-- Posted Wednesday, 27 June 2007 | Digg This Article
| Close | Gain/Loss |
Gold | $641.80 | -$0.40 |
Silver | $12.19 | -$0.05 |
XAU | 135.02 | +1.74% |
HUI | 324.23 | +0.95% |
GDM | 1015.91 | +1.11% |
JSE Gold | 2498.51 | -1.56% |
USD | 82.33 | +0.02 |
Euro | 134.41 | -0.26 |
Yen | 81.67 | +0.60 |
Oil | $68.97 | +$1.20 |
10-Year | 5.070% | -0.031 |
T-Bond | 107.125 | +0.34375 |
Dow | 13427.73 | +0.68% |
Nasdaq | 2605.35 | +1.21% |
S&P | 1506.34 | +0.90% |
The Metals:
Gold traded mostly slightly lower in Asia in London before it moved higher in late morning New York trade and saw small gains above $644 by early afternoon, but it then fell back off into the close and ended with a loss of 0.06%. Silver rose over $12.30 before it also fell back off into the close and ended with a loss of 0.41%.
Euro gold remained at about €477, platinum gained $4 to $1,273, palladium lost $2 to $360, and copper gained roughly 5 cents to about $3.42.
Gold and silver equities fell about 1% at the open before they rose to find slight gains by late morning, extended their gains in the last two hours of trade, and ended with about 1% gains.
CBGA signatories on pace to end shy of gold sales quota
Resource Investor
The Economy:
Report | For | Reading | Expected | Previous |
Durable Orders | May | -2.8% | -1.0% | 1.1% |
Tomorrow at 8:30AM EST brings the final reading for 1st quarter GDP expected at 0.8%, the Chain Deflator expected at 4.0%, and Initial Jobless Claims for 6/22 expected at 315,000. At 10AM is the Help-Wanted Index for May expected at 29, and at 2:15PM is the FOMC policy statement that is expected to keep interest rates unchanged, but may have a different view towards future interest rate moves.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil fell in early trade as traders expected inventories to rise, but it then saw over $1 gains after inventories came in mixed and raised supply concerns as it was also shown that gasoline demand remains strong and rose 1.4% last week compared to a year ago. Oil inventories built a smaller than expected 1.6 million barrels, gasoline inventories surprisingly fell 700,000 barrels, distillates surprisingly fell 2.3 million barrels, and refinery utilization rose 1.8% to 89.4%.
The U.S. dollar index fell on weak U.S. economic data as the yen continued to gain on the unwinding of the carry trade and strong Japanese Retail Sales, but dollar losses turned to small gains by the close as traders prepared for tomorrow’s fed meeting.
Treasuries rose after Durable Goods Orders fell more than expected and pushed interest rates lower.
The Dow, Nasdaq, and S&P opened lower on worries weak poor Durable Goods Orders data, but all three indices found decent gains by the close as financial stocks rebounded from recent losses and led the major indices back higher.
Among the big names making news in the market Friday were ConAgra, Best Buy, Bear Stearns, CommScope and Andrew, and Guitar Center and Bain.
The Commentary:
“Further erosion in the precious metals markets has created an environment for additional downside risks at this time. A breakdown in technicals is aiding the weakness and the market remains vulnerable. The market is capable of extending the pullback to the low $600’s while any rally attempts are going to be difficult to sustain in such an environment. It will take a new level to form a solid base from where the precious metals complex can stabilize before looking to more forward again. Although you do have a weak US Dollar and strong energy prices which could indicate the price of gold could be forming such a base around current levels.
These are the so-called “summer doldrums.” It may be several weeks into this seasonally weak and quieter period when gold starts to make a push back higher, but for now investors who remain committed to the long-term prognosis of $700 and higher gold can use this to cost average, accumulate on the fall.
I remain cognizant on the ongoing situation in the Middle East. We have indications of further war preparations yesterday by Iran which began to partition fuel to its citizens. Is a conflict inching closer? This unknown variable could trigger a quick reversal in the gold price should the situation elevate further. Investors have become complacent to the situation as it has dragged on. Yet if the situation warrants greater concern, all eyes will return to markets such as gold which may have fallen out of favor during the short-term.” - Peter Spina, GoldSeek.com | GoldForecaster.com
“August Gold finished down 0.5 at 644.8, 2.7 off the high and 1.9 up from the low.
