-- Posted Thursday, 8 November 2007 | Digg This Article
| Source: GoldSeek.com
| Close | Gain/Loss |
Gold | $835.20 | +$4.50 |
Silver | $15.47 | +$0.18 |
XAU | 189.44 | +0.48% |
HUI | 447.63 | -0.06% |
GDM | 1398.10 | -0.23% |
JSE Gold | 2622.29 | +3.08% |
USD | 75.44 | -0.12 |
Euro | 146.67 | -0.03 |
Yen | 89.04 | +0.59 |
Oil | $95.46 | -$0.91 |
10-Year | 4.273% | -0.061 |
T-Bond | 114.0625 | +0.34375 |
Dow | 13266.29 | -0.25% |
Nasdaq | 2696.00 | -1.92% |
S&P | 1474.77 | -0.06% |
The Metals:
Gold eventually fell slightly in mixed trade in Asia to as low as $826.85 before it rebounded in London and rose to find about $15 gains at as high as $845.65 by late morning in New York, but it then sold off markedly in afternoon trade and dropped to as low as $830.40 ahead of a nearly $5 rebound into the close that left it with a gain of 0.54% at a new 27 year high.
“Gold futures surged to finish at a record closing high of $837.50 an ounce on Thursday, topping the previous session's record by $4. The yellow metal was boosted by the dollar's fall against major rivals after Federal Reserve Chairman Ben Bernanke said that the weaker dollar is a key inflation risk. Gold for December delivery finished up $4 at $837.50 an ounce on the New York Mercantile Exchange. The previous record close was $833.50, set on Wednesday. The all-time high for a gold contract is still $875, set on Jan. 21, 1980.”
Silver fell to as low as $14.92 in Asia before it rose to as high as $15.802 by about noontime in New York, but it also sold off markedly in the last couple hours of trade and dropped to $15.37 before it bounced back higher in the last 15 minutes of trade and ended with a gain of 1.18% at a new 27 year high.
Euro gold remained at a record high above €568, platinum gained $4 to $1460, palladium remained unchanged at $372, and copper fell nearly 5 cents to about $3.27.
Gold and silver equities rose over 2% in the first 5 minutes of trade before they were dragged lower by general market weakness for most of the rest of day and saw about 1% losses by early afternoon, but they then rallied back higher in the last hour of trade and ended mixed and near unchanged.
NYMEX to raise gold and silver futures margins – Reuters
Gold hedging falls 2.1 mln oz in Jul-Sept - Mitsui - Reuters
The Economy:
Report | For | Reading | Expected | Previous |
Initial Claims | 11/03 | 317K | 325K | 330K |
Bernanke spoke before the joint economic committee and his testimony was overall taken to be dovish and supportive of another interest rate cut at the fed’s next meeting on December 11th as he noted “sluggish” US growth. As a result the chances for a fed rate cut at their next meeting went from 80-85% before his testimony to 115% after, meaning that some are looking for more than just a 25 basis point cut.
Tomorrow at 8:30AM EST brings Import and Export Prices for October 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 rose in early trade on geopolitical issues, a storm brewing in the North Sea, and a fire at a Bolero refinery in Texas, but gains turned to losses in later trade after natural gas stocks rose by 36 billion cubic feet and Bernanke’s dovish outlook suggested weaker demand going forward.
The U.S. dollar index ended off its lows but still ended at a new record low on Bernanke’s outlook for “sluggish” US growth that hinted towards further interest rate decreases from that fed that in turn sent treasuries higher while the yield on the 10-year fell under 4.275% for the first time in over two years.
The Dow and S&P fell for most of trade on mixed retail sales reports, more credit worries, and cautious Bernanke testimony while the Nasdaq was especially hit as Cisco noted a falloff in orders from US financial institutions in its earnings report today. This was discouraging to many as they previously believed the tech sector would remain immune to recent and ongoing problems in the credit market. The Dow and S&P were on track for the biggest 2 day decline since 2003, but out of nowhere they rallied back higher in the last hour of trade and ended only slightly lower. The Nasdaq closed off its lows but still scored its biggest 2 day decline since 2002.
Among the big names making news in the market today were Hansen Natural, McDonald’s, Cisco, Rio Tinto and BHP Billiton, Ford, Wal-Mart, Limited, Nordstrom, Morgan Stanley, and Marsh & McLennan.
The Commentary:
“Bernanke’s remarks today were not clear in their support for the diminishing US Dollar. Integrity in our financial institutions and the US Dollar are falling quickly. Restoring confidence is very difficult to undertake with current circumstances and the result is greater interest in real money. Gold’s integrity does not need to be questioned and that brings a level of confidence the US Dollar simply cannot produce as it loses its global appeal. Over the coming days and weeks, I would expect an attempt to stabilize the situation because at the current moment, it appears to be getting out of control. The big question on my mind is: Are the mechanisms of control used to stabilize situations able to do so at this time? Or is the situation so much larger that it is at the mercy of the free markets forces?
