-- Posted Friday, 8 May 2009 | Digg This Article | | Source: GoldSeek.com
| Close | Gain/Loss | On Week |
Gold | $914.65 | -$0.05 | +3.12% |
Silver | $13.95 | -$0.07 | +11.60% |
XAU | 138.29 | +3.45% | +14.82% |
HUI | 343.34 | +3.38% | +13.93% |
GDM | 1035.55 | +3.01% | +13.58% |
JSE Gold | 2440.35 | +36.09 | +11.65% |
USD | 82.49 | -1.40 | -2.49% |
Euro | 136.33 | +2.34 | +2.76% |
Yen | 101.55 | +0.80 | +0.84% |
Oil | $58.63 | +$1.92 | +10.21% |
10-Year | 3.293% | -0.002 | +3.75% |
Bond | 120.328125 | -0.109375 | -1.50% |
Dow | 8574.65 | +1.96% | +4.41% |
Nasdaq | 1739.00 | +1.33% | +1.15% |
S&P | 929.23 | +2.41% | +5.89% |
The Metals:
Gold and silver rose to their session highs of $919.50 and $14.028 as the jobs data was released in early New York trade before they fell back off midmorning to see roughly 1% losses by about 10:30AM EST, but they then rallied back higher in the last few hours of trade and gold ended back near unchanged while silver ended with a loss of just 0.5%.
Euro gold fell to about €675 on euro strength, platinum lost $11 to $1136.50, and copper fell a couple of cents to about $2.15.
Gold and silver equities chopped around at just slightly higher levels in morning trade, but they then steadily climbed higher in afternoon action and ended with over 3% gains.
The Economy:
Report | For | Reading | Expected | Previous |
Nonfarm Payrolls | Apr | -539K | -600K | -699K |
Unemployment Rate | Apr | 8.9% | 8.9% | 8.5% |
Hourly Earnings | Apr | 0.1% | 0.2% | 0.2% |
Average Workweek | Apr | 33.2 | 33.2 | 33.2 |
Wholesale Inventories | Mar | -1.6% | -1.0% | -1.7% |
The BLS Net Birth/Death adjustment added 226,000 payrolls to April’s data and the Unemployment Rate rose to a new 25-year high.
All of this week’s other economic reports:
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil rose to new highs for the year, the U.S. dollar index plummeted, treasuries fell slightly, and the Dow, Nasdaq, and S&P rose about 2% on better than expected jobs data and confidence in the banking sector. The Dow, Nasdaq, and S&P have now all risen for nine straight weeks.
Among the big names making news in the market Friday were McDonald’s, Toshiba, Morgan Stanley, Fannie Mae, and Toyota.
The Commentary:
“Dear CIGAs,
It is evident after yesterday’s and today’s price action that the US monetary authorities are working overtime to thwart any rallies in the Comex gold market. Yesterday’s volume was the largest we have seen in more than a month but in spite of that, open interest in the active June contract increased only by a piddly 1,883 contracts. The push by gold bulls into the $920 level set off an avalanche of buy stops which was confirmed by the meager increase in open interest in that month on a volume of 124,794 in that month alone. The volume in the June was larger than the entire daily combined volume of all pit contracts for any day in more than a month! The amount of buy stops that were set off must have been enormous. Yet, price was repulsed in the face of a massive buying binge and promptly shoved back below the $920 level again. Only a fool or a price rigger would sell in such quantity when that volume of automatic buy orders are flooding the pit.
Today we saw the exact same pattern repeated once again – gold moved up strongly into the $920 level only to be summarily executed by its enemies. Make no mistake about our enemies in the gold arena – they can read technical charts and are fearful of a breach of $920 on a close because that will bring in momentum based buying and begin an upside trending move.
There really is not much to be gained any more by condemning this government sanctioned descent into third world banana republic techniques where crony capitalism replaces free market economics. The bullion banks get billions and billions of dollars courtesy of the taxpayers to bail them out from their stupidity and greed with the caveat that they must do their master’s bidding and work to keep the pretense that the creation of unlimited gazillions in paper dollars has no inflationary consequences. Most of the investment world outside of the US and the leaders of China, Russia, etc. know that the US authorities have been reduced to rigging the gold market as our nation goes into decline. Still, until those who buy gold to protect their wealth learn that these paper markets are nothing but diversions intended to suck up capital that could otherwise be used to acquire the real physical metal, the bullion banks will be able to get away with their jig.
