|
-- Posted Thursday, 20 September 2007 | Digg This Article
Note: Please join GoldSeek.com and SilverSeek.com at the Silver Summit on September 20th and 21st in Coeur d'Alene, Idaho and the Denver Resource Expo on September 21st and 22nd at the Colorado Convention Center. Please also note: There will be not be a Gold Seeker report tomorrow. | Close | Gain/Loss | Gold | $731.70 | +$11.00 | Silver | $13.31 | +$0.38 | XAU | 172.13 | +3.60% | HUI | 400.94 | +4.51% | GDM | 1243.28 | +4.08% | JSE Gold | 2780.90 | +2.53% | USD | 78.61 | -0.71 | Euro | 140.69 | +1.01 | Yen | 87.27 | +1.06 | Oil | $83.32 | +$1.39 | 10-Year | 4.672% | +0.148 | T-Bond | 110.00 | -1.46875 | Dow | 13766.70 | -0.35% | Nasdaq | 2654.29 | -0.46% | S&P | 1518.75 | -0.67% |
The Metals:  Gold rose to as high as $738.10 today and marked its highest price since climbing as high as $850 in January of 1980. After trading slightly higher in Asia and finding about 1% gains in London, gold rose even further to find over 2% gains by late morning in New York before it fell back off a bit into the close, but it still ended with a gain of 1.53%. Silver rose near $13.50 by late morning in New York before it also fell back off in afternoon trade, but it still ended with a notable gain of 2.94%.
Euro gold rose over €522, platinum gained $16 to $1323, palladium gained $2 to $334, and copper remained at about $3.58. Gold and silver equities rose throughout most of trade and closed near their highs with about 4% gains. The Economy: Report | For | Reading | Expected | Previous | Initial Claims | 9/15 | 311K | 320K | 320K | Leading Indicators | Aug | -0.6% | 0.0% | 0.7% | Philadelphia Fed | Sep | 10.9 | 2.5 | 0.0 |
Bernanke and Paulson testified before congress today about the housing crisis and said they were open to easing loan constraints on government-sponsored enterprises like Fannie Mae and Freddie Mac to help stabilize the mortgage market. The Markets: 
Charts Courtesy of http://finance.yahoo.com/ Oil rose to a new record high of $84.10 on the view that the fed’s rate cut will help keep demand strong while 28% of production in the Gulf of Mexico was shut down due to a developing storm in the Atlantic that is threatening facilities. The October contract expired today and tomorrow the front month contract will be November which closed up $0.93 to $81.78. The U.S. dollar index plunged to a new 15 year low overall, dropped to a new all-time low versus the euro, and also fell to parity with the Canadian dollar for the first time in 31 years. In addition, the index closed just 0.42 points away from breaking through the previous all time low of 78.19 set in 1992. Lower U.S. interest rates from the fed continue to add selling pressure to the dollar, but there was yet another new reason today for the dollar to continue its recent downward spiral: “Saudi Arabia has refused to cut interest rates in lockstep with the U.S. Federal Reserve for the first time, signaling that the oil-rich Gulf kingdom is preparing to break the dollar currency peg in a move that risks setting off a stampede out of the dollar across the Middle East." Bonds fell and treasury yields rose despite the fed’s larger than expected fed funds rate cut just two days ago. Concerns over inflation were Wall Street’s cited explanation, but of greater concern is the possibility that Saudi Arabia may lighten its Treasury holdings and join several other nations in their recent moves to break their dollar pegs and also diversify out of dollar based holdings of every sort. The Dow, Nasdaq, and S&P fell on mostly poor earnings and worries over record high oil and a near record low dollar. Among the big names making news in the market today were Circuit City, FedEx, Goldman Sachs, Bear Stearns, Carlyle Group, LSE, Nasdaq, OMX, and ConAgra. The Commentary:  “Gold has broken out of all restraints now and is an entirely new ball game after Fed President Ben Benanke dropped interest rates at the expense of the $’s value internationally. National interests will always override international ones. Only confidence in the U.S. economy, its banks and the ability of the consumer to spend will restore confidence to former levels and confidence in the $ and turn gold’s price down again. Will this happen?
