-- Posted Tuesday, 12 June 2007 | Digg This Article
| Close | Gain/Loss |
Gold | $648.50 | -$6.30 |
Silver | $13.01 | -$0.22 |
XAU | 134.77 | -1.17% |
HUI | 321.52 | -1.59% |
GDM | 1014.34 | -2.11% |
JSE Gold | 2556.96 | -2.49% |
USD | 82.93 | +0.20 |
Euro | 133.30 | -0.25 |
Yen | 82.16 | +0.08 |
Oil | $65.35 | -$0.62 |
10-Year | 5.248% | +0.111 |
T-Bond | 105.5625 | -1.15625 |
Dow | 13295.01 | -0.97% |
Nasdaq | 2549.77 | -0.87% |
S&P | 1493.00 | -1.07% |
The Metals:
Gold traded about $1-$3 lower in Asia, dropped a couple dollars more in London, and fell even further in early New York trade to as low as $645.20 at one point, but it then bounced back higher in the last 3 hours of trade and ended about 0.5% off its low with a loss of 0.96%. Silver dropped to as low as $12.95 a little after 10AM EST before it rebounded over 1% off its low in late morning trade to over $13.10 by midday, but it then fell back off in afternoon trade and ended with a loss of 1.66%.
Euro gold fell to about €487, platinum lost $1 to $1,296, palladium lost $1 to $371, and copper fell roughly 5 cents to about $3.28.
Gold and silver equities fell about 2% in the first hour of trade before they steadily climbed back near unchanged by about 2PM EST, but they then fell back off into the close and ended back near their lows with about 2% losses.
The Economy:
Report | For | Reading | Expected | Previous |
Treasury Budget | May | -$67.7B | -$68.0B | -$42.9B |
Also making economic news today was a report from RealtyTrac Inc. showing a 90% rise in foreclosure filings in May compared to a year earlier. Tomorrow at 8:30AM EST brings Import and Export Prices for May and Retail Sales for May expected at 0.6%. Excluding autos, sales are expected at 0.7%. At 10AM is the Business Inventories Report for April expected at 0.3%, and at 2PM is the release of the fed’s Beige Book.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil fell on expected inventory builds in tomorrow’s reports as some speculate higher interest rates will cut into demand as well.
The U.S. dollar rose to a two month high versus the euro and treasuries fell markedly after a poor 10-year note auction helped interest rates rise for the seventh time in the last nine sessions. The yield on the 10-year climbed above the current fed funds rate of 5.25% to 5.27% for the first time in five years. Also due out tomorrow is the Treasury's report on currencies which may bring new developments in regards to action on China’s yuan.
The Dow, Nasdaq, and S&P fell about 1% on continued worries over rising interest rates.
Among the big names making news in the market today were Toyota and GM, Countrywide, Citigroup and Nikko Cordial, Lehman Brothers, and Texas Instruments.
The Commentary:
“August Gold finished down 5.9 at 653.1, 2.9 off the high and 3.1 up from the low.
July Silver closed down 0.185 at 13.09. This was 0.07 up from the low and 0.085 off the high.
The gold market seemed to drift downward throughout the session today, as the Dollar was mostly firm and a host of physical commodity markets were under selling pressure. With the financial markets rife with slowing fears arising out of rapidly rising US interest rates, it is not surprising to see investment and physical demand expectations soften in the gold market. With the additive pressure being seen in falling oil prices and a weak US stock market, the gold market would almost seem to be battling deflation conditions instead of inflationary conditions. With the September Dollar managing to reach the highest level since April 3rd it is pretty clear that the currency influence was a major component of the bear case.
