-- Posted Wednesday, 5 September 2007 | Digg This Article
| Close | Gain/Loss |
Gold | $680.90 | -$1.40 |
Silver | $12.16 | -$0.11 |
XAU | 143.64 | -0.95% |
HUI | 335.13 | -0.37% |
GDM | 1040.47 | -0.67% |
JSE Gold | 2380.29 | +0.48% |
USD | 80.61 | -0.17 |
Euro | 136.54 | +0.42 |
Yen | 86.88 | +0.82 |
Oil | $75.73 | +$0.65 |
10-Year | 4.473% | -0.085 |
T-Bond | 112.50 | +0.84375 |
Dow | 13305.47 | -1.07% |
Nasdaq | 2605.95 | -0.92% |
S&P | 1472.29 | -1.15% |
The Metals:
Gold dropped to find over $4 losses by midday in London, but it then rebounded in late morning trade in New York and traded just slightly lower for the rest of the day before it closed with a loss of 0.21%. Silver dropped to as low as $12.08 by early morning in New York before it also rebounded higher into the close, but it still ended with a loss of 0.90%.
Euro gold fell to about €499, platinum lost $1 to $1,268, palladium lost $2 to $330, and copper fell roughly 4 cents to about $3.29.
Gold and silver equities traded mostly slightly lower and ended with minimal losses.
The Economy:
Report | For | Reading | Expected | Previous |
Pending Home Sales | July | -12.2% | -2.0% | 5.0% |
Also making news this morning was the ADP’s private sector jobs report showing an addition of just 38,000 jobs in August which is the slowest in four years. The fed’s Beige Book noted that the effects of the credit crisis in August “were limited” outside of the real estate market.
Tomorrow at 8:30AM EST brings Initial Jobless Claims for 9/01 expected at 330,000 and second quarter Productivity expected at 2.4%. At 10AM is the ISM Services report for August expected at 54.5.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil rose in late trade and ended at a new four week high as traders prepared for tomorrow’s inventory data that is expected to show declines in supplies while most also keep a close eye on new weather in the Gulf of Mexico and any comments from OPEC who is expected to keep output at current levels at their meeting next week.
The U.S. dollar index fell and treasuries rose as poor economic data pushed the yield on the 10-year under 4.5% for the first time since March.
The Dow, Nasdaq, and S&P traded lower after poor home sales and jobs data renewed worries about the economy and the indices then fell further after the fed’s Beige Book characterized recent economic impact from credit problems as limited which reduced hopes for a rate cut at their next meeting.
Among the big names making news in the market today were Apple, MGIC and Radian, Yahoo, and Mattel.
The Commentary:
“December Gold finished down 0.8 at 690.7, 1.5 off the high and 2.9 up from the low.
December Silver closed down 0.093 at 12.355. This was 0.08 up from the low and 0.045 off the high.
The gold market continued to correlate with the daily price action in the equity market. Perhaps even more discouraging to the bull camp in gold is the fact that prices were not supported in the wake of a distinct failure in the dollar. All things considered, the gold market performed rather impressively in the face of a series of troubling economic developments and a significant slide in equity prices. Furthermore, the bull market was not definitively supported in the wake of the Fed Beige Book which seemed to focus on weakness in the housing sector instead of hints of a rate cut. In the end, gold continues to maintain its physical commodity market status with stock prices the primary leading indicator.
While the silver market managed to discount a rekindling of the sub prime crisis, the bull camp could not have been happy with the news flow on Wednesday. In addition to a weak private job survey, a weak private housing index figure and a moderate failure in stock prices, the silver market could have experienced a massive washout. In fact, ongoing weakness in the copper market combined with a deteriorating view on the economy would seem to put a major burden on the bull camp.”- The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Two more bidders for Meridian by Friday, securities commission told
ECB pledges more liquidity boosting if needed
Commercial paper risks are lurking behind Citigroup
No inflation? Rivals quickly match Southwest air fare hike
London banks hoard cash as liquidity crunch worsens
Liquidity crisis grows as Libor rates gap hits 20-year high
Letting euro appreciate risks deflation, Nobel laureate Mundell warns
Ted Butler: Actions speak louder than words
The Statistics:
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 | 515.44 | 16,571,995 | US$ 11,244m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 88.01 | 2,829,548 | US$ 1,932m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 12.71 | 408,294 | US$ 279m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 16.62 | 534,245 | US$ 362m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU)
Profile as of 9/4/2007 | |
Total Net Assets | $1,036,807,049 | 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 9/4/2007 | |
Total Net Assets | $1,669,915,320 | Ounces of Silver
in Trust | 138,135,340.200 |
Shares Outstanding | 13,900,000 | Tonnes of Silver
in Trust | 4,296.49 |
Note: No change in Total Tonnes from yesterday’s data.
