-- Posted Tuesday, 22 July 2008 | Digg This Article
| Source: GoldSeek.com
| Close | Gain/Loss |
Gold | $948.05 | -$15.25 |
Silver | $17.96 | -$0.39 |
XAU | 185.04 | -3.70% |
HUI | 432.50 | -3.02% |
GDM | 1293.99 | -3.41% |
JSE Gold | 2293.76 | -17.52 |
USD | 72.50 | +0.53 |
Euro | 157.81 | -1.41 |
Yen | 93.24 | -0.72 |
Oil | $127.95 | -$3.09 |
10-Year | 4.097% | +0.030 |
T-Bond | 114.15625 | -0.390625 |
Dow | 11602.50 | +1.18% |
Nasdaq | 2303.96 | +1.07% |
S&P | 1277.00 | +1.35% |
The Metals:
Gold climbed as much as $12.90 to $976.20 by midday in London, but it then collapsed in New York and ended near its low of $943.65 with a loss of 1.58%. Silver rose 33 cents to $18.68 before it dropped to as low as $17.837 and closed with a loss of 2.13%.
Euro gold fell to about €601, platinum lost $35 to $1803, and copper gained a couple of cents to about $3.73.
Gold and silver equities steadily fell for most of trade and ended over 3% lower.
The Economy:
There were no major economic reports today. Tomorrow at 2PM EST is the release of the fed’s Beige Book.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil fell after it became pretty clear that Tropical Storm Dolly will not severely impact supply operations in the Gulf of Mexico.
The U.S. dollar index rose and treasuries fell after the fed’s Plosser came out with some hawkish commentary calling for higher interest rates “sooner rather than later.”
The Dow, Nasdaq, and S&P fell markedly at the open on poor earnings reports, but they soon rebounded and ended with over 1% gains after oil prices fell again.
Among the big names making news in the market today were Wachovia, Caterpillar, UAL, KeyCorp, DuPont, and Thornburg.
The Commentary:
“As gold rose and the dollar slipped once again into the .7200 area a poor picture was being painted as legislative action neared for Fanny and Freddie. - It seems that the key panic point is .7200 on the USDX.
- The Fed's perma-hawk spoke loudly about what will not happen - Fed increases of the discount rate.
- Crude came down today, blamed on the apparent hurricane fear fading. Major support starts at $125, and if that is not the bottom it will not be far below.
- All the dollar bulls and energy bears were pulled out of the closet as talking heads.
- Fancy accounting footwork is the entire reason why some bank earnings look better. They are not. In fact many of the best looking ones are the worst off.
- $25 billion for Fanny and Freddie will not cover a $5 trillion problem. It isn't even worth being called a bandage.
After all the substance-less noise used to paint the day better passes, we return to face the 3rd attempt at $1000 and the euro moving past $1.60.
Gold is headed to $1650 and the euro to $2. That is only for starters.”- Jim Sinclair, JSMineset.com
“August Gold finished down 15.2 at 948.5, 24.5 off the high and 4 up from the low.
September Silver closed down 0.42 at 18.005. This was 0.075 up from the low and 0.665 off the high.
With the gold bugs recently getting a definitive flow of flight to quality anxiety from the July 9th low to the July 15th high it was not surprising to see the market come under pressure in the wake of a sharp downside extension in energy prices. In fact, a number of markets saw the sharp downside extension in oil prices as a factor that could alleviate the drag on the US economy and that in turn could actually serve to temper some of the financial sector concerns in the marketplace. With a number of physical commodity markets under what seemed to be a liquidation wave it wasn't surprising to see the gold market fall back to the lowest level since July 10th. Even with the Fed's Plosser suggesting that uncertainty on the US economy has increased over the last 2-3 weeks, the gold market wasn't interested in bidding up prices off the anxiety angle and that highlights the dominating status of the oil market.
The silver market forged a big range down washout type move on the coattails of the slide in gold and energy prices. However, the silver market might have seen some indirect support from generally stabile copper prices and perhaps derived some support off hopes that sharply lower oil prices might serve to save the US economy and in turn shore up industrial and physical demand for silver. However, with the silver and gold markets recently garnering significant support from flight to quality themes, it could be difficult rekindling safe haven buying without a recovery in oil prices.”- The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Internet currency firm E-Gold pleads guilty to money laundering
John Rubino: Time to start honing the message
The Statistics:
As of close of business: 7/21/2008
Gold Warehouse Stocks: | 8,103,075 | +391,974 |
Silver Warehouse Stocks: | 136,356,877 | - |
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) AND Tokyo Stock Exchange (TSE) | SPDR® Gold Shares | 705.59 | 22,685,445 | US$ 21,783m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 119.72 | 3,849,094 | US$ 3,653m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 10.87 | 349,112 | US$ 332m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 29.92 | 961,911 | US$ 923m |
Note: Change in Total Tonnes from yesterday’s data: SPDR added 3.06 tonnes and the LSE added 0.47 tonnes.
