-- Posted Tuesday, 22 April 2008 | Digg This Article
| Source: GoldSeek.com
| Close | Gain/Loss |
Gold | $922.00 | +$8.05 |
Silver | $17.70 | +$0.32 |
XAU | 185.81 | -0.30% |
HUI | 443.51 | -1.04% |
GDM | 1327.59 | -1.04% |
JSE Gold | 2495.29 | -28.93 |
USD | 71.32 | -0.31 |
Euro | 159.72 | +0.61 |
Yen | 97.01 | +0.12 |
Oil | $119.37 | +$1.89 |
10-Year | 3.720% | +0.008 |
T-Bond | 117.15625 | +0.078125 |
Dow | 12720.23 | -0.82% |
Nasdaq | 2376.94 | -1.29% |
S&P | 1375.94 | -0.88% |
The Metals:
Gold fell to $911.65 in Asia, but it then rose throughout most of trade in London and New York and ended near its high of $925.40 with a gain of 0.88%. Silver fell to $17.275 and rose to $17.945 before it closed with a gain of 1.8%.
Euro gold rose to about €577, platinum gained $14.50 to $2020.50, and copper gained over 10 cents to about $4.00.
Gold and silver equities rose over 1% by about 2 hours into trade, but they then fell back off and ended slightly lower as the major indices dropped and gold and silver started off access hours access trade on a weaker note.
The Economy:
Report | For | Reading | Expected | Previous |
Existing Home Sales | Mar | 4.93M | 4.92M | 5.03M |
There are no major economic reports due out tomorrow.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil rose to a new record intraday high of $119.90 and also made a new closing high on continued supply concerns and a lower U.S. dollar that fell to a new record low versus the euro above 1.60 as the ECB talked about inflation and lessened expectations for interest rate cuts anytime soon in Europe.
Treasuries rose as the Dow, Nasdaq, and S&P fell about 1% on mostly disappointing earnings reports and record high oil.
Among the big names making news in the market today were McDonald’s, AT&T, United Air, UnitedHealth, SunTrust, Fifth Third, News Corp. and Newsday, National City, and AirTran.
The Commentary:
“Discussions on the Price of Gold:
The subjects of today's discussions amongst gold people were:
- Interest rates.
- Seasonality.
1. We are already into what the Fed will do. The going opinion amongst the gold people who always seems to want to be wrong about being bullish is what will the effect of a 1/4 point drop be? Will that not strengthen the dollar and then hurt gold?
What they seem not to note is that there is little room between the present discount level and zero. Interest rates are useless in the present situation outside of a short period of spin. If the Fed sliced hard there would be little room to do it again. It does not take a genius to know they will have to keep some ammunition for emergency drops and shock PR.
The dollar and the euro know the expectations and therefore have priced in the 1/4 point reduction. Outside of no change in rates I see no dollar rally with even one leg on a 1/4 drop. It should be a non-event.
2. Seasonality is quite meaningful to gold when it is a commodity and meaningless when gold is a currency. Jeweler's demand is no factor when gold is running as a currency. Other than a modest impact from those in anticipation of commodity demand running the market, I see seasonality as a non-factor in the present gold market.
The prime mover of gold will be the US dollar which has not done much of anything as a result of the "Please listen to us" G7 meeting.
Whatever Gold has to do on the downside is done by early May.” - Jim Sinclair, JSMineset.com
“June Gold finished up 7.6 at 925.2, 3.2 off the high and 5.5 up from the low.
May Silver closed up 0.35 at 17.71. This was 0.09 up from the low and 0.225 off the high.
The gold market mostly managed an inside day on Tuesday and that might be disappointing to some gold bulls in the face of a new low in the Dollar and a new high in the crude oil market. While the gold bulls didn't see the energy complex close in record high ground nor did the trade see the Dollar finish at new lows, the gold bulls might take the action Tuesday as a sign that pre-existing trends in those markets remain in place. Surprisingly the gold market wasn't overly undermined by the fact that US economic data depicted more slowing in the US economy. Even more surprising is the fact that moderate weakness in the US equity market didn't seem to drag the metals markets down into negative territory.
