-- Posted Thursday, 7 December 2006 | Digg This Article
| Close | Gain/Loss |
Gold | $631.50 | +$1.10 |
Silver | $13.87 | +$0.30 |
XAU | 146.13 | +0.83% |
HUI | 352.36 | +0.66% |
GDM | 1117.66 | +0.82% |
JSE Gold | 2886.35 | -2.02% |
USD | 82.75 | -0.02 |
Euro | 132.89 | +0.05 |
Yen | 86.82 | +0.03 |
Oil | $62.49 | +$0.30 |
10-Year | 4.483% | +0.002 |
T-Bond | 114.0625 | UNCH |
Dow | 12278.41 | -0.25% |
Nasdaq | 2427.69 | -0.74% |
S&P | 1407.29 | -0.40% |
The Metals:
Gold fell a couple dollars in early Asian trade but rebounded to trade slightly higher by the open in London. It remained mostly slightly higher in London and early New York trade before it dipped to as lows as $624.60 by late morning, but it then rebounded into the close and ended near its highs with a gain of 0.17%. Silver dropped to as low as $13.45 before it rallied fiercely into the close and ended with a gain of 2.21%.
Euro gold remained at about €475, platinum gained $5 to $1,123, palladium gained $4 to $326, and copper fell nearly 10 cents to about $3.07.
Gold and silver equities fell over 1% in the first hour of trade, but they then rallied higher for the rest of the day and ended with nearly 1% gains.
The Economy:
Report | For | Reading | Expected | Previous |
Initial Claims | 12/02 | 324K | 325K | 358K |
Consumer Credit | Oct | -$1.2B | $4.5B | $4.0B |
Tomorrow at 8:30AM EST brings November’s jobs data. Nonfarm Payrolls are expected at 105,000, the Unemployment Rate is expected at 4.5%, Hourly Earnings are expected at 0.3%, and the Average Workweek is expected at 33.9. At 10AM is the preliminary reading for December Michigan Sentiment expected at 92.0.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil ended modestly higher after reports of an attack on and oil export station in Nigeria.
The U.S. dollar index and treasuries remained near unchanged ahead of tomorrow’s jobs data.
The Dow, Nasdaq, and S&P fell on nervousness about tomorrow’s jobs data, with a large number raising fears over future interest rate hikes, and a small number raising fears about a hard landing for the economy.
Among the big names making news in the market today were Fannie Mae, Vanda, Rank and Hard Rock, Home Depot, and Lilly.
The Commentary:
“What did I miss? My last two missives have been about gold and silver preparing to take off, not dive and make like a submarine. Over the years, numerous Café members have told me The Gold Cartel and allies read my stuff, and will go out of their way to make me look bad regarding short term predictions … i.e. just when a market should take off, and I mention as such, it tanks. I always said rubbish … not anymore. However, on the positive side, my guess is a number of veteran Café members have gone short for a trade on my commentary. I actually went over this in my mind before writing the last two MIDAS reports. Sure enough, it has happened again.
Over lunch I realized what I missed: today’s report on the disastrous Bush War was to be front and center media all over the world. As gold is viewed by the Planet Wall Street crowd as a barometer of how all is going in US financial land, and perception in general on the wellness of the state of affairs in the US, it HAD to be taken down, like it is on most US economic reports … you know, the ones which show the US has a serious inflation problem.” - From yesterday’s Midas report by Bill Murphy of LemetropoleCafe.com
“February Gold finished up 1.1 at 637, 0.5 off the high and 7.6 up from the low.
March Silver closed up 0.24 at 14.035. This was 0.395 up from the low and 0.015 off the high.
After an early probe lower on profit taking, the gold market was able to recover as the session progressed. While market sentiment remains bullish, some fund traders are squaring position ahead of year end which has been putting pressure on the gold market this week. It is not unusual to see volatile trade action ahead of tomorrow's US employment data which has a tendency to be a market moving statistic. Although the ECB hiked lending rates by 25 basis points, they lowered their inflation outlook which may also have undermined gold early in the session. A report that China's gold output rose 8% between Jan and October may have served to undermine gold in early trade. But with gold prices able to recover, it does demonstrate the bullish resilience in this market.
March silver saw a sharp recovery from intra day lows as an early attempt to press the down side found little follow through in a market with a bullish technical set up. Fund buying was active as the trade seems to have a buy the breaks mentality. A recovery in Jan crude oil prices may have also provided some support and the trade may have had second thoughts about pressing the downside in silver ahead of the US employment statistics. The Press noted commercial buying interest in silver near the lows while funds were said to have become too short and decided to short cover.” - The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Asian currencies rise as China says dollar may fall
Iran reported switching from dollars to euros in oil trade
The Statistics:
As of close of business: 12/06/2006
Gold Warehouse Stocks: | 7,491,102 | - |
Silver Warehouse Stocks: | 109,265,772 | +894,267 |
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$ 9,028m |
LSE (London Stock Exchange) AND Euronext Paris | Gold Bullion Securities | 90.32 | 2,903,750 | US$ 1,836m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 10.48 | 336,645 | US$ 213m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 9.88 | 317,683 | US$ 202m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU)
Profile as of 12/06/2006 | |
Total Net Assets | $860,515,666 | Ounces of Gold
in Trust | 1,364,906.469 |
Shares Outstanding | 13,750,000 | Tonnes of Gold
in Trust | 42.45 |
Note: No change in Total Tonnes from yesterday’s data.
