-- Posted Wednesday, 7 March 2007 | Digg This Article
| Close | Gain/Loss |
Gold | $649.20 | +$5.60 |
Silver | $12.96 | +$0.12 |
XAU | 132.56 | -0.55% |
HUI | 329.34 | +0.31% |
GDM | 1038.20 | +0.01% |
JSE Gold | 2726.86 | -0.63% |
USD | 83.77 | -0.27 |
Euro | 131.75 | +0.58 |
Yen | 85.96 | +0.29 |
Oil | $61.82 | +$1.13 |
10-Year | 4.497% | -0.031 |
T-Bond | 113.5 | +0.28125 |
Dow | 12192.45 | -0.12% |
Nasdaq | 2374.64 | -0.44% |
S&P | 1391.97 | -0.25% |
The Metals:
Gold traded moderately higher for most of trade in Asia and London before it dipped to the unchanged mark just before 10AM EST in New York, but it then rose over 1% in the next hour of trade, fell back off slightly, and rallied back higher into the close and ended near its high with a gain of 0.87%. Silver dropped to as low as $12.76 just before 10AM EST before it also rallied back higher for most of the rest of trade and ended with a gain of 0.93%.
Euro gold rose near €495, platinum lost $1 to $1,189, palladium remained unchanged at $346, and copper rose roughly 8 cents to about $2.76.
Gold and silver equities traded slightly higher for most of trade before they fell off in the last half hour of trade and ended mixed and near unchanged.
The Economy:
Report | For | Reading | Expected | Previous |
Consumer Credit | Jan | $6.4B | $7.0B | $5.0B |
The fed’s Beige Book noted modest economic expansion with some regional slowing, a weak housing market, an expanding labor market, and an overall market where inflation pressures are little changed. Also making economic news today was a 7.3% rise in mortgage applications and a report from the ADP National Employment Report showing private sector employment increased by 57,000 in February. The reading was not as large as expected, but most on Wall Street are waiting for Friday’s government report before making any conclusions.
Tomorrow at 8:30AM brings Initial Jobless Claims for 3/03 expected at 335,000, though most are already looking ahead to Friday’s jobs data.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil rose more than a dollar and remained near its highs into the close after today’s inventory reports revealed a surprise large drop, rather than an expected build, in crude inventories, and a larger than expected drop in gasoline inventories. Refinery problems, political tensions in Nigeria, and an upcoming OPEC meeting also had traders talking. Crude inventories fell 4.8 million barrels, gasoline inventories fell 3.8 million barrels, and distillates fell 1.3 million barrels.
The U.S. dollar index edged lower as the yen resumed its rise, but losses were minimal ahead of Friday’s jobs data.
Treasuries rose after the fed’s Beige Book hinted toward some slowing economic growth.
The Dow, Nasdaq, and S&P traded mixed and near unchanged for much of trade before they fell off in late trade and ended near their lows on concerns over the housing market and the economy.
Among the big names making news in the market today were American Eagle, DaimlerChrysler, Citigroup and Nikko, Saks, and BJ’s.
The Commentary:
“*The ECB group central bank selling is running less than 1/3 of what was expected according to the Washington Group Agreement. This leads to further emphasis of recent MIDAS conclusions:
- The bombing of the gold price last week had nothing to do with increased central bank selling from the ECB group, or even any central bank selling from them, as what they did feed into the market was needed to meet the daily/supply demand deficit.
- The Gold Cartel is in the deepest of trouble if they cannot procure more central bank gold supply from this ECB group. They turned the specs into sellers last week, which had the effect of adding short term gold supply, as well as scaring away physical market buyers. Without the real stuff to meet the daily deficit, gold will go right back up again, and at some point, EXPLODE … probably sooner than most think!” - From yesterday’s Midas report by Bill Murphy of LemetropoleCafe.com
“April Gold finished up 6.7 at 652.9, 0.6 off the high and 7.1 up from the low.
May Silver closed up 0.12 at 13.105. This was 0.205 up from the low and 0.025 off the high.
The gold market was certainly lifted by the fact that the equity market managed to shrug off early weakness. However, it is also likely that the gold market was lifted by the sharp upside extension in the energy complex. With the Fed Beige book also suggesting that the outlook for the US economy was generally holding together, (perhaps even more so than what the markets were recently factoring in the wake of the equity market slide) it wasn't surprising to see gold and other physical commodity market forge some impressive gains on the charts. As if the equity market and energy market action wasn't enough for the bull camp, the trade also saw a downside breakout in the Dollar and that means that most of the outside market forces on Wednesday were supporting the bull case in gold.
