-- Posted 18 July, 2006 | | Source: SilverSeek.com
| Close | Gain/Loss |
Gold | $627.60 | -$22.70 |
Silver | $10.41 | -$0.59 |
XAU | 138.49 | -1.15% |
HUI | 323.12 | -1.50% |
GDM | 1005.01 | -1.19% |
JSE Gold | 3230.15 | -1.15% |
USD | 87.04 | +0.06 |
Euro | 125.03 | -0.21 |
Yen | 85.17 | -0.21 |
Oil | $73.54 | -$1.76 |
10-Year | 5.130% | +0.061 |
T-Bond | 106.84375 | -0.65625 |
Dow | 10799.23 | +0.48% |
Nasdaq | 2043.23 | +0.27% |
S&P | 1236.86 | +0.19% |
The Metals:
Gold fell near $640 in after hours Access trade late yesterday, rose above $650 in Asia, traded between $645 and $650 in London, and found slight gains above $650 in early New York trade, but it then fell off markedly throughout the rest of trade in New York and ended at its lows of the session with a loss of 3.46%. Silver traded in a tight range on either side of $11.00 in Asia and London, but it also fell off throughout trade in New York and ended at its low of the session with a loss of 5.36%.
Euro gold fell near €500, platinum lost $18 to $1,215, palladium lost $7 to $309, and copper fell about 3 cents to under $3.60.
Gold and silver equities started off briefly higher but then fell off to find over 2% losses by mid-afternoon trade before they rebounded into the close to end with losses of a little more than 1%.
The Economy:
Report | For | Reading | Expected | Previous |
PPI | June | 0.5% | 0.3% | 0.2% |
Core PPI | June | 0.2% | 0.2% | 0.3% |
Net Foreign Purchases | May | $69.6B | $45B - $60B | $46.7B |
Many cheered Core PPI data as tame, while some pointed to overall PPI which came in higher than expected. Others pointed out the year over year Core PPI which came in at a high 1.9% rate. Most traders looked ahead to CPI data and Bernanke testimony tomorrow for further indications about inflation. Net Foreign Purchases came in higher than expected and easily covered May’s trade deficit of $63.8 billion reported last week.
Tomorrow at 8:30AM EST brings CPI and Core CPI for June both expected at 0.2%, Building Permits for June expected at 1,920,000, and Housing Starts for June expected at 1,900,000. Bernanke begins his testimony at about 10AM.
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The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil was up more than $1 at one point on increased demand expectations from China due to its robustly reported GDP, but it then fell to find well over $1 losses by the close as traders deemed the current premium in the market due to Middle East conflict to be fully priced in at present time. Should the conflict get worse from present levels, traders expect the market to change rapidly and new record highs could be seen again very soon. Many were also preparing for inventory reports tomorrow which most expect to see slight draws in crude and gasoline inventories, but a slight build in distillates.
The U.S. dollar index rose on higher than expected PPI and larger than expected Net Foreign Purchases data, but any gains were limited ahead of tomorrow’s CPI data and Bernanke testimony.
Treasuries fell after the PPI report which came in higher than expected and increased chances for further interest rate hikes by the fed.
The Dow, Nasdaq, and S&P started the day off decently higher before falling off to find notable losses mid-afternoon trade, but they then rallied into the close and ended slightly higher on the day. Various earnings reports, a volatile oil price, and different views on inflation/interest rate worries after today’s PPI data and ahead of tomorrow CPI data and Bernanke testimony were among the factors influencing today’s indecisive market.
Among the big names making news in the market today were Ameritrade, Merrill Lynch, Coca-Cola, Johnson & Johnson, and GM.
The Commentary:
“What can you say about US financial markets EXCEPT to make the point how managed they are. There is no reason for MIDAS to get into hysterics as it is now a way of life. Until the Orwellians blow up, meaning overtaken by natural market forces, nothing is going to change. This includes running out of enough gold to crash gold time and time again…
The only way for me to deal with what is going on is to appreciate that the tried and true Newtonism, "For every action there is an equal and opposite reaction." The Gold Cartel and PPT are so ensconced in all our markets, they are distorting their true situation and value. The longer they continue to intervene surreptitiously, the worse the outcome will be as markets finally go to their more natural levels.
More than likely this transformation will occur very quickly, overnight perhaps. Those not in position for what is coming will be annihilated financially. Those not long gold or silver will find it very difficult to get on the speeding train which left the station.” - From yesterday’s Midas report by Bill Murphy of LemetropoleCafe.com
“August Gold closed down 22.4 at 629.5. This was 0.5 up from the low and 26 off the high.
July Silver finished down 0.555 at 10.455, 0.545 off the high and equal to the low.
The gold market continued its long liquidation sell-off on Tuesday, as the Dollar put pressure on the market. The PPI number for June came in at +0.5%, which was higher than expected. That and the improved Industrial Production and Capacity Utilization Reports yesterday have increased expectations for a Fed rate hike. The Fed Chairman's testimony later this week could hint at this, and this would further undermine the bull camp in gold. The gold market did not get much help from crude oil prices today, which traded higher early but settled back towards unchanged as the session progressed. There was little indication of any progress towards a cease-fire today, but the market may be noticing growing support for Israel's stance among western nations and great displeasure with Hizbullah's actions among many Arab states, and this may have eased the flight to quality impulse.
Once again the silver market had followed the long liquidation in gold. Better than expected economic readings yesterday don't appear to have provided much support, and higher PPI reading today may be undermining the metal somewhat as it may open the door for further rate hikes. The trade could also be growing anxious about the Fed Chairman's testimony later this week.” - The Hightower Report, Futures Analysis and Forecasting
The Statistics:
As of close of business: 07/14-17/2006
Gold Warehouse Stocks: | 8,064,858 | - |
Silver Warehouse Stocks: | 102,730,519 | +595,295 |
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$ 8,129m |
LSE (London Stock Exchange) AND Euronext Paris | Gold Bullion Securities | 78.22 | 2,514,882 | US$ 1,579m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 9.62 | 308,648 | US$ 194m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 10.88 | 346,961 | US$ 228m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU)
Profile as of 07/17/2006 | |
Total Net Assets | $879,619,574 | Ounces of Gold
in Trust | 1,352,254.362 |
Shares Outstanding | 13,600,000 | Tonnes of Gold
in Trust | 42.06 |
Note: No change in Total Tonnes from yesterday’s data.
Silver Trust (SLV)
Profile as of 07/17/2006 | |
Total Net Assets | $1,051,066,747 | 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 yesterday’s data.
The Stocks:
Freeport-McMoRan’s (FCX) 2nd quarter 2006 results, Centerra Gold’s (CG.TO) pit wall ground movement, Miramar’s (MNG) drill results, Seabridge’s (SA) drilling, Newmont’s (NEM) loan from the World bank for a gold-mining project in Ghana, Eldorado’s (EGO) mine opening, and Banro’s (BAA) non-executive director appointment were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Mines Management | MGN +12.68% $7.20 |
2. Arizona Star | AZS +3.21% $11.25 |
3. Miramar Mining | MNG +2.99% $3.45 |
LOSERS
1. Minco Mining | MMK -6.3% $1.19 |
2. Orezone Resources | OZN -5.88% $1.28 |
3. Golden Star | GSS -4.68% $2.85 |
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:
- Chris Mullen, Gold Seeker Report
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© Gold Seeker 2006
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-- Posted 18 July, 2006 | |
