-- Posted Tuesday, 13 March 2007 | Digg This Article
| Close | Gain/Loss |
Gold | $647.50 | -$1.50 |
Silver | $12.81 | -$0.14 |
XAU | 128.58 | -3.88% |
HUI | 318.72 | -3.89% |
GDM | 1011.21 | -3.73% |
JSE Gold | 2780.87 | +0.63% |
USD | 83.72 | -0.13 |
Euro | 132.09 | +0.29 |
Yen | 85.82 | +0.86 |
Oil | $57.93 | -$0.98 |
10-Year | 4.495% | -0.058 |
T-Bond | 113.3125 | +0.46875 |
Dow | 12075.96 | -1.97% |
Nasdaq | 2350.57 | -2.15% |
S&P | 1377.95 | -2.04% |
The Metals:
Gold traded slightly higher in Asia, fell a bit in London, and dropped to $647.10 by the open of trade in New York, but it then rallied to about $652 by about 10AM EST before it fell back off for the rest of trade and ended back near its low of the session with a loss of 0.23%. Silver followed a similar pattern, but it made new lows by the close and ended with a loss of 1.08%.
Euro gold fell under €490, platinum gained $10 to $1,214, palladium lost $4 to $346, and copper fell a couple of cents to about $2.81.
Gold and silver equities opened briefly higher before they steadily fell off for the rest of trade along with the major indices and ended with near 4% losses.
The Economy:
Report | For | Reading | Expected | Previous |
Retail Sales | Feb | 0.1% | 0.3% | 0.0% |
Retail Sales ex-auto | Feb | -0.1% | 0.3% | 0.2% |
Business Inventories | Jan | 0.2% | 0.2% | 0.0% |
Also making economic news today was a report from the Mortgage Bankers Association showing that subprime delinquencies rose to 13.33%, the highest rate in four years.
Tomorrow at 8:30AM EST brings Import and Export Prices for February and the fourth quarter Current Account expected at -$203.5 billion.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
The Dow, Nasdaq, and S&P fell roughly 2% on increased worries over subprime mortgages and their impact on the entire housing sector and the overall economy.
Oil prices rose in early trade as the International Energy Agency warned of falling supplies and called for more OPEC oil, but prices then turned lower on concerns of falling demand as the Dow and other major indices fell notably in afternoon trade.
The U.S. dollar index fell as disappointing Retail Sales reduced the chance the fed will increase interest rates. The yen resumed its gains as a result of the unwinding of the carry trade.
Treasuries rose as poor economic data and general market weakness encouraged safe haven buying. The yield on the 10-year fell back under 4.5% to its lowest close in four months.
Among the big names making news in the market today were Accredited Home Lenders and New Century Financial, Viacom and YouTube, Revlon, Goldman Sachs, and Citigroup and Nikko.
The Commentary:
“April Gold finished down 0.9 at 649.4, 4.1 off the high and 0.6 up from the low.
May Silver closed down 0.125 at 12.96. This was 0.08 up from the low and 0.13 off the high.
After waffling around unchanged early in the session, the gold market seemed to get some brief flight to quality buying support off the idea that the US sub prime loan situation might provide a financial anxiety event. With news that a US sub prime lender had unstated its debt and the trade circulating talk that the company might be investigated there was certainly some uncertainty in the marketplace. With the added uncertainty created by a moderate washout in the equity market one didn't have to look far to find a flight to quality story. However, in the end the gold market didn't see that big of a lift from the flight to quality buying theme. In fact, in the face of rising energy prices and a slumping Dollar the weakness in the gold market on Tuesday had to be disappointing to the bull camp.
The silver market didn't seem to get as much early buying interest as other precious metals markets on Tuesday morning. In fact, the silver market seemed to be undermined by the softer than expected US economic readings and because of the moderate weakness in the US equity market. In other words, the silver market was acting like a physical demand drive commodity in a slowing environment. In fact, a reversal in the copper market after significant early gains probably enhanced the liquidative posture in silver just as much as the soft US numbers.” - The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Hoping to turn party around, Ron Paul seeks Republican presidential nomination
Treasury says subprime problem is manageable
China promises more market liberalization, including gold
China will keep buying U.S. Treasuries as it diversifies reserves
Concern grows over inadequate funding of commodities trading regulator
No more no-money-down mortgages from Countrywide
A mining speculator fights a gold Goliath high in the Andes
The Statistics:
As of close of business: 3/12/2007
Gold Warehouse Stocks: | 7,536,043 | + 50,151 |
Silver Warehouse Stocks: | 118,777,136 | - |
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 | 483.01 | 15,529,199 | US$ 10,058m |
LSE (London Stock Exchange) AND Euronext Paris | Gold Bullion Securities | 87.99 | 2,828,979 | US$ 1,824m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 11.30 | 362,903 | US$ 234m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 11.10 | 356,972 | US$ 231m |
Note: Change in Total Tonnes from Friday’s data: They NYSE subtracted 4.31 tonnes and the JSR added 0.24 tonnes.
COMEX Gold Trust (IAU)
Profile as of 3/9/2007 | |
Total Net Assets | $922,598,248 | 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 Friday’s data.
Silver Trust (SLV)
Profile as of 3/9/2007 | |
Total Net Assets | $1,672,406,648 | Ounces of Silver
in Trust | 128,965,697.300 |
Shares Outstanding | 12,950,000 | Tonnes of Silver
in Trust | 4,011.28 |
Note: Change in Total Tonnes from Friday’s data: 30.97 tonnes were added to the trust.
The Stocks:
U.S. Gold’s (UXG) takeover offers, Rio Narcea’s (RNO) additional information about Chariot Resources’ shareholder rights plan, Crystallex’s (KRY) comment on press speculation, International Royalty’s (ROY) royalty acquisition, Glencairn’s (GLE) drill results, UC Resources’ (UC.V) private placement, U.S. Silver’s (USA.V) drill results, Orko Silver’s (OK.V) new resource estimate, and Aura Silver’s (AUU.V) Taviche project were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Nevsun | NSU +2.48% $2.07 |
2. Tanzanian Royalty | TRE +2.15% $5.23 |
3. Great Basin | GBN +1.42% $2.15 |
LOSERS
1. Gold Reserve | GRZ -9.52% $4.18 |
2. Crystallex | KRY -7.14% $2.99 |
3. Fronteer | FRG-6.93% $11.42 |
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:
U.S. Canadian Minerals, Inc.'s New Management Team Announces Filing of March 31, 2005 and June 30, 2005 10-QSBs - More
- March 13, 2007 | Item | E-mail
YGC appoints KPMG LLP as auditor - More
- March 13, 2007 | Item | E-mail
Pele Mountain Announces Closing of Financing - More
- March 13, 2007 | Item | E-mail
Win-Eldrich Retains Investor Relations Consultant and Grants Stock Options - More
- March 13, 2007 | Item | E-mail
Philip F. Cunningham files Early Warning Report following conversion of debentures of Roxmark Mines Limited (CNQ: RMKL) - More
- March 13, 2007 | Item | E-mail
Tombstone Exploration Corporation Announces Spring 2007 Drilling Program - More
- March 13, 2007 | Item | E-mail
Taranis Resources Inc. Selects Quantec Geoscience Inc. to Undertake Deep Penetration E.M. Surveys at Thor Property, British Columbia - More
- March 13, 2007 | Item | E-mail
North Atlantic Starts Second Drilling Program at the Massala Gold Project, Mali - More
- March 13, 2007
Gold Seeker Closing Report: Gold & Silver Fall with Most Markets