-- Posted 17 July, 2006 | | Source: SilverSeek.com
| Close | Gain/Loss |
Gold | $650.30 | -$16.00 |
Silver | $11.00 | -$0.47 |
XAU | 140.10 | -3.41% |
HUI | 328.05 | -3.57% |
GDM | 1016.48 | -3.85% |
JSE Gold | 3267.84 | +0.42% |
USD | 86.98 | +0.83 |
Euro | 125.24 | -1.17 |
Yen | 85.38 | -0.70 |
Oil | $75.30 | -$1.73 |
10-Year | 5.069% | +0.010 |
T-Bond | 107.5 | +0.03125 |
Dow | 10747.36 | +0.07% |
Nasdaq | 2037.72 | +0.02% |
S&P | 1234.49 | -0.14% |
Monday’s markets where largely said to have been driven by developments in geopolitical tensions. Gold and oil were markedly higher in overnight trade, but they then both fell off by the open of trade in New York and continued to drop throughout trade to close with noticeable losses on the day. Increased conflict in the Middle East seemed to fuel gains in the metals and oil overnight, but word from the G8 that Iran is “seriously considering” an incentive package from world leaders in exchange for a halt in their nuclear program added to some hopes for an easing of tensions in the Middle East in the near future. This global easing of tensions was blamed for the sell off in the metals and oil today, but realistically, news coming out of the Middle East seems to be getting worse, not better, and Iran has played this “song and dance” with the world before. Every few weeks it seems a peaceful resolution with Iran is near, only to have all hopes dashed soon thereafter. Maybe it is different this time.
Also having an impact on today’s markets were some earnings reports and earnings expectations for a busy upcoming week, with several of the largest traded companies reporting quarterly results. But perhaps what will have the largest impact on the markets this week are some upcoming inflation data in the form of PPI and CPI and also some congressional testimony by fed chairman Bernanke. It has been this information that seems to play the largest “song and dance” routine. For now a year or more, hopes have been continually raised for a pause in interest rate hikes for a honeymoon period following the most recent rate hike, only to have those hopes dashed by the time the fed’s next meeting comes. Another rate hike comes after inflation data is reported to be too high and fed member’s comments are deemed to be too hawkish, only to have those expectations once again reversed immediately following the next rate hike. Maybe it is different this time.
I’m not sure what you’ve heard about the age old saying “maybe it is different this time,” but I’ve heard that it usually is not. I guess that sometimes, though, it must be. The key is to figure out when.
The Metals:
Gold rose to over $675 by late Asian trade, but it then fell off throughout trade in London and continued to drop in New York to as low as $645.10 before it rebounded a bit into the close to end back above $650. Silver rose to about $11.75 by late trade in Asia, but it then fell off throughout most of trade in London and New York and ended near its lows with a loss of 4.10%. At the time of writing, both metals are also trading in Access trade with over 1% additional losses from the day’s close.
Euro gold fell near €510, platinum lost $14 to $1,233, palladium lost $8 to $316, and copper dropped almost 10 cents, but held above $3.60.
Gold and silver equities fell throughout the trading session and closed with losses of nearly 4%.
The Economy:
Report | For | Reading | Expected | Previous |
NY Empire State Index | July | 15.6 | 21.8 | 29.0 |
Capacity Utilization | June | 82.4% | 81.9% | 81.8% |
Industrial Production | June | 0.8% | 0.4% | -0.1% |
Tomorrow at 8:30AM EST brings PPI for June expected at 0.3% and Core PPI expected at 0.2%. At 9AM are Net Foreign Purchases for May which will show whether foreigners have covered May’s Trade Deficit of $63.8 billion reported last week.
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The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil fell 2.25% from record highs on hopes for an easing of tensions in the Middle East and on the possibility that Iran may accept a proposal that would lead a halt to their nuclear development.
The U.S. dollar index found impressive gains on decent economic data. Many also suggested that the dollar benefited from a safe-haven status as investors exited riskier investments in times of geopolitical uncertainty, but I would suggest that it gained for the opposite reason. The largely touted belief today was that geopolitical tensions eased, not increased. As traders sold gold and oil and other assets on that easing, they moved into the dollar until situations reverse again.
Treasuries fell in early trade on strong industrial production data and on hopes for an easing of geopolitical tensions, but any losses were turned to slight gains by the close as traders looked ahead to a busy economic week and prepared for the possibility of an increase in global uncertainty after today’s easing.
The Dow, Nasdaq, and S&P opened somewhat higher on decent earnings reports, but they soon fell off to find slight losses before they rebounded to near unchanged for the rest of trade as traders watched geopolitical developments and looked ahead to earnings reports and economic data later in the week.
