-- Posted Tuesday, 10 April 2007 | Digg This Article
| Close | Gain/Loss |
Gold | $675.70 | +$4.60 |
Silver | $13.83 | +$0.08 |
XAU | 144.20 | +1.05% |
HUI | 358.11 | +1.16% |
GDM | 1126.39 | +0.87% |
JSE Gold | 3003.45 | +0.70% |
USD | 82.67 | -0.41 |
Euro | 134.27 | +0.70 |
Yen | 83.93 | +0.10 |
Oil | $61.89 | +$0.38 |
10-Year | 4.724% | -0.021 |
T-Bond | 110.5625 | +0.1875 |
Dow | 12573.85 | +0.04% |
Nasdaq | 2477.61 | +0.34% |
S&P | 1448.39 | +0.26% |
The Metals:
Gold rose a few dollars in Asia, traded about $5 higher in London, and extended its gains in early New York trade to climb above $680 with about $10 gains before it fell back off a bit, but it still traded about 1% higher for most of the rest of the session ahead of a dip in the last half hour of trade that left it with a gain of 0.69%. Silver rose near $14.00 in early New York trade before it also fell off into the close in choppy trade, but it still ended with a gain of 0.58%.
Euro gold rose to about €504, platinum gained $13 to $1,274, palladium gained $5 to $360, and copper rose roughly 7 cents to about $3.40.
Gold and silver equities rose about 1.5% at the open before they sold off slightly as the day wore on, but they still ended with roughly 1% gains.
The Economy:
There were no major economic reports today, but some comments from fed governor Mishkin about fighting inflation did have some talking.
Tomorrow at 2PM EST brings FOMC minutes from their March 21st meeting and the Treasury Budget for March expected at -$90.0 billion.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil rebounded from yesterday’s notable losses as colder than normal weather continues to impact most of the U.S. and traders prepared for tomorrow’s inventory report amid more refinery problems.
The U.S. dollar index fell markedly to a 4 and ½ month low and just off a 2 year low on trade worries as the U.S. “accused China at the World Trade Organization of piracy and blocking access to U.S. films, books and software.”
Treasuries continued to rebound from Friday’s losses with little new economic data to act on.
The Dow, Nasdaq, and S&P remained near unchanged and ended slightly higher in light volume as traders awaited earnings reports and economic data.
Among the big names making news in the market today were Alcoa, Viacom and Yahoo, D.R Horton, PPR and Puma, Cemex and Rinker, Citigroup, KKR and Coles, and Mylan Laboratories.
The Commentary:
“The gold market is being driven by investment demand [as you can see on the site of the gold Exchange Traded Funds [www.exchangetradedgold.com ] which saw another 6.15 tonnes of gold bought in the last two days. Add to this the start up of more Indian gold E.T.F.’ and now an announcement of one to come in Japan. All these represent long-term buyers of gold, but they have set a pattern of being particularly vigorous buyers when the gold price rises. Their demand tends to add to other demand to overwhelm supply.
We suspect and are waiting for the numbers from the European Central Bank on their sales of last week that they have gone back to the pattern of selling around 2.5 tonnes a week, from higher double figure levels. This means that additional sales that come from the Central Banks are dropping.
The $ is now weakening again [but we don’t accept that it is going to track the currency’s movement because gold went up as the $ did too].
The oil price should begin to rise as the oil price bounces off the low $60 levels.
Global uncertainty as represented by the $, oil, China, political pressures et al, act as a tide encouraging investment into gold as an underlying driving force.” - Julian D.W. Phillips, www.goldforecaster.com
“June Gold finished up 4.6 at 681.5, 5.3 off the high and 0.5 up from the low.
May Silver closed up 0.12 at 13.93. This was 0.05 up from the low and 0.12 off the high.
The gold market showed some impressive action on Tuesday morning by rising to another new high for the move and also managing to reach the highest level since February 27th. In the end, the gold market was getting support from a number of unrelated issues, the most significant of which might be the sharp slide in the Dollar. In fact, with the US Dollar actually managing to reach the lowest level since December 8th it is clear that the Dollar move was a significant development. While oil prices were also firm during the session, oil prices were still below the recent highs and with the market also seeing less overall inflation concerns, it is likely that the currency action was indeed the primary theme being employed by the bull camp.
As suggested in the pre-opening and mid day coverage, the silver market seemed to be getting a large measure of spillover support from other metals markets. In fact, the zinc market made a new all time high, while the rest of the metals, gold, platinum, copper, nickel and aluminum prices were also strong and that seemed to point to improving physical demand expectations throughout the complex. Certainly the funds were also responsible for part of the gains in silver, but that impact has been fairly constant over the last several sessions.” - The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
James Turk: Can we trust the silver ETF?
The Statistics:
As of close of business: 4/09/2007
Gold Warehouse Stocks: | 7,302,511 | - |
Silver Warehouse Stocks: | 126,433,338 | -604,947 |
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 | 494.56 | 15,900,551 | US$ 10,708m |
LSE (London Stock Exchange) AND Euronext Paris | Gold Bullion Securities | 88.83 | 2,856,094 | US$ 1,933m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 11.42 | 366,889 | US$ 249m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 11.35 | 364,785 | US$ 245m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU)
Profile as of 4/9/2007 | |
Total Net Assets | $965,739,787 | 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 4/9/2007 | |
Total Net Assets | $1,817,987,864 | Ounces of Silver
in Trust | 133,888,613.800 |
Shares Outstanding | 13,450,000 | Tonnes of Silver
in Trust | 4,164.40 |
Note: Change in Total Tonnes from yesterday’s data: 30.96 tonnes were added to the trust.
