-- Posted Friday, 6 July 2007 | Digg This Article
| Close | Gain/Loss | On Week |
Gold | $652.50 | +$4.30 | +0.77% |
Silver | $12.64 | +$0.20 | +2.76% |
XAU | 145.00 | +3.34% | +6.66% |
HUI | 352.61 | +2.75% | +7.06% |
GDM | 1098.56 | +3.07% | +6.76% |
JSE Gold | 2526.00 | +3.17% | +2..27% |
USD | 81.44 | -0.11 | -0.59% |
Euro | 136.21 | +0.23 | +0.67% |
Yen | 81.07 | -0.36 | -0.17% |
Oil | $72.81 | +$1.00 | +2.87% |
10-Year | 5.191% | +0.047 | +3.14% |
Bond | 106.09375 | -0.46875 | -1.54% |
Dow | 13611.68 | +0.34% | +1.51% |
Nasdaq | 2666.51 | +0.37% | +2.43% |
S&P | 1530.44 | +0.33% | +1.80% |
The Metals:
Gold rose a couple of dollars back above $650 in Asia before it fell back off in London and dropped to as low as $644.70 in early New York trade, but it then climbed higher for the rest of the day and ended near its high of the session with a gain of 0.66%. Silver dropped to $12.31 in early New York trade, but it then rose over 3% off its low to about $12.75 before it fell back off slightly in the last half hour of trade and ended with a gain of 1.61%
Euro gold rose near €480, platinum gained $6 to $1,308, palladium gained $1 to $366, and copper remained at about $3.62.
Gold and silver equities rose over 2.5% by late morning and remained near their highs into the close.
The Economy:
Report | For | Reading | Expected | Previous |
Nonfarm Payrolls | June | 132K | 125K | 190K |
Unemployment Rate | June | 4.5% | 4.5% | 4.5% |
Hourly Earnings | June | 0.3% | 0.3% | 0.4% |
Average Workweek | June | 33.9 | 33.9 | 33.8 |
The BLS net birth/death adjustment added 156,000 jobs to June’s payrolls. Upward revisions added 75,000 jobs to April’s and May’s readings.
All of this week’s economic reports:
Next week’s economic highlights include Consumer Credit on Monday, Wholesale Inventories on Tuesday, Initial Jobless Claims, the Trade Balance, and the Treasury Budget on Thursday, and Export and Import Prices, Retail Sales, Business Inventories, and Michigan Sentiment on Friday.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil again rose on refinery concerns and worries over violence in Nigeria.
The U.S. dollar index fell near a 2 and ½ year low despite higher interest rates as today’s jobs data was not seen as strong enough to influence the fed to raise interest rates while other world governments continue to raise their rates.
Treasuries fell on better than expected jobs data thanks to another hefty BLS upward adjustment as well as upward revisions to past data.
The Dow, Nasdaq, and S&P fell at the open on worries over higher interest rates, but they soon rose and traded slightly higher for the rest of the day as higher oil prices brought energy stocks higher and more buyout rumors lifted the general market.
Among the big names making news in the market Friday were Genzyme, Dow Jones and News Corp, Advanced Medical and Bausch & Lomb, Rio Tinto and Alcoa/Alcan, CME and CBOT, UBS, Dana and Centerbridge, and UAW and Ford.
The Commentary:
“The combination of a weak US currency and oil near $73 is a powerful combination to drive gold higher, among other factors at work. Over the last few days we have seen the gold and silver equities outperform and appear to be leading the metals higher right now. But we need further confirmation on this move.
Gold and silver remain just under some resistance levels so further work remains. Yet the potential for gold to start moving back higher is growing and it would not be surprising to me to see gold extend these gains into next week. Further gains could drastically improve sentiment as general pessimism has made past moves higher unsustainable.” - Peter Spina, www.goldforecaster.com
“August Gold finished up 4.2 at 654.8, 2 off the high and 7.6 up from the low.
July Silver closed up 0.179 at 12.648. This was 0.208 up from the low and equal to the high.
It was impressive for the gold market to shake off the initial weakness Friday morning, but a reversal in the Dollar was more than likely responsible for the bounce in gold prices. However, the market might have been cheered by the strength of the US Non Farm payroll reading and it might have been cheered by the strength in the energy complex. Another source of potential bullishness during the session Friday was news that shares of Newmont Mining corp rose by more than 5% after that company announced it was eliminating its hedge positioning. While some might suggest that a lack of producer hedging is potentially a sign of an impending top from a sentiment perspective, the market seemed to take the news as supportive of gold prices.
After a massive trading range of nearly 44 cents on Friday, the September silver managed to end the week on a significantly more upbeat stance than it began the week. However, it did seem as if the silver market mostly outperformed the gold market and that the silver market was taking part of its cue from the Dollar and part of its direction from the strength in equities and energy prices.”- The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Forget futures -- go back to gold's basics
Germany strives to fend off flood of hungry dollars
Mexican miners strike briefly to stress safety concerns
David Ranson and Penny Russell: Money meltdown
Join GATA at the New Orleans Investment Conference in October
Jim Sinclair: 13 reasons to be terrified of OTC derivatives
Newmont spends $578 million to close gold hedges early
The Statistics:
As of close of business: 7/5/2007
Gold Warehouse Stocks: | 7,228,313 | - 9,928 |
Silver Warehouse Stocks: | 134,791,493 | + 1,702,429 |
Global Gold ETF Holdings
[WGC Sponsored ETF’s]
| Product name | Total Tonnes | Total Ounces | Total Value |
New York Stock Exchange (NYSE) AND Singapore Exchange (SGX) | Streettracks Gold Shares | 464.22 | 14,925,042 | US$ 9,715m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 93.12 | 2,993,757 | US$ 1,958m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 12.28 | 394,402 | US$ 258m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 13.18 | 423,797 | US$ 275m |
Note: Change in Total Tonnes from yesterday’s data: The NYSE/SGZ subtracted 0.15 tonnes.
COMEX Gold Trust (IAU)
Profile as of 7/5/2007 | |
Total Net Assets | $956,758,686 | 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 7/5/2007 | |
Total Net Assets | $1,741,113,300 | Ounces of Silver
in Trust | 138,192,887.000 |
Shares Outstanding | 13,900,000 | Tonnes of Silver
in Trust | 4,298.28 |
Note: Change in Total Tonnes from yesterday’s data: 60 tonnes were added to the trust.
The Stocks:
Newmont’s (NEM) announcement from late yesterday, Meridian Gold’s (MDG) second quarter highlights, and Gold Fields’ (GFI) possible insider trading or market manipulation of it shares were among the big stories in the gold and silver mining industry making headlines Friday.
WINNERS
1. Seabridge | SA +9.05% $25.19 |
2. Almaden | AAU+6.12% $2.67 |
3. AngloGold | AU+5.61% $40.88 |
LOSERS
1. Pacific Rim | PMU -2.61% $1.12 |
2. Metalline | |
Gold Seeker Weekly Wrap-Up: Gold and Silver Gain Nearly 1% and 3% on the Week