The Stocks:
Minco Gold’s (MGH) assay results, Canyon’s (CAU) forward looking strategy, Gammon Gold’s (GRS) analyst tour, Yamana’s (AUY) announcement that Meridian’s (MDG) shareholder rights plan be cease traded, Fortuna’s (FVI.V) drill results, UC Resources’ (UC.V) assay results, Coeur’s (CDE) and Palmarejo’s (PJO.V) filed preliminary assessment report, and Aura Silver’s (AUU.V) progress from its reconnaissance activities were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Allied Nevada | ANV +5.37% $4.32 |
2. Meridian | MDG +4.75% $29.79 |
3. Orezone | OZN +4.49% $1.63 |
LOSERS
1. Entree Gold | EGI -8.87% $2.26 |
2. International Royalty | ROY -6.98% $5.73 |
3. Vista Gold | VGZ -6.31% $4.01 |
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:
Minco Gold Completes Drilling at Yuezhao Occurrence on Yangshan Project - "Minco Gold Corporation (the "Company" or "Minco Gold") (Toronto:MMM.TO - News)(AMEX:MGH - News)(Frankfurt:MI5.F - News) announces assay results from the drill program conducted on its wholly-owned Yangshan Project located in southern Gansu Province in the People's Republic of China (PRC). The project is located in the western end of the Qinling Gold Belt and exhibits identical geology, structure, alteration, and mineralization to the nearby Anba Gold Project." More
- September 05, 2007 | Item | E-mail
Yamana Gold Announces Waiver of Meridian Gold Shareholder Rights Plan - "YAMANA GOLD INC. (Toronto:YRI.TO - News)(NYSE:AUY - News)(LSE:YAU.L - News) today announced that the Ontario Securities Commission, in a decision dated today, ordered that the Meridian Gold Inc. shareholder rights plan be cease traded at 9:00 am Toronto time on September 11, 2007 as per Yamana's request." More
- September 05, 2007 | Item | E-mail
Canstar Update on the Mary March Appeal and McFaulds Lake Properties - More
- September 05, 2007 | Item | E-mail
Laurion Mineral Exploration Inc. issues common shares and purchase warrants to Geoinformatics Exploration Canada Limited - More
- September 05, 2007 | Item | E-mail
Chapleau Resources Ltd. - Regional Structural Association of the Mato Velho and Coringa Gold Mineralization Identified - More
- September 05, 2007 | Item | E-mail
Explor Completes Phase III Drilling Program on the Eastford Lake Gold Project - More
- September 05, 2007 | Item | E-mail
Saturn Minerals Completes Surface Program on Wheelbarrow Property - Drilling to Commence on Silver-Lead-Zinc Targets - More
- September 05, 2007 | Item | E-mail
CORRECTION FROM SOURCE/Canadian Royalties Inc.: Nunavik Nickel Project Exploration Update: Allammaq-A New Discovery - More
- September 05, 2007 | Item | E-mail
Nirek Resources Inc. Acquires Gosselin Gold and Silver Veins - More
- September 05, 2007 | Item | E-mail
Mansfield Minerals Inc.: Investor Relations and Corporate Development Initiative - More
- September 05, 2007 | Item | E-mail
Idaho General Mines Appoints Gregory E. McClain as VP Business Development and Marketing and Andrew Russell as VP of Project Development - More
- September 05, 2007 | Item | E-mail
Robex : Jean Demers replaces Richard Savard on the board - More
- September 05, 2007 | Item | E-mail
Sherwood R
Gold Seeker Closing Report: Gold and Silver Fall Slightly After Yesterday’s Impressive Gains