-- Posted 1 August, 2006 | | Source: SilverSeek.com
| Close | Gain/Loss |
Gold | $646.80 | +$13.00 |
Silver | $11.66 | +$0.38 |
XAU | 145.39 | +2.50% |
HUI | 338.66 | +2.87% |
GDM | 1079.61 | +2.66% |
JSE Gold | 2951.73 | -0.15% |
USD | 85.00 | -0.29 |
Euro | 128.15 | +0.49 |
Yen | 87.22 | +0.06 |
Oil | $74.91 | +$0.51 |
10-Year | 4.983% | -0.005 |
T-Bond | 108.28125 | UNCH |
Dow | 11125.73 | -0.54% |
Nasdaq | 2061.99 | -1.41% |
S&P | 1270.92 | -0.45% |
The Metals:
Gold meandered on either side of unchanged in about a $5 range in Asia and London, but it then began to move sharply higher at about 9AM EST and gained throughout the rest of trade in New York to end near its highs of the day with a 2.05% gain. Silver remained in about a 10 cent range in Asia and London before it also surged higher in New York and ended near its highs with a gain of 3.37%.
Euro gold rose to about €505, platinum gained $14 to $1,237, palladium gained $4 to $314, and copper gained a couple of cents to above $3.55.
Gold and silver equities traded slightly lower for most of morning trade, but they then began to move up at around 11:30AM EST and were able to end with over 2% gains on the day. There is more about the miners below in today’s edition of “My Two Ounces.”
The Economy:
Report | For | Reading | Expected | Previous |
Personal Income | June | 0.6% | 0.6% | 0.4% |
Personal Spending | June | 0.4% | 0.4% | 0.6% |
Construction Spending | June | 0.3% | 0.1% | 0.0% |
ISM Index | July | 54.7 | 53.5 | 53.8 |
“The core personal consumption expenditure price index, excluding food and energy, increased 0.2% for the third straight month in June, and has risen 2.4% in the past 12 months, matching the largest year-over-year gain since April 1995.” “The savings rate rose to minus 1.5 percent from minus 1.6 percent in May.” There are no major economic reports due out tomorrow.
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The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil rose near $75 on increased geopolitical worries and on concerns about Tropical Storm “Chris” that has formed in the Caribbean which may move in to damage oil platforms and refineries. Traders were also preparing for tomorrow’s inventory reports which are expected to show draws of about 1 million barrels in oil and gasoline, and a build of about 1 million barrels in distillates. Natural gas lost about 8% to cut about half of its gains from yesterday.
The U.S. dollar index gained and treasuries fell in morning trade on hot inflation data, but the dollar later fell off and bonds rallied back to unchanged as some news stories broke that heightened geopolitical tensions. Iran's president rejected a United Nations resolution demanding that it suspend uranium-enrichment activities and it became clear that Israel will not implement a 48 hour cease fire as they had previously agreed to do. Violence also flared up in Iraq. The yield on the 10-year fell to a new 6 week low.
The Dow, Nasdaq, and S&P fell on geopolitical concerns, inflation fears, and poor earnings, but they did cut their losses somewhat heading into the close.
Among the big names making news in the market today were the CFTC, Burger King, Northwest, Ford, Nissan, Chrysler, FedEx and the USPS, Kodak, Verizon, Vonage, Wal-Mart, Sirius, and EDS.
The Commentary:
“August Gold closed up 12.1 at 646.3. This was 16.8 up from the low and 0.2 off the high.
The gold market started the session out soft and appeared to be poised to slide in a profit taking posture, but the Iranian rejection altered the landscape and the Dollar stayed mostly lower on the day and that inspired the buyers. Certainly an increased chance of sanction against Iran sparked a rally in oil prices and accentuated the slide in equity prices and that in turn whipped up the flight to quality buying interest in gold. With the gold market managing to climb above a series of critical chart resistance levels and the rest of the metals market joining in the run up, it was clear that sentiment was conclusively in the bull's corner. With the US economic numbers strong enough to have provided some support to the Dollar and in turn sinking gold, but the gold market deciding to focus on the flight to quality factors, it is possible that the tight correlation between the Dollar and gold is reduced somewhat.