Silver Trust (SLV)
Profile as of 12/06/2006 | |
Total Net Assets | $1,500,309,689 | Ounces of Silver
in Trust | 109,680,912 |
Shares Outstanding | 11,000,000 | Tonnes of Silver
in Trust | 3,411.5 |
Note: No change in Total Tonnes from yesterday’s data.
The Stocks:
Barrick’s (ABX) failed bid for NovaGold (NG), Teck Cominco’s exercised earn-back rights on four of Fronteer’s (FRG) gold projects, NovaGold’s update on litigation in Alaska and other project updates, Goldcorp’s (GG) completed Silver Wheaton (SLW) share sale, Nevsun’s (NSU) Tabakoto update, Canyon’s (CAU) drill results, New Gold’s (NGD) contractor appointment, Eldorado’s (EGO) drill results, Centerra Gold’s (CG.TO) resource update, ECU’s (ECU.V) exploration results, Fortuna’s (FVI.V) drill results, Oremex’s (ORM.V) drill rig purchase, Endeavour’s (EDR.TO) project appointments and revised production guidance, Avino’s (ASM.V) engineering audit, UC Resources’ (UC.V) production start-up, and Apogee’s (APE.V) test results were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Nevsun | NSU+4.38% $2.62 |
2. Canyon | CAU+3.06% $1.01 |
3. Claude | CGR+2.90% $1.42 |
LOSERS
1. Cardero | CDY-6.47% $1.59 |
2. Almaden | AAU-4.47% $2.35 |
3. Taseko | TGB-4.35% $2.64 |
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:
Newgold, Inc. Officially Changes Name to Firstgold Corp. - More
- December 07, 2006 | Item | E-mail
Barrick admits defeat in NovaGold takeover bid - "Barrick Gold Corp. (ABX.TO: Quote, Profile , Research) has conceded defeat in its attempt to take over NovaGold Resources Inc. (NG.TO: Quote, Profile , Research), saying on Thursday that only about 14.8 percent of NovaGold shares had been deposited to its $1.7 billion hostile bid.
The world's biggest gold producer, Barrick had raised its cash offer once, to $16 a share, and extended it six times in a heated campaign to buy the junior explorer. But NovaGold fought back, spurning the bid as being too low." More
- December 07, 2006 | Item | E-mail
ECU Silver Mining Inc. & Golden Tag Resources Ltd. Announce Exploration Results From The San Diego Joint Venture - "These results are a solid start to the current drilling program on our San Diego property joint venture. Given that the mineralized veins and skarn environment of the San Diego property is similar to environment at ECU's Velardena Mining property, management feels that we have a very good road map on what to look for in the future." More
- December 07, 2006 | Item | E-mail
Uranium on Matamec Zeus Property - More
- December 07, 2006 | Item | E-mail
Green Dolphin Announces Change of Business Direction and the Acquisition of Mining Rights - More
- December 07, 2006 | Item | E-mail
Teck Cominco Excercises Earn-Back Rights on Four More Fronteer Gold Projects, Northwestern Turkey - "Fronteer Development Group Inc. ("Fronteer") (TSX:FRG.TO - News)(AMEX:FRG - News) announces that Teck Cominco Limited's Turkish subsidiary, Teck Cominco Arama ve Madencilik Sanayi Ticaret A.S. ("TCAM"), has elected to exercise its right to earn a 60% interest in four more gold projects in northwestern Turkey. As a result of TCAM's election, Fronteer is deemed to have earned a 100% interest in the properties. These projects include: Halilaga, Pirentepe, TV Tower and Dedidagi." More
- December 07, 2006 | Item | E-mail
NovaGold Update on Litigation Concerning Rock Creek Project in Alaska - "NovaGold Resources Inc. (TSX:NG.TO - News)(AMEX:NG - News) today announced that the U.S. Army Corps of Engineers ("Corps") is reviewing the Permit Evaluation and Decision Documents with regard to a permit issued on August 21, 2006 for NovaGold's Rock Creek project, and has suspended the permit while they complete the review. The Corps will allow NovaGold to continue work in uplands and areas previously disturbed." More
- December 07, 2006 | Item | E-mail
Fortuna Discovers Second Mineralized Shoot at San Jose Project, Mexico: Drills 868 g/t Ag, 8.5 g/t Au Over 1.8 Meters - "Fortuna Silver Mines Inc. (TSX VENTURE:FVI.V - News). Mr. Jorge Ganoza, President of Fortuna, is pleased to report that drilling at the 76 per cent owned San Jose project in Mexico has discovered a second high-grade mineralized shoot, known as the San Ignacio zone. San Ignacio is a zone of high-grade silver-gold mineralization located five hundred meters south and along strike from the Trinidad zone. Highlights from the recent drilling at San Ignacio include:" More
- December 07, 2006 | Item | E-mail
Pershimco Expands Mexican Exploration and Development Assets - More
- December 07, 2006 |
Gold Seeker Closing Report – Gold Ends Higher & Silver Gains Over 2%