-- Posted 22 August, 2006 | | Source: SilverSeek.com
Gold Seeker Closing Report – Gold & Silver Fall Slightly
By: Chris Mullen, Gold-Seeker.com
Market Close, August 22, 2006
| Close | Gain/Loss |
Gold | $625.30 | -$0.30 |
Silver | $12.21 | -$0.06 |
XAU | 148.20 | +0.35% |
HUI | 347.51 | +0.81% |
GDM | 1099.64 | +0.56% |
JSE Gold | 3075.14 | +2.94% |
USD | 85.16 | +0.48 |
Euro | 127.91 | -1.06 |
Yen | 85.69 | -0.62 |
Oil | $72.63 | +$0.18 |
10-Year | 4.811% | -0.008 |
T-Bond | 109.875 | +0.09375 |
Dow | 11339.84 | -0.05% |
Nasdaq | 2150.02 | +0.11% |
S&P | 1298.82 | +0.10% |
The Metals:
Gold rose a couple of dollars in Asia before it fell back off to near unchanged in London and dropped a few more dollars in morning New York trade, but it then rallied back in the last 2 hours of trade and ended with an insignificant loss. Silver rose to over $12.30 in Asia before it fell off in London and continued to drop in early New York trade to as low as $11.98 at one point, but it then rallied throughout most of the rest of trade and ended with just minor a loss.
Euro gold remained at about €487, platinum lost $5 to $1,220, palladium lost $3 to $338, and copper fell over 2 cents to about $3.45.
Gold and silver equities fell over 1% in early trade, rebounded to find slight gains by early afternoon, and again fell back off a bit, but they then rallied into the close and ended slightly higher on the day.
The Economy:
There were no major economic reports today, but some comment’s from the fed’s Moskow about the possible need for further interest rate hikes did have some talking. Tomorrow at 10AM is the Existing Home Sales report for July expected at 6.55M.
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The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil traded mostly slightly lower in early trade before turning mostly slightly higher in later trade as most watched for actions by Iran and prepared for tomorrow’s inventory reports. Iran announced today that they would be willing to enter “serious negotiations” over its nuclear program, but they mentioned nothing about uranium enrichment which may result in sanctions by the UN at the end of the month.
The U.S. dollar index rose after the Euro fell following a disappointing German sentiment report.
Treasuries rose slightly in early trade before falling back near unchanged after Moskow’s hawkish remarks.
The Dow, Nasdaq, and S&P found moderate gains in early trade on decent earnings and fell off in early afternoon trade following Moskow’s comments that reignited interest rate fears, but they then rallied back into the close and ended mixed and near unchanged.
Among the big names making news in the market today were InterContinental, Perry Elis, Toll Brothers, and Microsoft.
The Commentary:
“Last week part of the MIDAS focus was on the pennant formations of gold, silver and the HUI. Gold broke down from its pennant formation, silver held and was crying out to go higher, and the HUI broke down initially, but then reversed late and held its formation.
Silver and the HUI are in the process of breaking out to the upside … it appears gold put in a false breakdown courtesy of The Gold Cartel and is now in the process of declaring such. As mentioned Friday re the HUI, false breakdowns are often a precursor to substantial moves to the upside. In the past I have referred to such moves down, followed by reversals, as killer moves. They wipe out the last of the weak hands, the mob gets bearish, and up we go.” - From yesterday’s Midas report by Bill Murphy of LemetropoleCafe.com
“December Gold closed down 1.2 at 634. This was 4.4 up from the low and 1.2 off the high.
September Silver finished down 0.08 at 12.265, 0.045 off the high and 0.235 up from the low.
The gold market continued to waffle throughout most of the session Tuesday, as the Dollar remained very firm and the Iranians apparently took the edge off the sanctions threat with their offer to negotiate. It should be noted that the Fed dialogue during the session Tuesday failed to undermine the Dollar and that might have been a big disappointment to the Dollar bears. The Fed did suggest that they were comfortable with current inflation data and that it was too early to even think about rate cuts and that should have weakened the Dollar. In the end, the gold market could have seen significant pressure from the fundamental developments during the session but all things considered the market held together rather impressively. It should also be noted that the gold market was partially overbought from the prior session gains and therefore a little back and fill action on the charts isn't that surprising. In the end, the trade looks forward to beginning of negotiations with Iran and until the track of that outcome is known it could be difficult for the bull or bear camp to dominate prices.
