-- Posted 3 August, 2006 | | Source: SilverSeek.com
| Close | Gain/Loss |
Gold | $642.50 | -$6.60 |
Silver | $12.01 | -$0.16 |
XAU | 145.69 | -1.86% |
HUI | 340.25 | -2.01% |
GDM | 1081.08 | -1.91% |
JSE Gold | 3068.14 | -0.76% |
USD | 85.06 | -0.09 |
Euro | 128.13 | +0.16 |
Yen | 86.95 | -0.34 |
Oil | $75.46 | -$0.35 |
10-Year | 4.951% | -0.010 |
T-Bond | 108.6875 | +0.15625 |
Dow | 11242.59 | +0.38% |
Nasdaq | 2092.34 | +0.65% |
S&P | 1280.27 | +0.13% |
The Metals:
Gold traded slightly lower in Asia and fell about $5 in London before it fell further in morning New York trade to as lows as $638.10, but it then rebounded into the close to end over $5 off its lows with a loss of 1.01%. Silver traded in a range of about $12.00 to $12.15 in Asia, London, and New York and ended near the bottom of that range with a loss of 1.31%.
Euro gold fell under €505, platinum lost $14 to $1,226, palladium lost $5 to $320, and copper fell over 10 cents near $3.45.
Gold and silver equities fell over 2% in morning trade before rebounding a bit in early afternoon trade, but they then fell back off into the close to end with losses of about 2%.
The Economy:
Report | For | Reading | Expected | Previous |
Initial Claims | 7/29 | 315K | 308K | 301K |
Factory Orders | June | 1.2% | 1.7% | 1.0% |
ISM Services | July | 54.8 | 56.5 | 57.0 |
Tomorrow at 8:30AM brings July’s jobs data. Nonfarm Payrolls are expected at 145,000, the Unemployment Rate is expected at 4.6%, Hourly Earnings are expected at 0.3%, and the Average Workweek is expected at 33.9.
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The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil fell on reduced fears over tropical storm Chris which is no longer expected to turn into a hurricane.
The U.S. dollar index was mixed as traders digested surprising news that the Bank of England rose interest rate ¼ point. The ECB also rose rates and came out with more hawkish than expected testimony, but the rally in the euro was short-lived as most await tomorrow’s U.S. payrolls report for an indication on whether the fed will raise interest rates or not next week.
Treasuries fell early, but then rebounded after the morning’s economic data and ended slightly higher ahead of tomorrow’s jobs report.
The Dow, Nasdaq, and S&P fell early on worries over global interest rate hikes, but mild economic data reduced those fears for the U.S. and decent retail sales reports were able to take the three indices decently higher by the close.
Among the big names making news in the market today were AOL, KKR, Silver Lake Partners, Royal Philips Electronics, Wal-Mart and other various retailers, SL Green and Reckson, Target, IBM, Sprint Nextel, Tyco, CBS, Warner Music, OfficeMax, and Starbucks.
The Commentary:
“De-hedging should be less than 200 tonnes for the year. Investment buying through the E.T.F. and direct fund buying of gold in other markets is the prime cause of this run. We would hope to see the Producers get out of their hedges up to the point where they have them only to fund capex, but this is not yet happening to the detriment of their shareholders.
E.T.F. demand is moving toward and possibly above 500 tonnes a year now.” - Julian D.W. Phillips, www.goldforecaster.com
“We have spoken of the heinous Cold Cartel’s activities lately. MIDAS has made note that as visible as they are, they can be overpowered because their ammo is somewhat limited and each day they run out of more of it. They are doomed … be it in the weeks or months ahead.
*Silver is particularly explosive. MIDAS has made note of the falling, or low, silver open interest combined with the disappearing silver warehouse stocks on Comex. What is so strange is how few other people outside of The Café seem to care. I know that from talking to my sources. Even now it is little discussed. I don’t get it? Having traded a few contracts in my life, I know how important this is and it is proving out.” - From yesterday’s Midas report by Bill Murphy of LemetropoleCafe.com
“December Gold closed down 7.1 at 657. This was 6.5 up from the low and 3.5 off the high.
September Silver finished down 0.155 at 12.09, 0.18 off the high and 0.08 up from the low.
The gold market started out soft and became very soft into mid session. While the market showed signs of rejecting the lows just after mid session, it was clear that several geopolitical conditions were being downgraded and that US economic numbers had once again come in better than expected, which in turn pulled the Dollar up off its lows. Certainly the market was anticipating some type of near term cease fire and that might make the fighting extremely intent in the hours leading up to the halt. While the rate hikes overnight could have helped the gold market from the currency perspective, historically rate hikes have mostly been considered bearish to gold and other metals prices. With the December gold falling initially to $650 and then mounting a bounce from that level in the early afternoon action, the trade has seemingly pegged $650 as an extremely critical zone in the coming sessions.
