-- Posted Wednesday, 17 October 2007 | Digg This Article
| Source: GoldSeek.com
| Close | Gain/Loss |
Gold | $757.00 | -$0.20 |
Silver | $13.65 | +$0.12 |
XAU | 172.74 | -1.96% |
HUI | 401.96 | -2.23% |
GDM | 1270.47 | -1.06% |
JSE Gold | 2529.82 | -0.64% |
USD | 78.09 | -0.16 |
Euro | 141.83 | +0.20 |
Yen | 85.86 | +0.19 |
Oil | $87.40 | -$0.21 |
10-Year | 4.546% | -0.109 |
T-Bond | 111.6875 | +1.28125 |
Dow | 13892.54 | -0.15% |
Nasdaq | 2792.67 | +1.04% |
S&P | 1541.24 | +0.18% |
The Metals:
Gold eventually fell slightly to as low as $755.30 by late trade in Asia before it rose in London and found nearly 1% gains at $764.15 by a little before 10AM EST in New York, but it then fell back off into the close and ended with a loss of 0.03%. Silver dropped to as low as $13.48 in Asia and rose to as high as $13.82 by midmorning New York trade before it also fell back off into the close, but it still ended with a respectable gain of 0.89%.
Euro gold fell slightly under €533, platinum gained $24 to $1435 to a new record high, palladium gained $4 to $369, and copper fell nearly 4 cents to about $3.64.
Gold and silver equities rose over 1% at the open, but they then steadily fell for the rest of trade and ended with about 2% losses.
The Economy:
Report | For | Reading | Expected | Previous |
CPI | Sep | 0.3% | 0.2% | -0.1% |
Core CPI | Sep | 0.2% | 0.2% | 0.2% |
Housing Starts | Sep | 1191K | 1285K | 1327K |
Building Permits | Sep | 1226K | 1300K | 1326K |
The IMF lowered its global growth forecast in part due to the housing slowdown in the U.S. and that started to really concern some as most have held that a U.S. housing slowdown would not greatly impact world economic growth. This rings especially true after housing warnings out of Paulson and Bernanke hit the market yesterday as they were among the many that previously held the opposite view that a poor housing market would not have a significant adverse impact on other sectors. Stagflation was a word heard more than once from several analysts today.
The fed’s Beige Book was pretty gloomy overall as they noted housing problems, worker shortages, expensive imports due to a declining dollar, and slowing economic growth overall.
Tomorrow at 8:30AM EST brings Initial Jobless Claims for 10/13 expected at 315,000. At 10AM is the Leading Economic Indicators report for September expected at 0.3% and at noon is the Philadelphia Fed survey for October expected at 7.0.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil traded mixed as a very bearish inventory report battled bullish geopolitical concerns. After Turkish Prime Minister Tayyip Erdogan played down expectations of any imminent attack yesterday, “Turkey's parliament resoundingly approved a motion on Wednesday allowing troops to cross into northern Iraq to hunt down Kurdish rebels there, but its Western allies and Baghdad urged Ankara to refrain from military action.” That news sent oil to a new record high at as high as $89 at one point, but prices fell to find slight losses by the close as inventory reports came in better than expected almost across the board. Oil inventories built a slightly more than expected 1.8 million barrels, gasoline inventories built a more than expected 2.8 million barrels, and distillates surprisingly built 1.0 million barrels, but refinery utilization did fall 0.5% to 87.3%.
The U.S. dollar index fell back near new record lows and treasuries rose substantially as CPI came in about as expected and housing data came in even worse than low expectations yet again. When combined with recent concerning comments from Bernanke and Paulson and a lowered IMF global growth forecast today, speculation grew that the fed will continue to cut interest rates at their next meeting on Halloween and that appeared to be the chief driver of the currency and bond markets today as it often is.
The Dow, Nasdaq, and S&P opened higher on stronger than expected earnings reports before they all fell to find losses by early afternoon on increasing worries over the housing market and its impact on global economic growth, but all three indices ended well off their lows and only the Dow ended with a loss.
Among the big names making news in the market today were BlackRock, Gannett, Coca-Cola, JPMorgan, Altria, and United Technologies.
The Commentary:
“I am sure that “This is it!” Other than a pressing, and positive use for cash, I suggest holding tight to your investment positions.
When gold broke for the 2nd time above $400 in the seventies, I put the same word in the Sinclair Group weekly newsletter. Sure there were ups and downs but the up went higher each time with higher lows. This was the point I dropped the sell 1/3 rule and just said hold. We do not know what day it will blast past every short, thereby forcing them to cover in one the smallest markets for a major item in the world, played heavily by the largest interests in the world. I do feel that event is coming much sooner than I would have been willing to say last year. That means it could well go higher than $1650. That is to be determining as we pass $1000 for the third time.”- Jim Sinclair, More at JSMineset.com
“December Gold finished up 0.3 at 762.3, 6.9 off the high and 1.3 up from the low.
