-- Posted Thursday, 5 July 2007 | Digg This Article
| Close | Gain/Loss |
Gold | $648.20 | -$4.80 |
Silver | $12.44 | -$0.13 |
XAU | 140.30 | +1.03% |
HUI | 343.18 | +2.06% |
GDM | 1065.86 | +1.46% |
JSE Gold | 2448.43 | +0.55% |
USD | 81.55 | +0.08 |
Euro | 135.98 | -0.20 |
Yen | 81.43 | -0.33 |
Oil | $71.81 | +$0.40 |
10-Year | 5.144% | +0.094 |
T-Bond | 106.5625 | -0.9375 |
Dow | 13565.84 | -0.08% |
Nasdaq | 2656.65 | +0.44% |
S&P | 1525.40 | +0.03% |
The Metals:
Gold traded roughly a dollar higher in world trade during the 4th of July U.S. holiday and then added a couple of dollars to its gains in London trade on Thursday before it plummeted over $10 in early New York trade to as low as $645.20 by about 10:30 AM EST, but it did rebound about 0.5% off its low in the last few hours of trade and ended with loss of just 0.74%. Silver dropped to as low as $12.36 before it also rebounded into the close, but it still ended with a loss of 1.03%.
Euro gold fell to about €477, platinum gained $8 to $1,302, palladium lost $2 to $365, and copper rose roughly 6 cents to about $3.62.
Gold and silver equities rose about 1% at the open before they fell back near unchanged by midmorning as gold and silver fell, but they then rallied back higher throughout the afternoon and ended with over 1% gains.
The Economy:
Report | For | Reading | Expected | Previous |
Initial Claims | 6/30 | 318K | 315K | 316K |
ISM Services | June | 60.7 | 58.0 | 59.7 |
Also making economic news today was the ADP’s private jobs report showing a better than expected addition of 150,000 jobs in June, but most are waiting for tomorrow’s government jobs data at 8:30AM EST. Nonfarm Payrolls are expected at 125,000, the Unemployment Rate is expected at 4.5%, Hourly Earnings are expected at 0.3%, and the Average Workweek is expected at 33.9.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil started the day off higher on news of attacks and kidnappings in Nigeria before it fell off rather dramatically after inventories came in much higher than expected, but it then rose back higher in afternoon trade and closed with a decent gain on refinery problems and worries of escalating violence in Nigeria and other areas of the world. Crude inventories built 3.1 million barrels, gasoline inventories built 1.8 million barrels, distillates built 1.2 million barrels, and refinery utilization rose 0.6% to 90.0%.
The U.S. dollar index rose and treasuries fell after stronger than expected ADP jobs and ISM Services data pushed interest rates higher. The Bank of England raised interest rates to 5.75% and the European Central Bank held rates at 4.0%, but neither event had much impact on the currency markets as the policy moves were announced as expected.
The Dow, Nasdaq, and S&P remained near unchanged and ended mixed as worries over rising bond yields battled more buyout news.
Among the big names making news in the market today were H&R Block, Samsonite, Toyota, Ford, Incisive Media and ALM, Hilton, and Jones Apparel and Fast Retailing.
The Commentary:
“August Gold finished down 4.8 at 650.6, 7.9 off the high and 3.1 up from the low.
July Silver closed down 0.1 at 12.469. This was 0.029 up from the low and equal to the high.
With the Dollar failing to hold a new low for the move and eventually managing a rather robust short covering rally, it seemed as if the tables were turned on the bull camp in the gold market. One might have expected gold to have been supported by another better than expected US economic report and perhaps even because the ECB left interest rates unchanged but apparently the markets focus is exclusively trained on the direction of the Dollar. It is also possible that the initial weakness in energy prices contributed to the decline.
Even though the silver market could have been supported by a supply threat from the Penoles silver mine in Mexico (due to a strike brought on by safety concerns) the market was unable to divorce itself from the strength in the Dollar and the weakness in the gold market. Until today the silver market was the only widely traded metals market that wasn't being presented with a strike induced supply threat. However, the market didn't seem to get much support from the supply threat, possibly because the strike was billed as a "1-day strike". Surprisingly firm price action in platinum and copper failed to have any influence on silver prices.”- The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Credit derivatives blowup threatens Italian bank
A mortgage-securities hedge fund suspends redemptions
Ted Butler: The raptors rumble
Credit crunch will 'shred investment portfolios to ribbons'
Ron Paul honored in metal in advance of his election
The Statistics:
As of close of business: 7/3/2007
Gold Warehouse Stocks: | 7,238,241 | - |
Silver Warehouse Stocks: | 133,089,064 | +175,722 |
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 | 464.37 | 14,930,016 | US$ 9,764m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 93.12 | 2,993,790 | US$ 1,946m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 12.28 | 394,407 | US$ 257m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 13.18 | 423,801 | US$ 277m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU)
Profile as of 7/3/2007 | |
Total Net Assets | $963,420,226 | Ounces of Gold
in Trust | 1,475,649.875 |
Shares Outstanding | 14,900,000 | Tonnes of Gold
in Trust | 45.90 |
Note: No change in Total Tonnes from yesterday’s data.
