-- Posted Wednesday, 19 September 2007 | Digg This Article
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| Close | Gain/Loss |
Gold | $720.70 | +$5.70 |
Silver | $12.93 | +$0.16 |
XAU | 166.15 | +0.83% |
HUI | 383.63 | +1.40% |
GDM | 1194.54 | +1.01% |
JSE Gold | 2712.40 | +3.08% |
USD | 79.32 | +0.10 |
Euro | 139.68 | +0.27 |
Yen | 86.21 | -0.33 |
Oil | $81.93 | +$0.42 |
10-Year | 4.524% | +0.044 |
T-Bond | 111.78125 | -1.00 |
Dow | 13815.56 | +0.55% |
Nasdaq | 2666.48 | +0.56% |
S&P | 1529.03 | +0.61% |
The Metals:
Gold and silver both jumped over 1% higher in after hours trade yesterday in reaction to the fed’s policy announcement. Gold then traded in a range of about $720-$725 in Asia, London, and New York today before it ended near the bottom of that range, but it still ended with a respectable gain of 0.80%. Silver traded around the $13.00 level for most of world trade before it also ended near its low of the session, but it still ended with a gain of 1.25%.
Euro gold fell under €517, platinum gained $7 to $1,307, palladium gained $3 to $332, and copper gained over 13 cents to about $3.58.
Gold and silver equities rose over 2% in the first half hour of trade before they fell back off into the close, but they still ended with about 1% gains.
The Economy:
Report | For | Reading | Expected | Previous |
CPI | Aug | -0.1% | 0.0% | 0.1% |
Core CPI | Aug | 0.2% | 0.2% | 0.2% |
Housing Starts | Aug | 1331K | 1345K | 1367K |
Building Permits | Aug | 1307K | 1350K | 1389K |
Tomorrow at 8:30AM EST brings Initial Jobless Claims for 9/15 expected at 320,000. At 10AM is the Leading Indicators report for August expected at 0.0%, and at noon is the Philadelphia fed survey for September expected at 2.5.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil rose to a new record high above $82 in further reaction to yesterday’s rate cut before it fell back off a bit in reaction to a mixed inventory report, but it still ended with a gain of about 0.5%. Oil inventories fell a larger than expected 3.8 million barrels, gasoline inventories surprisingly built 400,000 barrels, distillates built 1.5 million barrels, and refinery utilization fell 0.9% to 89.6%.
After getting slammed in reaction to fed action yesterday and dropping to as low as 79.09 overnight, the U.S. dollar index rebounded from new 15 year lows today on hopes that lower interest rates will help the U.S. economy.
Treasuries fell as the Dow, Nasdaq, and S&P continued yesterday’s advance on optimism over yesterday’s larger than expected rate cut.
Among the big names making news in the market today were General Mills, Morgan Stanley, and General Motors.
The Commentary:
“Here is how I anticipate the Gold (December Comex) story unfolding:
This move does not take out $800 without some very hard work.
$782 - $792 is where the battle begins
$800 will, of course, be passed in time.
$751 to $761 is to me a given.
$714- $715 is a place where significant buying will occur
$682 Angel will be faded out as $612 on the illustration, but that requires a little longer above December $714-$715.
The fundamental reasons why all this will occur is in the Formula and the brief on over the counter derivatives. Please study these as they are without any doubt the exact scripts being followed in the form of cause and effect of the Weimar Republic. OTC derivatives should be compared to the Weimar currency manipulation that got out of hand. It is most interesting to note that general equities in that case went as high as the currency went low until it all imploded on itself.
There is no way that a non-derivative risk precious metals and base metal shares will remain here as gold goes to $1650. In time the non-derivative risk shares will outperform both precious and base metals…” - Jim Sinclair, More at JSMineset.com
“Special Alert: Wednesday, September 19, 2007 8:30 a.m. EST:
I’m currently in St. John's Newfoundland (an absolutely beautiful place where I got to stand at the easternmost point in North America - a thrill for a kid from the Bronx) and can't write an extensive commentary. However, I wanted you to know that the "Don't Worry, Be Happy" crowd has given me a very early Christmas present by finally causing the FED to dramatically ease - a feat I have long spoken about as the last needed ingredient for me to short the U.S. Stock Market.
It's my intention to now look for an entry point and if and when I do, I will send you notice of my decision and what I did. I am not suggesting anyone follow me but just want it to signify my firm entrance into the bearish camp. It’s my desire to write an extensive alert in the next week or two.
As you know, I've remained a strong bull on gold and am delighted in the events that are unfolding, as they should serve to pave the way to a new, all-time high in gold above $875. We should encounter some resistance in the $735- $740 area basis spot, but it would be healthy in the long run. It’s not being spoken about in the media, but I believe one of the underlying reasons for gold’s breakout (ASIDE FROM THE FAILED ATTEMPTS TO CAP IT) is an unfolding major dilemma in the Middle East regarding Israel and Syria (more on this in my alert upcoming).
Addition to Alert, posted at 1:30 p.m.
