-- Posted Tuesday, 15 May 2007 | Digg This Article
| Close | Gain/Loss |
Gold | $672.70 | +$4.20 |
Silver | $13.19 | +$0.06 |
XAU | 137.51 | +0.11% |
HUI | 330.32 | -0.21% |
GDM | 1063.97 | +0.06% |
JSE Gold | 2716.36 | +1.71% |
USD | 82.77 | -0.28 |
Euro | 135.94 | +0.48 |
Yen | 83.13 | +0.03 |
Oil | $63.17 | +$0.71 |
10-Year | 4.712% | +0.022 |
T-Bond | 110.875 | -0.25 |
Dow | 13383.84 | +0.28% |
Nasdaq | 2525.29 | -0.83% |
S&P | 1501.19 | -0.13% |
The Metals:
Gold remained near unchanged on either side of $669 in Asia before it fell in London and dropped to $664.40 by the open in New York, but it then jumped above $670 after the CPI released was released, checked its gains a bit from 9-10AM EST, rallied to new highs near $672 in late morning trade, and closed with a gain of 0.63%. Silver dropped to about $12.95 in late London trade before it also rallied higher throughout much of trade in New York and ended near its high of the session with a gain of 0.46%.
Euro gold rose to about €495, platinum gained $8 to $1,335, palladium lost $3 to $356, and copper rose a couple of cents to about $3.55.
Gold and silver equities saw over 1% gains by early afternoon, but they then fell off in the last two and a half hours of trade and ended mixed and near unchanged.
The Economy:
Report | For | Reading | Expected | Previous |
CPI | Apr | 0.4% | 0.5% | 0.6% |
Core CPI | Apr | 0.2% | 0.2% | 0.1% |
NY Empire State Index | Mar | 8.0 | 9.0 | 3.8 |
Net Foreign Purchases | Mar | $67.6B | $75.0B | $58.1B |
Core PCE fell to 2.3% to further ease inflation worries, but the reading is still above the fed’s comfort level of 2%. Also making economic news today was homebuilder confidence: “The NAHB/Wells Fargo Housing Market index dropped three points to 30 in May, matching the 15-year low set in September 2006, the group said.”
Tomorrow at 8:30AM EST brings Housing Starts for April expected at 1,480,000 and Building Permits expected at 1,520,000. At 9:15AM are Capacity Utilization for April expected at 81.5% and Industrial Production expected at 0.3%.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil rose on more violence in Nigeria causing supply disruptions as the retail price of gasoline in the U.S. hit a new record of $3.087 ahead of the summer driving season.
The U.S. dollar index fell as CPI came in less than expected and increased the chances the fed may cut interest rates.
Treasuries opened higher as CPI came in tamer than expected, but gains turned to losses as traders pulled money out of bonds and put it into stocks.
The Dow, Nasdaq, and S&P rose in early trade on optimism over perceived tame inflation, but they then fell off on housing worries and only the Dow was able to end with gains.
Among the big names making news in the market today were Ingersoll-Rand, Reuters and Thomson, DaimlerChrysler, Home Depot, Wal-Mart, and Tyco.
The Commentary:
“June Gold finished up 4.4 at 674.5, 0.5 off the high and 8.5 up from the low.
July Silver closed up 0.08 at 13.315. This was 0.215 up from the low and 0.025 off the high.
The gold market seemed to gather some support in the wake of the US CPI readings. Perhaps the gold market also gathered support from strengthening equity prices, a firm Empire State manufacturing report and perhaps from firming grain prices. However, with the Dollar finishing sharply lower and with a big range down move, we suspect that many players were simply prompted to bargain hunt in gold. As mentioned in the early coverage today it is also possible that new UN revelations regarding Iranian nuclear activities added some additional flight to quality buying. In the end, a lower Dollar and signs of growth in the economy simply overcame the potentially disappointing US CPI report. One could also suggest that firming oil prices on Tuesday even contributed to the supportive environment in the gold market.
Silver underperformed the gold market in the morning action and didn't seem to want to pick up any ground in the afternoon action. In fact, with gold, platinum, copper, equities and energy prices all higher on the day the 5 to 8 cents gained in the silver market seems to suggest that silver is lagging on the upside. With copper higher and the US manufacturing data release during the session coming in strong, the market wasn't lacking physical demand hopes and therefore it would seem like the investment interest in silver is somewhat thin.” - The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Leave hedge funds alone, Fed chairman says
Central bankers fear the monsters they created -- hedge funds
Visiting London, IMF director threatens gold market again
James Turk: The battle for $700
The Statistics:
As of close of business: 5/14/2007
Gold Warehouse Stocks: | 7,718,842 | - 5,134 |
Silver Warehouse Stocks: | 132,655,353 | + 1,193,169 |
Global Gold ETF Holdings
[WGC Sponsored ETF’s]
| Product name | Total Tonnes | Total Ounces | Total Value |
New York Stock Exchange (NYSE) AND Singapore Exchange (SGX) | Streettracks Gold Shares | 483.01 | 15,529,140 | US$ 10,406m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 90.84 | 2,920,452 | US$ 1,962m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 11.77 | 377,945 | US$ 254m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 11.34 | 364,644 | US$ 244m |
Note: Change in Total Tonnes from yesterday’s data: The NYSE/SGX added 2.78 tonnes.
COMEX Gold Trust (IAU)
Profile as of 5/14/2007 | |
Total Net Assets | $970,415,625 | 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 5/14/2007 | |
Total Net Assets | $1,791,142,345 | 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:
Newmont’s (NEM) lawsuit with the New York Times, Ivanhoe’s (IVN) first quarter results, Canyon’s (CAU) new vice president of exploration, International Royalty’s (ROY) first quarter results and acquired royalties, Gold Reserve’s (GRZ) priced offerings, Great Basin’s (GBN) fourth quarter results, IAMGOLD’s (IAG) first quarter results, Minco Gold’s (MGH) drilling, Apollo Gold’s (AGT) first quarter results, Queenstake’s (QEE) first quarter results, and Endeavour’s (EXK) first quarter results were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Gammon Lake | GRS +7.28% $14.30 |
2. Vista Gold | VGZ +5.83% $6.90 |
3. Aurizon Mines | AZK +4.78% $3.29 |
LOSERS
1. Metalline | MMG -5.30% $3.75 |
2. Claude Resources | CGR -4.95% $1.4448 |
3. Cardero | CDY -4.31% $2.22 |
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:
Tagish receives Permits for the New Adit at the 1100m Elevation - More
- May 15, 2007 | Item | E-mail
Asia Now Grants Options to CFO - More
- May 15, 2007 | Item | E-mail
Timberline Reports $3.83-Million in Quarterly Revenue - More
- May 15, 2007 | Item | E-mail
Golden Goliath options Corona and Chamizal - More
- May 15, 2007 | Item | E-mail
Wildcat Exploration Ltd. - More
- May 15, 2007 | Item | E-mail
Klondike Star to Explore for Egyptian Gold - More
- May 15, 2007 | Item | E-mail
Drilling operations on Normétal Property resumed - More
- May 15, 2007 | Item | E-mail
Gold Seeker Closing Report: Gold & Silver Gain About 0.5%