-- Posted Wednesday, 13 June 2007 | Digg This Article
| Close | Gain/Loss |
Gold | $648.80 | +$0.30 |
Silver | $13.02 | +$0.01 |
XAU | 136.55 | +1.39% |
HUI | 325.97 | +1.38% |
GDM | 1025.78 | +1.13% |
JSE Gold | 2582.64 | +1.00% |
USD | 83.04 | +0.11 |
Euro | 132.95 | -0.35 |
Yen | 81.67 | -0.19 |
Oil | $66.26 | +$0.91 |
10-Year | 5.200% | -0.048 |
T-Bond | 106.1875 | +0.625 |
Dow | 13482.35 | +1.41% |
Nasdaq | 2582.31 | +1.28% |
S&P | 1515.67 | +1.52% |
The Metals:
Gold fell a couple of dollars in Asia and traded as much as five dollars lower in London before it rallied in early New York trade to above $650 by late morning, but it then fell back off into the close and ended with a gain of just 0.05%. Silver dropped to about $12.80 in London before it rose to over $13.10 in late morning New York trade, but it also fell back off into the close and ended with a gain of just 0.08%.
Euro gold rose above €488, platinum lost $13 to $1,283, palladium lost $1 to $370, and copper rose over 4 cents to about $3.32.
Gold and silver equities rose over 1% in the first hour of trade and remained near their highs into the close.
The Economy:
Report | For | Reading | Expected | Previous |
Import Prices | May | 0.9% | 0.3% | 1.4% |
Import Prices ex-oil | May | 0.5% | - | 0.3% |
Export Prices | May | 0.1% | - | 0.3% |
Export Prices ex-ag. | May | 0.2% | - | 0.5% |
Retail Sales | May | 1.4% | 0.6% | -0.1% |
Retail Sales ex-auto | May | 1.3% | 0.7% | 0.1% |
Business Inventories | Apr | 0.4% | 0.3% | 0.0% |
The Beige Book noted good economic growth with little inflation, noting no increases in wage or price pressures.
Tomorrow at 8:30AM EST brings Initial Jobless Claims for 6/09 expected at 310,000, PPI for May expected at 0.6%, and Core PPI expected at 0.2%.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil rose after inventory reports did not come in as strong as expected as crude inventories built just 100,000 barrels, gasoline inventories were unchanged rather than an expected build, distillates built just 300,000 barrels, and refinery Utilization fell 0.4% to 89.2% while most were expecting it to rise back over 90%.
The U.S. dollar index rose after Retail Sales came in much stronger than expected, but it then pared its gains after interest rates did not react to the upside and actually fell and pushed treasuries higher on short covering.
The Dow, Nasdaq, and S&P rose over 1% on strong retail sales and lower bond yields and extended their gains following the release of the fed’s Beige Book that eased inflation worries.
Among the big names making news in the market today were Renault, Boeing, Jones Apparel, Barclays and ABN, and Ceridian.
The Commentary:
“August Gold finished down 0.4 at 652.7, 3.5 off the high and 3.4 up from the low.
July Silver closed down 0.03 at 13.06. This was 0.11 up from the low and 0.14 off the high.
The gold market closed slightly lower on the day after a volatile session with prices supported by an easing in Treasury yields, but capped by gains in the Dollar. Treasury yields pulled back on Wednesday on ideas interest rates may have backed up above the Fed's target range. Also, a jump in May retail sales and a nearly 1% rise in import prices suggested the economy is in better shape than previously thought and along with higher energy prices, inflation concerns were rekindled. The market also found some early support from news physical gold demand was on the rise with India's 1st quarter gold imports up 50% compared to last year while gold jewelry demand in Asia and the Middle East has also been on the rise. However, the Dollar seems to be having the most influence of gold prices which is certainly limiting the metal's upside potential. In fact, if the US economic numbers remain strong and market sentiment continues to shift to a tightening Fed bias, the uptrend in the Dollar will likely be maintained and keep the gold market under a certain amount of pressure.
Silver was able to reject an early probe lower on Wednesday and may be an indication at least a temporary low has been set. The strong retail sales data, with the 1.8% gain in auto sales last month certainly suggest the economy is doing better than some in the trade had previously thought. The combination of easing bond yields and a rebound in stock prices seemed to be the primary catalyst for silver's rebound. A recovery in copper prices was an added plus for silver. However, both the silver and copper market may continue to be undermined by concerns that rising Chinese interest rates will continue to lower Chinese base metal demand.” - The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Ted Butler: Concentration foretells silver explosion
Peter Brimelow: Gold moves fuel cartel theories
Chinese bank would expand into U.S. and Russia
Greenspan: China won't sell U.S. bonds ... because no one would buy!
The Statistics:
As of close of business: 6/12/2007
Gold Warehouse Stocks: | 7,632,932 | -200 |
Silver Warehouse Stocks: | 130,323,913 | -5,021 |
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 | 472.99 | 15,207,139 | US$ 9,841m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 90.81 | 2,919,513 | US$ 1,901m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 11.99 | 385,322 | US$ 251m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 13.06 | 419,945 | US$ 271m |
Note: Change in Total Tonnes from yesterday’s data: The NYSE/SGX added 3.08 tonnes.
COMEX Gold Trust (IAU)
Profile as of 6/12/2007 | |
Total Net Assets | $957,144,719 | 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 6/12/2007 | |
Total Net Assets | $1,811,174,489 | 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:
International Royalty’s (ROY) addition to the Standard and Poor's TSX Global Gold Index, Great Basin’s (GBN) agreement with Vancouver based Rusaf Gold Ltd., IAMGOLD’s (IAG) exploration results, Banro’s (BAA) updated Mineral Resource estimates, Silverstone’s (SST.V) exercised warrants, and UC Resources’ (UC.V) drill results were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Buenaventura | BVN+5.84% $34.45 |
2. Ivanhoe | IVN +5.40% $14.45 |
3. Entree Gold | EGI +4.81% $2.18 |
LOSERS
1. Orezone | OZN -6.15% $1.39 |
2. Rubicon | RBY -4.27% $1.57 |
3. US Energy | USEG-3.03% $5.44 |
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:
Sulliden Resorts To Desperate Tactics In Peru - More
- June 13, 2007 | Item | E-mail
Yankee Hat Receives Additional Positive Drill Results From the Fran Gold Project, Appoints New Director - More
- June 13, 2007 | Item | E-mail
Lundin reviews Rio Narcea bid in "frothy" market - "Lundin Mining Corp. (LUN.TO: Quote, Profile , Research) said on Wednesday it is reviewing its C$864 million ($807.5 million) takeover offer for Rio Narcea Gold Mines (RNG.TO: Quote, Profile , Research) and hopes the "frothy" nickel sector will settle by the time its bid closes June 29.
The mid-tier base metal miner, which wants to enter the nickel sector with the Rio Narcea acquisition, said market conditions have worked against its twice-extended bid." More
- June 13, 2007 | Item | E-mail
GLR Completes Final Feasibility Study for Goldfields Project - More
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Gold Seeker Closing Report: Gold and Silver End Slightly Higher While Stocks Soar