-- Posted 24 May, 2006 | | Source: SilverSeek.com
Market Analysis from GoldSeek.com, SilverSeek.com & CapitalUpdates.com:
Today’s Economic Data:
Report | For | Reading | Expected | Previous |
Durable Orders | Apr | -4.8% | -0.5% | 6.6% |
New Home Sales | Apr | 1198K | 1135K | 1142K |
Durable Goods Orders disappointed economically and that raised hopes for a pause in interest rate hikes by the fed, but those hopes were somewhat offset by New Home Sales rising 4.9%. However, that 4.9% rise is from March’s 1,142,000 reading that was downwardly revised from 1,213,000. So, in actually, New Home sales actually fell from March’s initially reported number, but they did still come in higher than expectations.
Tomorrow at 8:30AM EST brings Initial Jobless Claims for 5/20 expected at 318,000 and the preliminary reading for 1st quarter GDP expected at 5.8%. The Chain Deflator is expected at 3.3%. At 10AM are Existing Home Sales for April expected at 6,750,000 and the Help-Wanted Index for April expected at 38.
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| Close | Gain/Loss |
Gold | $637.40 | -$36.00 |
Silver | $12.51 | -$0.67 |
XAU | 135.54 | -4.00% |
HUI | 312.03 | -3.93% |
GDM | 992.13 | -3.95% |
JSE Gold | 2716.46 | -3.21% |
USD | 84.96 | +0.56 |
Euro | 127.76 | -0.94 |
Yen | 88.76 | -1.20 |
Oil | $69.86 | -$1.90 |
10-Year | 5.034% | -0.032 |
T-Bond | 107.25 | +0.21875 |
Dow | 11117.32 | +0.17% |
Nasdaq | 2169.17 | +0.48% |
S&P | 1258.57 | +0.16% |
Gold Warehouse Stocks: | 7,796,127 | - |
Silver Warehouse Stocks: | 116,731,231 | - |
Gold initially fell to trade near $665 in Asia, but it then rose back near $670 in early London trade before falling to the low $660s by the open in New York. It then immediately fell to $650, consolidated, dropped to $640, consolidated, and then dropped even further at the close to end near its lows of the session with a 5.35% loss. Silver remained around $13 in Asian and early London trade, but it then fell near $12.50 by the New York open before it traded in a range of about $12.50 to 12.75 for most of trade in New York and closed near the bottom of that range with a loss of 5.08%.
Euro gold fell near €500, platinum lost $34 to $1,276, palladium lost $14 to $344, and copper lost over 15 cents to just under $3.60.
Gold and silver equities steadily fell off throughout most of trade to find over 5% losses at one point, but they then rallied in the last 2 hours of trade and ended with losses of less than 4%.
From Peter Grandich of the Grandich Letter:
“11:30 a.m. EDT
May 24, 2006
GRANDICH LETTER SPECIAL ALERT:
Gold Correction Nearing its End -
Copper a Disaster Waiting to Happen
A sentiment indicator of mine has just turned positive for gold after reaching its most bearish level ever just two weeks ago. It is likely going to have to go to very bullish before we get “the” bottom, but it suggests the correction is all but near its end (hours, days or few weeks away at most).
I’m also pleased to see even some of the most vocal bulls turn cautious in their published commentaries this morning. We need gold off the front page, as it was for most of the rise until the New Year.
I continue to “love” the precious metals (gold, silver, platinum and palladium) and especially uranium, but I’m extremely bearish on copper. The International Copper Study Group report yesterday said the global refined copper market is expected to show a modest surplus in 2006 after ending 2005 with an essentially balanced supply versus demand. The copper market has witnessed the biggest short squeeze (combined with speculators running wild) ever! Its ending is all but certain to be the ugliest.”
From yesterday’s Midas report by Bill Murphy of LemetropoleCafe.com:
“The action in the gold shares is pitiful, especially considering how oversold the sector is. Investors who missed selling on the way down could not wait exit their positions today (Tuesday). Most of the gold pundits are still bearish, advising clients to sell on rallies. One day, some day, this will all change. We are not there yet.
LATE: This is most suspicious. First the gold shares drop like a stone late in the day, and now gold is down $7.80 in the Access Market. This is vintage Gold Cartel crap.
Gold remains the worst reported on market in history with the mainstream gold world hopeless and clueless. They are either comatose or disingenuous. This is why GATA wants to get our Gold Rush 21 DVD around as much, and as soon, as possible.”
From The Hightower Report, Futures Analysis and Forecasting:
“A wave of fund selling triggered a sharp sell off in gold prices and the weak close suggests the market may probe lower price levels before a solid bottom is found. The combination of a stronger Dollar, weaker energy prices, and some soft US economic data helped to sour bullish sentiment that was seen in Tuesday's session. The Dollar had a strong close and made a run at Monday's highs putting the currency in a technically positive position. Rising gasoline stocks pressured the energy complex and took the edge off inflation expectations. The sharp decline in April durable goods raises doubts about the economy's strength.