As suggested in the gold market commentary it was not surprising for the silver market to back and fill after the strong gains Monday, but with the Dollar higher, gold weaker, equity prices down and copper prices mostly weak it was clear that the bear camp had other factors besides the technicals working in its favor. However, a portion of the trade is fretting over the potential slowing and the threat against physical demand, while the investment crowd in silver is not sure what to make of the current geopolitical setup. In the end, it might be better for silver to see the Iranian situation calm down and oil prices to slide, even if the initial impact was negative from a short term perspective.” - The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Barrick stung by GATA's criticism of hedge book amid bid for NovaGold
Euro nears high of year against dollar
Ted Butler: First nickel, then silver?
The Statistics:
As of close of business: 08/21/2006
Gold Warehouse Stocks: | 8,162,946 | -16,075 |
Silver Warehouse Stocks: | 103,505,627 | -323,994 |
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$ 7,814m |
LSE (London Stock Exchange) AND Euronext Paris | Gold Bullion Securities | 78.19 | 2,513,908 | US$ 1,569m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 9.78 | 314,037 | US$ 196m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 11.13 | 357,769 | US$ 223m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU)
Profile as of 08/21/2006 | |
Total Net Assets | $867,392,663 | Ounces of Gold
in Trust | 1,386,595.482 |
Shares Outstanding | 13,950,000 | Tonnes of Gold
in Trust | 43.13 |
Note: No change in Total Tonnes from yesterday’s data.
Silver Trust (SLV)
Profile as of 08/21/2006 | |
Total Net Assets | $1,185,417,585 | 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:
NovaGold’s (NG) start of construction at Rock Creek, Buenaventura’s (BVN) increased controlling interest in Inversiones Mineras del Sur S.A. to 100%, Newmont’s (NEM) operations in Peru, and Agnico-Eagle’s (AEM) involvement in Stornoway’s takeover bid for Aston were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Orezone Resources | OZN +7.38% $1.60 |
2. Nevsun Resources | NSU +4.85% $3.24 |
3. Seabridge | SA +4.67% $14.33 |
LOSERS
1. Entree Gold | EGI -5.6% $1.18 |
2. Gold Reserve | GRZ -3.36% $4.60 |
3. Aurizon Mines | AZK -3.19% $2.43 |
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:
Compania de Minas Buenaventura S.A.A. Increases Controlling Interest in Inversiones Mineras del Sur S.A. to 100% - "Compania de Minas Buenaventura S.A.A., Peru's largest publicly-traded precious metals mining company, announced today that its subsidiary, Inversiones Mineras del Sur S.A (INMINSUR), repurchased the 21.96% participation from its minority shareholders. The total payment was US$17.3 million." More
- August 22, 2006 | Item | E-mail
Wolfden and Premier Announce their Guidance regarding the Computation of the Shareholders' Adjusted Cost Base - More
- August 22, 2006 | Item | E-mail
Keegan Extends Gold-in-Soil Trend Anomally to 9 km on Esaase Gold Property - More
- August 22, 2006 | Item | E-mail
CORRECTION FROM SOURCE: Sargold Completes Agreement With Medoro Resources - More
- August 22, 2006 | Item | E-mail
First tranche of private placement completed for $800,000 - More
- August 22, 2006 | Item | E-mail
Vangold Resources Ltd.: Deep Basin Test Well Spuds - More
- August 22, 2006 | Item | E-mail
Sargold Completes Agreement With Medoro Resources - More
- August 22, 2006 | Item | E-mail
El Alacran Gold Mine Corp. in Negotiations With Neighboring Property, The Alacran-Scorpio Mine - More
- August 22, 2006 | Item | E-mail
Golden Odyssey Mining Confirms Exploration Model with Positive Results of Initial Drilling at Morningstar - More
- August 22, 2006 | Item | E-mail
MGM Mineral Resources Receives Strong Support From Regional and Provincial Governments in Colombia - More
