-- Posted Thursday, 12 July 2007 | Digg This Article
| Close | Gain/Loss |
Gold | $666.70 | +$6.30 |
Silver | $13.09 | +$0.24 |
XAU | 150.77 | +3.32% |
HUI | 357.06 | +1.13% |
GDM | 1122.80 | +2.33% |
JSE Gold | 2647.10 | +2.25% |
USD | 80.64 | -0.14 |
Euro | 137.86 | +0.25 |
Yen | 81.70 | -0.19 |
Oil | $72.50 | -$0.06 |
10-Year | 5.116% | +0.036 |
T-Bond | 106.84375 | -0.34375 |
Dow | 13861.73 | +2.09% |
Nasdaq | 2701.73 | +1.88% |
S&P | 1547.70 | +1.91% |
The Metals:
Gold rose over a dollar in Asia, added another couple of dollars to its gains in London, and rose over 1% on the day by midmorning in New York before it fell back off slightly in the last couple hours of trade, but it still ended with a gain of 0.95%. Silver rose about 5 cents in Asia and London before it rose throughout trade in New York and ended near its high with a gain of 1.87%.
Euro gold rose to about €484, platinum gained $15 to $1,315, palladium gained $1 to $367, and copper fell roughly 4 cents to about $3.55.
Gold and silver equities had a mixed performance as the XAU rose about 3% early and remained near its highs into the close, but the HUI and GDM were held back by a poor performance by EGO (see more below) and ended with a little over 1% and 2% gains.
The Economy:
Report | For | Reading | Expected | Previous |
Initial Claims | 7/07 | 308K | 315K | 320K |
Trade Balance | May | -$60.0B | -$60.0B | -$58.7B |
Treasury Budget | June | $27.5B | $30.0B | $20.5B |
Also making economic news today was a report showing an 87% increase in foreclosures in June compared to a year ago. Tomorrow at 8:30AM EST brings Export and Import Prices for June and Retail Sales for June expected at 0.0%. Excluding autos, sales are expected at 0.2%. At 10AM is the Business Inventories report for May expected at 0.3% and Michigan Sentiment for July expected at 86.0.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil rose to new 11-month highs above $73 in the U.S. and above $76 for Brent crude in London in early trade on renewed worries in Nigeria, but it fell back off near unchanged by the close on word of refineries coming back online in the U.S.
The U.S. dollar index fell to another record low versus the euro on continued concerns about the U.S. mortgage market.
Treasuries fell as traders pulled money out of bonds and put it into stocks.
The Dow, Nasdaq, and S&P rose substantially on more takeover activity and individual retail sales reports that were not as bad as expected. The Dow and S&P closed at new record highs and the Nasdaq closed at a new 6 and ½ year high.
Among the big names making news in the market today were Wal-Mart, J.C. Penny, Macy’s, Rio Tinto and Alcan, Marriot, and Sony Ericsson.
The Commentary:
“August Gold finished up 6.2 at 668.3, 2.7 off the high and 4 up from the low.
September Silver closed up 0.205 at 13.18. This was 0.14 up from the low and 0.03 off the high.
With the Euro climbing to record high and the Dollar continuing to slump, the gold market certainly got a lift off the currency action today. The push through some key levels also seemed to attract new buyers to gold. Early in the session gold was also supported by sharp gains in crude oil. Although energies turned lower later in the session, it was impressive gold was able to hold on to most of the session's gains. We suspect the sharp upward price moves in other commodities particularly grains and hogs are promoting "agflation" concerns among gold traders. The on-going problems in the sub-prime mortgage market are likely attracting investors to gold on a flight to quality basis. Moody's Investor Services cut ratings on securities backed by sub-prime mortgages today. Also gold may have been supported by news that a Canadian metals mining company was forced to close a mine in Turkey and news South African gold union workers rejected the latest pay offer. In another bullish story, Qatar's Central Bank quadrupled their gold holdings between January and April this year as part of a plan to diversify foreign exchange reserves out of Dollars. News that South African gold production rose 1.3% in May from year ago seemed to have little impact.
It is not too surprising to see the strong upward extension in September silver given the strong leadership from gold and a push to fresh lows for the Dollar. However, it is impressive silver was able to trade sharply higher in the face of weak action in copper this session. With stellar gains seen in the stock market, the positive macro economic outlook is certainly giving silver bulls another buying incentive. Since the trade appears to be embracing a bullish outlook, news of a possible high-grade gold and silver find in Nevada seemed to be completely discounted.”- The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Historic Bolivian silver mine at risk of collapse
James Turk: Bernanke explains why Fed must rig gold price
Australian hedge fund warns about withdrawals
Russians trading dollars for their country's own currency
National Public Radio cites digital gold currency
The Statistics:
As of close of business: 7/11/2007
Gold Warehouse Stocks: | 7,129,799 | -32,056 |
Silver Warehouse Stocks: | 135,182,866 | +1,187,470 |
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$ 10,255m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 93.11 | 2,993,557 | US$ 1,999m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 12.28 | 394,376 | US$ 264m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 13.43 | 431,683 | US$ 286m |
Note: Change in Total Tonnes from yesterday’s data: The JSE added 0.25 tonnes.
COMEX Gold Trust (IAU)
|
Profile as of 7/11/2007 | |
Total Net Assets | $974,255,378 | 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 7/11/2007 | |
Total Net Assets | $1,802,211,365 | Ounces of Silver
in Trust | 139,186,961.000 |
Shares Outstanding | 14,000,000 | Tonnes of Silver
in Trust | 4,329.20 |
Note: Change in Total Tonnes from yesterday’s data: 30.92 tonnes were added to the trust.
The Stocks:
Eldorado’s (EGO) ordered mine shutdown, Great Basin’s (GBN) feasibility study, Anatolia’s (ANO.TO) drill results, Allied Nevada’s (ANV) increased private placement, Newmont’s (NEM) priced offering, and Valencia’s (VVI.V) acquisition of Silver Standard’s (SSRI) remaining 20% interest in the Cachinal silver project were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Nevsun | NSU +6.67% $2.72 |
2. Arizona Star | AZS+6.04% $11.24 |
3. Rubicon | RBY +5.91% $2.15 |
LOSERS
1. Eldorado | EGO-24.71% $5.18 |
2. Orezone | OZN -2.59% $1.88 |
3. Minco Gold | MGH -2.24% $1.31 |
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:
Antare's first deep drill hole confirms porphyry Cu-Mo-Au discovery at Haquira East - More
- July 12, 2007 | Item | E-mail
Alhambra Resources Ltd. - Correction to News Release Dated July 12, 2007 - Proposed Corporate Reorganization - More
- July 12, 2007 | Item | E-mail
Geoinformatics Announces the Startup of Drilling on the Whistler Project - More
- July 12, 2007 | Item | E-mail
San Gold Extends High Grade "93" Vein at Rice Lake - More
- July 12, 2007 | Item | E-mail
Houston Lake Closes $345,000 First Tranche of a Private Placement Financing - More
- July 12, 2007 | Item | E-mail
Raven Gold Corp's Detailed "Phase 1 Exploration Program," Commissioned at La Currita - More
- July 12, 2007 | Item | E-mail
Sparrowtech Terminates Negotiations - More
- July 12, 2007 | Item | E-mail
Drilling at Inter-Citic's Dachang Gold Project Intersects 58m Containing 5.3 GPT Gold North of the DMZ - More
- July 12, 2007 |
Gold Seeker Closing Report: Gold and Silver Gain Nearly 1% and 2% While Dow Soars