-- Posted 14 June, 2006 | | Source: SilverSeek.com
Market Close, June 14, 2006
| Close | Gain/Loss |
Gold | $562.20 | -$0.50 |
Silver | $9.69 | -$0.15 |
XAU | 122.71 | +2.19% |
HUI | 279.87 | +2.24% |
GDM | 894.98 | +2.36% |
JSE Gold | 2462.24 | +4.33% |
USD | 86.15 | -0.31 |
Euro | 126.08 | +0.61 |
Yen | 86.96 | +0.22 |
Oil | $69.14 | +$0.58 |
10-Year | 5.05% | +0.089 |
T-Bond | 107.5 | -0.84375 |
Dow | 10816.92 | +1.03% |
Nasdaq | 2086.00 | +0.65% |
S&P | 1230.04 | +0.52% |
The Metals:
Gold fell to under $550 in Asia but then rebounded to near $570 by early trade in London. It then fell near $565 by the open in New York which took it back above $570 before it fell off into the close and ended slightly lower. Silver followed a similar pattern in a range of about $9.50 to $10 and ended with a loss of 1.52%.
Euro gold fell near €440, platinum gained $23 to $1,134, palladium gained $17 to $289, and copper fell a little over 2 cents to the low $2.90s.
Gold and silver equities rose about 4% in early trade before they fell to near unchanged in afternoon trade, but they then rallied into the close and ended with over 2% gains.
The Economy:
Report | For | Reading | Expected | Previous |
CPI | May | 0.4% | 0.4% | 0.6% |
Core CPI | May | 0.3% | 0.2% | 0.3% |
On an annual basis, Core CPI rose 2.4%. This is above the fed’s comfort range and reinforces the position of more fed interest rate hikes. There was also some fedspeak today from Bies and Fisher about inflation. The fed’s Beige Book showed signs of slower economic growth and also showed concerns about inflation.
Tomorrow at 8:30AM EST brings Initial Jobless Claims for 6/10 expected at 320,000 and the New York Empire State Index for June expected at 11.0. At 9AM are Net Foreign Purchases for April, at 9:15 are Capacity Utilization for May expected at 82.0% and Industrial Production expected at 0.2%, and at noon is the Philadelphia Fed for June expected at 11.0.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil ended with decent gains after some mixed trade that was driven by inventory reports that showed oil inventories fell 900,000 barrels, gasoline inventories built 2.8 million barrels, and distillates built 2.1 million barrels.
The U.S. dollar index fell despite signs of further interest rate hikes. Many are looking forward to comments tomorrow from the Bank of Japan about what their plans are with their current zero-interest-rate policy.
Treasuries fell as interest rates moved up on the outlook for further interest rate hikes.
The Dow, Nasdaq, and S&P traded mostly higher and ended near their highs with impressive gains despite worries over inflation. The Nasdaq rose for the first time in 9 sessions.
Among the big names making news in the market today were Merck and Schering and Bayer, Singapore Air and Boeing, Goldman Sachs and AB Ports, Honda, and VeraSun.
The Commentary:
On the recent correction and who caused it:
“To accomplish their goal it is now very clear a substantial amount of central bank gold was mobilized, most likely US or IMF origin. Yes, there is substantial hedge fund, investor liquidation occurring around the world, and in all markets, but gold has been different. There wasn’t the normal spec build-up to liquidate like we saw in prior years. We know that because the open interest was going DOWN before this big break. This bombing is coming from the physical market.
The more I ponder this, the more it makes sense. The price of gold soared due to physical market buying by the Russians, Indians, Arabs, South Koreans, Chinese, Iranians, etc. That buying overpowered the available central bank supply. To calm the market down and bring the price lower, those buyers had to be punished, to be unnerved to some degree. The amount of mobilized central bank gold had to be very sizeable.”
- From yesterday’s Midas report by Bill Murphy of LemetropoleCafe.com:
“June Gold closed down 0.2 at 562.3. This was equal to the low and 8.7 off the high.
July Silver finished up 0.11 at 9.735, 0.225 off the high and 0.125 up from the low.
The gold market showed some bounce capacity early in the session but eventually the market seemed to give way to renewed selling pressure. With the US Dollar mostly undermined as a result of the CPI report it was looking like the gold market might have found a supporting fundamental, but later in the session the Fed speeches yielded a series of fresh inflation warnings and that bailed out the Dollar, which in turn undermined gold. In a strange twist of market conditions, seeing renewed inflation concerns is apparently a negative to gold! The Fed's Fisher suggested that some inflation readings were unacceptable and that other inflation gauges had reached corrosive levels and as we mentioned before that supported the Dollar and partially undermines the outlook for the economy. In the near term the metals markets seem to need direct support off the hope of physical demand because the hope for investment demand is currently in question.
The silver market did manage to reject a new low for the move but in looking at the charts, the market never really got out from under the bearish psychology seen in prior sessions. With the Dollar managing to hold together in the face of renewed inflationary concerns, it is not surprising to see physical demand driven markets like copper and silver register some concerning action. At the risk of sounding like a broken record, the silver and copper market continue to watch the ebb and flow of the equity market for hints on their near term direction. In fact, a number of silver players suggested that it could take two or three straight gains in silver and the equity market, to clearly downplay the concern of a resumption of commodity fund selling in markets that benefited from fund buying in the first half of 2006.”
