-- Posted Thursday, 11 October 2007 | Digg This Article
| Source: GoldSeek.com
| Close | Gain/Loss |
Gold | $751.30 | +$11.50 |
Silver | $13.87 | +$0.33 |
XAU | 176.67 | +0.12% |
HUI | 410.47 | +1.29% |
GDM | 1276.64 | +1.26% |
JSE Gold | 2581.25 | +0.51% |
USD | 78.16 | -0.17 |
Euro | 142.14 | +0.81 |
Yen | 85.28 | -0.03 |
Oil | $83.08 | +$1.78 |
10-Year | 4.659% | +0.012 |
T-Bond | 110.65625 | -0.125 |
Dow | 14015.12 | -0.45% |
Nasdaq | 2772.20 | -1.40% |
S&P | 1554.41 | -0.52% |
The Metals:
Gold steadily rose throughout most of trade in Asia and London and rose to as high as $753.25 by early afternoon in New York before it eased a couple of dollar’s into the close, but it still ended with an impressive gain of 1.55%. Silver followed a similar pattern and rose to as high as $13.898 before it also moderated slightly into the close, but it still ended with an even larger gain of 2.44%.
Euro gold rose to over €527, platinum gained $22 to $1407 to a new record high, palladium gained $5 to $377, and copper fell slightly to about $3.68.
Gold and silver equities rose to new all-time highs with over 3% and 4% gains by early afternoon, but they then sold off with the major indices in the last couple hours of trade and ended with only about 1% gains.
The Economy:
Report | For | Reading | Expected | Previous |
Export Prices | Sep | 0.3% | - | 0.2% |
Export Prices ex-ag. | Sep | 0.0% | - | 0.1% |
Import Prices | Sep | 1.0% | 0.8% | -0.3% |
Import Prices ex-oil | Sep | -0.2% | - | -0.1% |
Initial Claims | 10/05 | 308K | 315K | 320K |
Trade Balance | Aug | -$57.6B | -$59.5B | -$59.0B |
Treasury Budget | Sep | $111.6B | $100.0B | $248.2B |
Tomorrow at 8:30AM EST brings PPI for September expected at 0.5%, Core PPI expected at 0.2%, Retail Sales for September expected at 0.2%, and Retail Sales excluding autos expected at 0.3%. At 10AM is the Business Inventories report for August expected at 0.3% and Michigan Sentiment for October expected at 84.0.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil rose throughout trade and ended with over 2% gains near the all-time high of $83.90 after some bullish inventory data. Oil inventories surprisingly fell 1.7 million barrels, gasoline inventories built 1.7 million barrels, distillates fell 600,000 barrels, and refinery utilization rose 0.3% to 87.8%.
The U.S. dollar index fell back near new all-time lows as the Bank of Japan held rates at 0.5% and the European Central Bank’s bias appears to be up while the fed’s bias is perceived to be towards lower interest rates.
Treasuries fell slightly after economic data came in better than expected and pushed interest rates higher.
The Dow, Nasdaq, and S&P found nice gains in the first four hours of trading after Wal-Mart and other retailers forecasted or reported stronger than expected sales, but all three indices fell back off in the last two hours of trade and ended noticeably lower after “European Central Bank governing council member Axel Weber said the bank may need to raise interest rates to a level that restricts economic growth to keep inflation under control.”
Among the big names making news in the market today were Lennar, Centex, Pulte, Macy’s, J.C. Penney, Countrywide, Beazer, PepsiCo, Wal-Mart, and Chrysler-UAW.
The Commentary:
“The Fed's comment on the FAKE employment figures as a demonstration of economic strength has resulted in a deceleration of the dollar decline as improved business conditions would imply higher interest rates. The problem is that the employment figures as part of operation "White Noise" are a statistically manufactured fabrication.
Gold is fighting the $751 to $761 area of supply, but will overcome this area and move above $1,000. All of what you are seeing now is funds powered by black boxes running amuck hither and yon with no significance at all. The time for zig-zag is over just as it was in the middle of 1979.
You may sell as a trading fiend, but one day soon gold will take off like a rocket to breach $1,000, most likely without you.
