-- Posted Wednesday, 9 May 2007 | Digg This Article
| Close | Gain/Loss |
Gold | $680.10 | -$4.90 |
Silver | $13.35 | -$0.09 |
XAU | 141.80 | +0.07% |
HUI | 342.21 | +0.24% |
GDM | 1104.73 | -0.27% |
JSE Gold | 2768.17 | +0.03% |
USD | 82.00 | +0.06 |
Euro | 135.31 | -0.11 |
Yen | 83.36 | +0.02 |
Oil | $61.55 | -$0.71 |
10-Year | 4.668% | +0.034 |
T-Bond | 111.34375 | -0.50 |
Dow | 13362.87 | +0.40% |
Nasdaq | 2576.34 | +0.18% |
S&P | 1512.58 | +0.32% |
The Metals:
Gold remained near unchanged in Asia and London before it fell in New York to as low as $675 by late morning and then rebounded into the close, but it still ended with a loss of 0.72%. Silver fell all the way to $13.15 before it also rebounded markedly, but it still ended with a loss of 0.67%.
Euro gold fell to about €502, platinum lost $8 to $1,336, palladium lost $5 to $367, and copper fell nearly 5 cents to about $3.68.
Gold and silver equities traded mixed throughout the day and ended near unchanged.
The Economy:
The fed kept interest rates unchanged at 5.25% as expected. Their statement noted that economic growth slowed and the adjustment in housing is ongoing, but that the economy is likely to expand at a moderate pace. They also noted core inflation is somewhat elevated and that the predominant concern is that inflation will fail to moderate.
Tomorrow at 8:30AM EST brings Export and Import Prices for April, Initial Jobless Claims for 5/05 expected at 315,000, and the Trade Balance for March expected at -$60.0 billion. At 2PM is the Treasury Budget for April expected at $143.0 billion.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil rose in early trade on news of more violence in Nigeria, but it then fell and ended over 1% lower after inventories came in higher than expected. Crude inventories built the most since January at 5.6 million barrels, gasoline inventories built for the first time in thirteen weeks at 400,000 barrels, and distillates built 1.7 million barrels.
The U.S. dollar index rose and treasuries fell following the fed’s statement that kept inflation as the predominant concern and made it less likely that the fed will cut interest rates anytime soon. The focus now shifts to tomorrow’s Bank of England (BoE) and European Central Bank (ECB) meetings that are expected to at least hint towards future interest rate hikes.
The Dow, Nasdaq, and S&P initially dropped dramatically following the fed’s statement that came in more hawkish thank some had hoped, but the indices soon returned to new highs on the session and ended with respectable gains on more merger and acquisition speculation as traders moved past the fed and returned to business as usual.
Among the big names making news in the market today were Toyota, Cisco, TXU, Dendreon, News corp., Toll Brothers, and DirecTV.
The Commentary:
“June Gold finished down 4.9 at 682.5, 4.5 off the high and 5 up from the low.
July Silver closed down 0.13 at 13.47. This was 0.18 up from the low and 0.08 off the high.
The trade Wednesday was mostly dominated by the anticipation of the Fed's interest rate decision. Traders initially took a cautious stance and kept a moderate selling pressure wave in place ahead of the Fed's statement. However, the actual statement had a small initial negative impact on the gold price, which could indicate that the market didn't get enough definitive news from the statement to alter its pre-existing bearish tilt toward the US economy. The US Dollar on the other hand stayed in a positive territory and seemed to gain some minor ground after the Fed statement, which would indicate that the dominating focus of the gold market remains on the currency market instead of on the outlook for the US economy and the direction of equity prices.
Apparently the Fed's decision and statement failed to alter the pre-existing bearish outlook in the silver market as the trade started out soft and added to the declines ahead of mid session. The market failed to show a definitive reaction to the Fed statement but it was clear that the stock market liked what the Fed had to say yet the silver market was unmoved. Perhaps a slight up tick in the Dollar, generally weak energy prices and a sharp slide in the copper market mired the silver market in bearish psychology and that lack of a definitive outcome from the Fed left the status quo in place.” - The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Ted Butler: A clear parallel
The Statistics:
As of close of business: 5/08/2007
Gold Warehouse Stocks: | 7,621,820 | -55,300 |
Silver Warehouse Stocks: | 132,312,707 | +594,915 |
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 | 485.78 | 15,618,263 | US$ 10,686m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 90.84 | 2,920,646 | US$ 1,986m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 11.69 | 375,570 | US$ 256m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 11.34 | 364,668 | US$ 249m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU)
Profile as of 5/8/2007 | |
Total Net Assets | $994,580,761 | Ounces of Gold
in Trust | 1,451,857.070 |
Shares Outstanding | 14,650,000 | Tonnes of Gold
in Trust | 45.16 |
Note: No change in Total Tonnes from yesterday’s data.
