-- Posted 4 August, 2006 | | Source: SilverSeek.com
Note: Canadian markets will be closed next Monday, August 7, for the country's annual Civic Holiday.
| Close | Gain/Loss | On Week |
Gold | $644.30 | -$0.90 | +1.42% |
Silver | $12.37 | +$0.36 | +9.66% |
XAU | 144.88 | -0.56% | +2.30% |
HUI | 337.54 | -0.80% | +2.22% |
GDM | 1076.36 | -0.44% | +2.46% |
JSE Gold | 3044.38 | -0.77% | +3.59% |
USD | 84.58 | -0.48 | -1.01% |
Euro | 128.87 | +0.74 | +1.04% |
Yen | 87.49 | +0.54 | +0.42% |
Oil | $74.76 | -$0.70 | +2.08% |
10-Year | 4.901% | -0.050 | -1.78% |
Bond | 109.25 | +0.5625 | +0.89% |
Dow | 11240.35 | -0.02% | +0.18% |
Nasdaq | 2085.05 | -0.35% | -0.43% |
S&P | 1279.36 | -0.07% | +0.06% |
The Metals:
CoT Reports: Gold | Silver
Gold traded mostly slightly higher in Asia and London before it jumped nearly $10 higher after the release of the jobs report, but it then began to fall off in late morning trade and dropped even further right at the close to end slightly lower on the day. Silver came into New York about 15 cents higher and added over 40 cents to that after the jobs report before it also fell off a bit in late morning trade, but it then rebounded from that slight downturn and did not drop further at the close to end with a gain of 3%.
Euro gold remained above €500, platinum gained $12 to $1,238, palladium gained $2 to $322, and copper added over 10 cents to about $3.60.
Gold and silver equities jumped about 2% higher at the open, but they then fell off throughout most of the rest of trade and ended slightly lower.
The Economy:
Report | For | Reading | Expected | Previous |
Nonfarm Payrolls | July | 113K | 145K | 121K |
Unemployment Rate | July | 4.8% | 4.6% | 4.6% |
Hourly Earnings | July | 0.4% | 0.3% | 0.4% |
Average Workweek | July | 33.9 | 33.9 | 33.9 |
Nonfarm Payrolls came in less than expected and reduced chances for an interest rate hike by the fed next week. The Unemployment Rate rose to a 5 month high. The BLS net birth/death adjustment subtracted 57,000 payrolls.
All of this week’s economic reports:
Next week’s economic highlights include Consumer Credit on Monday, Productivity and the FOMC policy statement on Tuesday, Wholesale Inventories on Wednesday, Initial Jobless Claims, the Trade Balance, and the Treasury Budget on Thursday, and Export and Import Prices, Retail Sales, and Business Inventories on Friday.
ADVERTISEMENT
Join the Gold Rush: FREE Gold Traders Kit! FREE mini-sized Gold & Silver Fu
tures Booklet
FREE Electronic Gold OPTIONS Booklet (Don't forget - Electronic Gold launches March 3rd!)
Access to Gold Live Book (Free Real-Time Prices)
Access to Silver Live Book (Free Real-Time Prices)
Plus a special Metals Complex Benefits Sheet
- Click Here -
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil continued Thursday’s fall as tropical storm Chris continues to weaken and reduce chances of any damage to any oil structures in the Gulf.
The U.S. dollar index fell markedly and treasuries rose nicely following the release of the jobs report. The dollar closed at a 2 month low and the yield on the 10-year closed at a 4 month low.
The Dow, Nasdaq, and S&P opened up about 1% higher on hopes for a fed pause, but they then fell off throughout most of the rest of trade and ended slightly lower as traders took profits and decided to sit on the sidelines ahead of the fed’s actual decision.
Among the big names making news in the market Friday were the airlines, Cisco, Goodyear, Kinetic Concepts, Toyota, Apple, and the S&P 500.
The Commentary:
“December Gold closed down 1 at 656. This was 0.5 up from the low and 10 off the high.
September Silver finished up 0.395 at 12.485, 0.165 off the high and 0.145 up from the low.