The Dollar collapsed today breaking below the March 2009 low and the 40 week moving average in the process. Even the Yen moved up against it in today’s session. The result was a surge higher in large number of commodities with the energy complex in particular quite strong. Crude oil has pushed within $1.55 of $60 barrel! We continue to see this reflation trade which is pushing the CCI steadily higher. While the bullion banks are attempting to prevent gold from signaling that the market shift is now away from DEFLATION and towards INFLATION by sitting on its price, unfortunately for them, they cannot sit on the entire commodity complex which is reflected in the steady rise in the CCI. Good luck guys – you are going to need it. Our monetary officials in conjunction with the current administration have put into place policies which guarantee the Dollar’s descent into mediocrity.
Bonds managed a bit of a bounce today which in the scheme of things is probably more related to profit taking by shorts. The technical damage in the long bond has been done however with the market now thumbing its nose in the face of the Fed.
The mining shares are dramatically outperforming the paper gold price with the HUI and the XAU moving up into this year’s highs once again. If the HUI can maintain its current footing as of the time I write this, it is on target to put in its highest weekly closing price for this year. The XAU is similar but not quite as impressive looking as its cousin on the weekly chart. Still, the XAU is trading solidly above the 50 week moving average and has a shot at the 100 week if it can close above 143. It is appearing more and more likely that the shares are now leading bullion. If they continue to exhibit strength, the job of the price riggers at the Comex is going to become increasingly complicated.”- Dan Norcini, More at JSMineset.com
“June Gold closed down 0.6 at 914.9. This was 9.4 up from the low and 6.1 off the high.
July Silver finished down 0.075 at 13.955, 0.11 off the high and 0.16 up from the low.
The gold market tried to maintain a positive tilt into the US Non-farm payroll report, but in the wake of the data flow, June gold gave ground definitively. In fact, from the highs just ahead of the payroll report to the mid morning lows, June gold fell almost $16 an ounce. Apparently residual strength in the equity markets and a fresh new low for the move in the US Dollar failed to provide initial support to gold prices. With all the metals seemingly undermined by the monthly payroll report and gold somewhat overbought from the gains forged since the May 1st low, it wasn't surprisingly to see the bears regain some footing during the action on Friday.
The silver market also showed some early strength but was unable to hold in positive ground once all the influence from the scheduled data was absorbed. With July silver gaining over $2.00 from the May 1st low, part of the price weakness can likely be attributed to end of the week profit taking. Weak price action in copper and platinum may have also undermined silver considered a quasi industrial metal. In fact, seeing another sharp decline in payrolls may have shaken the confidence of the silver bulls raising some doubts over the prospect for an economic recovery.”- The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Decade of gold sales cost European central banks $40 billion
The Statistics:
As of close of business: 5/08/2009
Gold Warehouse Stocks: | 8,494,394 | -100 |
Silver Warehouse Stocks: | 117,826,913 | -66,086 |
Global Gold ETF Holdings
[WGC Sponsored ETF’s]
| Product name | Total Tonnes | Total Ounces | Total Value |
New York Stock Exchange Arca (NYSE Arca) AND Singapore Exchange (SGX) AND Tokyo Stock Exchage (TSE) AND Hong Kong Stock Exchange (HKEx) | SPDR® Gold Shares | 1,104.09 | 35,497,611 | US$ 32,380m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 132.88 | 4,272,241 | US$ 3,908m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 13.40 | 430,020 | US$ 394m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 29.09 | 935,284 | US$ 853m |
NASDAQ Dubai | Dubai Gold Securities | 0.16 | 5,000 | US$ 5m |
Note: Change in Total Tonnes from yesterday’s data: The JSE added 0.24 tonnes.
