-- Posted 16 August, 2006 | | Source: SilverSeek.com
| Close | Gain/Loss |
Gold | $628.50 | +$6.00 |
Silver | $12.24 | +$0.21 |
XAU | 143.24 | +1.42% |
HUI | 334.46 | +1.30% |
GDM | 1063.95 | +1.57% |
JSE Gold | 2929.81 | +2.14% |
USD | 84.88 | -0.32 |
Euro | 128.54 | +0.69 |
Yen | 86.35 | +0.22 |
Oil | $71.89 | -$1.16 |
10-Year | 4.871% | -0.060 |
T-Bond | 109.3125 | +0.59375 |
Dow | 11327.12 | +0.86% |
Nasdaq | 2149.54 | +1.63% |
S&P | 1295.43 | +0.77% |
The Metals:
Gold rose a few dollars in Asia and added to its gains in early London trade before dipping a bit coming into the New York open, but it then quickly rose to about $10 higher on the day to above $632. After that it fell to about $628 before again rising to above $632, but it then fell back off into the close to about $626 before rebounding in the last minutes of trade to end back above $628 with a gain of 0.96%. Silver rose about 5 cents in Asia and London before it added about another 25 cents in early New York trade, but it also sold off a bit into the close to end off its highs with a gain of 1.75%.
Euro gold rose to about €490, platinum gained $14 to $1,236, palladium gained $12 to $330, and copper fell about 5 cents to under $3.50.
Gold and silver equities rose about 2% at the open before steadily selling off a bit for the rest of trade, but they still ended with about 1.5% gains.
The Economy:
Report | For | Reading | Expected | Previous |
CPI | July | 0.4% | 0.4% | 0.2% |
Core CPI | July | 0.2% | 0.3% | 0.3% |
Building Permits | July | 1747K | 1840K | 1862K |
Housing Starts | July | 1795K | 1810K | 1841K |
Capacity Utilization | July | 82.4% | 82.7% | 82.3% |
Industrial Production | July | 0.4% | 0.6% | 0.8% |
Wall Street got exactly what it wanted today as Core CPI came in less than expected to reduce inflation fears and housing data and industrial output came in les than expected to further confirm indications of a slowing economy, all of which allows the fed to continue to not raise interest rates. Year over year core inflation rose to 2.7% from 2.6% in June, however, and that is well above the fed’s “comfort zone” of 1% to 2%.
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The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil traded slightly lower in early trade and fell further after this morning’s supply report which showed crude inventories fell 1.6 million barrels, gasoline inventories fell 2.3 million barrels, and distillates built 800,000 barrels. The drops in crude and gasoline inventories were slightly larger than expected, but a report from OPEC that cut their demand forecast helped to push energy prices lower.
The U.S. dollar index dropped and treasuries gained again as tame inflation data and weak economic data increased the chances that the fed will not raise interest rates at their next meeting. The yield on the 10-year fell to a 4 and ½ month low.
The Dow, Nasdaq, and S&P steadily rose throughout trade and again ended with about 1% gains on hopes for an end to interest rate increases by the fed. The Dow and S&P ended at 3 month closing highs and the Nasdaq ended at a 1 month high.
Among the big names making news in the market today were HP, Teck Cominco and Inco, BHP Billiton and Escondida, Dell, Estee Lauder, Big Lots, Jones Apparel, Talbots, and Heinz and Peltz.
The Commentary:
“The PPI number comes out benign (whether it was valid or not is another matter) and offered as the reason gold was hit. Yet I cannot recall a time when a roaring inflation number had gold running to the upside. Perhaps it has happened once in the last 90 reports. The Gold Cartel always sits on the price when the inflation number is a doozy.
In the past the dingbat pundits would say gold fell on a big inflation number because the dollar rose in anticipation of higher US interest rates. However, when the dollar falls in anticipation of lower US rates, and gold falls too, they focus on the inflation number, not the falling dollar. Houston’s Dan Norcini has it nailed in an email to colleagues:
How do you guys like this? If this isn’t a case of “Heads – I win; Tails – You lose”, I don’t know what is…” - From yesterday’s Midas report by Bill Murphy of LemetropoleCafe.com
“December Gold closed up 6.1 at 639. This was 3.5 up from the low and 4 off the high.
September Silver finished up 0.2 at 12.285, 0.155 off the high and 0.105 up from the low.
The gold trade partially impressed the trade with its ability to discount soft CPI readings and equally soft US housing starts and permits data. In fact, it was pretty clear that the gold market was garnering some support from the weaker Dollar and wasn't as concerned about the evidence of slowing in the US economy. However, with the US equity market managing rather stellar gains for most of the session, it is not surprising that the deflation crowd wasn't put up in arms over the slackness of the US data. On the other hand, the Press continues to suggest that value hunting buying and or physical buying interest is responsible for the recent bounce and that is another theme that is apparently giving would-be bulls some confidence.
