-- Posted Thursday, 5 April 2007 | Digg This Article
Note: US and Canadian markets will be closed on Friday for the Easter holiday. Economic data, including closely watched jobs data, will still be released and futures and bond trading will be open for reaction to it.
| Close | Gain/Loss | On Week |
Gold | $673.60 | +$1.70 | +1.55% |
Silver | $13.65 | +$0.12 | +2.48% |
XAU | 142.61 | -0.26% | +4.09% |
HUI | 354.15 | -0.53% | +4.88% |
GDM | 1119.51 | .017% | +4.45% |
JSE Gold | 2982.51 | +0.06% | +3.42% |
USD | 82.71 | -0.24 | -0.25% |
Euro | 134.24 | +0.53 | +0.43% |
Yen | 84.22 | -0.04 | -0.80% |
Oil | $64.28 | -$0.10 | -2.41% |
10-Year | 4.674% | +0.022 | +0.56% |
Bond | 111.03125 | -0.25 | -0.20% |
Dow | 12560.20 | +0.24% | +1.67% |
Nasdaq | 2471.34 | +0.51% | +2.05% |
S&P | 1443.76 | +0.30% | +1.61% |
The Metals:
Gold traded mostly slightly higher in Asia and London before it dipped a dollar to $670.90 shortly after the New York open, but it soon moved back higher on the day and traded $1-$3 higher for the rest of trade before it ended with a gain of 0.25%. Silver dropped to $13.52 in early New York trade before it also traded higher for the rest of trade and end with a gain of 0.89%.
Euro gold fell to about €502 on euro strength, platinum gained $20 to $1,264, palladium gained $1 to $352, and copper fell roughly 6 cents to about $3.23.
Gold and silver equities rose nearly 1% in the first half hour of trade, but they then fell back off in late morning trade and remained mixed and near unchanged for the rest of the day.
The Economy:
Report | For | Reading | Expected | Previous |
Initial Claims | 3/31 | 321K | 320K | 310K |
Tomorrow at 8:30AM EST brings March’s jobs data. Nonfarm Payrolls are expected at 135,000, the Unemployment Rate is expected at 4.6%, Hourly Earnings are expected at 0.3%, and the Average Workweek is expected at 33.8. At 10AM is the Wholesale Inventories report for February expected at 0.4% and at 3PM is Consumer Credit for February expected at $5.0 billion.
All of this week’s economic reports so far:
Next week’s economic highlights include FOMC minutes and the Treasury Budget on Wednesday, Import and Export Prices and Initial Jobless Claims on Thursday, and PPI, the Trade Balance, and Michigan Sentiment on Friday.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil fell as the freed British sailors returned safely to Britain, but losses were limited due to refinery outages and the fact that traders did not want to be caught short heading into the long weekend.
The U.S. dollar index fell to a 2-year low versus the euro as the euro found strength versus the pound on the Bank of England’s decision to leave interest rates unchanged at 5.25%. Some were expecting the BoE to hike rates, and a majority now expect them to hike rates in May.
Treasuries remained near unchanged ahead of tomorrow’s jobs data as expectations for small payroll growth battled expectations for higher wage growth, but higher inflation worries ultimately overcame slower economic growth expectations and pushed bonds lower and interest rates higher by the end of trade.
The Dow, Nasdaq, and S&P rose on hopes for slow job growth that may influence the fed to cut interest rates.
Among the big names making news in the market Friday were Kerkorian and Chrysler, Mulally and Ford, Inverness Medical and Biosite, AT&T, Apollo, and Constellation Brands.
The Commentary:
“June Gold finished up 2 at 679.4, 1.6 off the high and 2.6 up from the low.
May Silver closed up 0.12 at 13.74. This was 0.14 up from the low and 0.03 off the high.