Gold is moving on rising uncertainty in all markets reaching across the globe now and pointing to higher than historic highs in gold and other precious metals, on their charts. The $ is rapidly running out of support, as it has fallen below $1.4 to the € and promises more falls. This has put the cat amongst the pigeons amongst other Central Banks [Saudi Arabia is pulling the plug on its $ peg and more could follow]. Could we see Capital and Exchange Controls in the States as well as other nations, if the $ plummets on their [the $] way home? Present gold demand is from long-term investors and funds running for cover from the fallout from global instability. We follow global currencies and other factors relating to the gold and silver and platinum prices and have been watching the gentle fracturing of confidence and stability for some time now and will continue to do so closely. This story has a way to go yet!”- Julian D.W. Phillips, www.goldforecaster.com “The rate cut by the Fed this week was confirmation of their policy of flooding the system with cheap money. Therefore the US Dollar has continued its slide and gold is reacting to this. Gold has technically broken through major resistance levels and is attracting new investment flows. Gold is eyeing the all-time record highs from 1980’s which is around $850/ounce. Yet this is using 1980 dollars. Adjusting for inflation, gold has a ways to go to reach its inflation-adjusted highs. We would have to see gold surpass $2,000 accounting for 27 years of dollar devaluation. That is a level becoming more likely as the current situation evolves, but likely years away.
Silver continues to lag below its record highs from last year. Expect that to change shortly with $15 giving way to $18-20 silver down the road.”- Peter Spina, www.goldforecaster.com “Frank Barbera, editor of the Gold Stock Technician newsletter, tells TSC's Simon Constable that he was mistakenly bearish on bullion and now sees gold going to $850 an ounce or higher.” View the interview with Frank here.  “The event today is not gold, but rather the dollar breaking below major-major support, below which the next support level is .7200 technically but nowhere fundamentally.
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 dollar rules the Gold price. The Formula rules the Dollar. Click here to review the Formula” - Jim Sinclair, JSMineset.com “I hope many of you caught Ron Paul this morning as he posed a question to Bernanke & Paulson before the House Banking Committee. Paul's question was framed around the "moral hazard" of our banking/mortgage practices and the end result of their interest rate cuts had sent gold over $730, rewarded the bankers, but penalized and jeopardized the lower income and middle class mortgage holders. Paul even took a poke at what the Working Group on Financial Markets might be up to. Right on Dr. Paul! Here's the net effect of the much ballyhooed 1/2 point rate cut - the 10-year T-Bond yield, a benchmark for many mortgage agreements - goes up! Investors foreign & domestic are bailing out of our Treasury bonds, and the so-called mortgage resets and refis must ratchet upwards in compliance. THE HALF POINT RATE CUT WAS A BAILOUT FOR BANKERS, NOT HOMEOWNERS. Bernanke concluded his brief and meaningless reply to Paul that inflation is at a 2% rate. Absurd! However, CNBC's Rick Santelli picked up on Paul's question and commended Paul in subsequent commentary, a very refreshing revelation...for a change. (Expect Santelli to be scolded by proxy by the CFR moguls running the network).”- Charleston Voice  “December Gold finished up 10.4 at 739.9, 6.4 off the high and 3.4 up from the low.
