-- Posted Thursday, 1 May 2008 | Digg This Article
| Source: GoldSeek.com
| Close | Gain/Loss |
Gold | $849.20 | -$13.70 |
Silver | $16.11 | -$0.40 |
XAU | 166.29 | -2.89% |
HUI | 394.37 | -1.87% |
GDM | 1178.21 | -2.09% |
JSE Gold | 2248.57 | -31.73 |
USD | 73.27 | +0.67 |
Euro | 154.66 | -1.61 |
Yen | 95.75 | -0.49 |
Oil | $112.52 | -$0.94 |
10-Year | 3.749% | -0.010 |
T-Bond | 117.140625 | +0.25 |
Dow | 13010.00 | +1.48% |
Nasdaq | 2480.71 | +2.81% |
S&P | 1409.34 | +1.71% |
The Metals:
Gold rose to find a more than 2% gain at over $880 in Asia, but it then fell throughout most of trade in London and New York and closed near its low of $847.05 with a loss of 1.6%. Silver rose to as high as $16.99 in Asia before it fell to as low as $15.97 by late morning in New York and closed with a loss of 2.4%.
Euro gold fell to about €550, platinum lost $52.50 to $1863, and copper plunged over 20 cents to about $3.72.
Gold and silver equities fell over 4% by early afternoon, but they then rallied back higher into the close and ended with only about 2% losses.
The Economy:
Report | For | Reading | Expected | Previous |
Initial Claims | 4/26 | 380K | 360K | 345K |
Personal Income | Mar | 0.3% | 0.4% | 0.5% |
Personal Spending | Mar | 0.4% | 0.2% | 0.1% |
PCE Core Inflation | Mar | 0.2% | 0.1% | 0.1% |
Construction Spending | Mar | -1.1% | -0.7% | 0.4% |
ISM Index | Apr | 48.6 | 48.0 | 48.6 |
Tomorrow at 8:30AM EST brings April’s jobs data. Nonfarm Payrolls are expected at -75,000, the Unemployment Rate is expected at 5.2%, Hourly Earnings are expected at 0.3%, and the Average Workweek is expected at 33.7. At 10AM is the Factory Orders report for March expected at 0.2%.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil fell as the U.S. dollar index rose markedly on hopes that the credit crisis is over and all is well with the economy.
Treasuries rose on the larger than expected climb in jobless claims that indicates tomorrows jobs report may come in worse than expected, but gains were limited as the Dow, Nasdaq, and S&P rose throughout most of trade on confidence in the dollar.
Among the big names making news in the market today were Home Depot, CVS Caremark, Exxon, Comcast, Kodak, Nissan, Abbott, and Starbucks.
The Commentary:
“Let’s cut to the chase:
- The potential for the bottom of the gold price being today is 75%.
- If it is not today, then the bottom for the price of gold is very close by.
- The downside in gold will be in by the end of the first week of May or sooner.
- On the 8th of May interest will increase in junior precious metals shares. This interest will first be in the most meritorious issues.
- Probabilities support the price of gold going back above $1000, failing, and on the third try making a new high.
- The price of gold is going to $1650.
- The euro is going to a minimum of 2 to the dollar.
- The USDX will trade at .5200
- Precious metals shares will be the darlings of the market prior to 2011.”- Jim Sinclair, JSMineset.com
“June Gold finished down 14.2 at 850.9, 14.6 off the high and 1.9 up from the low.
May Silver closed down 0.381 at 16.121. This was equal to the low and 0.059 off the high.
The gold contract forged another big range down extension on Thursday and clearly the action in gold was in many ways linked to a broad based mass liquidation in the commodities market. Seeing the June Dollar rise to the highest level since the big spike up recovery attempt on April 18th seemed to further the idea that the Dollar has indeed made a major bottom. With crude oil, soybeans, copper, cocoa and various other physical commodity markets under intense selling pressure the gold market was ripe to see more weak handed longs move to the sidelines. However, with an extremely critical US Monthly Non Farm payroll report looming on Friday morning, it is possible that some of the recent Dollar gains will have to be justified by a decent or perhaps better than expected employment report. Given the mass exodus the gold market all but ignored news that Gold Fields suspended gold mining operations at a mine which had a fatal accident earlier in the week.