The July silver contract spent a large portion of the trading session Tuesday under the prior session's low and that seemed to shift the technical bias in the market back away from the bullish stance in the prior session. With the overall macro economic outlook sagging further on Tuesday in the wake of the US equity market weakness and the copper market at times under moderate pressure, there wasn't much to threaten the bear camp in silver. In fact, with moderate energy market weakness and an extremely thin US economic report slate, the whole deflationary argument was easy to embrace.” - The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Al Korelin interviews Peter Grandich on gold manipulation and GATA
Reg Howe: Gold derivatives -- Chinese torture
Treasury warns hedge funds -- even as it won't regulate them!
BIS warns about explosion in debt for takeovers
The Statistics:
As of close of business: 6/11/2007
Gold Warehouse Stocks: | 7,632,932 | -200 |
Silver Warehouse Stocks: | 130,353,361 | - 24,427 |
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 | 469.91 | 15,108,150 | US$ 9,823m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 90.81 | 2,919,545 | US$ 1,895m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 11.99 | 385,326 | US$ 250m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 13.06 | 419,950 | US$ 273m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU)
Profile as of 6/11/2007 | |
Total Net Assets | $965,716,881 | 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 6/11/2007 | |
Total Net Assets | $1,812,576,869 | Ounces of Silver
in Trust | 137,754,970.100 |
Shares Outstanding | 13,850,000 | Tonnes of Silver
in Trust | 4,284.66 |
Note: No change in Total Tonnes from yesterday’s data.
The Stocks:
Gold Reserve’s (GRZ) site preparation, US Gold’s (UXG) letter to shareholders and grab sample, Richmont’s (RIC) exploration work, Kirkland’s (KGI.TO) addition to the S&P/TSX Global Gold Index, IMA’S (IMR) letter to shareholders, Endeavour’s (EXK) drill results, Palmarejo’s (PJO.V) drill results, Metalline’s (MMG) shareholder rights plan, Silver Dragon’s (SDRG.OB) approval to increase equity interest in Sanhe Sino-Top Resources and Technologies, Ltd., Minefinders’ (MFN) new audit, Minco Silver’s (MSV.TO) retention of SRK Consulting, and MAG Silver’s (MAG.V) assay results were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Freeport-McMoRan | FCX +1.98% $78.97 |
2. Banro | BAA +1.27% $10.40 |
3. Great Basin | GBN +1.24% $2.44 |
LOSERS
1. Vista Gold | VGZ -8.12% $4.64 |
2. Tanzanian Royalty | TRE -6.04% $4.67 |
3. Northern Dynasty | NAK -5.90% $11.76 |
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:
Open Letter to US Gold Shareholders - "How do we standout from our competition? What will be US Gold's competitive advantage in the marketplace? Why should potential investors be looking at us as an attractive investment? I ask myself these questions everyday in order to develop an edge." More
- June 12, 2007 | Item | E-mail
Premier to host webcast at AGM - More
- June 12, 2007 | Item | E-mail
ABV Gold Inc. Announces a Change of Transfer Agent - More
- June 12, 2007 | Item | E-mail
Gee-Ten Ventures Inc.: First Closing of the Private Placement - More
- June 12, 2007 | Item | E-mail
UraMin Announcement to U.S. Holders - Tax Information - More
- June 12, 2007 | Item | E-mail
Important Acquisition for Cancor Mines Inc. - More
- June 12, 2007 | Item | E-mail
Silvermet Inc. Grants Stock Options - More
- June 12, 2007 | Item | E-mail
Shoreham Resources Ltd.: Corporate Update - More
- June 12, 2007 | Item | E-mail
Mirasol Secures 100%-owned Copper-Gold Prospect in Northern Chile - More
- June 12, 2007 | Item | E-mail
Western Goldfields Annual and Special Meeting notification - More
- June 12, 2007 | Item | E-mail
ITH Begins Drilling Programs at Terra and West Tanana Projects, Alaska - More
- June 12, 2007 | Item | E-mail
ESO update on Athabasca uranium exploration programs - More
- June 12, 2007 | Item | E-mail
Wescan recommences exploration on its Jojay and Fork
Gold Seeker Closing Report: Gold and Silver Recover From Their Lows But Still Lose About 1%