-- Posted 15 May, 2006 | | Source: SilverSeek.com
Market Analysis from GoldSeek.com, SilverSeek.com & CapitalUpdates.com:
Today’s Economic Data:
Report | For | Reading | Expected | Previous |
NY Empire State Index | May | 12.4 | 16.1 | 15.8 |
Net Foreign Purchases | Mar | $69.8B | $75.5B | $90.5B |
Net Foreign Purchases covered March’s trade deficit of $62.0 billion reported last week. Tomorrow at 8:30AM EST brings Building Permits for April expected at 2,040,000, Housing Starts for April expected at 1,950,000, PPI for April expected at 0.8%, and Core PPI for April expected at 0.2%. At 9:15 is Capacity Utilization for April expected at 81.5% and Industrial Production for April expected at 0.5%.
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| Close | Gain/Loss |
Gold | $683.60 | -$26.90 |
Silver | $13.32 | -$0.89 |
XAU | 149.65 | -6.12% |
HUI | 343.27 | -6.87% |
GDM | 1088.91 | -7.06% |
JSE Gold | 2899.31 | -7.36% |
USD | 84.66 | +0.78 |
Euro | 128.17 | -0.92 |
Yen | 90.74 | -0.05 |
Oil | $69.41 | -$2.63 |
10-Year | 5.153% | -0.033 |
T-Bond | 105.875 | +0.3125 |
Dow | 11428.77 | +0.42% |
Nasdaq | 2238.52 | -0.23% |
S&P | 1294.50 | +0.25% |
Gold Warehouse Stocks: | 7,746,526 | - |
Silver Warehouse Stocks: | 122,882,228 | - |
Gold rose near $720 in Asia, plummeted near $685 at the close of trade in Asia and open of trade in London, and traded in a range between $685 and $700 for the rest of trade in London and for most of morning trade in New York, but it then fell under $680 in afternoon New York trade before a small rally into the close took it off its lows of the session. Silver followed a similar pattern and lost 6.26% to top gold’s 3.79% loss.
Euro gold fell near €530, platinum lost $36 to $1,274 to fall from all-time highs, palladium lost $24 to $363, and copper fell over 20 cents near $3.60.
Gold and silver equities dropped markedly at the open and remained near their lows throughout trade to end with losses of about 7%.
From Peter Grandich of the Grandich Letter:
“After 22 years in and around the financial services industry and enough losses to know I must put my pants on one leg at a time like the rest of us, I stopped believing I could time markets on a consistent basis. However, last Thursday, technical analysis work I do that dates back to before the 1987 stock market crash, produced the biggest overbought reading ever for copper, gold and silver. It was so compelling that I felt I owed it to my readers to alert them of it and the belief that a very substantial correction could occur literally in a matter of hours (Please read http://news.goldseek.com/Grandich/1147363320.php )
Since then, a sharp correction has apparently begun. The $64,000 question is, will it be another couple day wonder and on to new highs, or a more meaningful decline that lasts weeks or even months? I’m sorry to say that I don’t have a solid answer. What I can say is:
- The secular bull market in gold has so far eaten up and spit out any and all who have claimed the end was here.
- It has corrected just enough to remove itself from the front pages before charging on again to new heights.
- All the fundamental factors that have made me so bullish remain. The only two factors that have changed are the metals are no longer cheap and my aggressive bullishness is no longer clearly a minority viewpoint.
I believe the above is the bottomline good news. The not so good news is:
- The easy money is over. The crowd has finally awoken but the “Johnny-come-latelys” who piled on in the last few weeks may need to be washed out before we can pick up where we left off prior to gold being front-page news.
- There’s a strong chance that we will need to work our way lower after the natural rebound we should see into tomorrow and Wednesday. Friday’s weekly close is one of the more important ones in quite some time.
- If there are indeed forces who have manipulated and/or capped the precious metals market and haven’t already been killed or maimed, they are all but certainly going to use this hiccup and hope to turn it into a whooping cough, in hopes of salvaging some serious losses.
What’s the best course of action?
- Decisions made in very emotional times tend not to be our best choices. Turn off the computer and TV, take a long walk and try to remember what your plan was just a few days ago and ask yourself if some serious fundamental changes occurred that warrant action or would any actions you take just be in reality a way of releasing the stress?
