-- Posted 26 May, 2006 | | Source: SilverSeek.com
Market Analysis from GoldSeek.com, SilverSeek.com & CapitalUpdates.com:
Note: US markets will be closed Monday for Memorial Day. The Gold Seeker Report will return on Tuesday.
Friday’s Economic Data:
Report | For | Reading | Expected | Previous |
Personal Income | Apr | 0.5% | 0.7% | 0.5% |
Personal Spending | Apr | 0.6% | 0.6% | 0.5% |
Michigan Sentiment | May | 79.1 | 79.0 | 79.0 |
The core PCE index rose 0.2% for April. For the year, the index was up 2.1%, which is above the fed’s comfort level of 2.0%. The savings rate was -1.6%. The revised figure for Michigan Sentiment compares with April’s reading of 87.4, making for the biggest monthly drop since the hurricanes last year.
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| Close | Gain/Loss | On Week |
Gold | $650.80 | +$2.50 | -0.94% |
Silver | $12.67 | +$0.10 | +2.01% |
XAU | 142.59 | +0.32% | +1.82% |
HUI | 329.17 | +0.33% | +2.35% |
GDM | 1048.06 | +0.65% | +2.57% |
JSE Gold | 2798.71 | +1.80% | +1.83% |
USD | 85.22 | +0.47 | +0.40% |
Euro | 127.14 | -0.90 | -0.39% |
Yen | 88.70 | -0.78 | -0.82% |
Oil | $71.37 | +$0.05 | +4.14% |
10-Year | 5.052% | -0.022 | -0.04% |
Bond | 107.03125 | +0.15625 | -0.12% |
Dow | 11278.61 | +0.60% | +1.24% |
Nasdaq | 2210.37 | +0.55% | +0.75% |
S&P | 1280.16 | +0.57% | +1.04% |
This week’s economic reports:
Next week’s economic highlights include Consumer Confidence on Tuesday, FOMC minutes on Wednesday, Productivity and the ISM Index on Thursday, and May jobs data on Friday.
Gold Warehouse Stocks: | 7,796,095 | - |
Silver Warehouse Stocks: | 110,125,753 | - |
CoT Reports: Gold | Silver
Gold traded in a range of about $650 to $655 in Asia and London before it fell to under $645 in midmorning New York trade, but it then rebounded into the close and ended with a slight gain on the day. Silver traded near $12.70 in Asia, dropped to around $12.60 in London, and fell to under $12.50 in midmorning New York trade, but it then rebounded into the close and ended with a decent gain on the day.
Gold and silver equities fell about 1% in morning trade, but they then rebounded heading into afternoon trade and ended with small gains.
Euro gold moved above €510, platinum gained $3 to $1,288, palladium gained $1 to $348, and copper gained over 7 cents to above $3.75.
From yesterday’s Midas report by Bill Murphy of LemetropoleCafe.com:
“Gold took off this morning soon after it was announced that the Enron verdict was in on CEO Skilling and Chairman Lay. Goldman Sachs must have been the one driving the price up in an effort to extricate themselves from their massive gold short position … as rumor has it they are being eyed closely in their role in the gold scandal (only kidding, FOR NOW!).
Enron was voted the most innovative company in America for 7 years running by Fortune Magazine. As Enron was to energy, Goldman Sachs has been to gold. As Enron was arrogant, so is Goldman Sachs. Enron violated numerous securities laws, Goldman Sachs violated US anti-trust laws. Enron was convicted of conspiracy. Goldman Sachs should be convicted of conspiracy.”
From The Hightower Report, Futures Analysis and Forecasting:
“The gold market flopped back and forth during the last trading day of the week and with prices breaking from mid week highs, the action Friday seems to be a weak short covering attempt. However, the gold market was confronted with a very strong Dollar for most of the session and didn't really get a distinctly positive spin from equities or oil prices for most of the session. While the market remains on edge on the Iranian situation that is not a front burner topic in the Press. It does seem like the gold market leaves the week with a slightly more optimistic macro economic view and that should at least serve to discourage future bouts of broad based commodity fund selling. In the interim the bull camp in gold might be under significant pressure if the track of the equity market weakens or the Dollar follows through on the upside.
