-- Posted 2 June, 2006 | | Source: SilverSeek.com
Market Analysis from GoldSeek.com, SilverSeek.com & CapitalUpdates.com:
Note: Gold Seeker Reports next week will be in a limited format or non-existent.
Today’s Economic Data:
Report | For | Reading | Expected | Previous |
Nonfarm Payrolls | May | 75K | 170K | 126K |
Unemployment Rate | May | 4.6% | 4.7% | 4.7% |
Hourly Earnings | May | 0.1% | 0.3% | 0.5% |
Average Workweek | May | 33.8 | 33.8 | 33.9 |
Factory Orders | Apr | -1.8% | -2.1% | 4.2% |
The BLS net birth/death adjustment added 211,000 payrolls. Previous month’s payrolls were also revised down by a total of 37,000. The economically disappointing numbers drastically reduced expectations for further fed interest rate hikes that were seen as almost a given just yesterday.
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| Close | Gain/Loss | On Week |
Gold | $636.80 | +$8.10 | -2.15% |
Silver | $12.10 | +$0.19 | -4.50% |
XAU | 143.64 | +1.38% | +0.74% |
HUI | 337.63 | +1.77% | +2.57% |
GDM | 1064.20 | +1.68% | +1.54% |
JSE Gold | 2845.76 | +1.88% | +1.68% |
USD | 84.02 | -0.79 | % |
Euro | 129.28 | +1.22 | +1.68% |
Yen | 89.63 | +0.84 | +1.05% |
Oil | $72.33 | +$1.99 | +1.35% |
10-Year | 4.994% | -0.114 | -1.15% |
Bond | 107.6875 | +1.21875 | +0.61% |
Dow | 11247.87 | -0.11% | -0.27% |
Nasdaq | 2219.41 | -0.02% | +0.41% |
S&P | 1288.22 | +0.20% | +0.63% |
This week’s economic reports:
Next week’s economic highlights include ISM Services on Monday, Consumer Credit on Wednesday, Initial Jobless Claims and Wholesale Inventories on Thursday, and Import/Export Prices and the Trade Balance on Friday.
Gold Warehouse Stocks: | 7,795,998 | - |
Silver Warehouse Stocks: | 108,442,786 | - |
CoT Reports: Gold | Silver
Gold fell to under $620 at one point in Asia, but it rose to above $630 in London and furthered its gains in New York to close with a gain of 1.29%. Silver dropped near $11.75 in Asia before it moved back above $12 in London and closed with a gain of 1.6% by the end of trading in New York.
Gold and silver equities traded about 1-2% higher throughout the day.
Euro gold remained near €490, platinum gained $32 to $1241, palladium gained $20 to $348, and copper gained about 10 cents to above $3.50. Note: Different source than normal for platinum and palladium quotes today.
NYMEX to remove price fluctuation limits on COMEX
From yesterday’s Midas report by Bill Murphy of LemetropoleCafe.com:
“Those waiting for gold and silver to correct got their wish. Now what? So many of the gold money manger players and pundits are out of the market. When do they get back in and who are they going to buy from … in size?
One of the leading bullion dealers in Europe says the gold move to the downside is over. The share action lately further suggests the gold/silver share sector is SOLD OUT! The gold/silver shares are now poised to resume their historic march upwards. Much fun and money to be made awaits.”
From The Hightower Report, Futures Analysis and Forecasting:
“The gold market initially responded favorably to the US non farm payroll readings, primarily because of their negative impact on the US Dollar. However, into mid session prices fell back as some in the trade fretted over the long run implications of a slowing US economy. With geopolitical anxiety surprisingly surfacing in the trade Friday we also suspect that flight to quality buying was also present in gold. The fact that Iran steadfastly refused to halt enrichment would seem to rekindle the potential for some type of pro-active action from the US. However, a number of key players on the UN Security Council members have reserved the right to back down from the use of force and that probably gives Iran the resolve to stand up against the US. In the end the gold market was lucky to get beyond the payroll report without some players fretting a slow down in the economy or fretting over deflationary commodity fund selling.
As suggested already in previous coverage today, the silver market was cheered on by the impressive gains in copper and platinum as that pushed sentiment back away from the commodity fund selling tilt that has periodically revisited the silver market since the May high. With stocks continuing to tighten and the rest of the metals building consolidation support on the charts, the silver market is giving off the impression that it has a value zone. However, many players think that additional slowing news and or a significant slide in equity prices might prompt silver to find an even lower value zone.”
The U.S. dollar index fell markedly and treasuries made impressive gains on disappointing economic data that reduced expectations for further fed rate hikes.
Oil rose about 2 dollars on worries over Iran, on refinery problems, and on news of kidnappings from an offshore oil rig off of Nigeria.