July Silver closed down 0.07 at 12.21. This was 0.03 up from the low and 0.14 off the high.
Although the economic report news was clearly bearish showing a 2.8% decline in May Durable Goods, selling in the gold market was surprisingly limited. It is further encouraging to see the selling pressure ease up on gold despite the Euro weakening against the Dollar. We suspect the afternoon rebound in the stock market and lower Treasury yields helped to give some relief to investors worried over the economic repercussions from sub-prime mortgage problems and acted as a bit of an offset to the bearish economic news seen so far this week. Also, the rebound in energy prices may have rekindled some inflation concerns and encouraged some bargain hunting in gold. The Press is also reporting that gold prices had reached a low enough level to draw in physical buyers, particularly from India as demand for gold has been very strong this year.
It is a little surprising the silver market was able to hold off aggressive selling interest despite the patently weak May Durable Goods report. In fact, this week's economic data so far has painted a bearish macro economic environment that could easily keep the trade on the defensive. However, the sharp afternoon rebound in the stock market, slightly lower Treasury yields and a rebound in copper prices seems to have also eased some global liquidity concerns and in turn has helped to ease the selling in the silver market. The Press also reported the sharp decline in silver prices recently has begun to attract physical buyers and bargain hunters to the market.”- The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
'Sub-prime Chernobyl': So gold has to be hit hard
IMF delays consideration of gold sales by a month
The Statistics:
As of close of business: 6/26/2007
Gold Warehouse Stocks: | 7,451,134 | - |
Silver Warehouse Stocks: | 141,296,181 | + 1,862,675 |
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 | 463.45 | 14,900,324 | US$ 9,637m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 93.12 | 2,994,056 | US$ 1,923m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 12.28 | 394,442 | US$ 254m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 13.18 | 423,838 | US$ 274m |
Note: Change in Total Tonnes from yesterday’s data: The NYSE SGX subtracted 11.08 tonnes.
COMEX Gold Trust (IAU)
Profile as of 6/26/2007 | |
Total Net Assets | $947,549,523 | 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 6/26/2007 | |
Total Net Assets | $1,782,277,977 | 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) drilling, Exeter’s (XRA) appointments, Ivanhoe’s (IVN) Investment Agreement, Fronteer’s (FRG) drill results, Agnico-Eagle’s (AEM) drill results, Gold Fields’ (GFI) warrant exercise in GoldQuest, Bear Creek’s (BCM.V) drill results, and ECU’s (ECU.V) listing on the TSX were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Pacific Rim | PMU+12.22% $1.01 |
2. Vista Gold | VGZ +8.86% $4.30 |
3. Nevsun | NSU +4.82% $2.39 |
LOSERS
1. Kimber | KBX-3.73% $1.29 |
2. Solitario | XPL -2.36% $4.55 |
3. Orezone | OZN-2.00% $1.47 |
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:
Klondex Receives Shareholder Petition - More
- June 27, 2007 | Item | E-mail
Gold Bullion Development Corp.: Granada Mine and Mill Pre-Feasibility Bulk Sample Up-Date - More
- June 27, 2007 | Item | E-mail
Matoush Continues to Impress: Strateco Intersects 1.97% U3O8 Over 6.7 Metres and Begins Global Exploration of the Matoush Project - More
- June 27, 2007 | Item | E-mail
Southampton Announces Closing of Horden Lake Deposit Acquisition and Provides Further Details Re Niger Uranium Permits - More
- June 27, 2007 | Item | E-mail
Pro-Spect-Or Resources Changes Its Name to Uranium Bay Resources Inc. and Creates a Subsidiary Which Shall Hold its Non-Uranium Properties - More
- June 27, 2007 | Item | E-mail
Wildwood Management Corporation in Negotiations to Acquire Mining Properties Outside of North America - More
- June 27, 2007 | Item | E-mail
Soltoro Intercepts 269 gpt Silver Over 12 Metres at El Rayo in Mexico - More
- June 27, 2007 | Item | E-mail
Evolving Gold Announces Staking of 38,000 Acres in Nevada - More
- June 27, 2007 | Item | E-mail
Olympus Announces $25,000,000 Prospectus Offering - More
- June 27, 2007 | Item | E-mail
Hawk to List on the TSX Venture Exchange - More
- June 27, 2007 | Item | E-mail
Gold Seeker Closing Report: Gold and Silver End Slightly Lower in Mixed Trade