-- Posted Wednesday, 17 January 2007 | Digg This Article
| Close | Gain/Loss |
Gold | $632.10 | +$7.10 |
Silver | $12.78 | +$0.25 |
XAU | 133.73 | +0.54% |
HUI | 318.12 | +0.56% |
GDM | 1024.65 | +0.51% |
JSE Gold | 2722.15 | -0.24% |
USD | 84.95 | -0.12 |
Euro | 129.30 | +0.08 |
Yen | 82.84 | -0.07 |
Oil | $52.24 | +$1.03 |
10-Year | 4.787% | +0.036 |
T-Bond | 110.5625 | -0.40625 |
Dow | 12577.15 | -0.04% |
Nasdaq | 2479.42 | -0.74% |
S&P | 1430.62 | -0.09% |
The Metals:
Gold fell a little over a dollar in Asia, dropped another few dollars in London, and came into New York nearly 1% lower at $620, but it then rose throughout most of the rest of trade and ended near its highs with a gain of 1.14%. Silver dropped to as low as $12.34 in early New York trade before it also rallied higher throughout most of the rest of trade and ended with a 2.00% gain.
Euro gold rose near €490, platinum gained $3 to $1,140, palladium rose $8 to $338, and copper gained a few cents to about $2.52.
Gold and silver equities rose over 1% in morning trade before they fell back off a bit, but they still ended with over 0.5% gains.
The Economy:
Report | For | Reading | Expected | Previous |
PPI | Dec | 0.9% | 0.5% | 2.0% |
Core PPI | Dec | 0.2% | 0.1% | 1.3% |
Net Foreign Purchases | Nov | $68.4B | - | $85.3B |
Industrial Production | Dec | 0.4% | 0.1% | -0.1% |
Capacity Utilization | Dec | 81.8% | 81.6% | 81.6% |
The fed’s Beige Book noted moderate growth. Also making news was the National Association of Home Builders/Wells Fargo Housing Market Index that rose to 35 from 33 and raised hopes about the housing sector.
Tomorrow at 8:30AM EST brings CPI for December expected at 0.4%, Core CPI expected at 0.2%. Housing Starts for December expected at 1,570,000, Building Permits expected at 1,505,000, and Initial Jobless claims for 1/12 expected at 315,000. At 10AM are Leading Economic Indicators for December expected at 0.2% and at noon is the Philadelphia Fed report for January expected at 2.0. Bernanke is also scheduled to testify on the economic and budget outlook before the Senate Budget Committee at 10AM tomorrow.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil started off the day lower in further reaction to yesterday’s news that there would likely be no emergency OPEC meeting to cut production, but prices rose over a dollar by the close on recent cold weather in the U.S. as traders prepared for tomorrow’s inventory reports.
The U.S. dollar index remained near unchanged and ended slightly lower after economic data suggested the fed will remain steady with interest rates and not raise them anytime soon.
Treasuries fell after the Beige Book and the NAHB were released and pushed interest rates higher on economic optimism.
The Dow, Nasdaq, and S&P remained near unchanged and ended slightly lower as oil rose and strong economic data reduced any hopes for a fed interest rate cut.
Among the big names making news in the market today were American Air, Lennar, JPMorgan, McDonald’s, and Mellon.
The Commentary:
“February Gold finished up 7.4 at 633.3, 1.5 off the high and 12.5 up from the low.
March Silver closed up 0.265 at 12.89. This was 0.46 up from the low and 0.1 off the high.
With a big range up extension Wednesday the gold market seemed to come alive. While the bear camp will suggest that the PPI report wasn't that supportive due to the muted excluding food and energy component of the PPI, the headline gain of +0.9% is certainly an inflationary reading. With the market also seeing sharp gains in a host of grain markets, the bull camp might be right in assuming that the "excluding Food and Energy" component of the inflation picture won't be staying muted for long. With the Dollar also showing signs of softening, despite decent US numbers and moderate inflation evidence, it is also possible that some gold bugs were moving to anticipate some coming weakness in the Dollar.
