-- Posted 27 September, 2006 | | Source: SilverSeek.com
| Close | Gain/Loss |
Gold | $597.60 | +$6.50 |
Silver | $11.57 | +$0.21 |
XAU | 130.68 | +1.51% |
HUI | 305.67 | +1.89% |
GDM | 984.89 | +1.98% |
JSE Gold | 2844.24 | +0.67% |
USD | 85.68 | -0.04 |
Euro | 127.04 | +0.13 |
Yen | 85.07 | -0.29 |
Oil | $62.96 | +$1.95 |
10-Year | 4.594% | +0.009 |
T-Bond | 112.75 | -0.125 |
Dow | 11689.24 | +0.17% |
Nasdaq | 2263.39 | +0.09% |
S&P | 1336.59 | +0.02% |
The Metals:
Gold rose slightly in Asia and traded as much as $5 higher in London and early New York trade before it fell back off in late morning trade to as low as $590.60, but it then rallied into the close in the last 2 hours of trade and ended near its highs of the session with a gain of 1.10%. Silver rose over 20 cents in London before it fell to as low as $11.42 in late morning New York trade, but it also rallied into the close and ended with a gain of 1.85%. At the time of writing, both gold and silver are trading roughly 0.5% higher from the close in after hours trade.
Euro gold rose above €470, platinum gained $6 to $1,130, palladium gained $1 to $315, and copper remained at about $3.45.
Gold and silver equities opened over 1% higher before they fell to find about 1% losses by late morning, but they then rallied for the rest of trade and ended with nearly 2% gains.
Today was the last day of the Denver Gold Forum (http://www.denvergold.org/).
Although it was an invitation only event, most of the presentations are available by webcast here: http://events.onlinebroadcasting.com/denvergold/092506/index.php?mode=1&sel_date=3
The Economy:
Report | For | Reading | Expected | Previous |
Durable Orders | Aug | -0.5% | 0.4% | -2.7% |
New Home Sales | Aug | 1050K | 1040K | 1009K |
Also making economic news today was that the “Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity <USMGM=ECI>, which includes both refinancing and purchasing loans, for the week ended September 22 fell 4.9 percent to 566.6 from the previous week's 595.8, its highest level since April.”
Tomorrow at 8:30AM EST brings the final reading for 2nd quarter GDP expected at 2.9% with the Chain Deflator expected at 3.3%. Initial Jobless Claims are expected at 315,000. At 10AM is the Help-Wanted Index expected at 32.
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The Markets:
Charts Courtesy of http://finance.yahoo.com/
Inventory reports showed crude inventories fell 100,000 barrels, gasoline inventories rose 6.3 million barrels, and distillates rose 2.6 million barrels. Crude inventories fell less than expected and gasoline inventories rose more than expected, so energy prices initially fell as a result, but renewed worries that OPEC may cut production pushed prices higher in afternoon trade and that resulted in oil gaining nearly $2 by the close.
The U.S. dollar index traded in a tight range on either side of unchanged on mixed economic data.
Treasuries initially rose following the poor Durable Orders report, but they then fell off and ended lower following the New Home Sales report that came in better than expected.
The Dow, Nasdaq, and S&P rose in morning trade and the Dow came within about 3 points of its record closing high before all three indices fell off in late afternoon trade to find slight losses on the day, but all three indices than rallied back into the close and ended a bit higher on the day.
Among the big names making news in the market today were Renault-Nissan & GM, Ford, EMI & Warner, McCormick, Nymex and Amaranth, and General Electric & Crow Family Real Estate.
The Commentary:
“Gold was very firm overseas with the Fixes coming in at $591.25 and $591. The Gold Cartel forces would have none of it and down we went coming into the Comex opening. However, an extremely steady cash market brought prices right back up. The key to moving sharply higher is for Dec gold, the active trading month, to take out $600.
You GATA love the way gold and silver rebounded the past two trading sessions. There is just too much demand down here ... especially below $590 and $11.
Silver would have none of the gold selloff, staying positive while gold fell. $12 here we come.
Both gold and silver have closed higher five days in a row.” - From yesterday’s Midas report by Bill Murphy of LemetropoleCafe.com
Make that 6 days in a row, with December gold closing at over $603 today.
“December Gold finished up 6.2 at 603.3, 1.5 off the high and 6.3 up from the low.
December Silver closed up 0.205 at 11.7. This was 0.16 up from the low and 0.12 off the high.