While the September silver contract made an impressive run up and also forged a quasi breakout, the market was unable to get above the July 12th high of $11.822. With the 3 week high in prices it was clear that the silver market was discounting the threat of slowing physical demand and was also ignoring the fact that Mexican silver production was recently shown to have increased. In short the market was capable of rising despite developments that could have held prices back and that is a testament to the bull camp.” - The Hightower Report, Futures Analysis and Forecasting
“My Two Ounces”
Gold and silver surged higher today while the Dow and the general markets fell. Over the past 6 months or so there has been a high correlation between the Dow and the HUI and other mining indices. This correlation previously had not been as strong as it has been during the past 6 months or so. It is hard to say why it strengthened, but that correlation showed signs of breaking down from being so strong after today as the HUI gained while the Dow fell. In the recent past there have been several days where gold and silver gain on the day, but the mining equities falter because they get dragged down by the general markets. Today this was not the case, but we are not out of the woods yet. Previous to this stronger than normal Dow/HUI correlation, mining stocks would move at about 2.6 times the amount of what the metals did that day, pretty much regardless of what the Dow did. I am not completely sure about the 2.6 number, but I think I remember reading it from someone’s study a while back, and it seems about right. If gold were up 1% on the day, the HUI, on average, was up about 2.6%. Today, gold was up 2.05%, so one would hope for a HUI gain of about 5.33% according to the historical norm. The HUI only gained 2.87% today so we are not back to the norm, but we are getting somewhere. We may just see those 5.33% per day gains again soon as the recent mining share underperformance mentioned here yesterday by reader Todd K. reverses and volume returns to the miners with the onset of the next powerful bull leg up.
What are your two ounces? Access our forum here or send your comments by email to cm@goldseek.com
The Statistics:
As of close of business: 07/31/2006
Gold Warehouse Stocks: | 8,087,081 | - |
Silver Warehouse Stocks: | 99,009,248 | - 838,801 |
Global Gold ETF Holdings
[WGC Sponsored ETF’s]
| Product name | Total Tonnes | Total Ounces | Total Value |
New York Stock Exchange (NYSE) | Streettracks Gold Shares | 384.78 | 12,371,022 | US$ 7,822m |
LSE (London Stock Exchange) AND Euronext Paris | Gold Bullion Securities | 78.21 | 2,514,492 | US$ 1,629m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 9.69 | 311,110 | US$ 202m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 11.63 | 373,740 | US$ 236m |
Note: Change in Total Tonnes from Friday’s report: The JSE added 0.13 tonnes (3,968 ounces).
COMEX Gold Trust (IAU)
Profile as of 07/31/2006 | |
Total Net Assets | $857,312,664 | 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 07/31/2006 | |
Total Net Assets | $1,056,813,032 | Ounces of Silver
in Trust | 92,416,063 |
Shares Outstanding | 9,250,000 | Tonnes of Silver
in Trust | 2,874.5 |
Note: Change in Total Tonnes from yesterday’s data: SLV added 31.1 tonnes to the trust.
The Stocks:
Coeur d'Alene’s (CDE) second quarter results, Eldorado’s (EGO) drill results, Freeport-McMoRan’s (FCX) election to the board of directors and $0.75 dividend, Tanzanian Royalty’s (TRE) drill results, Meridian Gold’s (MDG) optioned property, Fronteer’s (FRG) drill results, Endeavour’s (EDR.TO) drill results, and Aquiline’s (AQI.TO) drill results were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Minco Mining | MMK +12.5% $1.35 |
2. Cambior Inc. | CBJ +7.51% $3.15 |
3. DRDGOLD | DROOY+6.57% $1.46 |
LOSERS
1. Rubicon Minerals | RBY -3.31% $1.17 |
2. Taseko Mines | TGB -1.75% $2.80 |
3. Mines Management | MGN -1.16% $6.82 |
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:
Endeavour Drilling Continues to Extend High Grade Silver Mineralization at Guanacevi Mines Project, Durango, Mexico - "Drilling highlights of the near-surface drill holes NP10-B to NP17-B include higher grade intervals such as 1322 gpt silver and 0.87 gpt gold over 1.6 m (40.0 oz per ton Ag equivalent over 5.2 ft) in hole NP16-B and thicker vein widths such as 290 gpt silver and 0.33 gpt gold over 13.95 m (9.0 oz per ton Ag equivalent over 45.8 ft) in hole NP11-D." More
- August 01, 2006 | Item | E-mail
