Gold rose to over $636 in late Asian trade before it fell back near unchanged in London and began to fall off further in late London trade.It then continued to drop for the next 3 hours in New York and fell to as low as $614 before it rebounded slightly into the close, but it still ended with a loss of 2.42%.Silver rose to about $13.10 in Asia and London before it began to fall off in late London trade and continued to fall throughout most of trade in New York to end with a loss of 3.61%.
Euro gold fell under €485, platinum lost $20 to $1,240, palladium lost $7 to $344, and copper fell slightly, but held above $3.60.
Gold and silver equities dropped about 2% at the open, fell another 1% in the next hour of trade, and then hovered with about 3% losses for most of the rest of trade before they fell even further in the last minutes of trade to end nearly 4% lower.
The Economy:
Report
For
Reading
Expected
Previous
Initial Claims
9/02
310K
315K
319K
Wholesale Inventories
July
0.8%
0.7%
0.8%
Fed voting member Yellen spoke late in the day and noted that the expected slowdown in the economy has arrived and said that inflation pressures are elevated, but that they may come down faster than some expect.She also noted that the fed must have a bias toward further rate hikes. Tomorrow at 3PM is Consumer Credit for July expected at $6.5 billion.
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Oil traded slightly higher ahead of inventory reports which showed that crude inventories fell 2.2 million barrels, gasoline inventories built 700,000 barrels, distillates built 3.1 million barrels, and natural gas stocks built 71 billion cubic feet.Crude inventories fell more than most expected, but a surprise build in gasoline inventories pushed energy prices to a 5 month low as there was no news on hurricanes, Iran, or anything else to ignite supply worries.
The U.S. dollar fell versus the yen as a German official noted that G-7 will be discussing the yen’s weakness at their meeting next week, but the dollar index gained overall on continued inflation worries in the U.S. that raise the possibility of further interest rate increases by the fed.
Treasuries fell in early trade on inflation worries, but they soon rose to find slight gains in anticipation of Yellen’s comments about the economy that unexpectedly came in more hawkish than normal for her.However, treasuries still ended slightly higher.
The Dow, Nasdaq, and S&P fell after several homebuilder warnings raised fears that the economy may be slowing faster than previously expected.The warnings may indicate a hard landing, or a recession or worse, rather than a soft landing from previous high growth that had influenced the fed to raise interest rates.
Among the big names making news in the market today were Beazer Homes, BP, Palm, New Oriental, Alliant, Wal-Mart, Nasdaq, KB, Hovnanian, Sportingbet, and Ford.
The Commentary:
“One of the knocks over the years I have heard is MIDAS blaming gold’s demise on a daily basis always to the activities of The Gold Cartel, which is just the way I see it most of the time. Most of those people who don’t get it have NEVER traded a futures contract in their lives. What they don’t realize is The Gold Cartel “sets the stage,” or at least tries to. They don’t need to do the selling if they can influence the specs to do it for them. Often the cabal crowd are the BUYERS on big market down days as they have set up the technicals (moving averages, etc.) to influence the funds to sell.
Why get into this today? I see silver, copper, platinum, and palladium all to the upside this morning with gold getting hit. Why? Oh I see, another financial report surfaced which was gold friendly. For the 76th time out of the last 77 US economic reports released out of Washington, gold reacted in counterintuitive fashion … perhaps more aptly put as forced to go down …” - From yesterday’s Midas report byBill Murphy of LemetropoleCafe.com
“December Gold closed down 16.9 at 624.9. This was 3.9 up from the low and 12.6 off the high.
December Silver finished down 0.505 at 12.695, 0.285 off the high and 0.185 up from the low.
The massive slide in gold prices on Thursday apparently un-nerved a number of players and it initially seemed like the main source behind the selling was the upside breakout in the Dollar. However, the market was also tossing around the idea that a more aggressive US Fed might prompt too much slowing and perhaps even a recession. In the wake of the Fed speech it seems like the Dollar seemed to get an additional lift and that might leave the Dollar sitting right on the back of the bulls in the gold market. In a partially helpful flow of dialogue from the Fed's Yellen she did suggest that the US economy appears to have healthy growth even if the growth rate is below the recent trend. In short, the big slide in the equity market early in the session contributed to the bearish psychology in the gold market and later in the session after the Fed speech was floated the stock market gave ground again and that could put the gold market back into the same position Friday morning as was seen Thursday afternoon.
