-- Posted Tuesday, 2 October 2007 | Digg This Article
| Close | Gain/Loss |
Gold | $729.20 | -$17.70 |
Silver | $13.31 | -$0.38 |
XAU | 167.42 | -3.26% |
HUI | 386.96 | -3.50% |
GDM | 1200.65 | -3.33% |
JSE Gold | 2557.54 | -1.06% |
USD | 78.29 | +0.37 |
Euro | 141.52 | -0.86 |
Yen | 86.27 | -0.14 |
Oil | $80.05 | -$0.19 |
10-Year | 4.529% | -0.028 |
T-Bond | 112.00 | +0.28125 |
Dow | 14047.31 | -0.29% |
Nasdaq | 2747.11 | +0.22% |
S&P | 1546.63 | -0.03% |
The Metals:
Gold steadily fell in Asia and London and plunged even further in New York to as low as $724.47 by about 10:45AM EST, but it then rebounded in the last few hours of trade and ended about $5 off it low with a loss of 2.37%. Silver fell to as low as $13.05 before it rebounded about 2% off that low in the last few hours of trade, but it still ended with a loss of 2.78%.
Euro gold fell to about €516, platinum lost $41 to $1341, palladium lost $10 to $346, and copper held strong at about $3.73 with news of a strike in Peru keeping prices supported.
Gold and silver equities fell over 4% by midmorning before they rebounded for the rest of trade, but they closed with more than 3% losses.
The Economy:
Report | For | Reading | Expected | Previous |
Pending Home Sales | Aug | -6.5% | -2.0% | -10.7% |
Tomorrow at 10AM EST is the ISM Services report for September expected at 55.0.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil fell as Colorado State University downgraded its hurricane forecast, but losses were cut to minimal by the close as traders started paying attention to developing tropical storm Noel.
The U.S. dollar index continued its rebound from new all-time lows hit last Friday as traders took profits from the notable recent drop ahead of the closely watched jobs report due out this Friday.
Treasuries rose as interest rates fell in reaction to the Pending Home Sales report that came in even worse than low expectations and marked its poorest reading in history.
The Dow and S&P fell while the Nasdaq found small gains as traders digested yesterday’s record run and continued to debate whether or not the fed will cut interest rates.
Among the big names making news in the market today were Sallie Mae, Ford, Toyota, General Motors, Palm, Citigroup, UBS, Toronto-Dominion and Commerce Bancorp, Pepsi Bottling, and Dean Foods.
The Commentary:
“December Gold finished down 17.8 at 736.3, 4.7 off the high and 5.5 up from the low.
December Silver closed down 0.405 at 13.45. This was 0.27 up from the low and 0.06 off the high.
With a big range down failure on the charts Tuesday, the overbought condition of the gold market was exposed. Seeing the US Dollar manage to regain a series of critical overhead resistance points apparently gave off hints of a critical bottom and that resulted in a setback to the lowest level since the September 25th spike low of $729.2. With a number of physical commodity markets coming under pressure it would seem like fears of US slowing prompted the declines. With most of the metals markets, oil and grain prices under pressure, it is possible that some commodity fund liquidation was thrown into the mix. However, according to a number of Press reports, the sharp slide in gold prices wasn't seen as a major top but instead was viewed as a temporary and perhaps necessary corrective setback.
While December silver initially fell below a series of critical chart support levels, the market seemed to reject the initial wave of pressure. In fact, December silver actually managed to recover back above a prior critical spike down low and at times the December contract managed to rise as far as 30 cents above the mid morning lows. Perhaps the residual strength in the copper prices prompted bargain hunting buying in silver, which in turn suggests that the market might have found some form of critical support around the $13.37 level.”- The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Aussie dollar seen equaling U.S. dollar next year
Calls grow for ECB intervention to stop rise of euro
Gold market manipulation noted in Russian press
Peter Brimelow: Is gold melting up?
Some Northern Rock customers switched into gold
British banks gorge on European Central Bank's cheap credit
Al Korelin: Why invest in gold if the price is manipulated?