In retrospect the gold market is generally viewed as being out from under the weight of the Central Bank Sales threat, and that in conjunction with a little less overtly negative broad market sentiment in the commodities probably allowed the recent short covering in gold. One might even suggest that the gold market saw the best of two worlds from the scheduled US economic numbers early Wednesday, as the new home sales reading was positive but yet that didn't seem to strengthen the Dollar and in turn apply direct pressure to gold prices. According to a major Brokerage firm part of the September declines in gold prices were the result of last minute Central bank sales and according to a number of sources the passing of the CBGA (Central Bank Gold Sales Agreement) deadline, the gold market might have the capacity to rally. However, just because one annual allotment period has ended doesn't mean that Central Banks can't offer up sales in the new sale period. It was noted that the slide in oil prices in the wake of the weekly oil inventory reports, seemed to pull back on gold prices, which means that a portion of the deflationary selling impetus continues to operate in the gold market.
With a spike up early thrust the silver market seemed to be catching a macro economic lift on Wednesday morning. However, as in the gold market, it was clear that the reversal of oil prices seemed to undermine the silver market just ahead of mid session. On the other hand, the outlook for physical commodities does seem to be better than was present in early September and there is it is possible that a resumption of the downside in energy prices might actually begin to benefit the physically demand driven commodity markets like silver and gold.” - The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Enron CFO says banks were part of crooked schemes
Central bank rush to dishoard pushed gold down for two months ...
Many Americans suspect gas price decline is political market rigging
China has enough dollars but maybe not enough oil and gold
Ted Butler: Hedge fund's collapse proves concentration in commodity markets
The Statistics:
As of close of business: 09/26/2006
Gold Warehouse Stocks: | 7,914,271 | - |
Silver Warehouse Stocks: | 104,818,831 | + 576,910 |
Global Gold ETF Holdings
[WGC Sponsored ETF’s]
| Product name | Total Tonnes | Total Ounces | Total Value |
New York Stock Exchange (NYSE) | Streettracks Gold Shares | 386.38 | 12,422,498 | US$ 7,339m |
LSE (London Stock Exchange) AND Euronext Paris | Gold Bullion Securities | 78.16 | 2,512,908 | US$ 1,513m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 9.95 | 319,511 | US$ 193m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 9.89 | 317,931 | US$ 187m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU)
Profile as of 09/26/2006 | |
Total Net Assets | $819,239,653 | 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 09/26/2006 | |
Total Net Assets | $1,158,606,457 | Ounces of Silver
in Trust | 104,323,655 |
Shares Outstanding | 10,450,000 | Tonnes of Silver
in Trust | 3,244.8 |
Note: No change in Total Tonnes from yesterday’s data.
The Stocks:
Goldcorp’s (GG) response to Robert McEwen, the Denver Gold Group's executive director’s disappointment with McEwen, Buenaventura’s (BVN) belief that the worst of the protests in Peru are over, Harmony’s (HMY) plans to cut costs, U.S. Energy’s (USEG) sale of their minority ownership interest in Pinnacle Gas Resources and settled litigation with Phelps Dodge, IAMGOLD’s (IAG) increased indicated resources at Quimsacocha, Newmont’s (NEM) operations outlook and diamond investment, Silver Wheaton’s (SLW) received right of first refusal on future silver production from the Penasquito Project from Goldcorp, and Silver Standard’s (SSRI) drill results were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Orezone | OZN+12.03% $1.49 |
2. Northgate | NXG +9.27% $3.30 |
3. Minco Mining | MMK +7.91% $1.50 |
LOSERS
1. Newmont | NEM-1.98% $43.14 |
2. Kimber | KBX -1.00% $1.99 |
3. Almaden | AAU -0.89% $2.23 |
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:
Goldcorp Responds to Robert McEwen - "Goldcorp Inc. today responded to the press release issued by McEwen Capital on September 25, 2006. Shareholders should be aware that Goldcorp has pursued the transaction with Glamis in compliance with all applicable corporate and securities laws as well as the rules of the TSX and the NYSE. In particular, Goldcorp has complied with all applicable provisions of the Business Corporations Act (Ontario) (the "OBCA") and it is simply without legal merit for Mr. McEwen to suggest otherwise." More
