-- Posted Wednesday, 31 January 2007 | Digg This Article
| Close | Gain/Loss |
Gold | $651.90 | +$7.80 |
Silver | $13.45 | +$0.17 |
XAU | 139.89 | +1.37% |
HUI | 336.01 | +1.95% |
GDM | 1074.91 | +1.57% |
JSE Gold | 2794.18 | +2.10% |
USD | 84.60 | -0.40 |
Euro | 130.27 | +0.65 |
Yen | 82.79 | +0.56 |
Oil | $58.14 | +$1.17 |
10-Year | 4.826% | -0.049 |
T-Bond | 110.125 | +0.625 |
Dow | 12621.69 | +0.79% |
Nasdaq | 2463.93 | +0.62% |
S&P | 1438.24 | +0.66% |
The Metals:
Gold traded as much as $3 higher in Asia and London before it fell at the New York open and traded over $2 lower at $641.90 at about 9AM EST, but it then rose over $10 in the next 2 hours of trade, fell back off a bit, rallied back higher into the close, and ended with a gain of 1.21%. Silver fell to $13.20 before it rallied over 40 cents higher in the next 2 hours of and trade and then fell back off a bit into the close, but it still ended with a gain of 1.28%. At the time of writing, both metals are also trading slightly higher from their closes in reaction to the fed’s statement.
Euro gold rose over €500, platinum gained $4 to $1,183, palladium remained unchanged at $338, and copper gained a few cents to about $2.57.
Gold and silver equities rose about 2% in the first couple hours of trade before they fell back off a bit leading up to the fed’s statement, but they soon returned close to their highs of the day following the fed’s statement and closed with near 2% gains.
The Economy:
Report | For | Reading | Expected | Previous |
GDP | Q4 | 3.5% | 3.0% | 2.0% |
Chain Deflator | Q4 | 1.5% | 1.6% | 1.9% |
Employment Cost Index | Q4 | 0.8% | 1.0% | 1.0% |
Chicago PMI | Jan | 48.8 | 52.0 | 51.6 |
Construction Spending | Dec | -0.4% | 0.0% | 0.1% |
The fed’s statement kept interest rates unchanged at 5.25% and noted moderate growth, low inflation, and tentative signs of stabilization in the housing market.
Tomorrow at 8:30AM EST brings Personal Spending for December expected at 0.7%, Personal Income expected at 0.5%, and Initial Jobless Claims for 1/27 expected at 315,000. At 10AM is the ISM Index for January expected at 51.5.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil seesawed on either side of unchanged after inventory reports showed crude inventories built 2.7 million barrels, gasoline inventories built 3.8 million barrels, and distillates fell 2.6 million barrels, but it then rose and ended near its highs after the fed came out and was positive on economic growth.
The U.S. dollar index rose following strong GDP, fell after Chicago PMI and Construction Spending came in weaker than expected, fell further after Treasury Secretary Paulson boosted the yen with some comments that he is watching the value of the currency "very, very closely," and fell even further following the fed’s statement that dashed any possible hopes for a fed interest rate hike anytime soon.
Treasuries fell after strong GDP, rose after weaker than expected Chicago PMI and Construction Spending, and gained even further following the fed’s statement that sent interest rates lower.
The Dow rose on decent earnings while the Nasdaq and S&P remained near unchanged ahead of the fed’s statement, but all three indices rose markedly following the fed’s statement and the Dow made a new all-time closing high while the S&P ended near a new 6 year high.
Among the big names making news in the market today were Google, Ford, Altria, US Airways and Delta, Boeing, Time Warner, Kodak, Lilly, and Tata Steel and Corus.
The Commentary:
“… The point is "the insiders" have an un-American unfair advantage over the little guy investor. It is an outrage. However, because they are the rich and powerful, when it comes to supporting the politicians, few are willing to take them on and expose the corruptness in this mess.
That sad part is The Gold Cartel and PPT crew have taken away the barometers from the investing public. Things might not be as copacetic as they appear on the surface, or according to that barometer. A rising gold price elicits such warnings, as does a volatile stock market in which the public is frightened out at times due to sharp corrections. IMO they have been put to sleep in both cases. Therefore, they are likely to be stunned one day and unprepared for some severe financial market distress. MANY will be left holding the bag, while the "insider banker, investment houses" will have either jumped out of the way of serious market losses, or made so much money up until then, the chaos will have little effect on their personal financial well-being.
