-- Posted Tuesday, 10 July 2007 | Digg This Article
| Close | Gain/Loss |
Gold | $662.60 | +$2.10 |
Silver | $12.87 | +$0.18 |
XAU | 146.02 | -0.36% |
HUI | 354.61 | -0.56% |
GDM | 1101.88 | -0.86% |
JSE Gold | 2604.88 | +0.98% |
USD | 80.85 | -0.61 |
Euro | 137.18 | +0.95 |
Yen | 81.88 | +0.79 |
Oil | $72.81 | +$0.62 |
10-Year | 5.038% | -0.121 |
T-Bond | 107.65625 | +1.1875 |
Dow | 13501.70 | -1.09% |
Nasdaq | 2639.16 | -1.16% |
S&P | 1510.12 | -1.42% |
The Metals:
Gold fell a few dollars in Asia, found slight gains in London, and rose near $665 to find near 1% gains by late morning in New York before it fell back off a bit into the close, but it still ended with a gain of 0.32%. After underperforming gold yesterday, silver outperformed today and rose near $13.00 before it also fell off a bit into the close, but it still ended with a healthy gain of 1.42%.
Euro gold fell near €482 on euro strength, platinum lost $4 to $1,310, palladium lost $5 to $365, and copper fell nearly 5 cents to about $3.59.
Gold and silver equities dipped slightly at the open and rose slightly midday, but they then fell back off into the close and ended with roughly 0.5% losses.
The Economy:
Report | For | Reading | Expected | Previous |
Wholesale Inventories | May | 0.5% | 0.4% | 0.3% |
Bernanke spoke about inflation and noted that expectations about inflation are better anchored than in the past, but are not perfectly anchored. Overall, his comments were largely academic about how inflation is evaluated and had little impact on the markets with no specific economic predictions being given. There are no major economic reports due out tomorrow.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil fell in early trade, but it found decent gains by the close on short covering as a third U.S. Navy carrier headed towards the Persian Gulf and raised worries over Iran. Refinery outages in the U.S. also brought up supply worries ahead of tomorrow’s inventory reports.
The U.S. dollar index dropped to a new record low versus the euro and to a new 2 and ½ year low overall as treasuries rose markedly on subprime worries in the U.S. and on the world interest rate outlook in general.
The Dow, Nasdaq, and S&P fell as D.R. Horton, Home Depot, and Sears all pointed towards a poor housing market as the reason for decreased sales and poor earnings. Higher oil prices were blamed for a second round of selling late in the day as the markets seemed to get no help from the fact that interest rates fell rather noticeably for the second day in a row.
Among the big names making news in the market today were D.R. Horton, BHP and Alcoa, Activision, Home Depot, Sears, and Pepsi Bottling.
The Commentary:
“The funds and the physical market are turning to the long side too. At the end of this week we saw investment demand return and take 10 tonnes in the States. The Central Banks of Europe sold only 3 tonnes of gold last week and have not picked up the pace so far this week.
With the $ now falling through the $1.37:€ level we are on the threshold of seeing a break down of the $. Add to this the oil price looks like staying well into the mid $70’ and the future of the oil price higher than this. So we are seeing the underlying fundamentals affecting the short-term moves as well now.”- Julian D.W. Phillips, www.goldforecaster.com
“August Gold finished up 1.9 at 664.4, 2.6 off the high and 2.7 up from the low.
September Silver closed up 0.155 at 12.975. This was 0.09 up from the low and 0.095 off the high.
The gold market started out on a firm footing and at times managed to reach the highest level since June 7th. Initially the gold market seemed to be lifted by the surprise expansion in the Chinese trade surplus but weakness in the Dollar probably played a role in the early rally. In fact, early in the session, the equity market was only marginally weaker, oil prices were very firm and the market was fearful of inflationary dialogue from the Fed Chairman. However later in the session the equity market began to slide aggressively and the dialogue from the Fed was anything but hawkish. Therefore, it wasn't surprising for the August gold contract to have fallen back from the early highs but there was apparently enough bullish information to generally leave the bull camp in control.
The silver market actually held up markedly better than the gold market, especially when one considers that copper and platinum prices were under pressure for most of the session. Certainly the silver market was being lifted by the sagging Dollar, but with the Chinese trade surplus soaring, corporate earnings soft and energy prices rising sharply, it is possible that some buying interest in silver was flight to quality interest. In the end, the silver and gold markets clearly diverged from the action in platinum and copper and that would seem to suggest that the issue driving prices upward was financially orientated.”- The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
New French president insists on more inflation in European Union
David Vaughn: Forget the gold price!