While silver gradually fell back into line with the weakness in gold, the market still generally held together better than the yellow metal. However, significant weakness in the copper markets could have undermined physical demand expectations for silver. Some players were concerned that the silver market was unable to take out the prior sessions highs and the Press is suggesting that the even number level of $12.00 has become a critical pivot point. We would have expected silver to be emboldened by the better than expected factory order release and as a result of the stock markets mid day bounce but the bears simply held control throughout the early afternoon action.” - The Hightower Report, Futures Analysis and Forecasting
The Statistics:
As of close of business: 08/2/2006
Gold Warehouse Stocks: | 8,087,081 | - |
Silver Warehouse Stocks: | 99,646,664 | + 1,176,615 |
Global Gold ETF Holdings
[WGC Sponsored ETF’s]
| Product name | Total Tonnes | Total Ounces | Total Value |
New York Stock Exchange (NYSE) | Streettracks Gold Shares | 387.74 | 12,466,345 | US$ 8,033m |
LSE (London Stock Exchange) AND Euronext Paris | Gold Bullion Securities | 78.21 | 2,514,437 | US$ 1,622m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 9.71 | 312,303 | US$ 201m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 11.13 | 357,843 | US$ 234m |
Note: Change in Total Tonnes from yesterday’s data: The ASX added 0.2 tonnes.
COMEX Gold Trust (IAU)
Profile as of 08/02/2006 | |
Total Net Assets | $880,820,306 | Ounces of Gold
in Trust | 1,351,810.215 |
Shares Outstanding | 13,600,000 | Tonnes of Gold
in Trust | 42.05 |
Note: No change in Total Tonnes from yesterday’s data.
Silver Trust (SLV)
Profile as of 08/02/2006 | |
Total Net Assets | $1,085,432,762 | 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:
Quarterly results from Gold Fields (GFI), Eldorado (EGO), and Pan American Silver (PAAS), Fronteer’s (FRG) new uranium deposit, Queenstake’s (QEE) drill results, Rubicon’s (RBY) update and future plans, NovaGold’s (NG) completed acquisition of Coast Mountain Power (MW.V), and Endeavour’s (EDR.TO) expansion were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Apex Silver | SIL +4.38% $15.50 |
2. Minco Mining | MMK +2.05% $1.49 |
3. Ivanhoe | IVN +0.97% $6.26 |
LOSERS
1. Cumberland | CLG -9.65% $4.40 |
2. Buenaventura | BVN-4.84% $29.30 |
3. Eldorado Gold | EGO -4.75% $4.81 |
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:
Mengold Initiates Drill Program at Burchell Lake - More
- August 03, 2006 | Item | E-mail
Aura Gold Inc. Options Gold-Silver Project In Chile - More
- August 03, 2006 | Item | E-mail
Starfire Minerals Inc. announces up to $1.8 million private placement - More
- August 03, 2006 | Item | E-mail
Jasper Mining Corporation announces results of airborne geophysical survey on McFarlane property - More
- August 03, 2006 | Item | E-mail
Wineco Productions Reminds Shareholders Today Is Record Date for 15-1 Forward Split - More
- August 03, 2006 | Item | E-mail
Plexmar Resources Inc.: Border Permit Award and Acquisition - More
- August 03, 2006 | Item | E-mail
Matamec Reports Initial Drilling Results on Montclerg Gold Project - More
- August 03, 2006 | Item | E-mail
Sirios Resources' Partner to Resume Work on Aquilon Extension Gold Project this Summer - More
- August 03, 2006 | Item | E-mail
Endeavour Expands into Second Major Silver District in Mexico - "Endeavour Silver Corp. announces that it is expanding into a second major silver district in Mexico. The Company has acquired an option to purchase a 100% interest in the key Minas Nuevas properties, located in the famous Parral silver (lead-zinc) district, Chihuahua State, Mexico, for US$3 million in cash payments over a 30 month period." More
- August 03, 2006 | Item | E-mail
Goldcrest Completes 1,628 Metre Reverse Circulation ("RC") Drill Program at Currans, Currans South and Youanmi South Prospects at the Youanmi Project - More
- August 03, 2006 | Item | E-mail
Triumph Gold's Guariche Project Shows Robust Potiental - More
- August 03, 2006 | Item | E-mail
Melkior Explores for Gold in Ontario and Quebec - More
- August 03, 2006 | Item | E-mail
Astral Intersects High-Grade on Gold Springs Property, Nevada - More
- August 03, 2006 | Item | E-mail
Normabec: V. Lewis Lawrick Appointed Chairman - More
- August 03, 2006 | Item | E-mail
Aur Resources approves Chile copper project - More
- August 03, 2006 | Item | E-mail
Puma Exploration Completes a Private Placement of $750,000 - More
- August 03, 2006 | Item | E-mail
Conference Call Notification Q2-2006 Financial Results - More
- August 03, 2006 | Item | E-mail