- September 27, 2006 | Item | E-mail
Great West Gold, Inc. -- Restructuring Of Company; Company Outlines the Salient Points of its Restructure - More
- September 27, 2006 | Item | E-mail
Newmont sees lower gold sales in 2006, 2007 - "Newmont Mining Corp. on Wednesday cut its forecast for gold sales this year and next partly due to loss of business in Uzbekistan and lower output in Ghana and Peru. But sales will recover in 2008 and 2009 when projects in the United States, Ghana and Australia reach full production, said the Denver-based company, whose stock slipped more than 3 percent after the announcement." More
- September 27, 2006 | Item | E-mail
Bellhaven Ventures, Inc. Shareholder Update & Progress Report - More
- September 27, 2006 | Item | E-mail
International Tower Hill Mines Ltd.: 2006 Annual Meeting Results - More
- September 27, 2006 | Item | E-mail
/C O R R E C T I O N - Mexivada Mining Corp./ - More
- September 27, 2006 | Item | E-mail
Richmond Minerals Updates Grenville Project - More
- September 27, 2006 | Item | E-mail
Bonaventure Enterprises Inc. Commences Phase 1 Drilling at Squaw Creek Property, Phase 2 Drilling at New Pass Property and Extends Claim Block at Cottonwood - More
- September 27, 2006 | Item | E-mail
Agnico-Eagle increases investment in Continuum Resources Ltd. to 15.28% - More
- September 27, 2006 | Item | E-mail
Hi Ho Silver Resources Announces Appointment of New Director - More
- September 27, 2006 | Item | E-mail
Peru's Buenaventura believes worst of protests over - "Peruvian gold and copper miner Buenaventura has resolved most outstanding anti-mining and environmental protests, allowing it to restart production at its Yanacocha operation and complete expansion at Cerro Verde, its chief executive said on Wednesday. "It is very important to note that the outcome of the confrontations has been very positive," Roque Benavides told the Denver Gold Forum." More
- September 27, 2006 | Item | E-mail
Chapleau completes 2,970 m of Reverse Circulation Drilling in 16 Holes on the La Pampa, Iron Oxide Copper-Gold Project in Argentina. - More
- September 27, 2006 | Item | E-mail
Gold Forum organizer upset with Goldcorp founder - "The Denver Gold Group's executive director said on Wednesday he was disappointed with the former CEO of Goldcorp, Rob McEwen, after McEwen used an industry forum to "trash" Goldcorp's deal to acquire Glamis Gold Ltd. "(McEwen) said he would not use the forum to trash the deal, (when he did) I was disappointed with that," Denver Gold Group Executive Director John Haigh told delegates at the Denver Gold Forum, one of the industry conferences the group organizes." More
- September 27, 2006 | Item | E-mail
Western Warrior acquires Dash Lake Property located northeast of Richardson Township, Ontario - More
- September 27, 2006 | Item | E-mail
Fieldex reports drilling results on Midrim, LaForce and Devlin properties - More
- September 27, 2006 | Item | E-mail
Piedmont Announces First Drill Program Completed At Dutch Flat, Nevada - More
- September 27, 2006 | Item | E-mail
Romios Concludes 2006 Summer Exploration Program on its Newmont Lake Property, Galore Creek Area, Northwestern British Columbia - More
- September 27, 2006 | Item | E-mail
10 More Drill Holes On Inter-Citic's Dachang East Area Continue to Yield Encouraging Results - More
- September 27, 2006 | Item | E-mail
Merrex Starts Drilling Jubilee Zinc Deposit - More
- September 27, 2006 | Item | E-mail
Plexmar Resources Inc.: Update on Bolsa Del Diablo - More
- September 27, 2006 | Item | E-mail
Robex - Investor Relations appointment - More
- September 27, 2006 | Item | E-mail
Exall Resources Re-Files its Annual Information Form - More
- September 27, 2006 | Item | E-mail
GoldSpring, Inc. Enters Into Final Agreement With Mining Contractor With Plans to Take Direct Control of Mining by December 2006 - More
- September 27, 2006 | Item | E-mail
Great West Gold, Inc. -- Correction to Restructuring Announcement - More
- September 27, 2006 | Item | E-mail
Crew Gold Corp. Announces New Staff Appointments - More
- September 27, 2006 | Item | E-mail
Paramount Gold Outlines a High Potential Gold-Silver Target at Santos, Peru - More
- September 27, 2006 | Item | E-mail
Linux Gold Corp. Stakes New Mineral Exploration Claims, Livengood, Alaska - More
- September 27, 2006 | Item | E-mail
Buffalo Gold to Host Conference Call - More
- September 27, 2006 | Item | E-mail
EXMIN Stakes Additional 150,000 Hectares in the Sierra Madre Gold Belt of Chihuahua and Sonora, Mexico - More
