-- Posted Wednesday, 24 January 2007 | Digg This Article
| Close | Gain/Loss |
Gold | $647.10 | +$2.20 |
Silver | $13.18 | +$0.03 |
XAU | 140.21 | +1.67% |
HUI | 334.65 | +1.46% |
GDM | 1074.65 | +1.48% |
JSE Gold | 2835.09 | +2.44% |
USD | 84.95 | +0.29 |
Euro | 129.57 | -0.69 |
Yen | 82.64 | +0.39 |
Oil | $55.37 | +$0.33 |
10-Year | 4.810% | +0.006 |
T-Bond | 110.3125 | -0.09375 |
Dow | 12261.77 | +0.70% |
Nasdaq | 2466.28 | +1.43% |
S&P | 1440.13 | +0.85% |
The Metals:
Gold traded slightly lower in Asia and London before it furthered its losses in midmorning New York trade and dropped to as low as $638.70 at one point, but it then rallied higher for the rest of trade and ended just off its high of the day with a gain of 0.34%. Silver dropped to as low as $13.01 before it also rebounded into the close and ended with a gain of 0.23%.
Euro gold rose above €500, platinum gained $18 to $1,175, palladium gained $8 to $349, and copper rose a couple cents to above $2.60.
Gold and silver equities dropped over 1.5% in the first hour and a half of trade, but they then rallied higher for the rest of trade and ended with about 1.5% gains.
The Economy:
There were no major economic reports today, but the Mortgage Bankers Association’s report showing falling mortgage applications and a Congressional Budget Office 2007 “baseline” budget deficit prediction of $172 billion did have some talking.
Tomorrow at 8:30AM EST brings Initial Jobless Claims for 1/19 expected at 310,000 and at 10AM are Existing Home Sales for December expected at 6,300,000 and the Help-Wanted Index for December expected at 31.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil fell over a dollar after inventory reports came in better than expected overall as oil inventories built 700,000 barrels, gasoline inventories built 4.0 million barrels, and distillates built 700,000 barrels, but it then rallied higher into the close and ended slightly higher in further reaction to yesterday’s late day announcement that the U.S. government will double its strategic petroleum reserves.
The U.S. dollar index rose as the euro and pound fell on minutes from the Bank of England's latest meeting that were not as hawkish as expected, but gains in the index were limited as the yen rose on speculation that leading industrial nations will call for a stronger Japanese currency.
Treasuries fell despite a strong $20 billion 2 year note auction as traders prepared for economic data due out over the last two days of the week as there has been little data to act on thus far. The yield on the 10-year rose to a new 3 month high.
The Dow, Nasdaq, and S&P rose on mostly positive earnings reports. The Dow made a new record high close.
Among the big names making news in the market today were Ebay, Qualcomm, Cingular, McDonald’s, Corning, Ethan Allen, Express Scripts and Caremark, ConocoPhillips, General Dynamics, AmerisoureBergen, and WellPoint.
The Commentary:
“February Gold finished up 2.3 at 648.2, 0.3 off the high and 9.2 up from the low.
March Silver closed up 0.013 at 13.273. This was 0.173 up from the low and 0.017 off the high.
After some early pressure in the gold market, the market managed a rather impressive early afternoon recovery and that would seem to highlight ongoing interest by the bull camp. In fact, with the February gold contract managing to post a new high for the move in the wake of sharp declines in energy prices and a surge up in the Dollar, suggests that gold is capable of climbing in the face of bearish outside market action. With the US equity market firm and the geopolitical situation hardly throwing off flight to quality anxiety, it would seem like buyers in gold were being prompted by longer term investment type interest. With the new high for the move, the February gold contract reached the highest level since December 5th.
While some traders might view the quasi double top around $13.34 as a limiting price point, the fact that March silver did manage to reject the early selling pressure has to be viewed as a positive development. As in the gold market, the silver action was made even more impressive by the fact that the market had to fight negative price action in the Dollar and energy markets. As was suggested in the pre-opening and mid day comments, strength in a number of base metals markets might also have contributed to the silver market's ability to bounce on Wednesday. A number of traders have suggested that ongoing gains in the equity market, combined with gains in energy prices might serve to stimulate fresh buying in silver directly ahead.” - The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Kuwait may switch from dollar peg to currency basket
Another day, another currency manipulation -- or two
Speaking of cancer, the world financial system has it
The Statistics:
As of close of business: 1/23/2007
Gold Warehouse Stocks: | 7,463,524 | - |
Silver Warehouse Stocks: | 114,160,390 | + 10,401 |
Global Gold ETF Holdings
[WGC Sponsored ETF’s]
| Product name | Total Tonnes | Total Ounces | Total Value |
New York Stock Exchange (NYSE) AND Singapore Exchange (SGX) | Streettracks Gold Shares | 450.30 | 14,477,672 | US$ 9,300m |
LSE (London Stock Exchange) AND Euronext Paris | Gold Bullion Securities | 86.48 | 2,780,470 | US$ 1,803m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 10.67 | 342,741 | US$ 222m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 10.25 | 329,409 | US$ 211m |
Note: Change in Total Tonnes from yesterday’s data: The NYSE subtracted 1.54 tonnes.
