-- Posted 30 August, 2006 | | Source: SilverSeek.com
| Close | Gain/Loss |
Gold | $617.20 | +$6.60 |
Silver | $12.46 | +$0.35 |
XAU | 144.75 | +0.53% |
HUI | 339.95 | +0.51% |
GDM | 1072.56 | +0.52% |
JSE Gold | 2916.61 | +48.83 |
USD | 84.95 | -0.02 |
Euro | 128.36 | +0.20 |
Yen | 85.37 | -0.30 |
Oil | $70.03 | +$0.32 |
10-Year | 4.763% | -0.020 |
T-Bond | 110.3125 | +0.125 |
Dow | 11382.91 | +0.11% |
Nasdaq | 2185.73 | +0.62% |
S&P | 1304.27 | -0.00% |
The Metals:
Gold rose about $5 in Asia, cut its gains slightly in London, and then rose to new session highs near $620 in morning New York trade before it fell off a bit into the close, but it still ended with a gain of 1.08% on the day. Silver gained about 10 cents in Asia and London and added another 30 cents in early New York trade to about $12.50 before it fell back off some in early afternoon trade, but a sharp rally higher in the last minutes of trade led it close near its highs with a gain of 2.89%.
Euro gold rose to over €480, platinum gained $6 to $1,218, palladium gained $4 to $336, and copper fell a couple of cents to about $3.37.
Gold and silver equities rose about 1% at the open before they fell off to find slight losses by early afternoon trade, but they then rallied into the close and ended about 0.5% higher on the day.
The Economy:
Report | For | Reading | Expected | Previous |
GDP | Q2 | 2.9% | 3.0% | 2.5% |
Chain Deflator | Q2 | 3.3% | 3.3% | 3.3% |
GDP came in slightly less than expected. It came in above the advanced reading of second quarter growth first given about a month ago, but it still came in well below the final reading of first quarter growth of 5.6% given about 2 months ago.
Tomorrow at 8:30AM EST brings Initial Jobless Claims for 8/26 expected at 315,000, Personal Income for July expected at 0.5%, and Personal Spending expected at 0.8%. At 10AM are Chicago PMI for August expected at 57.0, Factory Orders for July expected at -0.8%, and the Help-Wanted Index for July expected at 33. Bernanke will also be speaking tomorrow.
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The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil fell in early trade following inventory reports that came in larger than expected, but it then rallied in late trade and ended back over $70 on signs of strong demand and a return of worries about Iran. Crude inventories rose 2.4 million barrels, gasoline inventories rose 400,000 barrels, and distillates rose 1.3 million barrels.
The U.S. dollar index traded mostly slightly higher before ending a bit lower as traders await the ECB’s decision about interest rates. Most expect the ECB to hold off on raising interest rates tomorrow, but many think some hawkish language may come with the pause to make way for an ECB hike in October.
Treasuries rose after GDP came in slightly weaker than expected and a 5-year note auction drew the highest demand in 9 years. The yield on the 10-year fell to a new 5 month low as traders continue to worry about slower economic growth more than inflation.
The Dow and Nasdaq traded mostly slightly higher and the S&P traded mostly slightly lower in light pre-holiday trade as the GDP report came in about as expected and company news came in mixed.
Among the big names making news in the market today were Merck, RUSAL and SUAL, Costco, Google, and Exelon.
The Commentary:
“The entire market action in the United States is a farce of epic proportions and identified months ago in this column. Those in power in Washington are pulling out all stops to rig the markets and send them in the ORDAINED direction the pitiful incumbents in Washington have ordered.
Nothing makes any sense anymore unless you know what we do on Planet GATA. Then it all fits and makes perfect sense. The DOW has to go up or the bums in power will be in the deepest of trouble. The Fed talks about fighting inflation, but drives intermediate and long term interest rates down. The dollar can’t go up because the fundamentals are so bad, but the Exchange Stabilization Fund won’t allow it to tank. Gold? The usual. It is held down so the obsequious morons on Planet Wall Street can point to this key inflation barometer and say that all is well.” - From yesterday’s Midas report by Bill Murphy of LemetropoleCafe.com
“December Gold closed up 7 at 626.1. This was 4.4 up from the low and 3.6 off the high.
December Silver finished up 0.348 at 12.67, 0.01 off the high and 0.27 up from the low.
