-- Posted Friday, 1 June 2007 | Digg This Article
| Close | Gain/Loss | On Week |
Gold | $670.60 | +$10.00 | +2.40% |
Silver | $13.69 | +$0.32 | +6.12% |
XAU | 142.31 | +1.82% | +4.82% |
HUI | 342.84 | +2.59% | +6.39% |
GDM | 1089.81 | +2.42% | +4.83% |
JSE Gold | 2729.90 | +2.10% | -0.26% |
USD | 82.32 | +0.03 | -0.05% |
Euro | 134.38 | -0.14 | -0.10% |
Yen | 81.92 | -0.19 | -0.29% |
Oil | $65.08 | +$1.07 | -0.18% |
10-Year | 4.956% | +0.066 | +1.95% |
Bond | 108.53125 | -0.625 | -0.66% |
Dow | 13668.11 | +0.30% | +1.19% |
Nasdaq | 2613.92 | +0.36% | +2.22% |
S&P | 1536.34 | +0.37% | +1.36% |
The Metals:
CoT Reports: Gold | Silver
Gold rose a couple of dollars in Asia and held its gains through London before it steadily marched higher throughout most of trade in New York and ended near its high with a gain of 1.51%. Silver rose nearly 10 cents in Asia, began to add to its gains in late London trade, extended its rise further in New York, and ended near its high with a gain of 2.39%.
Euro gold rose above €499, platinum gained $10 to $1,295, palladium gained $3 to $376, and copper remained at roughly $3.38.
Gold and silver equities rose about 2% in the first hour of trade and remained near their highs into the close.
Gold Climbs Most in Three Months After European Central Bank Caps Sales
Bloomberg
Gold futures gain more than $10 to close near three-week high
MarketWatch
The Economy:
Report | For | Reading | Expected | Previous |
Nonfarm Payrolls | May | 157k | 135K | 80K |
Unemployment Rate | May | 4.5% | 4.5% | 4.5% |
Hourly Earnings | May | 0.3% | 0.3% | 0.2% |
Average Workweek | May | 33.9 | 33.8 | 33.8 |
Personal Income | Apr | -0.1% | 0.3% | 0.8% |
Personal Spending | Apr | 0.5% | 0.4% | 0.4% |
Core PCE Inflation | Apr | 0.1% | 0.2% | 0.0% |
ISM Index | May | 55.0 | 54.0 | 54.7 |
Michigan Sentiment | May | 88.3 | 88.0 | 88.7 |
Pending Home Sales | Apr | -3.2% | 0.4% | -4.5% |
The BLS net birth/death adjustment added 203,000 jobs to May’s payrolls. As usual, most on Wall Street ignored the adjustment and instead concentrated on the headline number that came in above expectations. Also being hailed on Wall Street today was the fact that year-over-year Core PCE dipped down to 2.0% to fall within the Fed's comfort zone of 1 to 2 percent. While that part of the Personal Income/Spending report was widely talked about, almost completely ignored was the portion that showed personal savings fell to -1.3%.
All of this week’s economic reports:
Next week’s economic highlights include Factory Orders on Monday, ISM Services on Tuesday, Productivity on Wednesday, Initial Jobless Claims, Wholesale Inventories, and Consumer Credit on Thursday, and the Trade Balance on Friday.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil and gas rose on supply concerns as refinery problems continue with no notable drop in demand despite recent record high prices at the pump.
The U.S. dollar index and interest rates rose while treasuries fell as traders concentrated on strong headline payrolls and slightly better than expected ISM and Michigan Sentiment reports. The yield on the 10-year note rose to a 9 and ½ month high.
The Dow, Nasdaq, and S&P rose on indications of stronger than expected economic growth and tame inflation, but notable early gains were reduced slightly by the close. The Dow and S&P made new record closing highs.
Among the big names making news in the market Friday were Dow Jones, GM, Ford, Toyota, Chrysler, and Dell.
The Commentary:
“August Gold finished up 10.2 at 676.9, 0.4 off the high and 8.4 up from the low.
July Silver closed up 0.27 at 13.74. This was 0.15 up from the low and 0.01 off the high.
With a distinct rally back above the 100 day moving average and the rally unfolding in the face of mostly minor gains in the US Dollar, it would seem like the gold market has adopted a focus other than its recent infatuation with the currency markets. Certainly seeing the US economic outlook brightened by the monthly Non farm payrolls was beneficial to gold, but one might also suspect that the ongoing gains in the Asian and European equity markets gave off the impression of a strong global condition. With oil prices firming in the back ground and all the precious metals market rising in sync during the session, it would seem like something broad based was behind the rise in prices.
With a very distinct upward thrust on the charts the silver market seems to have come back alive. With the July contract soaring above the 100 day moving average early in the week, retesting that level and then running up aggressively, it would seem like the funds and the specs were involved in the run up. Certainly the favorable macro economic outlook contributed to the rally, but it would seem like the idea that silver will outperform the gold market is gathering a following. With news of a 9.5% decline in Mexican silver production in March compared to year ago, the market was also given some rare help from the supply side of the equation this week.”- The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Blanchard's Neal Ryan on ECB's suspension of gold sales
European Central Bank won't sell gold through September
Ron Paul: The end of dollar hegemony, Part I
Banks give preferential rates on loans in takeover craze
Is Morgan working both sides of credit-insurance derivatives market?
GATA sympathizers gather for lunch in Sydney on June 14
European central banks to fall short of gold sales quota again
Couldn't they have voted for MorganChase or Citigroup instead?
The Statistics:
As of close of business: 5/31/2007
Gold Warehouse Stocks: | 7,633,132 | - 34,803 |
Silver Warehouse Stocks: | 130,497,159 | -1,016 |
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 | 468.22 | 15,053,865 | US$ 9,918m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) |
Gold Seeker Weekly Wrap-Up: Gold and Silver Gain Over 2% and 6% on the week