This is not a time I would want to be short gold or out of gold. Times like these are precisely the reason investors have gold and silver in their portfolios. It is an insurance policy against circumstances we are witnessing at this time.”- Peter Spina, www.goldforecaster.com
“December Gold finished up 4 at 837.5, 10 off the high and 5 up from the low.
December Silver closed up 0.19 at 15.515. This was 0.075 up from the low and 0.315 off the high.
The gold market seemed to forge a quasi double top with a rally Thursday that failed to hold. Apparently some traders were concerned that the sharp slide in the equity markets might have rekindled slowing or deflationary concerns while other traders were pushed out of the market as a result of a sharp slide in the Canadian Dollar. In other words, a sharp retrenchment in the Canadian Dollar might have prompted some traders to fret over a potential bounce in the US Dollar. It is also possible that some gold bulls were prompted to bank profits after the Fed's prediction that it could take until the 2nd quarter of 2008 before the US economy "rebounded". In other words, the fear of slowing and the rather significant slide in the US equity market seemed to temper the perfect storm in gold.
In addition to seeing the gold market fall back rather significantly from its early Thursday highs, the silver market was also periodically undermined as a result of moderate ongoing weakness in copper prices. However, relatively speaking the Silver market held together rather impressively in the face of an intensifying of macro economic slowing fears. After two extremely volatile trading sessions it is possible that even more volatility is on the way for the final trading session of the week.”- The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Rio Tinto soars after spurned bid from Billiton
China aims at dollar but Europe could get hit as euro soars
Gold eyes all-time high on currency crisis fears
Flush with cash, Ron Paul has hopes for New Hampshire
Fed officials hint at potential for still lower interest rates
On the verge of a worldwide currency crisis
Peter Grandich explains support for GATA
James Turk: Gold's infallible indicator -- six months later
The Statistics:
As of close of business: 11/7/2007
Gold Warehouse Stocks: | 7,246,134 | - |
Silver Warehouse Stocks: | 133,383,610 | -507,458 |
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$ 16,025m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 97.86 | 3,146,355 | US$ 2,629m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 15.06 | 483,815 | US$ 405m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 18.57 | 597,100 | US$ 498m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU)
Profile as of 11/7/2007 | |
Total Net Assets | $1,446,475,089 | Ounces of Gold
in Trust | 1,740,769.772 |
Shares Outstanding | 17,600,000 | Tonnes of Gold
in Trust | 54.14 |
Note: Change in Total Tonnes from yesterday’s data: 1.23 tonnes were added to the trust.
Silver Trust (SLV)
Profile as of 11/7/2007 | |
Total Net Assets | $2,276,610,576 | 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:
A mining labor reform bill in Peru, Golden Star’s (GSS) completed debenture sale, ITH’s (THM) drill results, Minco’s (MGH) Plan of Arrangement update, Taseko’s (TGB) acquired Niobium project, Crystallex’s (KRY) expected Venezuelan permit, Aurizon’s (AZK) exploration results, Barrick’s (ABX) striking workers in Tanzania, Harmony’s (HMY) operation sale to Monarch, Scorpio’s (SPM.TO) drill results, Hecla’s (HL) third quarter results, and Silvermex’s (SMR.V) exploration results were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Anglo American | AAUK +13.8% $37.02 |
2. Crystallex | KRY +9.59% $3.20 |
3. Randgold | GOLD+5.56% $37.40 |
LOSERS
1. Minco Gold | MGH -9.49% $1.24 |
2. Exeter | XRA -8.53% $4.7199 |
3. Jaguar | JAG -7.14% $11.71 |
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:
Iberian Receives NI 43-101 Report on the Condestable Mine From SRK Consulting - More
- November 08, 2007 | Item | E-mail
DPM Third Quarter 2007 Financial Results Amendment - More
- November 08, 2007 | Item | E-mail
Callinan Receives First Net Profits Interest From HudBay Minerals Inc. - More
- November 08, 2007 | Item | E-mail
Baffinland Reports Further Assay Results - More
- November 08, 2007 | Item | E-mail
Nevoro Inc. Appoints New Chief Financial Officer and Vice President, Legal Affairs - More
- November 08, 2007 | Item | E-mail
First Gold Options Cottonwood Project in Nevada - More
- November 08, 2007 | Item | E-mail
Bonaventure Announces Joint Venture on the Cottonwood Property, Nevada - More
- November 08, 2007 | Item | E-mail
Geoinformatics Files NI 43-101 Technical Report on the Whistler Gold-Copper Porphyry Project in Alaska - More
- November 08, 2007 | Item | E-mail
Gold Seeker Closing Report: Gold and Silver Gain Roughly 1% More While Bernanke Speaks