While the silver market seemed to hold a relatively smaller portion of the initial gains, the market still managed to improve its general chart look and in the process probably prompted a number of shorts to give more respect to current bull case. However, with copper prices weak and the precious metals all up strong on Wednesday, it would seem that the precious metals markets in general are back into favor with a slight edge over physical metals fundamentals.” - The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Join GATA at the New Orleans Investment Conference in November
Ted Butler: Silver is a better investment than ever
The Statistics:
As of close of business: 08/15/2006
Gold Warehouse Stocks: | 8,178,823 | - |
Silver Warehouse Stocks: | 103,073,981 | - 594,648 |
Global Gold ETF Holdings
[WGC Sponsored ETF’s]
| Product name | Total Tonnes | Total Ounces | Total Value |
New York Stock Exchange (NYSE) | Streettracks Gold Shares | 388.98 | 12,506,073 | US$ 7,821m |
LSE (London Stock Exchange) AND Euronext Paris | Gold Bullion Securities | 78.20 | 2,514,075 | US$ 1,581m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 9.71 | 312,258 | US$ 196m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 11.13 | 357,792 | US$ 223m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU)
Profile as of 08/15/2006 | |
Total Net Assets | $856,825,820 | Ounces of Gold
in Trust | 1,376,657.490 |
Shares Outstanding | 13,850,000 | Tonnes of Gold
in Trust | 42.82 |
Note: No change in Total Tonnes from yesterday’s data.
Silver Trust (SLV)
Profile as of 08/15/2006 | |
Total Net Assets | $1,161,287,294 | Ounces of Silver
in Trust | 96,909,651 |
Shares Outstanding | 9,700,000 | Tonnes of Silver
in Trust | 3,014.2 |
Note: No change in Total Tonnes from yesterday’s data.
The Stocks:
Fronteer’s (FRG) drill results, Golden Star’s (GSS) drill results, Queenstake’s (QEE) drill results, New Gold’s (NGD) New Afton project update, Apollo Gold’s (AGT) SEDAR filing, and Newmont’s (NEM) difficulties in Uzbekistan were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Fronteer | FRG +7.56% $4.84 |
2. Gold Reserve | GRZ +7.24% $4.74 |
3. U.S. Energy | USEG +6.61% $3.87 |
LOSERS
1. Cardero Resource | CDY -5.42% $1.57 |
2. Aurizon Mines | AZK -2.49% $2.35 |
3. Northern Orion | NTO -1.47% $4.68 |
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:
Tagish expands previously announced flow-through private placement and arranges further private placement of units for Skukum Creek gold-silver deposit - More
- August 16, 2006 | Item | E-mail
Mexivada to Mobilize Drill Rig to Yécora Project, Mexico - More
- August 16, 2006 | Item | E-mail
Freegold trenching intersects 85 feet @ 34.8 g/tonne (1.01 oz/ton) gold over 5 foot widths among new high grade veins - More
- August 16, 2006 | Item | E-mail
Wesdome Gold Mines Announces Second Quarter Results - More
- August 16, 2006 | Item | E-mail
Copper Fox Metals Inc. announces $500,000 Flow-Through Financing - More
- August 16, 2006 | Item | E-mail
EURO Ressources S.A. Announces Resignation of Golden Star as Director - More
- August 16, 2006 | Item | E-mail
Madison Minerals Inc.: Further Drilling at Mt. Kare Expands Gold Mineralization - More
- August 16, 2006 | Item | E-mail
Luna to acquire 50% of Aurizona Goldfields Corporation - More
- August 16, 2006 | Item | E-mail
Acquisition of additional 508 claims and 3 leases with historical reserves - land holdings now doubled - More
- August 16, 2006 | Item | E-mail
Puma Exploration: $256,500 Placement Completed - More
- August 16, 2006 | Item | E-mail
Unico, Inc. Announces Initial Agreement on Joint Venture for Silver Bell Mine - More
- August 16, 2006 | Item | E-mail
Beartooth Provides Update on Stillwater Summer Program - More
- August 16, 2006 | Item | E-mail
Amera Resources Corporation: Drilling Underway on Cocha Copper-Silver Project, Peru - More
- August 16, 2006 | Item | E-mail
Sur American Gold Corporation: Drilling Underway at 7km Long Tagpura Copper-Gold Project - More
- August 16, 2006 | Item | E-mail
High-grade gold mineralization continues at Etruscan's Diba discovery in Mali, West Africa - More
- August 16, 2006 | Item | E-mail
Buffalo Gold Expands Mineralization at Mt. Kare-Brings in Third Drill Rig - More
- August 16, 2006 | Item | E-mail
Maudore Minerals Limited: Initial 2006 Drill Results Confirm Comtois Gold Mineralization - More
- August 16, 2006 | Item | E-mail
Moto Goldmines Limited-Appointment of New Directors - More
- August 16, 2006 | Item | E-mail
Universal completes airborne radiometric survey in Labrador - More
- August 16, 2006 | Item | E-mail
Linux Gold Corp. Increases Land Position to 68 Square Miles on the Granite Mountain Property, Western Alaska - More
- August 16, 2006 | Item | E-mail
Sienna Confirms Presence of Mineralized Porphyry Intrusive - More
- August 16, 2006 | Item | E-mail
Capital Gold Secures US$12,500,000 Senior Project Finance Facility With Standard Bank Plc for the El Chanate Gold Project - More