Gold prices traded firmer on Thursday supported by a stronger Euro currency and a bullish outlook from Gold Fields Mineral Service this week. Gold seems to be trading more like a commodity than a financial instrument as the fundamentals for the market remain strong. GFMS expect the annual average price for gold to hit a record due to a weaker Dollar outlook. The consulting firm also expects a drop in scrap gold supplies and only "subdued" Central Bank selling this year after a 51% drop in Central Bank gold sales last year while gold de-hedging should be another factor providing price support. A rising US inflation outlook is also providing bullish support to gold prices.
The silver market saw good technical action on Thursday as prices were able to push to new highs for the move despite being technically over bought. In fact, the market appears to be in a strong enough position to test the $14 level. Despite some mixed economic data recently, gains in the stock market and higher base metal prices seem to be providing support to the silver market. An unexpected rise in the Feb Chicago Fed Midwest Manufacturing Index also provided silver with some minor support.”- The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Open letter to Newmont: Why the silence about gold's enemies?
Lots of GATA's friends quoted in MarketWatch gold wrapup
The Statistics:
As of close of business: 4/04/2007
Gold Warehouse Stocks: | 7,102,832 | - 376,040 |
Silver Warehouse Stocks: | 126,435,325 | - 55,688 |
Global Gold ETF Holdings
[WGC Sponsored ETF’s]
| Product name | Total Tonnes | Total Ounces | Total Value |
New York Stock Exchange (NYSE) AND Singapore Exchange (SGX) | Streettracks Gold Shares | 488.40 | 15,702,425 | US$ 10,555m |
LSE (London Stock Exchange) AND Euronext Paris | Gold Bullion Securities | 88.84 | 2,856,252 | US$ 1,926m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 11.42 | 366,910 | US$ 248m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 11.35 | 364,805 | US$ 245m |
Note: Change in Total Tonnes from yesterday’s data: The NYSE added 3.24 tonnes.
COMEX Gold Trust (IAU)
Profile as of 4/4/2007 | |
Total Net Assets | $966,080,348 | Ounces of Gold
in Trust | 1,437,467.912 |
Shares Outstanding | 14,500,000 | Tonnes of Gold
in Trust | 44.71 |
Note: No change in Total Tonnes from yesterday’s data.
Silver Trust (SLV)
Profile as of 4/4/2007 | |
Total Net Assets | $1,773,929,405 | Ounces of Silver
in Trust | 131,897,824.200 |
Shares Outstanding | 13,250,000 | Tonnes of Silver
in Trust | 4,102.48 |
Note: Change in Total Tonnes from yesterday’s data: 1.69 tonnes were subtracted from the trust.
The Stocks:
Meridian Gold’s (MDG) first quarter highlights, U.S. Energy’s (USEG) Exploration, Development and Mine Operating Agreement, Fronteer’s (FRG) closed over-allotment option, U.S. Silver’s (USA.V) secured smelter contract, and Silvermex’s (SMR.V) closed financing were among the big stories in the gold and silver mining industry making headlines Friday.
WINNERS
1. Gold Reserve | GRZ +6.68% $7.06 |
2. International Royalty | ROY +3.92% $6.63 |
3. Exeter | XRA +3.09% $2.00 |
LOSERS
1. Entree Gold | EGI -3.09% $1.88 |
2. Orezone | OZN -2.49% $1.96 |
3. Hecla | HL 2.36% $9.12 |
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:
Dhanoa Announces Production Plans - More
- April 05, 2007 | Item | E-mail
Plexmar Resources Inc: Quarterly Financial Statements Correction - More
- April 05, 2007 | Item | E-mail
Stingray Resources Inc.: Press Release - More
- April 05, 2007 | Item | E-mail
Carmax Explorations Ltd. Announces a Non-Brokered Private Placement With the MineralFields Group - More
- April 05, 2007 | Item | E-mail
Geoinformatics Closes Second Tranche of Convertible Loan Facility - More
- April 05, 2007 | Item | E-mail
UrAsia Energy Shareholders Vote 99.89% in Favour of Acquisition by Uranium One - More
- April 05, 2007 | Item | E-mail
Gold Seeker Weekly Wrap-Up: Gold & Silver Gain Over 1% & 2% on the Week