- If you realize you really didn’t have a solid plan that took into account the potential negatives, get one ASAP. The volatility witnessed these last couple of days is going to be around more often as we move into the more speculative and mature nature of this secular bull market.
- The ultimate crime in investing is not being wrong (trust me) – it’s staying wrong.
Stay tuned.”
From Friday’s Midas report by Bill Murphy of LemetropoleCafe.com:
“There is no way we are going to get a meaningful price break from these price levels, IMO. If I know the Iranians are buying physical gold, with price no object, you can be sure the so-called smarties at Goldman Sachs know what the Café membership knows. The entire Gold Cartel is going to cover as fast as they can. Good luck to the crooks. No, make that bad luck. The bums are doomed.
On that note, gold could easily and briefly take out $700 on the downside. Should it do so, and that is only a supposition, and then take out today's high, we will see $800 gold sooner than most anyone thinks. Should it take out today's $732 next week without going down first, we should see $800 gold by the end of the month.”
From The Hightower Report, Futures Analysis and Forecasting:
“The gold market was under aggressive early pressure early Monday and quickly extended the opening losses. However, even in the face of comments from the media that referred to a "bubble burst" the gold market managed a $7 to $8 bounce off the early lows into mid session. With oil prices sharply lower and the US Dollar showing signs of strength it certainly wasn't surprising to see gold come under moderate selling pressure. In fact, with all the metals down and copper apparently leading the way lower some players were surprised that prices were able to rebound at all. On the other hand, it would seem that US economic numbers continued to soften and with the equity showing some initial downside extension on the opening, there is more of a deflationary tilt than an inflationary tilt in the precious metals markets. However, trade reports are that many specs are content to hold long positions into the upcoming inflation reports, while other suggested that it will suspect strength in the Dollar and sustain weakness in oil prices to permanently shift the gold market fundamentals into the bear camp.
At times the silver market was more than $1.00 lower in the early going but the market managed to recoil away from the lows and seemed to find some support above even numbers of $13.00. Apparently the market is a little concerned about Chinese demand for a host of commodities but with China allowing its currency to appreciate versus the US Dollar, we would have to think that China is insulating its economy against rising oil prices and that the rising currency should also make buying expensive precious metals a little less painful. On the other hand, the overt weakness in the copper market is undermining silver as the silver market has shown a tight correlation with the copper market over the last several weeks. A number of traders have suggested that the close today in the silver market after this mornings weakness, could be a very important signal of the near term trend in silver prices.”
Oil fell 3.65% on word from OPEC that they think demand is lagging behind supply and that it may drop further.
The U.S. dollar index gained for the first day in 5 and rebounded from 13 month lows as Japan indicated it may not raise interest rates as fast as some expected. Speculation that PPI and CPI this week will influence the fed to continue to raise interest rates in the U.S. also seemed to encourage dollar buying.
Treasuries gained and the yield on to 10-year fell from 4 year highs as economic data came in weaker than expected and the dollar strengthened.
The Dow, Nasdaq, and S&P traded mixed and near unchanged as most weighed various company reports and prepared for inflation data.
Among the big names making news in the market today were Bausch & Lomb, Target, Boeing, AstraZeneca and CAT, and HealthSouth.
GATA Posts:
Peter Brimelow: Gold grinds in
IMF acts to avoid market 'meltdown'
Goodbye, 'strong dollar policy' -- traders say U.S. is happy to see it fall
Grandich expects short 10-15% dive in gold, then up again
Central bankers are backing 'Plaza lite' to devalue U.S. dollar
Julian Phillips: A 'spike' or something else?
St. Louis business columnist quotes GATA board member Wistar Holt
Kuwait revalues currency; other Gulf countries may follow
Howe Street interviews James Turk; GoldSeek interviews Bill Murphy
Chancellor's losses hit $6.6 billion as gold touches record high
Scrap thieves in France ransack railroad lines for copper
Banks face vast losses in copper mayhem
Despite higher gold prices, miners can't boost production for years
Bolivia expected to raise taxes on mining but not nationalize
Gold & Silver Stock News Update from GoldReview.com:
First Quarter 2006 Results from Vista gold (VGZ), Rio Narcea (RNO), and Gammon Lake (GRS), Glamis Gold’s (GLG) mine output and update on Central American operations, Entree Gold’s (EGI) comments on Mongolia’s tax measure, Banro’s (BAA) closed exercise of over-allotment option, Randgold’s (GOLD) board appointments, Ivanhoe’s (IVN) comments on Mongolia’s tax measure, Gold Reserve’s (GRZ) closed C$30 million public offering, Metallica’s (MRB) environmental review authorization, Great Panther’s (GPR.V) revenue from Topia, and Fortuna’s (FVI.V) drill results were among the big stories in the gold and silver mining industry making headlines today.
