-- Posted Wednesday, 14 November 2007 | Digg This Article
| Source: GoldSeek.com
| Close | Gain/Loss |
Gold | $812.40 | +$15.40 |
Silver | $14.99 | +$0.44 |
XAU | 178.47 | +1.25% |
HUI | 423.66 | +1.48% |
GDM | 1316.36 | +1.14% |
JSE Gold | 2615.61 | +1.15% |
USD | 75.83 | -0.05 |
Euro | 146.69 | +0.74 |
Yen | 89.58 | -0.90 |
Oil | $94.09 | +$2.92 |
10-Year | 4.269% | +0.013 |
T-Bond | 114.40625 | UNCH |
Dow | 13223.93 | -0.62% |
Nasdaq | 2644.32 | -1.10% |
S&P | 1470.33 | -0.72% |
The Metals:
Gold steadily rose in Asia and London and climbed to as high as $815.15 by midmorning in New York before it fell back under $810 by late morning, but it then rallied back higher in the last two hours of trade and ended near its session high with a gain of 1.93%. Silver followed a similar pattern and made a high of $15.102 before it closed with a gain of 3.02%.
Euro gold rose to nearly €555, platinum gained $25 to $1440, palladium remained unchanged at $369, and copper rose over 16 cents to about $3.30 on news of an earthquake in Northern Chile that disrupted power to several mines.
Gold and silver equities went up over 3% at the open before they cut into their gains just slightly for most of the rest of the day and fell further in the last hour of trade as the major indices dipped, but they still ended with over 1% gains and closed above yesterday’s highs in a bullish and important technical feat according to Peter Degraaf in his article posted today and available here.
Gold Q3 demand up 19 pct on investment buying: WGC Reuters
The Economy:
Report | For | Reading | Expected | Previous |
Retail Sales | Oct | 0.2% | 0.2% | 0.7% |
Retail Sales ex-auto | Oct | 0.2% | 0.3% | 0.3% |
PPI | Oct | 0.1% | 0.3% | 1.1% |
Core PPI | Oct | 0.0% | 0.2% | 0.1% |
Business Inventories | Sep | 0.4% | 0.4% | 0.3% |
Bernanke spoke today about more transparency and forecasts from the fed in the form of more minutes in the future, but traders pointed out that they will still not be able to predict “event risks” and their impacts such as the recent and ongoing subprime/credit crisis and its implications. The fed will now give four projections a year instead of two and go out three years instead of two in order to improve accountability and further public understanding of the fed’s actions.
Tomorrow at 8:30AM EST brings CPI for October expected at 0.3%, Core CPI expected at 0.2%, Initial Jobless Claims for 11/10 expected at 325,000, and the NY Empire State Index for November expected at 18.0. At noon is the Philadelphia Fed survey for November expected at 5.0.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil rose about 3% and ended near its high of the session in anticipation of tomorrow’s delayed inventory report that is expected to show draws across the board and an increase in refinery utilization. The EIA also noted today that demand appears to so far not have been impacted by recent high prices.
The U.S. dollar index fell back within 0.5 points of a new record low in early trade, but it then rallied back higher in late trade and ended just slightly lower as recent risk aversion abated and resulted in US Dollar gains versus the yen.
Treasuries traded barely lower for most of trade and ended unchanged as most waited for more economic data and credit market problem developments as FASB guideline “SFAS 157” is implemented tomorrow and “requires a financial firm to divide its assets into three categories called simply enough, Level 1, Level 2 and Level 3.” More about this in John Mauldin’s latest article available here.
The Dow, Nasdaq, and S&P traded mostly slightly higher on tame inflation data and rising Retail Sales as traders also kept their eyes on credit market developments. Bear Stearns announce they will take a $1.2 billion write down, but that was said to be not as bad as expected. However all three indices fell back off in the last hour of trade and ended roughly 1% lower on uncertainty about new credit problems that may evidence themselves overnight.
Among the big names making news in the market today were United Airlines and Delta, John Thain and Merrill Lynch, HSBC, Macy’s, Bear Stearns, and Wachovia.
The Commentary:
“December Gold finished up 15.7 at 814.7, 2.7 off the high and 3.9 up from the low.
December Silver closed up 0.455 at 15.065. This was 0.155 up from the low and 0.085 off the high.
