the gold market firmed in the early afternoon action, the silver market seemed to be locked in place. We suspect that the massive declines in the equity market, the weakness in copper prices and the slack US economic readings discouraged prospective silver buyers. Some traders were concerned that the delayed weekly COT report readings scheduled for a late Monday afternoon release were going to alert the market to a slightly overbought technical condition and that might have discouraged some would-be buyers.” - The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
James Turk: Gold breaks out around the world
West warned to prepare to be surpassed by China and India
Oil shows market manipulation is easy even without collusion
Dollar assets hard to diversify, Chinese FX official admits
Kelvin Williams urges transparency, then toasts keepers of gold's secrets
China's deputy central bank chief: Dollar is going lower
Hedge funds overleverage and 'anyone can go down,' Sprott warns
John Embry: Who's selling? Gold scene rife with intrigue
Fed's help enlisted for trip to pressure China
Silver keeps clothes from smelling -- portfolios too!
Predator now may be prey: Barrick stalking Freeport?
Peter Brimelow: Friday will be historic day for gold
The Statistics:
As of close of business: 11/22/2006
Gold Warehouse Stocks: | 7,524,066 | +8 |
Silver Warehouse Stocks: | 108,218,641 | - |
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 | 423.47 | 13,615,028 | US$ 8,704m |
LSE (London Stock Exchange) AND Euronext Paris | Gold Bullion Securities | 90.33 | 2,904,072 | US$ 1,861m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 10.44 | 335,472 | US$ 215m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 9.88 | 317,718 | US$ 203m |
Note: Change in Total Tonnes from last Wednesday’s data: The NYSE added 7.71 tonnes and the ASX added 0.07 tonnes.
COMEX Gold Trust (IAU)
Profile as of 11/24/2006 | |
Total Net Assets | $858,166,556 | 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 last Wednesday’s data.
Silver Trust (SLV)
Profile as of 11/24/2006 | |
Total Net Assets | $1,439,332,191 | Ounces of Silver
in Trust | 107,727,155 |
Shares Outstanding | 10,800,000 | Tonnes of Silver
in Trust | 3,350.7 |
Note: Change in Total Tonnes from last Wednesday’s data: 46.5 tonnes were added to the trust.
The Stocks:
Gold Fields’ (GFI) 20-F filing, Sterling Mining’s (SRLM.OB) workforce expansion, Endeavour’s (EDR.TO) drill results, and Aquiline’s (AQI.TO) commenced drilling at Navidad were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Cardero | CDY +5.00% $1.68 |
2. Pacific Rim | PMU+4.50% $1.16 |
3. Exeter | XRA +4.07% $2.81 |
LOSERS
1. Fronteer | FRG -9.29% $8.98 |
2. Mines MGMT | MGN-5.91% $5.73 |
3. Metallica | MRB -4.94% $4.04 |
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:
G & S Minerals Inc. Initiates Process of Listing on the Frankfurt Stock Exchange - More
- November 27, 2006 | Item | E-mail
Sterling Mining Continues Workforce Expansion as Mill Renovation Starts at the Sunshine Mine - "Sterling Mining Company (OTC: SRLM - News) today announced progress made at the Sunshine Mine as the Company prepares to return the Sunshine Mine to sustainable long-term production. The number of Sunshine Mine employees has grown to thirty and includes a new Operations Supervisor and Mining Engineer. Sterling has added key personnel since January in order to keep up with the expanding number of projects involved. The recently completed revitalization of the Mine's boilers and steam heating distribution system now permit work to proceed on renovating the Mill's processing facilities over the next several months." More
- November 27, 2006 | Item | E-mail
Wescan Goldfields Inc. announces third quarter results - More
- November 27, 2006 | Item | E-mail
Starfire announces significant uranium mineralization for its Cross-Structure Property - More
- November 27, 2006 | Item | E-mail
Goldbelt Mining Permit Update - More
- November 27, 2006 | Item | E-mail
Tagish Continues to Report High Grade Results - More
- November 27, 2006 | Item | E-mail
Etruscan advances gold targets on Banfora Belt in Burkina Faso - More
- November 27, 2006 | Item | E-mail
Stellar Pacific acquires new claims in Val d'Or mining camp - More
- November 27, 2006 | Item | E-mail
International PBX Ventures Ltd.: Progress Report From the President and Executive Directors in Chile - More
- November 27, 2006 | Item | E-mail
Pan African Mining Corp. Granted Additional Madagascar Uranium Licenses; Exploration Program Accelerating - More
- November 27, 2006 | Item | E-mail
First Metals Contracts $2.4 Million Power Line - More
- November 27, 2006 | Item | E-mail
Gold Seeker Closing Report – Gold & Silver Add to Last Week’s Late Gains