-- Posted Tuesday, 21 August 2007 | Digg This Article
| Close | Gain/Loss |
Gold | $656.00 | +$0.50 |
Silver | $11.44 | -$0.27 |
XAU | 132.89 | +0.70% |
HUI | 314.10 | +0.46% |
GDM | 973.35 | +0.28% |
JSE Gold | 2204.52 | -0.70% |
USD | 81.48 | +0.10 |
Euro | 134.66 | -0.10 |
Yen | 87.50 | +0.37 |
Oil | $69.47 | -$1.65 |
10-Year | 4.590% | -0.044 |
T-Bond | 110.625 | +0.375 |
Dow | 13090.86 | -0.23% |
Nasdaq | 2521.30 | +0.51% |
S&P | 1447.12 | +0.11% |
The Metals:
Gold rose a few dollars in Asia before it fell back near unchanged in London and traded mostly slightly higher in New York, but it fell back near its lows of the session by the close and ended with a gain of just 0.08%. Silver dropped near $11.50 in London before it rebounded in New York and saws gains over $11.80 by about 9AM EST, but it then fell back off for the rest of trade and ended near its low with a notable loss of 2.31%.
Euro gold fell near €487, platinum gained $1 to $1,244, palladium lost $11 to $317, and copper fell slightly to about $3.20.
Gold and silver equities remained in a tight range near unchanged throughout the day and ended with small gains.
The Economy:
There were no major economic reports today, but there were several comments from various officials about recent credit problems that had many contemplating about a fed interest rate cut. Treasury Secretary Paulson was interviewed by CNBC and urged patience about liquidity returning to normal over time. Federal Reserve Bank of Richmond President Jeffrey Lacker noted at a luncheon that “financial market volatility, in and of itself, doesn't require a change in the target federal funds rate.” Senator Dodd also spoke after meeting with Paulson and Bernanke today and noted that Bernanke would use “all of the tools at his disposal.” In the end they were mixed and ultimately unclear comments about what the fed may do between now and its next scheduled meeting on September 18th.
Also making news was a report showing that “foreclosure filings reported in the U.S. last month jumped 93 percent from July of 2006 and rose 9 percent from June.” There are no major economic reports due out tomorrow.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil fell under $70 as energy companies reported that any damage to infrastructure done by now weakening Hurricane Dean was minimal at worst.
The U.S. dollar index fell in early trade on the outlook for a rate cut by the fed, but it rebounded to close higher after comments from several officials indicated that any moves from the fed may not happen until their next scheduled meeting on September 18th.
The flight to quality in short term treasuries continued today, but some gains were pared after an auction for one month bills drew worse than expected demand.
The Dow, Nasdaq, and S&P remained mixed and near unchanged throughout the day as traders reacted to mixed comments from several officials.
Among the big names making news in the market today were Saks, BJ’s, Buffett and Countrywide, Target, Staples, and American Eagle.
The Commentary:
“Gold is standing its ground well after the horrendous financial tsunami that swept through the credit markets last week. All is not over on that front we believe. It all depends on whether confidence was calmed or crippled. After all, the problems lay with the Investors, not investments.
We continue to believe that the consumer remains the driver of the U.S. economy as he has done over the last few years. But he is weighed down and not able to turn back the wave of credit criteria tightening, which led to the freezing of the credit markets last week. It is clear that the Fed will have to convince the consumer as well as the financial institutions, that all is well with lower interest rates, or his spending restraint will kill growth.
B.B. of the Fed knows that and while he has started to ease interest rates [mainly for the financial institutions], he needs to convince the consumer with lower rates or panic will hit again.
Either way, on the back of the beginning of the gold season opening again, gold is set to be strong and a place to protect oneself from the excessive volatility we have just seen. The support has shown its strength already.”- Julian D.W. Phillips, www.goldforecaster.com
“December Gold finished down 0.3 at 666.2, 2.9 off the high and 2.2 up from the low.
September Silver closed down 0.225 at 11.51. This was 0.05 up from the low and 0.27 off the high.
While the gold market seemed to dodge the pressure seen in a host of physical commodity markets on Tuesday, the action in the market on Tuesday was anything but impressive. While the Press continues to suggest that gold is seeing periodic safe haven buying, it would still seem like the gold market is still tightly correlated with the direction in the equity markets. While the gold market was still tracking the ebb and flow of the US Dollar, it would seem like many gold traders raised their expectations of further slowing in the wake of the dialogue from Senator Dodd. For the time being the trade can talk above the potential for flight to quality buying of gold off the financial crisis, but the price action in gold seems to be suggesting that a resumption of the aggressive selling in the equity market would more than likely put pressure on gold prices again.
