-- Posted Tuesday, 26 June 2007 | Digg This Article
| Close | Gain/Loss |
Gold | $642.20 | -$9.00 |
Silver | $12.24 | -$0.59 |
XAU | 132.71 | -2.59% |
HUI | 321.18 | -2.40% |
GDM | 1004.78 | -2.48% |
JSE Gold | 2537.99 | -1.84% |
USD | 82.31 | -0.02 |
Euro | 134.67 | +0.10 |
Yen | 81.07 | +0.26 |
Oil | $67.77 | -$1.41 |
10-Year | 5.101% | +0.023 |
T-Bond | 106.78125 | -0.25 |
Dow | 13337.66 | -0.11% |
Nasdaq | 2574.16 | -0.11% |
S&P | 1492.89 | -0.32% |
The Metals:
Gold dropped a few dollars in Asia and London and fell throughout most of trade in New York to as low as $639.60 by about 1PM EST before it bounced slightly higher into the close, but it still ended with a loss of 1.38%. Silver fell much more aggressively in New York and dropped to as low as $12.10 before it also rebounded in the last half hour of trade, but it still ended with a notable loss of 4.60%.
Euro gold fell to about €477, platinum lost $18 to $1,269, palladium lost $10 to $362, and copper fell over 5 cents to about $3.37.
Gold and silver equities steadily fell throughout most of the day and saw about 3% losses by late afternoon, but they did rebound a bit in the last hour of trade and closed with about 2.5% losses.
The Economy:
Report | For | Reading | Expected | Previous |
Consumer Confidence | June | 103.9 | 106.0 | 108.5 |
New Home Sales | May | 915K | 925K | 930K |
Also making economic news today was the S&P/Case-Shiller index which showed metropolitan home values fell 2.7% in April compared to a year ago which is the largest drop in 16 years. Included in the New Home Sales report were inventories falling 1.1% to a 7.1 month supply to show some stabilization in the housing market.
Tomorrow at 8:30AM EST brings the Durable Goods Orders report for May expected at -1.0%.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil fell about 2% on expectations for rising inventories in tomorrow’s report.
The U.S. dollar index fell as the yen rose on remarks from Japan's Finance Minister Koji Omi indicating concern about the further depreciation of the yen that in turn encouraged unwinding of the yen carry trade.
Treasuries finished lower in mixed trade as varied economic data eventually pushed interest rates marginally higher.
The Dow, Nasdaq, and S&P saw decent gains for most of trade as oil fell markedly, but all three indices fell back off in the last two hours of trade and ended slightly lower on continued worries over subprime loans and their potential harmful impact to credit derivatives and those who own them.
Among the big names making news in the market today were Apple, Payless ShoeSource, Kroger, BlackRock, Lennar, and ConocoPhillips.
The Commentary:
“August Gold finished down 9.4 at 645.3, 6.5 off the high and 2.5 up from the low.
July Silver closed down 0.597 at 12.28. This was 0.13 up from the low and 0.46 off the high.
The action in the gold market on Tuesday really damages the bull's psychology. Certainly the presence of weak US numbers fostered part of the selling but a breakdown in energy prices and more concerns toward the US housing/sub-prime loan area means that gold is presented with a series of negative themes. In fact, seeing the new home sales reading decline for the 4th time in the last 5 months speaks of a pattern of slowing and that is either deflationary for gold or it hits at the heart of physical demand hopes. Supposedly the weakening of energy prices has significantly reduced inflation concerns and on the back of a faltering US economy, the whole inflation argument is lost.
