-- Posted 29 August, 2006 | | Source: SilverSeek.com
| Close | Gain/Loss |
Gold | $610.60 | -$4.30 |
Silver | $12.11 | +$0.13 |
XAU | 143.99 | +0.33% |
HUI | 338.23 | +0.64% |
GDM | 1066.99 | +0.45% |
JSE Gold | 2869.78 | -3.45% |
USD | 84.97 | -0.26 |
Euro | 128.16 | +0.23 |
Yen | 85.67 | +0.30 |
Oil | $69.71 | -$0.90 |
10-Year | 4.783% | -0.014 |
T-Bond | 110.1875 | +0.09375 |
Dow | 11369.94 | +0.16% |
Nasdaq | 2172.30 | +0.54% |
S&P | 1304.28 | +0.19% |
The Metals:
Gold rose a couple of dollars in Asia and held slightly higher in London, but it then again fell in morning New York trade to as low as $606.70 before a rebound into the close brought it off its lows to end with a loss of 0.70%. Silver also dropped in morning New York trade after it traded higher in Asia and London, but it rebounded sharply in the last 3 hours of trade and ended near its highs of the session with a gain of 1.09%.
Euro gold fell under €480, platinum gained $3 to $1,212, palladium lost $6 to $332, and copper lost nearly 3 cents to about $3.40.
Gold and silver equities fell nearly 2% in morning trade, but they then rebounded following the release of the fed’s minutes and ended slightly higher on the day.
The Economy:
Report | For | Reading | Expected | Previous |
Consumer Confidence | Aug | 99.6 | 102.5 | 107.0 |
FOMC minutes from the fed’s August 8th meeting showed the decision to pause was a “close call” and that it by no means marked the end to their recent tightening cycle. The fed remains data dependent for future interest rate decisions. Lacker was the only fed member that wanted to raise interest rates, and Wall Street saw that as encouraging for a continued pause in interest rate hikes in the future. Tomorrow at 8:30AM EST brings the preliminary reading for second quarter GDP expected at 3.0%. The Chain Deflator is expected at 3.3%.
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The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil traded about $1 lower throughout most of trade on continued relief that tropical storm Ernesto does not appear to be headed towards oil assets in the Gulf of Mexico.
The U.S. dollar index traded slightly higher for most of trade, but it then fell off remarkably following the release of the fed’s minutes and ended noticeably lower.
Treasuries fell in early trade, but they then rebounded to end slightly higher in reaction to the fed’s minutes. The yield on the 10-year fell to a new 5 month low.
The Dow, Nasdaq, and S&P fell in early trade on worries over interest rates, but they then rose to find slight gains by the end of trade as the fed’s minutes showed support for a pause in interest rate hikes at their last meeting.
Among the big names making news in the market today were Inco, CVRD, Phelps Dodge, Schering-Plough, GM, Foster’s, Bayer, SpiralFrog and Universal, Coca-Cola, BP, Citigroup, Bank of America, JPMorgan, and Barnes & Noble.
The Commentary:
“Over the last week and more the gold price has come under pressure from Comex and not from other global gold markets, giving rise to the belief that this is a fund driven assault on the gold price, tying in their selling to the declining oil price. The oil price has not declined significantly and the fundamentals remain unchanged in that market, so with the rising demand from the physical sector appearing at these and higher levels, the funds are very much in danger of drawing back a bow string on the gold price. The further back it goes the tighter the bow.” - Julian D.W. Phillips, www.goldforecaster.com
“December Gold closed down 4.8 at 619.1. This was 3.6 up from the low and 6.9 off the high.
December Silver finished up 0.125 at 12.322, 0.058 off the high and 0.302 up from the low.
With the gold market showing significant weakness early in the session and finally managing to regain strength into the afternoon trade at least a portion of the patently negative sentiment toward gold was mitigated. However, seeing the Dollar slide and finish weaker in the wake of a somewhat dovish Fed "news flow" was apparently supportive to gold. In fact, it almost seemed like the trade was somewhat relieved that the Fed wasn't poised to clamp down with a rogue rate hike. We also suspect that a sharp late recovery rally in crude oil sparked some flight to quality buying interest and we also suspect that some early shorts in gold, that were in ahead of the Fed simply decided to cover shorts into the close for other unrelated reasons.