Bank of Canada study proposed eliminating penny
The Statistics:
As of close of business: 7/9/2007
Gold Warehouse Stocks: | 7,211,868 | + 47,650 |
Silver Warehouse Stocks: | 133,995,396 | - 1,128,072 |
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 | 481.15 | 15,469,332 | US$ 10,228m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 93.11 | 2,993,624 | US$ 1,985m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 12.28 | 394,385 | US$ 262m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 13.18 | 423,778 | US$ 280m |
Note: Change in Total Tonnes from yesterday’s data: The NYSE/SGX added 7.7 tonnes after adding 9.23 tonnes from Friday to Monday.
COMEX Gold Trust (IAU)
Profile as of 7/9/2007 | |
Total Net Assets | $974,571,901 | 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 7/9/2007 | |
Total Net Assets | $1,760,366,041 | Ounces of Silver
in Trust | 138,192,887.000 |
Shares Outstanding | 13,900,000 | Tonnes of Silver
in Trust | 4,298.28 |
Note: No change in Total Tonnes from yesterday’s data.
The Stocks:
Rubicon’s (RBY) exploration activities released late yesterday, Freeport’s (FCX) debt reduction, Almaden’s (AAU) exploration update, IAMGOLD’s (IAG) drill results, Great Basin’s (GBN) Second Decline Amendment, Taseko’s (TGB) mine expansion, U.S. Silver’s (USA.V) mine acquisition, Silvercorp’s (SVM.TO) exploration joint venture, Hecla’s (HL) new Corporate Development V.P., and MAG Silver’s (MAG.V) drill results were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Richmont | RIC +2.91% $2.83 |
2. Vista Gold | VGZ +2.20% $5.10 |
3. Almaden | AAU+1.86% $2.73 |
LOSERS
1. Entree | EGI-15.27% $2.94 |
2. Seabridge | SA -10.3% $23.70 |
3. Nevsun | NSU -7.60% $2.43 |
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:
Raven Gold Corp. is pleased to announce today, they will commence general exploration at La Currita, Mexico, within the next 21 days. - More
- July 10, 2007 | Item | E-mail
Centerra Gold 2007 Second Quarter Conference Call and Webcast - "Centerra Gold Inc. (Toronto:CG.TO - News) invites investors and the media to join its second quarter conference call and web cast on Monday, July 30, 2007 at 11:00 a.m. Eastern time." More
- July 10, 2007 | Item | E-mail
African Gold Group, Inc: KB07-73 Intersects 38.20 Meters of 1.93 g/t Au, Including 6.5 Meters of 9.39 g/t Au at Kobada, Mali - More
- July 10, 2007 | Item | E-mail
Yankee Hat Minerals Closes Non Brokered Private Placement, Appoints Brad Kitchen President - More
- July 10, 2007 | Item | E-mail
Forsys Signs Agreement for Spinoff of Non Uranium Assets; Subsidiary Announces $15 Million Financing - More
- July 10, 2007 | Item | E-mail
Freeport-McMoRan Copper & Gold Inc. Announces Additional Debt Reduction and Refinancing of Term Loan - "Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX - News) announced today that it has reduced its senior secured term debt from $4.4 billion at March 31, 2007, to $2.45 billion at June 30, 2007, and has refinanced its term debt to achieve interest cost savings and improved terms. FCX established a new $2.45 billion Term Loan A and used the proceeds to repay fully amounts borrowed under its Term Loan B. Interest cost savings associated with this transaction approximate 0.75 percent per annum." More
- July 10, 2007 | Item | E-mail
Gryphon Gold Conference Call Re: Nevada Eagle Resources LLC - More
- July 10, 2007 | Item | E-mail
Energy Metals Enters Agreement With Anadarko Land Corp. - More
- July 10, 2007 | Item | E-mail
Almaden Minerals Ltd.: Update of Caballo Blanco Exploration Program - "Almaden (Toronto:AMM.TO - News)(AMEX:AAU - News) has completed a property wide exploration program on the Caballo Blanco project, Mexico. This program was managed by Almaden and commenced prior to forming an option agreement with Canadian Gold Hunter Corp. ("CGH"). CGH can acquire a 70% interest in the property (see Almaden news release of April 17, 2007). Future work on the Caballo Blanco project will be managed by CGH." More
- July 10, 2007 | Item | E-mail
Copper Ridge farms out Yukon Olympic IOCG property - More
- July 10, 2007 | Item | E-mail
Vantex Identifies Three New Gold Zones on Guillet
Gold Seeker Closing Report: Gold and Silver Gain For the Third Straight Session; Streettracks Adds Nearly 17 Tonnes in Two Days