-- Posted 21 July, 2006 | | Source: SilverSeek.com
| Close | Gain/Loss | On Week |
Gold | $619.70 | -$11.70 | -6.99% |
Silver | $10.77 | -$0.20 | -6.10% |
XAU | 133.44 | -2.98% | -8.00% |
HUI | 309.70 | -3.20% | -8.96% |
GDM | 973.91 | -2.60% | -7.82% |
JSE Gold | 3018.35 | -4.01% | -7.24% |
USD | 85.92 | -0.32 | -0.27% |
Euro | 126.83 | +0.41 | +0.33% |
Yen | 86.01 | +0.39 | -0.08% |
Oil | $74.43 | +$0.16 | -3.38% |
10-Year | 5.045% | +0.017 | -0.28% |
Bond | 107.71875 | -0.1875 | +0.23% |
Dow | 10868.38 | -0.55% | +1.20% |
Nasdaq | 2020.39 | -0.93% | -0.83% |
S&P | 1240.29 | -0.71% | +0.33% |
The Metals:
CoT Reports Released: Gold | Silver
Gold fell close to $620 in Asia, rebounded to about $630 in London, and found decent gains near $635 in early New York trade, but then, out of nowhere, it was bombed to the downside to as low as $615.30 in late morning trade. It rebounded to the low $620s heading into the close, but was then hit again right at the close and ended back near its lows with a loss of 1.9%. Silver fell near $10.80 in Asia before it rebounded to about $11 in London and rose close to $11.25 in morning New York trade, but it was also hit in the last 2 and ½ hours of trade and ended with a loss of 1.82%.
Euro gold fell under €490, platinum lost $8 to $1,200, palladium gained $1 to $305, and copper fell over 10 cents to under $3.40.
Gold and silver equities started off slightly higher, but then fell off for the rest of trade and ended about 3% lower on the day.
ADVERTISEMENT
China's creating a pandemic shortage of this essential fuel so severe that spot prices have already doubled and suppliers are scrambling to get "online." And yet, China's about to increase imports by 1,761% to support the "largest buildout" in the history of energy...
How will they do it? The solution lies with one company...
Investors who act now could make 212% by July 31...
The Economy:
There were no major economic reports today.
All of this week’s economic reports:
Next week’s economic highlights include Consumer Confidence and Existing Home Sales on Tuesday, the Fed's Beige Book on Wednesday, Durable Goods Orders, Initial Jobless Claims, the Help-Wanted Index, and New Home Sales on Thursday, and GDP, the Chain Deflator, Employment Cost Index, and Michigan Sentiment on Friday.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil rose on concerns about the Middle East, but gains were limited as traders find no threat from this conflict unless they see an indication that Iran and/or Syria are getting involved.
The U.S. dollar index fell as China “announced it was raising its bank reserve requirements by 0.5 percentage points in a bid to cool its racing economy.” This makes the yen more attractive and makes it stronger against the dollar.
Treasuries fell slightly after a week of gains as the yield on the 10-year rebounded from 1 month lows. With no new economic data to act on, traders digested this past week’s events and prepared for next week.
The Dow, Nasdaq, and S&P fell on mostly disappointing earnings. The Nasadaq fell to a 14 month low.
Among the big names making news in the market Friday were BellSouth and AT&T, Capital One and North Fork, Schlumberger, RadioShack, Cymbalta and Lilly, Nucor, Ericsson, Dell, Caterpillar, and Microsoft.
The Commentary:
An excerpt from this morning’s special alert:
“I maintain my long-term bullish stance on gold, silver, platinum palladium and uranium. While geopolitical events are adding to the volatility, I continue to believe gold should trade in a broad range of $575 to $675 through the end of August. Strong seasonal factors and a continuing long list of bullish fundamental and technical factors should lead to a new year high in the fall. I continue to believe a new, all-time high in gold is not a question of if, but when.”- Peter Grandich, The Grandich Letter
“This blatant knockdown of gold is an outrage and suggests new Treasury Secretary Paulson and the Fed were livid about being caught by surprise by the amount of buying which came into the physical gold market yesterday and today. So they threw a temper tantrum. The rise in the price was jeopardizing their hocus pocus spin re what the Fed is up to. A sharply rising gold price will have the investment world chattering how the Fed is giving up on their flight against inflation. The easiest way to silence the chatter is to bomb the gold price and keep intermediate US interest rates near 5%.”- From yesterday’s Midas report by Bill Murphy of LemetropoleCafe.com
“August Gold closed down 12.3 at 620.2. This was 4.2 up from the low and 17.8 off the high.
July Silver finished down 0.22 at 10.785, 0.365 off the high and equal to the low.
