-- Posted Tuesday, 20 November 2007 | Digg This Article
| Source: GoldSeek.com
| Close | Gain/Loss |
Gold | $790.50 | +$14.00 |
Silver | $14.44 | +$0.32 |
XAU | 171.95 | +4.67% |
HUI | 419.21 | +5.27% |
GDM | 1290.90 | +4.98% |
JSE Gold | 2456.17 | +0.55% |
USD | 75.21 | -0.59 |
Euro | 148.12 | +1.47 |
Yen | 91.24 | +0.28 |
Oil | $98.03 | +$3.39 |
10-Year | 4.054% | -0.025 |
T-Bond | 116.25 | +0.03125 |
Dow | 13010.14 | +0.40% |
Nasdaq | 2596.81 | +0.13% |
S&P | 1439.70 | +0.45% |
The Metals:
Gold rose about $5 in after hours access trade late yesterday before it fell back off and saw a small loss in early Asian trade, but it then rose to find an over $10 gain by the close of trade in Asia, held just under $790 in London, and advanced even further in New York. After climbing to as high as $798.40 by early afternoon it then plummeted about 1% off that high in the last half hour of trade, but it still ended with a gain of 1.80%. Silver followed a similar pattern and rose to as high as $14.80 before it also cut into its gains in the last half hour of trade, but it still ended higher by 2.27%. At the time of writing both metals are continuing their gains in today’s after hours access session with gold above $800 and silver above $14.65.
Euro gold rose to about €536, platinum gained $15 to $1463, palladium gained $1 to $358, and copper gained a few cents to about $3.03.
Gold and silver equities rose over 3% in morning trade before they were dragged down to see less than 2% gains as the major indices fell midday, but they then rallied back higher in the last two hours of trade and ended roughly 5% higher.
The Economy:
Report | For | Reading | Expected | Previous |
Housing Starts | Oct | 1229K | 1175K | 1193K |
Building Permits | Oct | 1178K | 1200K | 1261K |
FOMC minutes noted weak growth and tame inflation with a fed that seems reluctant to cut rates further but will do so if needed.
Tomorrow at 8:30AM EST brings Initial Jobless Claims for 11/17 expected at 330,000 and at 10AM is Michigan Sentiment for November expected at 75.0 and Leading Economic Indicators for October expected at -0.3%.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil rose over 3% to a new record closing high above $98 on refinery problems and as a hedge against a weak dollar. Heating oil rose to a new record high above $2.69 and gasoline climbed above $2.45.
The U.S. dollar index fell back to new record closing low as it looks increasingly more likely that at least one oil producer in the Middle East is looking to move off the dollar standard. The dollar also continues to weaken as the outlook for the fed remains for lower interest rates heading forward.
Treasuries rose after the fed predicted benign inflation which if true means that they do not need to keep interest rates high in order to combat it.
The Dow rose nearly 150 points in early trade and the Nasdaq and S&P followed suit, but surging energy prices and uncertain FOMC minutes dragged all three indices lower in afternoon trade and left them with only modest gains at the close.
Among the big names making news in the market today were Freddie Mac, H&R Block, Target, Citigroup, and D.R. Horton.
The Commentary:
“December Gold finished up 13.4 at 791.4, 7.7 off the high and 2.8 up from the low.
December Silver closed up 0.34 at 14.5. This was 0.07 up from the low and 0.32 off the high.
The gold market seemed to gather momentum throughout the trade Tuesday as the Dollar remained very weak, oil prices soared and perhaps most importantly the recent tide of rising fears of US slowing was at least temporarily mitigated by events early in the trading session. It goes without saying that the strength in equities, hopes for a US rate cut and a better than expected US Housing starts report provided the bull camp in gold with an improvement in the macro economic outlook. With a host of physical commodity markets seemingly catching a pre-holiday euphoria lift and the gold market this morning reaching a full $75 an ounce below the November 7th high, it wasn't surprising to see the gold market rebound sharply off a combination of short covering and fresh outright buying.
If it were not for the long list of positive outside market influences on Tuesday, the silver market might have paid more attention to a negative story suggesting that Indian silver demand could slide this year due to soaring flat prices. However, with December silver to the recent low reaching nearly $2.18 per ounce below the November 7th highs, it is likely that part of the sharp run up in silver prices was technical short covering. On the other hand, the silver market did get positive economic news on Tuesday morning and seeing the US stock market benefit from that news probably prompted some fresh outright bargain hunting buying in silver.”- The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Ted Butler: The cop on the beat, Part II
'Spectacular trial' seen in Liberty Dollar case
Washington Post ridicules feds' raid on Liberty Dollar
Chinese premier voices alarm at dollar's weakness
Liberty dollar seller looking forward to big payday on Ebay
Canadian dollar falls on chance of interest rate cut
Chavez and Ahmadinejad take aim at dollar
The Statistics:
As of close of business: 11/19/2007
Gold Warehouse Stocks: | 7,361,934 | -193 |
Silver Warehouse Stocks: | 132,664,190 | -588,203 |
Global Gold ETF Holdings
[WGC Sponsored ETF’s]
| Product name | Total Tonnes | Total Ounces | Total Value |
New York Stock Exchange (NYSE) AND Singapore Exchange (SGX) | Streettracks Gold Shares | 588.74 | 18,928,555 | US$ 14,739m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 96.93 | 3,116,357 | US$ 2,502m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 15.62 | 501,898 | US$ 403m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 18.94 | 608,876 | US$ 474m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU)
Profile as of 11/19/2007 | |
Total Net Assets | $1,351,939,912 | 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 11/19/2007 | |
Total Net Assets | $2,110,773,425 | 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:
Barrick’s (ABX) striking workers at a gold mine in Tanzania and Revett’s (RVM.TO) director appointment were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Hecla | HL +9.54% $12.17 |
2. Barrick | ABX+8.68% $42.30 |
3. Richmont | RIC +8.39% $3.36 |
LOSERS
1. ITH | THM-3.52% $1.92 |
2. Crystallex | KRY -2.59% $2.63 |
3. New Gold | NGD-2.12% $6.45 |
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:
Firesteel completes option transaction for major gold-copper-molybdenum property - More
- November 20, 2007 | Item | E-mail
Northern Peru Intersects Gold and High Grade Zinc, Lead, Silver Mineralization at Hilorico Zone, Galeno Project, Peru - More
- November 20, 2007 | Item | E-mail
Update on Ashdown operations - More
- November 20, 2007 | Item | E-mail
Colorado Goldfields Inc. Closes $3,284,475 Private Placement - More
- November 20, 2007 | Item | E-mail
Drake Gold Resources, Inc. Has Completed Updates for All Financial and Corporate Information - More
- November 20, 2007 | Item | E-mail
Los Andes' Success at Vizcachitas Continues in Phase II with a 100 Metre Intersection Grading 0.71% Cu on the Western Edge of Known Mineralization - More
- November 20, 2007 | Item | E-mail
Logan Resources announces $3.5 million private placement - More
- November 20, 2007 | Item | E-mail
Farallon Organization Update: Chief Financial Officer Appointed, JDS Energy and Mining to Provide EPCM Services for Underground Decline and Mine Development - More
- November 20, 2007 | Item | E-mail
RX Exploration Inc. Engages IBK Capital Corp. to Complete $8.5 Million Financing - More
- November 20, 2007 | Item | E-mail
Strait Gold Reports Drill Result from Culebrilla - More
- November 20, 2007 | Item | E-mail
Gold Seeker Closing Report: Gold and Silver Gain About 2%