Paramount Gold's First Drill Results Include Bonanza Gold Grade of 35.5 g/t Gold over 4 Meters at San Miguel Project in Mexico - More
- August 01, 2006 | Item | E-mail
Inmet's 2006 second quarter earnings over four times higher than the same period in 2005 - More
- August 01, 2006 | Item | E-mail
Kinross Gold Corporation - Second Quarter Conference Call - "August 4, 2006 - 10:00 AM ET" More
- August 01, 2006 | Item | E-mail
Marc Levy Appointed Director of Alma Resources - More
- August 01, 2006 | Item | E-mail
Sulliden Exploration Inc.: Court Orders the Enforcement of Arbitration Decision - More
- August 01, 2006 | Item | E-mail
Grand Opening of Canada's Newest Gold Producer Scheduled - More
- August 01, 2006 | Item | E-mail
Eldorado Updates Drill Results from Tanjianshan Project, China - "Paul N. Wright, President and Chief Executive Officer of Eldorado Gold Corporation is pleased to provide an update on exploration activities at our 90% owned Tanjianshan Project in Qinghai Province, China. The Tanjianshan Project currently consists of two deposits, Jinlonggou (JLG) and Qinlongtan (QLT), that are being readied for planned production in the fourth quarter of this year." More
- August 01, 2006 | Item | E-mail
Freeport-McMoRan Copper & Gold Inc. Announces Election of Stephen H. Siegele to its Board of Directors - "Mr. Siegele, age 46, has spent 22 years in various engineering and senior management roles within the semiconductor and microelectronics industries. Mr. Siegele was the founder and Chief Executive of Advanced Delivery & Chemical Systems, Inc. (ADCS), a worldwide leader in advanced chemicals and delivery hardware serving markets in Asia, Europe and the U.S." More
- August 01, 2006 | Item | E-mail
Jasper Mining Corporation announces results of airborne geophysical survey on Lydy property - More
- August 01, 2006 | Item | E-mail
Hungary says Romania should stop gold mine project - More
- August 01, 2006 | Item | E-mail
Blue Note Acquires Caribou & Restigouche Mines from Breakwater Resources - More
- August 01, 2006 | Item | E-mail
Freeport-McMoRan Copper & Gold Inc. Announces $0.75 per Share Supplemental Common Stock Dividend - "Freeport-McMoRan Copper & Gold Inc. announced today that its Board of Directors has authorized a supplemental common stock dividend of $0.75 per share to be paid on September 29, 2006 to shareholders of record as of September 14, 2006. The supplemental dividend to be paid in September represents an addition to FCX's regular quarterly common stock dividend of $0.3125 per share (equivalent to $1.25 per share per annum)." More
- August 01, 2006 | Item | E-mail
Tanzanian Royalty Reports Encouraging Gold Intersections for the Remaining Three Diamond Drill Holes at the Itetemia Project in Tanzania - "Tanzanian Royalty Exploration Corporation is pleased to announce that assay results have been received from the remaining three diamond drill holes of the four hole program, recently completed on the Golden Horseshoe Reef (GHR) at its Itetemia Project in Tanzania. The GHR is situated on a sub-parallel structure immediately to the east of Barrick's Bulyanhulu gold mine." More
- August 01, 2006 | Item | E-mail
Gold Hawk Resources Inc.-Apointment of Vice President Finance and Chief Financial Officer - More
- August 01, 2006 | Item | E-mail
Consolidated Spire Ventures Plans for Fall Drill Program on Prospect Valley Gold Project - More
- August 01, 2006 | Item | E-mail
High silver price spurs Coeur d'Alene profit - "Silver and gold miner Coeur d'Alene Mines Corp. on Tuesday reported a quarterly profit, reversing a year-earlier loss, helped by a gain on a sale, more silver production, lower costs, and higher silver and gold prices. The company said it remains bullish on precious metals markets and expects healthy income and cash flow." More
- August 01, 2006 | Item | E-mail
Aquiline Announces Further Calcatreu Drill Results; Exercise of Warrants - "Aquiline Resources Inc. is pleased to announce further results from its 2006 exploration drilling program at its 100% owned Calcatreu gold-silver project in Rio Negro Province, Argentina. The objective of the program was to identify areas with potential for the development of additional resources in the immediate vicinity of the Vein 49 \ Nelson deposits which host the current mineral resource at Calcatreu." More
- August 01, 2006 | Item | E-mail
ValGold Drills New Multiple Zones Including High-Grade Gold Intersections at Garrison Project - More
- August 01, 2006 | Item | E-mail
North Atlantic Resources Ltd.: Additional Delineation Drilling Results from the FT Gold Project, Republic Of Mali - More