The Stocks:
Eldorado Gold’s (EGO) operational update, Glencairn’s (GLE) presentation at the American Stock Exchange Fourth Annual Precious and Base Metals Conference, Royal Gold’s (RGLD) ore reserves and additional mineralization estimates, Ivanhoe’s (IVN) agreement with the Mongolian Government, Pacific Rim’s (PMU) drill results, U.S. Gold’s (UXG) drill results, Entree’s (EGI) exploration programs, Great Basin’s (GBN) filed $45 million stock shelf, Orezone’s (OZN) increased resource estimate, Gold Fields’ (GFI) gold output and completed acquisition of Western Areas, Great Panther’s (GPR.TO) first quarter output, Aquiline’s (AQI.TO) drill results, Silver Dragon’s (SDRG.OB) Asset Purchase Agreement with Sanhe Sino-Top Resources and Technologies, Coeur’s (CDE) San Bartolome project update, Silver Standard’s (SSRI) resource increase, and MAG Silver’s (MAG.V) drill results were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. U.S. Gold | UXG+27.04% $5.45 |
2. Entree Gold | EGI +9.78% $2.02 |
3. New Gold | NGD +5.99% $7.43 |
LOSERS
1. Exeter | XRA -3.94% $1.95 |
2. Fronteer | FRG -3.24% $14.02 |
3. U.S. Energy | USEG-2.83% $5.84 |
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:
Royal Gold Announces the Closing of Its Public Offering of Common Stock - "ROYAL GOLD, INC. (Nasdaq: RGLD - News; Toronto: RGL - News) announced today the closing of the underwritten public offering of 4,000,000 shares of its common stock. The offering was conducted pursuant to the Company's existing effective shelf registration filed on Form S-3 with the U.S. Securities and Exchange Commission. The offering was priced at $29.25 per share, and proceeds to the Company from the offering, net of commission and expenses, are expected to be approximately $110.9 million." More
- April 10, 2007 | Item | E-mail
Eldorado Gold Corporation: Operational Update - "With in excess of 88,000 ounces of gold produced in the quarter and cash costs of $220/oz the Company's mines are producing to plan, clearly establishing Eldorado as a low cost producer. This strong performance in the first quarter is supportive of our previously stated guidance for 2007 of production of 310,000 to 330,000 ounces at cash costs of $220 to $230 per ounce." More
- April 10, 2007 | Item | E-mail
Dhanoa Minerals Announces Installation of Cameras - More
- April 10, 2007 | Item | E-mail
Goldrea Resources Corp.: Information to be Available Through S&P Market Access Program - More
- April 10, 2007 | Item | E-mail
Great Panther Doubles Production at Guanajuato in First Quarter; Increases Output From Two Mines by 38% - "GREAT PANTHER RESOURCES LIMITED (Toronto:GPR.TO - News) is pleased to announce that first quarter 2007 output at its two 100%-owned mines in Mexico increased by 38% over Q4 2006 to 303,280 silver equivalent ounces (Ag Eq Oz). The increase was mainly due to significant improvements in the head grades at the Guanajuato Silver-Gold Mine where output doubled over the same period. Guanajuato yielded 146,555 Ag Eq Oz in Q1 2007, almost as much as in the entire 6 months from startup to the end of 2006." More
- April 10, 2007 | Item | E-mail
CLARIFICATION UPDATE: Global Uranium Corp. Financing Oversubscribed - More
- April 10, 2007 | Item | E-mail
Uranium price spike boosts smaller Canadian miners - More
- April 10, 2007 | Item | E-mail
Pershimco Confirms its Geological Model; New Interval of 1.09 g/t Gold Over 55.8 Meters - More
- April 10, 2007 | Item | E-mail
Kodiak Appoints Vice-President, Exploration - More
- April 10, 2007 | Item | E-mail
Aquiline Releases New Navidad Results Including High-Grade Intervals at Barite Hill; Appeal Gets Underway in Vancouver - "Aquiline Resources Inc. ("Aquiline" or the "Company") (Toronto:AQI.TO - News) is pleased to report on the results of 39 new diamond drill holes at the Navidad Project in Chubut Province, Argentina. These include the first holes drilled by the Company at Barite Hill and of particular note are results for holes NV07-396/397 and NV07-403 drilled on section 52.400E. Results include an intersection of 30.8 metres grading 547 g/t Ag and 0.77% Cu in hole NV07-403 that was drilled at the south end of a reconnaissance drill fence to test the often-mineralized mudstone sequence." More
- April 10, 2007 | Item | E-mail
North Atlantic Acquires Two More Uranium Permits in Niger - More
- April 10, 2007 | Item | E-mail
Richmond Minerals Inc. Exploration Update (TSXV-RMD) - More
- April 10, 2007
Gold Seeker Closing Report: Gold & Silver Cut Early Gains, But Still End Nicely Higher