-- Posted Tuesday, 22 May 2007 | Digg This Article
| Close | Gain/Loss |
Gold | $658.80 | -$3.80 |
Silver | $12.89 | -$0.14 |
XAU | 135.76 | -1.88% |
HUI | 324.85 | -1.79% |
GDM | 1055.12 | -1.65% |
JSE Gold | 2758.91 | +0.33% |
USD | 82.41 | +0.06 |
Euro | 134.54 | -0.11 |
Yen | 82.27 | -0.06 |
Oil | $64.97 | -$1.30 |
10-Year | 4.831% | +0.043 |
T-Bond | 109.59375 | -0.50 |
Dow | 13539.95 | -0.02% |
Nasdaq | 2588.02 | +0.36% |
S&P | 1524.12 | -0.06% |
The Metals:
Gold rose a couple of dollars by late trade in Asia and early trade in London before it fell back off for the rest of trade in London and New York and ended just 10 cents off its low with a loss of 0.57%. Silver rose near $13.10 by early trade on London, but it also fell off for the rest of trade and ended just one cent off its low with a loss of 1.07%.
Euro gold fell back under €490, platinum lost $25 to $1,292, palladium lost $4 to $370, and copper dropped over 16 cents to about $3.35.
Gold and silver equities opened briefly higher before they steadily sold off for most of the rest of trade and ended with over 1.5% losses.
The Economy:
There were no major economic reports today, but some inflationary talk from the fed’s Lacker and Moskow did push interest rates a tad higher ahead of economic reports on Thursday and Friday.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil and gasoline fell roughly 2% ahead of tomorrow’s expected inventory builds as NOAA forecasted a below average hurricane season.
The U.S. dollar index found small gains and treasuries fell as inflationary comments pushed the yield on the 10-year to a new 4 month high.
The Dow, Nasdaq, and S&P rose in afternoon trade as oil fell and merger and acquisition rumors continued to drive the major indices higher, but the Dow and S&P then fell back off in the last hour of trade and ended with small losses.
Among the big names making news in the market today were MGM, Anheuser-Busch, American Eagle, CompUSA, BJ’s Wholesale, United Natural, Fremont, Staples, and Medtronic and Abbott.
The Commentary:
“June Gold finished down 3.9 at 659.9, 5.1 off the high and 0.1 up from the low.
July Silver closed down 0.14 at 12.99. This was 0.01 up from the low and 0.16 off the high.
The early pattern of gold holding up better than the rest of the precious metals markets mostly held into the close, but the market did see a fresh wave of selling just after mid day. Surprisingly the gold market wasn't supported by more evidence of slumping gold production nor was the gold market supported by suggestions from a major gold mining executive that gold prices had entered a "new regime" pricing zone. With oil prices down sharply and a number of physical commodity markets down sharply during the session and the scheduled US numbers failing to give off the impression of a growing robust US economy its not surprising that some additional bulls decided to throw in the towel on Tuesday. However, the market wasn't presented with a patently bearish economic track on Tuesday as the US Treasury Secretary Paulson suggested that the US economy was beyond the worst of the US housing slump. In the end, even a minor upside tilt in the US Dollar seemed to leave the bear camp in gold with an edge.
The silver market diverged with the gold market and it would also seem like the European silver action held together better than the US silver trade. In short, the silver market was apparently hit with a fresh bearish tilt after the European silver fixed higher. With the copper market ending up roughly 10 cents lower and the platinum market seeing a massive $31 an ounce slide, it was clear that closely related metals markets were also under pressure. In fact, with gold somewhat sidestepping the selling see in other markets, it would seem like something other than the Dollar or the lack of investment interest was driving the metals markets down.” - The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Ted Butler: The raptors turn on the biggest shorts in silver
Blanchard note: Record central bank gold sales offset miners' dehedging
Derivatives grow explosively, BIS reports
Kuwait unhooks dinar from dollar, signaling possible trend
Trickle of Chinese money could become investment flood
MineWeb: Much dehedging in 1st Q, a lot more to come
John Dizard: Gold tells a sad story of future asset deflation
The Statistics:
As of close of business: 5/21/2007
Gold Warehouse Stocks: | 7,718,746 | -101 |
Silver Warehouse Stocks: | 132,013,261 | +2,078 |
Global Gold ETF Holdings
[WGC Sponsored ETF’s]
| Product name | Total Tonnes | Total Ounces | Total Value |
New York Stock Exchange (NYSE) AND Singapore Exchange (SGX) | Streettracks Gold Shares | 469.15 | 15,083,560 | US$ 9,922m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 90.83 | 2,920,225 | US$ 1,925m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 11.84 | 380,416 | US$ 251m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 11.34 | 364,616 | US$ 239m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU)
Profile as of 5/18/2007 | |
Total Net Assets | $978,631,557 | Ounces of Gold
in Trust | 1,476,628.340 |
Shares Outstanding | 14,900,000 | Tonnes of Gold
in Trust | 45.93 |
Note: No change in Total Tonnes from yesterday’s data.