After making a very solid push higher to $666.3 December gold closed poorly. In fact, a number of traders expressed concern on the rally in the wake of a much softer than expected US Non Farm payroll report. Certainly the US reports weakened the Dollar but the pace of the economy might also hint at slower physical demand and perhaps even lower the threat of inflation. In the end, a solid reversal in the stock market and talk of stagflation on Wall Street might have caused gold to weaken. In fact, with the gold the weakest of the precious metals markets and the copper market up strong one could suggest that the slow economy wasn't the cause of the waning strength in the gold market. Some players might have decided to bank profits ahead of the week end for fear of a weekend cease fire, while others might have simply decided to bank profits ahead of the FOMC meeting next Tuesday.
The silver market posted very impressive performance and unlike the Gold market, the silver market mostly managed to sustain its early gains. While the macro economic outlook could have been considered negative for industrial demand driven commodities it is clear that silver and copper are marching to a different drummer. While the silver trade hinted at support from the sagging Dollar and the uncertainty over the jobs report, one has to wonder why there was such divergence between the gold and silver markets. In fact, the silver market even saw partially negative physical supply news on silver ahead of the opening but yet even that development seemed to be discounted. With several entities worried about broad based strikes throughout the copper mining industry as a result of a strike decision late on Friday afternoon it is possible that silver is fearful of lost production from the prospect of silver mine strikes or is fearful a loss of by-product silver supply from copper mines. In fact, up to 50% of total silver production comes as a by-product of copper, lead and zinc mining. In 2005 there were 164.5 million ounces of silver production from by-product sources.”- The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Barrick plans to keep at least 9.5 million ounces on hedge book
Barrick cuts gold hedge by 7.7 million ounces with 13 million left
Bank of Italy says switch to pounds doesn't anticipate dollar crash
The Statistics:
As of close of business: 08/3/2006
Gold Warehouse Stocks: | 8,162,578 | +75,497 |
Silver Warehouse Stocks: | 100,430,334 | +783,670 |
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 | 2,514,409 | US$ 1,622m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 9.71 | 312,300 | US$ 201m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 11.13 | 357,839 | US$ 230m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU)
Profile as of 08/03/2006 | |
Total Net Assets | $871,753,624 | 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 08/03/2006 | |
Total Net Assets | $1,114,528,547 | 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:
A free, new stock report on NovaGold was posted at Goldreview.com today. View it here. Earnings from Silver Wheaton (SLW), Anglo American (AAUK), and Kinross Gold (KGC), Rio Narcea’s (RNO) royalty buy back, Barrick’s (ABX) commenced offer for NovaGold(NG), Pioneer’s (PSM.TO) recommendation to accept Barrick’s bid, and NovaGold’s advisement to take no action on Barrick’s bid were among the big stories in the gold and silver mining industry making headlines Friday.
WINNERS
1. Cumberland | CLG +5.23% $4.63 |
2. Rubicon Minerals | RBY +3.48% $1.19 |
3. Entree Gold | EGI +3.33% $1.24 |
LOSERS
1. Seabridge | SA -3.64% $13.76 |
2. Gold Fields | GFI -2.72% $21.14 |
3. Eldorado Gold | EGO -2.49% $4.69 |
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:
Pioneer Board of Directors Unanimously Recommends Shareholders ACCEPT Barrick's Friendly Takeover Bid at $1.00 per Common Share - "The Offer by Barrick represents a 132.6% premium over Pioneer's last closing price of its common shares prior to the hostile takeover bid for Pioneer announced on June 19, 2006 by NovaGold Resources Inc. The Barrick Offer also represents a 75.4% premium over NovaGold's hostile bid of $0.57 (CDN) per common share, which expires at 9:00 PM (Pacific Time) on August 11, 2006. Pioneer previously advised its shareholders in its Directors' Circular mailed on July 4, 2006 to reject NovaGold's hostile bid." More
- August 04, 2006 | Item | E-mail
Alamos Gold Inc. Second Quarter Financial Results-Release Notification and Conference Call - More
- August 04, 2006 | Item | E-mail
