-- Posted Tuesday, 3 June 2008 | Digg This Article
| Source: GoldSeek.com
| Close | Gain/Loss |
Gold | $881.95 | -$11.40 |
Silver | $16.79 | -$0.05 |
XAU | 178.38 | -1.86% |
HUI | 416.89 | -1.97% |
GDM | 1254.31 | -2.02% |
JSE Gold | 2359.54 | -5.89 |
USD | 73.29 | +0.33 |
Euro | 154.57 | -0.85 |
Yen | 95.12 | -0.55 |
Oil | $124.31 | -$3.45 |
10-Year | 3.898% | -0.073 |
T-Bond | 115.890625 | +0.84375 |
Dow | 12402.85 | -0.81% |
Nasdaq | 2480.48 | -0.44% |
S&P | 1377.65 | -0.58% |
The Metals:
Gold rose slightly to $896.80 and silver climbed to $16.93 by late trade in Asia before both metals dropped in early New York trade to as low as $877.30 and $16.495 by about 9:30AM EST after Bernanke’s speech lifted the dollar, but the metals then rallied back higher into the close and ended with losses of just 1.3% and 0.3%.
Euro gold fell to about €571, platinum lost $14 to $1992, and copper fell a couple of cents to about $3.59.
Gold and silver equities rose slightly in midmorning trade, but they then fell back off with the major indices in afternoon trade and ended with about 2% losses.
The Economy:
Report | For | Reading | Expected | Previous |
Factory Orders | Apr | 1.1% | -0.1% | 1.5% |
Tomorrow at 8:15 AM EST brings ADP Employment for May expected at -30,000. At 8:30 is first quarter Productivity expected at 2.5% and at 10AM is the ISM Services report for May expected at 51.0.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil fell on worries over falling demand as the U.S. dollar index rose after Bernanke acknowledged its recent weakness and hinted that the fed may do something about it in the future, but no fundamental plans or policy changes were actually announced.
Treasuries eventually rose after the Dow, Nasdaq, and S&P began to fall in early afternoon trade on continued worries about the financial sector. Dismal auto sales numbers added to the sour mood on Wall Street as rumors surfaced about Lehman’s possible need to raise capital, but all three indices rebounded in late trade and ended off their worst levels of the session after Lehman denied rumors that it was in trouble.
Among the big names making news in the market today were Lehman, Ford, GM, ResCap, Staples and Corporate Express, Toll Brothers, and the airlines.
The Commentary:
“August Gold finished down 11.5 at 885.5, 11.5 off the high and 7.5 up from the low.
July Silver closed down 0.075 at 16.835. This was 0.315 up from the low and 0.015 off the high.
The gold market started out the trading session Tuesday with some positive early support from the international markets but that support was fleeting. In fact, the double combination of a rising US Dollar and sagging oil prices was simply too much for the bull camp in gold. With US equities forging periodic gains, one could even suggest that flight to quality hopes in gold were also undermined during the trade. But even a turn lower in equities later in the session didn't seem to provide much support to gold. A number of markets were watching for a close below the psychological level of $125 in July crude oil as a close below that level was thought to signal some form of a bullish breakdown in oil prices and that in turn could lift the Dollar, lift equity prices and perhaps undermine the precious metals markets. Clearly weakness in a host of physical commodity markets seemed to add to the gold markets vulnerability.
The silver market seemed to have a somewhat more impressive trade on Tuesday as the market came under pressure in the wake of the renewed strength in the Dollar but the silver market actually did a fairly good job of rejecting the selling pressure. In fact, for silver to have rejected the brunt of the selling in the face of sharp declines in oil prices and weakness in a host of physical commodity markets, it is possible that some in the bull camp came away heartened by the trade action.”- The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Lew Rockwell: The cause that won't go away
Ted Butler: Bubble mania?
