-- Posted Tuesday, 7 August 2007 | Digg This Article
| Close | Gain/Loss |
Gold | $670.90 | -$0.50 |
Silver | $13.05 | +$0.08 |
XAU | 142.84 | +0.85% |
HUI | 335.42 | -0.12% |
GDM | 1056.25 | +0.30% |
JSE Gold | 2240.98 | -3.88% |
USD | 80.56 | +0.23 |
Euro | 137.50 | -0.42 |
Yen | 84.74 | +0.19 |
Oil | $72.42 | +$0.36 |
10-Year | 4.743% | +0.012 |
T-Bond | 110.1875 | UNCH |
Dow | 13504.30 | +0.26% |
Nasdaq | 2561.60 | +0.56% |
S&P | 1476.71 | +0.62% |
The Metals:
Gold traded mostly slightly lower in Asia and London before it furthered its losses in early New York trade to as low as $665.80 by about 9:30AM EST, but it then rallied back higher for most of the rest of trade and ended with a loss of just 0.07%. Silver dropped to $12.88 in early morning New York trade, but it then shot higher between about 9:30 and 11AM, remained near its high into the close, and ended with a gain of 0.62%. At the time of writing, both metals are trading slightly higher from their close in reaction to the fed’s statement.
Euro gold rose over €488, platinum lost $11 to $1,281, palladium lost $3 to $358, and copper rose roughly 7 cents to about $3.65.
Gold and silver equities fell about 2% at the open, but they then rallied back higher for most of the rest of trade and ended mixed and near unchanged.
Central banks report slowdown in gold sales Resource Investor
The Economy:
Report | For | Reading | Expected | Previous |
Productivity | Q2 | 1.8% | 2.0% | 0.7% |
FOMC Statement | 8/7 | 5.25% | 5.25% | 5.25% |
Consumer Credit | June | $13.2B | $6.0B | $15.9B |
Productivity came in less than expected and raised inflation worries as a “measure of wages and benefits increased at a 2.1 percent pace, more than anticipated, and climbed 4.5 percent in the 12 months ended in June.”
The fed’s statement noted volatility in financial markets in recent weeks, a housing market correction still ongoing, an economy that continued to expand at a moderate pace, that downside risks to growth have increased somewhat, and that readings on core inflation improved moderately in recent months. However, a sustained inflation moderation easing has yet to take place. Ultimately, the fed’s predominant policy concern remains that inflation “will fail to moderate as expected” and while they did add some comments on risks to economic growth, they did not make a big change towards a more neutral stance of leaving the door open for a possible interest rate cut soon as many had hoped for.
Tomorrow at 10AM EST brings the Wholesale Inventories report for June expected at 0.4%.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil ended slightly higher on refinery problems after early losses on a mixed EIA demand forecast as traders also prepared for tomorrow’s inventory reports.
The U.S. dollar index bounced higher from yesterday’s new 15 year low before the fed’s statement and remained slightly higher after the fed as they did not imply an interest rate cut soon, but gains did moderate as the fed did recognize some concerns.
Treasuries ended near unchanged on the fed’s mixed statement.
The Dow, Nasdaq, and S&P opened markedly lower before they rallied to find slight gains before the fed’s statement, but they dropped back near their lows soon after the fed’s statement as the fed did not move their stance closer to a potential ease in interest rates as most had hoped. However, all three indices rallied back higher to find moderate gains by the close as the fed at least acknowledge recent volatility and risks to economic growth.
Among the big names making news in the market today were Xstrata and Eland Platinum, Bear Stearns, CIT Group, Tyco, Emerson Electric, Harrah’s, El Paso, and Duke Energy.
The Commentary:
“December Gold finished down 1 at 682.3, 0.7 off the high and 4.8 up from the low.
September Silver closed up 0.062 at 13.095. This was 0.165 up from the low and 0.055 off the high.
While the gold market managed to reject a large portion of the initial slide in prices on Tuesday, it was clear that the gold market was not lifted in the wake of the FOMC statement or that the gold market was going to see much support from favorable equity market action. In fact, just ahead of mid session the gold market didn't seem to care that the stock market was forging some pretty impressive gains but that might have been the result of strength in the Dollar. In the end, the FOMC statement didn't seem to offer any new evidence that the sub-prime loan situation was going to end soon and that might have left a cloud hanging over the gold market. However, the Fed statements did seem to provide some support to the Dollar and that seemed to keep the gold market off balance.