Further to this morning's alert (http://www.grandich.com/docs/alert_09-19-07.pdf) I have subsequently shorted the U.S. Stock Market via the following two Exchange Traded Funds (ETFs):
• SDS - $50.34 - this is a bet on the S&P 500 going lower with 2X leverage
• QID - $40.84 - this is a bet on the NASDAQ 100 going lower with a 2X leverage” - Peter Grandich, Grandich Letter
“December Gold finished up 5.8 at 729.5, 3.8 off the high and 1.5 up from the low.
December Silver closed up 0.18 at 13.105. This was 0.055 up from the low and 0.1 off the high.
The gold market was mostly firm throughout the trading session but given the initial run up it is possible that some bulls were disappointed with the magnitude of the rally. In fact, with the market failing to sail through the prior session's highs, some traders have suggested that the market is technically overdone, while others would suggest that strength in the US Dollar served to hold back the gold market. Surprisingly equity prices were strong and oil prices seemed to keep the inflation/growth thing alive from the prior session, but in the end the market finished higher but not at new highs. Perhaps the slide in the housing starts readings rekindled some slowing concerns and that in turn might have discouraged buyers from paying up for gold around this morning's highs.
The silver market did manage to temporarily forge a new high for the move but prices fell back from those highs into the close. Like gold, we suspect that a much weaker than expected housing starts report combined with a setback off the highs in the equity market prompted some longs to bank profits. However, the copper market certainly held a large portion of its gains and that should continue to give off the impression that silver is somewhat cheap relative to other metals prices.” - The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Bank of England in dramatic turn on 3-month money
Hugo Salinas Price: A perpetual 'war on gold'?
Dan Norcini: Capital flows promise more trouble for dollar
William Greider: The lies of Alan Greenspan
Canadian dollar less than cent and a half from parity
Pretending that bad credit is good credit
Antal Fekete: Part 3 of Peak Gold! A primer on true hedging
Add 'gold' and the Financial Times sounds like GATA
Gold seen anticipating lower worldwide interest rates
China unloads $5 billion for vast mineral concessions in Congo
The Statistics:
As of close of business: 9/18/2007
Gold Warehouse Stocks: | 7,077,126 | - |
Silver Warehouse Stocks: | 133,057,444 | +586,830 |
Global Gold ETF Holdings
[WGC Sponsored ETF’s]
| Product name | Total Tonnes | Total Ounces | Total Value |
New York Stock Exchange (NYSE) AND Singapore Exchange (SGX) | Streettracks Gold Shares | 575.57 | 18,504,991 | US$ 13,224m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 90.13 | 2,897,753 | US$ 2,092m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 13.75 | 441,603 | US$ 319m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 17.35 | 557,912 | US$ 399m |
Note: Change in Total Tonnes from yesterday’s data: The NYSE/SFX added 7.69 tonnes to a new record high in total tonnes held.
COMEX Gold Trust (IAU)
Profile as of 9/18/2007 | |
Total Net Assets | $1,115,564,958 | Ounces of Gold
in Trust | 1,558,781.072 |
Shares Outstanding | 15,750,000 | Tonnes of Gold
in Trust | 48.48 |
Note: Change in Total Tonnes from yesterday’s data: 0.30 tonnes were added to the trust.
Silver Trust (SLV)
Profile as of 9/18/2007 | |
Total Net Assets | $1,814,768,918 | Ounces of Silver
in Trust | 140,061,027.500 |
Shares Outstanding | 14,100,000 | Tonnes of Silver
in Trust | 4,356.38 |
Note: Change in Total Tonnes from yesterday’s data: 30.88 tonnes were added to the trust.
The Stocks:
Fronteer’s (FRG) advanced project, Barrick’s (ABX) $10 million offer for innovation to unlock silver from their ore, Orezone’s (OZN) increase in gold resources, Great Basin’s (GBN) accepted application, Gold Reserve’s (GRZ) new IR firm, Fronteer’s (FRG) final order approving the arrangement between Fronteer and NewWest, Orko Silver’s (OK.V) assay results, Tumi’s (TUMIF.OB) drill preparation, Palmarejo’s (PJO.V) updated resource statement, Great Panther’s (GPR.TO) drilling program, SilverCrest’s (SVL.V) assay results, Scorpio’s (SPM.TO) drill results, and Hecla’s (HL) upcoming webcast from the Denver Gold Forum were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Buenaventura | BVN+7.62% $48.46 |
2. IAMGOLD | IAG +5.51% $8.62 |
3. Golden Star | GSS+4.88% $3.65 |
LOSERS
1. Northgate | NXG-5.24% $2.71 |
2. Richmont | RIC -4.76% $2.80 |
3. New Gold | NGD-3.45% $6.16 |
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:
Universal Uranium and Silver Spruce Resources to Proceed with Joint Venture in Lieu of Combination Transaction - More
- September 19, 2007 | Item | E-mail
Nirek Resources Inc. Acquires Kirana Mine - More
- September 19, 2007 | Item | E-mail
Pure Nickel Inc. Announces Granting of Stock Options - More
- September 19, 2007 |
Gold Seeker Closing Report: Gold and Silver Hold Yesterday’s Late Advance and Gain About 1%