Silver Trust (SLV)
Profile as of 7/3/2007 | |
Total Net Assets | $1,716,107,651 | Ounces of Silver
in Trust | 136,263,706.600 |
Shares Outstanding | 13,700,000 | Tonnes of Silver
in Trust | 4,238.28 |
Note: No change in Total Tonnes from yesterday’s data.
The Stocks:
Newmont’s (NEM) eliminated gold hedges and strategic initiatives, Gold Reserve’s (GRZ) processing equipment order, New Gold’s (NGD) project development, Great Basin’s (GBN) project progress and optimization study, Eldorado’s (EGO) drill results, Allied Nevada’s (ANV) Board of Director changes and exploration program funding, Yamana’s (AUY) discussions with Meridian Gold (MDG), Oremex’s (ORM.V) drill results, SliverCrest’s (SVL.V) assay results, Great Panther’s (GPR.TO) Convertible Loan Notes, Silver Quest’s (SQI.V) exploration and AGM results, and First Majestic’s (FR.V) mine update were among the big stories in the gold and silver mining industry making headlines today and yesterday.
WINNERS
1. Golden Star | GSS +7.20% $4.02 |
2. Entree Gold | EGI +7.19% $3.13 |
3. Coeur d’Alene | CDE +6.97% $3.99 |
LOSERS
1. Exeter | XRA -6.49% $3.60 |
2. Metalline | MMG -3.85% $3.75 |
3. Tanzanian Royalty | TRE -2.59% $4.52 |
Winners & Losers tracks NYSE and AMEX listed gold and silver mining stocks that trade over $1.
All of today's and yesterday’s gold and silver stock news:
Newmont Eliminates Gold Hedges, Creating the World's Largest Unhedged Gold Company, and Announces Strategic Initiatives - "Newmont Mining Corporation (NYSE: NEM - News) today announced the elimination of its entire 1.85 million ounce gold hedge position, establishing the Company as the world's largest unhedged gold producer. Newmont also announced plans to monetize components of its royalty and equity portfolio in the next twelve months, resulting in the discontinuation of the Company's Merchant Banking Segment as a separate business unit." More
- July 05, 2007 | Item | E-mail
Oremex Announces Partial Drill Results from San Lucas Drill Program - "Oremex Resources Inc. (TSX-V: ORM - News; the "Company") announces that it has received partial results from a recently completed 7,000 metre, 47 hole drill program at its San Lucas Property ("San Lucas"), Durango, Mexico. The program was designed to test extensions of mineralization both down dip and along strike to silver-gold-lead-zinc mineralization defined in a 2005 drill program." More
- July 05, 2007 | Item | E-mail
Dr. Michael Doggett Joins Inter-Citic's Advisory Board - More
- July 05, 2007 | Item | E-mail
BrazMin Announces Intention to Change Name to "Talon Metals Corp." and Election of New Directors - More
- July 05, 2007 | Item | E-mail
UEX Vests to 36.75% Interest in AREVA's Western Athabasca Uranium Projects - More
- July 05, 2007 | Item | E-mail
Cabo Mexico to drill 4,000 meters for SilverCrest Mines in northern Mexico - More
- July 05, 2007 | Item | E-mail
Eloro Acquires Otish Uranium Properties Near Strateco's Matoush Discovery - More
- July 05, 2007 | Item | E-mail
Gold Reserve Places Order for SAG and Ball Mills for Brisas - "Gold Reserve Inc. (TSX:GRZ - News; AMEX:GRZ - News) announced that it has placed its order for the fabrication of the Brisas gyratory crusher, pebble crushers, Semi Autogenous Grinding (SAG) and ball mills and other processing equipment from Metso Minerals. The total value of this purchase order is US $64 million with payment to be staged over the next two and one half years." More
- July 05, 2007 | Item | E-mail
Weststar Appoints James. J. McDougall, P.Eng to the Company's Advisory Board - More
- July 05, 2007 | Item | E-mail
Rocher DeBoule Minerals Corp.: Aeromagnetic Program Commences on IOCG Target - More
- July 05, 2007 | Item | E-mail
Gold Seeker Closing Report: Gold and Silver Fall Roughly 1%, But Miners Gain Over 1%