With the silver market easily outperforming the gold market throughout most of the action Tuesday, one might suggest that silver was set to track closer to copper than to gold. Initially it seemed as if strength in the equity market was serving to pull up silver prices, but even after the mid morning equity market rally fizzled, the silver market managed to hold onto its gains. Therefore, one might suggest that silver was benefiting Tuesday from a slight abatement of the patently bearish physical commodity market issues that were present on Monday.” - The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Chinese scholar warns U.S. to lay off currency issue
China threatens 'nuclear option' of dollar sales
MineWeb: Spain's central bank sells another 25 tonnes
Mike Kosares: Disturbing trends make the case for gold
The Statistics:
As of close of business: 8/6/2007
Gold Warehouse Stocks: | 7,151,958 | - |
Silver Warehouse Stocks: | 133,375,666 | +597,868 |
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 | 509.60 | 16,384,063 | US$ 11,001m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 94.64 | 3,042,686 | US$ 2,044m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 12.48 | 400,760 | US$ 270m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 14.28 | 459,251 | US$ 308m |
Note: Change in Total Tonnes from yesterday’s data: The NYSE/SGX added 3.08 tonnes.
COMEX Gold Trust (IAU)
Profile as of 8/6/2007 | |
Total Net Assets | $1,003,792,572 | Ounces of Gold
in Trust | 1,494,949.081 |
Shares Outstanding | 15,100,000 | Tonnes of Gold
in Trust | 46.50 |
Note: No change in Total Tonnes from yesterday’s data.
Silver Trust (SLV)
Profile as of 8/6/2007 | |
Total Net Assets | $1,854,968,552 | Ounces of Silver
in Trust | 141,612,134.500 |
Shares Outstanding | 14,250,000 | Tonnes of Silver
in Trust | 4,404.63 |
Note: No change in Total Tonnes from yesterday’s data.
The Stocks:
New Gold’s (NGD) drill results, Harmony’s (HMY) continued share price reaction to yesterday’s earnings forecast and CEO resignation announcement, Bear Creek’s (BCM.V) drill results, Apex Silver’s (SIL) production, and First Majestic’s (FR.V) safety award were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Royal Gold | RGLD +7.15% $29.38 |
2. Allied Nevada | ANV +6.96% $5.84 |
3. Taseko Mines | TGB +6.90% $5.42 |
LOSERS
1. Harmony | HMY-14.25% $9.45 |
2. Golden Star | GSS -8.40% $3.27 |
3. Nevsun | NSU -4.10% $2.34 |
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:
Cadiscor Resources Announce Modifications to Private Placement Financing - More
- August 07, 2007 | Item | E-mail
Spirit Exploration, Inc. Hires Auditors, Plans on Becoming a Fully Reporting Issuer - More
- August 07, 2007 | Item | E-mail
Nuinsco Reports Q2 2007 Financial Results, Provides Summary of Activities - More
- August 07, 2007 | Item | E-mail
MacMillan Gold Completes Phase 1 La Mus Drill Program - More
- August 07, 2007 | Item | E-mail
Gemini Explorations Inc Reports La Planada Gold Project Drill Program to Commence - More
- August 07, 2007 | Item | E-mail
Young-Shannon Notes Additional Information with Respect to Its Press Release of July 26, 2007 - More
- August 07, 2007 | Item | E-mail
SLAM Exploration grants options - More
- August 07, 2007 | Item | E-mail
100% Completion of the 95% Mandatory Buy Back, Chill Lifted on Deposits, CUSIP Number & Stock Symbol To Remain The Same, Pearl Asian Mining Announces - More
- August 07, 2007 | Item | E-mail
Goldrea Resources Corp. and Molycor Gold Corp.: Mineralization Intersected at Crowrea Moly Property - More
- August 07, 2007 | Item | E-mail
Gold Seeker Closing Report: Gold and Silver End Mixed Before Fed; Gain Slightly After