-- Posted Tuesday, 23 December 2008 | Digg This Article
| | Source: GoldSeek.com
| Close | Gain/Loss |
Gold | $837.65 | -$8.70 |
Silver | $10.21 | -$0.63 |
XAU | 113.03 | +2.91% |
HUI | 276.36 | +2.97% |
GDM | 843.49 | +2.49% |
JSE Gold | 2154.30 | +23.47 |
USD | 81.24 | +0.11 |
Euro | 139.54 | +0.12 |
Yen | 109.99 | -0.78 |
Oil | $38.98 | -$0.93 |
10-Year | 2.163% | +0.022 |
T-Bond | 141.00 | +0.3125 |
Dow | 8419.49 | -1.18% |
Nasdaq | 1521.54 | -0.71% |
S&P | 863.16 | -0.97% |
The Metals:
Gold held near unchanged in Asia and London before it dropped in morning New York trade to as low as $828.70 by a little after noon EST, but it then rallied nearly $10 from that low in the last hour of trade and ended with a loss of just 1.03%. Silver fell to as low as $10.113 by a little before noon EST before it also bounced back higher in afternoon trade, but it still ended with a loss of 5.81%.
Euro gold fell to about €600, platinum lost $8 to $840, and copper fell over 6 cents to about $1.27.
Gold and silver equities rose over 3% at the open before they fell to see slight losses midday, but they then rallied back higher in afternoon trade and ended with nearly 3% gains despite lower closes for the metals and a weaker general market.
The Economy:
Report | For | Reading | Expected | Previous |
GDP | Q3 | -0.5% | -0.5% | -0.5% |
Chain Deflator | Q3 | 3.9% | 4.2% | 4.2% |
Existing Home Sales | Nov | 4.49M | 4.93M | 4.91M |
New Home Sales | Nov | 407K | 415K | 419K |
Michigan Sentiment | Dec | 60.1 | 58.8 | 59.1 |
Tomorrow at 8:30AM EST brings Durable Goods Orders for November expected at -3.1%, Initial Jobless Claims for 12/20 expected at 558,000, Personal Income for November expected at 0.0%, and Personal Spending expected at -0.8%. US Markets Close early tomorrow and remain closed through Christmas on Thursday.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil fell on more demand worries after another round of mostly poor economic data.
The U.S. dollar index ended slightly higher while treasuries rose as the Dow, Nasdaq, and S&P erased their morning gains and ended lower on persistent economic worries.
Among the big names making news in the market today were Red Hat, Wal-Mart, GM, CIT, and Unisys.
The Commentary:
“Dear CIGAs,
We had gold prices going one way today and mining shares going the other way once again in a repeat performance of yesterday’s play only this time it was the mining shares going up while the gold itself was going down (or should I say the paper gold). Considering the weakness in the broader equity markets, the mining shares performance at this point looks pretty impressive especially given the fact that Comex gold was knocked down quite a bit today.
Trading was lackluster today at the Comex as was expected with reports from the pit stating that traders were sitting around working crossword puzzles. Holiday trade is here without a doubt as volume was so anemic yesterday that I had to do a double take when I first saw the numbers thinking that it might have been a reporting error by the wire service! The next thing you know we will be getting reports from the pit telling us that traders are betting on cockroach races.
That is why you cannot read too much into price action this time of year – there simply is not enough liquidity to get a real price discovery mechanism in place. Most of the trade consists of pit locals just shoving prices around in the path of least resistance hoping to pick off a few stops or to scalp a few ticks out of the market to buy their kids that GI Joe with the Kung Fu grip. Air space both above the below the market is the current weather forecast.
Technically gold is chopping in a range. Another way of saying this is that it is consolidating and marking time. The top of the range is near the $850 level while the bottom is near $830.
A point of interest – the spread between the December gold contract and the April gold contract is a mere $2.00 which is pretty tight. It is only a bit over a $1.00 between the Dec and the February. If anything changes further in this regard I will let us know but for now the tightening is quite interesting. I think that the spreads will actually tell us more about gold this time of year than the outright price action in the lead month to be honest.
Bonds floated higher today but remain below their recent peak. It is when the deflationary mindset eventually gives way that the bonds will break with a vengeance. When that occurs is anyone’s guess but it most certainly will. The Central Banks dread deflation more than anything else and will do everything in their power to slay that dragon no matter what the longer term consequences might be. Count me out of the group that believe that the mortals manning the helm at the Fed will be able to withdraw all the liquidity that they are injecting into the system to prevent a huge surge in inflation in the future and a loss of confidence in the Dollar.” - Dan Norcini, More at JSMineset.com
“February Gold closed down 9.1 at 838.1. This was 7.7 up from the low and 8.6 off the high.
March Silver finished down 0.6 at 10.26, equal to the high and 0.01 up from the low.
