-- Posted 6 September, 2006 | | Source: SilverSeek.com
| Close | Gain/Loss |
Gold | $633.40 | -$5.00 |
Silver | $13.03 | +$0.06 |
XAU | 150.18 | -1.06% |
HUI | 362.17 | -0.88% |
GDM | 1132.02 | -0.87% |
JSE Gold | 3190.27 | +3.63% |
USD | 85.14 | +0.13 |
Euro | 128.06 | -0.01 |
Yen | 85.72 | -0.50 |
Oil | $67.50 | -$1.10 |
10-Year | 4.801% | +0.020 |
T-Bond | 109.90625 | -0.21875 |
Dow | 11406.20 | -0.55% |
Nasdaq | 2167.84 | -1.72% |
S&P | 1300.26 | -0.99% |
The Metals:
Gold rose to over $640 in Asia but fell back near $635 by the open in London. After trading in a range of about $634 to $639 for most of trade in London and New York, it then fell off further in afternoon New York trade and ended near its lows with a loss of 0.78%. Silver traded mostly slightly lower in Asia and London and rose throughout most of morning trade in New York to over $13.15, but it then fell off in afternoon trade and ended with a gain of just 0.46%.
Euro gold fell under €495, platinum lost $2 to $1,260, palladium gained $2 to $351, and copper rose about 4 cents to over $3.60.
Gold and silver equities fell roughly 1% before they quickly rebounded to find about 1% gains, but they then steadily fell off throughout the rest of trade and ended near their lows with losses of about 1%.
The Economy:
Report | For | Reading | Expected | Previous |
Productivity | Q2 | 1.6% | 1.6% | 1.1% |
ISM Services | Aug | 57.0 | 55.0 | 54.8 |
Inflation worries were raised by the Labor Department’s report that noted “labor costs rose by 9 percent and they rose 4.9 percent in the April-June period, well ahead of the 3.8 percent gain economists had expected.” The fed’s Beige Book noted a slowing economy and pointed out that consumer spending “increased slowly.” This eased interest rate worries a bit for some aspects of the markets.
Tomorrow at 8:30AM EST brings Initial Jobless Claims for 9/02 expected at 315,000 and at 10AM are Wholesale Inventories for July expected at 0.7%.
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The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil fell throughout trade and ended near its lows on speculation over falling demand following the close of the summer driving season. Traders also prepared for tomorrow’s inventory reports and looked ahead to next week’s OPEC meeting which is expected to maintain current production levels. Also in the back of traders minds were possible developments with Iran and stormy weather in the Atlantic which may make its way to the U.S.
The U.S. dollar index rose and treasuries fell on inflation worries raised by this morning’s Productivity report that may influence the fed to continue to raise interest rates, but the dollar’s gains were cut and treasuries losses moderated following the release of the fed’s Beige Book.
The Dow, Nasdaq, and S&P dropped throughout trade on interest rate worries raised by the reported higher than expected labor costs. The indices did not get relief from the fed’s Beige Book or from the fact that oil ended over 1% lower.
Among the big names making news in the market today were the SEC, GM, BAE, Airbus, EADS, Heineken, Vivendi and BMG Music, and Hewlett-Packard.
The Commentary:
“The gold story is a simple one. It is about surging physical demand versus the ability of The Gold Cartel to suppress the price (see below) by coming up with available central bank supply. The Fixes this week have all been firm, culminating with today’s PM Fix of $637.75, which confirms superb physical buying is out there. And, of course, there was no "economic report" today emanating from Washington … which meant there were no specific instructions to keep gold from rising. Think about it. What was different today from Friday?