With the September silver contract failing to hold above the critical chart level of $11.50 during the trade Tuesday, it would seem like the market continues to fret over the prospect of further slowing off the sub-prime threat. With a key US Senator suggesting that the US Treasury wasn't fully aware of the magnitude of the current US housing crisis, it is not surprising to see a host of physical commodities come under renewed selling pressure. In fact, with the oil market sharply lower and platinum prices even lower in the face of a physical supply threat, it would seem like sellers are flush throughout the commodities marketplace.”- The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Borrower draws emergency loan from Bank of England
Wall Street Journal: Fed fails so far in bid to reassure anxious investors
SEC charges Sentinel with fraud for commingling, misappropriating, leveraging
Ambrose Evans-Pritchard: Blame central banking, not capitalism
Goldman strategist predicts three rate cuts by year-end
Fed fails to calm money markets as commercial paper dump continues
Most U.S. primary dealer banks expect fed funds rate cut soon
What's in YOUR wallet? Do you even HAVE one now?
The Statistics:
As of close of business: 8/20/2007
Gold Warehouse Stocks: | 7,087,953 | - 5,570 |
Silver Warehouse Stocks: | 134,256,622 | - |
Global Gold ETF Holdings
[WGC Sponsored ETF’s]
| Product name | Total Tonnes | Total Ounces | Total Value |
New York Stock Exchange (NYSE) AND Singapore Exchange (SGX) | Streettracks Gold Shares | 514.21 | 16,532,431 | US$ 10,901m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 88.48 | 2,844,824 | US$ 1,870m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 12.71 | 408,362 | US$ 269m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 14.28 | 459,181 | US$ 302m |
Note: Change in Total Tonnes from yesterday’s data: The NYSE/SGX added 7.07 tonnes to reach a new record high.
COMEX Gold Trust (IAU)
Profile as of 8/20/2007 | |
Total Net Assets | $997,765,209 | Ounces of Gold
in Trust | 1,519,696.371 |
Shares Outstanding | 15,350,000 | Tonnes of Gold
in Trust | 47.27 |
Note: No change in Total Tonnes from yesterday’s data.
Silver Trust (SLV)
Profile as of 8/20/2007 | |
Total Net Assets | $1,691,773,738 | 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:
Aurelian’s (ARU.TO) drill results, Gold Fields’ (GFI) loss of Mike Prinsloo to Banro (BAA), Fortuna’s (FVI.V) liquidity and drill results, Silver Dragon’s (SDRG.OB) Memorandum of Understanding, Metalline’s (MMG) project status, MAG’s (MAG.V) land purchase with Penoles, and Excellon’s (EXN.V) drill results were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Metalline | MMG+9.43% $2.67 |
2. Solitario | XPL +6.53% $4.73 |
3. New Gold | NGD+4.03% $4.90 |
LOSERS
1. Cardero | CDY -4.26 $1.36 |
2. Vista Gold | VGZ-4.05% $4.03 |
3. Rubicon | RBY -4.02% $1.67 |
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:
Wildcat Announces Non-Brokered Private Placement - More
- August 21, 2007 | Item | E-mail
Royal Acquisitions and Development, Inc. Announces Multi-Million Dollar Purchase - More
- August 21, 2007 | Item | E-mail
Palladon Pours Concrete for Substation Foundation and Announces Investor Conference Call - More
- August 21, 2007 | Item | E-mail
Cabo to drill 6,700 meters for New Millennium Capital at Kemag Iron Ore project in Quebec - More
- August 21, 2007 | Item | E-mail
Tagish Corporate Progress Report - More
- August 21, 2007 | Item | E-mail
PolyMet Expands NorthMet Management Team - More
- August 21, 2007 | Item | E-mail
Baja Mining Granted Essential Land Use Permits - More
- August 21, 2007 | Item | E-mail
Sierra Intersects 68 Metres Grading 0.82 gm/t Gold at Cerro Colorado Mine, Mexico - More
- August 21, 2007 | Item | E-mail
Sprott Asset Management Controls 15.6% of Canadian Zinc Corporation - More
- August 21, 2007 | Item | E-mail
UEX Extends Uranium Mineralization at Black Lake Hole BL-140 Intersects 0.67% U(3)O(8) over 3.0 metres, Including 1.58% U(3)O(8) over 1.0 metres - More
- August 21, 2007 | Item | E-mail
Drilling Begins on Fiji Claims - More
- August 21, 2007 | Item | E-mail
Amerigo Has No Commercial Paper Exposure - More
- August 21, 2007 |
Gold Seeker Closing Report: Gold and Silver End Mixed; Streettracks Rises To New High