Among the big names making news in the market today were Pimco, Harley-Davidson, Airbus, Inco, Phelps Dodge, Falconbridge, Citigroup, McDonald’s, and Mattel.
The Commentary:
“Perhaps my complete disdain for what is going on with gold and the pathetic nitwit honchos in the mainstream gold world is carrying over from a phone call I received last night from a veteran of the mining industry. It was from a totally disgusted Café member in Europe. He has an account at a major Swiss bank who handles a large account in a gold equity fund for him. After learning of Oppenheimer lending shares to JP Morgan, so they can manipulate those gold shares, he contacted this bank to make sure they were not doing the same thing. To his horror, he found out THEY ARE! In this case the major Swiss bank’s gold equity fund is lending shares to their own banking division, which then shorts the market like JP Morgan, probably at the same time (strictly speculation on my part). This is why the gold shares always act so lousy. You have the gold funds acting in conflict with their own shareholder's interest to make an extra buck and to facilitate the Orwellian power structure.
This is like the US sending ammunition to Osama Bin Laden and Al Qaeda. It is beyond asinine.” - From Friday’s Midas report by Bill Murphy of LemetropoleCafe.com
“August Gold closed down 16.1 at 651.9. This was 5.9 up from the low and 12.9 off the high.
July Silver finished down 0.44 at 11.01, equal to the high and equal to the low.
The gold market managed a massive trading range on Monday and with the Dollar soaring, Oil prices softening and US economic numbers coming in a little better than expected it is not surprising that the overly long spec and fund position was partially pushed out of position. While the geopolitical flight to quality situation continues to support gold prices, that element is being countered by concerns of slowing physical demand in a host of physical commodity markets. Some traders suggested that they were fearful of renewed hawkish dialogue from the Fed Chairman in testimony later this week and with the US Industrial Production and Capacity Utilization readings coming in much stronger than expected, seeing a hawkish Fed is certainly an element that undermines the bull camp. In the end, the market was unable to buy fully into the flight to quality story when oil prices were down sharply, equity prices at times were higher and lastly with some talk of a potential cease fire deal in the works in Lebanon. In the end, the cease fire dialogue was significantly overshadowed by aggressive military action throughout the Middle East.
The silver market had little choice but to follow the liquidation in gold. In fact, with extremely significant declines in copper and a host of other physical commodity markets, it seems that the environment was ripe for long liquidation. Surprisingly stronger than expected US economic information, sharply lower oil prices and the ability to see a recovery in the equity market was unable to cushion the slide in silver, which was recently found to be moderately overbought. Traders left the session pointing to the $11.00 level on the charts as a critical psychological level but form the time being the silver market looks to be a following market, instead of a leadership market.” - The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Top bond manager expects Fed to cut interest rates by January
Coalition urges dollar devaluation to regain jobs in U.S.
U.S. may be going bankrupt, Federal Reserve consultant warns
The Statistics:
As of close of business: 07/14/2006
Gold Warehouse Stocks: | 8,064,858 | -488 |
Silver Warehouse Stocks: | 102,132,224 | +160,525 |
Global Gold ETF Holdings
[WGC Sponsored ETF’s]
| Product name | Total Tonnes | Total Ounces | Total Value |
New York Stock Exchange (NYSE) | Streettracks Gold Shares | 387.56 | 12,460,424 | US$ 8,263m |
LSE (London Stock Exchange) AND Euronext Paris | Gold Bullion Securities | 78.22 | 2,514,909 | US$ 1,618m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 9.62 | 308,651 | US$ 199m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 10.88 | 349,965 | US$ 232m |
Note: No change in Total Tonnes from Friday’s data.
COMEX Gold Trust (IAU)
Profile as of 07/14/2006 | |
Total Net Assets | $901,284,569 | Ounces of Gold
in Trust | 1,352,254.362 |
Shares Outstanding | 13,600,000 | Tonnes of Gold
in Trust | 42.06 |
Note: Change in Total Tonnes from Friday’s data: Addition of 0.93 Tonnes to trust.
Silver Trust (SLV)
Profile as of 07/14/2006 | |
Total Net Assets | $1,062,994,210 | Ounces of Silver
in Trust | 91,417,377 |
Shares Outstanding | 9,150,000 | Tonnes of Silver
in Trust | 2,843.4 |
Note: No change in Total Tonnes from Friday’s data.
