-- Posted 26 July, 2006 | | Source: SilverSeek.com
| Close | Gain/Loss |
Gold | $621.80 | +$4.60 |
Silver | $11.00 | +$0.13 |
XAU | 141.40 | +1.46% |
HUI | 327.76 | +1.09% |
GDM | 1042.15 | +1.64% |
JSE Gold | 2990.95 | +2.45% |
USD | 85.91 | -0.76 |
Euro | 126.92 | +1.17 |
Yen | 85.98 | +0.69 |
Oil | $73.94 | +$0.19 |
10-Year | 5.036% | -0.029 |
T-Bond | 107.78125 | +0.28125 |
Dow | 11102.51 | -0.01% |
Nasdaq | 2070.46 | -0.17% |
S&P | 1268.40 | -0.04% |
The Metals:
Gold dipped near $615 in Asia before it rebounded to trade near unchanged in London and early New York trade, but it then dropped to $613.30 a little after 10AM EST ahead of a rally into the close which resulted in a close near the high of the session with a gain of 0.75%. Silver traded slightly lower in Asia, near unchanged in London, and then rallied throughout most of trade in New York to end with a gain of 1.20%. At the time of writing, both metals have added about an additional 0.5% gain to their close in reaction to the release of the fed’s Beige Book.
Euro gold rose to about €492, platinum gained $2 to $1,214, palladium gained $3 to $311, and copper fell about 3 cents to under $3.40.
Gold and silver equities dropped over 1% at the open, but they quickly rallied to near unchanged by noon and then continued to rally in afternoon trade to end with over 1% gains.
The Economy:
The fed’s Beige Book showed a slowing economy and modest inflation, which most took as evidence that increases the chances of the fed pausing at their next meeting in August. Tomorrow at 8:30AM EST brings Durable Goods Orders for June expected at 2.3% and Initial Jobless Claims for 7/22 expected at 310,000. At 10AM is the Help-Wanted Index for June expected at 33 and New Home Sales for June expected at 1,164,000.
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The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil rose in London on news of an oil flow station being attacked in Nigeria, but it turned slightly lower ahead of inventory reports which showed crude inventories were unchanged, gasoline inventories fell 3.2 million barrels, and distillates built 800,000 barrels. Gasoline inventories fell more than most expected, and oil prices soon shot higher as a result. After spending most of the rest of trade around $1 higher, oil fell off into the close to end only slightly higher.
The U.S. dollar index fell slightly overnight as the Bank of Japan indicated they may hike rates sooner than expected and a key German business sentiment index came in strong and lifted the euro. The dollar then fell off markedly in late U.S. trade as the fed’s Beige Book showed a slowing economy and reduced expectations for further fed interest rate hikes.
Treasuries gained after a successful 2-year note auction and then furthered their gains following the release of the fed’s Beige Book.
The Dow, Nasdaq, and S&P spent the morning notably lower on mostly poor earnings, but they then rallied in afternoon trade on hopes for a pause in interest rate hikes before falling off into the close to end slightly lower.
Among the big names making news in the market today were the Anheuser-Busch, SEC, Blackstone and HCA, GlaxoSmithKline, GM, ConocoPhillips, WellPoint, Lucent, Martha Stewart, Kimberly-Clark, Supervalu, Honda, and Reynolds American.
The Commentary:
“We see the market as continuing to consolidate with the issue being, will it be above $600 or just below $600. It seems to be clear to physical and other buyers that below $600 is a bargain area, but to speculators pushing it below $600 looks attractive. Gold is moving "into season" next month, where demand rises to its peak, but this market is being driven by Investment demand over other types, so we have to keep our eyes on oil prices as well as the currency prospects. However, the new demand coming in from the gold Exchange Traded Funds is strong and comes in on the rises. This has confirmed the continuing bull trend.” - Julian D.W. Phillips, www.goldforecaster.com
“The gold open interest rose 1451 contracts to 327,369. The floor is waiting to see if the large macro funds will pitch their longs, or roll over into December. The moving average fund types have done some selling; however, the big macro funds have not, as Adrian keeps pointing out. This could be a major problem for the bad guys and the other shorts. They will push and push until they feel it is hopeless. When that happens, gold takes off again.
The silver open interest is very exciting. It fell 1081 contracts to 97,137, which is a new low I believe. The shorts continue to run for the hills. Silver could go berserk at any time. Should our STALKER source be right about the Arabs stepping up to the plate right about NOW, we will see upside fireworks very soon.” - From yesterday’s Midas report by Bill Murphy of LemetropoleCafe.com
“August Gold closed up 3.9 at 621.9. This was 8.9 up from the low and 0.6 off the high.