COMEX Gold Trust (IAU)
Profile as of 1/23/2007 | |
Total Net Assets | $905,727,149 | Ounces of Gold
in Trust | 1,404,140.630 |
Shares Outstanding | 14,150,000 | Tonnes of Gold
in Trust | 43.67 |
Note: No change in Total Tonnes from yesterday’s data.
Silver Trust (SLV)
Profile as of 1/23/2007 | |
Total Net Assets | $1,558,559,985 | Ounces of Silver
in Trust | 119,101,742.400 |
Shares Outstanding | 11,950,000 | Tonnes of Silver
in Trust | 3,704.48 |
Note: No change in Total Tonnes from yesterday’s data.
The Stocks:
Kinross Gold’s (KGC) bid for Bema Gold (BGO), Royal Gold’s (RGLD) closed royalty transaction, Cardero’s (CDY) drill results, UC Resources’ (UC.V) production update, Endeavour Silver’s (EDR.TO) drill results, Silver Dragon’s (SDRG.OB) identified deposit, Arian Silver’s (AGQ.V) appointed nomad and broker, Strategic Nevada’s (SNS.V) new CFO, and Esperanza’s (EPZ.V) and Silver Standard’s (SSRI) drill results were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Claude Resources | CGR +4.48% $1.40 |
2. Silver Standard | SSRI +3.81% $32.69 |
3. Minefinders | MFN +3.65% $9.93 |
LOSERS
1. Cardero | CDY -2.48% $1.57 |
2. Fronteer | FRG-2.22% $10.57 |
3. Solitario | XPL -1.55% $3.82 |
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:
Conquest Resources Limited: Drilling Starts at King Bay, Ontario - More
- January 24, 2007 | Item | E-mail
Bema shareholders seen supporting Kinross takeover - "Bema Gold Corp. (BGO.TO: Quote, Profile , Research) shareholders are expected to approve a $2.8 billion takeover bid from Kinross Gold Corp. (K.TO: Quote, Profile , Research) despite opposition from one major shareholder, analysts and stakeholders said on Wednesday.
Andrew Mikitchook, an analyst with Westwind Partners expects the transaction to win shareholder support, as does Kerry Smith, an analyst with Haywood Securities." More
- January 24, 2007 | Item | E-mail
Tinka samples 0.9% copper at Tingo Este, Peru - More
- January 24, 2007 | Item | E-mail
Drake Gold Dividend Issuance and the Jackpot Placer Permit Process - More
- January 24, 2007 | Item | E-mail
Vault confirms VMS exploration model at Percy Lake and prepares for Phase II drill program - More
- January 24, 2007 | Item | E-mail
USEC Names J. Tracy Mey as Chief Accounting Officer - More
- January 24, 2007 | Item | E-mail
Gold Summit Retains Frei Partners for Investor Relations, Europe - More
- January 24, 2007 | Item | E-mail
Alexis Minerals Announces Conference Call for Thursday, Jan 25th At 10 AM E.S.T. - More
- January 24, 2007 | Item | E-mail
UC Resources Ltd.: Production and Exploration News Release - "UC Resources (TSX VENTURE:UC.V - News) is happy to announce that it has started its La Yesca Project processing plant with the purpose of testing all of the plant's components. The plant has been operating for a period of one week as part of the initial commissioning process, leading up to the initial production rate startup scheduled for early next week." More
- January 24, 2007 | Item | E-mail
Northland Receives Bulk Sample Permit for Stora Sahavaara Iron-Copper Project - More
- January 24, 2007 | Item | E-mail
Royal Gold Closes Penasquito Royalty Transaction - "Royal Gold, Inc. (Nasdaq: RGLD - News; TSX: RGL - News) today announced that is has closed its transaction with Minera Kennecott S.A. De C.V. to acquire a 2.0% net smelter return ("NSR") royalty on the Penasquito project in Zacatecas, Mexico, as previously announced on December 29, 2006. The cost of the acquisition was $80 million in cash and 577,434 shares of Royal Gold common stock. Royal Gold also obtained the right to acquire additional NSR royalties ranging from 1.0% to 2.0% on a number of properties in the region." More
- January 24, 2007 | Item | E-mail
Endeavour Silver Corp.: Drilling Defines Major Extensions to High Grade Silver Mineralized Zones at Guanacevi Mines Project, Durango, Mexico in 2006 - "Endeavour Silver Corp. (TSX:EDR.TO - News)(DBFrankfurt:EJD) announces that its exploration drilling programs in 2006 at the Guanacevi Mines Project in Durango, Mexico have successfully defined major extensions to the high grade silver mineralized zones at the Porvenir and Santa Cruz Mines." More
- January 24, 2007 | Item | E-mail
Cardero Intersects 243m @ 0.56% CuEq Including 88m @ 0.68% CuEq at the Huachi Copper-Gold Porphyry, San Juan Province, Argentina - "Drilling has intersected significant intervals of copper - gold mineralization associated with two altered porphyritic intrusions. The boreholes are interpreted to have collared above and/or along the flanks of the mineralized core of the system. Mineralization is open in all directions including at depth. The
Gold Seeker Closing Report: Gold & Silver Reverse Mid-Session Losses & End Higher