The silver market showed much more consistently positive price action than gold in the action Wednesday but in the end the market only managed to return to the mid point of the last months trading range. We suspect that the weakness in copper and the much softer than expected US economic readings initially undermine the silver but in the end seeing the Fed as a less hawkish entity probably caused some buyers to come back into the market. Seeing oil prices recover into the close and seeing the equity market bounce off its lows of the day probably gave the bulls another added incentive.” - The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
More 'experts' are mystified
The Statistics:
As of close of business: 08/28/2006
Gold Warehouse Stocks: | 8,124,046 | -392 |
Silver Warehouse Stocks: | 103,873,114 | +4,870 |
Global Gold ETF Holdings
[WGC Sponsored ETF’s]
| Product name | Total Tonnes | Total Ounces | Total Value |
New York Stock Exchange (NYSE) | Streettracks Gold Shares | 390.52 | 12,555,726 | US$ 7,798m |
LSE (London Stock Exchange) AND Euronext Paris | Gold Bullion Securities | 78.18 | 2,513,714 | US$ 1,544m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 9.78 | 314,013 | US$ 193m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 9.89 | 318,032 | US$ 197m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU)
Profile as of 08/28/2006 | |
Total Net Assets | $852,905,888 | 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 08/28/2006 | |
Total Net Assets | $1,213,177,445 | Ounces of Silver
in Trust | 97,872,860 |
Shares Outstanding | 9,800,000 | Tonnes of Silver
in Trust | 3,044.2 |
Note: No change in Total Tonnes from yesterday’s data.
The Stocks:
A production shutdown at Newmont’s (NEM) mine in Peru, Golden Star’s (GSS) power shortages in Ghana, and Harmony’s (HMY) reserves were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Fronteer | FRG +4.80% $5.90 |
2. Eldorado Gold | EGO +4.62% $4.76 |
3. Cambior | CBJ +4.14% $3.27 |
LOSERS
1. Banro | BAA -3.16% $8.90 |
2. Nevsun Resources | NSU -2.86% $3.06 |
3. Rio Narcea | RNO -2.38% $2.46 |
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:
Colombia Goldfields Options More Than Half of Marmato "Golden Mountain" - More
- August 29, 2006 | Item | E-mail
Matamec Extends New Gold Zone and Hits Wide Mineralization at Montclerg - More
- August 29, 2006 | Item | E-mail
Update for Axis Lake Ni-Cu Project, Saskatchewan - More
- August 29, 2006 | Item | E-mail
Goldrea Resources Corp. and Molycor Gold Corp.: Permits Received for Diamond Drilling Program at Platinum/Palladium/Copper Property - More
- August 29, 2006 | Item | E-mail
Taranis announces Closing of Private Placement - More
- August 29, 2006 | Item | E-mail
Starfire closes $1,500,000 private placement - More
- August 29, 2006 | Item | E-mail
Keegan Discovers 20 Meters of 4.26 g/t Gold in Trench at Esaase Property - More
- August 29, 2006 | Item | E-mail
Laurion Gold and Geoinformatics Announce Strategic Alliance On the Superior Nickel Anglo Geoinformatics Project - More
- August 29, 2006 | Item | E-mail
Tornado Gold Acquires Illipah Gold Prospect in White Pine County, Nevada From Golden Cycle Gold Corporation - More
- August 29, 2006 | Item | E-mail
Continuing strong zinc-lead results from Doublestar's Ruddock Creek property - More
- August 29, 2006 | Item | E-mail
Golden Star Advises of Power Shortages in Ghana and Potential Short-Term Impact on Operations - "Golden Star Resources Ltd. today advised that the wholesale power utility in Ghana, namely the Volta River Authority, has advised of potential power shortages in Ghana and the need for bulk users (which would include Golden Star) to curtail their power consumption by as much as 25 to 50%." More
- August 29, 2006 | Item | E-mail
U.S. Gold TSX Listing Approved Trading To Begin Wednesday August 30, 2006 - More
