-- Posted Wednesday, 7 November 2007 | Digg This Article
| Source: GoldSeek.com
| Close | Gain/Loss |
Gold | $830.70 | +$10.00 |
Silver | $15.29 | +$0.05 |
XAU | 188.53 | -2.40% |
HUI | 447.90 | -1.76% |
GDM | 1401.39 | -1.83% |
JSE Gold | 2543.88 | +2.96% |
USD | 75.56 | -0.48 |
Euro | 146.70 | +1.14 |
Yen | 88.45 | +1.09 |
Oil | $96.37 | -$0.33 |
10-Year | 4.334% | -0.023 |
T-Bond | 113.71875 | -0.03125 |
Dow | 13300.02 | -2.64% |
Nasdaq | 2748.76 | -2.70% |
S&P | 1475.62 | -2.94% |
The Metals:
Gold extended yesterday’s record run higher in after hours access trade and continued to climb in Asia and London to see nearly $25 gains at as high as $845.65 before it fell back off for most of trade in New York, but it still ended with a gain of 1.22% at a new 27 year high. Silver added nearly a dollar to yesterday’s advance at as high as $16.21 in early London trade before it also fell back off in New York, but it still ended with a gain of 0.33% at a new 27 year high of its own.
“Gold futures rallied to close at a new record high of $833.50 an ounce on Wednesday, as a broad-based sell-off in the U.S. dollar boosted the metal's appeal as an inflation hedge and a safe haven. On the New York Mercantile Exchange, gold for December delivery rallied $10.10 to end at $833.50, a record closing high for a front-month gold contract. The previous record settle was $825.50 set on Jan. 21, 1980. The record high for a gold contract is still $875 set on the same date.”
Euro gold rose to a new record high above €568, platinum lost $17 to $1456, palladium lost $3 to $372, and copper fell nearly 10 cents to about $3.32.
Gold and silver equities rose to new record highs with nearly 2% gains at the open, but they then fell off with the major indices in afternoon trade and ended with roughly 2% losses.
The Economy:
Report | For | Reading | Expected | Previous |
Productivity | Q3 | 4.9% | 3.1% | 2.2% |
Wholesale Inventories | Sep | 0.8% | 0.1% | 0.7% |
Consumer Credit | Sep | $3.7B | $8.5B | $15.4B |
Tomorrow at 8:30AM EST brings Import and Export Prices for October, Initial Jobless Claims for 11/03, and the Trade Balance for September expected at -$58.5 billion. At 10AM is the preliminary reading for Michigan Sentiment expected at 80.0.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil fell after inventories declined less than expected and a markedly weak general market raised concerns over demand going forward, but it did end just slightly lower after it had climbed to a new record high above $98 in earlier trade. Oil and gasoline inventories both fell 800,000 barrels, distillates built 100,000 barrels, and refinery utilization remained unchanged at 86.2%.
The U.S. dollar index fell nearly 1% more to yet another new record low on more comments from China that they may adjust their reserves. Traders also looked forward to tomorrow’s European Central Bank and Bank of England meetings that are expected to keep interest rates unchanged despite a declining fed funds rate in the US.
Treasuries rose as the Dow, Nasdaq, and S&P fell nearly 3% on worries over a record low dollar that continues to plunge on concerns over the credit market.
Among the big names making news in the market today were Fannie Mae and Freddie Mac, Sara Lee, General Motors, and Time Warner.
The Commentary:
“December Gold finished up 10.1 at 833.5, 10 off the high and 2.5 up from the low.
December Silver closed down 0.055 at 15.325. This was 0.055 up from the low and 0.475 off the high.
The gold market traded higher on Wednesday as another sharp decline in the Dollar and early gains in crude oil prices continued to fan inflation concerns. Flight to safety buying in gold was also evident since the stock market plunged lower on fears that more financial service companies will reveal big losses tied to the subprime mortgage crisis. This outlook along with comments from Fed member Poole are raising expectations the Fed will cut rates again in December. However, with gold approaching the key $850 per ounce level, it appears some traders decided to take profits during the session which trimmed gains and left gold to trade in the mid to lower range of Wednesday's session. A turn lower in crude oil during the session may have also been a factor capping gains in gold. However, the environment for gold remains bullish and a report that China will be diversifying out of their Dollar reserve holding is certainly a bullish development for gold.