Although silver traded with in Tuesday's range it gave back nearly all of yesterday's gains leaving the market which suggest the market may need to see more sideways consolidation before a firm bottom takes hold. Certainly the surprise 4.8% decline in April durable goods orders dented bullish sentiment in silver as orders for civilian aircraft, computers and electronics saw sharp declines. With the Silver Institute reporting implied net investment in silver increased by 23% in 2005 and the recent launch of new silver ETF's, high volatility days in silver may become more commonplace. The Silver Institute also reported demand for silver rose 3% in 2005 to 864.4 million ounces last year.”
Oil traded about $1 lower ahead of inventory reports that showed crude inventories fell 3 million barrels, gasoline inventories built 2.1 million barrels, and distillates built 2.5 million barrels. The drop in crude was larger than expected, but the builds in gasoline and distillates were bigger than expected. The price of oil initially cut its losses on the larger than expected drop in crude inventories, but it eventually fell off to new lows on the session and ended nearly $2 lower as the builds in gasoline and distillates dragged all energy prices lower.
The U.S. dollar index gained as traders concentrated more on the strong housing data and took that as an indication that the fed may continue to raise interest rates. Many were also planning ahead for tomorrow’s GDP report.
Treasuries gained on weak Durable Goods Orders data, but then pared their gains a bit as New Home Sales came in better than expected.
The Dow, Nasdaq, and S&P found decent gains early on weak economic data, but they then fell off on strong housing data. All three indices rallied from their losses in late trade and ended near their highs, however, as oil ended near its lows and interest rates ended lower.
Among the big names making news in the market today were General Motors, MasterCard, Burger King, Vonage, Microsoft, Washington Mutual, Wyeth, Deutsche Boerse and Euronext, and Nissan.
GATA Posts:
Investment Rarities' Jim Cook interviews Ted Butler: 'Load the boat with silver'
Blanchard CEO Doyle sees gold at $800 this year, $1,000 in two years
Gold & Silver Stock News Update from GoldReview.com:
Richmont’s (RIC) update on exploration work, Royal Gold’s (RGLD) officer appointments, Great Panther’s (GPR.V) land purchase and shipment of concentrates, and Silver Standard’s (SSRI) drill results were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Minefinders | MFN +1.31% $7.73 |
2. IAMGOLD | IAG +1.31% $9.25 |
3. Ivanhoe | IVN +0.43% $6.99 |
LOSERS
1. Meridian Gold | MDG -8.16% $29.14 |
2. Rio Narcea | RNO -7.89% $1.75 |
3. Cardero | CDY -7.11% $2.22 |
All of today's gold and silver stock news:
Band-Ore Resources Ltd.: Proposed Option Agreement on GQ Diamond Property Terminated - More
- May 24, 2006 | Item | E-mail
Michigan Gold Announces Option to Acquire Mine - More
- May 24, 2006 | Item | E-mail
Island Gold Project Update Information Concerning East Amphi Project - "Richmont Mines Inc. announces an update of exploration work completed as of April 30, 2006 on the Island Gold Project and its plans for the remainder of the year and also announces information relating to the technical report dated March 8, 2006 filed by Richmont in respect of the East Amphi Project." More
- May 24, 2006 | Item | E-mail
Gossan Strips Alto-Gardnar To Expose Gold Showing - More
- May 24, 2006 | Item | E-mail
Media Advisory: Dia Bras Exploration Annual Meeting - More
- May 24, 2006 | Item | E-mail
Marathon Announces Drill Results for Dunlop Zone - More
- May 24, 2006 | Item | E-mail
Corriente's Annual General Meeting to be Held May 25, 2006 - More
- May 24, 2006 | Item | E-mail
Great Panther Purchases Additional Land at Guanajuato & Commences Shipment of Concentrates - "GREAT PANTHER RESOURCES LIMITED is pleased to announce that it has purchased, through its Mexican subsidiary, an additional 3.88 hectares of real estate adjacent to the plant at its Guanajuato Silver-Gold Mine Complex in Guanajuato, Mexico. Meanwhile, a shipment of concentrate resulting from the Guanajuato plant commissioning process has been sent to the Penoles smelter in Torreon." More
- May 24, 2006 | Item | E-mail
Fronteer Development Group Inc.: Aurora Discovers Potential Source for High-Grade Uranium Boulders at Melody Lake in Labrador - More
- May 24, 2006 | Item | E-mail
International Arimex Plans Klaw Work Program - More
- May 24, 2006 | Item | E-mail
Exploration commences on Copper Rridge's Lucky Joe copper-gold project, Yukon - More
- May 24, 2006 | Item | E-mail