- August 29, 2006 | Item | E-mail
Tribute Intersects More High Grade Zinc-3.2 Metres of 9.1% Zn within 6 Metres of 5.19% Zn. Encounters More Than 30% Over Limit Zinc - More
- August 29, 2006 | Item | E-mail
Silver Eagle Reports Further Vein Development and Initial Metallurgical Test Results at its Miguel Auza Property - More
- August 29, 2006 | Item | E-mail
Sabina's New Discovery Grades Up to 114 Oz/Ton Silver, O.57 Oz/Ton Gold -- Drilling Commences at Del Norte Project, Stewart-Eskay Creek Area - More
- August 29, 2006 | Item | E-mail
Protests shut down production at gold mine in Peru - "Production at Latin America's largest gold mine was at a standstill Tuesday because roadblocks by protesting farmers had made operations in northern Peru impossible, a top executive said. "The paralyzation of operations is total," said Carlos Santa Cruz, vice president of South America operations for Newmont Mining, the Denver-based company that owns a majority stake in the Yanacocha gold mine." More
- August 29, 2006 | Item | E-mail
Stratabound Closes Financing - More
- August 29, 2006 | Item | E-mail
Sierra Minerals Inc.: Shareholders Approve the Acquisition of the Cerro Colorado Gold Mine - More
- August 29, 2006 | Item | E-mail
Franconia Engages MTB Project Management for Birch Lake Advancement - More
- August 29, 2006 | Item | E-mail
426 g/t silver adds value to Cane Gold - More
- August 29, 2006 | Item | E-mail
Waseco Shareholders Ratify UraMin Transaction - More
- August 29, 2006 | Item | E-mail
Douglas Mackenzie Retires From Excellon - More
- August 29, 2006 | Item | E-mail
Typhoon Exploration Inc.: Options Granted to a Director - More
- August 29, 2006 | Item | E-mail
Temex engages Knight Piesold for environmental and permitting activities on Gowganda Silver Project - More
- August 29, 2006 | Item | E-mail
sxr Uranium One Announces Honeymoon Feasibility Study and Approves Honeymoon Project - More
- August 29, 2006 | Item | E-mail
Magnus International Resources, Inc.: Huidong Drilling Progress Update-Dingjiaping Target Area Ahead of Schedule - More
- August 29, 2006 | Item | E-mail
Intrepid Reports Further Positive Gold and Silver Drilling Results in El Salvador - More
- August 29, 2006 | Item | E-mail
Continental Minerals Corporation and Great China Mining Inc.: Xietongmen Project Update - More
- August 29, 2006 | Item | E-mail
Madison Minerals Inc.: Drill Results from Mt. Kare in PNG; Drilling Update for the Phoenix JV Property in Nevada - More
- August 29, 2006 | Item | E-mail
Magnus International Resources, Inc. Regretfully Announces the Passing of Dr. Paul Taufen - More
- August 29, 2006 | Item | E-mail
Glass Earth Announces NZ$10 Million Financing and Intention for Secondary Listing on New Zealand Stock Exchange - More
- August 29, 2006 | Item | E-mail
Southwestern Receives Regulatory Acceptance of Previously Announced Share Buy-Back Program - More
- August 29, 2006 | Item | E-mail
Arabian American Development Co. Announces Board Approval of Partnership Agreement - More
- August 29, 2006 | Item | E-mail
La Quinta Options Major Land Position in Democratic Republic of Congo - More
- August 29, 2006 | Item | E-mail
Buffalo Gold Continues to Hit Significant Mineralization at Mt. Kare - More
- August 29, 2006 | Item | E-mail
Terrace Ventures Inc. Public Offering - More
- August 29, 2006 | Item | E-mail
Harmony: can thank Western Areas stake for reserves boost - "The latest mineral resources and reserves statement from Harmony Gold Mining Co Ltd, the world’s fifth largest gold miner, demonstrates exactly why gold miners around the world have been so actively involved in mergers and acquisitions, despite the high price of doing cash or share deals." More
- August 29, 2006 | Item | E-mail
- Chris Mullen, Gold Seeker Report
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-- Posted 29 August, 2006 | |
