-- Posted Friday, 1 December 2006 | Digg This Article
| Close | Gain/Loss | On Week |
Gold | $645.10 | -$1.50 | +1.13% |
Silver | $13.97 | +$0.06 | +4.25% |
XAU | 147.67 | -1.08% | +4.03% |
HUI | 353.88 | -0.47% | +4.00% |
GDM | 1126.28 | -0.88% | +4.11% |
JSE Gold | 3075.52 | +0.86% | +4.09% |
USD | 82.47 | -0.46 | -1.45% |
Euro | 133.28 | +0.82 | +1.83% |
Yen | 86.74 | +0.36 | +0.52% |
Oil | $63.43 | +$0.30 | +7.07% |
10-Year | 4.425% | -0.033 | -2.70% |
Bond | 114.625 | +0.25 | +1.05% |
Dow | 12194.13 | -0.23% | -0.70% |
Nasdaq | 2413.21 | -0.76% | -1.91% |
S&P | 1396.72 | -0.28% | -0.30% |
The Metals:
CoT Reports: Gold | Silver
Gold traded mostly slightly higher in Asia, fell a couple dollars in London, rose up near $650 in midmorning New York trade, and then fell off into the close and ended with a loss of 0.23%. Silver dipped near $13.80 before it rose to over $14.00 in late morning New York trade and then fell off a bit into the close, but it still ended with a gain of 0.43%.
Euro gold fell under €485, platinum lost $24 to $1,154, palladium lost $2 to $326, and copper fell a couple cents to about $3.16.
Gold and silver equities remained near unchanged in morning trade before they fell off in early afternoon trade and traded about 1% lower, but a small rally in the last hour of trade did take the indices off their lows by the close.
The Economy:
Report | For | Reading | Expected | Previous |
ISM Index | Nov | 49.5 | 52.0 | 51.2 |
Construction Spending | Oct | -1.0% | -0.4% | -0.8% |
The Institute for Supply Management’s index of national factory activity fell under 50 for the first time in 3 and ½ years. A reading below 50 indicates shrinkage in the factory sector.
All of this week’s economic reports:
Next week’s economic highlights include Productivity, Factory Orders, and ISM Services on Tuesday, Initial Jobless Claims and Consumer Credit on Thursday, and November’s jobs data and Michigan Sentiment on Friday.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil fell in early trade on worries over falling demand after poor economic data, but it rallied higher by the close to a new 2 month high on talks over a second OPEC production cut.
The U.S. dollar index fell and treasuries rose as the economically disappointing ISM report pushed the yield on the 10-year to its lowest level since January. The dollar fell to a 14 year low versus the pound and the euro rose to new 20 month highs.
The Dow, Nasdaq, and S&P fell on economic worries as today’s ISM report indicates economic weakness not just in the housing and auto sectors, but also in the manufacturing sector. Higher oil prices and inflationary comments by the fed’s Moskow late in the day also helped push the major indices lower, but a sharp rally higher in the last hour of trade left the indices with only marginal losses.
Among the big names making news in the market Friday were Toyota, Ford, DaimlerChrysler, Pimco, Boeing, General Motors, and Warner Music.
The Commentary:
“Gold and silver were strong all night and took off when New York opened. Quite honestly, none of what we are seeing here is a surprise. My friend/antagonist Dennis Gartman says that analyzing the gold market the way GATA has done (the manipulation story) is a waste of time. Au contraire, it has been, and is, the way to make a fortune, which is why ANYONE serious about making money in the gold and silver markets should watch GATA’s Gold Rush 21 DVD, which can be purchased for $20 at www.GoldRush21.com. If you want to know why gold is headed for $3,000 to $5,000 per ounce, you owe it to yourself to at least spend 24 minutes and watch the highlight film of our historic conference in Dawson City in the Yukon a year ago August. The speakers, who came from all over the world, were extraordinary. What was presented back then to the attendees is all panning out for the reasons explained.”- From yesterday’s Midas report by Bill Murphy of LemetropoleCafe.com
“February Gold finished down 2.3 at 650.6, 4.9 off the high and 1.1 up from the low.
March Silver closed up 0.075 at 14.19. This was 0.16 up from the low and 0.06 off the high.
The gold market chopped around both sides of unchanged on Friday and that might have been a little disappointing to the bull camp, especially when one considers the magnitude of the slide in the Dollar. However, in addition to the sharp Dollar slide, it would seem like the slowing pendulum in the US might have shifted a little too far toward recession and that probably discouraged some bulls. In fact, after the recent stellar gains in the gold market, it was logical to expect some mild week ending profit taking. The market might have been supported by news Friday of a 27% decline in October Peruvian gold production, but the trade was so focused on the currency action and the slowing in the US economy that the story wasn't really given that much attention. While a serious deterioration in the US economy might eventually serve to lift gold off a fresh flight to quality argument, the near term ramifications of the slowing seems to be a bit negative for now.
On the positive side of the equation, the silver market did manage another new high for the move and then generally finished positively on the charts. However, with the gold market choppy to weak, we suspect that some would-be buyers of silver will be put off from the recent bull pattern. It is also possible that sagging platinum and copper prices held back silver during the action on Friday, as silver dialogue and the charts have generally been pretty upbeat. In fact, it is surprising that the silver market didn't get a little more Press play with the headlines trumpeting the decline in Mexican silver production. Perhaps the positive action on Friday was the result of the Mexican silver story, because silver certainly managed to outperform gold again.”- The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Gold ETFs nearly ready to go in India
GATA makes its case at New York museum's gold exhibition
Everything is golden on TV tonight
Peter Brimelow: Harry Schultz sees $1,500 gold
British banks told to plan for 40% crash in housing prices
The paranoids were right -- there WAS a conspiracy against gold
The Statistics:
As of close of business: 11/30/2006
Gold Warehouse Stocks: | 7,492,011 | +3 |
Silver Warehouse Stocks: | 107,770,405 | - 443,557 |
Global Gold ETF Holdings
[WGC Sponsored ETF’s]
| Product name | Total Tonnes | Total Ounces | Total Value |
New York Stock Exchange (NYSE) AND Singapore Exchange (SGX) | Streettracks Gold Shares | 441.68 | 14,200,313 | US$ 9,180m |
LSE (London Stock Exchange) AND Euronext Paris | Gold Bullion Securities | 90.32 | 2,903,943 | US$ 1,875m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 10.48 | 336,667 | US$ 218m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 9.88 | 317,704 | US$ 202m |
Note: Change in Total Tonnes from yesterday’s data: The NYSE added 6.18 tonnes and the ASX added 0.04 tonnes.
COMEX Gold Trust (IAU)
Profile as of 11/30/2006 | |
Total Net Assets | $882,958,954 | 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 11/30/2006 | |
Total Net Assets | $1,500,428,092 | Ounces of Silver
in Trust | 109,721,369 |
Shares Outstanding | 11,000,000 | Tonnes of Silver
in Trust | 3,412.7 |
Note: Change in Total Tonnes from yesterday’s data: 62 tonnes were added to the trust.
The Stocks:
Barrick’s (ABX) completed South Deep Mine sale, Goldcorp’s (GG) Penasquito Project update, Rubicon’s (RBY) court order, and Exeter’s (XRA) stock options were among the big stories in the gold and silver mining industry making headlines Friday.
WINNERS
1. Rubicon | RBY +9.78% $1.01 |
2. Exeter | XRA+4.53% $2.77 |
3. Eldorado | EGO+4.29% $5.84 |
LOSERS
Gold Seeker Weekly Wrap-Up – Gold & Silver Gain Over 1% & 4% on the Week