-- Posted Tuesday, 16 October 2007 | Digg This Article
| Source: GoldSeek.com
| Close | Gain/Loss |
Gold | $757.20 | +$0.30 |
Silver | $13.53 | -$0.21 |
XAU | 176.20 | -2.01% |
HUI | 411.12 | -1.83% |
GDM | 1284.10 | -1.89% |
JSE Gold | 2546.07 | -1.40% |
USD | 78.25 | +0.16 |
Euro | 141.63 | -0.37 |
Yen | 85.67 | +0.36 |
Oil | $87.61 | +$1.48 |
10-Year | 4.655% | -0.018 |
T-Bond | 110.40625 | -0.03125 |
Dow | 13912.94 | -0.51% |
Nasdaq | 2763.91 | -0.58% |
S&P | 1538.53 | -0.66% |
The Metals:
After a mixed start gold spiked to as high as $766.33 by late trade in Asia, but it then fell back near unchanged around $757 in London, turned mixed again in New York, and closed with a gain of 0.04% at a new 27 year closing high. Silver rose to as high as $13.98 in Asia, but it then fell back off for most of trade in London and New York and ended with a loss of 1.53%.
Euro gold rose to over €535, platinum lost $11 to $1410, palladium lost $13 to $365, and copper fell nearly 5 cents to about $3.68.
Gold and silver equities fell over 2% in the first hour of trade before they rebounded slightly by late morning, but they then fell back off in afternoon trade and ended with about 2% losses.
Central banks start new agreement year with higher pace of gold sales Resource Investor
The Economy:
Report | For | Reading | Expected | Previous |
Net Foreign Purchases | Aug | -$69.3B | - | $19.5B |
Industrial Production | Sep | 0.1% | 0.1% | 0.0% |
Capacity Utilization | Sep | 82.1% | 82.1% | 82.2% |
When including short term instruments there was a total of $163 billion in net foreign selling in August “as tightening access to credit threatened economic growth and spurred an exodus from American stocks.”
Regional fed banking minutes showed that only 7 of 12 fed banks agreed to the 50 basis point cut in contrast to the fed’s unanimous decision to do so at their recent meeting, but eyes are now squarely focused on the fed’s upcoming Halloween meeting and what action will be taken there. Comments from Bernanke and Paulson noting that recovering from the deepening housing slump will likely take quite some time also had many on Wall Street talking today.
Tomorrow at 8:30AM EST brings CPI and Core CPI for September both expected at 0.2%. Housing Starts for September are expected at 1,285,000, Building Permits are expected at 1,300,000, and at 2PM is the release of the fed’s Beige Book.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil rose to new record heights at as high as $88.20 before settling at $87.61 on more concerns between Turkey and Kurdish rebels in Iraq despite the fact that Turkey’s prime minister announced late in the day that Turkey had no plans to enter Iraq anytime soon. All eyes now turn to tomorrow’s inventory reports.
The U.S. dollar index rebounded from near record lows and treasuries fell despite poor economic data and disappointing comments from Bernanke and Paulson as comments from ECB president Trichet reinforced the view that Europe will likely keep rates unchanged at their next meeting.
The Dow, Nasdaq, and S&P fell on more credit worries, record high oil, and concerning comments about housing from Bernanke and Paulson.
Among the big names making news in the market today were Genentech, Delta Air, Movie Gallery, J&J, and D.R. Horton.
The Commentary:
“December Gold finished down 0.2 at 762, 5.7 off the high and 3.5 up from the low.
December Silver closed down 0.197 at 13.658. This was 0.018 up from the low and 0.252 off the high.
It appeared as if the rest of the metals complex dragged the gold market down on Tuesday, as an early rally in gold seemed to fade in the face of even quicker reversals in silver, platinum and copper prices. While the Dollar was mostly higher throughout the trading session Tuesday, the gold market didn't seem to have a problem with the early strength in the Dollar and therefore the currency action doesn't seem to explain why gold fell back from its early highs. Some players suggested that significant weakness in equity prices served to undermine gold, as the whole subject of US and global slowing seemed to countervail the inflationary sentiment that was being thrown off by the energy complex. It is also possible that simple profit taking off an overbought status prompted the corrective setback from the fresh new highs.