Like gold, the silver market chopped around on both sides of unchanged and did so despite the favorable track in copper prices and the somewhat favorable tilt floating off the equity market. However, the market is seeing two countervailing forces, a decrease in exchange stocks of silver and a slight softening of ETF trading volume and reserves of silver being held by the ETF's. It is possible that the trade sees the weekly COT reports as a positive as the spec and fund long position continues to level out without the price structure of silver deteriorating. Technical traders continue to note that volume and open interest patterns hint at less interest in downside moves that in upside moves.”
The U.S. dollar index gained in thin trade as traders squared positions heading into the long weekend. Some found the PCE data a bit too inflationary for the fed’s liking and that led to some dollar buying on the outlook for further interest rate hikes.
Oil remained near unchanged but ended with slight gains ahead of the long weekend that kicks off the summer driving season which may increase demand ahead of potential supply disruptions with hurricane season arriving soon.
Treasuries found slight gains on disappointing economic data.
The Dow, Nasdaq, and S&P gained for the 3rd day in a row as weak economic data raised hopes for a pause in interest rate hikes by the fed.
Among the big names making news in the market Friday were CBS and Howard Stern, FedEx and Watkins, Merck, Arcelor and Severstal, Las Vegas Sands, Ford, and Icahn, Lichtenstein, and KT&G.
GATA Posts:
Russia cools to dollar as it invests stability fund
Treasury Secretary Snow reported ready to resign
Gold & Silver Stock News Update from GoldReview.com:
Northgate’s (NXG) drilling, NovaGold’s (NG) agreement with Coast Mountain Power Corp. (TSX VENTURE: MW), Almaden’s (AAU) new project in Mexico, and Ivanhoe’s (IVN) Mongolian taxes were among the big stories in the gold and silver mining industry making headlines Friday.
WINNERS
1. Metallica | MRB +10.1% $3.27 |
2. Crystallex | KRY +8.75% $4.35 |
3. Northgate | NXG +8.7% $3.75 |
LOSERS
1. Entree Gold | EGI -4.48% $1.28 |
2. DRDGOLD | DROOY -4.32% $1.55 |
3. Kimber Resources | KBX -4.21% $2.50 |
All of Friday's gold and silver stock news:
Almaden Minerals Ltd.: New Mexican Silver-Lead-Zinc Project Acquired - "Almaden Minerals Ltd. is pleased to announce that it has acquired an undivided 100% interest in a new silver-lead-zinc prospect in Coahuila State, Central Mexico. This property (named by Almaden the "Viky" prospect) was discovered in 2005 during Almaden's regional exploration program in Central Mexico. The property was acquired through staking, although an undivided 100% interest in three small claims located in the vicinity has subsequently been purchased." More
- May 26, 2006 | Item | E-mail
Mayfair Mining & Minerals, Inc. Completes the Acquisition of Control of Union Prospection Miniere, Madagascar - More
- May 26, 2006 | Item | E-mail
AGA Resources, Inc. Purchases Equipment for Exploration - More
- May 26, 2006 | Item | E-mail
Blue Fyre One Inc. to resume trading Monday May 29, 2006 - More
- May 26, 2006 | Item | E-mail
Aurora Gold Corporation Announces That the Drilling Rig Has Arrived on Site and Drilling Will Commence on the Weekend of May 27, 2006 - More
- May 26, 2006 | Item | E-mail
Wildcat Silver Grants Options - More
- May 26, 2006 | Item | E-mail
Smelted copper expected to be exempt from Mongolia's Windfall Profits Tax law - "The senior management of Ivanhoe Mines have noted public statements by proponents of Mongolia's Windfall Profits Tax to the effect that the new tax is not intended to apply to high- grade copper produced through a smelting process." More
- May 26, 2006 | Item | E-mail
Sao Luis Mining Company Announces Forward Split - More
- May 26, 2006 | Item | E-mail
Summer Field Season Advancing at Pele Mountain's Highland Project - More
- May 26, 2006 | Item | E-mail
Pele Mountain Reports Progress on Festival Bulk Sample Processing - More
- May 26, 2006 | Item | E-mail
NORTHGATE INTERSECTS 8.92 g/tonne GOLD OVER 218.5 FEET AT YOUNG-DAVIDSON - "Northgate Minerals Corporation today announced that diamond drilling at its Young-Davidson property near the town of Matachewan, Ontario continues to intersect significant gold mineralization. Assay results from six additional drill holes are reported herein." More
- May 26, 2006 | Item | E-mail
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- Written by Chris Mullen
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-- Posted 26 May, 2006 | |