COMEX Gold Trust (IAU)
Profile as of 5/7/2009 | |
Total Net Assets | $2,010,460,114 | Ounces of Gold in Trust | 2,197,389.159 |
Shares Outstanding | 22,350,000 | Tonnes of Gold in Trust | 68.35 |
Note: No change in Total Tonnes from yesterday’s data.
Silver Trust (SLV)
Profile as of 5/7/2009 | |
Total Net Assets | $3,759,961,995 | Ounces of Silver in Trust | 268,400,195.900 |
Shares Outstanding | 272,450,000 | Tonnes of Silver in Trust | 8,348.18 |
Note: No change in Total Tonnes from yesterday’s data.
The Miners:
Tanzanian Royalty’s (TRE) private placement, International Royalty’s (ROY) gold royalty, Harmony’s third quarter results, Northgate’s (NXG) first quarter results, and MAG Silver’s (MVG) update on Fresnillo’s “take-under” bid were among the big stories in the gold and silver mining industry making headlines Friday.
WINNERS
1. Fronteer | FRG +20.33% $2.96 |
2. International Royalty | ROY +14.40% $3.02 |
3. Paramount | PZG +12.06% $1.58 |
LOSERS
1. US Gold | UXG-2.23% $2.19 |
2. Eldorado | EGO-1.51% $8.49 |
3. Entree | EGI -0.87% $1.14 |
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:
Tanzanian Royalty Announces C$1,000,000 Private Placement - "Tanzanian Royalty advises that it has entered into a private placement subscription agreement for $1,000,000 with Van Tongeren Management LLC (the “Placee”). The subscription, first initiated by the Placee on May 5, 2009, is for 340,020 common shares at a price of $2.941 per share, representing the five-day weighted average trading price of the common shares on the Toronto Stock Exchange for the period ended May 5, 2009 less a discount of fifteen (15%) percent. The funds will be utilized for working capital." More
- May 08, 2009 | Item | E-mail
Lake Victoria Mining Company Signs Letter of Intent to Acquire Up to 100% of Kilimanjaro Mining Company, Inc. - More
- May 08, 2009 | Item | E-mail
Capella Announces Investor Relations Option Grant - More
- May 08, 2009 | Item | E-mail
Ontex Announces the Filing of First Quarter Interim Financial Statements, Notes to the Financial Statements and Management's Discussion & Analysis - More
- May 08, 2009 | Item | E-mail
Acadian Mining Subsidiary, ScoZinc, is granted further extension of CCAA and Court approval to distribute plan of arrangement to creditors - More
- May 08, 2009 | Item | E-mail
MAG Silver Provides Update on Fresnillo "Take-Under" Bid - "MAG Silver Corp. (Toronto:MAG.TO - News)(AMEX:MVG - News) ("MAG"), announced today that it has delivered a formal application for a hearing before the Ontario Securities Commission to compel Fresnillo to produce the critical information that relates to Fresnillo's publicly disclosed plans to develop the Juanicipio joint venture property, owned jointly by MAG (44%) and Fresnillo (56%), as part of its Fresnillo II regional mine development plan. The failure of Fresnillo to provide this information resulted in the February 1, 2009 suspension by MAG's Independent Committee of the valuation that was being prepared in connection with a takeover bid for MAG proposed by insider Fresbal Investments, Ltd. (a wholly-owned subsidiary of Fresnillo plc)." More
- May 08, 2009 | Item | E-mail
International Royalty reports construction decision on world class Pascua gold royalty - "International Royalty Corporation (TSX: IRC, NYSE-Amex: ROY) ("IRC" or the "Company") reports today that Barrick Gold Corporation ("Barrick" or the "operator") announced that its world-class Pascua-Lama project is proceeding to construction. IRC owns the largest private royalty on the Chilean portion ("Pascua") of the Pascua-Lama project. It is a sliding scale royalty that varies with the price of gold. At a current spot gold price of around US$900/oz, the royalty rate would be 3.15% NSR and is expected to produce US$20 million in annual revenues to the Company. IRC purchased its Pascua royalty for a total of US$56.5 million in several transactions occurring in January through August of 2007." More