After an early surge higher in silver, profit taking significantly trimmed gains. Certainly the market had become over bought after seeing a sharp move higher over the past 4 sessions. However, we suspect the market was also undermined by news that Peru's government deemed the mine worker's strike illegal. If workers didn't return to the mine, it would mean mining companies could fire striking workers and in effect cut short any disruption in silver production. We also suspect the silver market is being undermined by the sharp sell off in equity markets since it dampens the macro economic outlook which impacts silver as an industrial metal.”- The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Dollar falls to record low on Chinese talk of diversifying reserves
Risk of mortgage securities fire sale mounts
Dollar falls off cliff; 'Midas' commentary posted at GoldSeek
Downgrade of bond insurers may prompt new credit panic
Roger Wiegand: Breakout day for commodities
Ron Paul invests mostly in precious metals and commodities
Ron Paul's one-day Internet donation haul is Republican record
The Statistics:
As of close of business: 11/6/2007
Gold Warehouse Stocks: | 7,246,134 | -100,559 |
Silver Warehouse Stocks: | 133,891,068 | - |
Global Gold ETF Holdings
[WGC Sponsored ETF’s]
| Product name | Total Tonnes | Total Ounces | Total Value |
New York Stock Exchange (NYSE) AND Singapore Exchange (SGX) | Streettracks Gold Shares | 597.35 | 19,205,266 | US$ 15,795m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 97.86 | 3,146,390 | US$ 2,625m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 15.06 | 483,820 | US$ 404m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 18.57 | 597,107 | US$ 491m |
Note: Change in Total Tonnes from yesterday’s data: The NYSE/SGX subtracted 0.18 tonnes.
COMEX Gold Trust (IAU)
Profile as of 11/6/2007 | |
Total Net Assets | $1,396,263,309 | Ounces of Gold
in Trust | 1,701,209.307 |
Shares Outstanding | 17,200,000 | Tonnes of Gold
in Trust | 52.91 |
Note: No change in Total Tonnes from yesterday’s data.
Silver Trust (SLV)
Profile as of 11/6/2007 | |
Total Net Assets | $2,152,869,114 | Ounces of Silver
in Trust | 143,919,713.200 |
Shares Outstanding | 14,500,000 | Tonnes of Silver
in Trust | 4,476.40 |
Note: No change in Total Tonnes from yesterday’s data.
The Stocks:
Workers returning to work in Peru, Paramount’s (PZG) private placement, Minco Gold’s (MGH) business license, Seabridge’s (SA) completed drill program, Pacific Rim’s (PMU) extended land sale closing date, Exeter’s (XRA) metallurgical testwork, Taseko’s (TGB) mine expansion update, Apollo Gold’s (AGT) drill contract, Vista Gold’s (VGZ) board of director change, UC Resource’s (UC.V) financials filing delay, and Silver Standard’s (SSRI) increased resources were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Minco Gold | MGH+5.38% $1.37 |
2. IAMGOLD | IAG +5.38% $9.59 |
3. Paramount | PZG+4.93% $2.34 |
LOSERS
1. Vista Gold | VGZ-13.74% $6.28 |
2. Nevsun | NSU -9.92% $2.18 |
3. Rubicon | RBY -7.28% $1.91 |
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:
Uranium 308 Corp. Names David Lorge as Vice-President of Exploration - More
- November 07, 2007 | Item | E-mail
Yukon-Nevada Gold Corp. lists warrants on the TSX - More
- November 07, 2007 | Item | E-mail
Paramount Gold and Silver Corp. Announces $2.4 Million Private Placement - "Paramount Gold and Silver Corp. (Toronto:PZG-TO.TO - News)(AMEX:PZG - News)(Frankfurt:P6G.F - News)(WKN: A0HGKQ) is pleased to announce a US$2.4 Million private placement financing of restricted stock at US$2.40 per unit. Each unit is comprised of one share of restricted common stock and one common share purchase warrant ("Unit"). Each warrant is exercisable to acquire one common share at an exercise price of US$3.25 for a period of two years." More
- November 07, 2007 | Item | E-mail
Seafield Encouraged by Picachos Sampling-4,975 Grams per Tonne (g/t) Silver, 8.61 g/t gold (0.25 Ounce/Tonne) - More
- November 07, 2007 | Item | E-mail
MDN Provides Corporate Development Update - More
- November 07, 2007 | Item | E-mail
Purepoint Uranium Group Inc.: Drilling Commences at Hook Lake Project - More
- November 07, 2007 | Item | E-mail
Vior Releases Inferred Resource Estimate of 1.8 Million Ounces of Gold for Douay - More
- November 07, 2007 | Item | E-mail
DRC Justice Minister Confirms Akam Mining Purchased Non Existent Shares - More
- November 07, 2007 | Item | E-mail
Adventure Gold Appoints Marco Gagnon as President & Ceo - More
- November 07,
Gold Seeker Closing Report: Gold and Silver Gain Again While Dollar Continues Plunge