-- Posted Wednesday, 24 October 2007 | Digg This Article
| Source: GoldSeek.com
| Close | Gain/Loss |
Gold | $761.60 | +$2.60 |
Silver | $13.47 | -$0.0.7 |
XAU | 175.89 | +0.51% |
HUI | 407.33 | +0.54% |
GDM | 1274.43 | +0.42% |
JSE Gold | 2458.13 | -1.08% |
USD | 77.54 | -0.03 |
Euro | 142.51 | UNCH |
Yen | 87.65 | +0.52 |
Oil | $87.10 | +$1.83 |
10-Year | 4.331% | -0.074 |
T-Bond | 113.9375 | +0.75 |
Dow | 13675.25 | -0.01% |
Nasdaq | 2774.76 | -0.88% |
S&P | 1515.88 | -0.24% |
The Metals:
Gold fell nearly $5 to as low as $754.15 by late trade in London, but it then rose throughout most of the New York session and ended near its high of the day with a gain of 0.34%. Silver dropped to as low as $13.38 by late trade in London and revisited that low in late morning New York trade before it rebounded in afternoon trade, but it still ended with a loss of 0.52%.
Euro gold rose to over €535, platinum lost $7 to $1438, palladium lost $2 to $358, and copper fell roughly 5 cents to about $3.50.
Gold and silver equities dropped about 2% by late morning, but they then rallied back higher in afternoon trade and ended with about 0.5% gains.
The Economy:
Report | For | Reading | Expected | Previous |
Existing Home Sales | Sep | 5.04M | 5.25M | 5.50M |
Existing Home Sales fell a whopping 8%, which was much more than low expectations and the largest drop on record.
Tomorrow at 8:30AM EST brings Initial Jobless Claims for 10/20 expected at 320,000 and the Durable Goods Orders report for September expected at 1.5%. At 10AM is the New Home Sales report for September expected at 775,000.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil rose over 2% after a surprise drop in inventories and an escalation of tensions between Turkey and Iraq. Crude inventories fell 5.3 million barrels, gasoline inventories fell 2.0 million barrels, and distillates fell 1.8 million barrels. Heating oil rose to a new record intraday high at $2.351 a gallon.
The U.S. dollar index fell and treasuries rose after Existing Home Sales fell by the largest amount on record. Traders are now pricing in about a 14% chance through fed fund futures that the fed will cut rates by a full 50 basis points next week rather than just 25 basis points as most expect. 2-year note yields fell to a new 28 month low at one point as subprime mortgage related write downs reignited worries over the credit market as well.
The Dow, Nasdaq, and S&P fell markedly in morning trade on poor earnings reports as Amazon disappointed in the tech sector and Merrill Lynch disappointed in the financial world due to write downs related to bad bets on risky subprime mortgages and related securities, but the Nasdaq and S&P rebounded to close well off their lows and the Dow nearly found a small gain on rumors that the fed will cut interest rates by another 50 basis points next week or even take action before then with a cut in the discount rate in the next day or two.
Among the big names making news in the market today were Anheuser-Busch, Merrill Lynch, Boeing, Ambac, Northrop, and Amazon.
The Commentary:
“December Gold finished up 2.5 at 765.6, 1.4 off the high and 6.6 up from the low.
December Silver closed down 0.06 at 13.59. This was 0.11 up from the low and 0.025 off the high.
While the gold market managed to waffle around both sides of unchanged throughout the trading session Wednesday, the flow of fundamental news wasn't that beneficial to the bull case. With the existing home sales report and the US equity market pointing to the prospect of significant US economic slowing ahead it was clear that gold was periodically under physical selling pressure along with the rest of the metals markets. The market could have been supported by news that the Venezuelan government was set to look into a Gold Fields sale of a mine in that country to a Canadian concern. With the Venezuelan government basically taking control of a number of energy interests over the last year, it wouldn't be a surprise to see some type of seizure of mining assets and that could eventually be considered somewhat supportive of gold prices from a supply threat standpoint. In the end, gold's attempts to stay in positive ground on Wednesday in the face of distinct weakness in the rest of the metals markets would seem to suggest that some players were attempting to play up the flight to quality angle in the wake of the big credit market write down and the poor Us housing data.