Silver Trust (SLV)
Profile as of 5/18/2007 | |
Total Net Assets | $1,755,659,640 | 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:
Coeur d'Alene’s (CDE) revoked permit in Alaska, Seabridge’s (SA) drilling, Fronteer’s (FRG) drilling, Rubicon’s (RBY) closed transaction with investor Rob McEwen, Newmont’s (NEM) appealed ruling in Indonesia, Minco Gold’s (MGH) assay results, YGC’s (YGC.TO) merger approval with Queenstake (QEE), and Silver Dragon’s (SDRG.OB) drill results were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Great Basin | GBN +4.96% $2.54 |
2. Solitario | XPL +4.74% $4.64 |
3. New Gold | NGD+3.23% $7.34 |
LOSERS
1. Allied Nevada | ANV -10.53% $4.25 |
2. Northern Dynasty | NAK -5.04% $11.68 |
3. Endeavour | EXK -5.03% $5.10 |
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:
Metco Acquires 50% of the B6-20 McIvor Property: Matagami Mining Camp - More
- May 22, 2007 | Item | E-mail
U.S. court blocks Alaska mine waste from lake - "In a victory for environmentalists, a U.S. appeals court ruled on Tuesday that a disputed permit allowing an Alaska gold mine to deposit rock waste into a natural alpine lake was illegal and would be revoked.
Coeur d'Alene Mines Corp.'s (CDE.N: Quote, Profile , Research) Coeur Alaska unit had hoped the Kensington mine north of Juneau -- a site mined from 1897 to 1928 -- would produce 100,000 ounces of gold annually with operations starting later this year." More
- May 22, 2007 | Item | E-mail
Drilling underway at the C de Baca Uranium Property, New Mexico - More
- May 22, 2007 | Item | E-mail
400 Metre Estimated Strike Length to Golden Chalice's New Nickel Discovery - More
- May 22, 2007 | Item | E-mail
Rio's Uranium Prospects Look Rich - More
Golden Arch Resources releases NI 43-101 Report: Wakefield Lakes Zinc Property - More
- May 22, 2007 | Item | E-mail
Vena Resources Reports Positive Metallurgical Tests on Pucara Project - More
- May 22, 2007 | Item | E-mail
Benton Resources Corp. (BTC-V) Starts Drilling on Flying Loon Gold Zone - More
- May 22, 2007 | Item | E-mail
Amerigo Comments on Market Volatility - More
- May 22, 2007 | Item | E-mail
Drilling Underway at Seabridge Gold's Noche Buena Project - "Seabridge Gold (CDNX:SEA.V - News)(AMEX:SA - News) announced today that drilling has commenced at its 100% owned Noche Buena Project in Sonora Mexico. Layne de Mexico, a Layne Christensen Company, has begun work on a 10,000 meter reverse circulation designed to expand the known resorce by testing three targets within and adjacent to the existing deposit." More
- May 22, 2007 | Item | E-mail
Pediment Exploration Ltd.: Drill Results Confirm and Extend Las Colinas Gold Mineralization - More
- May 22, 2007 | Item | E-mail
San Gold Develops New High Grade Vein at Rice Lake - More
- May 22, 2007 | Item | E-mail
Eloro Acquires McArthur Lake Nickel Property Near the Texmont Nickel Deposit, Timmins, Ontario; Updates James Bay Exploration - More
- May 22, 2007 | Item | E-mail
Mirasol Closes $2 Million Non-Brokered Private Placement - More
- May 22, 2007 | Item | E-mail
Ur-Energy Announces New Chief Financial Officer, General Counsel and Corporate Secretary - More
Gold Seeker Closing Report: Gold & Silver Erase Yesterday’s Gains