The silver market did manage to recoil away from the major losses seen early in the session but with the gold market finishing poorly, the stock market fearful of more US slowing and the Dollar apparently keeping currency pressure on all the metals markets one can't definitively suggest that the bear track has run its course. With the Fed generally hinting at more rate hikes ahead, many traders are fearful of slowing physical demand and perhaps even a bit concerned about over tightening and a recession. With more depressing housing forecasts floated on Thursday there is certainly justification for the selling activity but the question becomes has the deterioration in the economy outlook run its course or is it still worsening.” - The Hightower Report,Futures Analysis and Forecasting
The Statistics:
As of close of business: 09/6/2006
Gold Warehouse Stocks:
7,832,571
-99,932
Silver Warehouse Stocks:
104,209,990
-25,394
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$ 8,006m
LSE (London Stock Exchange) AND Euronext Paris
Gold Bullion Securities
78.18
2,513,464
US$ 1,553m
Australian Stock Exchange (ASX)
Gold Bullion Securities
9.78
313,982
US$ 194m
Johannesburg Securities Exchange (JSE)
New Gold Debentures
9.89
318,001
US$ 202m
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU)
Profile as of 09/06/2006
Total Net Assets
$878,052,484
Ounces of Gold in Trust
1,386,124.118
Shares Outstanding
13,950,000
Tonnes of Gold in Trust
43.11
Note: No change in Total Tonnes from yesterday’s data.
Silver Trust (SLV)
Profile as of 09/06/2006
Total Net Assets
$1,312,107,659
Ounces of Silver in Trust
101,329,214
Shares Outstanding
10,150,000
Tonnes of Silver in Trust
3,151.7
Note: Change in Total Tonnes from yesterday’s data: 29.9 ounces were added to the trust.
The Stocks:
Richmont’s (RIC) mill start up, Bema Gold’s (BGO) C$132 bought deal financing closing, Fronteer’s (FRG) $10 million private placement in Aurora, Glencairn’s (GLE) acquired gold property, Aurizon Mines (AZK) drill results, Great Basin’s (GBN) prospecting rights, Banro’s (BAA) increased and upgraded reserves, Gold Field’s (GFI) R4.7 billion investment to deepen 2 mines in South Africa, and First Majestic’s silver mine update were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1.Cumberland
CLG +4.08% $5.87
2.Ivanhoe
IVN +3.02% $6.48
3.Gold Reserve
GRZ+2.09% $4.88
LOSERS
1.Vista Gold
VGZ -7.66% $12.19
2.Silver Wheaton
SLW -7.09% $11.00
3.Arizona Star
AZS -6.64% $10.41
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 to Purchase Additional Properties in Marmato Mountain Gold District From AngloGold Ashanti - More - September 07, 2006 | Item | E-mail
Richmont Mines and Patricia Mining Announce the Mill Start Up at the Island Gold Project - "The mill will initially begin operations, at a rate of 500 tonnes per day to process a surface stockpile of approximately 30,000 tonnes of mineralized material from underground development and test mining. Technical parameters and metallurgical results as to gold recovery, gold grade reconciliation, milling costs and production rate will be integrated in a NI 43-101 compliant technical report anticipated to be filed at the end of November 2006." More - September 07, 2006 | Item | E-mail
Bema Gold Corporation: CDN$132 Million Bought Deal Financing Closes - "Bema Gold Corporation is pleased to announce that it has closed the previously announced bought deal financing with a syndicate of investment dealers (collectively, the "Underwriters"). As a result, Bema issued 18,400,000 units ("Units") at Cdn$6.25 per Unit for aggregate gross proceeds of Cdn$115,000,000." More - September 07, 2006 | Item | E-mail
Copper Fox Metals Inc. announces the engagement of Jason Shepherd to assist with marketing and investor communications. - More - September 07, 2006 | Item | E-mail
HE-5 Resources, Corp. in Negotiations to Acquire Mining Claims Near Overman Property - More - September 07, 2006 | Item | E-mail
/C O R R E C T I O N -- Stillwater Mining Company/ - More - September 07, 2006 | Item | E-mail