From a technical standpoint, gold has completed a bottom made over the summer. As mentioned last week, note how it rebuffed the $600+ area FOUR times and could not fill its breakaway gap above $600:
October gold
http://futures.tradingcharts.com/chart/GD/A6
Thus, from a technical standpoint, there is a great deal of built up strength to propel gold to much higher prices. In addition, gold blew out of its GIANT pennant formation (beginning in early May) this morning, which brought in a slew of buying.” - From yesterday’s Midas report by Bill Murphy of LemetropoleCafe.com
“The season of gold is underway. The Indian market has been good buyers of gold as the price has remained stable. Stockist are careful not to overstock, but realize the price will go higher. But then so do most potential buyers. Despite the lower oil price and steady $:€ rate, gold has jumped through resistance. Has the arrow been released from the bow? The fundamentals haven't changed!” - Julian D.W. Phillips, www.goldforecaster.com
“December Gold closed down 5.1 at 641.8. This was 0.8 up from the low and 5.2 off the high.
December Silver finished up 0.06 at 13.2, 0.15 off the high and 0.11 up from the low.
After failing to take out the prior days high, the December gold exhibited a bit of sustained profit taking. Certainly seeing the Dollar higher and the prospect for additional US rate hikes in the wake of the sharp rise in Unit labor costs boosted the Dollar and undermined gold. However, the Fed Beige Book wasn't exactly patently negative as the Fed suggested that some Districts were noting some slowing but that manufacturing activity generally continues to expand. However, the Fed did note that Energy and Metals prices remained at "elevated" levels and that might have been seen as a negative to gold and silver prices. In another potentially supportive statement from the Fed that was given little credence, the Fed suggested that consumer spending was still increasing slowly! In the end, the fear of higher rates and the fear of a higher Dollar simply reminded the gold market of its recently acquired overbought technical status.
While the silver market managed to outperform the gold market throughout the session Wednesday and in the process held above the prior day's closing value, many traders were talking up the idea of waning momentum. With the metals in general potentially undermined as a result of the renewed threat of labor cost inflation and the Fed suggesting in the Beige Book that there were some scattered worker shortages, the fear of higher interest rates is not to be downplayed. It is impressive that the silver market mostly ignored the sharp decline in the equity market but a series of additional declines in the stock market might not be taken as lightly ahead, especially if the trade keeps the talk of higher US interest rates in the headlines.” - The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
China's premier acknowledges foreign-exchange problem
Goldman Sachs acquires another key position at Treasury
Brazil's central bank keeps propping dollar up, pushing real down
The Statistics:
As of close of business: 09/05/2006
Gold Warehouse Stocks: | 7,932,503 | -47,934 |
Silver Warehouse Stocks: | 104,235,384 | - |
Global Gold ETF Holdings
[WGC Sponsored ETF’s]
| Product name | Total Tonnes | Total Ounces | Total Value |
New York Stock Exchange (NYSE) | Streettracks Gold Shares | 392.07 | 12,605,374 | US$ 8,036m |
LSE (London Stock Exchange) AND Euronext Paris | Gold Bullion Securities | 78.18 | 2,513,491 | US$ 1,591m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 9.78 | 313,985 | US$ 199m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 9.89 | 318,008 | US$ 199m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU)
Profile as of 09/05/2006 | |
Total Net Assets | $884,992,803 | Ounces of Gold
in Trust | 1,386,124.118 |
Shares Outstanding | 13,950,000 | Tonnes of Gold
in Trust | 43.11 |
Note: Change in Total Tonnes from yesterday’s data: 0.02 tonnes were removed from the trust.
Silver Trust (SLV)
Profile as of 09/05/2006 | |
Total Net Assets | $1,319,264,563 | Ounces of Silver
in Trust | 100,368,644 |
Shares Outstanding | 10,050,000 | Tonnes of Silver
in Trust | 3,121.8 |
Note: No change in Total Tonnes from yesterday’s data.
