-- Posted 10 February, 2006 | | Source: SilverSeek.com
Market Analysis from GoldSeek.com, SilverSeek.com & CapitalUpdates.com:
Report | For | Reading | Expected | Previous |
Trade Balance | Dec | -$65.7B | -$64.8B | -$64.7B |
Treasury Budget | Jan | $21.0B | $8.0B | $8.6B |
December’s trade deficit was the third largest on record, coming in only lower than last October’s $67.9 billion mark and September’s $65.8 billion mark. Exports climbed to a record high $111.5 billion, but imports also climbed to a record $177.2 billion to make for December’s imbalance. For the entire year of 2005, the trade deficit surged 17.5% to a new record of $725.8 billion. It marks the fourth straight record year. The deficit also set a record high as 5.8% of GDP. The U.S. also set record high deficits with China ($201.6B), Japan ($82.7B), Europe ($122.4B), OPEC ($92.7B), Canada ($76.5B), Mexico ($50.1B), and South and Central America ($50.7B).
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| Close | Gain/Loss | On Week |
Gold | $550.20 | -$14.60 | -2.98% |
Silver | $9.35 | -$0.27 | -3.71% |
XAU | 138.66 | -3.07% | -6.15% |
HUI | 310.21 | -3.33% | -6.64% |
GDM | 971.95 | -3.10% | -6.19% |
JSE Gold | 3046.30 | -1.92% | -1.68% |
USD | 90.56 | +0.31 | +0.75% |
Euro | 119.17 | -0.56 | -0.88% |
Yen | 84.84 | +0.63 | +0.91% |
Oil | $61.84 | -$0.78 | -5.40% |
10-Year | 4.581% | +0.040 | +1.06% |
Bond | 112.5 | -0.34375 | -0.69% |
Dow | 10919.05 | +0.33% | +1.16% |
Nasdaq | 2261.88 | +0.27% | -0.03% |
S&P | 1266.99 | +0.25% | +0.23% |
This week’s economic reports:
Next week’s economic highlights include Retail Sales on Tuesday, Net Foreign Purchases on Wednesday, the Philadelphia Fed on Thursday, and PPI and Michigan Sentiment on Friday. Also next week is the congressional testimony of new fed chairman Bernanke on Wednesday and Thursday.
Gold Warehouse Stocks: | 7,377,071 | -10,329 |
Silver Warehouse Stocks: | 125,506,007 | - |
After starting off a few dollars higher in early Asian trade, gold soon fell off and held slightly under $560 in London and early New York trade, but it then fell off markedly in midmorning New York trade and remained near its lows into the close to erase nearly all of its gains from Thursday. Silver followed a very similar pattern and ended near its Tuesday lows.
Gold and silver equities fell off over 4% in the first hour of trade before rebounding slightly from there, but they still ended notably lower.
Euro gold fell near €460, platinum lost $22 to $1,032, palladium lost $19 to $280, and copper dropped noticeably to under $2.25.
More Precious Metals Analysis:
“April gold closed sharply lower as fund selling continued and the trade was disappointed with the market's lack of follow through overnight from the sharply higher close yesterday. The stronger Yen is also adding pressure to the metals, as Japanese investors who had been investing in gold to protect their devaluating currency are now starting to believe that the Bank of Japan is planning to shift to a tighter monetary policy.” - The Hightower Report, Futures Analysis and Forecasting
"Speculators outran physical demand and were left out in the cold this week. A pullback to the lower part of the $500 will see the pent-up physical demand from India and other physical buyers return in force, but not chasing prices.
Next week the lower it gets the tighter the bowstring for the next run? At least the market is used to the $500s now. With no change in the strong fundamentals, this market is far from over. But the market needs a new foundation for the price, lower down. Then the trade, professionals and new long-term Investors will be much happier!" - Julian D.W. Phillips of www.goldforecaster.com
“Gold’s volatility has exploded this week with Friday’s reversal of Thursday’s gains. With spot gold unable to close above $566, we are ready to retest the support in the low $540’s with the $525 support becoming the next downside target. Next week looks to be a difficult one for gold and silver.
Despite the negative short-term picture emerging in gold and silver, we must be reminded of the strong long-term fundamentals in place. Sell-offs will find many willing buyers who recognize that gold is set to continue its bull run towards and past $1,000 an ounce. One component of the bullish argument is the record setting US trade deficit data released this morning. This problem for the U.S. Dollar continues to grow by the day and this just adds to the luster of gold.
Metal equities will have some difficulty in the short-run as well, after dramatic gains over the past months. The HUI is set to retest 295-300, with a possibility of 260-270 on the table. Such a pullback does not damage the bull market scenario one bit. It is part of a bull market consolidation from which a strong foundation is built for the next run higher!” – Peter Spina of www.goldforecaster.com
The U.S. dollar index initially fell on the economically disappointing record trade deficit data, but it then inexplicably rebounded in technical driven trade and ended higher. The dollar even rebounded versus the yen from large early losses despite the fact that Japan further hinted towards easing from its easy money policy. The dollar made a new 6 week high and the euro fell to a 6 week low.
Oil started off near unchanged before dropping following the International Energy Agency’s report citing falling demand. Signs of rising capacity also helped to push oil to 6 week lows.
Treasuries gained early Friday on record trade deficit data and continued momentum from Thursday’s 30-year bond sale, but they then fell off to find slight losses in afternoon trade as traders looked ahead to next week which brings new fed chairman Bernanke in front of Congress. Many are expecting hawkish comments from the chairman that would hurt the bond market and traders planned ahead accordingly.