The gold market started out under pressure and fell consistently throughout the session. Apparently the market was only partially supported by news that Newmont mining expected its gold production to fall in each of the next two years before rising out in 2008! Even more surprising is the fact that the Bank of India suggested that they were loaning gold to Indian jewelers did not provide support to the market as that might help sustain Indian gold during in the face of high flat prices. However, with the weakness on Friday it seems that the gold market was fretting a slowing of the global economy or was simply discounting the uncertainty of the Middle East crisis. It is certainly possible that news of a Middle East Peace effort by an international group served to mitigate the flight to quality interest in the gold market on Friday.
With the silver market unable to take out the prior day's high and then sagging sharply in sync with a host of other metals, it seems that the market is defeated from a precious and industrial metals perspective. In fact, with higher oil, a softer equity market and a weaker US Dollar it certainly seems like the liquidation by the specs was mostly being driven by sagging macro economic expectations. It is also possible that the flight to quality interest in silver is simply unable to countervail the amount of long liquidation currently taking place in the silver market. In the end the silver and gold market saw pre-weekend selling and that has to be very disappointing to the flight to quality or inflation players in silver.”- The Hightower Report, Futures Analysis and Forecasting
The Statistics:
As of close of business: 07/20/2006
Gold Warehouse Stocks: | 8,104,665 | +39,807 |
Silver Warehouse Stocks: | 102,884,877 | - |
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$ 8,004m |
LSE (London Stock Exchange) AND Euronext Paris | Gold Bullion Securities | 78.22 | 2,514,798 | US$ 1,558m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 9.66 | 310,328 | US$ 193m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 10.88 | 349,949 | US$ 224m |
Note: The ASX added 0.04 Total Tonnes (1,687 ounces) from yesterday’s data.
COMEX Gold Trust (IAU)
Profile as of 07/20/2006 | |
Total Net Assets | $854,033,787 | 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 07/20/2006 | |
Total Net Assets | $1,012,630,611 | 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:
Newmont’s (NEM) global gold output and water tests in Indonesia were among the big stories in the gold and silver mining industry making headlines Friday.
WINNERS
1. Orezone | OZN+2.29% $1.34 |
2. Entree Gold | EGI +1.94% $1.05 |
3. Northgate | NXG +1.81% $3.37 |
LOSERS
1. Gold Fields | GFI -6.83% $20.61 |
2. Northern Dynasty | NAK -6.33% $7.55 |
3. Cardero Resource | CDY -5.91% $1.75 |
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:
IRC reports six fold increase in Voisey's Bay quarterly refined nickel production - More
- July 21, 2006 | Item | E-mail
Grandview Gold Inc. Engages Investor Relations Firm - More
- July 21, 2006 | Item | E-mail
St. Elias Mines Special Update - More
- July 21, 2006 | Item | E-mail
Sacre-Coeur Minerals Engages H. Lee Dunston for Investor Relations Team - More
- July 21, 2006 | Item | E-mail
LKA Announces Receipt of Joint Venture Proposal from Cambior Inc. - More
- July 21, 2006 | Item | E-mail
Silver Fields contracts Beacon Light initial field work - More
- July 21, 2006 | Item | E-mail
Newmont sees gold output down until 2008 - "World No. 2 gold miner Newmont's output will be slightly down in 2006 and 2007 before it begins to rise in 2008, Chief Executive Wayne Murdy said, adding that he expected gold prices to remain strong for years. "Generally, our production is down slightly this year from last year. It will be slightly down to flat next year and then we start to get into growth production mode," Murdy told Reuters from his Denver, Colorado, headquarters on Thursday." More
- July 21, 2006 | Item | E-mail
Pioneer's Comments on NovaGold's Statements Regarding the Grace Project - More
- July 21, 2006 | Item | E-mail
Drill Hole SC06-48 returns 13.49 g/t Gold and 218.8 g/t Silver over 3.76 metres - More
- July 21, 2006 | Item | E-mail
Medoro Resources Grants Stock Options - More
- July 21, 2006 | Item | E-mail
Shahuindo Property: Final Decision Issued by the Arbitration Tribunal Favourable to Sulliden - More
- July 21, 2006 | Item | E-mail
Typhoon Initiates Summer Drill Program at Fayolle and Adjacent Aiguebelle-Goldfields - More
- July 21, 2006 | Item | E-mail
Vantex Acquires a Rich Polymetallic Property - More
- July 21, 2006 | Item | E-mail
Consolidated Gold Win Ventures Inc. - Core samples analysis confirm Mud Lake Kimberlite prospect diamondiferous - More
- July 21, 2006 | Item | E-mail
Indonesia prosecutor rejects new Newmont water tests - "An Indonesian prosecutor team has rejected a plan by a local court to retest water disposal in a pollution trial involving U.S.-based Newmont Mining Corp, a prosecutor said on Friday. The Manado court in North Sulawesi had planned to retest water on July 28 in Sulawesi island's Buyat Bay near a gold mine, now inactive, that had been operated by Newmont Indonesian unit PT Newmont Minahasa Raya." More
- July 21, 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 21 July, 2006 | |