- August 22, 2006 | Item | E-mail
Pearl Asian Mining Industries Signed a Joint Venture Agreement: Gold Project Sta. Barbara, Near Paracale, Camarines Norte - More
- August 22, 2006 | Item | E-mail
Emgold Announces 7.5 Million Unit Non-Brokered Financing - More
- August 22, 2006 | Item | E-mail
Rocmec Updates Progress at its Russian Kid Gold Property - More
- August 22, 2006 | Item | E-mail
Prospero Minerals Corporation Announces Management Changes and Business Prospects Going Forward - More
- August 22, 2006 | Item | E-mail
Kings Minerals NL and Andaurex Industries Sign Business Combination Agreement - More
- August 22, 2006 | Item | E-mail
Eagle Plains/Mulligan Capital Corp Execute Letter of Intent to Option Eagle Lake, Saskatchewan Uranium Property - More
- August 22, 2006 | Item | E-mail
Underground Drilling at Natividad Intersects Extension of Historically-Mined Poder Vein: 1.30 Meters Grading 19.35 GPT Gold and 1,240 GPT (1.24 kilos per tonne) - More
- August 22, 2006 | Item | E-mail
Osprey Retains All Mining Assets - More
- August 22, 2006 | Item | E-mail
Silver-Based Biocides Gaining Share in Plastics, According to Kline Studies - More
- August 22, 2006 | Item | E-mail
Alexis Completes Purchase of 1400 TPD Gold Mill and 100% Interest in Aurbel Property - More
- August 22, 2006 | Item | E-mail
Virgin Metals Inc. Announces Initial Drill Results at Los Verdes - More
- August 22, 2006 | Item | E-mail
Globex Arranges Second Private Placement - More
- August 22, 2006 | Item | E-mail
Sunridge Gold Corp.: Lundin Mining Exercises Warrants and Sunridge Triggers $0.90 Warrants - More
- August 22, 2006 | Item | E-mail
Silver Dragon Announces High-Grade Silver Assay Results, 1,435 Grams per Tonne/46.1 Ounces Silver - More
- August 22, 2006 | Item | E-mail
Progress Continues Toward Major Surface-Minable Resource at Million Mountain -- Latest Drilling Yields 79.5 Meters @ 1.20 G/T Au - More
- August 22, 2006 | Item | E-mail
Pelangio and a Hunter Dickinson Group Company reach agreement on Detour Lake property in Ontario - More
- August 22, 2006 | Item | E-mail
Luiri Gold Commences Major Exploration Programme in Zambia - More
- August 22, 2006 | Item | E-mail
Puma Exploration Inc.: 3.5 Metres of Massive Sulphides Grading 195 g/t Ag, 1 g/t Au, 1.8% Zn and 2.1% Pb on the Henry Deposit - More
- August 22, 2006 | Item | E-mail
Exeter Resource Corporation: Cerro Puntudo Drilling Extends Gold and Silver Zones - More
- August 22, 2006 | Item | E-mail
Ashton Rejects Stornoway Takeover Bid - "Under the deal, contact shareholders will get 0.36 of a Stornoway share for each Contact share, a deal worth about C$.45 ($.40 US) a share. Contact's controlling shareholder, Agnico-Eagle Mines Ltd., has agreed to tender its 13.8 million shares, or 31 percent of the company, to the bid. It will hold about 14 percent of the combined company when the deals are complete." More
- August 22, 2006 | Item | E-mail
Miners to pay Peru over $310 mln to avoid royalty - "Mining companies operating in Peru, the world's No. 3 copper producer, will hand over more than $310 million to the new government of President Alan Garcia to avoid new taxes, a source close to negotiations said on Tuesday. Garcia has urged mining companies to make the voluntary payment instead of facing new royalties or a windfall tax to help meet his pledge to invest around billions of dollars in infrastructure and to alleviate poverty." More
- August 22, 2006 | Item | E-mail
NovaGold Starts Construction at Rock Creek Gold Mine in Alaska - "NovaGold Resources Inc. has received all necessary permits to begin construction at its Rock Creek gold mine located near Nome, Alaska. Gold production is expected within nine months, making it the first of NovaGold's projects to become a producing mine." More
- August 22, 2006 | Item | E-mail
- Chris Mullen, Gold Seeker Report
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-- Posted 22 August, 2006 | |