Kinross posts record profit, to expand Brazil mine - "Kinross Gold Corp. surged to a record second-quarter profit on Friday, blowing past analyst expectations as high gold prices more than offset lower production. The strong profit coupled with news that the board had given Kinross the green light to invest $470 million to expand its Paracatu gold mine in Brazil, sent shares of Kinross up as much as 5 percent. By early afternoon Kinross was up 3 percent at C$13.63. The company expects production from the expansion to start in 2008 and average annual output at the mine is seen at about 557,000 ounces of gold from 2009 through 2013. That is 200 percent higher than current production." More
- August 04, 2006 | Item | E-mail
NovaGold Advises Shareholders to Take No Action Regarding Barrick Gold Unsolicited Takeover Bid - "A Special Committee of NovaGold's Board of Directors, in consultation with its financial and legal advisors, will thoroughly evaluate the Barrick offer. After this evaluation, the NovaGold Board will issue a Directors' Circular and a related Solicitation/Recommendation Statement on Schedule 14D-9 that will contain important information, including the Board's recommendation to shareholders with respect to the Barrick offer." More
- August 04, 2006 | Item | E-mail
GREAT WEST GOLD, INC. - ACQUISITION - More
- August 04, 2006 | Item | E-mail
Wesdome commences milling operations at Kiena Complex - More
- August 04, 2006 | Item | E-mail
Moydow Announces Board Changes, Private Placement and Annual Meeting Date - More
- August 04, 2006 | Item | E-mail
Pearl Asian Mining Industries Approaches Completion of the 90% Buy Back - More
- August 04, 2006 | Item | E-mail
Gabriel Resources to make C$85 mln share offering - More
- August 04, 2006 | Item | E-mail
Reese Corp. Acquires 100% of Second Gold Property in Nevada with Surface Samples of up to 31 grams per tonne Gold - More
- August 04, 2006 | Item | E-mail
Caledonia Announces Release Date of 2nd Quarter Results & Conference Call and Completes Private Placement - More
- August 04, 2006 | Item | E-mail
TVI Pacific Inc. - Q2 Earnings Webcast - August 8, 2006 - More
- August 04, 2006 | Item | E-mail
Nolan Gold project update - More
- August 04, 2006 | Item | E-mail
Rio Narcea Buys Back Aguablanca Nickel Royalty - "On July 5, 2001 the Company acquired from AC participation rights in a consortium with the Spanish state. The consortium is the holder of 100% of certain mineral rights located in various areas of southern Spain, which included the Aguablanca mine property. The original acquisition price payable to AC for these participation rights included a production royalty in respect of the mineral rights held by the consortium. In terms of the acquisition agreement with AC, the Company had the option to pay a lump sum of US$6 million to AC in exchange for all future royalty payments. This option has now been exercised." More
- August 04, 2006 | Item | E-mail
Barrick Commences All-Cash Offers for NovaGold and Pioneer - "Barrick is making the offer to acquire NovaGold in order to consolidate its interest in the Donlin Creek project in Alaska, USA, and acquire 100 per cent of the Galore Creek project in British Columbia, Canada. The proposed transaction is valued at approximately US$1.3 billion (or approximately US$1.5 billion on a fully diluted basis). The all-cash offer of US$14.50 per share represents a premium of 24 per cent over the July 21, 2006 closing price of NovaGold's shares on the AMEX, and a premium of 23 per cent over the equity offering of US$11.75 completed by NovaGold in February 2006." More
- August 04, 2006 | Item | E-mail
Anglo American profit up 60%; to return $5 bln to holders - "The world's third-largest mining company, Anglo American, reported a 60% rise in first-half net profit and announced plans to give back $5 billion to shareholders, as the miner takes advantage of surging commodity prices. Anglo American said that its net profit grew 60.1% to $2.9 billion, or $2 a share, with revenue up 9.8% to $18.8 billion." More
- August 04, 2006 | Item | E-mail
Kinross Gold announces 45 percent revenue growth and record earnings of $65.6 million in second quarter - "Our quarterly earnings are a record for Kinross and highlight the Company's ability to generate operating cash flow, earnings and ultimately value for shareholders," said Tye Burt, Kinross' President and Chief Executive Officer. "The Company's cash flow from operating activities increased more than 200 percent in the quarter compared to 2005, while the average realized gold price increased 48 percent compared to the same period." More
- August 04, 2006 | Item | E-mail
Silver Wheaton Second Quarter Earnings Jump 274% to US$25 Million - "Record net earnings of US$25 million (US$0.12 per share) from the sale of 3.8 million ounces of silver, compared to US$7 million (US$0.04 per share) from the sale of 2.7 million ounces of silver in 2005. Record operating cash flows of US$33 million (US$0.15 per share), compared to US$9 million (US$0.06 per share) in 2005." More
- August 03, 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 4 August, 2006 | |
