-- Posted Friday, 10 August 2007 | Digg This Article
| Close | Gain/Loss | On Week |
Gold | $670.40 | +$9.60 | -0.34% |
Silver | $12.79 | +$0.12 | -2.29% |
XAU | 144.33 | +1.18% | +0.42% |
HUI | 346.02 | +1.96% | +1.85% |
GDM | 1077.15 | +1.05% | +0.65% |
JSE Gold | 2274.06 | -1.46% | -9.79% |
USD | 80.70 | -0.07 | +0.64% |
Euro | 136.97 | +0.06 | -0.67% |
Yen | 84.54 | -0.02 | +0.21% |
Oil | $71.47 | -$0.12 | -5.31% |
10-Year | 4.776% | -0.014 | +1.62% |
Bond | 109.3125 | +0.1875 | -1.19% |
Dow | 13239.54 | -0.23% | +0.44% |
Nasdaq | 2544.89 | -0.45% | +1.34% |
S&P | 1453.64 | +0.04% | +1.44% |
The Metals:
Forced margin liquidation and subprime related loss covering that secondarily appeared to impact gold yesterday abated today as gold’s safe haven status reemerged amid continued credit worries that put further significant downward pressure on most other world markets and paper assets.
Gold rose roughly $3 in Asia before it fell back off in London and briefly saw losses under $660 just before the New York open, but it then jumped higher in leaps and bounds between 8AM and 11AM EST and topped $676 ahead of some profit taking into the close that left it with a respectable gain of 1.45%. Silver fell under $12.60 in London before it rose near $13.00 in late morning New York trade, but it also fell back off a bit in the last couple hours of trade and ended over 1% off its high with a gain of 0.95%.
Euro gold rose above €490, platinum gained $3 to $1,272, palladium lost $9 to $350, and copper rose over 6 cents to about $3.64.
Gold and silver equities opened slightly lower as the general markets dived, but they soon rose to find about 2% gains and traded roughly 1-2% higher for the rest of the day.
CoT Reports: Gold | Silver
The Economy:
Report | For | Reading | Expected | Previous |
Import Prices | July | 1.5% | 1.0% | 0.9% |
Import Prices ex-oil | July | 0.2% | - | 0.1% |
Export Prices | July | 0.2% | - | 0.3% |
Export Prices ex-ag. | July | 0.0% | - | 0.2% |
Treasury Budget | July | -$36.3B | -$33.0B | -$33.2B |
Today the fed added another $19 billion in liquidity before the market opened, the most since August 15, 2003, but that was not enough as they added an additional $16 billion an hour and a half into trade at 11AM EST. Then finally around 2PM the fed injected another $3 billion and when added together, the $38 billion injected by the fed today was the largest since 9-14-2001 in an attempt to calm market fears. The ECB added “loaned 61.05 billion euros ($83.6 billion), pumping funds into the banking system for a second day. The ECB added an unprecedented 94.8 billion euros yesterday.”
All of this week’s economic reports:
Next week’s economic highlights include Retail Sales and Business Inventories on Monday, PPI and the Trade Balance on Tuesday, CPI, the NY Empire State Index, Net Foreign Purchases, Industrial Production, and Capacity Utilization on Wednesday, Housing Starts, Building Permits, Initial Jobless Claims, and the Philadelphia Fed on Thursday, and Michigan Sentiment on Friday.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil traded mostly slightly lower on worries over a drop in demand due to slowing economic growth as a result of spreading credit problems, but it ended well off its lows and near unchanged on worries over a developing tropical storm in the Atlantic Ocean.
The U.S. dollar index fell with interest rates while treasuries rose on continued credit concerns.
The Dow had another wild ride today as it initially fell over 200 points at the open on continued credit worries before it rebounded to find a small gain after the fed injected its second round of credit, but it then fell back off and saw over 100 point losses by early afternoon ahead of a rally higher in the last hour of trade that left it near unchanged at the close along with the Nasdaq and S&P.
Among the big names making news in the market Friday were Countrywide, Washington Mutual, TXU, Sallie Mae, First Data, Wyeth, Man Group, and Campbell’s, Hershey, and Wrigley.
The Commentary:
“December Gold finished up 8.8 at 681.6, 5.4 off the high and 9.9 up from the low.
September Silver closed up 0.165 at 12.87. This was 0.2 up from the low and 0.15 off the high.
With the October gold contract suddenly showing moderately aggressive buying interest in the face of further turmoil in the equity markets and the market managing the gains in the face of a mostly sideways day in the US Dollar, one could suggest that gold was indeed seeing flight to quality buying. In other words, the gold market was finally showing its typical safe haven status, after at least a month of quasi deflationary weakness.
It goes without saying that the silver market was probably lifted by a sudden revival of flight to quality interest. With a host of physical metals markets also rising it is possible that the brunt of the rally in silver prices on Friday was actually short covering or perhaps even some speculative buying that was attempting to anticipate the end of the financial market turmoil. However, given the magnitude of the recent washout in the financial markets and the international nature of the problem, it could take more than a simple compacted equity market bounce to signal a real end to the debacle. In the mean time the silver market seemed to be at least partially capable of attracting investment, even if the silver gains were somewhat disappointing when compared to the gains in the gold market on Friday.”- The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Seeking hidden losses, regulators comb books of Wall Street titans
Bernanke was wrong: Subprime contagion is spreading
'Risky' yesterday, gold is 'safe haven' today
ECB's confidence trick won't restore faith in market
No one in Asian financial districts will lack lunch money
Peter Brimelow: What's up with gold?
Step right up in Tokyo and get your money
Somehow Turk gets quoted by Bloomberg on gold price capping
Central bank's aggressive move stuns European markets
European emergency cash injection exceeds amount issued after 9/11
European Commission forbids gold sale by Italy
The Statistics:
As of close of business: 8/9/2007
Gold Warehouse Stocks: | 7,142,094 | - 9,864 |
Silver Warehouse Stocks: | 133346423 | - |
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 | 509.29 | 16,374,170 | US$ 10,848m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 94.63 | 3,042,585 | US$ 2,047m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 12.48 | 400,747 | US$ 270m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 14.28 | 459,241 | US$ 310m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU)
Profile as of 8/9/2007 | |
Total Net Assets | $988,660,551 | 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 8/9/2007 | |
Total Net Assets | $1,837,191,153 | 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:
Quarterly results released today and late yesterday from Crystallex (KRY), Aurizon (AZK), Allied Nevada (ANV), Silver Standard (SSRI), Vista Gold (VGZ), Jaguar (JAG), Gammon Gold (GRS), and Seabridge (SA), Tanzanian Royalty’s (TRE) senior VP appointment, Golden Star’s (GSS) agreement for power capacity, Aurizon’s (AZK) resource increase, and Rio Narcea’s (RNO) tendered shares to Lundin (LMC) were among the big stories in the gold and silver mining industry making headlines Friday.
WINNERS
1. Seabridge | SA +6.12% $30.87 |
2. Northgate |
Gold Seeker Weekly Wrap-Up: Gold and Silver Fall Slightly on the Week, But Miners Gain