- September 27, 2006 | Item | E-mail
Scorpio Mining Receives Conditional Approval for Toronto Stock Exchange Listing - More
- September 27, 2006 | Item | E-mail
Urbanisation Certificate received for Certej - More
- September 27, 2006 | Item | E-mail
Terex Resources Inc.: Significant Gold Values Encountered in Wawa, Ontario - More
- September 27, 2006 | Item | E-mail
Bear Creek announces positive initial metallugical results for Corani - More
- September 27, 2006 | Item | E-mail
Interim Drill Results for Miranda's Redlich Project and Horse Mountain Exploration Update - More
- September 27, 2006 | Item | E-mail
Wits Basin Announces Business Development Update - More
- September 27, 2006 | Item | E-mail
Harmony aims to cut costs to $350-$400/oz in 4 yrs - "South Africa's Harmony Gold, the world's fifth biggest gold producer, said it plans to cut costs to $350-$400 per ounce within four years from $433 per ounce in the 2006 fiscal year. The lower costs will be made possible as new higher-quality projects come onstream that will boost output, Chief Executive Bernard Swanepoel said in the firm's annual report released on Wednesday." More
- September 27, 2006 | Item | E-mail
Silver Wheaton Granted Right of First Refusal on Penasquito Silver Production - "Silver Wheaton Corp. is pleased to announce it will receive a right of first refusal on future silver production from the Penasquito Project from Goldcorp Inc. upon the successful completion of Goldcorp's acquisition of Glamis Gold Ltd., the 100% owner of the Penasquito Project located in Zacatecas, Mexico." More
- September 27, 2006 | Item | E-mail
U.S. Energy Corp. and Crested Corp. Sell Natural Gas-Related Assets and Settle Phelps Dodge Litigation - "While our participation in the natural gas industry created significant value for our shareholders in recent years, we elected to sell our interests in Pinnacle and Enterra in order to strengthen our financial position during settlement negotiations with PD and to allow the companies to aggressively pursue core strategic business initiatives in uranium, molybdenum, gold and other areas." More
- September 27, 2006 | Item | E-mail
IAMGOLD Announces a 21% Increase in Indicated Resources at Quimsacocha - "IAMGOLD Corporation is pleased to announce that an updated independent resource estimate at its 100% owned Quimsacocha gold deposit in Ecuador shows a total indicated resource of 32.6 million tonnes at 3.2 g/t gold, 25 g/t silver and 0.15% copper at a 1.0 g/t gold cut-off giving a total of 3.4 million ounces of gold. This is an increase from the previously announced (October 28, 2005) indicated resource of 2.8 million ounces of gold." More
- September 27, 2006 | Item | E-mail
Newmont Announces Operations Outlook and Diamond Investment - "Newmont Mining Corporation today announced that equity gold sales are expected to temporarily decline before increasing after development projects in Nevada, Ghana and Australia achieve full production rates in 2008 and 2009. For 2006, the Company now expects equity gold sales of between 5.6 and 5.8 million ounces, primarily as a result of the expropriation of the Company's 50% interest in the Zarafshan-Newmont Joint Venture in Uzbekistan, lower production in Ghana caused by nationwide power shortages, and the expected sale of the Holloway mine in Canada." More
- September 27, 2006 | Item | E-mail
Silver Standard Reports 2.5 Oz./Ton Silver and 2.3% Base Metals Over 1,972 Feet at Pitarrilla in Mexico - "Within this 1,972-foot silver and base metal intersection are three intervals of high-grade silver-base metal mineralization. The first measured 87 feet averaging 9.6 ounces of silver per ton (26.1 meters averaging 329.8 grams of silver per tonne), 4.89% zinc, 1.78% lead and 0.29% copper. Below this interval is 99 feet of silver-lead-zinc-rich mineralization averaging 8.5 ounces of silver per ton (30.2 meters averaging 291.5 grams of silver per tonne), 5.85% zinc, and 2.16% lead. These two zones correspond to the high-grade intercepts found in hole PD-152. The third high-grade intersection, which measured 99.8 feet averaging 6.2 ounces of silver per ton (30.4 meters averaging 214.2 grams of silver per tonne), 5.93% zinc and 3.49% lead, is located on the hanging wall of a rhyolite dike and is interpreted to be part of the feeder zone for the broader mineral system." More
- September 27, 2006 | Item | E-mail
- Chris Mullen, Gold Seeker Report
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-- Posted 27 September, 2006 | |
