-- Posted 8 August, 2006 | | Source: SilverSeek.com
| Close | Gain/Loss |
Gold | $645.90 | -$1.20 |
Silver | $12.18 | -$0.02 |
XAU | 144.96 | -1.06% |
HUI | 337.11 | -1.08% |
GDM | 1079.15 | -1.00% |
JSE Gold | 2966.86 | +0.07% |
USD | 84.78 | +0.03 |
Euro | 128.30 | -0.10 |
Yen | 86.82 | -0.05 |
Oil | $76.31 | -$0.67 |
10-Year | 4.923% | +0.002 |
T-Bond | 108.96875 | -0.125 |
Dow | 11173.59 | -0.41% |
Nasdaq | 2060.85 | -0.56% |
S&P | 1271.48 | -0.34% |
The Metals:
Gold remained near unchanged in Asia and fell in London to as low as $640.60 in early New York trade, but it then rallied back to close just slightly lower ahead of the fed’s decision. Silver rose in Asia before it dropped in London to as low as $12.05 in early New York trade, but it also rebounded back to near unchanged and closed just slightly lower on the day. Both metals jumped higher following the FOMC policy announcement, but both have since fallen to off to near unchanged or slightly lower at the time of writing in after hours trade.
Euro gold fell near €500, platinum lost $9 to $1,236, palladium lost $4 to $318, and copper fell slightly to near $3.55.
Gold and silver equities traded mostly slightly lower ahead of the fed’s announcement that initially sent then nearly 1% higher on the day, but they then fell off into the close and ended with losses of more than 1%.
The Economy:
Report | For | Reading | Expected | Previous |
Productivity | Q2 | 1.1% | 0.9% | 4.3% |
The FOMC kept the fed funds rate unchanged at 5.25%. They noted a slowing economy and said inflation pressures are likely to moderate over time. This was viewed as somewhat dovish since the fed did not mention in their last statement that they expect inflation pressures to moderate. Lacker had a dissenting vote and wanted to increase rates by ¼ point. He was the only one of the 10 voting members that did not want to keep rates unchanged.
Tomorrow at 10AM is the Wholesale Inventories report for June expected at 0.7%.
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The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil traded lower before rising after a statement that indicated BP’s pipeline problem in Alaska would not be solved until early next year, but comments from Energy Secretary Samuel Bodman soothed fears and brought prices back lower on the day as he noted that extra supplies could be brought on the market if necessary.
The U.S. dollar index traded on either side of unchanged and jumped around a bit following the fed’s statement before it ultimately ended slightly higher on the day.
Treasuries fell in early trade after the morning’s Productivity report, but they then rallied to find slight gains right before the fed statement which eventually sent them back lower on the day.
The Dow, Nasdaq, and S&P traded slightly higher ahead of the fed’s decision which initially sent the indices to new highs on the day, but they then quickly fell to make new lows on the session before rallying back to find slight gains again. Those gains were short-lived, however, as all three indices fell off throughout the rest of trade and made new lows by the close.
Among the big names making news in the market today were Apotex and Bristol-Meyers, Sprint Nextel and Intel WiMax, Clear Channel, General Motors, Universal and Reynolds and Reynolds, Brocade and McData, Texas pacific and Aleris, BHP Billiton, Bausch & Lomb, and Aramark.
The Commentary:
“Gold came in higher and moved steadily to the upside. Every day it seems there is some kind of catalyst or reason for the price of gold to rise. Today it was the resurgence of the price of crude oil due to a supply disruption. It closed at $76.98, up $2.22 per barrel.
However, the excitement over a soaring oil price was not going to deter The Gold Cartel from entering the scene very late in the day and taking gold down more than $4 off its high. This has become more than tiresome. The cabal forces do not want gold over $650 for now. It all boils down to whether the physical market overpowers them at this price level. Odds are high it will.” - From yesterday’s Midas report by Bill Murphy of LemetropoleCafe.com
“December Gold closed down 2.2 at 657.3. This was 5 up from the low and 1.5 off the high.
September Silver finished down 0.005 at 12.26, 0.08 off the high and 0.13 up from the low.
While the Press was suggesting that the gold market ran out of bullish momentum as a result of the Fed pause that would seem to be counterintuitive. In fact, with the US Dollar initially weakening in the wake of the pause and the gold market rejecting a post decision slide to $652.1 it would seem that the trade viewed the events Tuesday afternoon as partially supportive. With the Fed specifically concerned about resource utilization and expressing concern that commodity prices might sustain inflation, it is clear that inflation and flight to quality will remain an issue. However, according to Press reports the Fed's Lacker wanted a 25 basis point hike instead of a pause and that could serve to support the Dollar and undermine gold in the future.