While gold prices successfully managed to waffle on both sides of unchanged throughout the trading session the silver market was relatively weaker than gold for most of the trading session. Seeing silver under relatively more selling pressure than gold wasn't surprising considering that the macro economic outlook was once again coming under significant pressure. Certainly weak existing home sales readings, sharp declines in equity prices and significant declines in copper prices gave silver additional pressure from a demand perspective.”- The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Ted Butler: Money for nothing
Commodities advocate Rogers dumping dollars for yuan
The Statistics:
As of close of business: 10/23/2007
Gold Warehouse Stocks: | 7,355,597 | - |
Silver Warehouse Stocks: | 134,157,714 | -113,048 |
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$ 14,488m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 97.88 | 3,146,880 | US$ 2,404m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 15.06 | 483,896 | US$ 370m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 18.33 | 589,293 | US$ 446m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU)
Profile as of 10/23/2007 | |
Total Net Assets | $1,253,778,240 | 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 10/23/2007 | |
Total Net Assets | $1,946,429,138 | 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:
Freeport’s (FCX) third-quarter profit, DRDGOLD’s (DROOY) resumed mining, Barrick’s (ABX) miner rescue, Golden Star’s (GSS) debenture pricing, Angloplat’s (AMSJ.J) and Northam’s (NHMJ.J) reopened operations, and Tumi’s (TUMIF.OB) completed airborne EM survey were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. NovaGold | NG +5.90% $18.32 |
2. US GOLD | UXG+3.92% $4.77 |
3. Exeter | XRA +3.27% $4.10 |
LOSERS
1. Golden Star | GSS -7.59% $3.53 |
2. Almaden | AAU -5.23% $2.72 |
3. Alexco | AXU -3.79% $5.84 |
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:
Canadian Royalties-Nunavik Nickel Project Allammaq Update: Deposit Expanded On-Strike With Significant Intersections of High-Grade Mineralization - More
- October 24, 2007 | Item | E-mail
Orex Exploration Inc.: Corporate Restructuring - More
- October 24, 2007 | Item | E-mail
Kornze appointed as VP of Exploration - More
- October 24, 2007 | Item | E-mail
Tumi Completes Airborne EM Survey on Three Licence Areas in Sweden - "Tumi Resources Limited (the "Company") (TSX VENTURE:TM - News; OTCBB:TUMIF - News; FRANKFURT:TUY - News) - Mr. David Henstridge, President, announces the completion of a helicopter-borne electromagnetic (EM) and magnetic survey over three of the Company's 100% owned mineral exploration licences located in the Bergslagen District, Sweden." More
- October 24, 2007 | Item | E-mail
Sulliden Continues As Owner Of Shahuindo Property - More
- October 24, 2007 | Item | E-mail
Noront Resources Annual General Meeting - More
- October 24, 2007 | Item | E-mail
Escala to Produce Zinc, Silver, Lead - More
- October 24, 2007 | Item | E-mail
Knight Resources Ltd.: Additional Assays From West Raglan Pending - More
- October 24, 2007 | Item | E-mail
Freeport McMoRan profit up but gold outlook down - "Freeport McMoRan Copper & Gold Inc (FCX.N: Quote, Profile, Research) said on Wednesday third-quarter profit more than doubled but it has hit low-grade ores at its vast Grasberg mine in Indonesia and expects gold production there to be one-third lower next year." More
- October 24, 2007 | Item | E-mail
Taranis Intersects 11.17% Zn & 1.26 g/t Au Over 3.57 m in True Fissure Zone, Expands Zone to North - More
- October 24, 2007 | Item | E-mail
GLR Resources Announces Analyst Research Coverage - More
- October 24, 2007 | Item | E-mail
Platinex to Issue KI Warrants in Trust - More
- October 24, 2007 | Item | E-mail
Thistle concludes Consent Agreement and Receipts and Acknowledgement Deed pursuant to a debt restructuring plan -
Gold Seeker Closing Report: Gold and Silver End Mixed While Oil Surges Back