- The Hightower Report, Futures Analysis and Forecasting:
From Charleston Voice:
“Subject: What's Going on with Gold Shares
The way I see it....who else?
Yes, the gold indexes are making a nice blip-up today, and it will probably continue throughout the day, if not for the remainder of the week. In fact, we may get a long-awaited turn-up in our weekly MACD bars and crossover in the SlowSTO indicator in the final summation of the HUI weekly chart. These confirmations are my security blanket, and reassurance that the field is safe to buy back into the golds and silvers.
Sights beautiful to behold are now popping up on many daily charts of the individual stocks - many, many have pulled back or even dipped below their 200-day mov. avgs. Pull your daily charts back to say, 2001, and you'll get a snapshot of an individual stock's behavior around its 200-dma.
What I am doing is cherry-picking & placing some buy limit orders somewhere around their previous swing highs just below where their price is now. Don't overlook the weekly performance MACD & SlowSTO for your individual stocks either! SSRI is a case in point. It is sitting right on its daily 200-dma, but its weekly MACD & SlowSTO are not positive yet! Give the volume bars a glance at the bottom of your stock's price chart, too. You'll see the bigger picture shows a volume trough at bottoms, and high extremes at price peaks.
One last consideration is the newly formed GDX ETF. Although too new to throw off reliable sentiments, it can be useful for the volume indications that neither the HUI nor XAU give us. Go to the link above and see how the volume was increasing during the plunge. I would like to see that dry up a little more, and probably will be co-incident with positive weekly MACD & SlowSTO indicators.
True, you could be seeing the lows in some of the stocks right now, and be a hero to yourself for buying today, but as for me I like to see my orders perched up on my trading program that I can quickly adjust & respond when the $HUI gives me the go. At that juncture it'll be too late to run around trying to figure out what you should be. The window will close & you'll have to defer to others for what you should be doing for yourself right now.
For anyone not yet on the audio: Gold & Silver Bullet Train, it's pulling into the station offering you another opportunity to hop aboard. Move to the front of the platform and have your ticket in your hand. This train doesn't linger.
- Charleston Voice”
GATA Posts:
Why Arabian investors should buy and hold gold
Chile gives environmental approval to Barrick's Pasqua Lama project
Gold's crash brings on the bargain hunters
World needs financial system without a dominating currency, Russian
“My Two Ounces”
Daily readers will have noticed a few changes to the report recently. I welcome your feedback about these changes and encourage ideas for further changes.
What are your two ounces? Access our forum here or send your comments by email to cm@goldseek.com
The Statistics:
Gold Warehouse Stocks: | 7,795,446 | - |
Silver Warehouse Stocks: | 108,928,359 | - |
Global Gold ETF Holdings
[WGC Sponsored ETF’s]
| Product name | Total Tonnes | Total Ounces | Total Value |
New York Stock Exchange (NYSE) | Streettracks Gold Shares | 355.53 | 11,430,662 | US$ 6,703m |
LSE (London Stock Exchange) AND Euronext Paris | Gold Bullion Securities | 76.01 | 2,443,652 | US$ 1,358m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 9.43 | 302,914 | US$ 168m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 10.77 | 346,121 | US$ 210m |
COMEX Gold Trust (IAU)
Profile as of 06/13/2006 | |
Total Net Assets | $743,982,810 | Ounces of Gold
in Trust | 1,322,842.091 |
Shares Outstanding | 13,300,000 | Tonnes of Gold
in Trust | 41.14 |
Silver Trust (SLV)
Profile as of 06/13/2006 | |
Total Net Assets | $701,000,564 | Ounces of Silver
in Trust | 66,966,694 |
Shares Outstanding | 6,700,000 | Tonnes of Silver
in Trust | 2,082.9 |
The Stocks:
Earnings released late yesterday by Mines Management (MGN) and Centerra Gold’s (CG.TO) temporary suspension of operations at Boroo were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Gold Reserve | GRZ +21.21% $4.80 |
2. Lihir Gold | LIHRY +11.74% $39.13 |
3. Rubicon Minerals | RBY +10% $1.21 |
LOSERS
1. Cardero Resource | CDY -3.89% $1.73 |
2. Richmont Mines | RIC -1.4% $3.52 |
3. Arizona Star | AZS -1.18% $10.08 |
Winners & Losers tracks NYSE and AMEX listed gold and silver mining stocks that trade over $1.