GlobeStar's Dominican Nickel Project - Confirmation of High Grade Nickel Laterite at Cumpié Hill including 25.9m Grading 1.6% Nickel - More
- August 03, 2006 | Item | E-mail
Reese Corp. Acquires Drill-Ready Gold Property on the Carlin Trend in Nevada - More
- August 03, 2006 | Item | E-mail
Full Metal Expands Lucky Shot Program - More
- August 03, 2006 | Item | E-mail
Inter-Citic Begins Trading on Toronto Stock Exchange - More
- August 03, 2006 | Item | E-mail
AuEx Ventures Inc.: Trinity Silver Drilling Assay Results - More
- August 03, 2006 | Item | E-mail
Diadem to Commence Drilling Program on Duquesne West Gold Project - More
- August 03, 2006 | Item | E-mail
Aur Resources Inc. Reports Record Net Earnings of US$93.9 Million and Cash Flow from Operating Activities of US$151.7 Million in the Second Quarter of 2006 - More
- August 03, 2006 | Item | E-mail
Aur Resources Inc. Announces a Production Decision for the Andacollo Hypogene Copper-Gold Deposit in Chile - More
- August 03, 2006 | Item | E-mail
InnovExplo Inc. Engaged to Prepare Next Phase Exploration Plan at Valentine Lake - More
- August 03, 2006 | Item | E-mail
Fronteer Sees New Uranium Deposit Take Shape at Aurora's Jacques Lake, Labrador - "Fronteer is a rapidly evolving company committed to building long term value through ongoing discoveries, and strategic acquisitions. Over the next 12 months, Fronteer will have the benefit of approximately US$27 million in exploration expenditure on seven projects, in three countries." More
- August 03, 2006 | Item | E-mail
Queenstake Drills 140 Feet of 0.46 opt Gold at Starvation Canyon - "A recently completed surface drill hole by Queenstake Resources Ltd. at the Starvation Canyon project identified one of the best intervals of high-grade gold mineralization in the history of Jerritt Canyon exploration: 140 feet with an average grade of 0.46 ounce of gold per ton (opt) or 43 meters of 16 grams of gold per tonne (gpt), beginning at 280 feet (85 meters) from surface. This interval includes an intercept of 70 feet of 0.63 opt (21 meters of 22 gpt), which in turn includes 40 feet of 0.87 opt (12 meters of 30 gpt)." More
- August 03, 2006 | Item | E-mail
NovaGold Completes Acquisition of Coast Mountain Power - "The Plan of Arrangement was approved by the Supreme Court of British Columbia on July 31, 2006. Under the Arrangement, Coast Mountain shareholders will receive approximately 0.1245 of a NovaGold common share for each outstanding Coast Mountain common share. NovaGold issued approximately 2.5 million common shares in connection with the acquisition." More
- August 03, 2006 | Item | E-mail
Eldorado Gold Corporation: Q2 2006 Financial and Operating Results - "Our consolidated net income for Q2 2006 was $0.2 million (or $0.00 per share) compared with a net loss of $11.1 million (or $0.04 per share) in Q2 2005. This increase in net income resulted from increased revenues from gold sales, increased interest income, and foreign exchange gains resulting primarily from Canadian dollars on hand, offset by increased exploration and administrative expenses." More
- August 03, 2006 | Item | E-mail
Gold Fields Ltd Q4F 2006 Results - "Gold Fields Limited today announced June 2006 quarter net earnings of R604 million compared with R483 million in the March 2006 quarter and negative R27 million for the June quarter of 2005. In US dollar terms net earnings for the June 2006 quarter were US$95 million compared with US$76 million in the March 2006 quarter and negative US$5 million for the June quarter of 2005." More
- August 03, 2006 | Item | E-mail
Pan American Silver Corp. Reports Second Quarter Results: 201% Profit Increase - "Pan American Silver Corp. today reported record quarterly net income of $15 million, or $0.21 per share, for the second quarter of 2006. This 201% increase over second quarter 2005 net income is primarily the result of increased silver production, significantly higher silver prices and record low production costs net of higher by-product credits. Mine operating earnings increased almost six-fold to $31.1 million versus $4.5 million in the year-earlier period." More
- August 03, 2006 | Item | E-mail
Rubicon Minerals Corporation: Paragon Outlines Plans for the Coming 12 Months in Newfoundland - "Rubicon is planning to carry out through a Plan of Arrangement, a corporate re-organization which, subject to certain conditions being satisfied as described in the Information Circular filed under Rubicon on www.sedar.com, will result in the creation of two new companies to house Rubicon's current Newfoundland and African assets." More
- August 03, 2006 | Item | E-mail
- Chris Mullen, Gold Seeker Report
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-- Posted 3 August, 2006 | |