Newmont Mining Slips - "Stephen Walker, an analyst with RBC Capital Markets, told clients in a note Thursday that issues at Newmont's new Leeville, Nev., mine and the company's struggle to contain costs in lower-grade ore mines in that state may hinder the company's stock in the coming months. He downgraded Newmont shares to "Sector Perform" from "Outperform" and cut his price target to $67 from $71." More - September 07, 2006 | Item | E-mail
Franklin Mining Announces Program to Fund Tailings Program and Establish Ten Plants - More - September 07, 2006 | Item | E-mail
Asia Now Driving Adits on Habo Copper-Gold Porphyry in Yunnan, China - More - September 07, 2006 | Item | E-mail
Stillwater Mining Company Anticipates Reopening of East Boulder Mine on Friday - More - September 07, 2006 | Item | E-mail
Royal Standard Minerals Inc.: Progress at Goldwedge Project - More - September 07, 2006 | Item | E-mail
Big Bar outlines geology highlights of its Phase 1 drilling program at Yuma King - More - September 07, 2006 | Item | E-mail
Update on Jon Copper gold property - More - September 07, 2006 | Item | E-mail
Drilling Intersects High Grade Gold within 1,200-Metre Long Structure at Pele Mountain's Highland Project - More - September 07, 2006 | Item | E-mail
Melkior Updates Exploration - More - September 07, 2006 | Item | E-mail
Sur American Gold Corporation: Batoto#6 Drill Hole Returns 91 Metres of Strong Gold Mineralization - More - September 07, 2006 | Item | E-mail
Acquisition of Whirlwind Mine with historical resource and mining permit - More - September 07, 2006 | Item | E-mail
Erdene's Drilling Confirms Extensive Gold-Mineralized System at Tsenkher Gol - More - September 07, 2006 | Item | E-mail
Goldbelt continues to uncover excellent results from Inata - More - September 07, 2006 | Item | E-mail
Solitario Updates Status of Its Investment in Crown Resources - More - September 07, 2006 | Item | E-mail
Lincoln Gold to Fly Guadalupe y Calvo District, Mexico - More - September 07, 2006 | Item | E-mail
Freewest Commences Airborne Geophysical Survey and Ground Follow-Up Prospecting Program on George River Uranium Property - More - September 07, 2006 | Item | E-mail
SLAM Exploration announces new copper-lead-zinc-silver discovery - More - September 07, 2006 | Item | E-mail
Azco Mining Raises Additional $1M in Private Offering - More - September 07, 2006 | Item | E-mail
Magnus International Resources, Inc.: Huidong Exploration Progress Update-Encouraging Alteration and Mineralization at Dingjiaping Target Area - More - September 07, 2006 | Item | E-mail
Capital Gold Announces Increase in Estimated Gold Reserves at El Chanate, Sonora, Mexico - More - September 07, 2006 | Item | E-mail
First Majestic Resource Corp.: Dios Padre Silver Mine Update - "The program consisted of 17 diamond drill holes totalling 2216 meters, review of historical geological data, mapping and resource definition. In addition, a geologic survey of the 285 hectare property surrounding the main mine area was completed to evaluate four different geologic anomalies to determine the possibility of the existence of other mineralized bodies that may increase the potential of the project." More - September 07, 2006 | Item | E-mail
North American Palladium Ltd. Appoints Vice President of Operations - More - September 07, 2006 | Item | E-mail
Cusac Signs Memorandum with Dease River First Nation Regarding Kaska Traditional Territory - More - September 07, 2006 | Item | E-mail
Tara Gold Receives Las Minitas NI 43-101 Technical Report - More - September 07, 2006 | Item | E-mail
O.T. Prepares to Drill Test High-Grade Gold and Silver Targets - More - September 07, 2006 | Item | E-mail
Alexis Returns 9.43 Grams Gold Over 12.0 Meters in Lac Pelletier Drilling-Zone 4 Potential Expanded - More - September 07, 2006 | Item | E-mail
Apogee Intersects High Grade Silver Mineralization at Pulacayo Silver Project - More - September 07, 2006 | Item | E-mail
Largo Intercepts 232.9 Meter Molybdenum-Tungsten Zone at its Northern Dancer Project, Yukon - More - September 07, 2006 | Item | E-mail
Corriente Resources Inc.: Drilling Extends Panantza Copper Mineralization, Ecuador - More - September 07, 2006 | Item | E-mail
