-- Posted Tuesday, 9 October 2007 | Digg This Article
| Source: GoldSeek.com
| Close | Gain/Loss |
Gold | $736.70 | +$4.10 |
Silver | $13.43 | +$0.20 |
XAU | 173.44 | +2.90% |
HUI | 398.39 | +2.62% |
GDM | 1241.39 | +2.68% |
JSE Gold | 2553.95 | +0.59% |
USD | 78.46 | -0.31 |
Euro | 140.80 | -0.55 |
Yen | 85.40 | -0.09 |
Oil | $80.26 | +$1.24 |
10-Year | 4.651% | +0.011 |
T-Bond | 110.78125 | UNCH |
Dow | 14164.53 | +0.86% |
Nasdaq | 2803.91 | +0.59% |
S&P | 1565.15 | +0.81% |
The Metals:
Gold traded slightly lower in Asia and fell to as low as $726.55 in London at about 6AM EST, but it then rallied for the next 5 hours and traded as high as $740.60 in New York before it fell back off a few dollars into the close and ended with a gain of 0.56%. Silver dropped to as low as $13.12 in London and rose to as high as $13.56 in New York before it also fell back off into the close, but it still ended with a gain of 1.51%.
Euro gold rose above €523, platinum gained $14 to $1367, palladium gained $2 to $362, and copper fell to about $3.61.
Gold and silver equities steadily rose throughout trade and ended with nearly 3% gains.
The Economy:
The only major economic news of the day was the release of the fed’s minutes which showed unanimous agreement in the decision to cut rates by 50 basis points at their last meeting. Perhaps the most significant part of the minutes to note though was the complete lack of concern for inflation shown by fed members after having shown it to be an emphasis just a few months ago. Tomorrow at 10AM EST brings Wholesale Inventories for August expected at 0.3%.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil rose after a government prediction for strong demand in response to a forecast for a colder winter than last year.
The U.S. dollar index fell after the fed’s minutes made it seem more likely they will continue to cut interest rates.
Treasuries erased early gains after the fed’s minutes despite the outlook for lower interest rates as bond traders seemed more concerned about the fed’s abandonment of their previously perceived fight against inflation.
The Dow and S&P rose to new record highs and the Nasdaq also found nice gains after the fed’s minutes indicated to Wall Street that they may continue to cut interest rates at future meetings.
Among the big names making news in the market today were SABMiller and Molson Coors, Chrysler and UAW, AT&T and Aloha, and Newmont and Miramar.
The Commentary:
“December Gold finished up 4.4 at 743.1, 2.9 off the high and 8.6 up from the low.
December Silver closed up 0.223 at 13.583. This was 0.233 up from the low and 0.087 off the high.
The gold market displayed significant volatility throughout the trading session but it was clear that the ebb and flow of the US Dollar was an important force in the direction of trade. The gold market seemed to fall back away from some mid day gains in the wake of the FOMC meeting minutes release, even though the Dollar was largely unmoved by the release. However, with the US Fed suggesting that they were expecting inflation levels to come down in their last meeting and that they saw ongoing downside risks in the US economy, it wasn't surprising to see some recent buyers bank long profits in the wake of the Feds most recent economic assessment.
The silver market managed a rather robust trading range on Tuesday, with the meandering of the US Dollar a primary force. However, the silver bulls might have seen the most help from Press rumors that suggested increased cash or physical gold interest was responsible for the early recovery in all the precious metals markets. In the end, seeing signs of increased gold bullion buying interest right into the US futures opening on Tuesday in effect rekindles ideas that investors still want to add silver and gold to their portfolios.”- The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
John Crudele: Who's Ben chatting with about the economy?
Ted Butler: A picture worth a thousand words
European Central Bank plans indefinite liquidity boosts
Alan Ruskin: Moral hazard encourages weak dollar
New party line in U.S.: Weak dollar good, won't be inflationary
James Turk: When's gold's next streak?
