-- Posted 2 August, 2006 | | Source: SilverSeek.com
| Close | Gain/Loss |
Gold | $651.80 | +$5.00 |
Silver | $12.17 | +$0.51 |
XAU | 148.45 | +2.10% |
HUI | 347.22 | +2.53% |
GDM | 1102.08 | +2.08% |
JSE Gold | 3091.55 | +4.74% |
USD | 85.15 | +0.15 |
Euro | 127.97 | -0.18 |
Yen | 87.29 | +0.07 |
Oil | $75.81 | +$0.90 |
10-Year | 4.961% | -0.022 |
T-Bond | 108.53125 | +0.25 |
Dow | 11199.93 | +0.67% |
Nasdaq | 2078.81 | +0.82% |
S&P | 1278.55 | +0.60% |
The Metals:
Gold traded around $1-$5 higher in Asia and London before it dipped to find slight losses at the New York open, but it then surged $10 higher in midmorning trade to above $556. It fell in late morning trade to back under $650, but a rally in the last minutes of trade brought it back above $650 to close with a gain of 0.77%. Silver traded slightly higher in Asia and London and surged over 50 cents higher in New York before it fell back off a bit with gold, but it also rebounded into the close and ended near its highs with a gain of 4.37%.
Euro gold rose near €510, platinum gained $3 to $1,240, palladium gained $11 to $325, and copper fell slightly but remained above $3.55.
Gold and silver equities jumped over 2% higher at the open and remained near their highs for most of the rest of trade, but a little after 2PM EST they plummeted back to near unchanged on the day. That weakness was short-lived, however, as all three indices rebounded in the last 50 mintues of trade and ended back up near their highs of the session.
The Economy:
There were no major economic reports today, but a report by the Mortgage Bankers Association that showed mortgage application volume fell to a 4 year low did have some talking. An ADP report which showed an additional 99,000 private jobs in July also had traders looking ahead to this Friday’s official jobs report from the BLS.
Tomorrow at 8:30AM EST brings Initial Jobless Claims for 7/29 expected at 308,000. At 10AM are Factory Orders for June expected at 1.7% and ISM Services for July expected at 56.5.
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The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil rose to over $76 on a worsening situation in the Middle East and on worries over tropical storm “Chris” in the gulf that may turn into a hurricane, but it did fall off into the close to end under $76 with a gain of more than 1%. The day’s inventory report also encouraged some buying as crude inventories fell 1.8 million barrels, gasoline inventories fell 100,000 barrels, and distillates built 700,000 barrels.
The U.S. dollar index gained versus the euro ahead of the ECB’s meeting on interest rates Thursday that may give a dovish outlook for the future of interest rates in Europe. The dollar fell versus the yen, however, as the Chinese central bank said it would “pursue greater flexibility of the yuan to help cool its red-hot economy and tame inflation.”
Treasuries traded higher ahead of an announcement on auction supply for next week which informed traders of an increase in the frequency of the 30-year auctions from 2 to 4 per year. The report also gave traders specifics about the treasury’s $44 billion in auctions next week. Yields spiked higher on that announcement, but any losses in bonds were short-lived as the yield on the 10-year fell back off to close at new 7 week lows as increased global tensions encouraged safe haven buying on a day with no further clues as to whether the fed will hike or not next week.
The Dow, Nasdaq, and S&P rose throughout most of trade on strong earnings reports, but they did fall off of their highs a bit into the close.
Among the big names making news in the market today were the FTC and Rambus, Ford, MasterCard, Time Warner and AOL, GM, Delphi, UAW, P&G, and Cigna.
The Commentary:
“Clearly the gold price driver is not the Middle East conflict by itself, as this has been on-going for a while, but the jump in the oil price is causing a move in the gold price.
The global interest rate and inflation prospects coupled with the prospects for a jump in the oil price are soon to destabilize economies across the world if it happens. This crisis continues to build up and looks like changing yet another gear upwards. The future appears bleak on this front!
Gold has still to confirm yet another breakout, despite the rise, but all looks set for such a move any time soon. This trend has not changed over the last few weeks despite the correction.” - Julian D.W. Phillips of Gold Forecaster Global Watch, www.goldforecaster.com
“December Gold closed up 5.3 at 664.1. This was 5.7 up from the low and 4.1 off the high.
September Silver finished up 0.505 at 12.245, 0.045 off the high and 0.485 up from the low.
