-- Posted Monday, 4 December 2006 | Digg This Article
| Close | Gain/Loss |
Gold | $645.20 | +$0.10 |
Silver | $14.05 | +$0.08 |
XAU | 149.36 | +1.14% |
HUI | 360.22 | +1.79% |
GDM | 1143.31 | +1.51% |
JSE Gold | 3076.02 | +0.02% |
USD | 82.52 | +0.05 |
Euro | 133.21 | -0.07 |
Yen | 86.65 | -0.09 |
Oil | $62.44 | -$0.99 |
10-Year | 4.433% | +0.008 |
T-Bond | 114.59375 | -0.03125 |
Dow | 12283.85 | +0.74% |
Nasdaq | 2448.39 | +1.46% |
S&P | 1409.12 | +0.89% |
The Metals:
Gold rose a couple dollars in Asia, traded near unchanged in London, and then dropped roughly $5 to as low as $640.40 just after 10AM EST in New York, but it then quickly rebounded back near unchanged and remained near that level into the close before it ended with a small gain. Silver traded mostly slightly higher before it also fell off in New York to as low as $13.92 just after 10AM EST, but it also rebounded into the close and ended near its highs with a gain of 0.57%.
Euro gold held near €485, platinum rose $4 to $1,158, palladium gained $3 to $329, and copper fell slightly to about $3.15.
Gold and silver equities rose about 1% at the open before they fell off with gold and silver and traded slightly lower just after 10AM EST, but they then rallied higher for the rest of trade and ended with over 1.0% gains.
The Economy:
There were no major economic reports today, but a pending home sales report that showed sales fell 1.7% in October did have some talking about possible stabilization in the housing market. Tomorrow at 8:30AM EST is 3rd quarter Productivity expected at 0.5%. At 10AM are Factory Orders for October expected at -4.0% and ISM Services for November expected at 55.5.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil fell as cold weather has not hit the East Coast as bad as some expected and worries over falling demand encouraged some selling after last week’s rise to 2 month highs. Natural gas was especially hit by warm weather forecasts and it fell over 7% today.
The U.S. dollar index and treasuries remained near unchanged in light trade ahead of key economic data later in the week, but the dollar was able to find slight gains and treasuries edged a bit lower by the close.
The Dow, Nasdaq, and S&P rose on news of several takeover deals despite some disappointing news from Pfizer.
Among the big names making news in the market today were Bank of New York and Mellon Financial, LSI Logic and Agere Systems, Station Casinos, Pfizer, and Icahn and Reckson.
The Commentary:
“Just spoke to a very interesting Café member who is closely connected to the hedge fund community. It seems the information fed my way, and your way over the past 7 months, has been RIGHT ON THE MONEY. He told me that in May of this year Ben Bernanke met with a group of hedge fund managers and said "his job at the time was to break the back of the commodity bull market,” and more specifically GOLD AND OIL.
So there you have it once again, the US government ORDERED the price of gold to be tanked.
He also told me that our information coming from John Brimelow is dead on about India. This gentleman says his wealthy Indian friends all say that as the richer Indians become wealthier, they buy the same proportion of gold as they did when they were less wealthy. Thus, as the Indian economy booms, so does demand for more gold. A VERY bullish aspect for gold’s future.” - From Friday’s Midas report by Bill Murphy of LemetropoleCafe.com
“February Gold finished up 0.3 at 650.9, 0.8 off the high and 5.2 up from the low.
March Silver closed up 0.055 at 14.245. This was 0.115 up from the low and 0.015 off the high.
Without a distinctly weaker US Dollar, the sharp slide in energy prices seemed to weigh a little more heavily on the gold market. Certainly more deflationary or slowing growth evidence from the US economy served to undermine the gold market and with the currency markets talking up the idea of a significantly oversold US Dollar, it is not surprising that some in the gold traded decided to step to the sidelines. While the market hasn't specifically fretted over the slowing in the US economy it is clear that all metals markets were becoming a little more sensitive to that type of issue. In fact, some players have suggested that the gold market has seen its bullish focus narrowed to the weakness in the Dollar and with the Dollar clearly rejecting a new low for the move early Monday, the bull camp in gold certainly isn't in a hurry to add to their positions. In drawing an uptrend line in February gold off the last two months lows, the trade is suggesting that the $641.2 level has become a critical point for the coming sessions. In the end, a critical point for gold is probably also seen at 82.27 in the December Dollar, as that was the low in the Dollar that was handily rejected early Monday morning.
