-- Posted Tuesday, 6 March 2007 | Digg This Article
| Close | Gain/Loss |
Gold | $643.60 | +$6.00 |
Silver | $12.84 | +$0.25 |
XAU | 133.18 | +3.02% |
HUI | 328.31 | +4.27% |
GDM | 1038.05 | +3.48% |
JSE Gold | 2744.28 | +2.25% |
USD | 84.04 | -0.13 |
Euro | 131.17 | +0.22 |
Yen | 85.67 | -0.66 |
Oil | $60.69 | +$0.62 |
10-Year | 4.528% | +0.010 |
T-Bond | 113.21875 | -0.03125 |
Dow | 12207.59 | +1.30% |
Nasdaq | 2835.14 | +1.90% |
S&P | 1395.41 | +1.55% |
The Metals:
Gold fell over $5 in access trade late yesterday, quickly rebounded in Asia, and traded over $5 higher in London before it dipped near $640 in early New York trade. Gold then rebounded again and saw about 1% gains before it fell back near $640 once more in late morning trade, but it then rallied back above $645 ahead of a slight dip at the close that left it with a gain of 0.94%. Silver followed a similar rollercoaster ride and ended with a gain of 1.99%.
Euro gold rose over €490, platinum gained $22 to $1,190, palladium gained $6 to $346, and copper rose over 5 cents to nearly $2.68.
Gold and silver equities rose about 3% at the open before they slipped a bit heading into late morning trade, but they then rallied back higher in afternoon trade and ended with about 4% gains.
The Economy:
Report | For | Reading | Expected | Previous |
Productivity | Q4 | 1.6% | 1.7% | 3.0% |
Factory Orders | Jan | -5.6% | -4.0% | 2.6% |
Pending Home Sales | Jan | 108.7 | - | 112.3 |
Factory Orders fell the most in six years and Pending Home Sales fell 4.1% to erase nearly all the gains in the index in December. Also of economic note today:
Greenspan Sees `One-Third Probability' of 2007 Recession as Expansion Ebbs Bloomberg
Paulson Says Bad Debts Arising From U.S. Housing Slump Will Be Limited Bloomberg
Tomorrow at 2PM EST is the release of the fed’s Beige Book and at 3PM is Consumer Credit for January expected at $7.0 billion.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil rose as a rebounding stock market eased concerns over waning demand ahead of inventory reports tomorrow as cold weather in the Northeast and indications of increased world gasoline demand also had traders buying in the energy complex.
The U.S. dollar index rebounded versus the yen as it took a breather from its recent impressive gains, but the index fell overall as mostly poor U.S. economic data helped the euro move higher.
Treasuries fell as Productivity data showed a rise in labor costs and raised inflationary fears. Losses then moderated after Factory Orders and Pending Home Sales disappointed economically, but any move back towards unchanged was limited as investors moved away from the bond market and back into stocks.
The Dow, Nasdaq, and S&P followed world markets higher and ended with over 1% gains as talk of the unwinding of the yen carry trade dissipated and worries over the subprime mortgage market lessened.
Among the big names making news in the market today were Brown-Forman, Topps, Citigroup and Nikko Cordial, and ServiceMaster.
The Commentary:
“April Gold finished up 7 at 646.2, 2.6 off the high and 4.2 up from the low.
May Silver closed up 0.235 at 12.985. This was 0.185 up from the low and 0.055 off the high.
With a significant upward thrust off the recent lows, the gold market definitively benefited from the recovery in the stock market. While the trade didn't seem to be too concerned about the slack US economic readings on Tuesday morning, the weak economy theme could be something that comes back to haunt the bull camp at the end of the week, especially in the face of the upcoming monthly Unemployment report. With the energy complex forging some gains on the day, the waffling in the Dollar was mostly discounted and that in turn allowed the gold to get a bigger reaction to the equity market bounce.
