-- Posted Tuesday, 16 January 2007 | Digg This Article
| Close | Gain/Loss |
Gold | $625.00 | -$0.40 |
Silver | $12.53 | -$0.25 |
XAU | 133.01 | -1.31% |
HUI | 316.35 | -1.18% |
GDM | 1019.46 | -0.91% |
JSE Gold | 2728.60 | -1.35% |
USD | 85.07 | +0.04 |
Euro | 129.22 | UNCH |
Yen | 82.91 | -0.16 |
Oil | $51.21 | -$1.78 |
10-Year | 4.751% | -0.020 |
T-Bond | 111.00 | +0.1875 |
Dow | 12582.59 | +0.21% |
Nasdaq | 2497.78 | -0.20% |
S&P | 1431.90 | +0.08% |
The Metals:
Gold traded a couple dollars on either side of unchanged in world trade on Monday and early Tuesday and then rose a few dollars above Friday’s close in morning New York trade today, but it then dropped and traded a few dollars lower at $622.20 before it rallied back higher into the close and ended with a loss of just 0.06%. Silver traded mostly slightly higher in world trade on Monday before it fell off a bit in London today and then extended its losses in New York and ended near its lows with a loss of 1.96%.
Euro gold held near €485, platinum lost $9 to $1,137, palladium remained unchanged at $330, and copper remained at about $2.49.
Gold and silver equities fell nearly 2% in morning trade before they rebounded in afternoon trade, but they still ended with about 1% losses.
The Economy:
Report | For | Reading | Expected | Previous |
NY Empire State Index | Jan | 9.1 | 20.0 | 22.2 |
Tomorrow at 8:30AM EST brings PPI for December expected at 0.5% and Core PPI expected at 0.1%. At 9am are Net Foreign Purchase for November, at 9:15 are Industrial Production for December expected at 0.1% and Capacity Utilization expected at 81.7%, and at 2PM is the fed’s Beige Book. Traders will also have their eyes on the National Association of Home Builders sentiment index.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil again fell markedly to the lowest since May 2005 as Saudi Arabia denied the need for any production cuts by OPEC after recent speculation that OPEC was considering an emergency meeting in order to consider further production cuts.
The U.S. dollar index found slight gains as the yen dropped after it became less likely that the Bank of Japan would raise interest rates at the conclusion of their meeting this Thursday.
Treasuries rose after the NY Empire State Index came in less than expected, but gains were somewhat limited ahead of tomorrow’s deluge of economic data.
The Dow, Nasdaq, and S&P traded on either side of unchanged and ended mixed as significantly lower oil battled worries over upcoming earnings reports.
Among the big names making news in the market today were TD Ameritrade, Express Scripts and Caremark, Citigroup, JPMorgan, Goldman Sachs, Morgan Stanley, Carlyle Group, Wells Fargo, GE, Centex, and Symantec.
The Commentary:
“The COT gold report was nothing less than breathtaking and represents one of the largest changes of positions I can recall. Lately, this report has been a non-event. Not this time ...
*The large specs decreased longs by 15,482 contacts and increased shorts by 9,533.
*The commercials increased longs by 13,680 and decreased shorts by 17,093 contracts.
*The small specs decreased longs by 3,760 contracts and increased shorts by 1,998.
The Gold Cartel has done its thing AGAIN, fleecing numerous longs out of the market. With the gold open interest where it is, we have a set up to flush out many more spec shorts, while, as the market moves up, spec longs pour in.
The fundamental and technical set up for both gold and silver could not be better.” - From last Friday’s Midas report by Bill Murphy of LemetropoleCafe.com
“February Gold finished down 1 at 625.9, 3.1 off the high and 2.7 up from the low.
March Silver closed down 0.255 at 12.625. This was 0.005 up from the low and 0.315 off the high.
The gold market seemed to have positive momentum early but then seemed to become very weak into mid session. However, despite the fact that the Dollar remained in positive ground and that oil prices remained extremely weak, the gold market eventually managed to reject a moderate portion of the early selling pressure. With the US equity market weak and choppy and the US economic numbers released during the session very soft, it would not have been surprising to see the gold market remain on its lows into the close. While OPEC might still surprise the trade with an emergency meeting, it seems like the oil market is discounting the potential for cold weather and therefore a number of gold traders are fearful that weak oil prices will continue to plague gold prices. The market discounted potentially bullish demand stories from Dubai during the session and also seemed to discount the argument that weak US economic numbers this week would restart the selling in the US Dollar.