With the relatively tight supplied platinum and copper markets coming under intense liquidation pressure on Thursday, it wasn't that surprising to see the silver market give up initial strength and in the end finish at the lowest level since January 23rd. As in the gold market, the silver market was clearly undermined by the rise in the Dollar and the slide in the oil market. It is also likely that Press hype of the bursting of the commodity bubble played a key role in the washout. However, the problem with an end to the commodities bull market is that lower prices and improved growth ahead will probably resurrect physical demand in place of the exiting investment demand.”- The Hightower Report, Futures Analysis and Forecasting
The Statistics:
As of close of business: 4/30/2008
Gold Warehouse Stocks: | 7,760,410 | - |
Silver Warehouse Stocks: | 133,512,348 | -18,027 |
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 | 580.45 | 18,662,044 | US$ 16,247m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 114.02 | 3,665,880 | US$ 3,123m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 20.92 | 671,955 | US$ 573m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 27.00 | 868,123 | US$ 763m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU)
Profile as of 4/30/2008 | |
Total Net Assets | $1,741,663,536 | Ounces of Gold
in Trust | 2,019,331.600 |
Shares Outstanding | 20,450,000 | Tonnes of Gold
in Trust | 62.81 |
Note: No change in Total Tonnes from yesterday’s data.
Silver Trust (SLV)
Profile as of 4/30/2008 | |
Total Net Assets | $3,057,460,022 | 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:
Eldorado’s (EGO) financial results, Tanzanian Royalty’s (TRE) private placement, Crystallex’s (KRY) search for clarification, Centerra’s (CG.TO) first quarter earnings and possible changes to the Kumtor agreement, Gold Fields’ (GFI) fatal mine accident, Taseko’s (TGB) royalty interest purchase and drilling, Royal Gold’s (RGLD) third quarter results, Midway’s (MDW) drill results, and Orezone’s (OZN) drill results were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Fronteer | FRG +7.24% $4.00 |
2. Banro | BAA +5.13% $8.40 |
3. ITH | THM+4.00% $1.30 |
LOSERS
1. Gold Reserve | GRZ -14.39% $2.38 |
2. DRDGOLD | DROOY-6.27% $7.17 |
3. Cardero | CDY -6.22% $2.11 |
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:
Eldorado Gold Corporation: Q1 2008 Financial and Operating Results - "This was an excellent quarter for us, thanks to record sales at our Tanjianshan mine in China, a successful and smooth resumption of production from our Kisladag mine in Turkey, strong gold prices and lower production cost," said Wright. "Looking ahead, we plan to commence construction at Efemcukuru in Turkey in Q2; we're on track for commissioning the Vila Nova Iron Ore project in Brazil and our exploration work plans for 2008 are underway." More
- May 01, 2008 | Item | E-mail
Zincore Completes Positive Pre-Feasibility Study for Accha Concentrator Project - More
- May 01, 2008 | Item | E-mail
Orex Exploration Inc.: Goldboro Drilling Program Update - More
- May 01, 2008 | Item | E-mail
Tanzanian Royalty Chairman to Proceed With 5th Tranche and Provide C$1,725,000 Private Placement - "Tanzanian Royalty Exploration Corporation (Toronto:TNX.TO - News) (AMEX:TRE - News) announces that Mr. James E. Sinclair has agreed to provide C$1,725,000 by way of a private placement with the proceeds being applied to general working capital." More
- May 01, 2008 | Item | E-mail
Crystallex seeking clarification on Venezuela mine - "Crystallex International (KRY.TO: Quote, Profile, Research) said on Thursday it was seeking clarification from the Venezuelan government on the status of its Las Cristinas gold development, adding it was unsure how to proceed following an apparent denial of mining rights in the region." More
- May 01, 2008 | Item | E-mail
Copper Mountain Mining Corporation - Continued drilling success justifies expanded drill program to 50,000 meters for 2008 - More
- May 01, 2008 | Item | E-mail
Gold Seeker Closing Report: Gold and Silver Fall Over 1% and 2%