IRC updates investors on Voisey's Bay royalty payment and Western Australian gold royalty acquisition - More
- May 24, 2006 | Item | E-mail
Aurelian Resources Inc. Adopts Shareholder Rights Plan - More
- May 24, 2006 | Item | E-mail
Southern Star Resources Announces Appointment of New Director - More
- May 24, 2006 | Item | E-mail
Moydow Mines International Inc.: Drilling Commences on the Hwidem Gold Project in Ghana - More
- May 24, 2006 | Item | E-mail
San Gold Continues to Add to New Cartwright Zone - More
- May 24, 2006 | Item | E-mail
Pearl Asian Mining Industries Inc. (PAIM) SqueezeTrigger Price is $0.0002 - More
- May 24, 2006 | Item | E-mail
Franc-Or Announces Extension of Expiry Date on Newmont Subscription Receipts - More
- May 24, 2006 | Item | E-mail
Franklin, COMIBOL Joint Venture Is Structured to Revitalize Mining Operations at Historic Cerro Rico de Potosi - More
- May 24, 2006 | Item | E-mail
Royal Gold Names Tony Jensen Chief Executive Officer; Stanley Dempsey Remains Executive Chairman - "ROYAL GOLD, INC., the leading precious metals royalty company, today announced its Board of Directors has elected President and Chief Operating Officer Tony Jensen to the position of Chief Executive Officer effective July 1, 2006. Stanley Dempsey will step down as CEO but remain Executive Chairman of the Board of Directors and will continue to be involved in the Company's strategic activities." More
- May 24, 2006 | Item | E-mail
Drake Gold Resources Inc. Outlines Corporate Strategy - More
- May 24, 2006 | Item | E-mail
Golden Eagle Receives Funding to Confirm B and C Zone Gold Deposits and to Initiate Pilot Production - More
- May 24, 2006 | Item | E-mail
Midlands Minerals Corporation announces emergence of an anomalous gold zone northeast of Newmont Mining's Akyem deposit on the Ashanti Belt in Ghana - More
- May 24, 2006 | Item | E-mail
SearchGold Reports Grades of up to 26.58 G/T Au from a 2.1 Km Mineralized System on Mandiana, Guinea - More
- May 24, 2006 | Item | E-mail
Vantex Acquires a Gold Property - More
- May 24, 2006 | Item | E-mail
Norsemont Mining Inc. - Phase II Drilling Currently Underway at Constancia - More
- May 24, 2006 | Item | E-mail
Metalline Mining Announces Additional Sierra Mojada Plaza Rica Drill Results - More
- May 24, 2006 | Item | E-mail
Grande-Vallée : Development of an alumina extraction process by the CEPROCQ - More
- May 24, 2006 | Item | E-mail
Birim Goldfields and Troy Resources Enter Into a Strategic Alliance, Troy Resources Leads Private Placement by Birim - More
- May 24, 2006 | Item | E-mail
Apogee Finds new High Grade Silver-Zinc-Gold Zone at 100% Owned La Solucion Mine - More
- May 24, 2006 | Item | E-mail
Golden Valley Mines Ltd.: Exploration Update - More
- May 24, 2006 | Item | E-mail
Liberty Star Stakes 20 New Uranium Pipe Targets--Geophysical Field Work Starts - More
- May 24, 2006 | Item | E-mail
Atlas Mining Updates on Three Newfoundland Copper Properties - More
- May 24, 2006 | Item | E-mail
Farallon Resources Ltd.: Nevada Supreme Court Denies Request for Rehearing - More
- May 24, 2006 | Item | E-mail
Southwestern Resources and Inco Limited to Form Joint Venture for Nickel Exploration in China - More
- May 24, 2006 | Item | E-mail
Cash Minerals Retains Australian IOCG Uranium Geologist - More
- May 24, 2006 | Item | E-mail
Dynacor: Pre-Feasibility Study of the Pasto Bueno mine completed - More
- May 24, 2006 | Item | E-mail
Sacre-Coeur Receives ALS Chemex Check Assays on Million Mountain - More
- May 24, 2006 | Item | E-mail
Tournigan Files Final Short Form Prospectus - More
- May 24, 2006 | Item | E-mail
De Beira Identifies Klaus Eckhof, President and Director of MOTO Goldmines as Investor of US$2,000,000 at US$4.20 per Share - More
- May 24, 2006 | Item | E-mail
Globex Options Nordeau Gold Deposits to Plato Gold - More
- May 24, 2006 | Item | E-mail
Carpathian Gold Inc. drilling continues to intersect and expand the size of the gold (Au) copper (Cu) mineralization on the Colnic Au-rich Porphyry Prospect - More
- May 24, 2006 | Item | E-mail
Silver Standard Confirms Mineralization at the South Ridge Zone of Pitarrilla Silver Project in Mexico - "Silver Standard Resources Inc. is pleased to report that infill diamond drilling at the South Ridge of the Pitarrilla silver project in Mexico continues to confirm the mineralization with silver values over thick intervals. The wholly-owned project is located approximately 150 kilometers (90 miles) north of Durango City in the state of Durango." More
- May 24, 2006 | Item | E-mail
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- Written by Chris Mullen
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-- Posted 24 May, 2006 | |