- May 08, 2009 | Item | E-mail
Ivernia Completes Previously Announced Refinancing - More
- May 08, 2009 | Item | E-mail
Company Profile for KIG Mining Plc - More
- May 08, 2009 | Item | E-mail
Zinccorp Resources Intersects 9.40 Meters of 5.36% Zinc, 16.36% Lead, and 152 g/t Silver - More
- May 08, 2009 | Item | E-mail
Royal Roads and Benton Resources increase interest in Long Range Nickel joint venture, Newfoundland - More
- May 08, 2009 | Item | E-mail
Bison Gold Announces Name Change and Share Consolidation - More
- May 08, 2009 | Item | E-mail
Patriot Gold Announces Drilling Results for Moss Mine Project, Arizona - More
- May 08, 2009 | Item | E-mail
TVI Pacific provides first quarter operations and financial update - More
- May 08, 2009 | Item | E-mail
La Mancha's Profits Surge as Australian Mine Turns Cash Flow Positive and Profitable - More
- May 08, 2009 | Item | E-mail
Colorado Goldfields Inc. -- Live Video on Day One Pride of the West Mill Reactivation, Part 2 of a Series - More
- May 08, 2009 | Item | E-mail
Cancor Mines Inc. announces listing on the CNSX - More
- May 08, 2009 | Item | E-mail
AuEx Ventures, Inc.: Exploration Program Commences at Long Canyon and West Pequop - More
- May 08, 2009 | Item | E-mail
Harmony Q3 headline EPS flat, output dips - "Harmony Gold Mining Co. (HARJ.J), the world's No.5 producer, on Friday reported lower output and headline earnings per share for the March quarter at 123 cents from a re-stated 121 cents in the December quarter." More
- May 08, 2009 | Item | E-mail
Northgate Minerals Generates Cash Flow from Operations of $45.2 Million in the First Quarter - "Northgate Minerals Corporation (TSX: NGX; NYSE Amex: NXG) today reported net earnings of $21,410,000 or $0.08 per diluted common share and cash flow from operations of $45,202,000 or $0.18 per diluted common share for the first quarter of 2009. Northgate's cash flow from operations includes cash proceeds of $19,182,000 from the early settlement of 9,000 tonnes of copper forward contracts." More
- May 08, 2009 | Item | E-mail
Harmony Q3 headline EPS flat, output dips - "Harmony Gold Mining Co. (HARJ.J), the world's No.5 producer, on Friday reported lower output and headline earnings per share for the March quarter at 123 cents from a re-stated 121 cents in the December quarter." More
- May 08, 2009 | Item | E-mail
Northgate Minerals Generates Cash Flow from Operations of $45.2 Million in the First Quarter - "Northgate Minerals Corporation (TSX: NGX; NYSE Amex: NXG) today reported net earnings of $21,410,000 or $0.08 per diluted common share and cash flow from operations of $45,202,000 or $0.18 per diluted common share for the first quarter of 2009. Northgate's cash flow from operations includes cash proceeds of $19,182,000 from the early settlement of 9,000 tonnes of copper forward contracts." More
- May 08, 2009 | Item | E-mail
MAG Silver Provides Update on Fresnillo "Take-Under" Bid - "MAG Silver Corp. (Toronto:MAG.TO - News)(AMEX:MVG - News) ("MAG"), announced today that it has delivered a formal application for a hearing before the Ontario Securities Commission to compel Fresnillo to produce the critical information that relates to Fresnillo's publicly disclosed plans to develop the Juanicipio joint venture property, owned jointly by MAG (44%) and Fresnillo (56%), as part of its Fresnillo II regional mine development plan. The failure of Fresnillo to provide this information resulted in the February 1, 2009 suspension by MAG's Independent Committee of the valuation that was being prepared in connection with a takeover bid for MAG proposed by insider Fresbal Investments, Ltd. (a wholly-owned subsidiary of Fresnillo plc)." More
- May 08, 2009 | Item | E-mail
- Chris Mullen, Gold Seeker Report
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-- Posted Friday, 8 May 2009 | Digg This Article | Source: GoldSeek.com