With a quasi hook up recovery in gold, following a very poor performance on Tuesday, the gold market surprised the trade and in turn might have shocked some in the bear camp. In fact, with gold holding mostly higher in the face of a minor Dollar rise and another downside thrust in oil prices it would not seem like the currency focus or the flight to quality focus is controlling current prices. While the Press didn't seem to pay much attention to the impending UN/Iranian deadline it is likely that part of the gains Wednesday were the result of speculation on the August 31st deadline. It is also possible that the US GDP reading of +2.9% soothed some overly negative macro economic fears and with the Fed recently hinting at a pause ahead, it is possible that the trade took the GDP readings and the on-hold stance from the Fed and revised their economic forecasts higher and that in turn served to lift all the metals.
With the gold market providing positive leadership to silver and the silver market potentially hopeful of better growth ahead, it is not surprising that silver is benefiting from the financial and physical commodity market themes. Some traders suggested that the upcoming positioning report on silver might show dramatic reductions in the magnitude of the spec long positioning and that might in conjunction with an improving macro economic outlook have prompted short covering and fresh buying. Apparently the trade saw the $12.68 level in the December contract as an extremely critical pivot point and that would leave little chart resistance until the August 23rd high of $12.83.” - The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Yikes! GATA's message breaks through
Resource Investor takes another look at Barrick's bid for NovaGold
China reported ready to widen yuan's trading range
Peru negotiates end to siege at Yanacocha gold mine
GoldSeek's Peter Spina: U.S. must sacrifice the dollar or the economy
The Statistics:
As of close of business: 08/29/2006
Gold Warehouse Stocks: | 8,124,046 | - |
Silver Warehouse Stocks: | 104,475,069 | +601,955 |
Global Gold ETF Holdings
[WGC Sponsored ETF’s]
| Product name | Total Tonnes | Total Ounces | Total Value |
New York Stock Exchange (NYSE) | Streettracks Gold Shares | 390.52 | 12,555,726 | US$ 7,699m |
LSE (London Stock Exchange) AND Euronext Paris | Gold Bullion Securities | 78.18 | 2,513,686 | US$ 1,554m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 9.78 | 314,010 | US$ 194m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 9.89 | 318,029 | US$ 195m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU)
Profile as of 08/29/2006 | |
Total Net Assets | $846,508,925 | 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 08/29/2006 | |
Total Net Assets | $1,187,697,613 | 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:
Plans to restart Newmont’s (NEM) Yanacocha mine and AngloGold Ashanti’s (AU) comments on a potential power shortage in Ghana were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. DRDGOLD | DROOY+5.30% $1.39 |
2. Cardero | CDY +4.43% $1.65 |
3. Minefinders | MFN +3.67% $8.75 |
LOSERS
1. Orezone | OZN-2.50% $1.56 |
2. Almaden | AAU -2.40% $2.65 |
3. Eldorado | EGO-2.10% $4.86 |
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:
Ontex Resources Limited: Rights Offering - More
- August 30, 2006 | Item | E-mail
Canadian Shield Announces Second Quarter Results - More
- August 30, 2006 | Item | E-mail
Uranium One Announces $50 Million Term Facility - More
- August 30, 2006 | Item | E-mail
Solitaire Minerals Corp. Commences Geochemical sampling Program at Riou Lake, Athabasca Basin - More
- August 30, 2006 | Item | E-mail
StrataGold Advances Development of Projects in the Yukon and Guyana - More
- August 30, 2006 | Item | E-mail
Luna hires Jim Bahan as Chief Operating Officer - More
- August 30, 2006 | Item | E-mail
GREAT WEST GOLD, INC. - SUBSTANTIAL ACQUISITIONS - More
- August 30, 2006 | Item | E-mail
MAG Silver Announces Penoles Land Purchase at Juanicipio/Valdecanas - More
- August 30, 2006 | Item | E-mail
Norsemont hits significant mineralization at Constancia - More
- August 30, 2006 | Item | E-mail
Wescan Goldfields Inc. announces second quarter results - More
- August 30, 2006 | Item | E-mail
Pan American Gold Corporation Corporate Update - More
- August 30, 2006 | Item | E-mail
Bear Creek announces positive initial drill results from Santa Ana silver project, Peru - More
- August 30, 2006 | Item | E-mail