With silver at times more than 20 cents lower on the session and gold mostly attempting to maintain a positive throughout the trading session, it was clear that silver and gold were trading divergent themes. With the action Tuesday, the silver market seems to have shifted its focus back toward the physical or industrial metals focus and therefore any fresh concerns of slowing growth might have been seen as an undermine to silver prices. Like the gold market a moderately overbought speculative condition in silver probably resulted in some technical selling on Tuesday.”- The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
New Treasury documents reveal loans, swaps of U.S. gold
Ted Butler: Rope-A-Dope?
Robert K. Landis: Musings on the realms of GLD
IMF chief changes position, says dollar has room to fall
The Statistics:
As of close of business: 10/16/2007
Gold Warehouse Stocks: | 7,316,383 | +5,403 |
Silver Warehouse Stocks: | 133,776,476 | +117,304 |
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 | 593.22 | 19,072,654 | US$ 14,471m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 97.89 | 3,147,160 | US$ 2,389m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 15.06 | 483,939 | US$ 368m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 18.21 | 585,392 | US$ 444m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU)
Profile as of 10/15/2007 | |
Total Net Assets | $1,250,749,030 | Ounces of Gold
in Trust | 1,652,286.806 |
Shares Outstanding | 16,700,000 | Tonnes of Gold
in Trust | 51.39 |
Note: No change in Total Tonnes from yesterday’s data.
Silver Trust (SLV)
Profile as of 10/15/2007 | |
Total Net Assets | $2,001,167,708 | 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:
Gold Fields’ (GFI) one day mine closing, Rubicon’s (RBY) exploration update, Golden Star’s (GSS) optioned properties, Polyus’ (PLZL.MM) reappointed executives, Seabridge’s (SA) assay results, Teck Cominco’s (TCKb.TO) gold options, MAG Silver’s (MVG) board appointments, Silvercorp’s (SVM.TO) comments on lead prices, ECU’s (ECU.TO) vein extension, Alexco’s (AXU) drill results, and IMPACT’s (IPT.V) warrant exercise were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Banro | BAA +6.94% $13.25 |
2. Minco Gold | MGH+4.46% $1.1699 |
3. Allied Nevada | ANV +2.93% $7.02 |
LOSERS
1. Metalline | MMG-12.78% $3.07 |
2. Rubicon | RBY -12.56% $1.95 |
3. Paramount | PZG -6.78% $2.20 |
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:
Radius Gold Inc.: Update on Nicaragua Exploration Programs - More
- October 16, 2007 | Item | E-mail
Bayswater to Acquire Northern Canadian Uranium Inc. - More
- October 16, 2007 | Item | E-mail
Houston Lake Mining Raises $750,000 in Flow-Through Financing With MineralFields Group & Max Capital Markets - More
- October 16, 2007 | Item | E-mail
Global Finishing, Inc.: Results From Underground Work Program at the Ruby Mine - More
- October 16, 2007 | Item | E-mail
NWT confirms uranium occurrences at North Rae, Quebec - More
- October 16, 2007 | Item | E-mail
Duran Reports Positive Results From Hole 5 in Transition Zone Between Aguila and Aguila East - More
- October 16, 2007 | Item | E-mail
MacMillan Reports Positive Results From Hole 5 in Transition Zone Between Aguila and Aguila East - More
- October 16, 2007 | Item | E-mail
Mosquito Intersects Excellent Mineralization at Cumo Hole 29 Returned 2,000 Feet Grading Greater Than 0.1% Molybdenite - More
- October 16, 2007 | Item | E-mail
Murgor drill hole (number sign)3 extends the Wim Copper-Gold deposit by 120 meters in northern Manitoba - More
- October 16, 2007 | Item | E-mail
Gold Seeker Closing Report: Gold and Silver End Mixed After Earlier Gains