In addition to direct support from the gold market, the silver market was also favored by the sharp rise in the equity market, sharp gains in energy prices and a very impressive early run up in copper prices. Certainly an improved macro economic outlook was part of the recovery bounce in silver and with each passing day it would seem like the equity market anxiety is beginning to die down and that is also positive for the silver market. Some players are even suggesting that resurgent Japanese economic growth might be ahead and that in turn could be an offset to the recent Chinese tightening. In the end, the outside market forces have shifted again and now appear to be capable of supporting silver prices.” - The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Assuming government bailout protection, Moody's upgrades Morgan Chase
Hugo Salinas Price: A fairy-tale world
James Turk: $720 gold in two months
Ted Butler: Keep it simple
The Statistics:
As of close of business: 3//2007
Gold Warehouse Stocks: | 7,486,093 | - |
Silver Warehouse Stocks: | 117,637,158 | - |
Global Gold ETF Holdings
[WGC Sponsored ETF’s]
| Product name | Total Tonnes | Total Ounces | Total Value |
New York Stock Exchange (NYSE) AND Singapore Exchange (SGX) | Streettracks Gold Shares | 481.16 | 15,469,742 | US$ 9,958m |
LSE (London Stock Exchange) AND Euronext Paris | Gold Bullion Securities | 88.00 | 2,829,167 | US$ 1,842m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 11.30 | 362,927 | US$ 236m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 10.73 | 345,108 | US$ 222m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU)
Profile as of 3/6/2007 | |
Total Net Assets | $916,112,900 | 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 3/6/2007 | |
Total Net Assets | $1,642,269,397 | Ounces of Silver
in Trust | 126,974,157.100 |
Shares Outstanding | 12,750,000 | Tonnes of Silver
in Trust | 3,949.34 |
Note: No change in Total Tonnes from yesterday’s data.
The Stocks:
North American palladium’s (PAL) new CFO, Eldorado Gold’s (EGO) gold mining certificate, UC Resource’s (UC.V) LOI with Spider Resources Inc. (CDNX:SPQ.V), and YGC’s (YGC.TO) drill results were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Ivanhoe | IVN+12.69% $11.81 |
2. Entree Gold | EGI +7.95% $1.63 |
3. Solitario | XPL +5.18% $3.86 |
LOSERS
1. Exeter | XRA -4.76% $1.60 |
2. Rubicon | RBY -2.54% $1.15 |
3. Banro | BAA-1.99% $11.80 |
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:
Uranium Hunter Strengthens Management Team With Appointments to the Board of Advisors - More
- March 07, 2007 | Item | E-mail
SXR Uranium mines for acquisitions to fuel growth - More
- March 07, 2007 | Item | E-mail
UC Resources Ltd. and Spider Resources Inc. Team Up to Explore McFauld's VMS Project in Northern Ontario - "Spider Resources Inc. ("Spider") (CDNX:SPQ.V - News) and UC Resources Limited ("UC") (CDNX:UC.V - News) announce the signing of a Letter of Intent (LOI), regarding a four year exploration program on the McFauld's Lake volcanic-hosted massive sulphide ("VMS") project, located in northern Ontario in the James Bay Lowlands, held by Spider and its joint venture partner, KWG Resources Inc. This LOI confirms the terms and conditions on which UC will have an option to earn-in to an up to 55% undivided interest in the McFauld's Lake project, which is currently owned, as to an undivided 50% interest, by each of Spider and KWG." More
- March 07, 2007 | Item | E-mail
Verena Announces Closing of Private Placement - More
- March 07, 2007 | Item | E-mail
Thunder Mountain Gold Stakes 160 Acres of Highly Prospective Ground in the Prolific Tonopah Mining District - More
- March 07, 2007 | Item | E-mail
Solitaire's Mystery Island Yields High Grade Copper from Review of Technical Library - More
- March 07, 2007 | Item | E-mail
Mexivada discovers visible gold zones at Mayoko Project, Republic of Congo - More
- March 07, 2007 | Item | E-mail
Wesdome Gold Mines Ltd. - Signing of an option and purchase agreement with Britannica Resources Inc. - More
- March 07, 2007 | Item | E-mail
First Narrows Provides Drilling Update on Chester Feeder Deposit Project - More
- March 07, 2007 | Item | E-mail
Gold Seeker Closing Report: Gold & Silver Gain Nearly 1% to Just Under $650 and $13