The Stocks:
Kinross Gold’s (KGC) share purchase of Verena (VML.V), Cumberland’s (CLG) drill results, Centerra Gold’s (CG.TO) production forecast revision, Gold Field’s (GFI) major capital investments in two gold mines, Fronteer’s (FRG) uranium intersection, NovaGold’s (NG) drill results, Ivanhoe’s (IVN) talks with the Mongolian government, and Kimber’s (KBX) August newsletter were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Orezone | OZN +5.70% $1.67 |
2. Meridian | MDG+5.07% $32.31 |
3. Richmont | RIC +3.92% $3.45 |
LOSERS
1. Cardero | CDY -6.03% $1.87 |
2. Tanzanian Royalty | TRE -5.25% $6.50 |
3. Lihir Gold | LIHRY -4.71% $47.17 |
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:
Starfire Minerals Inc. announces private placements of up to $1,500,000 - More
- September 06, 2006 | Item | E-mail
Michigan Gold Will Announce the Results of the Anita Mine Geological Report on September 12, 2006 - More
- September 06, 2006 | Item | E-mail
Carmax Explorations Ltd.: News Release - More
- September 06, 2006 | Item | E-mail
Etruscan identifies 8 major targets on Banfora gold belt in Burkina Faso - More
- September 06, 2006 | Item | E-mail
Nuinsco Comments on Recent Market Activity - More
- September 06, 2006 | Item | E-mail
Sea Green Capital Corp. Intersects 10 Metres of 4.86 G/T Au in Quebec - More
- September 06, 2006 | Item | E-mail
Inter-Citic Receives Results From 10 Drill Holes On Dachang East Area - More
- September 06, 2006 | Item | E-mail
Vangold Resources Ltd.: Mt Penck Assays Continue to Define Gold Mineralisation - More
- September 06, 2006 | Item | E-mail
Field Work Is Underway at Urique Project, Mexico - More
- September 06, 2006 | Item | E-mail
Maestro Announces Closing of Private Placement - More
- September 06, 2006 | Item | E-mail
Roxmark obtains all necessary permits for 2006 molybdenum bulk sampling and milling - More
- September 06, 2006 | Item | E-mail
Kinross to Purchase 7,000,000 Shares of Verena @ $0.30 per Share and Options Verena's Patrocinio Project - "Verena Minerals Corporation is pleased to announce that it has entered into a letter agreement with Kinross Gold Corporation whereby Kinross has agreed to subscribe for 7,000,000 common shares at $0.30 per share for an aggregate purchase price of $2,100,000 representing 8.7% of Verena's issued and outstanding common shares." More
- September 06, 2006 | Item | E-mail
Jasper Mining Corporation announces airborne geophysical results from Storm King property - More
- September 06, 2006 | Item | E-mail
Sacre-Coeur Minerals Reports Peaceful Conclusion to Guyana's National Election; Incumbent President Jagdeo Re-Elected - More
- September 06, 2006 | Item | E-mail
Acero-Martin Exploration Inc.: Up to 46.5 g/t Gold from New Mineralized Zone Discovered at Pinaya, Peru - More
- September 06, 2006 | Item | E-mail
New World Resource Corp.: Ground Magnetic Survey Completed at Long Valley Project, Nevada - More
- September 06, 2006 | Item | E-mail
Asia Gold Reports Encouraging Drill Results From Tashlaka Hill, Bulgaria - More
- September 06, 2006 | Item | E-mail
Drilling Suspended at Ocelot Gold Project - More
- September 06, 2006 | Item | E-mail
Cash Minerals to Host Conference Call to Discuss Uranium Drill Results at Lumina - More
- September 06, 2006 | Item | E-mail
GREAT WEST GOLD, INC. - CORPORATE UPDATE - More
- September 06, 2006 | Item | E-mail
Diadem Makes Further Duquesne West Instalment Payment And Drilling Program Continues - More
- September 06, 2006 | Item | E-mail
Cash Minerals Intersects Over 27 Metres '88 Feet' of 0.20% Uranium Oxide 'U3o8' in Phase One Drilling at the Lumina Property - More
- September 06, 2006 | Item | E-mail
Nevada Royalties valued at US$24.9 million - More
- September 06, 2006 | Item | E-mail
Copper Fox Metals Inc. Announces First Assay Results of 2006 Drilling Program and the Discovery of a New High Grade Gold Zone with 19.5 g/t over 15.1 m - More
- September 06, 2006 | Item | E-mail