The Dow, Nasdaq, and S&P started off lower on poor earnings and economic data, but they then turned higher by the close as oil ended lower and some optimism returned to Wall Street.
Among the big names making news in the market Friday were Sony, Pfizer, Volkswagen, Visteon, and Novartis AG.
Gold & Silver Stock News Update from GoldReview.com:
AngloGold Ashanti’s 4th quarter earnings results, Freeport-McMoRan’s deal with Indonesia, and plenty of junior and exploration stock news were among the big stories in the gold and silver mining industry making headlines Friday.
WINNERS
1. Cardero | CDY +3% $3.43 |
2. Claude Resources | CGR +2.8% $1.10 |
LOSERS
1. Freeport-McMoRan | FCX -8.76% $51.85 |
2. Rio Narcea | RNO -6.84% $1.77 |
3. Aurizon | AZK -6.42% $1.75 |
All of Friday's gold and silver stock news:
Indonesia Seeks New Deal With Freeport - "Indonesia wants to renegotiate its profit-sharing agreement with U.S. mining giant Freeport because of soaring mineral prices on the global market, Indonesia's vice president said Friday. "Prices of gold and nickel are currently high, (and) based on this, profit sharing should be increased by two to three times from the previous figures," Jusuf Kalla told reporters, without elaborating on whether the terms of the government's current deal allow for renegotiation." More
- February 10, 2006 | Item | E-mail
Freeport McMoRan, Newmont Mining Shares Plunge as Copper, Gold Prices Fall - "Freeport-McMoRan Copper & Gold Inc., which runs the world's biggest gold mine in Indonesia, Newmont Mining Corp. and other producers fell as prices of copper and gold declined. All 16 members of the Philadelphia Stock Exchange Gold & Silver Index fell with the index down 3.2 percent to 138.41. Shares of New Orleans-based Freeport fell $4.14, or 7.3 percent, to $52.69 at 3:16 p.m. in New York Stock Exchange composite trading. A close at that price would be the biggest one-day drop since October 2004. Denver-based Newmont, the world's largest gold producer, fell $1.23, or 2.2 percent, to $55.30 in New York." More
- February 10, 2006 | Item | E-mail
MILL CITY amends stock option plan and grants incentive stock options - More
- February 10, 2006 | Item | E-mail
Pediment Expands Investor Communications in Europe and Raises 1.5 Million - More
- February 10, 2006 | Item | E-mail
Volcanic Extends Purchase Warrant Expiry - More
- February 10, 2006 | Item | E-mail
BrazMin Corp. Closes Financing - More
- February 10, 2006 | Item | E-mail
Gryphon Gold Announces Third Quarter Financial Results - More
- February 10, 2006 | Item | E-mail
Bonaventure Enterprises Inc.: Drilling Program Underway at Goldfield West Property - More
- February 10, 2006 | Item | E-mail
Pearl Asian Mining Industries, Inc. Clarifies the Forward Split of Its Shares 1 for 1,000 - More
- February 10, 2006 | Item | E-mail
Jasper Mining Corporation announces acquisition of Storm King property - More
- February 10, 2006 | Item | E-mail
Vena Resources Expands Board of Directors - More
- February 10, 2006 | Item | E-mail
Cypress Development Corp.: Drilling to Begin on Broulan Reef Gold Project, Update on McKenzie Island Drilling, Red Lake, Ontario - More
- February 10, 2006 | Item | E-mail
Company Profile for Pearl Asian Mining Industries, Inc. - More
- February 10, 2006 | Item | E-mail
Slam Exploration completes financing - More
- February 10, 2006 | Item | E-mail
Mansfield Drills Highest Grade Intercept to Date at Lindero, Argentina - More
- February 10, 2006 | Item | E-mail
Crew Gold Corporation: Drilling Continues to Extend Camp de Base Deposit with further Encouraging Intercepts And First Passing Drilling Of The Sikasso Prospect - More
- February 10, 2006 | Item | E-mail
James Walchuck Joins Buffalo's Advisory Board - More
- February 10, 2006 | Item | E-mail
Second Progress Update on the Tailings Leak at North American Palladium's Lac des Iles Mine - More
- February 10, 2006 | Item | E-mail
Calais Resources Announces New Corporate Officers - More
- February 10, 2006 | Item | E-mail
Strategic Metals Retains CHF Investor Relations - More
- February 10, 2006 | Item | E-mail
Twenty-Seven Capital Retains CHF Investor Relations - More
- February 10, 2006 | Item | E-mail
Caledonia Completes Private Placement - More
- February 10, 2006 | Item | E-mail
Additional Drill Targets Identified At Gossan's Bird River Sill Property - More
- February 10, 2006 | Item | E-mail
Centurion Gold Cancels Sale of Naboom to Fundy - More
- February 10, 2006 | Item | E-mail
AngloGold Ashanti Fourth Quarter Earnings Results - "For the year ended 31 December 2005, the company reported a 6% increase in production to 6.166 million ounces of gold, with total cash costs up 6% to $281/oz, mainly due to stronger local operating currencies in Argentina, Australia, Brazil and South Africa. A dividend of 62 South African cents (10 US cents) per share has been declared for the six months ended 31 December 2005. This represents a similar payout level of dividends to adjusted headline earnings, as per the mid-year declaration, resulting in a total dividend for the year of 232 South African cents (35 US cents) per share." More
- February 10, 2006 | Item | E-mail
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-- Posted 10 February, 2006 | |