Fortunately the March silver avoided a double top on Monday, but with the gold market showing signs of profit taking, the silver market action Monday was pretty impressive. While the bull camp continues to suggest that the prospect of ongoing investment is the driving force behind the recent run up in prices, one can't totally discount the fact that the outlook for the US economy continues to deteriorate. While the silver trade is suggesting that up trend channel support in the March contract comes in at $13.53 the steep rate of ascent in silver prices has left the classical technical support in silver moderately below current trade levels.” - The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Agnico-Eagle's huge success: organic growth, no hedging
Another Chinese scholar argues for shifting into gold
Weak dollar will figure in OPEC's decision on production
U.S. believed happy with decline of dollar if it's 'orderly'
Goldman's top alumni wield White House clout
Bloomberg's weekly gold trader survey quotes GoldMoney's and GATA's Turk
Treasury secretary polls industry leaders before China trip
William Pesek: Why Paulson faces disappointment in China
James Turk: The breakout gains momentum
Dollar's fall aids London's drive for financial supremacy
Market retreat will force shady deals 'out of the woodwork'
Aside from France, euro nations don't mind dollar's fall
Volatile dollar may not be scary to Washington
Fed looks powerless to halt dollar's slide
Falling dollar means $3 gas again, higher interest rates
The Statistics:
As of close of business: 12/01/2006
Gold Warehouse Stocks: | 7,491,102 | -909 |
Silver Warehouse Stocks: | 107,770,405 | - |
Global Gold ETF Holdings
[WGC Sponsored ETF’s]
| Product name | Total Tonnes | Total Ounces | Total Value |
New York Stock Exchange (NYSE) AND Singapore Exchange (SGX) | Streettracks Gold Shares | 441.68 | 14,200,313 | US$ 9,209m |
LSE (London Stock Exchange) AND Euronext Paris | Gold Bullion Securities | 90.32 | 2,903,847 | US$ 1,874m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 10.48 | 336,656 | US$ 217m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 9.88 | 317,701 | US$ 206m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU)
Profile as of 12/01/2006 | |
Total Net Assets | $879,945,525 | 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 12/01/2006 | |
Total Net Assets | $1,519,060,170 | Ounces of Silver
in Trust | 109,721,369 |
Shares Outstanding | 11,000,000 | Tonnes of Silver
in Trust | 3,412.7 |
Note: No change in Total Tonnes from yesterday’s data.
The Stocks:
Metallica’s (MRB) C$30.0 million bought deal private placement, Minera Andes (MAI.V) conditional listing approval from the Toronto Stock Exchange, Silver Dragon’s (SDRG.OB) private placement, Sterling Mining’s (SRLM.OB) trenching results, and Silver Eagle’s (SEG.TO) drill results were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Rubicon | RBY+13.86% $1.15 |
2. Crystallex | KRY +8.89% $4.04 |
3. Solitario | XPL +6.38% $4.00 |
LOSERS
1. Richmont | RIC -3.42% $2.54 |
2. Cardero | CDY -2.87% $1.69 |
3. DRDGOLD | DROOY-2.68% $1.09 |
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:
Valencia Enters Into Agreement to Sell Idaho Gold Project - More
- December 04, 2006 | Item | E-mail
Silver Dragon Resources Inc. Signs Engagement Letter With Union Securities Ltd. for Private Placement and Prospectus Offering - "Silver Dragon Resources Inc. (OTC BB:SDRG.OB - News) is pleased to announce that it has signed an engagement letter with Union Securities Ltd. in Canada to act on behalf of Silver Dragon as agent in connection with a proposed prospectus offering and private placement of units." More
- December 04, 2006 | Item | E-mail
GenX Resource to Acquire IOGC Uranium - More
- December 04, 2006 | Item | E-mail
Pinnacle Mines Ltd.: Drilling Results on the Barbara Project 'BA Claims' Continue to Intersect High-Grade Zinc-Lead-Silver - More
- December 04, 2006 | Item | E-mail
Sterling Mining Company Announces Trenching Results at San Acacio - "Sterling Mining Company (OTCBB:SRLM - News; FWB:SMX) announced today that it has completed a program of surface trenching along 900 meters of the Veta Grande at the San Acacio Mine, in Zacatecas, Mexico. The Veta Grande can be traced for almost seven kilometers and is known to host silver mineral to a depth of at least 300 meters. The upper portions of the vein are oxidized and are amenable to treatment at Sterling's nearby Barones vat leach plant." More
- December 04, 2006 | Item | E-mail
Pediment and Inmet Mining to Explore for Copper-Gold Porphyries at Caborca - More
- December 04, 2006 | Item | E-mail
PAN AFRICAN MINING CORP. Appoints Dr. Edward A. Schiller as a Director - More
- December 04, 2006 | Item | E-mail
Solex Appoints Robert Boaz to the Board of Directors - More
- December 04, 2006 | Item | E-mail
New Guinea Gold Corporation: Additional Drill Rig to be Sent to Imwauna - More
- December 04, 2006 | Item | E-mail
Brazauro's Tocantinzinho Title Confirmed in Brazil - More
- December 04, 2006 | Item | E-mail
Kootenay Gold Inc. Announces Milestone Acquisition of Historic Promontorio Mine and Adjoining Land Concession in Sierra Madre Silver Region, Mexico - More
- December 04, 2006 | Item | E-mail
Geodex reports assay results from drill holes SB-06-12, 13 and 14 at the Sisson Brook Tungsten-Molybdenum-Copper Property, New Brunswick - More
- December 04, 2006 |
Gold Seeker Closing Report – Gold & Silver Rise Slightly