The silver market generally performed better than gold ahead of the Fed and to a degree performed better than gold following the Fed decision to pause on the rate front. During the session the September silver market seemed to bounce off the $12.22 level on several occasions and in the end seemed to track back up toward the upper end of the last two sessions trading range. In short, silver seems to have viewed the Fed outcome as a partial positive, but many traders think the ultimate arbiter of the developments Tuesday for silver will be the direction of the stock market in the days ahead.” - The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Buffet's timing was off in strategy on dollar
GoldSeek radio interviews GATA Secretary/Treasurer Chris Powell
AngloGold Ashanti leaving more of its production unhedged
The Statistics:
As of close of business: 08/7/2006
Gold Warehouse Stocks: | 8,162,578 | - |
Silver Warehouse Stocks: | 101,081,185 | -179,100 |
Global Gold ETF Holdings
[WGC Sponsored ETF’s]
| Product name | Total Tonnes | Total Ounces | Total Value |
New York Stock Exchange (NYSE) | Streettracks Gold Shares | 387.74 | 12,466,345 | US$ 8,099m |
LSE (London Stock Exchange) AND Euronext Paris | Gold Bullion Securities | 78.20 | 2,514,298 | US$ 1,619m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 9.71 | 312,286 | US$ 201m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 11.13 | 357,824 | US$ 232m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU)
Profile as of 08/07/2006 | |
Total Net Assets | $875,635,543 | 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 08/07/2006 | |
Total Net Assets | $1,156,262,413 | Ounces of Silver
in Trust | 92,915,373 |
Shares Outstanding | 9,300,000 | Tonnes of Silver
in Trust | 2,890.0 |
Note: Change in Total Tonnes from yesterday’s data: 15.5 tonnes were added to the trust.
The Stocks:
Goldcorp’s (GG) dividend, second quarter results from Metallica (MRB) and Stillwater (SWC), Pacific Rim’s (PMU) new CFO, IMAGOLD’S (IAG) drill results, and Kimber’s (KBX) drill results were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Vista Gold | VGZ+5.84% $11.06 |
2. IAMGOLD | IAG +3.06% $10.10 |
3. Golden Star | GSS +2.57% $3.19 |
LOSERS
1. Fronteer | FRG -6.42% $4.52 |
2. Silver Wheaton | SLW -4.17% $10.12 |
3. Randgold | GOLD -3.51% $22.53 |
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:
Tao Minerals Updates Project Report for Trenching and Drill Program at Golondrina Property, Colombia - More
- August 08, 2006 | Item | E-mail
Klondike Star's Dominion Project Grows with Valuable Claims Acquisition - More
- August 08, 2006 | Item | E-mail
Canarc Resource Corp.: In-Fill Drilling Continues to Delineate High Grade Gold Mineralization at New Polaris Property, BC - More
- August 08, 2006 | Item | E-mail
Diamond Fields Update - More
- August 08, 2006 | Item | E-mail
El Alacran Gold Mine Corp. Announces Its Flagship Precious Metals Mine - More
- August 08, 2006 | Item | E-mail
Vangold Graduates to Tier 1 on TSX Venture Exchange - More
- August 08, 2006 | Item | E-mail
CHAPLEAU RESOURCES LTD. identifies significant gold values south of the Mato Velho claim and acquires 100% of the Coringa Gold Project - More
- August 08, 2006 | Item | E-mail
Zaruma Resources reports on Second Quarter 2006 (all figures in US $) - More
- August 08, 2006 | Item | E-mail
Freewest Updates Exploration Activities on the George River Uranium Property and the Clarence Stream Gold Property - More
- August 08, 2006 | Item | E-mail
Alberta Star Completes a Dominion of Canada Land Survey on its Glacier Lake Silver & Uranium Properties - More
- August 08, 2006 | Item | E-mail
Mediterranean continues to expand gold zones at Tac in Northeastern Turkey - More
- August 08, 2006 | Item | E-mail
Gowest to Undertake $200,000 Private Placement and Commence Drilling North of Timmins, Ontario - More
- August 08, 2006 | Item | E-mail
ECU Silver Mining Inc.: Press Release - More
- August 08, 2006 | Item | E-mail
Mineral Resources Qualification For The Ouest Balan Gold Deposit, Kiniero Mine, Guinea, West Africa - More
- August 08, 2006 | Item | E-mail
Unico, Inc. Announces Agreement to Acquire Additional Utah Lease on the Clyde and Crown Point Mineral Claims - More
- August 08, 2006 | Item | E-mail
Wineco Productions Inc. Files Form 211 With NASD - More
- August 08, 2006 | Item | E-mail
Grand Pacaraima Releases Text of Core Assay Report - More
- August 08, 2006 | Item | E-mail
Centerra now drilling on Luna's Red Rock Project - More
- August 08, 2006 | Item | E-mail
Pearl Asian Mining Industries Opens Chemical/Metallurgical and Smelting/Refining Division in Cagayan De Oro - More
- August 08, 2006 | Item | E-mail
AXMIN Inc.: Reverse Circulation Drilling Confirms Kofi South Discovery, Kofi Project, Mali - More
- August 08, 2006 | Item | E-mail
Sparton Locates New Gold Zone at Luxi Gold Project, Yunnan Province, China - More
- August 08, 2006 | Item | E-mail
