-- Posted 19 July, 2006 | | Source: SilverSeek.com
| Close | Gain/Loss |
Gold | $641.80 | +$14.20 |
Silver | $11.04 | +$0.63 |
XAU | 143.84 | +3.86% |
HUI | 335.91 | +3.96% |
GDM | 1043.60 | +3.78% |
JSE Gold | 3259.12 | +0.90% |
USD | 86.49 | -0.55 |
Euro | 126.02 | +0.99 |
Yen | 85.63 | +0.46 |
Oil | $72.66 | -$0.88 |
10-Year | 5.059% | -0.071 |
T-Bond | 107.59375 | +0.75 |
Dow | 11011.42 | +1.96% |
Nasdaq | 2080.71 | +1.83% |
S&P | 1259.81 | +1.86% |
The Metals:
Gold remained near unchanged in Asia before falling to under $620 in London, but it then rallied to come into New York near unchanged and continued to rally throughout most of New York trade to end near its highs if the session with a gain of 2.26%. Silver remained near $10.50 in Asia and London and rallied throughout trade in New York to end near its high over $11 with a gain of 6.05%.
Euro gold rose to about €510, platinum gained $1 to $1,216, palladium gained $1 to $310, and copper gained over 10 cents to above $3.70.
Gold and silver equities surged over 3% higher in the first hour of trade and remained near their highs into the close to end with nearly 4% gains.
The Economy:
Report | For | Reading | Expected | Previous |
CPI | June | 0.2% | 0.2% | 0.4% |
Core CPI | June | 0.3% | 0.2% | 0.3% |
Building Permits | June | 1862K | 1920K | 1946K |
Housing Starts | June | 1850K | 1900K | 1953K |
Year over year Core CPI moved up to 2.6% to add to inflation concerns, but those concerns were short-lived. Bernanke noted in his testimony today that the fed is expecting both economic growth and inflation to moderate. He noted that the future effects of previous policy actions are still “in the pipeline” and that the fed does not want to overshoot. Investors interpreted these remarks as increasing the chances for a possible pause in interest rate hikes at their next meeting. Bernanke also said that "persistently higher inflation would erode the performance of the real economy and would be costly to reverse," so it seems that the fed will remain vigilant if need be. “The extent and timing of any additional firming that may be needed to address inflation risks will depend on the evolution of the outlook for both inflation and economic growth.”
Tomorrow at 8:30AM EST brings Initial Jobless Claims for 7/15 expected at 320,000. At 10AM are Leading Economic Indicators for June expected at 0.2% and the start of more Bernanke testimony, at noon is the Philadelphia Fed for July expected at 12.0, and at 2PM is the release of FOMC minutes from their June 29th meeting.
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The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil traded slightly lower ahead of inventory reports which showed crude inventories built 151,000 barrels, gasoline inventories built 1.5 million barrels, and distillates built 1.2 million barrels. Both crude and gas inventories were expected to draw slightly, and prices immediately headed lower as a result. Oil fell to under $72 at one point as easing Middle East tensions added to the selling, but it did rebound slightly into the close to cut some of its losses.
The U.S. dollar index opened higher and treasuries started off lower as Core CPI came in higher than expected and increased chances for further interest rate hikes, but Bernanke’s comments reversed those expectations and the dollar plummeted and treasuries soared higher as a result. The yield on the 10-year matched its 1-month closing low made last Friday.
The Dow, Nasdaq, and S&P gained throughout trade and ended near their highs on Bernanke-speak, lower oil, and positive technical indicators as viewed by some.
Among the big names making news in the market today were Intel, Allstate, EBay, Yum, Motorola, Qualcomm, Boeing and Airbus, Yahoo, AMR, General Dynamics, Southwest, JPMorgan, and Bank of America.
The Commentary:
“Some may find it odd to find gold collapsing, with the PPI data and the Middle East situation. Others find it odd to see the US Administration applauding the massacre of a visibly defenseless country. Perhaps both situations are equally manipulated. In the case of the gold market, the state of the physical market is liable to correct matters promptly…
For years veteran Cafe members have heard me gripe that the worse the crisis, the more The Gold Cartel goes after gold to calm markets down. Can this be any more obvious after what you have seen the past two trading sessions?” - From yesterday’s Midas report by Bill Murphy of LemetropoleCafe.com
“August Gold closed up 13.3 at 642.8. This was 17.7 up from the low and 4.7 off the high. July Silver finished up 0.6 at 11.055, equal to the high and 0.185 up from the low.
