-- Posted Wednesday, 6 June 2007 | Digg This Article
| Close | Gain/Loss |
Gold | $668.80 | -$0.90 |
Silver | $13.67 | -$0.07 |
XAU | 139.20 | -0.89% |
HUI | 336.52 | -1.02% |
GDM | 1067.47 | -0.98% |
JSE Gold | 2675.25 | -2.18% |
USD | 81.88 | -0.02 |
Euro | 135.03 | -0.21 |
Yen | 82.66 | +0.24 |
Oil | $65.96 | +$0.35 |
10-Year | 4.970% | -0.006 |
T-Bond | 108.375 | -0.0625 |
Dow | 13465.67 | -0.95% |
Nasdaq | 2587.18 | -0.92% |
S&P | 1517.38 | -0.89% |
The Metals:
Gold traded about $2 higher in Asia before it fell back off in London and came into New York about $2 lower. It then spiked back over $670 between 9AM and 10AM EST before it dropped over $5 between 10AM and 11AM EST to as low as $664.50 at one point, but it then rallied higher for the rest of trade and ended with a loss of just 0.13%. Silver dropped to about $13.56 on several occasions in morning New York trade before it rallied over 10 cents off its low in the last few hours of trade and ended with a loss of 0.51%.
Euro gold remained at about €495, platinum lost $3 to $1,296, palladium gained $3 to $374, and copper fell another 5 cents to about $3.26.
Gold and silver equities fell nearly 2% by late morning, but they then rebounded in the last 2 hours of trade and ended with only about 1% losses.
The Economy:
Report | For | Reading | Expected | Previous |
Productivity | Q1 | 1.0% | 1.0% | 1.7% |
Also making economic news today was a reduced growth forecast from to white house from 2.9% to 2.3% for 2007 and two disappointing reports on the housing sector. The MBA reported mortgage applications fell 1.7% last week and the national association of realtors forecasted a 4.6% drop in home sales and a 1.3% drop in prices this year.
Tomorrow at 8:30 AM EST brings Initial Jobless Claims for 6/02 expected at 312,000. At 10AM is the Wholesale Inventories report for April expected at 0.3%, and at 3PM is Consumer Credit for April expected at $6.0 billion.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil rose on tensions over conflicting reports about Turkish troops crossing the Iraqi border as tropical cyclone Gonu continues to disrupt shipping lanes in the Persian Gulf, though it appears to have not caused any major damage in the area. Mixed inventory reports that showed crude inventories built a modest 100,000 barrels, gasoline inventories built a greater than expected 3.5 million barrels, distillates built 1.9 million barrels, and refinery utilization surprisingly fell 1.5% to 89.6% while most were expecting utilization to rise.
The U.S. dollar index rose versus the euro after the ECB hiked interest rates to 4.0% and was not as hawkish as most expected in their statement towards further rate hikes, but it fell verses the yen on unwinding of carry trades and ultimately ended slightly lower. All eyes now move to the Bank of England’s meeting which concludes tomorrow.
Treasuries rose in early trade as stocks fell and worries over slowing economic growth pushed interest rates down from their highs near 5% reached yesterday, but gains turned to slight losses by the end of trade as traders looked ahead to tomorrow’s economic data that may finally push bond yields over that psychologically important 5% level.
The Dow, Nasdaq, and S&P fell nearly 1% on worries over higher interest rates in the future despite today’s small drop in rates.
Among the big names making news in the market today were Prudential Financial, Colony Capital and Tamoil, and Tudor.
The Commentary:
“August Gold finished down 0.5 at 674.6, 2.4 off the high and 4.3 up from the low.
July Silver closed down 0.095 at 13.717. This was 0.057 up from the low and 0.063 off the high.
After a weaker opening on concerns rising global interest rates may be creating a deflationary environment, gold was able to cut nearly all its losses on a report Turkey had sent troops into Iraq. The Dollar turning weaker on the session after early gains began to fade which also helped gold to recover. While Turkish officials say the military maneuver is not that unusual, the report did seem to raise Middle East geopolitical anxiety. However, the gold market still had a lot of negative news to absorb this session. The ECB raised rates as expected today and with US bond yields nearing 5% and the Fed expecting sluggish growth ahead the macro economic environment for gold is not the best. Outside market activity also weighed on gold with heavy losses in the stock market, generally weaker trading in Bonds and lower gasoline prices suggesting market sentiment toward the economy is shifting. A report that Spain's Central Bank has been selling gold and shifting reserves to fixed income securities may have also added to the early selling pressure in gold.