Fischer-Watt Options Nevada Gold Property - More
- August 08, 2006 | Item | E-mail
RSM Submits Mine Permit Applications to State and Federal Agencies for the Pinon Gold-Silver Project and a Drill Hole Location Permit Application - More
- August 08, 2006 | Item | E-mail
Continental Minerals Corporation: Drilling Continues to Expand Xietongmen Deposit - More
- August 08, 2006 | Item | E-mail
Amerix Precious Metals Reports on Further Progress on Vila Porto Rico Drilling Program; Completes Sale of Santo Domingo Property - More
- August 08, 2006 | Item | E-mail
Drilling begins at Toy and Elder Creek - More
- August 08, 2006 | Item | E-mail
Temex discovers kimberlitic breccia - More
- August 08, 2006 | Item | E-mail
Admiralty Holding Company Tracking 1715 Fleet Capitana - More
- August 08, 2006 | Item | E-mail
Midlands Minerals Corporation prepares to drill for gold on the Itilima Project in Tanzania - More
- August 08, 2006 | Item | E-mail
Richmond Minerals Inc. announces field programs - More
- August 08, 2006 | Item | E-mail
Can-Cal Resources Ltd.-Expand Property Holdings Further at Wikieup Gold Claims, Arizona - More
- August 08, 2006 | Item | E-mail
Frontier Pacific Mining appoints new officers - More
- August 08, 2006 | Item | E-mail
Marifil Announces Non-Brokered Private Placement - More
- August 08, 2006 | Item | E-mail
Stroud Acquires Remaining 50% Interest in Santo Domingo Silver Project - More
- August 08, 2006 | Item | E-mail
Silver Dragon Cuts 804 Grams per Tonne/25.8 Ounces Silver in First Drill Intersection of Ag-Pb-Zn Manto Mineralization at Cerro las Minitas Project, Mexico - More
- August 08, 2006 | Item | E-mail
El Capitan President/CEO to Acquire ECPN Stock in the Open Market - More
- August 08, 2006 | Item | E-mail
Clifton Mining Company - Cane Springs Drill Results - More
- August 08, 2006 | Item | E-mail
GREAT WEST GOLD, INC. - 30% STOCK DIVIDEND - More
- August 08, 2006 | Item | E-mail
First Quantum Reports Operational and Financial Results for the Three Months and Six Months Ended June 30, 2006 - More
- August 08, 2006 | Item | E-mail
Aquila Acquires Important Extensions of Mineralization at Back Forty - More
- August 08, 2006 | Item | E-mail
April Hashimoto Joins Pacific Rim Mining as CFO - "The board of directors of Pacific Rim Mining Corp. is pleased to announce the appointment of Ms. April Hashimoto to the position of Chief Financial Officer (CFO) effective August 28, 2006. Ms. Hashimoto will replace Mr. John Norman, the Company's current CFO, who is retiring after a long and successful career in the mining industry." More
- August 08, 2006 | Item | E-mail
IAMGOLD Announces Quimsacocha Drill Results - "IAMGOLD Corporation is pleased to announce the results of an additional 39 diamond drill holes on its 100% owned Quimsacocha Project in Ecuador, including an intersection of 108 meters averaging 16.2 grams per tonne (g/t) gold, 83.6 g/t silver and 1.3% copper (Hole 333). Quimsacocha is located 40 kilometers southwest of the city of Cuenca in southern Ecuador."More
- August 08, 2006 | Item | E-mail
Goldcorp Declares Eighth Monthly Dividend Payment for 2006 - "GOLDCORP INC. is pleased to declare its eighth monthly dividend payment for 2006 of $0.015 per share. Shareholders of record at the close of business on Friday, August 18, 2006 will be entitled to receive payment of this dividend on Friday, August 25, 2006." More
- August 08, 2006 | Item | E-mail
Metallica Resources Announces Second Quarter Results - "The Company reported net income of $0.01 million ($0.00 per share) for the three months ended June 30, 2006 as compared to a loss of $0.99 million ($0.01 per share) for the three months ended June 30, 2005. The increase in net income of $1.00 million in the current period was primarily due to a $1.54 million increase in foreign exchange gains on cash balances held in Canadian dollars." More
- August 08, 2006 | Item | E-mail
Kimber drills 18 metres of 17.7 g/t Au eq. at Carmen - "The most notable hole, MTR-363 returned 18 metres of 17.70 g/t gold equivalent including 4.0 metres of 70.67 g/t gold equivalent. This hole was targeting part of the Los Hilos structure located on the eastern part of Carmen, where there is an area of about 100 metres across with little drilling. This area has been followed up with MTR-384 (results pending), up dip from MTR-363, and will likely see further drilling if results continue to show intercepts of economic interest." More
- August 08, 2006 | Item | E-mail
Stillwater Mining Reports Second Quarter Results - "STILLWATER MINING COMPANY reported a net loss of $2.3 million for the second quarter of 2006 or $0.03 per diluted share, on revenue of $116.8 million, compared to a net loss of $0.6 million for the second quarter of 2005 or $0.01 per diluted share, on revenue of $125.4 million." More
- August 08, 2006 | Item | E-mail
- Chris Mullen, Gold Seeker Report
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-- Posted 8 August, 2006 | |