The silver market managed an impressive recovery bounce into mid session Tuesday but bullish sentiment did seem to wane into the afternoon action. However, silver and the quasi industrially demand driven metals markets on Tuesday were clearly able to benefit from residual strength in the energy market and another new low probe in the US Dollar. In short, the silver market clearly seemed to be in a position to track gold and the financial sector themes, instead of classic physical commodity market issues.”- The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Bank bailout may weaken British government bonds
Alex Stanczyk: GATA went to Washington
Reg Howe: Gold, the Supremes, and UFOs
Gene Arensberg: If you want silver, not paper, you face a premium
The Statistics:
As of close of business: 4/21/2008
Gold Warehouse Stocks: | 7,636,723 | - |
Silver Warehouse Stocks: | 137,087,758 | -1,990 |
Global Gold ETF Holdings
[WGC Sponsored ETF’s]
| Product name | Total Tonnes | Total Ounces | Total Value |
New York Stock Exchange Arca (NYSE Arca) AND Singapore Exchange (SGX) | StreetTRACKS Gold Shares | 641.82 | 20,635,087 | US$ 18,948m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 114.03 | 3,666,247 | US$ 3,364m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 20.92 | 672,022 | US$ 617m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 27.01 | 868,228 | US$ 789m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU)
Profile as of 4/21/2008 | |
Total Net Assets | $1,882,766,189 | Ounces of Gold
in Trust | 2,058,818.136 |
Shares Outstanding | 20,850,000 | Tonnes of Gold
in Trust | 64.04 |
Note: No change in Total Tonnes from yesterday’s data.
Silver Trust (SLV)
Profile as of 4/21/2008 | |
Total Net Assets | $3,316,000,651 | Ounces of Silver
in Trust | 185,719,016.300 |
Shares Outstanding | 18,750,000 | Tonnes of Silver
in Trust | 5,776.51 |
Note: No change in Total Tonnes from yesterday’s data.
The Stocks:
Cardero’s (CDY) test results, Aurizon’s (AZK) drill results, Newcrest’s (NCM.AX) gold venture with Harmony (HMY), First Majestic’s (FR.TO) flotation circuit, Aquiline’s (AQI.TO) updated mineral resource estimate, and Oro Silver’s (OSR.V) sampling results were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Almaden | AAU +7.91% $2.32 |
2. Harmony | HMY+4.57% $12.36 |
3. Taseko | TGB +4.14% $5.54 |
LOSERS
1. Western Goldfields | WGW -7.62% $2.79 |
2. Fronteer | FRG -6.50% $4.60 |
3. Northgate | NXG -4.26% $3.15 |
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:
General Moly Reports on Recent Drilling Results at Hall-Tonopah - More
- April 22, 2008 | Item | E-mail
Prior Drilling on AAA Energy's LiJiaWa Moly Prospect Report Assays Up to 19.84 Meters of 0.34% Mo - More
- April 22, 2008 | Item | E-mail
Platinum Group Metals Ltd.: Project 2 Resources Increase Western Bushveld Joint Venture - More
- April 22, 2008 | Item | E-mail
Timberline Resources Corporation to Present At the Chicago Resource Expo - More
- April 22, 2008 | Item | E-mail
Tantalum and Niobium Expert Becomes Chairman of Commerce Resources Corp. - More
- April 22, 2008 | Item | E-mail
Anaconda Mining Inc.: Q3-2008 - More
- April 22, 2008 | Item | E-mail
Skyline Initiates Iron Magnetite Study - More
- April 22, 2008 | Item | E-mail
Coro Announces Conclusions From NI 43-101 Technical Report on San Jorge Float Only Copper Gold Project Preliminary Economic Assessment - More
- April 22, 2008 | Item | E-mail
Queensland Minerals Ltd. Commences Diamond Core Drilling at Sulphide Cap and Firegrass Creek Prospects - More
- April 22, 2008 | Item | E-mail
Wallbridge Annual General Meeting to be held at Science North, Sudbury - More
- April 22, 2008 | Item | E-mail
Cardero Receives Positive Metallurgical Test Results for Pampa de Pongo Iron Ore Deposit - "Cardero Resource Corp. ("Cardero" or the "Company") (Toronto:CDU.TO - News)(AMEX:CDY - News)(Frankfurt:CR5.F - News) is pleased to announce it has received from Rio Tinto Exploration a copy of a positive metallurgical test report on two samples from the Pampa de Pongo iron deposit." More
- April 22, 2008 | Item |
Gold Seeker Closing Report: Gold and Silver Gain Nearly 1% and 2%