While the Press was suggesting that light fund buying was behind the rather impressive bounce in the silver market on Tuesday, we suspect that the sharp bounce in the equity market cleared the way for the funds to think about getting long silver for a fresh play. However, it should be noted that the regularly scheduled US economic reports on Tuesday showed more concern of slowing ahead and without the run up in equity prices on Tuesday, the metals market could easily have embraced the fear of global slowing.” - The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Housing slide won't hurt financial sector, treasury secy. says
Grandich interviewed on ROB-TV and then at PDAC in Toronto
James Turk: Buying gold ETF isn't quite buying gold
The Statistics:
As of close of business: 3/5/2007
Gold Warehouse Stocks: | 7,486,093 | - |
Silver Warehouse Stocks: | 117,809,467 | - |
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 | 481.31 | 15,474,497 | US$ 9,850m |
LSE (London Stock Exchange) AND Euronext Paris | Gold Bullion Securities | 88.00 | 2,829,199 | US$ 1,825m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 11.30 | 362,931 | US$ 234m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 10.73 | 345,111 | US$ 219m |
Note: Change in Total Tonnes from yesterday’s data: The LSE added 0.93 tonnes.
COMEX Gold Trust (IAU)
Profile as of 3/5/2007 | |
Total Net Assets | $906,019,020 | Ounces of Gold
in Trust | 1,423,071.777 |
Shares Outstanding | 14,350,000 | Tonnes of Gold
in Trust | 44.26 |
Note: No change in Total Tonnes from yesterday’s data.
Silver Trust (SLV)
Profile as of 3/5/2007 | |
Total Net Assets | $1,600,389,848 | Ounces of Silver
in Trust | 126,974,157.100 |
Shares Outstanding | 12,750,000 | Tonnes of Silver
in Trust | 3,949.34 |
Note: Change in Total Tonnes from yesterday’s data: 29.46 tonnes were added to the trust.
The Stocks:
Royal Gold’s (RGLD) acquisition of Battle Mountain Gold Exploration (BMGX.OB), Kinross gold’s (KGC) convertible note redemption, Orezone’s (OZN) and Gold Fields (GFI) Full Feasibility Study, Pacific Rim’s (PMU) drill results, Newmont’s (NEM) CEO compensation, and Silverstone’s (SST.V) drill results were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Entree Gold | EGI +16.15% $1.51 |
2. Rubicon | RBY+12.38% $1.18 |
3. Golden Star | GSS +8.43% $3.86 |
LOSERS
1. Exeter | XRA -1.17% $1.68 |
2. Banro | BAA-0.58% $12.04 |
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:
Kinross to Redeem Convertible Notes - "Kinross Gold Corporation ("Kinross") (Toronto:K.TO - News)(NYSE:KGC - News) announced today that its wholly-owned subsidiary, EastWest Gold Corporation (formerly Bema Gold Corporation) has given notice to the holders of its U.S. $70 million 3.25% convertible notes due February 25, 2007 (the "Notes") that it will redeem the Notes on April 12, 2007 (the "Redemption Date") at their principal amount together with accrued but unpaid interest to the Redemption Date." More
- March 06, 2007 | Item | E-mail
Golden Valley Mines Ltd.: Private Placement with BearBeech Capital Partners Corp. - More
- March 06, 2007 | Item | E-mail
Adanac Molybdenum Corporation Signs Agreement to Provide a Construction Camp for the Ruby Creek Molybdenum Project - More
- March 06, 2007 | Item | E-mail
Azimut Exploration appoints Dennis Wood as Chairman of the Board and Pierre Toth as director - More
- March 06, 2007 | Item | E-mail
Blue Pearl Announces Archived Webcast of Molybdenum Outlook Presentation Available on Its Website - More
- March 06, 2007 | Item | E-mail
Acero-Martin Announces Closing of First Tranche of Private Placement - More
- March 06, 2007 | Item | E-mail
Global Minerals Ltd. Announces Closing of $3,750,000 Private Placement - More
- March 06, 2007 | Item | E-mail
Soltoro Intercepts Precious & Base Metal System on El Rayo in Mexico - More
- March 06, 2007 | Item | E-mail
Orezone Resources Inc.: Gold Fields approves US$11.4M Full Feasibility Study - "Orezone Resources Inc. (Toronto:OZN.TO - News)(AMEX:OZN - News) is pleased to announce that it has been informed by Gold Fields Limited that it has commenced the Full Feasibility Study ("FFS") at Essakane Project in Burkina Faso with a budget of US$11.4M. Orezone and Gold Fields each own a 50% interest in the project however, Gold Fields can earn an additional 10% by completing a Bankable Feasibility Study (under rules of NI43-101 Bankable Feasibility is now referred to as Full Feasibility)." More
- March 06, 2007 | Item | E-mail
Gold Seeker Closing Report: Gold & Silver Gain About 1% & 2%