The Stocks:
IMA Exploration’s (IMR) lost court battle with Aquiline Resources (AQI.TO) over the ownership of Navidad, Nevsun’s (NSU) metallurgical update, NovaGold’s (NG) work permits, and Rubicon’s (RBY) amended first quarter financial statements were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Gold Fields | GFI +0.91% $23.35 |
While not a NYSE/AMEX listed stock, it is certainly worthy of note that Aquiline Resources (AQI.TO) gained 101.98% to $5.11 today as winner of the court battle with IMA Exploration (IMR).
LOSERS
1. IMA Exploration | IMR -80.2% $0.60 |
2. Entree Gold | EGI -8.86% $1.10 |
3. Orezone | OZN -8.11% $1.36 |
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:
Valencia Commences Exploration Program at Rancheria Silver Project - More
- July 17, 2006 | Item | E-mail
Nevsun Resources Ltd.: Bisha Project Gold, Copper, and Zinc Deposit Metallurgical Update - "Nevsun Resources Ltd. is very pleased to report the finalized metallurgical test work data for the three phases of the future mining planned at its Bisha Project in Eritrea. Test work to assess the metallurgical parameters and metal recoveries from the Bisha surface oxide deposit, the supergene copper deposit and the primary zinc/copper massive sulphide deposit was conducted by SGS Lakefield, Ontario, Canada." More
- July 17, 2006 | Item | E-mail
Rubicon Amends First Quarter Finanical Statements and Management's Discussion and Analysis - "Rubicon's investment in Africo Resources Ltd is accounted for by the equity method and as such Rubicon's financial statements include Rubicon's share of Africo's losses. The original first quarter equity loss was calculated based on draft Africo financial statements which were prepared by management of Africo." More
- July 17, 2006 | Item | E-mail
Vault Minerals Grants Incentive Stock Options - More
- July 17, 2006 | Item | E-mail
BC Government Confirms NovaGold's Right to Continue Work on Pioneer's Grace Claims - "NovaGold Resources Inc. wishes to report today on the status of NovaGold's work permits on the Grace subsurface mineral claims granted by the BC Ministry of Energy and Mines. In response to a request by Pioneer to revoke NovaGold's work permits on the Grace Claims, on July 13, 2006 the BC Ministry of Energy and Mines wrote NovaGold and Pioneer a letter stating that after a detailed review NovaGold's permits under the Mines Act will remain in full force and effect." More
- July 17, 2006 | Item | E-mail
Taranis Completes IP/Resistivity Survey at Kettukuusikko - More
- July 17, 2006 | Item | E-mail
Sheffield Cuts 278 Metres (912 Ft.) of 0.40% Copper - More
- July 17, 2006 | Item | E-mail
Abacus Mining and Exploration Corp.: Drilling Continues to Expand Mineralized Zone at Ajax West Pit; East Pit Drilling Locates Previously Undefined Mineralized - More
- July 17, 2006 | Item | E-mail
Mirasol Announces Appointment of James Macdonald to Advisory Board - More
- July 17, 2006 | Item | E-mail
Fury Options Magistral I to Southern Silver Exploration - More
- July 17, 2006 | Item | E-mail
Guyana Goldfields Intersects 197m @ 4.21 g/t Au - More
- July 17, 2006 | Item | E-mail
Rocmec Mining Inc.: Start-Up Begins at Granada Mill - More
- July 17, 2006 | Item | E-mail
International Wayside Gold Mines Ltd.: An Updated Resource Estimate on Cow Mountain Within the Cariboo Gold Project, Wells, B.C. - More
- July 17, 2006 | Item | E-mail
Vior Intersects 7.6 g/t Au Over 3 Meters and 6.2 g/t Au Over 4 Meters at Douay - More
- July 17, 2006 | Item | E-mail
Young-Shannon Deadline for Purchase of 46.25% of Chester Gold Property with Private Company Passes-Offer Expires - More
- July 17, 2006 | Item | E-mail
Cogitore discovers massive sulphides at the Scott Lake Project - More
- July 17, 2006 | Item | E-mail
New VP-Exploration for MDN - More
- July 17, 2006 | Item | E-mail
Yankee Hat Minerals Ltd.: Exploration Update on Fran Property - More
- July 17, 2006 | Item | E-mail
Avnel Gold Completes Phase IV RC Drill Program at the Kalana Exploitation Permit, South Mali - More
- July 17, 2006 | Item | E-mail
Garuda Capital Corp. announces helicopter-borne geophysical survey for new mining prospect - More
- July 17, 2006 | Item | E-mail
Vantex Intersects 129.38 G/T AU on Lake Expanse - More
- July 17, 2006 | Item | E-mail
Manufacturing Of Gold Mining Equipment Completed and Shipped From China Today to Cagayan De Oro, Pearl Asian Mining Announces - More
- July 17, 2006 | Item | E-mail
East Asia Minerals discovers new copper oxide zones at Khok Adar; Receives additional Khok Adar drill assays - More