Copper Mineralization Discovered in Drill Intercepts at Callinan's Coles Creek Property - More
- September 06, 2006 | Item | E-mail
Franconia Receives Updated 43-101 Resource Estimate on Birch Lake & Maturi Copper-Nickel-PGM Resources - More
- September 06, 2006 | Item | E-mail
Consolidated Spire's Prospect Valley Drilling Project Intersects 45.7m of 1.57g/t Gold - More
- September 06, 2006 | Item | E-mail
Tamija Gold & Diamond Exploration Receives Central African Republic Reconnaisance License - More
- September 06, 2006 | Item | E-mail
Typhoon Inaugurates "The 1 Ounce Gold Bar Give Away" - More
- September 06, 2006 | Item | E-mail
Rocmec Mining Inc.: Granada Mill Pours its First 5.7 Kg Gold Button - More
- September 06, 2006 | Item | E-mail
Additional High Grade Gold Results from Underground Drilling Expand Natividad Potential - More
- September 06, 2006 | Item | E-mail
Colorado Uranium / Vanadium Claims Acquired - More
- September 06, 2006 | Item | E-mail
Nortec announces the Start of Helicopter-borne TDEM Geophysical Surveys, on the Koillismaa-Naranka Nickel-Copper-PGE Project, Northeastern Finland - More
- September 06, 2006 | Item | E-mail
Altius and JNR Resume Uranium Exploration at Rocky Brook - More
- September 06, 2006 | Item | E-mail
One Half a Kilometer Northwest of Previously Reported Tunnel Domo Samples Cut on Average 10.3 gpt Gold and 58.8 gpt Silver - More
- September 06, 2006 | Item | E-mail
SearchGold Defines a Kilometer-Size Gold Anomaly on Mandiana in Guinea, West Africa - More
- September 06, 2006 | Item | E-mail
Arianne Discovers a New Gold Sedimentary Horizon by Drilling, Intersects Visible Gold '31.44 G/T Au On 2.6 M' and Confirms the Presence of a Gold Corridor - More
- September 06, 2006 | Item | E-mail
EXMIN Discovers Second High-Grade Gold Target at 100% Reyna Project in the Sierra Madre Gold Belt of Chihuahua, Mexico - More
- September 06, 2006 | Item | E-mail
Columbia Signs Second Development Agreement with BioteQ - More
- September 06, 2006 | Item | E-mail
Beaufield Updates Its Summer Exploration Program - More
- September 06, 2006 | Item | E-mail
Atna Commences Drilling at Jarbidge, Nevada - More
- September 06, 2006 | Item | E-mail
North Star Diamonds Inc. announces obtaining rights to explore for gold - More
- September 06, 2006 | Item | E-mail
Osisko Intersects 162 Metres Averaging 1.66 g/t Au at Canadian Malartic - More
- September 06, 2006 | Item | E-mail
Michael Doolan Appointed to GBS Gold Board - More
- September 06, 2006 | Item | E-mail
Aura Gold Inc. Provides an Update of Brazilian Exploration Activities - More
- September 06, 2006 | Item | E-mail
Trenching Identifies Diamond Drilling Targets at Mamay - More
- September 06, 2006 | Item | E-mail
Tiberon announces increased production and updated capital costs/ timeline for the Nui Phao project - More
- September 06, 2006 | Item | E-mail
Everton Announces More High-Grade Gold Showings up to 75.79 g/t on the Manuel Showing and up to 14.51 g/t on Wildcat 2, in the Opinaca Region, James Bay, Quebec - More
- September 06, 2006 | Item | E-mail
Midlands Minerals Corporation Finalizes Acquisition of Open Pit Gold Mine in Ghana - More
- September 06, 2006 | Item | E-mail
Globex Receives Payments While Exploration Continues - More
- September 06, 2006 | Item | E-mail
Drilling Commences on Miranda's Red Hill Property - More
- September 06, 2006 | Item | E-mail
Sunridge Gold Intercepts 84.50 Metres of 2.69% Copper at Emba Derho - More
- September 06, 2006 | Item | E-mail
Corriente Resources Inc. Corporate Update-September 06, 2006 - More
- September 06, 2006 | Item | E-mail
Marifil Advances San Roque Gold-Silver Project - More
- September 06, 2006 | Item | E-mail
Franklin Mining, Inc. Is Positioning for Fourth Quarter Growth - More
- September 06, 2006 | Item | E-mail
Register your Silverado shares now to win one of six gold nuggets - More
- September 06, 2006 | Item | E-mail
BioteQ Signs Development Agreement for Second Mexico Project - More
