-- Posted Thursday, 28 June 2007 | Digg This Article
| Close | Gain/Loss |
Gold | $647.90 | +$6.10 |
Silver | $12.36 | +$0.17 |
XAU | 134.85 | -0.13% |
HUI | 326.32 | +0.64% |
GDM | 1019.66 | +0.37% |
JSE Gold | 2481.80 | -0.67% |
USD | 82.32 | -0.01 |
Euro | 134.53 | +0.12 |
Yen | 81.21 | -0.46 |
Oil | $69.57 | +$0.60 |
10-Year | 5.118% | +0.048 |
T-Bond | 106.78125 | -0.34375 |
Dow | 13422.28 | -0.04% |
Nasdaq | 2608.37 | +0.12% |
S&P | 1505.71 | -0.04% |
The Metals:
Gold rose about $2 in Asia, added another $2 in London, and gained almost $4 more in morning New York trade to near $650 by late morning before it fell back off slightly in afternoon trade, but it still ended with a gain of 0.95%. Silver followed a similar pattern and rose near $12.50 before it also fell back off a bit, but it still ended with a gain of 1.39%.
Euro gold rose over €483, platinum gained $1 to $1,274, palladium gained $6 to $366, and copper gained nearly 6 cents to about $3.48.
Gold and silver equities rose over 1% at the open, but they then steadily fell off for the rest of trade and ended mixed and near unchanged.
The Economy:
Report | For | Reading | Expected | Previous |
GDP-Final | Q1 | 0.7% | 0.8% | 0.6% |
Chain Deflator | Q1 | 4.2% | 4.0% | 4.0% |
Initial Claims | 6/23 | 313K | 315K | 326K |
Help-Wanted Index | May | 27 | 29 | 29 |
FOMC policy | 6/28 | 5.25% | 5.25% | 5.25% |
Fed comments noted that economic growth is moderate despite the ongoing adjustment in the housing sector and the economy will likely to continue to expand at a moderate pace. Readings on core inflation have improved modestly in recent months; however a sustained moderation in inflation has yet to be shown. One notable changed in the statement was the removal of “elevated” in their description of core inflation.
Tomorrow at 8:30AM EST brings Personal Income for May expected at 0.6%, Personal Spending expected at 0.7%, and Core PCE Inflation expected at 0.1%. At 9:45 is Chicago PMI for June expected at 58.0, and at 10AM are Michigan Sentiment for June expected at 84.0 and Construction Spending for May expected at 0.2%.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil continued to gain on supply concerns after yesterday’s disappointing inventory report and topped $70 in morning trade for the first time since September before it pulled back a bit, but it still ended with nearly a 1% gain.
The U.S. dollar index remained near unchanged and treasuries fell on the day after the Personal Consumption Expenditures price index came in a bit higher than expected at 2.4% and the fed reiterated concerns over inflation heading forward.
The Dow, Nasdaq, and S&P remained mixed and near unchanged throughout trade as the fed’s statement came in about as expected.
Among the big names making news in the market today were Carlyle Group, KB Home, Monsanto, Constellation Brands, and Apple.
The Commentary:
“August Gold finished up 5.6 at 650.4, 1.9 off the high and 2.4 up from the low.
July Silver closed up 0.169 at 12.379. This was 0.019 up from the low and 0.081 off the high.
It seemed as if the gold market was being supported by inflation hedge buying since the 1st quarter implicit price deflator saw a surprisingly large jump compared to the preceding quarter. Also with energy prices moving mostly higher and Aug crude oil at times over $70 per barrel may have rekindled some inflation concerns. It may have been a relief to gold to see the Fed leave interest rates unchanged as expected and removed the reference of "elevated" when describing the core inflation rate since it suggests the Fed stance remains neutral and may be less likely to raise rates down the road. The stock market kept a positive tone initially after the release of the Fed statement which was likely another factor providing support to gold. Physical buying interest seems to have picked up in gold now that prices have fallen over $60 from the April highs. News of a merger between three gold companies (Yamana, Meridian Gold and Northern Orion Resources) might have contributed to the fresh wave of gold buying.
Silver was able to trade higher on short covering as the market appeared to have fallen too far too fast given that the firmer action in the stock market has improved the forward macro economic outlook. Also, there appears to be some relief buying in silver with the Fed leaving interest rates unchanged while hinting that core inflation is no longer elevated. The Press also cited physical buying has returned to the precious metals following the price washout from the April and June highs. Although the 1st quarter GDP was soft, the higher 1st quarter inflation number and gains in crude oil seem to be reviving the metal's appeal as an inflation hedge.”- The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Yamana, Northern Orion would merge, take over Meridian
The Statistics:
As of close of business: 6/27/2007
Gold Warehouse Stocks: | 7,451,134 | - |
Silver Warehouse Stocks: | 134,065,948 | + 7,230,233 |
Global Gold ETF Holdings
[WGC Sponsored ETF’s]
| Product name | Total Tonnes | Total Ounces | Total Value |
New York Stock Exchange (NYSE) AND Singapore Exchange (SGX) | Streettracks Gold Shares | 463.45 | 14,900,324 | US$ 9,564m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 93.12 | 2,994,023 | US$ 1,944m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 12.28 | 394,437 | US$ 256m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 13.18 | 423,834 | US$ 272m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU)
Profile as of 6/27/2007 | |
Total Net Assets | $946,948,686 | 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 6/27/2007 | |
Total Net Assets | $1,669,917,508 | Ounces of Silver
in Trust | 136,263,706.600 |
Shares Outstanding | 13,700,000 | Tonnes of Silver
in Trust | 4,238.28 |
Note: Change in Total Tonnes from yesterday’s data: 77.21 tonnes were removed from the trust.
The Stocks:
Yamana’s (AUY) acquisition of Northern Orion (NTO) and bid for Meridian (MDG), Minco Gold’s (MGH) spin-off, Rubicon’s (RBY) appointment, Royal Gold’s (RGLD) increase in reserves, New Gold’s (NGD) closed financing, Entree Gold’s (EGI) exercised warrants by Rio Tinto, Newmont’s (NEM) case in Indonesia, South American Silver’s (SAC.TO) drilling results, Silver Dragon’s (SDRG.OB) drill results, and Bear Creek’s (BCM.V) drill results were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Meridian | MDG+12.91% $27.55 |
2. Exeter | XRA +9.22% $3.79 |
3. U.S. Gold | UXG +7.19% $5.37 |
LOSERS
1. Yamana | AUY-8.32% $11.13 |
2. Mines MGMT | MGN -3.20% $3.33 |
3. Cyrstallex | KRY -2.44% $4.10 |
Winners & Losers tracks NYSE and AMEX listed gold and silver mining stocks that trade over $1.
All of today's gold and silver stock news:
Belvedere Resources Ltd. - Hitura Nickel Mine NI 43-101 Technical Report filed on SEDAR - More
- June 28, 2007 | Item | E-mail
Copper Fox Metals Inc. announces second quarter results - More
- June 28, 2007 | Item | E-mail
GWR welcomes Dr. David Bailey, reports assay results - More
- June 28, 2007 | Item | E-mail
Tagish Undertakes Non-Brokered Private Placement of Units, Terminates Flow-Through Unit Offering and Grants Stock Options - More
- June 28, 2007 | Item | E-mail
Pro-Or Closes 900,000$ Private Placement - More
- June 28, 2007 | Item | E-mail
Gold Seeker Closing Report: Gold and Silver Gain About 1%; Fed Holds