-- Posted Wednesday, 28 February 2007 | Digg This Article
| Close | Gain/Loss |
Gold | $668.00 | -$15.60 |
Silver | $14.13 | -$036 |
XAU | 139.63 | +1.58% |
HUI | 339.80 | +1.52% |
GDM | 1086.54 | +1.40% |
JSE Gold | 2734.93 | -64.85 |
USD | 83.54 | +0.06 |
Euro | 132.32 | -0.12 |
Yen | 84.48 | +0.08 |
Oil | $61.79 | +$0.33 |
10-Year | 4.550% | +0.037 |
T-Bond | 113.00 | -0.40625 |
Dow | 12268.63 | +0.43% |
Nasdaq | 2416.13 | +0.34% |
S&P | 1406.82 | +0.56% |
The Metals:
Gold fell about $25 to under $660 in after hours access trade late yesterday before it rebounded in Asia and climbed above $675 by early trade in London, but it then steadily fell back off in later London and morning New York trade, remained near its lows in afternoon trade, and ended with a loss of 2.28%. Silver fell near $14.00 in after hours trade yesterday, rebounded to above $14.30 in London, fell to as low as $13.95 in late morning New York trade, and ended over 1% off its low with a loss of 2.48%.
Euro gold fell near €505, platinum lost $10 to $1,238, palladium lost $3 to $347, and copper fell a couple of cents to about $2.72.
Gold and silver equities saw slight losses in early trade, but they then rose for the rest of the day and ended with about 1.5% gains.
The Economy:
Report | For | Reading | Expected | Previous |
GDP | Q4 | 2.2% | 2.3% | 3.5% |
Chain Deflator | Q4 | 1.7% | 1.5% | 1.5% |
Chicago PMI | Feb | 47.9 | 50.0 | 48.8 |
New Home Sales | Jan | 937K | 1080K | 1123K |
Bernanke spoke before the House Budget Committee and stated that there is “no material change in our expectations for the U.S. economy.” He also calmed fears over liquidity and the subprime mortgage market, for most on Wall Street at least.
Tomorrow at 8:30AM EST brings Initial Jobless Claims for 2/24 expected at 325,000, Personal Income for January expected at 0.3%, and Personal Spending expected at 0.4%. At 10AM are Construction Spending for January expected at -0.4% and the ISM Index for February expected at 50.0.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil continued to fall for most of trade on continued concern over falling demand from China, but it then rallied higher in late trade and ended with small gains as those concerns were discounted and gasoline and distillate inventories fell. Crude inventories built 1.4 million barrels, gasoline inventories fell 1.9 million barrels, and distillates fell 3.8 million barrels.
The U.S. dollar index rebounded from yesterday’s notable losses and treasuries pulled back from yesterday’s sizeable gains as Bernanke calmed the markets, but gains in the dollar and losses in bonds were limited as economic data came in worse than expected and capped any notable moves higher in interest rates.
The Dow, Nasdaq, and S&P also rebounded from yesterday’s huge losses on Bernanke’s optimistic remarks before congress, but gains were limited to less than 1% compared to yesterday’s more than 3% losses.
Among the big names making news in the market today were Martha Stewart, Airbus, Merck, Sprint, Home and Depot.
The Commentary:
“With the pullback in so many markets, it is fair to say that the gold and silver pullback is not about gold and silver. The $ is down below $1.32:€, oil is still over $60, long-term gold buyers are still gripping their gold in tight fists, so it is a case of no-change in the fundamentals of these markets.
These falls are to do with short-term traders perceptions and Technical selling. They are also to do with funds, trying to break prices down too. There are dangerous signals of fundamental pressures in many markets [not gold & silver], which are causing some of the nervous traders to pull some money off the table.
What is very clear is that there has been a gear-shift rise in volatility in all world markets, something we are going to have to get used to, so expect vigorous moves both up and down to continue.” - Julian D.W. Phillips, www.goldforecaster.com
“April Gold finished down 14.7 at 672.5, 5.5 off the high and 8.5 up from the low.
March Silver closed down 0.445 at 14.1. This was 0.12 up from the low and 0.2 off the high.