This is the real thing. Sell only if you have a defined need for the cash. Otherwise stand pat and ignore the daily madness.”- Jim Sinclair, JSMineset.com
“December Gold finished up 10.7 at 756.7, 2.3 off the high and 6.7 up from the low.
December Silver closed up 0.317 at 13.985. This was 0.225 up from the low and 0.025 off the high.
With a big range up extension on Thursday the gold market probably enhanced its rather stellar investment status. With the US Dollar seeing another downward extension in the face of a significant equity market rally, the bull camp would seem to be getting support from a number of outside market developments. Apparently the market even managed to get some inflation talk from the Press but that view might be put to a quick test on Friday morning in the wake of a US PPI report. As suggested in the mid day coverage the gold market would almost seem to be getting a perfect storm of news but this type of action isn't new to the market as gold in early 2006 managed a $200 an ounce rally in the face of rising equities, rising oil prices and a declining US Dollar. Just to add to the positive momentum more brokerages firms moved to upgrade their gold price targets and that probably prompted some additional small spec buying to the trade.
Finally December silver managed to forge a new high for the move with the highest trade since June 7th. Certainly the ongoing weakness in the US Dollar and general strength in gold and platinum prices gave the silver the impetus to reach a higher high but it is also possible that arbitrage buying played a role in the strength on Thursday. In short, a mostly positive economic outlook is currently being accentuated by ongoing hope of lower US interest rates and a sinking US Dollar.”- The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
John Crudele: Did Paulson tip Wall Street after meeting Bernanke?
Bill Fleckenstein: PPT lets outsiders in to quell market-rigging suspicions
Central bank gold sales fell 25 tonnes short; Bundesbank opts out
Academic roots for more rigging of currency markets
The Statistics:
As of close of business: 10/10/2007
Gold Warehouse Stocks: | 7,184,976 | - |
Silver Warehouse Stocks: | 133,409,546 | +164,405 |
Global Gold ETF Holdings
[WGC Sponsored ETF’s]
| Product name | Total Tonnes | Total Ounces | Total Value |
New York Stock Exchange (NYSE) AND Singapore Exchange (SGX) | Streettracks Gold Shares | 585.53 | 18,825,503 | US$ 13,953m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 97.89 | 3,147,334 | US$ 2,346m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 15.06 | 483,966 | US$ 361m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 18.21 | 585,424 | US$ 433m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU)
Profile as of 10/10/2007 | |
Total Net Assets | $1,204,911,551 | Ounces of Gold
in Trust | 1,627,554.826 |
Shares Outstanding | 16,450,000 | Tonnes of Gold
in Trust | 50.62 |
Note: Change in Total Tonnes from yesterday’s data: 0.61 tonnes were added to the trust.
Silver Trust (SLV)
Profile as of 10/10/2007 | |
Total Net Assets | $1,953,953,762 | 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:
Speculation over a split or breakup at Harmony (HMY), Claude’s (CGR) production increase, Tanzanian Royalty’s (TRE) private placement, Fronteer’s (FRG) drill results, Gold Fields (GFI) sold 60% stake in the Essakane project to Orezone (OZN), and Great Basin’s (GBN) bulk sample results were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Rubicon | RBY+19.44% $2.15 |
2. Almaden | AAU +7.22% $2.97 |
3. Minco | MGH+7.02% $1.22 |
LOSERS
1. Metalline | MMG -6.44% $3.05 |
2. US Gold | UXG -6.36% $5.15 |
3. Gammon Gold | GRS -5.81% $10.86 |
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:
Aberdeen International Completes Strategic Investment With Kansai Mining Corporation - More
- October 11, 2007 | Item | E-mail
Cigma Metals Corporation Is Pleased to Announce Additional Drilling Results From the Quartzite Gorka and the Berezkey Projects - More
- October 11, 2007 | Item | E-mail
Bird River Mines Inc. Options the Ore Fault Property to Marathon PGM Corporation - More
- October 11, 2007 | Item |
Gold Seeker Closing Report: Gold and Silver Gain Over 1% and 2% While Miners Make New Record Highs