WINNER
1. US Energy | USEG +0.42% $7.16 |
LOSERS
1. Entree Gold | EGI -26.21% $1.52 |
2. Ivanhoe Mines | IVN -22.03% $7.22 |
3. Taseko Mines | TGB -16.27% $2.78 |
All of today's gold and silver stock news:
Phoenix Matachewan Mines Inc.: New Issue - More
- May 15, 2006 | Item | E-mail
Luna Gold Corp. - Grant of stock options pursuant to plan - More
- May 15, 2006 | Item | E-mail
Lakota Plans Tanzania Exploration - More
- May 15, 2006 | Item | E-mail
Vista Gold Corp. Announces First Quarter Financial Results - "Vista Gold Corp. announced today its financial results for the three months ended March 31, 2006, as filed on May 15, 2006, with the US Securities and Exchange Commission in the Corporation's Quarterly Report on Form 10-Q. Vista reported a consolidated net loss for the three-month period ended March 31, 2006 of US$1.1 million or US$0.05 per share compared to a consolidated net loss of US$1.0 million or US$0.05 per share for the same period in 2005." More
- May 15, 2006 | Item | E-mail
$5,300,000 cash received on exercise of warrants - More
- May 15, 2006 | Item | E-mail
China Gold Corp. Announces Correction on Forward Stock Split - More
- May 15, 2006 | Item | E-mail
North Atlantic Resources Ltd.: First Quarterly Report 2006 - More
- May 15, 2006 | Item | E-mail
Drilling continues to expand silver mineralization at Corani - More
- May 15, 2006 | Item | E-mail
High River Gold Arranges Project Debt Financing for the Berezitovy Project In Russia - More
- May 15, 2006 | Item | E-mail
Eaglecrest Explorations Ltd.: Diamond Drilling Defines Continuity of Main Structure/Quartz Vein Along Strike and Downdip - More
- May 15, 2006 | Item | E-mail
Cabo to drill Commander Resources' Baffin Island gold project - More
- May 15, 2006 | Item | E-mail
Augusta Starts Pre-Feasibility and Drill Program on Nevada Projects - More
- May 15, 2006 | Item | E-mail
Pan African Mining Corp.'s Core Drill Arrives in Madagascar - More
- May 15, 2006 | Item | E-mail
Pan American Gold Corporation Acquires New Mineral Property in Mexico's Nayarit State - More
- May 15, 2006 | Item | E-mail
QGX: Windfall Profit Tax Introduced in Mongolia - More
- May 15, 2006 | Item | E-mail
Spider & KWG Finalize Joint Venture Revision to Advance Projects - More
- May 15, 2006 | Item | E-mail
Avnel Gold Mining Limited (AVK: TSX) announces first quarter 2006 results period ended march 31, 2006 - More
- May 15, 2006 | Item | E-mail
Redcorp Ventures Ltd.: Acquisition of Vila de Rei Gold Project, Portugal - More
- May 15, 2006 | Item | E-mail
General Minerals Corporation Files March 31, 2006 Quarterly Report - More
- May 15, 2006 | Item | E-mail
Citadel Gold Mines Inc. announces proposed sale of general partnership interest in Citabar Limited Partnership - More
- May 15, 2006 | Item | E-mail
Exall Resources Limited: Fourth Drill Rig Commences at Gold Eagle Project - More
- May 15, 2006 | Item | E-mail
Southern Star Resources Inc.: Fourth Drill Rig Commences At Gold Eagle Project - More
- May 15, 2006 | Item | E-mail
Everton Secures its Gold and Copper Group of Concessions in the Eastern Dominican Republic - More
- May 15, 2006 | Item | E-mail
Crew Gold Corp. Results from Operations Quarter Ended March 31, 2006 - More
- May 15, 2006 | Item | E-mail
Great Panther Receives First Revenues from Topia Silver-Lead-Zinc Mine; Expands Development on Dos Amigos Vein System - "GREAT PANTHER RESOURCES LIMITED is pleased to announce that it has reached another significant milestone in its development as a primary silver producer with the receipt of its first revenues from the sale of concentrates from the Topia Mine in Durango, Mexico. Meanwhile development at the Mine is continuing with the exposure of high grade silver-lead-zinc mineralization on the Dos Amigos Vein." More
- May 15, 2006 | Item | E-mail
Capital Gold Appoints Vice President of Operations - More