While the gold market showed significant upside momentum at times during the session Wednesday the action after mid session wasn't particularly impressive. However, it is possible that the setback in prices was simple profit taking from the highs, as the equity market and the oil market pretty much remained supportive of gold throughout the session. However, it is possible that some longs decided to bank profits in gold ahead of the economic reports to be released on Thursday morning, as stronger than expected US numbers might provide the Dollar with a temporary lift, which in turn might pressure gold.
A big upward extension in silver mostly sustained through the session, even though the gold market failed to hold all of the massive initial gains that were posted early in the session. It does seem like the market was beginning to pick up on the tightening supply theme and with the equity market/oil market combination clearly supporting the bull camp in silver it is not surprising that the trade soared through a number of critical resistance points.” - The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
James Turk: Another good month
It's a wonderful life: John Embry is interviewed on ROB-TV
Amid huge trade deficit, new Treasury secretary picks up 'strong dollar' mantra
Greg Peel: Did the U.S. Treasury manipulate the gold price down?
The Statistics:
As of close of business: 08/1/2006
Gold Warehouse Stocks: | 8,087,081 | - |
Silver Warehouse Stocks: | 9,8470,049 | -539,199 |
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$ 7,881m |
LSE (London Stock Exchange) AND Euronext Paris | Gold Bullion Securities | 78.21 | 2,514,465 | US$ 1,641m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 9.69 | 311,106 | US$ 203m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 11.13 | 357,847 | US$ 228m |
Note: Change in Total Tonnes from yesterday’s data: The JSE subtracted 0.5 tonnes.
COMEX Gold Trust (IAU)
Profile as of 08/01/2006 | |
Total Net Assets | $873,665,364 | Ounces of Gold
in Trust | 1,351,810.215 |
Shares Outstanding | 13,600,000 | Tonnes of Gold
in Trust | 42.05 |
Note: Change in Total Tonnes from yesterday’s data: IAU subtracted 0.01 tonnes.
Silver Trust (SLV)
Profile as of 08/01/2006 | |
Total Net Assets | $1,048,943,292 | Ounces of Silver
in Trust | 92,416,063 |
Shares Outstanding | 9,250,000 | Tonnes of Silver
in Trust | 2,874.5 |
Note: No change in Total Tonnes from yesterday’s data.
The Stocks:
Hecla’s (HL) and Barrick’s (ABX) second quarter results, Miramar’s (MNG) Doris permitting process, Randgold’s (GOLD) contractor liquidation, Taseko’s (TGB) new board member, Nevsun’s (NSU) Bisha project management team, Northern Orion’s (NTO) additional mineral reserves, Great Basin’s (GBN) preliminary assessment, Apollo Gold’s (AGT) joint venture, and Gammon Lake’s (GRS) final court approval for their business combination with Mexgold (MGR.V) were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Fronteer | FRG +9.47% $4.74 |
2. Minco Mining | MMK +8.15% $1.46 |
3. Orezone | OZN +7.89% $1.64 |
LOSERS
1. U.S. Energy | USEG-6.83% $3.82 |
2. Bema Gold | BGO -2.68% $5.80 |
3. Crystallex | KRY -2.14% $2.74 |
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:
Kinross Announces Crown Shareholders' Meeting - "Kinross Gold Corporation, is pleased to announce that Crown Resources Corporation has scheduled its shareholders' meeting for August 31, 2006, and has mailed the related proxy statement/prospectus to obtain the necessary shareholders' approval for the proposed merger with Kinross. The merger is subject to the approval of at least two-thirds of the outstanding shares of Crown common stock entitled to vote." More
- August 02, 2006 | Item | E-mail
First Nickel Inc.: Extension Granted for Premiere Ridge Feasibility Study - More
- August 02, 2006 | Item | E-mail
Crown Resources Corporation Announces Special Meeting of Shareholders - "Crown Resources Corporation announced that it will hold a special meeting of shareholders on August 31, 2006, at 9:00 a.m. (MDT) at Crown's offices located at 4251 Kipling St., Wheat Ridge, CO 80033 and has mailed the related proxy statement to act upon the proposed merger between Crown and Kinross Gold Corporation." More
- August 02, 2006 | Item | E-mail
Tournigan Appoints CFO - More
- August 02, 2006 | Item | E-mail
Global Gold to Acquire 100% of Tukhmanuk Mine in Armenia Ahead of Schedule and Commences Production -- Government Approves Mining Plan - More
- August 02, 2006 | Item | E-mail