December Silver closed up 0.365 at 13.47. This was 0.16 up from the low and 0.17 off the high. While the gold market didn't seem to drive higher into the close a double digit gain for most of the session is still a very impressive move for the bull camp. With the Dollar under significant and historic selling pressure it isn't surprising that gold is being viewed as a safe haven investment. With the Treasury market also surprising the trade with an aggressive downside thrust on Thursday it would certainly seem like there are markets other than gold that are seeing the prospect of soaring inflation. Even more impressive is the fact that gold managed the rally in the face of a slide in equity prices. Many traders were suggesting that gold was probably seeing its spec and fund positioning rise to lofty level and it should also be noted that December gold to the spike high today was almost $96 an ounce above the August lows and to the highs Thursday it was also $30 an ounce above last Friday's close. The silver market forged its own impressive upward thrust on the charts on Thursday and in forging the gains it has managed to rise above a series of key technical areas on the charts but prices still have made it back to the July highs. Certainly the sharp slide in the Dollar and the positive leadership from the gold market inspired the run up, but as we have mentioned in other coverage this week, the Press is rife with news items touting interest in a wide range of silver related products. In short, speculative and investment interest in silver is running strong and silver to the highs Thursday was still $1.58 cents below the 2007 highs.”- The Hightower Report, Futures Analysis and Forecasting GATA Posts: 
Peter Brimelow: Rate cut makes bear Murphy feel more golden than ever As inflation rages, China would freeze some prices Antal Fekete: Barrick's executives bail out ahead of shareholders Bank of England stripped of independence, ordered to gush cash Treasury would let Fannie, Freddie buy, bundle, unload jumbos Bank of England's gold not good enough for delivery Debate rages over impact of soaring Canadian dollar Policy reversed, Fannie and Freddie will buy junk mortgages Paulson asks Congress to lift debt limit Barrick CEO sees 'perfect storm' raising gold price Saudi Arabia hints at breaking currency peg to dollar The Statistics: As of close of business: 9/19/2007 Gold Warehouse Stocks: | 7,077,126 | - | Silver Warehouse Stocks: | 133,409,064 | +351,620 |
Global Gold ETF Holdings [WGC Sponsored ETF’s]  | Product name | Total Tonnes | Total Ounces | Total Value | New York Stock Exchange (NYSE) AND Singapore Exchange (SGX) | Streettracks Gold Shares | 577.10 | 18,554,433 | US$ 13,452m | London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 90.60 | 2,912,720 | US$ 2,141m | Australian Stock Exchange (ASX) | Gold Bullion Securities | 13.75 | 441,598 | US$ 325m | Johannesburg Securities Exchange (JSE) | New Gold Debentures | 17.72 | 569,743 | US$ 413m |
Note: Change in Total Tonnes from yesterday’s data: The NYSE/SFX added 1.53 tonnes to a new record high in total tonnes held. The LSE added 0.47 tonnes and the JSE added 0.37 tonnes. COMEX Gold Trust (IAU) Profile as of 9/19/2007 | | Total Net Assets | $1,125,217,175 | Ounces of Gold
in Trust | 1,558,781.072 | Shares Outstanding | 15,750,000 | Tonnes of Gold
in Trust | 48.48 |
Note: No change in Total Tonnes from yesterday’s data. Silver Trust (SLV) Profile as of 9/19/2007 | | Total Net Assets | $1,819,646,194 | Ounces of Silver
in Trust | 140,061,027.500 | Shares Outstanding | 14,100,000 | Tonnes of Silver
in Trust | 4,356.38 |
Note: No change in Total Tonnes from yesterday’s data. The Stocks: Yamana’s (AUY) raised bid for Meridian (MDG), Royal Gold’s (RGLD) upcoming presentation at the Denver Gold Forum, Miramar’s (MNG) water license, Solitario’s (XPL) drill results, Banro’s (BAA) drill results, Barrick’s (ABX) debenture notice, Exeter’s (XRA) drill results, Northgate’s (NXG) project update. Randgold’s (GOLD) joint broker appointment, Silver Quest’s (SQI.V) drill program, Alexco’s (AXU) Amex listing, Silvercorp’s (SVM.TO) increased resources, and Silver Eagle’s (SEG.TO) new IR firm were among the big stories in the gold and silver mining industry making headlines today. WINNERS 1. Golden Star | GSS +15.07% $4.20 | 2. Northern Orion | NTO +10.74% $6.60 | 3. DRDGOLD | DROOY+10.29% $8.68 |
LOSERS 1. Cardero | CDY -4.55% $1.26 | 2. Paramount | PZG -3.33% $2.61 | 3. Buenaventura | BVN-1.44% $47.76 |
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: Mineral Hill Announces the Appointment of a new Chief Financial Officer - More
- September 20, 2007 | Item | E-mail
Probe Mines Retains AGORACOM to Provide Online Investor Relations and Social Network for Shareholders - |
Gold Seeker Closing Report: Gold Gains 1.5% to a New 27 Year High and Silver Gains Nearly 3%