Fed Chairman Bernanke surprised the metals markets in his testimony to the Senate Banking Committee today by indicating he is less concerned about inflation. This lowered expectations that the Fed would raise rates in August, thus pulling the dollar down and supporting the precious metals. Stronger than expected economic readings on Monday and PPI data coming in on the high end of expectations Tuesday had fueled the rate-hike psychology. A lower US Housing Starts Even this morning's CPI data, which was right in the middle of the expected range was given a positive inflationary spin. Now that gold has recovered somewhat off of a $58 break, the Mideast crisis and "safe-haven" talk have reemerged as a bullish factor for gold, something that was almost completely discounted before the Chairman's testimony.
After trading lower early, silver recovered today off of a weaker dollar and the Fed Chairman's testimony to the Senate Banking Committee. In his testimony he stated that he expects core inflation, which excludes food and energy, to fall in the coming quarters as the economy slows. The trade took this as an indication that the Fed will not raise rates in August. Silver bulls might take additional comfort from this news, as it suggests the Fed will does not intend to try to slow the economy (and therefore physical demand) over the near future. However the fact that the Fed is concerned about the economy slowing down might raise concerns about demand for the physical product.” - The Hightower Report, Futures Analysis and Forecasting
The Statistics:
As of close of business: 07/18/2006
Gold Warehouse Stocks: | 8,064,858 | - |
Silver Warehouse Stocks: | 102,731,515 | +996 |
Global Gold ETF Holdings
[WGC Sponsored ETF’s]
| Product name | Total Tonnes | Total Ounces | Total Value |
New York Stock Exchange (NYSE) | Streettracks Gold Shares | 387.56 | 12,460,424 | US$ 8,035m |
LSE (London Stock Exchange) AND Euronext Paris | Gold Bullion Securities | 78.22 | 2,514,854 | US$ 1,619m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 9.62 | 308,645 | US$ 199m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 10.88 | 349,957 | US$ 225m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU)
Profile as of 07/18/2006 | |
Total Net Assets | $849,454,991 | 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 07/18/2006 | |
Total Net Assets | $1,006,258,445 | 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:
Agnico-Eagle's (AEM) drilling, Freeport McMoRan’s share action, and Crystallex’s (KRY) early warrant exercise were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Kimber Resources | KBX +9.3% $2.35 |
2. Seabridge | SA +7.53% $12.28 |
3. Royal Gold | RGLD +6.61% $29.53 |
LOSERS
1. Mines Management | MGN -4.03% $6.91 |
2. Entree Gold | EGI -2.78% $1.05 |
3. Richmont Mines | RIC -0.84% $3.54 |
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:
StrataGold intersects 2.99 g/t gold over 58.50 metres at Tassawini, Guyana - More
- July 19, 2006 | Item | E-mail
Nortec commences Work Program on Ganarin Epithermal Gold-Silver Project, Southern Ecuador - More
- July 19, 2006 | Item | E-mail
Infinex Ventures Inc. Concludes Due Diligence on Tesoro 1 to 12 Mining Claims in Chile After Favorable Court Ruling - More
- July 19, 2006 | Item | E-mail
Chris Babcock Appointed President: Morgain Minerals - More
- July 19, 2006 | Item | E-mail
Gryphon Announces New Exploration Programs, Borealis Project, Nevada - More
- July 19, 2006 | Item | E-mail
Murgor enters into Letter of Intent to acquire major polymetallic assets from Hudbay Minerals Inc. - More
- July 19, 2006 | Item | E-mail
CORRECTION: Augusta Intercepts 140m of 1.32% Copper, 1.57% Copper Equivalent, at Rosemont - More
- July 19, 2006 | Item | E-mail
Tinka identifies further mineralization at Colquipucro project in Peru - More
- July 19, 2006 | Item | E-mail
Anglo Swiss Resources Retains Derrick Strickland, PGeo. for Diamond Exploration Lac de Gras, NWT - More
- July 19, 2006 | Item | E-mail
American Bonanza Intersects 128.5 g/t Gold Over 1.05 Meters at Fenelon - More
- July 19, 2006 | Item | E-mail
Stratagold announces grant of stock options - More
- July 19, 2006 | Item | E-mail
Asia Gold Intersects 50 Metres Grading 1% Copper and 0.3 g/t Gold at Khongor, Mongolia - More
- July 19, 2006 | Item | E-mail
Northwater Resources, Inc. Announces Taking on Additional Staking Program - More
- July 19, 2006 | Item | E-mail
Virginia Grants 520,500 Stock Options - More
- July 19, 2006 | Item | E-mail
