-- Posted Thursday, 11 January 2007 | Digg This Article
| Close | Gain/Loss |
Gold | $612.50 | +$0.60 |
Silver | $12.35 | +$0.01 |
XAU | 131.51 | +0.69% |
HUI | 309.95 | +0.22% |
GDM | 1001.89 | +0.76% |
JSE Gold | 2747.17 | +0.59% |
USD | 85.28 | +0.18 |
Euro | 128.85 | -0.55 |
Yen | 83.00 | -0.61 |
Oil | $51.88 | -$2.14 |
10-Year | 4.737% | +0.055 |
T-Bond | 111.1875 | -0.625 |
Dow | 12514.98 | +0.59% |
Nasdaq | 2484.85 | +1.04% |
S&P | 1423.82 | +0.63% |
The Metals:
Gold fell a few dollars in early Asian trade, rebounded to unchanged by the open in London, and traded mostly slightly higher for the rest of the day before it ended with a gain of 0.10%. Silver rose to over $12.50 in early New York trade before it fell back off into the close, but it still ended with a gain of 0.08%.
Euro gold rose near €475, platinum lost $14 to $1,131, palladium lost $2 to $324, and copper fell nearly 10 cents to about $2.57.
Gold and silver equities rose over 2% in the first couple of hours of trade, but they then sold off into the close and ended with less than 1% gains.
The Economy:
Report | For | Reading | Expected | Previous |
Initial Claims | 1/05 | 299K | 320K | 325K |
Tomorrow at 8:30AM EST brings Import and Export Prices for December and Retail Sales for December expected at 0.7%. Excluding autos, sales are expected at 0.5%. At 10AM are Business Inventories for November expected at 0.3% and at 2PM Treasury Budget for December expected at $24.0 billion.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil fell over two dollars on more warm weather forecasts, ample supplies, and a government report which showed oil consumption dropped 4% last week.
The U.S. dollar index rose despite a surprise Bank of England Rate hike as the European Central Bank did not indicate that they will raise interest rates next month as most were expecting.
Treasuries fell as Initial Jobless Claims came in better than expected and inflation worries raised by the Bank of England’s hike in interest rates pushed interest rates higher.
The Dow, Nasdaq, and S&P rose as oil fell off markedly again and raised hopes that falling energy costs will boost earnings.
Among the big names making news in the market today were AirTran and Midwest, NYSE Group, Bristol-Myers, and Six Flags.
The Commentary:
“February Gold finished up 0.5 at 613.9, 3.1 off the high and 2.4 up from the low.
March Silver closed up 0.015 at 12.46. This was 0.01 up from the low and 0.16 off the high.
The bull camp has to be somewhat happy with the performance of the gold market Thursday as the trade "mostly" stood up to more weakness in oil prices and perhaps even more surprising to a clear upward extension in the US Dollar! It is possible that the up beat dialogue toward the US economy and the rise in equity prices rekindled some inflation expectations and as was suggested in the mid day comments it is possible that the improvement in the US economic outlook prompted some physical demand expectations to be raised. With two different private forecasts suggesting that spot gold would average $700 or $680 in 2007 it is clear that many players remain optimistic towards gold and with the muted response to the sharp Dollar rally it would seem like the bull camp is to be respected. With the Fed expressing some concern over the magnitude of US Dollar holdings and suggesting that large US Dollar holdings might actually mask problems within the US economy and at the same time suggesting that increased market volatility might be seen ahead as a result of the holdings, one could suggest that the broad based diversification threat is still alive despite the current strength in the Dollar.
While the silver market fell back moderately from the days highs, it is somewhat of a moral victory for the bull camp to come away from the session without more significant losses. In fact, with the Dollar clearly exploding into a new higher trading range and the oil market falling sharply the sellers could have really attacked the silver and gold markets. However, as in the gold market it is possible that the slightly improved US macro economic outlook and the positive action in the copper market discouraged some selling in the precious metals markets.” - The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Last European bank will stop handling dollars for Iran
Gold ETFs expected to start in India within month
Russian commercial banks can't get enough gold
The Statistics:
As of close of business: 1/10/2007
Gold Warehouse Stocks: | 7,530,811 | - |
Silver Warehouse Stocks: | 113745309 | -39,839 |
Global Gold ETF Holdings
[WGC Sponsored ETF’s]
| Product name | Total Tonnes | Total Ounces | Total Value |
New York Stock Exchange (NYSE) AND Singapore Exchange (SGX) | Streettracks Gold Shares | 453.08 | 14,566,908 | US$ 8,862m |
LSE (London Stock Exchange) AND Euronext Paris | Gold Bullion Securities | 86.49 | 2,780,870 | US$ 1,701m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 10.57 | 339,590 | US$ 208m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 10.25 | 329,456 | US$ 200m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU)
Profile as of 1/10/2007 | |
Total Net Assets | $873,844,965 | Ounces of Gold
in Trust | 1,428,943.630 |
Shares Outstanding | 14,400,000 | Tonnes of Gold
in Trust | 44.45 |
Note: No change in Total Tonnes from yesterday’s data.