The silver market came under a massive wave of liquidation in what seemed to be a simple downside follow through from the prior session's washout but in the end the washout easily rivaled the massive failures seen back on December 15th and on March 1st and 2nd. In other words, the washout was significant in scope but the concentrated decline wasn't all that unusual when compared to recent history. Certainly the washout was facilitated by a sagging physical commodity market outlook and certainly the market was moving to extract some inflationary premium from prices but given the speed of the mid day washout, it is possible that options expiration fueled some of the selling. Some players even suggested that a recent pattern of builds in silver exchange stocks prompted the sell off but in the end any number of themes seemed to be credible.” - The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Ted Butler: Blood from a stone
BIS warns of Great Depression danger from credit spree
To save the world financial system, Japan must die
Here's another place where they've stopped reporting the money supply
The Statistics:
As of close of business: 6/25/2007
Gold Warehouse Stocks: | 7,451,134 | - |
Silver Warehouse Stocks: | 139,433,506 | +2,843,455 |
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 | 474.53 | 15,256,630 | US$ 9,925m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 93.13 | 2,994,089 | US$ 1,924m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 12.28 | 394,446 | US$ 254m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 13.18 | 423,843 | US$ 275m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU)
Profile as of 6/25/2007 | |
Total Net Assets | $961,140,492 | 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 6/25/2007 | |
Total Net Assets | $1,797,565,028 | Ounces of Silver
in Trust | 138,749,346.100 |
Shares Outstanding | 13,950,000 | Tonnes of Silver
in Trust | 4,315.59 |
Note: No change in Total Tonnes from yesterday’s data.
The Stocks:
Seabridge’s (SA) insider share sales, Exeter’s (XRA) drill results, Aurelian’s (ARU.TO) stock split, IAMGOLD’s (IAG) CFO appointment, and Sterling Mining’s (SRLM.OB) cross-cut preparations were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Exeter | XRA +4.00% $3.38 |
2. Solitario | XPL +1.97% $4.66 |
3. U.S. Energy | USEG+0.95% $5.33 |
LOSERS
1. Rubicon | RBY -8.56% $1.71 |
2. Vista Gold | VGZ -7.06% $3.95 |
3. Northern Dynasty | NAK -6.71% $10.84 |
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:
Sterling Finalizes Preparations for Upper Mine Exploration Cross-Cut - "Sterling Mining Company (OTCBB: SRLM - News) today reported that Sterling crews are preparing for continued development of an exploration cross-cut, at an elevation of 2,672 feet, east of the historic Polaris Mine workings in the upper mine area of the Sunshine Mine." More
- June 26, 2007 | Item | E-mail
Vulcan Minerals Inc.: Nickel Update-Options Proposed - More
- June 26, 2007 | Item | E-mail
Acero-Martin's Pinaya Gold-Copper Project Continues to Expand With Ongoing Drilling - More
- June 26, 2007 | Item | E-mail
Seabridge Gold Reports Insider Share Sales - "Seabridge Gold (CDNX:SEA.V - News)(AMEX:SA - News) announced today it has been informed by Friedberg Mercantile Group Ltd. ("FMGL") that two investments funds managed by FMGL have sold 162,000 common shares of Seabridge in order to meet their investment guidelines." More
- June 26, 2007 | Item | E-mail
Exeter Drilling Extends High-Grade Gold and Silver Mineralization at Cerro Moro - "Exeter Resource Corporation (CDNX:XRC.V - News)(AMEX:XRA - News)(Frankfurt:EXB.F - News) ("Exeter" or the "Company") reports that high-grade gold and silver encountered in six new diamond drill holes have extended the known mineralization in the Escondida vein area, at its Cerro Moro project, Argentina." More
- June 26, 2007 | Item | E-mail
Gossan Awards Incentive Stock Options - More
- June 26, 2007 | Item | E-mail
Shoreham Resources Receives Conditional Approval to Close $2,183,250 Flow-Through Private Placement - More
- June 26, 2007 | Item | E-mail
Adanac's 2007 Exploration Underway at Ruby Creek - More
- June 26, 2007 | Item | E-mail
Taranis Resources Commences Drilling at Thor Property, British Columbia - More
- June 26, 2007 | Item | E-mail
Chapleau Resources Ltd. - 1.37 g/t Gold over 31.0 m Intersected in Hole 10 at Cajueiro, Brazil - More
- June 26, 2007 | Item |
Gold Seeker Closing Report: Gold and Silver Fall Over 1% and 4%