Only then will a GATA be heard in the US. Too late for most. The Titanic will have already struck the iceberg.” - From yesterday’s Midas report by Bill Murphy of LemetropoleCafe.com
“April Gold finished up 7.7 at 657.9, 2.4 off the high and 10.4 up from the low.
March Silver closed up 0.195 at 13.57. This was 0.29 up from the low and 0.13 off the high.
At first blush one might have viewed the US economic data on Wednesday morning as neutral. However, seeing US GDP growth come in strong and seeing the Employment Cost Index decline might have set the ground work for a wider acceptance of an "on-hold" Fed, which might have been seen as a bullish setup for gold. With oil prices also managing to roar off some early highs, it is likely that flight to quality buying was present in the gold trade. In fact, the Press was already trumpeting an influx of investment interest prior to the favor turn in the energy complex and therefore the gold market saw a number of bullish themes come alive. In the end the FOMC meeting result seemed to provide a late buying burst to the gold market and in turn put the Dollar under additional pressure and that was a distinctly bullish result.
While the Fed hinted at lower inflation threats, the silver market didn't seem to be undermined that development. Instead gold and silver was lifted as a result of the potential for a steady Fed, as that might allow US growth to re-gather itself. With oil prices showing amazing strength in the wake of the weekly oil inventory reports and the US equity market lifted by the Fed outcome, it would seem like market conditions for silver ended the day somewhat improved over those present early in the session. Neither silver or copper was that concerned about the Fed's view that both growth and inflation were set to moderate, and that in turn might mean that investment interest will generally continue to flow toward silver.” - The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Mining giants indignant that someone else should rape and pillage Africa
Central banks can't determine how much leverage is out there
The Statistics:
As of close of business: 1/30/2007
Gold Warehouse Stocks: | 7,431,355 | - |
Silver Warehouse Stocks: | 113,958,020 | - |
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$ 9,338m |
LSE (London Stock Exchange) AND Euronext Paris | Gold Bullion Securities | 86.47 | 2,780,254 | US$ 1,815m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 10.67 | 342,715 | US$ 224m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 10.24 | 329,384 | US$ 212m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU)
Profile as of 1/30/2007 | |
Total Net Assets | $904,253,518 | 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 1/30/2007 | |
Total Net Assets | $1,539,353,074 | Ounces of Silver
in Trust | 117,108,945.800 |
Shares Outstanding | 11,750,000 | Tonnes of Silver
in Trust | 3,642.50 |
Note: Change in Total Tonnes from yesterday’s data: 30.99 tonnes were added to the trust.
The Stocks:
Bema’s (BGO) acquisition approval by Kinross (KGC), Minco’s (MMK) spin-off and name change, Taseko’s (TGB) copper cathode production, Cumberland’s (CLG) drill results, Banro’s (BAA) increased resources, Gold Fields’ (GFI) raised capital, ECU’s (ECU.V) drill results, Palmarejo’s (PJO.V) drilling updates, IMPACT’s (IPT.V) Frankfurt listing, Bear Creek’s (BCM.V) drill results, and Strategic Nevada’s (SNS.V) power restoration were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Gold Reserve | GRZ +12.57% $4.03 |
2. Minco Mining | MMK +6.59% $1.471 |
3. Exeter | XRA +6.53% $2.12 |
LOSERS
1. Tanzanian Royalty | TRE -4.62% $5.37 |
2. Apex Silver | SIL -3.07% $13.881 |
3. Great Basin | GBN -0.53% $1.8601 |
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:
Largo Resources Begins Platinum and Palladium Sampling Program at the Maracas Project in Bahia, Brazil - More
- January 31, 2007 | Item | E-mail
HudBay Announces January 01, 2007 Mineral Reserves and Mineral Resources - More
- January 31, 2007 | Item | E-mail
Aurus Announces Extension Regarding Date of Record of Dividend - More
- January 31, 2007 | Item | E-mail
Vior Grants 280,000 Share Options to Directors, Officers and Employees - More
- January 31, 2007 | Item | E-mail
Gold Seeker Closing Report: Gold & Silver Gain Over 1% Pre-Fed & Add to Gains Post-Fed