The gold market started out weak, added to the declines in mid session and then mostly waffled around $12 to $15 per ounce lower on the day. With the Dollar managing to hold in positive ground in the face of slack US economic numbers, it wasn't surprising that the Gold market remained in a weak posture but one might have expected a strong recovery move in the equity market to have taken some of the pressure off the precious metals markets. Apparently the gold market was being hit with profit taking interest off the idea that some amount of macro economic slowing was ahead and that many investors in gold might be inclined to seek other investments in that type of environment. In fact, with US new Home sales in January declining by 16% and the Chicago Purchasing managers report also showing weakness it isn't surprising that the threat of recession is surfacing in the marketplace.
With the gold market off moderately during the session Wednesday it wasn't surprising to see the silver market come under additional long liquidation pressure. Some players suggested that the magnitude of the losses in silver might have prompted fresh out right selling and perhaps longer term technical selling. In the end, seeing weak US economic numbers, a higher US Dollar and sharply lower copper prices, it would seem like silver was being confronted with a patently bearish fundamental picture.” - The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Commodities exchange computer glitch story was a spoof
As yen carry trade unwinds, U.S. interest rate cut is anticipated
Computer glitch suppressed gold price since 1995
GATA Director Wistar Holt to host reception during PDAC in Toronto
Morgan executive to run international affairs for U.S. Treasury
Britain's public employees face raises below inflation rates
Computer problem exaggerated Dow's plunge
Market plunge doesn't scare gold advocates Grandich and Sinclair
Blanchard research note: Why it's time to load up on gold
The Statistics:
As of close of business: 2/27/2007
Gold Warehouse Stocks: | 7,487,176 | - |
Silver Warehouse Stocks: | 117207516 | + 597,436 |
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 | 487.47 | 15,672,701 | US$ 10,595m |
LSE (London Stock Exchange) AND Euronext Paris | Gold Bullion Securities | 87.07 | 2,799,384 | US$ 1,878m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 11.30 | 362,955 | US$ 244m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 10.73 | 345,134 | US$ 233m |
Note: Change in Total Tonnes from yesterday’s data: The JSE added 0.49 tonnes.
COMEX Gold Trust (IAU)
Profile as of 2/27/2007 | |
Total Net Assets | $973,258,828 | Ounces of Gold
in Trust | 1,423,505.730 |
Shares Outstanding | 14,350,000 | Tonnes of Gold
in Trust | 44.28 |
Note: No change in Total Tonnes from yesterday’s data.
Silver Trust (SLV)
Profile as of 2/27/2007 | |
Total Net Assets | $1,825,497,413 | Ounces of Silver
in Trust | 126,026,951.100 |
Shares Outstanding | 12,650,000 | Tonnes of Silver
in Trust | 3,919.88 |
Note: No change in Total Tonnes from yesterday’s data.
The Stocks:
NovaGold’s (NG) year-end results, Metallica’s (MRB) increased reserves, Seabridge’s (SA) filed 43-101 report, IMPACT’s (IPT.V) acquisition, South American Silver’s (SAC.TO) completed share sale, SNS Silver’s (SNS.V) granted stock options, 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. Rubicon | RBY +24.76% $1.31 |
2. International Royalty | ROY +4.65% $5.18 |
3. Kinross Gold | KGC +4.45% $14.08 |
LOSERS
1. U.S. Gold | UXG -4.99% $4.57 |
2. Entree Gold | EGI -4.64% $1.44 |
3. Exeter | XRA -3.98% $1.93 |
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:
NovaGold Year-End Financial Results and Project Update - "The last 12 months have certainly been exciting for NovaGold and its shareholders. In 2006 the Company continued to make significant headway at its three most advanced projects, acquired a "green" power company, survived a hostile takeover attempt and delivered outstanding shareholder returns. NovaGold is exceptionally well positioned in 2007 to take full advantage of the bull market in gold, silver and copper, leveraging its large and growing North American reserve and resource base that will continue to add significant new value for shareholders, and for the communities in which it works." More
- February 28, 2007 | Item | E-mail
Amerix Adds Technical Team - More
- February 28, 2007 | Item | E-mail
Landmark and Ucore Agree to Merge - More
- February 28, 2007 | Item | E-mail
Wealth Minerals Significantly Expands Diamante-Los Patos Uranium Property - More
- February 28, 2007 | Item | E-mail
Houston Lake Mining Closes $354,121 Non-Flow Through Private Placement - More
- February 28, 2007 | Item | E-mail
Landmar
Gold Seeker Closing Report: Gold & Silver Hold Yesterday’s After Hour Losses & Close Over 2% Lower