Barrick Reports Record Earnings and Cash Flow; Legacy Placer Dome Gold Hedge Position Eliminated - "Q2 net income was $459 million ($0.53 per share) and operating cash flow was $643 million ($0.73 per share), both Company records and substantially higher than the prior-year period's net income of $47 million ($0.09 per share) and operating cash flow of $101 million ($0.19 per share)." More
- August 02, 2006 | Item | E-mail
Gammon Lake Resources and Mexgold Resources Obtain Final Court Approval for Business Combination - "Gammon Lake Resources Inc. and Mexgold Resources Inc. are pleased to announce that the Ontario Superior Court of Justice has today issued a final order approving the proposed business combination of Mexgold with Gammon Lake which was announced on June 26, 2006. This approval was required prior to the business combination being completed, which is expected to happen on or about August 4, 2006." More
- August 02, 2006 | Item | E-mail
Phoenix Matachewan Mines Inc.: New Issue - More
- August 02, 2006 | Item | E-mail
Vangold Resources Ltd.: Mt. Penck Program Defines Gold Mineralisation: 23m at 2.3g/t Gold in Drill Hole; 36m at 4.2g/t Gold in Trench - More
- August 02, 2006 | Item | E-mail
Sur American Gold Corporation: Exploration Update - More
- August 02, 2006 | Item | E-mail
Miramar Mining Reports Next Step in Doris North Permitting Process - "Miramar Mining Corporation today was pleased to announce acceptance by the Minister of Indian and Northern Affairs Canada (INAC) of the Nunavut Impact Review Board's (NIRB) recommendation that Miramar's proposed Doris North Project should proceed. In March 2006, the NIRB completed its review of the environmental impact assessment of the Doris North Project and recommended to the Minister of INAC that the Project should be given approval to obtain the required permits for construction. The NIRB recommendation included 35 conditions, all of which Miramar believes are achievable." More
- August 02, 2006 | Item | E-mail
Recoverable Gold Reserves of 3.6 Million Ounces; Indicated Reserves Exceed 5 Million Ounces - More
- August 02, 2006 | Item | E-mail
Randgold Resources announces former contractor liquidated - "Dr Mark Bristow, chief executive of Randgold Resources and chairman of Somilo welcomed today's judgment and said the granting of the final liquidation order opened the way for the company to proceed with additional claims against MDM for amounts owed. He said as MDM's chief creditor, Somilo would request the liquidators to convene a full enquiry into MDM's financial affairs and the conduct of its directors." More
- August 02, 2006 | Item | E-mail
New Director Joins Taseko Board - "Mr. Armstrong is a geological engineer with Bachelors and Masters of Applied Science degrees from the University of British Columbia and over 40 years of experience in the exploration and evaluation of base and precious metals projects. He recently retired from Teck Cominco Ltd., where he held the position of General Manager, Resource Evaluation." More
- August 02, 2006 | Item | E-mail
Yale Signs Formal Option Agreement for the Urique Project, Chihuahua State, Mexico -- Field Work to Commence Shortly - More
- August 02, 2006 | Item | E-mail
Golden Eagle Appoints H.E. 'Gene' Dunham as Chief Operating Officer - More
- August 02, 2006 | Item | E-mail
Alberta Star Receives Final Approval from the Department of Natural Resources for its Land Survey at Contact Lake - More
- August 02, 2006 | Item | E-mail
Wildcat Exploration Ltd. - Expansion of Land Position at Foster River Property, Saskatchewan - More
- August 02, 2006 | Item | E-mail
Gold Hawk Resources Receives Certificate of Mining Operation for the Tamboraque Mine in Peru - More
- August 02, 2006 | Item | E-mail
Second Quarter Financial Results Conference Call - More
- August 02, 2006 | Item | E-mail
Paramount Gold Strengthens Geological Team in Mexico with Addition of Board Member and Senior Project Geologist - More
- August 02, 2006 | Item | E-mail
San Gold's Gabrielle Zone Fills Gap - More
- August 02, 2006 | Item | E-mail
Solitario Resources to Begin Trading on the American Stock Exchange - More
- August 02, 2006 | Item | E-mail
EXMIN Acquires Urique Project; Signs Joint Venture with Yale Resources - More
- August 02, 2006 | Item | E-mail
MGM Mineral Resources Announces Corporate Update - More
- August 02, 2006 | Item | E-mail
Global Platinum Gold, Inc. Announces Groundbreaking for New Plant Facilities - More
- August 02, 2006 | Item | E-mail
Freegold Commences 34,000' of Resource Expansion Drilling at Almaden - More
- August 02, 2006 | Item | E-mail
Tara Gold Drill Results Include Bonanza Gold Grade of 35.5 g/t Gold Over 4 Meters at San Miguel - More