Adrian Ash: How central banks control the gold price
The Statistics:
As of close of business: 10/1/2007
Gold Warehouse Stocks: | 7,101,021 | - |
Silver Warehouse Stocks: | 132,587,900 | -36,013 |
Global Gold ETF Holdings
[WGC Sponsored ETF’s]
| Product name | Total Tonnes | Total Ounces | Total Value |
New York Stock Exchange (NYSE) AND Singapore Exchange (SGX) | Streettracks Gold Shares | 578.03 | 18,584,096 | US$ 13,794m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 95.45 | 3,068,904 | US$ 2,245m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 14.30 | 459,138 | US$ 336m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 17.72 | 569,668 | US$ 422m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU)
Profile as of 10/1/2007 | |
Total Net Assets | $1,201,311,801 | Ounces of Gold
in Trust | 1,608,254.908 |
Shares Outstanding | 16,250,000 | Tonnes of Gold
in Trust | 50.02 |
Note: No change in Total Tonnes from yesterday’s data.
Silver Trust (SLV)
Profile as of 10/1/2007 | |
Total Net Assets | $1,976,457,458 | Ounces of Silver
in Trust | 143,536,762.300 |
Shares Outstanding | 14,450,000 | Tonnes of Silver
in Trust | 4,464.49 |
Note: No change in Total Tonnes from yesterday’s data.
The Stocks:
Almaden’s (AAU) drilling, Great Basin’s (GBN) closed agreements, NovaGold’s (NG) testing and transmission line agreement, Exeter’s (XRA) drill results, Allied Nevada’s (ANV) drill results and mine information, Aquiline’s (AQI.TO) plans to acquire Absolut (ABS.V), Sterling Mining’s (SMQ.TO) trading on the TSX, Silver Dragon’s (SDRG.OB) drill results, Scorpio’s (SPM.TO) drill results, and Fury’s (FUR.V) assay results were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Exeter | XRA+9.90% $3.48 |
2. Kimber | KBX+6.00% $1.06 |
3. Alexco | AXU+3.37% $5.22 |
LOSERS
1. DRDGOLD | DROOY-7.00% $7.57 |
2. Harmony | HMY -6.97% $11.07 |
3. Mines MGMT | MGN -5.95% $3.48 |
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:
Mayfair Mining & Minerals, Inc. Announces an Investor Relations Agreement and the Addition of a Board Member - More
- October 02, 2007 | Item | E-mail
Almaden Conducts Another Phase of Drilling on its Elk Gold Project in Southern B.C. - "Almaden (Toronto:AMM.TO - News)(AMEX:AAU - News) currently has a drill program underway on its wholly owned Elk Gold Project, located near Merritt, B.C. A minimum of 1,500 metres of diamond drilling is planned, with the program due to be completed in early October, 2007. The program is focussed on both in-fill drilling and new stepouts to test for further resources on the Siwash and WD vein packages, both of which are open along strike and at depth. Samples recovered will also be used for metallurgical testing." More
- October 02, 2007 | Item | E-mail
Pacific North West Capital Appoints New Directors - More
- October 02, 2007 | Item | E-mail
Kimberly Gold Mines Provides Rescue Mine Update - More
- October 02, 2007 | Item | E-mail
Global Uranium Granted Two Additional Concessions in Niger - More
- October 02, 2007 | Item | E-mail
Red Lake Exploration, Inc. Appoints Caitlin Jeffs to the Board of Directors - More
- October 02, 2007 | Item | E-mail
CCM Research Issues Update Report on Premium Exploration, Inc. - More
- October 02, 2007 | Item | E-mail
Aquiline to Acquire Absolut Resources - "Aquiline Resources Inc. ("Aquiline" or the "Company") (Toronto:AQI.TO - News) and Absolut Resources Corp. ("Absolut") (CDNX:ABS.V - News) are pleased to report they have entered into a binding letter agreement (the "Letter Agreement") pursuant to which Aquiline offers to acquire 100% of the issued and outstanding shares of Absolut that it does not already own by way of a three way transaction (the "Transaction")." More
- October 02, 2007 | Item | E-mail
Mantis Mineral Corp. announces debt settlement - More
- October 02, 2007 | Item | E-mail
Stratabound acquires additional property at Elmtree - More
- October 02, 2007 | Item | E-mail
Sparrowtech Engages Senior Mining Engineer - More
- October 02, 2007 | Item | E-mail
Gold Seeker Closing Report: Gold and Silver Fall Over 2%