-- Posted Wednesday, 26 September 2007 | Digg This Article
| Close | Gain/Loss |
Gold | $727.80 | -$3.00 |
Silver | $13.35 | -$0.11 |
XAU | 165.01 | -1.72% |
HUI | 382.26 | -2.35% |
GDM | 1190.01 | -1.79% |
JSE Gold | 2686.38 | -0.02% |
USD | 78.53 | +0.21 |
Euro | 141.32 | -0.10 |
Yen | 86.61 | -0.75 |
Oil | $80.30 | +$0.77 |
10-Year | 4.620% | +0.006 |
T-Bond | 110.71875 | -0.09375 |
Dow | 13878.15 | +0.72% |
Nasdaq | 2699.03 | +0.58% |
S&P | 1252.42 | +0.54% |
The Metals:
Gold traded slightly up in Asia and slightly down in London before it spiked nearly 1% higher to $737 by about 10AM EST in New York, but it then plummeted lower in the next hour of trade and fell to as low as $726.17 ahead of a small rally back higher into the close that left it with a loss of 0.41%. Silver rose as high as $13.575 and fell to as low as $13.29 in New York before it also rallied from its low in afternoon trade, but it still ended with a loss of 0.82%.
Euro gold fell to about €515, platinum gained $12 to a new record high at $1345, palladium lost $1 to $338, and copper fell a couple of cents to about $3.63.
Gold and silver equities found small gains in the first half hour of trade, but they then fell off to find roughly 2% losses by late morning and remained near their lows into the close.
The Economy:
Report | For | Reading | Expected | Previous |
Durable Orders | Aug | -4.9% | -3.5% | 6.1% |
Tomorrow at 8:30AM EST brings the final reading for second quarter GDP expected at 3.9%, the Chain Deflator expected at 2.7%, and Initial Jobless Claims expected at 320,000. At 10AM are New Home Sales for August expected at 825,000 and the Help-Wanted Index for August expected at 24.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil rose back above $80 in early trade on increased geopolitical tensions, but it then fell back under $78 after inventory reports appeared to come in better than expected. Oil inventories built 1.8 million barrels despite an expected drop, gasoline inventories built a larger than expected 600,000 barrels, and distillates built a larger than expected 1.6 million barrels. Refinery utilization, however, fell a large 2.7% to 86.9%, and as traders looked deeper into the reports and saw a draw in inventories at the key Cushing, Oklahoma plant, they began to buy and oil ended back above $80 with a gain when the session finally closed.
The U.S. dollar index rebounded from near record lows despite a Durable Goods report that was even worse than expectations as strength in the stock market appeared to give some short term confidence to the currency and allowed it to bounce from a technically oversold condition.
Treasuries fell in early trade on profit taking as stocks rose, but they erased most of their losses by the close after a very strong 2-year note auction added to demand created from another poor economic report released this morning.
The Dow, Nasdaq, and S&P found decent gains at the open on news that GM had resolved a strike with UAW and all three indices held their gains into the close.
Among the big names making news in the market today were Bear Stearns, Toyota, GM and UAW, and Citic.
The Commentary:
“December Gold finished down 3.3 at 735.5, 8.5 off the high and 2 up from the low.
December Silver closed down 0.075 at 13.545. This was 0.08 up from the low and 0.185 off the high.
While gold prices attempted to waffle around both sides of unchanged throughout the session Wednesday, the market mostly favored the downside. With the Dollar higher in the face of weak US numbers and energy prices weak again the bull camp certainly had reason to fret. However, the gold market didn't initially seem to get much support off suggestions that the Dollar peg for OPEC Oil might be up for discussion, as that in many minds has been a key force in keeping down global inflation rates. With the Chinese apparently seeing sharp increases in domestic food prices in the wake of a recent pig crisis and US grain prices really thrusting sharply higher on Wednesday it was somewhat surprising gold prices didn't get some support from the grain markets.
Even though December silver managed to initially rise above the prior session's high during the morning trade, prices finished on a down note. With the gold market mostly weak, the Dollar higher and energy prices weak it would seem as if the majority of the outside market forces for silver were bearish. Soft US Durable goods data and modest selling in the copper market also seemed to increase the pressure hanging over silver prices. In short, a bit of macro economic selling seemed to dominate silver and that probably discouraged some longs. In fact after seeing a fresh new high for the move in copper prices and overt strength in lead prices early in the session, it would seem to make the silver slide even more suspect.”- The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Are 'inflation-protected' bonds really better than gold?
Chinese best-seller perceives currency issue but blames Rothschilds
Central banks fail to calm money markets as cash hunger grows
Northern Rock cancels dividend, negotiates sale
Newcrest will close last gold hedges within 12 months
The Statistics:
As of close of business: 9/25/2007
Gold Warehouse Stocks: | 6,986,886 | +194 |
Silver Warehouse Stocks: | 133,930,016 | -10,299 |
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 | 578.03 | 18,584,096 | US$ 13,535m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 91.25 | 2,933,906 | US$ 2,138m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 14.30 | 459,169 | US$ 335m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 17.72 | 569,706 | US$ 415m |
Note: Change in Total Tonnes from yesterday’s data: The ASX added 0.55 tonnes.