Despite some new geopolitical worries, silver continued to be weighed down by both the supply and demand news this session. With the Fed expecting sluggish growth ahead and weakness in the US housing sector likely to continue, silver's industrial metal appeal looks to be fading a bit. The economic environment seems to be lowering demand expectations for industrial metals given the sharp sell off in the copper market which in turn weighed on silver this session. The rising global interest rate environment and the sharp sell off in the stock market has some in the trade fearing a deflationary environment may be starting to unfold. Silver was also hurt by some supply news as Canada's Pan American Silver Corp announced plans to expand production.” - The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Spain says it dumped gold for more profitable bonds
John Crudele: I've got a hot tip for the financial press
Ted Butler: Silver's future brightens as tech funds withdraw
The Statistics:
As of close of business: 6/5/2007
Gold Warehouse Stocks: | 7,633,132 | - |
Silver Warehouse Stocks: | 130,368,616 | - |
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 | 477.77 | 15,360,769 | US$ 10,311m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 90.81 | 2,919,740 | US$ 1,954m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 11.99 | 385,352 | US$ 258m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 13.06 | 419,978 | US$ 281m |
Note: Change in Total Tonnes from yesterday’s data: The JSE added 0.24 tonnes.
COMEX Gold Trust (IAU)
Profile as of 6/5/2007 | |
Total Net Assets | $988,365,394 | Ounces of Gold
in Trust | 1,476,134.274 |
Shares Outstanding | 14,900,000 | Tonnes of Gold
in Trust | 45.91 |
Note: No change in Total Tonnes from yesterday’s data.
Silver Trust (SLV)
Profile as of 6/5/2007 | |
Total Net Assets | $1,888,494,901 | Ounces of Silver
in Trust | 137,754,970.100 |
Shares Outstanding | 13,850,000 | Tonnes of Silver
in Trust | 4,284.66 |
Note: Change in Total Tonnes from yesterday’s data: 30.94 tonnes were added to the trust.
The Stocks:
Rubicon’s (RBY) exploration update, Aurelian’s (ARU.TO) drill results, Miramar’s (MNG) drill results, Gold Fields’ (GFI) increased reserves and resources, Newmont’s (NEM) CEO retirement, Coeur’s (CDE) taxes in Bolivia, Pan American’s (PAAS) production expansion, and Siverstone’s (SST.V) acquired silver production were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Rubicon | RBY +11.45% $1.85 |
2. Vista Gold | VGZ +2.80% $5.50 |
3. Apex Silver | SIL +2.35% $20.88 |
LOSERS
1. IMA Exploration | IMR -12.84% $0.95 |
2. Anlgo American | AAUK -4.47% $29.29 |
3. Aurizon | AZK -4.01% $3.35 |
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:
Golden Arch closes $960,000.00 private placement - More
- June 06, 2007 | Item | E-mail
Grandview Gold Sends Award-Winning Exploration Team Into Emerging Rice Lake Gold District - More
- June 06, 2007 | Item | E-mail
Explor Acquires Kidd Township Property - More
- June 06, 2007 | Item | E-mail
Pacific Comox Resources Ltd.: Hole 66b Interval of 68 Feet Grading 0.13% or 2.7 lbs/ton Molybdenum Including 19 Feet of 0.38% or 7.5 lbs/ton - More
- June 06, 2007 | Item | E-mail
Media Release: DPM Files Formal Complaint With the European Commission Against Bulgaria - More
- June 06, 2007 | Item | E-mail
Farallon Announces Key Developments for G-9 Project: - More
- June 06, 2007 | Item | E-mail
Canadian Mining Company arranges non-brokered private placement of up to 2,500,000 units at a price of $0.13 per unit - More
- June 06, 2007 | Item | E-mail
Silver miner says Bolivia to tax profit, not revenue - "The head of U.S. silver producer Coeur d'Alene Mines Corp. (CDE.N: Quote, Profile , Research) said on Wednesday that Bolivia's planned tax hike on foreign companies will most likely be based on net profits rather than gross revenues.
Chief Executive Officer Dennis Wheeler told Wall Street analysts he had just returned from the South American country where his company is opening a major silver mine next year." More
- June 06, 2007 | Item | E-mail
NGG to Visit Seven Cities During European Roadshow - More
- June 06, 2007 | Item | E-mail
Revision of Ecuador's Mining Laws to Benefit Dhanoa Minerals - More
- June 06, 2007 | Item | E-mail
Geodex announces acquisition of four new properties in southwestern New Brunswick with indium and uranium potential - More
- June 06, 2007 | Item | E-mail
Gold Seeker Closing Report: Gold and Silver Fall Slightly as Stocks Drop