- August 02, 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 02, 2006 | Item | E-mail
East Delta Appoints David Bikerman President - More
- August 02, 2006 | Item | E-mail
Goldeye and Polar Mining Complete 2006 Drill Program on the Todd Creek Property, Stewart Gold Camp Northwestern British Columbia - More
- August 02, 2006 | Item | E-mail
Unico, Inc. Submits Rule 10b-17 Notification on Reverse Stock Split - More
- August 02, 2006 | Item | E-mail
Midlands Minerals Corporation announces gold up to 1950ppb from stream sediment samples on Kaniago Property in Ghana - More
- August 02, 2006 | Item | E-mail
Douglas Lake Minerals Appoints Three World Class Geologists to Its Advisory Board - More
- August 02, 2006 | Item | E-mail
Golden Tag Resources Ltd.: Exploration Update San Diego JV Project, Mexico; Aquilon Extension Property, James Bay, Quebec - More
- August 02, 2006 | Item | E-mail
Imperial Reports Mount Polley Exploration Update - More
- August 02, 2006 | Item | E-mail
Clear Path for Permits at Certej - More
- August 02, 2006 | Item | E-mail
Cash Minerals Signs Exclusive Agreement with IOCG Specialist to Work on Yukon Uranium Properties - More
- August 02, 2006 | Item | E-mail
GREAT WEST GOLD, INC. - CORPORATE UPDATE - More
- August 02, 2006 | Item | E-mail
Breakwater Reports financial and operating results for the interim periods ended June 30, 2006 and 2005 - More
- August 02, 2006 | Item | E-mail
Nevsun Resources Ltd.: Bisha Management Team - "Nevsun Resources Ltd. is very pleased to announce that it is continuing to build its Bisha project management team with the appointment of Malcolm Lake as the Company's Manager of Projects Development, Peter Harris as the Human Resource Manager for Eritrea, Dr Yemane Zecharias as the Environmental Manager for Eritrea and Shaun Ball as the Manager Mine Planning." More
- August 02, 2006 | Item | E-mail
Northern Orion Reports Additional Mineral Reserves Extending the Mine Life at Alumbrera - "An on-going ore delineation drilling programme in the Alumbrera pit, undertaken both within the existing ore envelope and for extensions at depth, has confirmed 40 million tonnes of additional mineral reserves. The mine plan was re-optimized based on a new geological model with additional mineralization, and together with improved final pit slope angles resulted in an increase in contained metal reserves of more than 10%." More
- August 02, 2006 | Item | E-mail
Great Basin Gold Ltd.: Robust Returns from Preliminary Assessment of a High Grade Gold-Silver Operation at Hollister Development Block - "Great Basin Gold Ltd. announces that an updated preliminary assessment shows excellent returns for a 520 ton per day underground operation, mining the high-grade gold-silver mineralization from the Gwenivere, Clementine and South Gwenivere vein systems of the Hollister Development Block (HDB) in Nevada, USA. Using US dollars, a gold price of US$450/oz and a silver price of US$7.00/oz, the pre-tax results from the study indicate a very robust 78% internal rate of return and net present value of US$118 million." More
- August 02, 2006 | Item | E-mail
Hecla Reports Dramatic Increase in Second Quarter 2006 Income, Sales, Gross Profit and Cash Flow - "Hecla Mining Company today reported income applicable to common shareholders of $9.1 million, or 8 cents per common share, for the second quarter of 2006, $15.5 million more than the loss of $6.4 million, or 5 cents per common share, during the second quarter of 2005." More
- August 02, 2006 | Item | E-mail
Hecla Reports Dramatic Increase in Second Quarter 2006 Income, Sales, Gross Profit and Cash Flow - "Hecla Mining Company today reported income applicable to common shareholders of $9.1 million, or 8 cents per common share, for the second quarter of 2006, $15.5 million more than the loss of $6.4 million, or 5 cents per common share, during the second quarter of 2005." More
- August 02, 2006 | Item | E-mail
Apollo Gold Announces Entry into Joint Venture at Its Montana Tunnels Mine - "The JV Agreement calls for Elkhorn to earn up to a 50% interest in the Mine by contributing $13 million over a five-month period, starting with initial payments totaling $1 million required to be contributed not later than two weeks after signing. The monies will be used to remediate the east wall instability problems encountered at the Mine during September and early October 2005, which led to the suspension of mining on October 21, 2005." More
- August 02, 2006 | Item | E-mail
- Chris Mullen, Gold Seeker Report
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-- Posted 2 August, 2006 | |