The silver market seemed to come under more liquidation pressure than the gold market. With the copper market seeing massive selling pressure throughout the session, oil prices finishing very poorly and the Dollar able to rebound, there was a host of outside market forces that favored long liquidation on Tuesday. While the gold market continued to see Press stories about the expectation of solid physical demand on weakness, the silver market isn't seeing similar stories and that could leave silver vulnerable to more long liquidation selling ahead. In fact, as long as a quasi deflationary environment exists (brought about by the weak US Fed manufacturing data, falling oil and declining copper prices) the bear camp has to feel much more confident about their positions than the bull camp.” - The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
India approves exchange-traded funds for gold
Dollar's prestige falls among Russians
Goldman expects 'modest' fall in dollar, interest rate cuts
Peter Brimelow: After rude start to '07, gold bugs have reason to hope
GoldMoney's Turk, Resource Investor's Arensberg see upward turn for gold
Euro continues to displace dollar in bond markets
Chavez says private firms can hold minority shares in Venezuelan oilfields
Nationalization in Latin America may not be expropriation
Central banks may put more reserves into equities, less into bonds
Mere celebrities get more gold in their medals than real heroes do
Bahrain rejects change in currency's dollar peg
The Statistics:
As of close of business: 1/12/2007
Gold Warehouse Stocks: | 7,530,519 | -292 |
Silver Warehouse Stocks: | 113,160,130 | - 606,525 |
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 | 448.76 | 14,428,096 | US$ 8,941m |
LSE (London Stock Exchange) AND Euronext Paris | Gold Bullion Securities | 86.49 | 2,780,716 | US$ 1,741m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 10.67 | 342,772 | US$ 215m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 10.25 | 329,442 | US$ 204m |
Note: Change in Total Tonnes from yesterday’s data: The NYSE subtracted 4.32 tonnes.
COMEX Gold Trust (IAU)
Profile as of 1/12/2007 | |
Total Net Assets | $893,688,117 | 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 1/12/2007 | |
Total Net Assets | $1,517,340,935 | 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:
Freeport’s (FCX) earnings, New Gold’s (NGD) mine permit application, Gammon Lake’s (GRS) high grade discoveries, Kirkland’s (KGI.TO) drill results, Queenstake’s (QEE) fourth quarter production and bridge loan financing, Claude’s (CGR) new Board member, Eldorado’s (EGO) pre-feasibility study results, Palmarejo’s (PJO.V) initial resource statement, Hochschild Mining’s (HOC.L) second-half output, Strategic Nevada’s (SNS.V) hiring of Stewart contracting, and Silvercorp’s (SVM.TO) acquired interest in the HPG property were among the big stories in the gold and silver mining industry making headlines today and yesterday.
WINNERS
1. Mines MGMT | MGN+9.16% $5.72 |
2. Kimber | KBX +4.48% $2.10 |
3. Minefinders | MFN +3.08% $9.38 |
LOSERS
1. Seabridge | SA-5.49% $11.71 |
2. Cardero | CDY-5.42% $1.57 |
3. Solitario | XPL -4.02% $3.82 |
Winners & Losers tracks NYSE and AMEX listed gold and silver mining stocks that trade over $1.
All of today's and yesterday’s gold and silver stock news:
Virginia Grants 124,000 Stock Options - More
- January 16, 2007 | Item | E-mail
HuntMountain Announces Positive Drill Intercepts at Its Dun Glen Nevada Property - More
- January 16, 2007 | Item | E-mail
Eaglecrest Discovers New High-Grade Gold Shoots - More
- January 16, 2007 | Item | E-mail
Running Fox: Making Progress With New Technology and Completes $2.4 Million Private Placement Financing - More
- January 16, 2007 | Item | E-mail
Roxmark ships moly concentrate milled from Nortoba-Tyson bulk sample, receives permits for underground development - More
- January 16, 2007 | Item | E-mail
Pele Mountain Reports NI 43-101 Mineral Resource of 33 Million Pounds Uranium Oxide at Elliot Lake - More
- January 16, 2007 | Item | E-mail
Kinbauri Signs Option to Purchase Rio Narcea Gold Assets in Spain - More
- January 16, 2007 | Item | E-mail
TSX: GEM - Pele Mountain Reports NI 43-101 Mineral Resource of 33 Million Pounds Uranium Oxide at Elliot Lake
- January 16, 2007 | Item | E-mail
Gold Seeker Closing Report: Gold Dips & Silver Drops