- August 01, 2006 | Item | E-mail
YGC Resources reports a new manto at its Ketza River property - More
- August 01, 2006 | Item | E-mail
Golden Goose Resources Inc.: Magino Infill Drilling Yields Additional Impressive Gold Grades Over Significant Widths - More
- August 01, 2006 | Item | E-mail
Pele Mountain Collects 1,300-Kilogram Sample of HQ Drill Core From Talisker Diamond Occurrence - More
- August 01, 2006 | Item | E-mail
Rocmec Announces Acceptance of South African Patent - More
- August 01, 2006 | Item | E-mail
Avalon Provides Exploration and Development Update - More
- August 01, 2006 | Item | E-mail
Newgold, Inc. Appoints New Outside Director to Its Board of Directors - More
- August 01, 2006 | Item | E-mail
Teryl Resources Corp. Acquires Additional Mining Claims in the Bisbee Area, Arizona - More
- August 01, 2006 | Item | E-mail
Dumont confirms gold zone in Cane Springs 2006 drilling, Utah - More
- August 01, 2006 | Item | E-mail
GPGD Confirms Sampling Results Announcement on Wednesday; Shares Structure Info - More
- August 01, 2006 | Item | E-mail
Continued Drill Results From San Javier Copper Project Sonora, Mexico - More
- August 01, 2006 | Item | E-mail
Enterayon Reports Bonanza-Grade Gold and Silver at Horseshoe - More
- August 01, 2006 | Item | E-mail
Franklin Mining Announces Cerro Rico Holds Over 33 Million Ounces of Silver, Fourth Vein Shows Potential Reserves of Over 11 Million - More
- August 01, 2006 | Item | E-mail
Jaguar Mining increases Turmalina gold reserves by 58.6% - More
- August 01, 2006 | Item | E-mail
BrazMin Commences Exploration on the Agua Branca Gold Project; Exploration Update on the Serrita Gold Project - More
- August 01, 2006 | Item | E-mail
Candente Requests Bids for Feasibility and EIA on the Canariaco Norte Copper Project in Northern Peru - More
- August 01, 2006 | Item | E-mail
Exeter Drills Bonanza Grades in New Vein at Cerro Moro, Argentina - More
- August 01, 2006 | Item | E-mail
Meridian Gold Company to Spend US$4 Million to Option Evolving Gold's Winnemucca Mountain Gold Property - "Evolving Gold Corporation is pleased to announce that Meridian Gold Company has signed a final option agreement pertaining to Evolving's Winnemucca Mountain gold property located in Humboldt County, in northwestern Nevada. The Winnemucca Mountain property is situated near the northern end of the Battle Mountain-Eureka gold trend and consists of 272 unpatented mineral claims covering about 2,115 hectares." More
- August 01, 2006 | Item | E-mail
Royal Gold Announces Fiscal 2006 Fourth Quarter and Year-End Conference Call - "ROYAL GOLD, INC., the leading precious metals royalty company, will report its fourth quarter and year-end fiscal 2006 results before the market opens for trading on Thursday, August 17, 2006. There will be a conference call that day at Noon Eastern Time (10:00 a.m. Mountain Time) which will be accessible via live internet broadcast and dial-in conference capabilities." More
- August 01, 2006 | Item | E-mail
Coeur Reports Record Results for Second Quarter of 2006 - "Coeur d'Alene Mines Corporation today reported all-time record quarterly net income of $32.6 million, or $0.11 per diluted share, for the second quarter of 2006, compared to a net loss of $1.7 million, or $0.01 per diluted share, for the year-ago period. Cash provided by operations was an all-time quarterly record of $32.0 million, compared to $9.1 million of cash used by operations in the year-ago quarter." More
- August 01, 2006 | Item | E-mail
Coeur Reports Record Results for Second Quarter of 2006 - "Coeur d'Alene Mines Corporation today reported all-time record quarterly net income of $32.6 million, or $0.11 per diluted share, for the second quarter of 2006, compared to a net loss of $1.7 million, or $0.01 per diluted share, for the year-ago period. Cash provided by operations was an all-time quarterly record of $32.0 million, compared to $9.1 million of cash used by operations in the year-ago quarter." More
- August 01, 2006 | Item | E-mail
Fronteer Encouraged by Aurora's High-Grade Uranium Results at Michelin, Labrador - "Fronteer Development Group Inc. announces that Aurora Energy Resources Inc. in which Fronteer holds a 49.3% interest, has returned more high-grade drill intersections, expanding the heart of the Michelin deposit. Results from hole M-06-19 returned the best grade intersected at Michelin to date, representing a 100% increase compared to the average grade of the current resource." More
- August 01, 2006 | Item | E-mail
