Gold fell near $572 in early Asian trade before it rebounded a bit and held close to $577 in London, but it then fell back under $572 in midmorning New York trade ahead of a rally into the close that produced small gains near the close until it fell back off in the last minutes of trade and ended slightly lower.Silver traded mostly slightly lower in Asia and London and fell to under $10.50 in midmorning New York trade, but it also rallied in late trade to find decent gains before it was hit at the close and ended slightly lower.
Euro gold held near €455, platinum lost $16 to $1,153, palladium lost $11 to $309, and copper fell a couple cents to about $3.33.
Gold and silver equities fell over 1% at the open, but they quickly rebounded to trade slightly higher for most of the rest of the trade and closed with about 0.5% gains.
The Economy:
Report
For
Reading
Expected
Previous
CPI
Aug
0.2%
0.2%
0.4%
Core CPI
Aug
0.2%
0.2%
0.2%
NY EmpireState Index
Sep
13.8
14.0
11.0
Capacity Utilization
Aug
82.4%
82.5%
82.7%
Industrial Production
Aug
-0.1%
0.2%
0.4%
Michigan Sentiment
Sep
84.4
83.5
82.0
Wall Street cheered CPI data that came in as expected on a monthly basis, but they seemed to ignore year over year core inflation that came in at 2.8% which is the highest in over 10 years.
Next week’s economic highlights include the Current Account and Net Foreign Purchases on Monday, PPI, Building Permits, and Housing Starts on Tuesday, the FOMC policy statement on Wednesday, and Initial Jobless Claims, Leading Economic Indicators, and the Philadelphia Fed survey on Thursday.
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Oil traded mostly slightly lower after OPEC lowered its demand forecast, but it then rallied in late trade and ended a bit higher on news of an attempted attack on oil facilities in Yemen.
The U.S. dollar index rose despite tame inflation data that reduced chances for further interest rate hikes by the fed.Most traders seemed to be preparing and positioning themselves for possible announcements from the G-7 meeting over the weekend that may or may not strongly encourage exchange rate flexibility in Asia.
Treasuries rose in early trade on tame monthly inflation, but they then fell off to find small losses after fed President Thomas Hoenig stated that the U.S. economy was not at risk of recession.
The Dow, Nasdaq, and S&P trade steadily higher on tame inflation data.All three indices ended off their highs of the session, but they still ended at new 4 month closing highs.
Among the big names making news in the market today were News Corp., DirecTV, Liberty, Daimler Chrysler, Ford, Dynegy and LS Power, and Adobe.
The Commentary:
“It is a well known fact that relatively few investors really make big money on the big market moves. Most are shaken out for one reason or another. They become exhausted and exit the picture, or for one reason or another, decide to jump into something else in the short term, and never get back into what they were doing (gold and silver share investing) in the first place. From what I can tell via feedback coming my way, a lot of disengagement from the gold and silver scene is occurring right now.
Having watched this recurring loss of faith and interest over the last five years, I can only shake my head with a big smile on my face.
The gold and silver moves since Labor Day are all about the coming US elections. Nothing we can do about it except wait it out. For those in despair mode, just review the gold chart and look what the price did beginning in early July through mid-July. Times can change very quickly in this business.” - From yesterday’s Midas report byBill Murphy of LemetropoleCafe.com
“December Gold finished down 3 at 583, 5.5 off the high and 6.4 up from the low.
December Silver closed down 0.075 at 10.875. This was 0.325 up from the low and
0.175 of the high.
While the Press continued to carry periodic predictions of a bottoming in gold prices, the fact of the matter is that outside market conditions have remained generally bearish toward prices. With the Dollar breaking out of the upside, inflation readings muted, US Industrial production readings weak and oil prices still mostly weak there are several reasons to be bearish toward prices. In fact, with the exception of attempt to rally equity prices, the outlook would seem to be for slowing growth and declining inflation. In fact, the Fed's Hoenig suggested that growth was slowing and inflation was expected to soften and that seemed to embolden the bear camp throughout the session Friday. However, the gold market was able to periodically reject the selling interest and that seemed to dredge up the idea that the gold market was simply oversold technically around the lows Friday morning. On the other hand, the classic gold market fundamentals wouldn't seem to hold out much hope for the bull camp.
While it sounds like a broken record, the silver market continues to be presented with a host of bearish outside market forces. Aggressive selling in copper, weakness in gold prices and strength in the Dollar and that is a pretty broad based negative collection of outside forces. With recent signs of rising physical supplies, slackening investment interest in silver and the presence of a general commodity liquidation wave would seem to leave the silver market vulnerable to more selling ahead. However, from the sharp recovery bounce off the morning lows on Friday morning it seems like the market reached a dramatically overdone technical condition. While the strength in the US equity market Friday morning would seem to lend some support to silver prices, the fact that scheduled economic reading were soft from the US, simply mitigates the idea that the equity market gains are signaling a recovery ahead.” - The Hightower Report,Futures Analysis and Forecasting
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU)
Profile as of 09/14/2006
Total Net Assets
$802,850,961
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 09/14/2006
Total Net Assets
$1,172,504,102
Ounces of Silver in Trust
103,325,607
Shares Outstanding
10,350,000
Tonnes of Silver in Trust
3,213.8
Note: No change in Total Tonnes from yesterday’s data.