All of today's gold and silver stock news:
Augusta Releases Preliminary Assessment on Rosemont Copper Project: Robust Project Economics - More
- June 14, 2006 | Item | E-mail
General Metals: Ghana Acquisition Update - More
- June 14, 2006 | Item | E-mail
Centerra Reports Temporary Suspension of Boroo Operations - "Centerra Gold reported today that as a precaution it has suspended operations at its Boroo mine in Mongolia. This action is in response to a demonstration by about 100 protesters at the mine site today. The demonstrators are led by the Popular Party, a small party on the fringe of Mongolian politics that has recently been criticized by the Mongolian Cabinet for its statements with respect to the Boroo project. The Cabinet stated that Boroo conducts its operations in accordance with Mongolian law and that the demands of the Popular Party are illegitimate and unconstitutional." More
- June 14, 2006 | Item | E-mail
AntOro Acquires a Portfolio of Properties in Northern and Eastern Ontario - More
- June 14, 2006 | Item | E-mail
Duncan Park Holdings Corporation Commences Phase 4 Drilling of Geophysical Targets at Elephant Gold and Silver Property in Nevada - More
- June 14, 2006 | Item | E-mail
Drilling Intersects Major Sulfide Mineralization at Bilbao Project, Zacatecas - More
- June 14, 2006 | Item | E-mail
Nuinsco Announces Management Restructuring, Approval of Resolutions at AGM - More
- June 14, 2006 | Item | E-mail
Freewest Acquires Otter Lake Gold Property in Southwestern New Brunswick - More
- June 14, 2006 | Item | E-mail
HE-5 Resources, Corp. Releases Update on Permit for Overman Property - More
- June 14, 2006 | Item | E-mail
Uranium One Reports Significant Increase in Resources at its Dominion Uranium Project - More
- June 14, 2006 | Item | E-mail
Golden Arch Resources Acquires Antelope North Oil Prospect, Texas - More
- June 14, 2006 | Item | E-mail
Infinex Ventures Inc. - Update On Agreement With Property In Chile - More
- June 14, 2006 | Item | E-mail
Sao Luis Mining Names Jack Lake Its President and Board Chairman - More
- June 14, 2006 | Item | E-mail
Equitable Mining Announces Project Operating Finances arranged. - More
- June 14, 2006 | Item | E-mail
Sparton Acquires High Grade Silver-Gold Property in Tainhang Mountains, Hebei Province, China - More
- June 14, 2006 | Item | E-mail
Scorpio Mining Announces Major New Discovery at the Nuestra Senora Silver Project - More
- June 14, 2006 | Item | E-mail
Linux Gold Corp. Subscribes for 1,000,000 Units of Teryl Resources Corp. - More
- June 14, 2006 | Item | E-mail
JNR and Altius Provide Update on Rocky Brook Uranium Project - More
- June 14, 2006 | Item | E-mail
Coral Gold Resources Ltd.: Further Drilling Results - More
- June 14, 2006 | Item | E-mail
Exeter Resource Corporation: Mandibula Zone Drilling Identifies Significant New Gold Mineralization at La Cabeza - More
- June 14, 2006 | Item | E-mail
Redcorp Ventures Ltd.: Tulsequah Project Drilling Intersects High Grade Zones - More
- June 14, 2006 | Item | E-mail
Altius and JNR Provide Update on Rocky Brook Uranium Project - More
- June 14, 2006 | Item | E-mail
GOLDSTAKE: McGarry Ontario-Gold Drilling Successful - More
- June 14, 2006 | Item | E-mail
Dynacor adopts a shareholder rights plan - More
- June 14, 2006 | Item | E-mail
Drake Gold Resources Inc. Completes Formation of the Diamond Exploration and Development Division (Drake Diamonds) - More
- June 14, 2006 | Item | E-mail
Konigsberg Corporation Enters Into Definitive Agreement on "Yoquivo" Gold/Silver Property - More
- June 14, 2006 | Item | E-mail
Cloudbreak to Commence Exploration on Its 100% Owned Romanian Au-Ag & Base Metals Prospect - More
- June 14, 2006 | Item | E-mail
Pacific Comox Closes $3.7 Million Financing - More
- June 14, 2006 | Item | E-mail
Tournigan Grants Stock Options - More
- June 14, 2006 | Item | E-mail
- Chris Mullen, Gold Seeker Report
- Would you like to receive the Free Daily Gold Seeker Report in your e-mail? Click here
Additional Resources for today’s Gold Seeker Report can be found:
© Gold Seeker 2006
Note: This article may be reproduced provided the article, in full, is used and mention to Gold-Seeker.com is given.
Disclosure: The owner, editor, writer and publisher and their associates are not responsible for errors or omissions. The author of this report is not a registered financial advisor. Readers should not view this material as offering investment related advice. Gold-Seeker.com has taken precautions to ensure accuracy of information provided. Information collected and presented are from what is perceived as reliable sources, but since the information source(s) are beyond Gold-Seeker.com’s control, no representation or guarantee is made that it is complete or accurate. The reader accepts information on the condition that errors or omissions shall not be made the basis for any claim, demand or cause for action. Past results are not necessarily indicative of future results. Any statements non-factual in nature constitute only current opinions, which are subject to change. Nothing contained herein constitutes a representation by the publisher, nor a solicitation for the purchase or sale of securities & therefore information, nor opinions expressed, shall be construed as a solicitation to buy or sell any stock, futures or options contract mentioned herein. Investors are advised to obtain the advice of a qualified financial & investment advisor before entering any financial transaction.
-- Posted 14 June, 2006 | |