Treasury claims power to seize gold and silver -- and everything else
GATA Chairman Murphy looks for company in Toronto Oct. 15
The Statistics:
As of close of business: 10/8/2007
Gold Warehouse Stocks: | 7,162,356 | -21,280 |
Silver Warehouse Stocks: | 132,646,076 | -451,404 |
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 | 585.53 | 18,825,503 | US$ 13,854m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 97.89 | 3,147,404 | US$ 2,325m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 15.06 | 483,976 | US$ 358m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 18.21 | 585,437 | US$ 429m |
Note: Change in Total Tonnes from Friday’s data: The NYSE/SGX added 7.68 tonnes.
COMEX Gold Trust (IAU)
Profile as of 10/8/2007 | |
Total Net Assets | $1,178,068,876 | Ounces of Gold
in Trust | 1,607,768.854 |
Shares Outstanding | 16,250,000 | Tonnes of Gold
in Trust | 50.01 |
Note: No change in Total Tonnes from yesterday’s data.
Silver Trust (SLV)
Profile as of 10/8/2007 | |
Total Net Assets | $1,906,656,964 | Ounces of Silver
in Trust | 143,481,444.700 |
Shares Outstanding | 14,450,000 | Tonnes of Silver
in Trust | 4,462.77 |
Note: No change in Total Tonnes from yesterday’s data.
The Stocks:
Newmont’s (NEM) plans to buy Miramar (MNG), Barrick’s (ABX) gold license in Russia, Taseko’s (TGB) quarterly sales, Entree Gold’s (EGI) drill results, Ivanhoe’s (IVN) drill results, IAMGOLD’s (IAG) mine sale, Silvermex’s (SMR.V) optioned property from Silver Standard (SSRI), and Fury’s (FUR.V) drilling were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Miramar | MNG +23.88% $6.38 |
2. Northern Dynasty | NAK +10.59% $13.05 |
3. Entree Gold | EGI +8.33% $3.25 |
LOSERS
1. Paramount | PZG -3.80% $2.34 |
2. US Energy | USEG-2.27% $4.30 |
3. Kimber | KBX -1.77% $1.11 |
Winners & Losers tracks NYSE and AMEX listed gold and silver mining stocks that trade over $1.
All of today's gold and silver stock news:
Thunder Mountain Resources Acquires 100% Interest in Historic Idaho Zinc- Silver-Lead-Copper-Gold Mine - More
- October 09, 2007 | Item | E-mail
Sirios Resources Inc.: C$ 2 Million Brokered Private Placement - More
- October 09, 2007 | Item | E-mail
Uravan Announces New President - More
- October 09, 2007 | Item | E-mail
Molycor Gold Corp.: Appointment of New Chief Financial Officer - More
- October 09, 2007 | Item | E-mail
J-Pacific Intersects 5.73g Au/t over 1.75 metres on the Blackdome No. 17 Vein - More
- October 09, 2007 | Item | E-mail
Amarillo Expands Land Position at Mara Rosa - More
- October 09, 2007 | Item | E-mail
Yukon-Nevada Gold Corp. - Exciting new joint venture announced - More
- October 09, 2007 | Item | E-mail
Amseco Exploration Closes the First Tranche of a Financing of up to $450,000 - More
- October 09, 2007 | Item | E-mail
Government of India Approves Pebble Creek's Askot Mining Lease - More
- October 09, 2007 | Item | E-mail
Olympus Announces Increased Gold Equivalent Resource of 833,500 oz. at Bong Mieu - More
- October 09, 2007 | Item | E-mail
Consolidated Spire Ventures Ltd.: Drilling Intersects 64 Metres of Quartz Stockwork Mineralization in the Discovery South Zone - Prospect Valley Property - More
- October 09, 2007 | Item | E-mail
Wesdome Gold Mines Ltd. - Development proves up high grade 811 Zone, Eagle River mine, Ontario - More
- October 09, 2007 | Item | E-mail
Royal Gold Announces Fiscal 2008 First Quarter Conference Call - "Royal Gold, Inc. (Nasdaq: RGLD - News; TSX: RGL - News), the leading precious metals royalty company, will report its first quarter fiscal 2008 results before the market opens for trading on Thursday, November 1, 2007. There will be a conference call that day at Noon Eastern Time (10:00 a.m. Mountain Time) which will be accessible via live internet broadcast and dial-in conference capabilities." More
- October 09, 2007 | Item | E-mail
Gold Seeker Closing Report: Gold and Silver Gain Over 0.5% and 1.5%