The gold market traded mostly lower pressured by a slew of soft US economic data that seemed to contribute to a deflationary mentality. The gold market certainly seemed to be undermined by reports showing a sharp fall in housing sales and a continued slide in manufacturing that seemed to lower investor's inflation concerns and also seemed to set the stage for an even sharper economic contraction in the 4th quarter compared to the 0.5% decline seen in 3rd quarter GDP. The Dollar's recovery from an early price slide along with the weak action in the equity market also kept gold under pressure. However, Feb gold was able to hold a test of a key technical level as the low Treasury yields still seemed to be attracting buyers to gold on price dips.
The silver market started off weak and broke hard in reaction to the weak economic data and seemed to trade more like an industrial than precious metal this session. Silver was certainly undermined by the continued declines in housing sales and manufacturing last month suggest economic conditions continue to worsen in the 4th quarter. Outside market action likely contributed to the selling in silver with copper falling to a 4 year low. The weak economic outlook along with the Dollar recovering from early losses seemed to foster some deflation sentiment that put pressure on several physical commodities including silver.”- The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Ted Butler: More evidence of manipulation in CFTC's silver data
The Statistics:
As of close of business: 12/22/2008
Gold Warehouse Stocks: | 8,540,002 | - |
Silver Warehouse Stocks: | 126,845,345 | +339,900 |
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 Exchage (TSE) AND Hong Kong Stock Exchange (HKEx) | SPDR® Gold Shares | 775.33 | 24,927,686 | US$ 21,158m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 116.46 | 3,744,242 | US$ 3,140m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 11.51 | 368,946 | US$ 310m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 26.93 | 865,867 | US$ 735m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU)
Profile as of 12/22/2008 | |
Total Net Assets | $1,816,197,347 | Ounces of Gold
in Trust | 2,146,778.536 |
Shares Outstanding | 21,800,000 | Tonnes of Gold
in Trust | 66.77 |
Note: No change in Total Tonnes from yesterday’s data.
Silver Trust (SLV)
Profile as of 12/22/2008 | |
Total Net Assets | $2,384,367,438 | Ounces of Silver
in Trust | 217,412,903.800 |
Shares Outstanding | 220,250,000 | Tonnes of Silver
in Trust | 6,762.30 |
Note: No change in Total Tonnes from yesterday’s data.
The Stocks:
IAMGOLD’s (IAG) optioned project with Merrex, Barrick’s (ABX) appointed CEO, Gold Fields’ (GFI) production guidance, Fronteer’s (FRG) drill results, Alexco’s (AXU) financing tranche from Silver Wheaton (SLW), and First Majestic’s (FR.TO) updated 43-101 report were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Mines MGMT | MGN+7.86% $1.51 |
2. Minefinders | MFN+7.03% $4.72 |
3. Gold Fields | GFI +6.72% $8.89 |
LOSERS
1. Vista Gold | VGZ-11.12% $1.20 |
2. Aurizon | AZK -7.40% $2.88 |
3. Richmont | RIC -6.75% $1.52 |
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:
Cartier Announces Closing of a $620,880 Financing - More
- December 23, 2008 | Item | E-mail
Ateba Resources Inc. Announces Revocation of Cease Trade Orders - More
- December 23, 2008 | Item | E-mail
Ivernia Announces Esperance Contribution Agreement - More
- December 23, 2008 | Item | E-mail
Constellation Copper files an assignment in bankruptcy under the Bankruptcy and Insolvency Act - More
- December 23, 2008 | Item | E-mail
Lundin Mining Enters into Agreement for the Sale of Aljustrel Mine in Portugal - More
- December 23, 2008 | Item | E-mail
Orebodies announces encouraging base metal values from McFaulds Lake Caribou Property - More
- December 23, 2008 | Item | E-mail
Firstgold Corp. Clarifies 8-K Announcement - More
- December 23, 2008 | Item | E-mail
Darnley Bay Resources Closes Financing - More
- December 23, 2008 | Item | E-mail
Cancor - 2008 Achievements - More
- December 23, 2008 | Item | E-mail
Independent Nickel Corp. Announces Intention to Complete Amalgamation - More
- December 23, 2008 | Item | E-mail
Alexco Receives US $15 Million Initial Tranche From Silver Wheaton; Continues to Forge Ahead With Bellekeno Exploration and Development - "Alexco Resource Corp. (Toronto:AXR.TO - News)(AMEX:AXU - News) ("Alexco" or the "Company") is pleased to announce that it has received the US $15 million initial tranche of financing from Silver Wheaton Corp. (Toronto:SLW.TO - News)(NYSE:SLW - News) ("Silver Wheaton") payable under the previously announced silver purchase agreement." More
- December 23, 2008 | Item | E-mail
Shoreham Completes $250,000 Non-Brokered Private Placement at $0.20 per Share - More
- December 23, 2008 | Item | E-mail
Acadian Mining announces that ScoZinc has obtained creditor protection - More
- December 23, 2008 | Item | E-mail