July Silver finished up 0.135 at 11.03, equal to the high and 0.08 up from the low.
The gold market bounced back and forth throughout the session and eventually seemed to garner some support from a moderately weak US Dollar. With concern rising toward the energy sector again in the wake of a failed cease fire negotiation in Rome and also by renewed supply issues in Nigeria it is clear that some flight to quality interest was benefiting the bull camp. While the trade was in the midst of some contract roll over it was a positive to see the US economic readings come in better than expected. The Fed Beige Book release hinted at slowing US growth but also left the issue of inflation in play by suggesting that energy costs were expected to keep an upward pressure on prices. From the initial reaction to the Beige Book it appeared that the gold market was somewhat supported by the report.
The trade continues to suggest that the pattern of higher lows on the charts is serving to underpin the market. We would have to think that the recovery in copper prices from significant early declines and several attempts to rally in the equity market provided the silver market with needed support in a session that initially started out on a weak footing. Like the gold market, the silver market appeared to be somewhat supported by the US Fed Beige book release, possibly because the Fed suggested that energy prices were probably going to continue to push up general prices in the economy.” - The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Investment demand will break central bank gold cartel
Ted Butler: Locked and loaded
The Statistics:
As of close of business: 07/25/2006
Gold Warehouse Stocks: | 8,104,275 | - |
Silver Warehouse Stocks: | 102,384,397 | - |
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$ 7,708m |
LSE (London Stock Exchange) AND Euronext Paris | Gold Bullion Securities | 78.21 | 2,514,659 | US$ 1,572m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 9.69 | 311,131 | US$ 195m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 10.88 | 349,930 | US$ 216m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU)
Profile as of 07/25/2006 | |
Total Net Assets | $834,921,427 | 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 07/25/2006 | |
Total Net Assets | $1,006,163,471 | 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) quarterly earnings, Endeavour Silver’s (EDR.TO) closed C$5 million over-subscription, and plenty of Junior and Exploration stock news were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Miramar Mining | MNG +5.97% $3.55 |
2. Taseko Mines | TGB +5.06% $2.70 |
3. Gold Reserve | GRZ +4.87% $4.95 |
LOSERS
1. Cardero Resource | CDY -4.46% $1.50 |
2. Rubicon Minerals | RBY -3.38% $1.1208 |
3. Banro Corp. | BAA -3.2% $9.38 |
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:
Agnico-Eagle reports strong quarterly earnings and record cash flows on record low costs and higher gold prices - "Agnico-Eagle Mines Limited today reported second quarter earnings of $37.1 million, or $0.32 per share. This compares to net earnings of $12.8 million, or $0.15 per share, in the second quarter of 2005. Higher metals prices drove 2006 second quarter earnings higher, offset slightly by a non-cash foreign exchange translation loss of $6.7 million, or $0.06 per share, and a loss of $4.6 million, or $0.04 per share, on zinc forward sales." More
- July 26, 2006 | Item | E-mail
Oriel Resources plc Confirms the Sale of Gold Assets Enhancing Focus on its Kazakhstan-Based Chrome and Nickel Projects - More
- July 26, 2006 | Item | E-mail
Superior Mining International Corporation announces the granting of stock options - More
- July 26, 2006 | Item | E-mail
Reminder - Newmont Announces Second Quarter Earnings Call - "Newmont Mining Corporation announced that it will report Second Quarter 2006 results on, July 27th, 2006. A conference call will be held that day at 4:00 p.m. Eastern Time (2:00 p.m. Mountain Time) to discuss the quarter's results. The conference call will be carried on the Company's web site." More
- July 26, 2006 | Item | E-mail