Bank downgrades, Wachovia ouster rock markets
The Statistics:
As of close of business: 6/2/2008
Gold Warehouse Stocks: | 7,588,909 | -2,129 |
Silver Warehouse Stocks: | 134,896,015 | -178,123 |
Global Gold ETF Holdings
[WGC Sponsored ETF’s]
| Product name | Total Tonnes | Total Ounces | Total Value |
New York Stock Exchange Arca (NYSE Arca) AND Singapore Exchange (SGX) | SPDR® Gold Shares | 597.73 | 19,217,748 | US$ 17,062m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 113.54 | 3,650,491 | US$ 3,223m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 10.81 | 346,801 | US$ 307m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 28.10 | 903,285 | US$ 802m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU)
Profile as of 6/2/2008 | |
Total Net Assets | $1,757,710,166 | Ounces of Gold
in Trust | 1,969,252.636 |
Shares Outstanding | 19,950,000 | Tonnes of Gold
in Trust | 61.25 |
Note: No change in Total Tonnes from yesterday’s data.
Silver Trust (SLV)
Profile as of 6/2/2008 | |
Total Net Assets | $3,245,241,474 | Ounces of Silver
in Trust | 192,569,101.300 |
Shares Outstanding | 19,450,000 | Tonnes of Silver
in Trust | 5,989.57 |
Note: No change in Total Tonnes from yesterday’s data.
The Stocks:
Paramount’s (PZG) drill results, Ivanhoe’s (IVN) mining agreement, Claude’s (CGR) drill program, Orezone’s (OZN) drill results, Great Panther’s (GPR.TO) mine reopening celebration, Silver Quest’s (SQI.V) drill program, and Silver Wheaton’s (SLW) acquired production were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Entree | EGI +15.38% $1.65 |
2. US Energy | USEG+5.19% $2.84 |
3. Fronteer | FRG +2.91% $4.95 |
LOSERS
1. Western Goldfields | WGW -5.16% $2.17 |
2. Exeter | XRA -5.03% $4.34 |
3. Hecla | HL -4.18% $8.72 |
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:
MacMillan & Duran Report Entire 718.1 Metre Hole 6 Averages 0.555% Cu and 0.041% Mo Including 571.4 Metres of 0.657% Cu and 0.041% Mo - More
- June 03, 2008 | Item | E-mail
Dia Bras Reports 2008 First Quarter Results - More
- June 03, 2008 | Item | E-mail
Copper Fox Metals Inc. - Second Quarter Results - Three and Six Months Ended April 30, 2008 - More
- June 03, 2008 | Item | E-mail
Vangold Appoints VP Exploration - More
- June 03, 2008 | Item | E-mail
Eastern Goldfields Concludes the Purchase of the Barbrook Mine - More
- June 03, 2008 | Item | E-mail
Noront Resources Ltd. & Probe Mines Ltd. Enter Discussion Regarding McFaulds Lake Area - More
- June 03, 2008 | Item | E-mail
Golden Phoenix Completes 8000 Feet of Drilling at Its Mineral Ridge Gold Mine; Reports Initial Exploration Objectives and Results - More
- June 03, 2008 | Item | E-mail
Paramount Gold and Silver Corp. Reports Drill Results From its San Miguel Vein in Mexico - "Paramount Gold and Silver Corp. (Toronto:PZG.TO - News)(AMEX:PZG - News)(Frankfurt:P6G.F - News)(WKN: A0HGKQ) reports assay results from drill holes SM-25 through SM-33 in the San Miguel target area in the northwest portion of the project. This series of first pass exploratory holes was drilled to the northwest of 'Clavo 99' on the newly acquired Elyca concession and the Empalme concession. Many of these holes intersected significant mineralization which will be followed up by additional drilling." More
- June 03, 2008 | Item | E-mail
Breakwater Sues Blue Note in New Brunswick - More
- June 03, 2008 | Item | E-mail
Case Financial Enters Four Million Dollar Exploration Agreement With Trio Gold Corp - More
- June 03, 2008 | Item | E-mail
Trio Gold Corp. Announces the Signing Today of a Four Million Dollar Exploration Agreement - More
- June 03, 2008 | Item | E-mail
Golden Valley Mines: Abitibi Grassroots Exploration Program Update Diamond Drill Program Underway-Island 27 Prospect (Kirkland Lake-Matachewan, Ontario) - More
- June 03, 2008 | Item | E-mail
Ivanhoe expects Mongolian mining agreement soon - "Mongolia is expected shortly to approve a long-awaited mining agreement for one of the world's biggest copper deposits, the head of Ivanhoe Mines Ltd (IVN.TO: Quote, Profile, Research) said on Tuesday." More
- June 03, 2008 | Item | E-mail
Gold Seeker Closing Report: Gold and Silver Fall as Bernanke Bounces Dollar