FNX Announces Senior Management Appointments - More
- December 23, 2008 | Item | E-mail
Denison Mines Corp. Closes Flow-Through Financing - More
- December 23, 2008 | Item | E-mail
Pershimco to Process Gold Bearing Material From the Courville Gold Property at Xstrata Copper's Horne Smelter - More
- December 23, 2008 | Item | E-mail
Richmond Minerals Inc. and Fort Chimo Minerals Inc.: Completion of Drill Program - More
- December 23, 2008 | Item | E-mail
Nirek Reduces Bid for Century by 10% - More
- December 23, 2008 | Item | E-mail
Uranium One Announces Industrial Production Approval for South Inkai - More
- December 23, 2008 | Item | E-mail
Mexivada reports New Alluvial Gold Discovery at Mourindjoka, ROC Congo - More
- December 23, 2008 | Item | E-mail
Mineral Deposits Limited: Hedging and Debt Facility Update - More
- December 23, 2008 | Item | E-mail
Paladin Energy Ltd Completes Sending Formal Takeover Offers Regarding Fusion Resources Limited - More
- December 23, 2008 | Item | E-mail
U3O8 Corp. Cuts 5.9 Metres Grading 0.13% (2.5 Pounds Per Short Ton) U3O8 at Aricheng North - More
- December 23, 2008 | Item | E-mail
Merrex Increases Ownership of Siribaya to 100% and Closes $12,000,000 Option and Private Placement With IAMGOLD - More
- December 23, 2008 | Item | E-mail
Adex Mining Completes Mineralogy Study - More
- December 23, 2008 | Item | E-mail
Armistice Resources Corp. test milling and update - More
- December 23, 2008 | Item | E-mail
Colorado Goldfields Inc. in Contract Negotiations With Kinross Gold Corporation (NYSE: KGC) on Acquisition of the Historic Sunnyside Mine in Silverton and Other - More
- December 23, 2008 | Item | E-mail
Tournigan Finalizes Dalradian Gold Agreement in Northern Ireland - More
- December 23, 2008 | Item | E-mail
Kansai secures future development of Migori Gold Project in Kenya - More
- December 23, 2008 | Item | E-mail
IAMGOLD Options Merrex Gold's Siribaya Gold Project in Mali and Confirms Equity Position in Merrex Gold - "IAMGOLD Corporation ("IAMGOLD") (Toronto:IMG.TO - News)(NYSE:IAG - News)(BOTSWANA: IAMGOLD) has entered into a definitive Option Agreement ("Agreement") to earn a 50% interest in the Siribaya Gold project in Mali, West Africa, which is 100% controlled by Merrex Gold Inc. ("Merrex") (CDNX:MXI.V - News). IAMGOLD can earn its interest by spending Cdn$10.5 million over four years. As part of the Agreement, IAMGOLD completed a private placement of Cdn$1.5 million in Merrex by subscribing for 4,285,714 units at $0.35 per unit. Each unit is comprised of one common share of Merrex and one 12-month warrant, exerciseable at $0.45 per share." More
- December 23, 2008 | Item | E-mail
First Majestic Silver Corp.: La Encantada Updated NI 43-101 Report Increasing Reserves By 183% - "FIRST MAJESTIC SILVER CORP. (Toronto:FR.TO - News)(Other OTC:FRMSF.PK - News)(Frankfurt:FMV.F - News)(WKN: A0LHKJ) ("First Majestic" or the "Company") is pleased to announce an update regarding its activities in Mexico at the La Encantada Silver Mine and a new NI 43-101 Resource/Reserve update." More
- December 23, 2008 | Item | E-mail
Barrick Gold Appoints Aaron Regent as CEO - "Aaron's outstanding strategic capabilities and highly-focused results orientation will fit in well with Barrick's unique corporate culture," said Munk. "Our Board's thorough and professional search for a new leader has resulted in someone whom we believe will work most effectively and collaboratively with Barrick's proven management team. Aaron is uniquely qualified to both preserve Barrick's leadership position and to take us forward." More
- December 23, 2008 | Item | E-mail
Gold Fields on Track to Achieve Guidance of 840koz for Q2 F2009 - "Group cash costs and Notional Cash Expenditure are expected to be lower than the guidance published on 29 October 2008 due to favourable exchange rate movements against the South African Rand and the Australian Dollar relative to those provided in the guidance. If stated at the exchange rates used in the guidance ($/R8.00 and A$/$0.85), Group cash costs and Notional Cash Expenditure would have been broadly in line with the guidance of R149,000/kg ($580/oz) and R229,000/kg ($890/oz), respectively." More
- December 23, 2008 | Item | E-mail
Fronteer Development Group Inc.: Regional Drilling at Halilaga Intersects New Areas of Copper-Gold Mineralization - "Fronteer Development Group Inc. ("Fronteer" or the "Company") (Toronto:FRG.TO - News)(AMEX:FRG - News) is pleased to announce that widely spaced regional drilling at its Halilaga Project in northwestern Turkey has intersected encouraging new copper-gold mineralization, reinforcing the prospectivity of this emerging mineral belt." More
- December 23, 2008 | Item | E-mail
- Chris Mullen, Gold Seeker Report
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-- Posted Tuesday, 23 December 2008 | Digg This Article | Source: GoldSeek.com
Gold Seeker Closing Report: Gold and Silver Fall Over 1% and 5%, But Miners Gain Nearly 3%