December Silver closed up 0.092 at 13.75. This was 0.08 up from the low and 0.15 off the high.
The gold market once again failed to hold an early rally and perhaps even more disappointing to the bull camp is the fact that the Dollar was mostly weaker throughout the trading session and that didn't seem to benefit the gold market. With the US equity market initially managing to stay positive in the aftermath of the 10.2% decline in US Housing starts and platinum and silver holding in positive ground for most of the session, the weakness in gold certainly seemed to be technically orientated instead of fundamentally based. It is also possible that the gold bulls are simply in need of another fresh new low in the Dollar to see buying interest return to the gold market.
Silver managed to clearly outperform gold throughout the session but it was clear that silver wasn't able to firm as much as the platinum market. The Press is starting to pick up on the fact that silver has recently performed better than gold but it would also seem like a majority of the trade continues to view the action in the Dollar and gold as a dominating force and therefore silver might not be able to forge a significant move without some form of similar action in the gold market. With another new low for the move in silver early Wednesday some traders are pointing to a 200 day moving average down to $13.47 as potential corrective target.”- The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Old U.S. Mint in New Orleans reopens Saturday with gold exhibit
GATA publicizes mobilization of U.S. gold; will you support our work?
'Stunning' flight from the dollar led by Japan and China
The Statistics:
As of close of business: 10/16/2007
Gold Warehouse Stocks: | 7,316,383 | - |
Silver Warehouse Stocks: | 133,776,476 | - |
Global Gold ETF Holdings
[WGC Sponsored ETF’s]
| Product name | Total Tonnes | Total Ounces | Total Value |
New York Stock Exchange (NYSE) AND Singapore Exchange (SGX) | Streettracks Gold Shares | 594.45 | 19,112,196 | US$ 14,461m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 97.89 | 3,147,125 | US$ 2,371m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 15.06 | 483,933 | US$ 365m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 18.33 | 589,339 | US$ 445m |
Note: Change in Total Tonnes from yesterday’s data: The NYSE/SGX added 1.23 tonnes and the JSE added 0.12 tonnes.
COMEX Gold Trust (IAU)
Profile as of 10/16/2007 | |
Total Net Assets | $1,250,570,094 | 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 10/16/2007 | |
Total Net Assets | $1,959,530,676 | 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:
Yamana’s (AUY) raised resource estimates, Fronteer’s (FRG) drill results, Apollo Gold’s (AGT) $8 million debt facility, Paramount’s (PZG) drill results, Jaguar’s update, IMA’s (IMR) judgment reply, Silver Eagle’s (SEG.TO) resource increase, SNS Silver’s (SNS.V) drill results, Abcourt’s (ABI.V) investor relations hire, Endeavour’s (EXK) record quarterly silver production, and Silver Dragon’s (SDRG.OB) private placement were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Kimber | KBX+8.78% $1.09 |
2. Endeavour | EXK+8.24% $3.94 |
3. Paramount | PZG+3.64% $2.28 |
LOSERS
1. Minco Gold | MGH-5.97% $1.1001 |
2. Almaden | AAU -4.97% $2.87 |
3. NovaGold | NG -4.80% $17.65 |
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:
Yamana Gold Third Quarter Financial Results Notification and Conference Call - "YAMANA GOLD INC. (Toronto:YRI.TO - News)(NYSE:AUY - News)(LSE:YAU.L - News) announces that as indicated in its press release dated October 15, 2007 the third quarter 2007 financial results will be released after the close of business on November 7, 2007. A conference call and audio webcast has been scheduled for November 8, 2007 at 11:00 a.m. EST to discuss the results." More
- October 17, 2007 | Item | E-mail
Pure Nickel's Salt Chuck Exploration Update - More
- October 17, 2007 | Item | E-mail
Evolving Gold Retains Investor Relations Firm - More
- October 17, 2007 | Item | E-mail
Western Keltic Mines Inc.: Positive Pre-Feasibility Study Results Advance the Kutcho Project to the Next Stage - More
- October 17, 2007 | Item | E-mail
IMA Files Reply to Supreme Court of Canada on Navidad Judgment - "IMA Exploration Inc. (CDNX:IMR.V - News)(AMEX:IMR - News)(Frankfurt:IMT.F - News)(Berlin:IMT.BE - News)(WKN: 884971) filed its reply to Aquiline's Response to IMA's application for Leave to Appeal to the Supreme Court of Canada on October 15, 2007. IMA's reply is reproduced below and will be posted on the Company's web site (www.imaexploration.com) and filed with SEDAR." More
- October 17, 2007 | Item | E-mail
Crescent Resources Assigns Boulder Lake Uranium Property, Manitoba - More
- October 17, 2007 | Item | E-mail
Gold Seeker Closing Report: Gold and Silver End Mixed After Earlier Gains Again