COMEX Gold Trust (IAU)
Profile as of 9/25/2007 | |
Total Net Assets | $1,161,823,215 | Ounces of Gold
in Trust | 1,588,466.024 |
Shares Outstanding | 16,050,000 | Tonnes of Gold
in Trust | 49.41 |
Note: No change in Total Tonnes from yesterday’s data.
Silver Trust (SLV)
Profile as of 9/25/2007 | |
Total Net Assets | $1,892,378,783 | Ounces of Silver
in Trust | 142,543,751.700 |
Shares Outstanding | 14,350,000 | Tonnes of Silver
in Trust | 4,433.61 |
Note: No change in Total Tonnes from yesterday’s data.
The Stocks:
A swap of assets between Kinross (KGC) and Goldcorp (GG), Goldfields (GFI) higher debt and South Deep expansion, Barrick’s (ABX) bullish price outlook and hedge book, Cardero’s (CDY) potential exploration alliance with Newmont (NEM), Newmont’s expectation for higher operating costs, Aurelian’s (ARU.TO) drill results, Kimber’s (KBX) new CEO, Kirkland’s (KGI.TO) drill results, Oro Silver’s (OSR.V) acquired mining properties, and SilverCrest’s (SVL.V) assay results were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Banro | BAA+12.13%$10.35 |
2. Cardero | CDY +7.75% $1.39 |
3. Entree | EGI +3.24% $2.55 |
LOSERS
1. Endeavour | EXK -8.84% $3.30 |
2. Golden Star | GSS -6.31% $3.86 |
3. Newmont | NEM-5.85% $44.90 |
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:
Goldfields sees higher debt, South Deep expansion - "Gold Fields Ltd (GFIJ.J: Quote, Profile, Research), the world's No. 4 gold miner, sees its net debt rising to nearly $1 billion in the near term, but then returning to the company's preferred range of $500 million to $750 million, Chief Executive Ian Cockerill said on Wednesday." More
- September 26, 2007 | Item | E-mail
Zimbabwe passes law to give foreign firms to locals - "Zimbabwe's parliament passed a bill on Wednesday giving local owners majority control of foreign-owned companies including mines and banks, threatening to drive the fragile economy deeper into crisis." More
- September 26, 2007 | Item | E-mail
Tombstone Exploration announces offering of common stock - More
- September 26, 2007 | Item | E-mail
Aurus Announces Shareholders Meeting - More
- September 26, 2007 | Item | E-mail
Brazauro Announces Increased Mineral Resource and Positive Results from Preliminary Economic Assessment of Tocantinzinho Gold Project, Brazil - More
- September 26, 2007 | Item | E-mail
Pan American Gold Corporation: Repricing and Granting of Stock Options - More
- September 26, 2007 | Item | E-mail
Analysts see Goldcorp, Kinross asset swap gains - "A long-anticipated asset swap between Kinross Gold Corp (K.TO: Quote, Profile, Research) and Goldcorp Inc (G.TO: Quote, Profile, Research) will yield benefits for both miners as they consolidate their stakes in several mines, analysts said on Wednesday." More
- September 26, 2007 | Item | E-mail
Barrick bullish on price, not worried on costs - "Strong jewelry demand and a somewhat bearish supply picture should drive gold prices to $800 per ounce by the end of the year, the chief executive of top gold producer Barrick Gold (ABX.TO: Quote, Profile, Research) said on Wednesday." More
- September 26, 2007 | Item | E-mail
Cardero and Newmont Propose to Form Strategic Gold Exploration Alliance Targeting NW Argentina - "Cardero Resource Corp. ("Cardero" or the "Company") (Toronto:CDU.TO - News)(AMEX:CDY - News)(Frankfurt:CR5.F - News) is pleased to announce that it has agreed on a non-binding term sheet with respect to the commercial terms for the formation of a regional exploration alliance ("Alliance") with Newmont Ventures Limited ("Newmont") to jointly conduct exploration for a variety of gold deposit types in north-west Argentina." More
- September 26, 2007 | Item | E-mail
Newmont expects higher operating costs in Nevada - "The head of the world's second-largest gold producer, Newmont Mining Corp (NEM.N: Quote, Profile, Research) on Wednesday forecast higher-than-expected operating cost at its Nevada operations, and its cost applicable to 2007 sales may also exceed its previous estimates." More
- September 26, 2007 | Item | E-mail
Constantine Cuts 46 Feet (14.0 Metres) of Copper-Zinc Rich Massive Sulphide - More
- September 26, 2007 | Item | E-mail
Gold Seeker Closing Report: Gold and Silver Fall Slightly