-- Posted Tuesday, 30 October 2007 | Digg This Article
| Source: GoldSeek.com
| Close | Gain/Loss |
Gold | $784.40 | -$4.20 |
Silver | $14.26 | -$0.06 |
XAU | 180.70 | -2.57% |
HUI | 419.21 | -2.21% |
GDM | 1323.05 | -1.88% |
JSE Gold | 2477.52 | -0.63% |
USD | 76.74 | -0.08 |
Euro | 144.26 | +0.01 |
Yen | 87.08 | -0.14 |
Oil | $90.38 | -$3.15 |
10-Year | 4.383% | UNCH |
T-Bond | 113.59375 | -0.0625 |
Dow | 13792.47 | -0.56% |
Nasdaq | 2816.71 | -0.03% |
S&P | 1531.02 | -0.65% |
The Metals:
Gold fell a few dollars in Asia and held near $784 in London before it dropped to as low as $778.95 by 10AM EST in New York, but it then rallied back higher into the close and ended with a loss of just 0.53%. Silver dropped to as low as $14.10 in New York before it also rallied back higher in the last few hours of trade and ended over 1% off its low with a loss of 0.42%.
Euro gold fell back under €542, platinum lost $16 to $1428, palladium lost $4 to $367, and copper fell over 3 cents to about $3.53.
Gold and silver equities fell roughly 2% at the open and remained near their lows into the close.
European central banks averaging 7.5 tonnes per week in gold sales
Resource Investor
The Economy:
Report | For | Reading | Expected | Previous |
Consumer Confidence | Oct | 95.6 | 99.5 | 99.5 |
Tomorrow at 8:30AM EST brings 3rd quarter GDP expected at 3.1%, the Chain Deflator expected at 2.0%, and the Employment Cost Index expected at 0.9%. At 9:45 is Chicago PMI for October expected at 53.0, at 10AM is Construction Spending for September expected at -0.4%, and at 2:15 is the highly anticipated FOMC policy statement that is expected to announce a 25 basis point cut in the fed funds rate.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil fell over 3% back near $90 as production came back online in Mexico, Goldman Sachs advised to take profits in the recent record run, and traders prepared for tomorrow’s inventory reports that are expected to show builds in supplies.
The U.S. dollar index and treasuries ended slightly lower but near unchanged as traders waited for tomorrow’s fed announcement. A WSJ article released this morning raised some doubts over whether the fed will indeed cut rates tomorrow and that gave some strength to the dollar and ignited some selling in bonds early on, but by the close fed fund futures were still predicting about a 91% chance that the fed will cut by 25 basis points tomorrow and that sent to the dollar to another new record low.
The Dow, Nasdaq, and S&P traded mostly slightly lower on uncertainty before tomorrow’s fed announcement.
Among the big names making news in the market today were Merrill Lynch, Procter & Gamble, and Avon.
The Commentary:
“It is the investment aspect of gold that is driving the gold price to new heights as the $, oil and uncertainty and trepidation turn even large professional funds turn to gold for part of their portfolios, even if only to counter the $’s moves. Gold is now being driven by factors outside the market so can break through old heights.” - Julian D.W. Phillips, www.goldforecaster.com
“December Gold finished down 4.8 at 787.8, 0.6 off the high and 5.6 up from the low.
December Silver closed down 0.102 at 14.328. This was 0.123 up from the low and 0.037 off the high.
After an initial weak start to the session, December gold managed to fall moderately below the prior session's lows only to recover within striking distance of that prior low just ahead of the close. Apparently the market was having second thoughts about the prospect of a Fed cut on Tuesday and that at times resulted in a slight rally in the US Dollar. With oil prices also making the most significant corrective slide since the end of September, it was clear that a profit taking mentality was being seen in a number of markets. With grain markets also down in sync with oil prices one could suggest that gold was seeing a bit of deflationary selling.