- May 15, 2006 | Item | E-mail
GlobeStar Discovers Nickel in the Dominican Republic: Initial results include 16.7m at 2.0% nickel - More
- May 15, 2006 | Item | E-mail
Glamis says protest won't hurt mine output - "Glamis Gold said on Monday that last week's temporary closure of its Marlin Mine in Guatemala, due to a demonstration by non-mine workers, wouldn't affect its 2006 production forecast. Mining and milling production was halted for less than 24 hours on Friday after former mine construction workers blocked access roads to protest wages." More
- May 15, 2006 | Item | E-mail
International Gold Resources Announces Its New Brazilian Gold Projects - More
- May 15, 2006 | Item | E-mail
Continuum Resources Ltd Intercepts of 1772 g/t Ag and 10.5 g/t Au over 4.1m at San Jose Project - More
- May 15, 2006 | Item | E-mail
Pelangio intersects wide zone of gold mineralization west of West Pit resource at Detour Lake - More
- May 15, 2006 | Item | E-mail
Yorbeau to Dewater Augmitto Underground Workings - More
- May 15, 2006 | Item | E-mail
Atna Receives Positive Test Mining Results - More
- May 15, 2006 | Item | E-mail
Imperial Reports Results for the First Quarter 2006 - More
- May 15, 2006 | Item | E-mail
Radisson Closes a Private Placement of $1,207,500 - More
- May 15, 2006 | Item | E-mail
GlobeStar Consolidates 198 km2 of Nickel Laterite Concessions in the Dominican Republic - More
- May 15, 2006 | Item | E-mail
San Gold Receives New Cartwright Zone Results - More
- May 15, 2006 | Item | E-mail
Orvana Reports Record Revenues and Net Income For The Second Quarter Ended March 31, 2006 - More
- May 15, 2006 | Item | E-mail
Apogee Receives Letter of Guarantee from Bolivian Government - More
- May 15, 2006 | Item | E-mail
European Goldfields: Results For Q1 2006-First Profit Reported - More
- May 15, 2006 | Item | E-mail
Entree Comments on Surprise Mongolian Government Tax Measure - "Entree Gold Inc. reports that the National Parliament of Mongolia appears to have approved a new, excess-profits tax on minerals, in a surprise vote on the night of Friday, May 12. The measure was passed, without industry comment and little parliamentary debate, by a majority of members present (35 out of 45 parliamentarians). There are 76 elected members of Parliament, meaning that the legislation was approved by less than 50 per cent of the Parliament." More
- May 15, 2006 | Item | E-mail
Anatolia Announces Summary of Copler Gold Project - More
- May 15, 2006 | Item | E-mail
MAG Silver and Penoles Initiate 2006 Drill Program at Juanicipio - More
- May 15, 2006 | Item | E-mail
Wits Basin Announces Update to Colorado Assay Results - More
- May 15, 2006 | Item | E-mail
Twin Mining Corporation - First Quarter Report March 31, 2006 - More
- May 15, 2006 | Item | E-mail
Petaquilla Minerals Ltd.: More Gold Intercepted in Molejon Drilling - More
- May 15, 2006 | Item | E-mail
Globex Mining Enterprises Inc.: 5,000 Meter Drill Program at Duquesne West Gold Property - More
- May 15, 2006 | Item | E-mail
Fortuna Cuts 1772 g/t Ag and 10.5 g/t Au Over 4.1m at San Jose Project - "Fortuna Silver Mines Inc., Mr. Jorge Ganoza, President of the Company, is pleased to announce initial results from an ongoing drill program at the San Jose silver-gold project in Oaxaca, Mexico. A total of approximately 8600 metres of core drilling has been completed in 36 holes to date, using 2 core drill rigs." More
- May 15, 2006 | Item | E-mail
Anglo American seen unlikely Falconbridge bidder - "Anglo is in the midst of a sweeping reorganisation to simplify its structure by culling several subsidiaries to focus on its core mining units. Anglo has interests ranging from precious and industrial metals to coal, iron ore, steel, diamonds, paper and packaging. Xstrata, which already has a 20 percent stake in Falconbridge, said on Sunday it continued to review its options but had made no decisions about Falconbridge." More