COMEX Gold Trust (IAU)
Profile as of 7/21/2008 | |
Total Net Assets | $1,894,924,940 | Ounces of Gold
in Trust | 1,967,972.052 |
Shares Outstanding | 19,950,000 | Tonnes of Gold
in Trust | 61.21 |
Note: No change in Total Tonnes from yesterday’s data.
Silver Trust (SLV)
Profile as of 7/21/2008 | |
Total Net Assets | $3,593,238,175 | Ounces of Silver
in Trust | 195,872,336.400 |
Shares Outstanding | 19,800,000 | Tonnes of Silver
in Trust | 6,092.31 |
Note: No change in Total Tonnes from yesterday’s data.
The Stocks:
Freeport’s (FCX) second-quarter profit, Paramount’s (PZG) assay results, Kirkland’s (KGI.TO) year end results, Silverstone’s (SST.V) initial current mineral resource estimates, Orko’s (OK.V) assay results, and Apogee’s (APE.V) assay results were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Paramount | PZG +3.85% $1.35 |
2. Gold Reserve | GRZ +3.47% $1.49 |
3. US Gold | UXG+3.45% $1.80 |
LOSERS
1. Timberline | TLR -8.16% $2.25 |
2. Nevsun | NSU -7.53% $1.72 |
3. Pan American | PAAS-7.07% $32.86 |
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:
Gryphon Gold Appoints Mining Engineer John Key as CEO & Director - More
- July 22, 2008 | Item | E-mail
Ontex Resources Limited to Refile Certain Financial Statements - More
- July 22, 2008 | Item | E-mail
GoldSpring Releases Assay Results Which Demonstrate Continuation of Favorable Indications From Drill Program - More
- July 22, 2008 | Item | E-mail
Mountain States Legal Foundation Files Petition With US Supreme Court for Atna Resources in The McDonald Takings Case - More
- July 22, 2008 | Item | E-mail
Maestro Signs Lease Agreement on the Star Point Project Western Nevada - More
- July 22, 2008 | Item | E-mail
Drilling begins at Howell Gold project in British Columbia - More
- July 22, 2008 | Item | E-mail
NFX Gold Inc. Advised That Newstrike Resources Ltd. Terminates Option to Acquire Additional 25% Interest in Swansea Property Along Larder Lake Break - More
- July 22, 2008 | Item | E-mail
Century Mining Provides Update On Financing Activities - More
- July 22, 2008 | Item | E-mail
New discovery of high grade gold 2305 g/t (67.22 oz/t) on Northern Gold Mining's Kirana property - More
- July 22, 2008 | Item | E-mail
Mantis Mineral Corp. completes private placement - More
- July 22, 2008 | Item | E-mail
Benton Continues to Intercept PGM's and Copper at Area 41 - More
- July 22, 2008 | Item | E-mail
Paramount Announces Intersection of High Grade Mineralization at the Cieneguita Project, Mexico Under the Strategic Alliance With Mexoro Minerals - "Paramount Gold and Silver Corp. (Toronto:PZG.TO - News)(PZG - News)(Frankfurt:P6G.F - News)(WKN: A0HGKQ) announces assay results from six additional drill holes at its Cieneguita Project from their strategic alliance with Mexoro Minerals (Other OTC:MXOM.OB - News). It is in the same mineralized trend and only 20 km away from Goldcorp's El Sauzal mine, Mexico's largest producing gold mine and adjacent to Paramount's Andrea project. Cieneguita was last in production by Glamis Gold Ltd. between 1995 and 1998 prior to its acquisition by Goldcorp Inc." More
- July 22, 2008 | Item | E-mail
First Metals Inc.: Magusi Exploration Ramps Up - More
- July 22, 2008 | Item | E-mail
Cadillac Mining Corporation agrees to a Flow-Through Placement with MineralFields Group - More
- July 22, 2008 | Item | E-mail
Ur-Energy Inc. to List on the American Stock Exchange - More
Gold Seeker Closing Report: Gold and Silver Fall About 2%