Golden Phoenix Initiates Formation of Operating Company With Win-Eldrich to Launch Molybdenum Production at Ashdown Mine - More
- August 30, 2006 | Item | E-mail
Young-Shannon Gold Mines, Limited Announces Planned Non-Brokered Private Placement of Up To CDN$660,000.00 - More
- August 30, 2006 | Item | E-mail
Drilling Intersects a 40-metre Mineralized Zone at Mengold's Burchell Lake Property - More
- August 30, 2006 | Item | E-mail
90% Buy Back Is 99% Complete -- Pearl Asian Mining Diagrams the Options & Process to Convert Its Preferred Shares and Convertible Debentures - More
- August 30, 2006 | Item | E-mail
Golden Odyssey Receives 43-101 Report Recommending Significant Drilling on its Anchor Property, Cortez Trend, Nevada - More
- August 30, 2006 | Item | E-mail
Information Release - Rosia Montana Project Marks Last Session in Public Meeting Process - More
- August 30, 2006 | Item | E-mail
Pele Mountain Reports Wawa Area Diamond Sampling Results - More
- August 30, 2006 | Item | E-mail
Palladon Ventures Ltd. Announces Board and Management Changes - More
- August 30, 2006 | Item | E-mail
Unico, Inc. Receives Preliminary Assay Results From Diamond Core Samples From Drilling Program at Deer Trail Mine - More
- August 30, 2006 | Item | E-mail
Alberta Star Successfully Completes a Regional High Resolution Radiometric Survey Over the Eldorado Uranium District - More
- August 30, 2006 | Item | E-mail
Western Warrior commences HRAM survey at Caribou Lake, Manitoba - More
- August 30, 2006 | Item | E-mail
Silver Shield Resources Acquires Silver/Nickel/Cobalt Property - More
- August 30, 2006 | Item | E-mail
Flag Resources (1985) Limited Appeals Before The Alberta Securities Commission and the Court Of Appeal Of Alberta, Respectively, Against Sanctions Imposed By Th - More
- August 30, 2006 | Item | E-mail
Redcorp Ventures Ltd.: Tulsequah Project - More
- August 30, 2006 | Item | E-mail
Scorpio's New Hoag Zone Returns Increased Grades at Depth, including 294.14 g/t Silver, 7.43% Zinc, 1.69% Copper, 8.03% Lead and 0.22 g/t Gold over 5.60 metres - More
- August 30, 2006 | Item | E-mail
EXMIN Acquires an Additional District-Scale Gold Target in the Sierra Madre Gold Belt of Chihuahua, Mexico - More
- August 30, 2006 | Item | E-mail
Konigsberg Corporation Continues Progress on Yoquivo - More
- August 30, 2006 | Item | E-mail
Frontier Pacific awards Engineering Contracts to Aker Kvaerner for the Perama Hill Gold Project, North-eastern Greece - More
- August 30, 2006 | Item | E-mail
Resource Estimate Underway at Odyssey's Tavsan Gold Property - More
- August 30, 2006 | Item | E-mail
Alhambra Resources Ltd. - Financial and Operating Results for Second Quarter ending June 30, 2006 - More
- August 30, 2006 | Item | E-mail
Silver Dragon to Commence NI 43-101 Technical Report for Cerro las Minitas - More
- August 30, 2006 | Item | E-mail
Osisko Commences Metallurgical Testing Program at Canadian Malartic - More
- August 30, 2006 | Item | E-mail
NioGold intersects significant gold on the Marban Mine Block - More
- August 30, 2006 | Item | E-mail
Anglogold Ashanti Comments on Potential Power Shortage in Ghana - "AngloGold Ashanti has been advised in Ghana by the Volta River Authority (VRA) that it is possible that the company will be required to reduce its electrical power consumption, primarily due to water shortages impacting the VRA's power generating facilities. AngloGold Ashanti, as part of the local Chamber of Mines, is meeting with the VRA to examine means of addressing potential disruptions to power supply." More
- August 30, 2006 | Item | E-mail
Peruvian Gold Mine, Farmers Reach Accord - "Peru's presidential Cabinet chief, Jorge Del Castillo, announced the deal to lift the roadblock Wednesday and immediately resume gold production at the Yanacocha gold mine, majority owned by Denver-based Newmont Mining Corp." More
- August 30, 2006 | Item | E-mail
Newmont to Open Yanacocha Gold Mine as Roadblocks End - "The government will form a commission to mediate between Denver-based Newmont, the world's second-biggest gold producer, and local officials from the town of Combayo, 560 kilometers (350 miles) northwest of Lima, who are seeking more jobs and clean water, del Castillo said at a press conference in Lima. Clashes with police at the mine this month left one person dead and more than a dozen injured." More
- August 30, 2006 | Item | E-mail
- Chris Mullen, Gold Seeker Report
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-- Posted 30 August, 2006 | |