Cabo to drill Inco's Voisey's Bay Nickel mine site - More
- July 19, 2006 | Item | E-mail
MDN Northern Mining: Gold Mineralization Confirmed Drilling Results from Harab Suit, Eritrea - More
- July 19, 2006 | Item | E-mail
Matamec Signs Two Letters of Intent to Acquire 50% Interest in 77 Claims in Porcupine Gold Camp - More
- July 19, 2006 | Item | E-mail
'Augusta Intercepts 140m of 1.32% Copper, 1.57% Copper Equivalent, at Rosemont' - More
- July 19, 2006 | Item | E-mail
Sage lower bench channel sampling averages 4.10g/t Au, 2.84% Zn, 2.76% Pb at Onaman property - More
- July 19, 2006 | Item | E-mail
Exmin-Hochschild JV to Acquire the Santa Maria De Moris Mine 'Moris Mine' in the Moris District, Chihuahua, Mexico - More
- July 19, 2006 | Item | E-mail
Lakota Appoints CFO, Commences Exploration, Acquires Property and Retains an Investor Relations Consultant - More
- July 19, 2006 | Item | E-mail
Pearl Asian Mining Industries Begins Refining Its Own Gold, Silver and Platinum To 99.95% Purity and Acquired Gold, Silver & Platinum Refining Systems - More
- July 19, 2006 | Item | E-mail
Agnico-Eagle Begins Drilling at Bravo's Granite Mountain Project in Nevada - "Surface sampling of Upper Plate sediments and argillized granodiorite dikes and sills by Bravo returned up to 1.46 g/t Au with favorable pathfinder geochemistry. Confirmation geologic mapping and sampling by Agnico-Eagle have been completed, with Agnico-Eagle's primary target being high-grade gold hosted by Lower Plate carbonates such as occurs at the nearby Cortez Hills deposit. Important secondary targets will be open-pittable gold hosted by thrust faults, sills, and Elder sandstone such as occurs nearby at the Hilltop, Colorback, and Robertson properties." More
- July 19, 2006 | Item | E-mail
Freeport McMoran Shares Jump - "Freeport McMoran Copper & Gold shares jumped Wednesday as analysts weighed in on the company's solid second-quarter earnings report from the day before. In its second-quarter report on Tuesday, the company said the sharp climb in metals prices over the past year drove its quarterly profit to more than double to $367.3 million, beating Wall Street's expectations." More
- July 19, 2006 | Item | E-mail
Crystallex Receives US$6.04 Million from Early Warrant Exercise - "On June 29, 2006 Crystallex announced that it had agreed to amend the terms of 2,197,727 unlisted common share purchase warrants (the "Warrants") held by an arm's-length holder in the United States. Each Warrant entitled the holder to acquire one common share in the capital of Crystallex at an exercise price of US$2.75 per share until September 15, 2006. The amendment to the Warrants was subject to receipt of all necessary regulatory and stock exchange approvals." More
- July 19, 2006 | Item | E-mail
Romios Commences Work on its Newmont Lake Property in the Galore Creek Area, Northwestern British Columbia - More
- July 19, 2006 | Item | E-mail
Gold Summit to Explore Carolina Gold Belt - More
- July 19, 2006 | Item | E-mail
Apolo Signs M.O.U. for Producing Gold Mine in China - More
- July 19, 2006 | Item | E-mail
Metalline Mining Company Sierra Mojada Project Update - More
- July 19, 2006 | Item | E-mail
Metaline Contact Mines Relocates Its Operating Offices - More
- July 19, 2006 | Item | E-mail
Further Sale of Olympias Concentrates - More
- July 19, 2006 | Item | E-mail
Alhambra Resources Ltd. - Feasibility study demonstrates robust economics on oxide portion of Uzboy gold deposit - More
- July 19, 2006 | Item | E-mail
Sunridge Gold Corp.: Drill Results from Adi Nefas, Asmara Project, Eritrea - More
- July 19, 2006 | Item | E-mail
Drilling continues to expand the size of the Colnic Porphyry Deposit and intersect significant Au Cu mineralization including, 110 m at 1.31 g Au/t - More
- July 19, 2006 | Item | E-mail
More Good Results From Globex-Queenston Wood-Pandora Drilling Including 27.21 g/t Au Over 5.2 m - More
- July 19, 2006 | Item | E-mail
Wits Basin Announces Initial Steps to Commence Work Program at the Vianey Silver Mine in Mexico - More
- July 19, 2006 | Item | E-mail
RFI Announces Debt Conversion by Epsom Investment Services - More
- July 19, 2006 | Item | E-mail
Golden Patriot Finalizing Negotiations with Drilling Contractors for Past Producing Uranium Mine - More
- July 19, 2006 | Item | E-mail
AfriOre Announces Further Mineralized Drill Intersections for the Akanani Platinum Project - More
- July 19, 2006 | Item | E-mail
- Chris Mullen, Gold Seeker Report
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-- Posted 19 July, 2006 | |