With the Dollar failing to rally in the wake of supportive scheduled data, the gold market strong, equity prices positive and a fleeting rally attempt in the oil market, it certainly seems like the overall environment for the silver is improving. With some parts of the trade and the Press suggesting that food price inflation might be set to impact North America and the overall macro economic outlook in the US lifted by the numbers on Wednesday the bull camp in silver seems to have an edge from a number of fronts. However, some traders were a little concerned that the March silver contract continued to exhibit some problems with a critical chart resistance zone of $12.98 but with the market steadily moving above the 200 day moving average it is somewhat difficult to make the technicals into a negative.” - The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Ted Butler: Changing of the guard?
The Statistics:
As of close of business: 1/16/2007
Gold Warehouse Stocks: | 7,530,519 | - |
Silver Warehouse Stocks: | 113,315,802 | + 155,672 |
Global Gold ETF Holdings
[WGC Sponsored ETF’s]
| Product name | Total Tonnes | Total Ounces | Total Value |
New York Stock Exchange (NYSE) AND Singapore Exchange (SGX) | Streettracks Gold Shares | 448.76 | 14,428,096 | US$ 9,046m |
LSE (London Stock Exchange) AND Euronext Paris | Gold Bullion Securities | 86.49 | 2,780,685 | US$ 1,757m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 10.67 | 342,768 | US$ 217m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 10.25 | 329,442 | US$ 204m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU)
Profile as of 1/16/2007 | |
Total Net Assets | $892,362,892 | 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 1/16/2007 | |
Total Net Assets | $1,528,930,135 | Ounces of Silver
in Trust | 119,101,742.400 |
Shares Outstanding | 11,950,000 | Tonnes of Silver
in Trust | 3,704.48 |
Note: Change in Total Tonnes from yesterday’s data: 92.98 tonnes were subtracted from the trust.
The Stocks:
Kimber’s (KBX) drill results, Cumberland’s (CLG) resource estimate, Nevsun’s (NSU) update, IAMGOLD’s (IAG) drill results, Fronteer’s (FRG) drill results, Bear Creek’s (BCM.V) new gold properties, Royal Gold’s (RGLD) acquired royalty, Silver Quest’s (SQI.V) drill results, Palmarejo’s (PJO.V) drill results, Aura Silver’s (AUU.V) project review, Silver Wheaton’s (SLW) acquisition of shares in Strategic Nevada Resources (SNS.V), and MAG Silver’s (MAG.V) drill results were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Fronteer | FRG +6.96% $9.38 |
2. Arizona Star | AZS +4.87% $11.84 |
3. Orezone | OZN +4.51% $1.39 |
LOSERS
1. Crystallex | KRY -3.88% $2.97 |
2. Mines MGMT | MGN -2.80% $5.56 |
3. Gold Reserve | GRZ -2.76% $3.88 |
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:
Geoinformatics Closes First Tranche of Convertible Loan Facility - More
- January 17, 2007 | Item | E-mail
Kimber announces drill results from Monterde & sampling at Pericones project - "Kimber is pleased to report further drill results from 30 holes at Monterde. These results are from reverse circulation ("RC") drilling at Monterde on Carmen (MTR) and Carotare (CTR) as well as core drilling on Carmen (CTC). Additionally, there are two reverse holes on El Orito Norte (EOR) and one on Veta Minitas (LMR)." More
- January 17, 2007 | Item | E-mail
Yankee Hat Announces Winter Drill Program Targeting the North Contact Zone, Fran Property - More
- January 17, 2007 | Item | E-mail
Typhoon Confirms Potential of Gold Zones at Fayolle With True Thicknesses of 7 to 11 Meters - More
- January 17, 2007 | Item | E-mail
Mega Uranium Grants Options to Directors and Officers - More
- January 17, 2007 | Item | E-mail
Acrex Ventures announces 2006 drill program results - More
- January 17, 2007 | Item | E-mail
Gold Seeker Closing Report: Gold & Silver Gain 1% & 2%