-- Posted Friday, 11 May 2007 | Digg This Article
| Close | Gain/Loss | On Week |
Gold | $670.10 | +$5.10 | -2.45% |
Silver | $13.20 | +$0.19 | -1.64% |
XAU | 139.68 | +1.50% | -1.53% |
HUI | 337.84 | +1.75% | -2.33% |
GDM | 1085.90 | +1.17% | -2.01% |
JSE Gold | 2729.49 | -1.07% | -4.26% |
USD | 82.12 | -0.13 | +0.45% |
Euro | 135.27 | +0.45 | -0.51% |
Yen | 83.26 | -0.03 | +0.01% |
Oil | $62.37 | +$0.56 | +0.71% |
10-Year | 4.670% | +0.022 | +0.65% |
Bond | 111.3125 | -0.25 | -0.47% |
Dow | 13326.22 | +0.84% | +0.46% |
Nasdaq | 2562.22 | +1.12% | -0.39% |
S&P | 1505.85 | +0.96% | +0.02% |
The Metals:
CoT Reports: Gold | Silver
Gold rose a few dollars in Asia and remained near $668 in London before it furthered its gains in New York and ended about $2 off its high of the session with a gain of 0.77%. Silver briefly fell about 10 cents in Asia, but it then rebounded and traded on either side of unchanged in London and accomplished impressive gains in New York before it dipped slightly into the close and ended around 5 cents off its high with a gain of 1.46%.
Euro gold rose to about €496, platinum gained $18 to $1,338, palladium gained $4 to $364, and copper rose a couple of cents to about $3.63.
Gold and silver equities rose over 1% in morning trade and remained near their highs into the close.
The Economy:
Report | For | Reading | Expected | Previous |
Retail Sales | Apr | -0.2% | 0.4% | 1.0% |
Retail Sales ex-auto | Apr | 0.0% | 0.5% | 1.1% |
PPI | Apr | 0.7% | 0.6% | 1.0% |
Core PPI | Apr | 0.0% | 0.2% | 0.0% |
Business Inventories | Mar | -0.1% | 0.2% | 0.2% |
All of this week’s economic reports:
Next week’s economic highlights include CPI, the NY Empire State Index, and Net Foreign Purchase on Tuesday, Housing Starts, Building Permits, Industrial Production, and Capacity Utilization on Wednesday, Initial Jobless Claims and the Philadelphia Fed on Thursday, and Michigan Sentiment on Friday.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil ended nearly 1% higher on security concerns in Nigeria and an IEA prediction for supply shortages this summer.
The U.S. dollar index fell as Core PPI came in tamer than expected and economic growth data came in worse than expected.
Treasuries started higher on poor economic data, but they then fell back off as traders appeared to pull money out of bonds and put it back into stocks.
The Dow, Nasdaq, and S&P rose markedly on tame Core PPI despite higher than expected PPI and worse than expected Retail Sales and Business Inventories. The Dow rose for the 26th time in the last 31 sessions.
Among the big names making news in the market Friday were Alcatel-Lucent, Movie Gallery, U.S. Auto Parts, Amgen, Thomson, Murdoch and Dow Jones, and Chicago Merc and Board of Trade.
The Commentary:
“June Gold finished up 5.3 at 672.3, 1.8 off the high and 3.4 up from the low.
July Silver closed up 0.165 at 13.305. This was 0.165 up from the low and 0.085 off the high.
The gold market was somewhat higher ahead of the US numbers and then managed to extend the gains in the wake of numbers that could have fostered slowing concerns. However, with the equity market showing strength, the deflationary psychology from the numbers was countervailed and some minor weakness in the Dollar seemed to prompt some technical short covering in gold. In the end, a good volume rally would seem to countervail a good portion of the patently bearish setup that seemed to control the gold market earlier in the week. Some traders suggested that the gold market might have been lifted by news of a planned terrorist attack in Germany, but recently the gold market hasn't been in a flight to quality posture. It is also possible that renewed strength in a host of physical commodity markets on Friday provided the gold market with some spillover support.
While the Press is touting short covering as the primary force behind the rally on Friday, it was clear that a wide cross section of physical commodity markets were moving higher and with the stock market also recovering, it is possible that the silver market did attract some fresh bargain hunting buying interest. The bear camp in silver could suggest that the rally Friday was indeed short covering, as the US economic reports depicted slower activity and dampened inflation and those could both be considered bearish to silver prices.”- The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Blanchard research note: Spain is latest to try to clobber gold
Foreign bondholders seen undeterred by weak dollar
China will diversify mainly with new dollars, not old ones
CMRE audience wonders why gold falls hard on bad news for dollar
The Statistics:
As of close of business: 5/10/2007
Gold Warehouse Stocks: | 7,621,820 | - |
Silver Warehouse Stocks: | 131,520,272 | - 388,487 |
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 | 480.23 | 15,440,018 | US$ 10,398m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 90.84 | 2,920,582 | US$ 1,959m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 11.77 | 377,962 | US$ 254m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 11.34 | 364,660 | US$ 245m |
Note: Change in Total Tonnes from yesterday’s data: The NYSE/SGX subtracted 5.55 tonnes.
COMEX Gold Trust (IAU)
Profile as of 5/10/2007 | |
Total Net Assets | $965,521,897 | 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 5/10/2007 | |
Total Net Assets | $1,804,822,019 | 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:
Metallica’s (MRB) first quarter results, Aurizon’s (AZK) drill results, Barrick’s (ABX) project approval, Richmont’s (RIC) signed letter of intent, Goldcorp’s (GG) earnings, Gammon Lake’s (GRS) first quarter results, Excellon’s (EXN.V) management structure changes, and Revett’s (RVM.TO) operating and financial results were among the big stories in the gold and silver mining industry making headlines Friday.
Gold Seeker Weekly Wrap-Up: Gold & Silver Fall Roughly 2% This Week