The Stocks:
NovaGold’s litigation against Barrick (ABX), Ivanhoe’s (IVN) welcomed support in Mongolia, and Meridian’s (MDG) acquisition were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1.Entree Gold
EGI +6.25% $1.02
2.Cardero
CDY +5.59% $1.51
3.Yamana
AUY+5.04% $10.00
LOSERS
1.Eldorado Gold
EGO -7.11% $4.18
2.Tanzanian Royalty
TRE -5.99% $4.55
3.Banro
BAA -3.39% $7.40
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:
NovaGold's Litigation Against Barrick Continues in Alaskan Court - "The U.S. District Court in Alaska last night issued an Order declining to expedite the Court's consideration of motions made by NovaGold and Barrick. The Court did not dismiss NovaGold's claims and did not deny NovaGold's motion to accelerate the declaratory judgment claim regarding the ownership of Donlin Creek. As a result, the litigation will continue." More - September 15, 2006 | Item | E-mail
PMI Gold Corporation - Notice of warrant extension - More - September 15, 2006 | Item | E-mail
Golden Arch Arranges $800,000.00 Private Placement - More - September 15, 2006 | Item | E-mail
Beeston acquires mining properties - More - September 15, 2006 | Item | E-mail
Mexivada Subsidiary Awarded Exclusive Malambani Research Permit in Republic of Congo (Brazzaville); Mayoko Gold-Diamond Exploration Program Started - More - September 15, 2006 | Item | E-mail
Golden Arch Arranges $800,000.00 Private Placement - More - September 15, 2006 | Item | E-mail
Amendment to Option and Royalty Agreement on MaunLake Mineral Claims - More - September 15, 2006 | Item | E-mail
StrataGold makes new discovery at Tassawini, Guyana - More - September 15, 2006 | Item | E-mail
St Andrew Closes $21.1 Million Private Placement - More - September 15, 2006 | Item | E-mail
Wineco Productions, Inc. to Begin Micron Gold Extraction From Tailings - More - September 15, 2006 | Item | E-mail
EXMIN/Hochschild JV Drill Deep at the Moris Mine; Due Diligence Update - More - September 15, 2006 | Item | E-mail
Palladon Announces Management Changes - More - September 15, 2006 | Item | E-mail
Chariot Provides Update on Metallurgical Tests - More - September 15, 2006 | Item | E-mail
Golden Eagle's CEO to Meet with His Excellency Evo Morales, President of the Republic of Bolivia - More - September 15, 2006 | Item | E-mail
GWR Resources Arranges $3,000,000 Private Placement - More - September 15, 2006 | Item | E-mail
Abacus Drills 291 Metres of 0.47% Copper and 0.52 g/t Gold; Expands both Ajax West and Ajax East Zones - More - September 15, 2006 | Item | E-mail
Court Denies NovaGold's Motions for Expedited Hearing - "Barrick Gold Corporation announced that by Order of the Honorable Timothy M. Burgess, United States District Court Judge for the District of Alaska, given on September 14, 2006, the Alaskan Court has denied a series of motions filed by NovaGold Resources Inc. on September 13, 2006 requesting an expedited hearing on its claim relating to Barrick's right to earn a 70% interest in the Donlin Creek project. The Court had already concluded earlier on September 13 that NovaGold's shareholders have been fully informed of the nature of the dispute between Barrick and NovaGold and have sufficient information to determine whether they should tender their shares." More - September 15, 2006 | Item | E-mail
Ivanhoe Mines welcomes expressions of Mongolian support for early approval of Oyu Tolgoi copper-gold project - "John Macken, President and CEO of Ivanhoe Mines, today welcomed expressions of support, made at an international investors' conference, for early approval of the company's planned Oyu Tolgoi copper-gold mine development project the South Gobi region of Mongolia." More - September 15, 2006 | Item | E-mail
Meridian Gold Announces Acquisition of Controlling Interest in Jeronimo Mine - "ADLF's properties, located 50 kilometers southeast of El Salvador in the Third Region of Northern Chile, encompass over 240 km(2) and include the El Hueso, Coya and Agua de la Falda mines that produced over 660,000 gold ounces for Homestake Mining Company between 1988 and 2002. The Jeronimo Deposit is the downdip extension of the Agua de la Falda deposit and is estimated to contain up to 16.6 million tonnes of potential ore at a gold grade of 5.2 grams per tonne for a contained resource of at least 2.8 million ounces of gold. The potential mineral body is largely unoxidized and will require further metallurgical testing to determine the proper processing techniques to liberate the gold in a production environment. There is an existing scoping study on the property and as part of the agreement; Meridian will be required to prepare the feasibility study of the Jeronimo Deposit." More - September 15, 2006 | Item | E-mail
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“It is a well known fact that relatively few investors really make big money on the big market moves. Most are shaken out for one reason or another. They become exhausted and exit the picture, or for one reason or another, decide to jump into something else in the short term, and never get back into what they were doing (gold and silver share investing) in the first place. From what I can tell via feedback coming my way, a lot of disengagement from the gold and silver scene is occurring right now.