Like the gold market silver prices ended up favoring the downside throughout most of the Tuesday trading session. While the copper market managed to cut its losses late in the session, that key outside market seemed to contribute to the silver bear case for most of the session. Seeing a weaker than expected US Consumer Confidence reading and portions of the equity market weaken after seeing the December contract reach the highest level since February 28th, probably prompted some silver longs to bank profits.”- The Hightower Report, Futures Analysis and Forecasting
The Statistics:
As of close of business: 10/29/2007
Gold Warehouse Stocks: | 7,355,597 | - |
Silver Warehouse Stocks: | 132,972,532 | +310,650 |
Global Gold ETF Holdings
[WGC Sponsored ETF’s]
| Product name | Total Tonnes | Total Ounces | Total Value |
New York Stock Exchange (NYSE) AND Singapore Exchange (SGX) | Streettracks Gold Shares | 597.53 | 19,211,042 | US$ 15,143m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 97.87 | 3,146,670 | US$ 2,461m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 15.06 | 483,864 | US$ 379m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 18.33 | 589,255 | US$ 464m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU)
Profile as of 10/29/2007 | |
Total Net Assets | $1,326,842,990 | Ounces of Gold
in Trust | 1,681,961.330 |
Shares Outstanding | 17,000,000 | Tonnes of Gold
in Trust | 52.31 |
Note: No change in Total Tonnes from yesterday’s data.
Silver Trust (SLV)
Profile as of 10/29/2007 | |
Total Net Assets | $2,073,942,331 | Ounces of Silver
in Trust | 143,977,749.600 |
Shares Outstanding | 14,500,000 | Tonnes of Silver
in Trust | 4,478.21 |
Note: Change in Total Tonnes from yesterday’s data: 15.44 tonnes were added to the trust.
The Stocks:
Harmony Gold’s (HMY) fourth-quarter headline loss, New Gold’s (NGD) completion of two Letters of Intent, Barrick’s (ABX) production halt, U.S. Energy’s (USEG) investor updates, Exeter’s (XRA) project acquisition, Taseko’s (TGB) closed public offering, Richmont’s (RIC) exploration results, Silver Dragon’s (SDRG.OB) completed Phase 1 of the exploration and development program, Fury’s (FUR.V) mine reopening timeline, and Arian’s (AGQ.V) drill results were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Exeter | XRA +14.22% $5.06 |
2. DRDGOLD | DROOY+7.03% $9.29 |
3. Cardero | CDY +3.03% $2.04 |
LOSERS
1. Claude Resources | CGR -8.48% $1.51 |
2. Lihir Gold | LIHR -7.01% $38.08 |
3. Orezone | OZN -6.06% $1.55 |
Winners & Losers tracks NYSE and AMEX listed gold and silver mining stocks that trade over $1.
All of today's gold and silver stock news:
Global Finishing Signs a Working Agreement - More
- October 30, 2007 | Item | E-mail
Gold Bullion Signs a Working Agreement - More
- October 30, 2007 | Item | E-mail
Sage Announces Private Placement - More
- October 30, 2007 | Item | E-mail
Mine Prospects Advance for Klondike Star's Indian River Gold Project With 2007 Exploration Results - More
- October 30, 2007 | Item | E-mail
Update on Typhoon's Projects in Quebec - More
- October 30, 2007 | Item | E-mail
Reno Gold Corp. Reports on Recent Meetings in Toronto - More
- October 30, 2007 | Item | E-mail
Cadiscor Closes C$ 1 Million Flow-Trough Private Placement - More
- October 30, 2007 | Item | E-mail
Hard Creek Nickel Exercised Warrants - More
- October 30, 2007 | Item | E-mail
Kodiak Significantly Extends Golden Mile Strike/Identifies Multiple Parallel Structures - More
- October 30, 2007 | Item | E-mail
Anglo-Canadian Uranium Announces Appointment to Advisory Board and Corporate Secretary - More
- October 30, 2007 | Item | E-mail
Trend Announces That 5,000 Metre Drill Program Begins at Diabase Peninsula Uranium Property - More
- October 30, 2007 | Item | E-mail
Dorex Minerals Inc. Increases Financing - More
- October 30, 2007 | Item | E-mail
Gold Crest Mines Inc. Reports on Golden Dyke Exploration
Gold Seeker Closing Report: Gold and Silver Lose About 0.5% Before Fed Tomorrow