- August 16, 2006 | Item | E-mail
Midlands Minerals Corporation Announces Completion of In-Fill Survey on the Gold Anomaly Discovery on Itilima, Tanzania - More
- August 16, 2006 | Item | E-mail
Solitaire Minerals Corp. Completes Mystery Island Airborne Survey - More
- August 16, 2006 | Item | E-mail
Alexis Encouraged By Additional Results At Lac Herbin-Hangingwall Zone Extended By 100 Metres - More
- August 16, 2006 | Item | E-mail
Norsemont significantly increases the size of the mineralised zones and adds third drill rig at the Constancia Project - More
- August 16, 2006 | Item | E-mail
Uranium One Announces Results of Feasibility Study on the Modder East Project of its Aflease Gold subsidiary - More
- August 16, 2006 | Item | E-mail
Silver Dragon Resources Inc. Signs Letter of Intent to Acquire Equity Interest in Silver and Gold Producing Hubei Silver Mine Co., Ltd., China - More
- August 16, 2006 | Item | E-mail
Samira Hill Plant Returns to Full Operation - More
- August 16, 2006 | Item | E-mail
Golden Phoenix Appoints Top Mining Executive, Donald Prahl, to Lead Start-Up of Ashdown Moly Mine - More
- August 16, 2006 | Item | E-mail
De Beira Announces the Appointment of an Exploration Manager and the Commencement of Drilling at the Minanca Mining Project in the El Oro Province of Ecuador - More
- August 16, 2006 | Item | E-mail
EURO Ressources S.A. Announces Record Revenue for the Second Quarter 2006 - More
- August 16, 2006 | Item | E-mail
Fronteer's Aurora Intersects 0.25% U3O8 Over 15 Metres at White Bear Lake, Labrador - "Fronteer Development Group Inc. announces that Aurora Energy Resources Inc. in which Fronteer holds a 49.3% interest, drill tested a zone of outcropping uranium mineralization at White Bear Lake and returned 0.25% U3O8 over 15 metres - starting at surface in drill hole WB-06-01. This hole was then undercut by 50 metres in a subsequent drill hole WB-06-02, which returned 0.16% over 5.0 metres." More
- August 16, 2006 | Item | E-mail
Golden Star Announces Progress on Prestea Underground, West Reef and Additional Intersections above One Ounce Per Ton - "Exploration of the West Reef has continued throughout the first half of 2006, with drilling from the 17 and 24 Levels, using access from the existing underground infrastructure. The West Reef is a steeply dipping laminated quartz vein within a graphitic shear zone running sub-parallel to and in the hanging-wall of the Prestea Main Reef. In contrast to the Main Reef, which was extensively mined during past exploitation, the West Reef has been only intermittently developed, with significant blocks of potential reef ore unmined. As noted in our press release of February 28, 2006, this target is often characterized by bonanza grades exceeding one ounce of gold per ton with visible gold commonly being observed." More
- August 16, 2006 | Item | E-mail
Queenstake Drilling Extends High-Grade Gold Mineralization at Mahala Deposit - "Queenstake Resources Ltd. has intercepted high-grade gold mineralization in underground exploration drilling along extensions of mineralized trends at the Mahala deposit (Smith Mine). Results included intercepts 40 feet grading 1.82 ounces of gold per ton (opt) or 12.2 meters of 62 grams of gold per tonne (gpt) and 30 feet of 0.91 opt (9.1 meters of 31 gpt) along the Mahala Dike Trend and located in close proximity to the current development drift at Smith." More
- August 16, 2006 | Item | E-mail
New Gold Inc.: New Afton Project Update - "New Gold Inc. is pleased to announce the appointment of Barclays Capital, the Investment Banking division of Barclays Bank PLC ("Barclays Capital"), as Lead Arranger for the debt financing of the New Afton copper-gold deposit, near Kamloops, British Columbia, Canada. Barclays Capital will provide these services through the Mining & Metals team within the Investment Banking Division." More
- August 16, 2006 | Item | E-mail
Apollo Gold Announces the filing with SEDAR of the New 43-101 for the Black Fox Project - " The resource study was prepared by Mine Development Associates ("MDA"), a mining engineering firm based in Reno, Nevada, USA. MDA has confirmed that the study complies in all respects with 43-101 guidelines. The MDA Executive Summary for the 43-101 was previously announced June 30, 2006." More
- August 16, 2006 | Item | E-mail
Uzbekistan seeks bankruptcy of Newmont JV - "A court in Uzbekistan has initiated bankruptcy proceedings against the local joint venture of U.S. gold miner Newmont Mining Corp., according to a statement published on Wednesday. Newmont's difficulties come at a time when Uzbekistan's relations with the West are strained following strong Western condemnation of a bloody crackdown on a rebellion in the Uzbek town of Andizhan in May 2005." More
- August 16, 2006 | Item | E-mail
- Chris Mullen, Gold Seeker Report
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-- Posted 16 August, 2006 | |
