-- Posted Thursday, 1 February 2007 | Digg This Article
| Close | Gain/Loss |
Gold | $657.00 | +$5.10 |
Silver | $13.63 | +$0.18 |
XAU | 141.08 | +085 |
HUI | 339.11 | +0.92% |
GDM | 1084.84 | +0.92% |
JSE Gold | 2811.16 | +0.61% |
USD | 84.64 | +0.04 |
Euro | 130.28 | +0.01 |
Yen | 82.88 | +0.09 |
Oil | $57.30 | -$0.84 |
10-Year | 4.837 | +0.011 |
T-Bond | 110.0625 | -0.625 |
Dow | 12673.68 | +0.41% |
Nasdaq | 2468.38 | +0.18% |
S&P | 1445.94 | +0.54% |
The Metals:
Gold traded mostly slightly higher in Asia and London and rose nearly $10 above $660 by 10AM EST in New York before it fell back off into the close, but it still ended with a gain of 0.78%. Silver rose near $13.75 before it also fell back off into the close, but it still ended with a gain of 1.34%.
Euro gold rose to about €505, platinum gained $8 to $1,191, palladium gained $5 to $343, and copper fell roughly 6 cents to about $2.51.
Gold and silver equities rose over 2% at the open, but they then slowly and steadily sold off from there and ended with less than 1% gains.
The Economy:
Report | For | Reading | Expected | Previous |
Personal Income | Dec | 0.5% | 0.5% | 0.3% |
Personal Spending | Dec | 0.7% | 0.7% | 0.5% |
Initial Claims | 1/27 | 307K | 315K | 327K |
ISM Index | Jan | 49.3 | 51.5 | 51.4 |
Also making economic news today was the Pending Home Sales report which jumped 4.9% in December for the largest gain in almost 3 years.
“People once again spent everything they made and then some last year, pushing the personal savings rate to the lowest level since the Great Depression more than seven decades ago.
The Commerce Department reported Thursday that the savings rate for all of 2006 was a negative 1 percent, meaning that not only did people spend all the money they earned but they also dipped into savings or increased borrowing to finance purchases. The 2006 figure was lower than a negative 0.4 percent in 2005 and was the poorest showing since a negative 1.5 percent savings rate in 1933 during the Depression.”
Tomorrow at 8:30AM EST is January’s jobs data. Nonfarm Payrolls are expected at 150,000, the Unemployment Rate is expected at 4.5%, Hourly Earnings are expected at 0.3%, and the Average Workweek is expected at 33.9. At 10AM are Factory orders for December expected at 1.8% and Michigan Sentiment for January expected at 97.8.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil fell after natural gas inventories fell a smaller than expected 186 billion cubic feet as a weaker than expected ISM Index also pointed to lower demand due to slowing economic growth.
The U.S. dollar index remained near unchanged on mixed economic data as traders looked ahead to tomorrow’s jobs report.
Treasuries rose in early trade, but they then fell on rising price pressures contained in the ISM report and on encouraging results from the Pending Home Sales report.
The Dow, Nasdaq, and S&P rose on mixed earnings reports and varied economic data that made it increasingly likely the fed will not raise interest rates anytime soon.
Among the big names making news in the market today were Ford, Toyota, Exxon Mobil, Vornado, and Equity Office, Comcast, American Standard, CVS, Marsh & McLennan and Putnam, and Shell.
The Commentary:
“April Gold finished up 5.1 at 663, 4 off the high and 2.3 up from the low.
March Silver closed up 0.155 at 13.725. This was 0.075 up from the low and 0.105 off the high.
The gold market managed to weather a number of potentially damaging fundamental headlines on Thursday and in the process the market managed to reach the highest level since August 9th. In fact, the gold market seemed to hold most of the gains, despite the fact that the Dollar attempted to drift back into positive ground in the afternoon action the gold market didn't seem to be deterred at all. It is possible that a run up in the equity market and a favorable NAR Index reading provided the gold bulls with an offset to the somewhat slack US economic readings released early in the session. In short, the market sees ongoing growth in the US, the prospect of inflation inspired by generally rising oil prices and that is a supportive environment for gold.
While the March silver did manage to forge a distinct new high for the move, the market was unable to hold above the prior sessions highs. Certainly the silver and gold markets were boosted by ongoing fund buying, but the lack of upside follow through in the energy complex and a rather significant washout in copper prices might have prompted some profit taking incentives late in the session. However, with the US equity market managing to post some impressive gains and the markets still of a mind that the Fed is on-hold, it would seem like a number of fundamental factors continue to favor the bull camp.” - The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Blanchard & Co. research note: IMF can't scare gold anymore
FNArena notes IMF gold sale idea and GATA
There's gonna be a great day
IMF would sell gold because European central banks won't anymore
Venezuela gets a fuhrer
Jim Sinclair: Any IMF sales will be great for gold
Central banks must be running low: IMF talks gold sales again
The Statistics:
As of close of business: 1/31/2007
Gold Warehouse Stocks: | 7,459,165 | + 27,810 |
Silver Warehouse Stocks: | 113,969,680 | + 11,660 |
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$ 9,415m |
LSE (London Stock Exchange) AND Euronext Paris | Gold Bullion Securities | 87.10 | 2,800,222 | US$ 1,842m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 10.67 | 342,711 | US$ 226m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 10.24 | 329,380 | US$ 214m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU)
Profile as of 1/31/2007 | |
Total Net Assets | $915,195,905 | 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 1/31/2007 | |
Total Net Assets | $1,563,924,865 | Ounces of Silver
in Trust | 117,108,945.800 |
Shares Outstanding | 11,750,000 | Tonnes of Silver
in Trust | 3,642.50 |
Note: No change in Total Tonnes from yesterday’s data.
The Stocks:
Royal Gold’s (RGLD) second quarter results, Aurizon’s (AZK) drill results and operations update, Tanzanian Royalty’s (TRE) private placement, Northern Dynasty’s (NAK) award, Eldorado’s (EGO) year end update, Crystallex’s (KRY) new President and CEO, DRDGOLD’s (DROOY) restructuring, Southern Silver’s (SSV.V) private placement, and Apogee’s (APE.V) drill results were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Gold Reserve | GRZ +13.65% $4.58 |
2. Aurizon | AZK +8.28% $3.14 |
3. Vista Gold | VGZ +7.48% $8.77 |
LOSERS
1. Tanzanian Royalty | TRE -3.47% $5.1837 |
2. Minefinders | MFN -3.30% $10.25 |
3. Entree Gold | EGI -2.55% $1.53 |
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:
Hemisphere Gold Provides Details on Recent Acquisition - More
- February 01, 2007 | Item | E-mail
Weststar Resources Corp.: Forward Share Split - More
- February 01, 2007 | Item | E-mail
Running Fox Acquires 200 Prospective Uranium Claims - More
- February 01, 2007 | Item | E-mail
St Andrew Announces Exploration, Development and Production Plans for Holloway-Holt Gold Mine - More
- February 01, 2007 | Item | E-mail
Adanac Molybdenum Corporation: New Relationship Supports Major Step Towards New Mine - More
- February 01, 2007 | Item | E-mail
Merrex Expands Jubilee Zinc Deposit and Announces an Additional 15,000 Metres of Drilling - More
- February 01, 2007 | Item | E-mail
Gold Seeker Closing Report: Gold & Silver Gain Roughly 1% for the Second Day in a Row