- September 06, 2006 | Item | E-mail
Open Letter to U.S. Gold shareholders - More
- September 06, 2006 | Item | E-mail
Cumberland Reports on Recent Drill Results from Meadowbank Gold Project; Improved Outlook for Cannu Zone as Drilling Continues - "CUMBERLAND RESOURCES LTD. is pleased to report results from ongoing exploration drilling at the Company's 100% owned Meadowbank gold project located 70 kilometres north of the Hamlet of Baker Lake, Nunavut. Meadowbank is host to Canada's largest pure gold open pit reserves with gold reserves estimated at 2.9 million ounces(1). On August 31st, 2006, the Company received a positive recommendation from the Nunavut Impact Review Board that development of Meadowbank should proceed." More
- September 06, 2006 | Item | E-mail
Centerra Gold Announces Revised 2007 Production Forecast of 440,000 to 475,000 Ounces for Kumtor Mine - "Centerra Gold Inc. reported today that it has completed its assessment of the impact of the previously announced July pit wall movement at its Kumtor mine in the Kyrgyz Republic. It now expects to produce 440,000 to 475,000 ounces of gold in 2007 at Kumtor, rather than 533,000 ounces as forecast earlier this year. Gold reserves are unchanged by the pit wall movement as the affected area lies entirely within the ultimate pit design." More
- September 06, 2006 | Item | E-mail
Gold Fields to Announce Major Capital Investments at Kloof and Driefontein Gold Mines - "Gold Fields Limited will announce the details of the proposed depth extension projects at the Kloof and Driefontein Gold Mines in South Africa at 08:00 am (SA time) on Thursday, 7 September 2006." More
- September 06, 2006 | Item | E-mail
Fronteer's Aurora Intersects Thick Zone of Near-Surface Uranium at Jacques Lake, Labrador - "Fronteer Development Group Inc. announces that Aurora Energy Resources Inc. in which Fronteer holds a 49.3% interest, has released the results from three recent drill holes at the Jacques Lake deposit. These holes intersected a thick new zone of near-surface uranium mineralization, confirming the potential for Jacques Lake to host a deposit similar in size and shape to Michelin." More
- September 06, 2006 | Item | E-mail
Pediment Exploration Ltd.: Drill Testing Started at Lista Blanca Copper-Gold Target - More
- September 06, 2006 | Item | E-mail
NovaGold Drill Campaign at Galore Creek Continues to Expand Deposits - "NovaGold has received strong initial drill results from the 2006 resource expansion and exploration drilling program. Results from this year's drilling will significantly to the resource base at the Galore Creek deposit. A further resource update incorporating as much of the new drill results as are available is targeted in the next few weeks. Four rigs are currently drilling on site, and a fifth is being mobilized to the project." More
- September 06, 2006 | Item | E-mail
Mongolian Government Establishes a Working Group to Address Investment Agreement for Ivanhoe Oyu Tolgoi Copper and Gold Project - "John Macken, President and CEO of Ivanhoe Mines, announced today that the Mongolian Government has established a working group to work with Ivanhoe on a formal, 30-year Investment Agreement that will confirm a tax, fiscal and legal framework for the development of the Oyu Tolgoi copper-gold mine in Mongolia's South Gobi region." More
- September 06, 2006 | Item | E-mail
Kimber Resources Inc. - Newsletter for August - "Two reverse circulation (RC) and one core rig continue to operate 24 hours/day on a 20 days on, 10 days off rotation. As mentioned in the July newsletter, drilling at Carmen is focused on specific parts of the deposit where the deposit limits have not yet been located or in areas where infill drilling will move Inferred Resources to Measured & Indicated." More
- September 06, 2006 | Item | E-mail
- Chris Mullen, Gold Seeker Report
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-- Posted 6 September, 2006 | |