Endeavour Closes $5 Million Over-Subscription to Previous Special Warrant Financing - "An additional 1,112,000 special warrants were placed by Salman Partners Inc., the lead agent for this offering, at CA$4.50 each for gross proceeds of CA$5,004,000 to Endeavour. Each special warrant will, when exercised or deemed to be exercised, entitle the holder to acquire 1.1 common shares and 0.55 common share purchase warrants of Endeavour. Each full share purchase warrant will be exercisable to acquire one common share of the Company at CA$5.25 per share up to and including October 24, 2007. The shares and share purchase warrants are listed for trading on the TSX pending the expiry of the four-month hold period on November 27, 2006." More
- July 26, 2006 | Item | E-mail
Notice DPM 2006 Second Quarter Financial Results - More
- July 26, 2006 | Item | E-mail
New Guinea Gold Corporation: Development/Exploration Update - More
- July 26, 2006 | Item | E-mail
Aurelian Signs Contract for Two Additional Drill Rigs for its Fruta Del Norte Epithermal Gold-Silver Target - More
- July 26, 2006 | Item | E-mail
Wildcat Silver Corporation: Ventana Soil Survey Results Significantly Expand Potential Target Size for La Bodega Gold-Silver Deposit - More
- July 26, 2006 | Item | E-mail
Chapleau Resources Ltd. - Brazilian Gold exploration commences - More
- July 26, 2006 | Item | E-mail
Telephone access available for Inmet Mining second quarter conference call - More
- July 26, 2006 | Item | E-mail
Cabo to drill Howard's Pass Selwyn Project for Pacifica - More
- July 26, 2006 | Item | E-mail
Bralorne Gold Mines Ltd.-Progress Report 3: 2006 Diamond Drilling Program - More
- July 26, 2006 | Item | E-mail
Romios Announces Closing of Financing - More
- July 26, 2006 | Item | E-mail
MDN: Tulawaka Mine Produces 39,707 Ounces of Gold in the Second Quarter of 2006 - More
- July 26, 2006 | Item | E-mail
Pele Mountain Confirms More High Grade Gold and Copper Mineralization at Highland - More
- July 26, 2006 | Item | E-mail
Golden Odyssey Moves Drill to Palmetto Property on Walker Lane Belt, Nevada After Completing Initial Drilling at Morningstar - More
- July 26, 2006 | Item | E-mail
Amera to Drill Cocha Copper-Silver Project - More
- July 26, 2006 | Item | E-mail
Largo Closes First Tranche Of Private Placement Financing - More
- July 26, 2006 | Item | E-mail
Alberta Star Development Corp.: Terraquest Ltd. Begins Performing a Regional High Resolution Radiometric Survey in the Eldorado Uranium Belt - More
- July 26, 2006 | Item | E-mail
Novicourt Inc. Second Quarter 2006 Press Release - More
- July 26, 2006 | Item | E-mail
Keegan Discovers Up to 45.8 g/t Gold in Quartz Vein at Esaase Property, Ghana - More
- July 26, 2006 | Item | E-mail
Vantex Intersects 21 G/T Au on Lake Expanse - More
- July 26, 2006 | Item | E-mail
Reese Corp. Acquires 100% interest in Minera Jeronimo with their 14,300 Hectares , El Tiliche Gold Project - More
- July 26, 2006 | Item | E-mail
Exeter Resource Corporation: Initial Drilling Discovers Multiple Targets on Verde Silver Property, Argentina - More
- July 26, 2006 | Item | E-mail
RSM to go Underground at the Fondaway Canyon Property - More
- July 26, 2006 | Item | E-mail
Copper Canyon an Important Component of NovaGold's Galore Creek Project - More
- July 26, 2006 | Item | E-mail
Tara Gold Partners Picacho Gold Mine for Expansion - More
- July 26, 2006 | Item | E-mail
Scorpio Mining Acquires Crows Nest Gold Property - Western Extension of the Cochrane Hill Gold Deposit - More
- July 26, 2006 | Item | E-mail
Can-Cal Resources Ltd.-Acquires More Property at Wikieup Gold Claims, Arizona - More
- July 26, 2006 | Item | E-mail
Golden China Announces Change in Management - More
- July 26, 2006 | Item | E-mail
GoldQuest Announces Additional 2,000 Metres of Drilling at Las Tres Palmas - More
- July 26, 2006 | Item | E-mail
Marifil to Drill Esperanza Copper Property - More
- July 26, 2006 | Item | E-mail
Wits Basin Executes Contract to Purchase the Bates-Hunter Gold Mine - More
- July 26, 2006 | Item | E-mail
Silver Dragon Resources Inc. Signs Strategic Cooperation Agreement With Tianjin North China Exploration Bureau - More
- July 26, 2006 | Item | E-mail
Magnus International Resources Commences Drilling at Second Huidong Target Area-Dingjiaping-and Provides Background on Selection of First Stage Drilling Targets - More
- July 26, 2006 | Item | E-mail
Lateegra Gold Acquires Producing Gold Mine in Sierra Madre Gold Belt Mexico - More
- July 26, 2006 | Item | E-mail
- Chris Mullen, Gold Seeker Report
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-- Posted 26 July, 2006 | |