Silver Trust (SLV)
Profile as of 1/10/2007 | |
Total Net Assets | $1,519,824,332 | Ounces of Silver
in Trust | 122,091,233.400 |
Shares Outstanding | 12,250,000 | Tonnes of Silver
in Trust | 3,797.46 |
Note: No change in Total Tonnes from yesterday’s data.
The Stocks:
Newmont’s trial in Indonesia, Rio Narcea’s (RNO) increased stake in Chariot Resources (CHD.TO), Geocom’s (GOCM.OB) and Kinross Gold’s (KGC) update, Aurizon’s (AZK) 2006 gold production, Metallica’s (MRB) update, Gammon Lake’s (GRS) production, Taseko’s (TGB) reserves, Sabina’s (SBB.V) coverage, and Silver Eagle’s (SEG.TO) processing were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Crystallex | KRY +10.06% $3.39 |
2. Rio Narcea | RNO +5.91% $2.51 |
3. Mines MGMT | MGN +5.08% $4.76 |
LOSERS
1. Hecla Mining | HL -4.86% $6.66 |
2. Eldorado | EGO -2.68% $5.09 |
3. Almaden | AAU -2.59% $2.24 |
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:
Columbia Receives NI 43-101 Report for Lluvia de Oro Gold Property in Sonora, Mexico - More
- January 11, 2007 | Item | E-mail
Sabina Silver Coverage Initiated - "Sabina Silver Corporation is debt free, with approximately C$35 million in working capital cash and securities. In addition to the exploration and development focus on its large, 100% owned Hackett River Silver-Zinc Project, the company is also advancing the Del Norte Silver-Gold Project in the Stewart-Eskay Creek Mining District, British Columbia, in addition to four promising gold projects in the Red Lake Mining District, Ontario." More
- January 11, 2007 | Item | E-mail
Ur-Energy Announces Quarterly Update Webcast for January 16, 2007 - More
- January 11, 2007 | Item | E-mail
Purepoint Uranium Group Inc. Issues Employee Stock Options - More
- January 11, 2007 | Item | E-mail
Radisson Mining Resources Inc.: Encouraging Results of First Diamond Drill Hole at Dryden Molybdenum Project - More
- January 11, 2007 | Item | E-mail
Uruguay Mineral Exploration Inc. - Director's Dealing - More
- January 11, 2007 | Item | E-mail
Tonogold Resources, Inc.'s Land Department Options Van Deemen, Arizona Gold Project - More
- January 11, 2007 | Item | E-mail
Midway Continues to Expand Gold Discovery at Spring Valley Project, Nevada - More
- January 11, 2007 | Item | E-mail
Vannessa Ventures Ltd. - Shoreham Option Agreements - More
- January 11, 2007 | Item | E-mail
Venezuela limits takeovers to telecom, power cos - "Venezuela has no plans "for now" to extend its new nationalization drive beyond the power and telecommunications sectors, the economy minister said on Thursday, ruling out imminent moves in the mining sector." More
- January 11, 2007 | Item | E-mail
UrAsia announces new sales contract with major North American utility - More
- January 11, 2007 | Item | E-mail
Queenston Begins NI 43-101 Resource Drilling at Upper Beaver - More
- January 11, 2007 | Item | E-mail
Shoreham Resources Ltd.: Update on Marudi Mountain Gold Project in Guyana - More
- January 11, 2007 | Item | E-mail
Aspen Exploration Announces Alaska Gold Project - More
- January 11, 2007 | Item | E-mail
Freegold appoints Jeff Woods as Vice President Project Development - More
- January 11, 2007 | Item | E-mail
Tinka's surface channel sampling extends dimensions of large silver system at Colquipucro project in Peru, including 5m averaging 763 g/t Ag - More
- January 11, 2007 | Item | E-mail
First Metals Signs Letter of Intent with Xstrata Copper for Custom Milling - More
- January 11, 2007 | Item | E-mail
Gold Seeker Closing Report: Gold & Silver End Slightly Higher While Oil Plunges