The gold market opened aggressively higher and mostly held the higher level throughout most of the trading session. With energy prices sharply higher, equity prices firm and the Dollar weak the bull camp had all the usual outside market suspects working in its favor. It is also possible that renewed geopolitical tensions between the International Atomic Energy Agency and Iran provided a layer of fresh buying to gold, which was also being supported by what appeared to be an ongoing improvement in the US macro economic outlook. Given the action on Wednesday in gold one might be hard pressed to argue that the majority of the bull case has been at least temporarily put back together.
With copper and tin prices showing very strong price gains on Wednesday and the gold market action also contributing to the bullish sentiment in the silver market it would seem like silver was getting favorable news from both financial and physical commodity market angles. However, seeing the stock market manage another upside extension seemed to put the most recent concern of US slowing on the back burner again. Even the currency market action seemed to benefit silver prices and that means there were a number of bullish themes operating.” - The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Government funds reported buying gold to hedge dollar's decline
Money market funds requiring props as credit crisis spreads
Randy Strauss: Only gold solves the international currency problem
New currency market rig tops finance ministers' agenda
The Statistics:
As of close of business: 11/13/2007
Gold Warehouse Stocks: | 7,345,863 | - |
Silver Warehouse Stocks: | 132,930,089 | -609,394 |
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 | 588.74 | 18,928,555 | US$ 15,221m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 97.86 | 3,146,146 | US$ 2,563m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 15.62 | 501,932 | US$ 409m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 18.94 | 608,916 | US$ 490m |
Note: Change in Total Tonnes from yesterday’s data: The NYSE/SGX subtracted 10.76 tonnes and the ASX added 0.29 tonnes.
COMEX Gold Trust (IAU)
Profile as of 11/13/2007 | |
Total Net Assets | $1,387,542,277 | Ounces of Gold
in Trust | 1,740,769.772 |
Shares Outstanding | 17,600,000 | Tonnes of Gold
in Trust | 54.14 |
Note: No change in Total Tonnes from yesterday’s data.
Silver Trust (SLV)
Profile as of 11/13/2007 | |
Total Net Assets | $2,133,486,608 | Ounces of Silver
in Trust | 145,408,391.000 |
Shares Outstanding | 14,650,000 | Tonnes of Silver
in Trust | 4,522.71 |
Note: No change in Total Tonnes from yesterday’s data.
The Stocks:
An earthquake in Chile that halted operations at several copper mines due to power outages, Great Basin’s (GBN) quarterly results, a halt to the strike in South Africa that had impacted platinum production, International Royalty’s (ROY) third quarter results, Apollo Gold’s (AGT) third quarter results, Anatolia’s (ANO.TO) approved power line, Silver Eagle’s SEG.TO) mine progress, and Silvercorp’s (SVM.TO) second quarter results were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Nevsun | NSU +8.65% $2.26 |
2. Golden Star | GSS +7.99% $3.38 |
3. Randgold | GOLD+7.62% $38.86 |
LOSERS
1. Minco | MGH -7.58% $1.22 |
2. Crystallex | KRY i4.28% $2.91 |
3. Banro | BAA-4.03% $12.14 |
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:
Colorado Goldfields Inc. Announces Plans for Underground Work at Gold King Mine - More
- November 14, 2007 | Item | E-mail
SEMAFO Reports Third Quarter 2007 Results - More
- November 14, 2007 | Item | E-mail
North Atlantic Files Financial Statements, MDA and Report to Shareholders for Third Quarter - More
- November 14, 2007 | Item | E-mail
Great Basin Gold Makes Good Progress in Operationalizing Its Projects - "For the quarter ended September 30, 2007, the Company incurred a loss of $14.4 million before tax compared to a loss of $13.8 million for the quarter ended June 30, 2007. The 4% increase resulted mainly from an increase in exchange losses, which was partially offset by the $1.0 million received from the disposal of the Casino Property Option." More
- November 14, 2007 | Item | E-mail
Ministry of Mines and Petroleum Confirms That Corriente's Mining Claims Are in Good Standing - More
- November 14, 2007 | Item | E-mail
Dumont appoints new Chief Financial Officer - More
- November 14, 2007 | Item | E-mail
Gold Seeker Closing Report: Gold and Silver Gain About 2% and 3%