-- Posted Tuesday, 17 April 2007 | Digg This Article
| Close | Gain/Loss |
Gold | $688.00 | -$1.80 |
Silver | $13.95 | -$0.09 |
XAU | 146.97 | -0.77% |
HUI | 365.09 | -0.87% |
GDM | 1151.97 | -0.92% |
JSE Gold | 3074.27 | -1.36% |
USD | 81.80 | -0.28 |
Euro | 135.65 | +0.16 |
Yen | 84.05 | +0.56 |
Oil | $63.10 | -$0.51 |
10-Year | 4.688% | -0.047 |
T-Bond | 111.125 | +0.5625 |
Dow | 12773.04 | +0.41% |
Nasdaq | 2516.95 | -0.05% |
S&P | 1471.48 | +0.20% |
The Metals:
Gold fell a couple of dollars in Asia and London before it rebounded back near unchanged in early New York trade, but it then fell back off a bit into the close and ended slightly lower. Silver followed a similar pattern and ended with a loss of 0.64%.
Euro gold fell to about €506, platinum lost $22 to $1,264, palladium lost $4 to $374, and copper rose over 15 cents to about $3.67.
Gold and silver equities fell roughly 1% at the open before they rebounded back to about unchanged by early afternoon, but they then fell back off into the close and with near 1% losses.
The Economy:
Report | For | Reading | Expected | Previous |
CPI | Mar | 0.6% | 0.6% | 0.4% |
Core CPI | Mar | 0.1% | 0.2% | 0.2% |
Housing Starts | Mar | 1518K | 1500K | 1506K |
Building Permits | Mar | 1544K | 1515K | 1532K |
Industrial Production | Mar | -0.2% | 0.0% | 0.8% |
Capacity Utilization | Mar | 81.4% | 81.9% | 81.6% |
There are no major economic reports due out tomorrow.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil rose in early trade after a Canadian pipeline was shut down due to a leak, but it then fell back off in late trade and ended moderately lower as worries over Nigeria eased and a refinery was reported to resume production soon.
The U.S. dollar index fell to another new two year low and treasuries rose as CPI came in as expected and Core CPI came in below expectations and pushed interest rates lower on the view that the fed might lower the fed funds rate due to slowing economic growth in an environment of reported tame inflation.
Also of note in the currency market was the British pound rising over $2 for the first time in nearly 15 years. Gains were driven by higher than expected inflation data in England that made it likely the Bank of England will hike interest rates a their upcoming meetings.
The Dow and S&P rose on decent housing data and indications of tame inflation while the Nasdaq fell on worries over earnings reports.
Among the big names making news in the market today were Johnson & Johnson, Dow Jones, Coca-Cola, EMC, TD Ameritrade, and Wells Fargo.
The Commentary:
“June Gold finished down 2 at 692.5, 3 off the high and 0.7 up from the low.
May Silver closed down 0.06 at 14.02. This was 0.055 up from the low and 0.07 off the high.
All in all the gold bulls might have been a little disappointed in several fundamental developments from the action Tuesday. In addition to the somewhat muted CPI readings, the trade was also presented with a slightly softer than expected US Industrial Production and Capacity Utilization reading. However, the Housing starts figures were slightly better than expected and the US stock market soared to another round of significant new highs and that should have offset the negative macro economic spin from the US data. On the other hand, significant gains in the equity market can mean higher physical and investment demand in gold but it can also prompt shorter term flight to quality type liquidation interest. With the oil and grain markets also under significant selling pressure, it is possible that the selling in gold was also fund or technically related selling.
A pattern of higher lower remained in place in silver despite outside market pressure in a number of markets. However, the silver market certainly did not get outside selling pressure from the copper market which was up a massive 13 cents on the day and that had to disappoint some silver bulls. As suggested in the gold market, the silver bulls also had to be disappointed in the flow of US data but we would have expected the stellar US equity market and the sharp copper rally to have made up for the potential weakness in the economy.” - The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Ted Butler: The day of reckoning
Fears grow that Britain has lost control of its remaining gold
Most Americans now feed at the government trough, study concludes
Lihir to dilute by US$535 million to close gold hedges
China likely to try to keep its copper production home
Greg Peel: Of the IMF, the Bank of England, Currencies, and Gold
China moves to explain $136 billion FX surge
James Turk: A week of significant breakouts
The Statistics:
As of close of business: 4/16/2007
Gold Warehouse Stocks: | 7,612,970 | - |
Silver Warehouse Stocks: | 127,568,934 | + 1,184,284 |
Global Gold ETF Holdings
[WGC Sponsored ETF’s]
| Product name | Total Tonnes | Total Ounces | Total Value |
New York Stock Exchange (NYSE) AND Singapore Exchange (SGX) | Streettracks Gold Shares | 494.56 | 15,900,551 | US$ 10,914m |
LSE (London Stock Exchange) AND Euronext Paris | Gold Bullion Securities | 88.83 | 2,855,872 | US$ 1,962m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 11.42 | 366,861 | US$ 252m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 11.35 | 364,756 | US$ 248m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU)
Profile as of 4/16/2007 | |
Total Net Assets | $991,826,783 | 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 4/16/2007 | |
Total Net Assets | $1,886,093,508 | Ounces of Silver
in Trust | 133,888,613.800 |
Shares Outstanding | 13,450,000 | Tonnes of Silver
in Trust | 4,164.40 |
Note: No change in Total Tonnes from yesterday’s data.
The Stocks:
Freeport’s (FCX) worker protest rally at the Grasberg mine, Almaden’s (AAU) optioned project, Glencairn’s (GLE) royalty sale, Agnico-Eagle’s (AEM) acquired stake in Cumberland, South American Silver’s (SAC.TO) completed property purchase, Minco’s (MSV.TO) increase in resources, Hecla’s (HL) presentation at the European Gold Forum, and Mines Management’s (MGN) priced public offering were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Taseko | TGB +8.36% $3.24 |
2. Buenaventura | BVN+4.96% $34.48 |
3. Entree | EGI +3.91% $2.39 |
LOSERS
1. Rubicon | RBY-9.16% $2.28 |
2. U.S. Gold | UXG-8.91% $6.24 |
3. Crystallex | KRY -8.63% $3.81 |
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:
Date Set for Uranerz Energy's Annual General Meeting - More
- April 17, 2007 | Item | E-mail
Consolidated Spire Ventures Closes Final Tranche of Private Placement Totaling $760,000.00 - More
- April 17, 2007 | Item | E-mail
Lincoln Gold Corp.: JDS Gold Property Drilling Back on Schedule - More
- April 17, 2007 | Item | E-mail
Petaquilla Minerals Ltd. to Present at the European Gold Forum - More
- April 17, 2007 | Item | E-mail
KGC mobilizes to drill East Kalimantan gold prospect - More
- April 17, 2007 | Item |
Gold Seeker Closing Report: Gold & Silver Fall Slightly