- July 17, 2006 | Item | E-mail
Reese Corp. Now Trading on Frankfurt Stock Exchange, First Property Acquisition to be Announced Shortly - More
- July 17, 2006 | Item | E-mail
MetalCORP; DRILLING Intersects More Copper-Zinc-Silver-Gold MASSIVE SULPHIDES at BIG LAKE Property - More
- July 17, 2006 | Item | E-mail
Keegan Drills Intercept Higher Grades at Asumura Gold Property - More
- July 17, 2006 | Item | E-mail
Andina Commences Aroma and Anocarire Drilling Programs - More
- July 17, 2006 | Item | E-mail
Pelangio intersects additional high grade gold from Flexure target west of former Detour Mine and extends Calcite Zone 100 metres - More
- July 17, 2006 | Item | E-mail
Skouries Reserves Increased by 13% - More
- July 17, 2006 | Item | E-mail
International Star, Inc. Announces Updates in the Exploration On Both Detrital Wash and Wikieup Properties - More
- July 17, 2006 | Item | E-mail
David Wahl joins Dumont as new director - More
- July 17, 2006 | Item | E-mail
Intrepid: Tax Deferral Information for Canadian Holders of Exchangeable Shares - More
- July 17, 2006 | Item | E-mail
Norsemont intersects 159 metres of 1.12% copper (1.22% cueq) in step-out drilling at the Constancia Project - More
- July 17, 2006 | Item | E-mail
Southwestern and Newmont Peru S.A.: New Zone of Silver Mineralization Identified-Liam Joint Venture, Peru - More
- July 17, 2006 | Item | E-mail
Global Copper Initates Drilling at Relincho - More
- July 17, 2006 | Item | E-mail
Sao Luis Mining, Inc. Announces Investor Relations Agreement With Europe - More
- July 17, 2006 | Item | E-mail
Merrex Update on Private Placement - More
- July 17, 2006 | Item | E-mail
Sonora Gold Corp. Announces Drilling Commences at The San Enrique Copper Moly Gold Project, Closes Red Tusk Acquisition, and Updates Santa Gertrudis Sale - More
- July 17, 2006 | Item | E-mail
Plexmar Resources Inc.: $2.1M Private Placement - More
- July 17, 2006 | Item | E-mail
IMA Reaffirms Intent to Appeal - "As stated in yesterday's press release, Management believes that the trial judge's interpretation of the confidentiality agreement in question is contrary to the terms of the agreement itself, industry practice and understanding and the facts made known at trial. The Company will ask the Court of Appeal that the judgment be set aside in its entirety." More
- July 17, 2006 | Item | E-mail
Aquiline Awarded Ownership of Navidad - "We welcome the judge's decision which should finally bring clarity to the ownership of Navidad and accelerate the development of this world-class project for the benefit of all stakeholders. This was a milestone case involving issues of particular importance to global resource industries and we are gratified that Aquiline's position has been upheld. I would like to thank the Company's investors, employees and advisors, who have stood by and supported Aquiline over these past three years while we attempted to bring this legal dispute to a successful conclusion and to our legal team for their tremendous efforts. With the decision rendered, I look forward to a smooth transition in the ownership of the Navidad property, which represents one of the largest undeveloped mineral deposits in the world and can be an important future contributor to the economy of southern Argentina." More
- July 17, 2006 | Item | E-mail
Judgment Goes Against IMA on Navidad Court Decision - "IMA Exploration Inc. wishes to announce that on Friday, July 14, 2006 after seven months of consideration Madam Justice Koenigsberg of the Supreme Court of British Columbia ruled against IMA Exploration Inc. in the case brought by Minera Aquiline Argentina SA alleging breach of a Confidentiality Agreement entered into between IMA and Newmont Mining in 2002 concerning the potential sale of a gold property in Argentina." More
- July 17, 2006 | Item | E-mail
Aquiline wins Navidad silver deposit - "After turning down a $21-million settlement last fall, Aquiline Resources has won ownership of the Navidad silver deposit in Argentina, defeating IMA Exploration Inc. in the case. But IMA plans to appeal the decision. Aquiline, based in Toronto, says the B.C. Supreme Court rendered a judgment late Friday in the case involving Minera Aquiline Argentina SA as plaintiff and IMA Exploration and Inversiones Mineras Argentinas SA as defendants." More
- July 17, 2006 | Item | E-mail
- Chris Mullen, Gold Seeker Report
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-- Posted 17 July, 2006 | |