- May 15, 2006 | Item | E-mail
Banro closes exercise of over-allotment option - "Banro Corporation is pleased to announce that it has completed the issuance of 451,000 common shares of the Company at a price of Cdn$12.80 per share, for gross proceeds to the Company of Cdn$5,772,800, pursuant to the exercise by RBC Capital Markets, Raymond James Ltd. and MGI Securities Inc. (collectively, the "Underwriters") of their over- allotment option." More
- May 15, 2006 | Item | E-mail
RANDGOLD RESOURCES LIMITED ANNOUNCES BOARD STRENGTHENED - "London and Nasdaq listed gold miner Randgold Resources today announced the appointment of two eminent international business leaders, Norborne P Cole, Jr and Karl Voltaire, as non-executive directors." More
- May 15, 2006 | Item | E-mail
Ivanhoe Mines' directors register company's concern about surprise Mongolian government tax measure - "Reports indicate that the parliamentary vote means that the government would impose a tax beginning at 68% when copper prices reach $2,600 a tonne ($1.18 per pound), and when gold reaches $500 an ounce. No formal text of the new law has yet been received." More
- May 15, 2006 | Item | E-mail
Gold Reserve Inc. Closes Cdn$30 Million Public Offering - "Gold Reserve Inc. announced today that it has closed its previously announced public offering of 3,335,000 Class A common shares of the Company at the purchase price of $9.00 per share for gross proceeds totalling Cdn.$30,015,000. Sprott Securities Inc. and RBC Capital Markets were joint book runners for the transaction." More
- May 15, 2006 | Item | E-mail
Glamis Gold Provides Update on Central American Operations - "Glamis Gold Ltd. today clarified recent events at its operations in Central America. At the Marlin Mine in Guatemala on Friday, May 12, non-mine workers blocked mine access roads to protest wages. Mining and milling was halted by the company for less than 24 hours as a precautionary measure to reduce tensions. Roadblocks ended late on Friday and mining and milling operations resumed. Initial media reports that the mine had been invaded and that hostages were taken were entirely erroneous." More
- May 15, 2006 | Item | E-mail
Gammon Lake Resources Announces US $40-Million Increase in Credit Facility, and Release of First Quarter 2006 Financial Results - "Gammon Lake commenced production from the Ocampo Open Pit Mine in the first quarter of this year, pouring the first gold-silver bar on February 1, 2006. During the quarter pre-commercial production equalled 2,578.95 ounces of gold and 53,743 ounces of silver. As of May 7, 2006 the Company had placed 587,534 tonnes of ore on the heap leach pad, averaging 1.24 grams per tonne gold and 47.19 grams per tonne silver." More
- May 15, 2006 | Item | E-mail
Metallica Resources Announces Environmental Authorization Confirmed at Cerro San Pedro Project, Mexico - "Metallica Resources Inc.'s Mexican subsidiary, MSX, has been served notice that the Mexican federal environmental authorities have complied with a court ordered review of the environmental authorization granted to MSX in 1999 for the Cerro San Pedro (CSP) project, and have validated the authorization with a few minor modifications." More
- May 15, 2006 | Item | E-mail
Rio Narcea Gold Mines Reports First Quarter 2006 Results and Details Conference Call/Webcast Information - "For the first quarter ended March 31, 2006, Rio Narcea reported a net income of $2.9 million or $0.02 per share on total revenues of $47.4 million. This compares to a net loss of $15.3 million and $0.10 per share on revenues of $9.0 million in the same period in 2005." More
- May 15, 2006 | Item | E-mail
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-- Posted 15 May, 2006 | |