Silver Trust (SLV)
Profile as of 5/8/2007 | |
Total Net Assets | $1,830,678,252 | Ounces of Silver
in Trust | 135,821,754.600 |
Shares Outstanding | 13,650,000 | Tonnes of Silver
in Trust | 4,224.53 |
Note: No change in Total Tonnes from yesterday’s data.
The Stocks:
Minco Gold’s (MGH) listing on the Frankfurt Stock Exchange, International Royalty’s (ROY) acquired additional royalty interests, Golden Star’s (GSS) project development, Rubicon’s (RBY) drill results, Canyon’s (CAU) first quarter results, Ivanhoe’s (IVN) coal project approval, Agnico-Eagle’s (AEM) exploration activities, Orko Silver’s (OK.V) assay results, Silvermex’s (SMR.V) drill program, and Mines Management’s (MGN) exercised over-allotment option were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Minco Gold | MGH +4.71% $3.56 |
2. Anglo American | AAUK +4.16% $29.54 |
3. Almaden Minerals | AAU +2.86% $2.52 |
LOSERS
1. Kimber | KBX -4% $1.44 |
2. Nevsun | NSU -3.69% $2.09 |
3. Minefinders | MFN-3.61% $12.29 |
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:
Orko Silver Hits Major Intercept in Martha Vein at La Preciosa - "Of particular note is a new major width and high grade intercept of the Martha Vein in "Mina La Preciosa" sector and an increase in width in the Abundancia Vein in drill hole BP07-102. The Martha Vein yielded 13.79 metres true width grading 376.5 g/t Ag and 0.320 g/t Au for a silver-equivalent of 395.7 g/t, including 3.07 metres true width grading 1,374.0 g/t Ag and 0.605 g/t Au for a silver-equivalent of 1,410.3 g/t. This vein was not included in the previously released Inferred Resource Estimate (13 March 2007). Abundancia Vein in this hole yielded an impressive 26.80 metres true width grading 152.3 g/t Ag and 0.205 g/t Au for a silver-equivalent of 164.5 g/t." More
- May 09, 2007 | Item | E-mail
Strathmore Enters LOI for Joint Venture of Lake Athabasca North Shore Property - More
- May 09, 2007 | Item | E-mail
Shoreham Acquires Options for 100% Interest in Two Properties in the Red Lake District - More
- May 09, 2007 | Item | E-mail
Minco Gold Corporation Lists on Frankfurt Stock Exchange - "Minco Gold Corporation (the "Company" or "Minco Gold") (Toronto:MMM.TO - News)(AMEX:MGH - News)(Frankfurt:MI5.F - News)(WKN: A0MKB6) is pleased to announce that its common shares have now also been listed on the Frankfurt Stock Exchange under the ticker symbol MI5 and the German securities code (WKN) A0MKB6." More
- May 09, 2007 | Item | E-mail
International Royalty acquires additional Pascua gold royalty interests - "International Royalty Corporation (AMEX: ROY, TSX: IRC) (the "Company"or "IRC") reports that it has purchased additional interests in the Pascua gold royalty located in Chile for a price of US$15.36 million in cash. A single contingency payment totalling US$2.0 million is payable to the sellers if gold prices exceed US$600 per ounce for any six month period during the first 36 months after the mine is commissioned." More
- May 09, 2007 | Item | E-mail
Richview Re-Affirms Its Continuous Program Aiming to Reactivate the Thierry Mine - More
- May 09, 2007 | Item | E-mail
Gossan Announces Private Placement - More
- May 09, 2007 | Item | E-mail
Nass Valley Gateway Ltd. Enters Into An Option Agreement To Explore Copper-Silver Property In Historic Copper Camp - More
- May 09, 2007 | Item | E-mail
Oromin Appoints Advisor to the Board - More
- May 09, 2007 | Item | E-mail
Acero-Martin Announces Creation of Advisory Board - More
- May 09, 2007 | Item | E-mail
IAMGOLD First Quarter Results Release-May 15, 2007 - "IAMGOLD Corporation ("IAMGOLD" or "the Company")(Toronto:IMG.TO - News)(NYSE:IAG - News)(Boston:IAMGOLD - News) will release first quarter financial results before the market opens on Tuesday May 15, 2007." More
- May 09, 2007 | Item | E-mail
Northland Acquires New Iron-Copper Target in Sweden - More
- May 09, 2007 | Item | E-mail
Copper Fox Metals inc. Expands Schaft Creek Resource Estimate - More
- May 09, 2007 | Item | E-mail
Aurus Proceeds With Dividend - More
- May 09, 2007 | Item | E-mail
Gold Seeker Closing Report: Gold & Silver Cut Over Halve The Day’s Losses But Still End Noticeably Lower