The Dow, Nasdaq, and S&P opened higher, fell off to find notable losses by late morning, and then rebounded into the close to end mixed and near unchanged. The debate on the trading floor seemed to be about whether the day’s economic data was too cold or not. Traders cheered the idea of a possible end to interest rate hikes, but feared the economy may be slowing too much.
Among the big names making news in the market Friday were Goldman Sachs, Walgreen, Revlon, Glaxo and Pfizer, Microsoft and Adobe, NYSE and Euronext, and Citigroup and BAA.
GATA Posts:
GATA reception and Grandich dinner seminar at Vancouver conference
Get ready for some real good price discovery on the Comex
As Goldman Sachs will run Treasury, Morgan Chase will run IMF
James Turk: Bull markets continue for gold and silver
Nigel Maund: The coming financial holocaust
Robert K. Landis: Gold is money -- Pass it on
Gold & Silver Stock News Update from GoldReview.com:
Newmont’s (NEM) trial in Indonesia and Randgold’s (GOLD) annual update were among the big stories in the gold and silver mining industry making headlines Friday.
WINNERS
1. Seabridge | SA +12.9% $10.85 |
2. Rio Narcea | RNO +10.05% $2.08 |
3. Lihir Gold | LIHRY +8.9% $45.50 |
LOSERS
1. Canyon Resources | CAU -3.08% $1.26 |
2. Gammon Lake | GRS -2.32% $12.22 |
3. Crystallex | KRY -1.64% $4.19 |
All of Friday's gold and silver stock news:
Golden Queen Mining Co. Ltd. - Exercise of Warrants - More
- June 02, 2006 | Item | E-mail
Goldrea Resources Corp.: New Gold Zone Discovered at Dongjingkou on the Westward Extensions of the Daye Structure - More
- June 02, 2006 | Item | E-mail
Labor troubles at mines around the world - "Unionized mine workers around the world have sought higher wages and better working conditions now that mining companies are profiting from record or near record-high prices for base and precious metals. Other issues that have led to protests and occasional violence are environmental damage from mining and revenue-sharing with local populations." More
- June 02, 2006 | Item | E-mail
Workers look to cash in on mining industry riches - "A steep run-up in metal prices and soaring demand for raw materials have brought trickier labor relations for mining companies around the world, who find that unions have more clout to halt operations if they don't get a bigger share of the corporate profits." More
- June 02, 2006 | Item | E-mail
Northern Lion förvärvar Nynäsberget guldfyndighet - More
- June 02, 2006 | Item | E-mail
American Bonanza Closes $8.1 Million Private Placement - More
- June 02, 2006 | Item | E-mail
Rolling Rock Monument Bay Resource - More
- June 02, 2006 | Item | E-mail
Scoping Study on Estrades completed and delivered by Met-Chem; 43-101 compliant resources calculations commissioned to Roscoe Postle. - More
- June 02, 2006 | Item | E-mail
Aurelian Intersects 204.80 Metres Averaging 8.40 g/t of Gold at the FDN Epithermal Gold-Silver Discovery - More
- June 02, 2006 | Item | E-mail
Eagle Plains Commences Drilling on Coyote Creek Gypsum Project - More
- June 02, 2006 | Item | E-mail
Newmont: Verdict May Impact Investment - "U.S. gold mining giant Newmont Mining Corp.'s future operations in Indonesia hinge on the verdict in a criminal prosecution of one its senior executives, a company representative said Friday. "(Future investment) depends on the outcome," said Noke Kiroyan, president of local subsidiary PT Newmont Pacific Nusantara." More
- June 02, 2006 | Item | E-mail
Yukon Resources is Pleased to Announce that it has Initiated a NI43-101F1 Report on its Recently Acquired Quebec Sagar Property which it Holds in a Joint Ventur - More
- June 02, 2006 | Item | E-mail
Alhambra Resources Ltd. - Investment Seminar and European Investor Tour - More
- June 02, 2006 | Item | E-mail
RETRANSMISSION: Guyana Goldfields Intersects 304.1 Metres of 4.85 g/t Au. - More
- June 02, 2006 | Item | E-mail
Retransmission: Plexmar Finds Silver and Copper Associated With the Gold - More
- June 02, 2006 | Item | E-mail
RANDGOLD RESOURCES LIMITED - Annual Information Update - "In accordance with Prospectus Rule 5.2, Randgold Resources Limited submits its first Annual Information Update, following the publication of our Annual Report in March 2006. This Annual Information Update refers to information that has been published or made available to the public in Jersey, the UK, USA and Canada." More
- June 02, 2006 | Item | E-mail
Infinity Mining Corp. (Canada) Has a New Symbol, IFYGF - More
- June 02, 2006 | Item | E-mail
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- Written by Chris Mullen
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-- Posted 2 June, 2006 | |