Mineral Reserves Increase to 1 Million Ounces at the Mana Project and 428,000 Ounces at the Kiniero Mine - More - September 07, 2006 | Item | E-mail
Grand Pacaraima Commencing Discussions With Canadian Mining Concern - More - September 07, 2006 | Item | E-mail
Itronics Reports 89% Increase in GOLD'n GRO Fertilizer Sales; 200% Increase in Silver Sales as Third Quarter Progresses - More - September 07, 2006 | Item | E-mail
Fronteer Subscribes for $10 Million Private Placement in Aurora - "We strongly believe that Aurora controls an emerging world-class uranium district," says Dr. Mark O'Dea, President and CEO of Fronteer. "Our participation in this financing reflects our long term commitment to Aurora and our belief in the successful expansion and development of its uranium assets." More - September 07, 2006 | Item | E-mail
Glencairn Acquires Mestiza Gold Property; Studies Potential to Ship Ore to Limon - "The property represents a key block of ground covering approximately half the strike length of a 2.4-kilometre-long, gold-bearing structure known as the Tatiana Vein. The remainder of the Tatiana Vein is on the La India property already held by Glencairn. Along half its strike length, including the Mestiza portion, the Tatiana Vein hosts an inferred resource of 689,700 tonnes grading 10.3 grams per tonne gold containing 228,000 ounces of gold. The deposit is open in both directions, and at depth. Glencairn has agreed to pay the Mestiza Property owners approximately $2.4 million over 42 months." More - September 07, 2006 | Item | E-mail
Aurizon Mines Ltd.: Additional Encouraging Results from Defintion Drilling at Casa Berardi-On Schedule for November Start Up - "The completion of definition drilling of Zone 113, along two additional levels, confirms that the initial gold production from Casa Berardi should exceed that outlined in the current mine plan." said David Hall, President and CEO of Aurizon. "Casa Berardi remains on schedule and on budget to commence gold production in approximately 10 weeks' time, despite unscheduled interruptions and distractions. We anticipate that Aurizon shareholders will benefit not only from strong gold prices, but also from higher initial gold production. Aurizon is poised to realize the re-rating associated with producing companies." More - September 07, 2006 | Item | E-mail
Great Basin Receives Prospecting Rights and Commences Underground Development of Burnstone Mine - "Great Basin Gold Ltd. announces that the Department of Minerals and Energy (DME) has recently granted its wholly owned subsidiary, Southgold Exploration (Proprietary) Limited, two prospecting rights for its Burnstone Gold Property, located near Balfour, South Africa. Work has also commenced on construction of the mine access decline at Burnstone." More - September 07, 2006 | Item | E-mail
Banro increases and upgrades mineral resources at Namoya - "Banro Corporation is pleased to announce an updated mineral resource estimate at its wholly-owned Namoya project of 691,000 ounces of gold (7,386,000 tonnes grading 2.91 g/t Au) in the Indicated Mineral Resource category and 583,000 ounces of gold (4,829,000 tonnes grading 3.76 g/t Au) in the Inferred Mineral Resource category." More - September 07, 2006 | Item | E-mail
Gold Fields to Invest R4.7 Billion in South Africa - "Gold Fields Limited is pleased to announce that it will invest R4.7 billion in the deepening of the Driefontein and Kloof Gold Mines in South Africa, the Company's flagship operations." More - September 07, 2006 | Item | E-mail
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“One of the knocks over the years I have heard is MIDAS blaming gold’s demise on a daily basis always to the activities of The Gold Cartel, which is just the way I see it most of the time. Most of those people who don’t get it have NEVER traded a futures contract in their lives. What they don’t realize is The Gold Cartel “sets the stage,” or at least tries to. They don’t need to do the selling if they can influence the specs to do it for them. Often the cabal crowd are the BUYERS on big market down days as they have set up the technicals (moving averages, etc.) to influence the funds to sell.
