-- Posted 5 October, 2006 | | Source: SilverSeek.com
| Close | Gain/Loss |
Gold | $571.20 | +$9.70 |
Silver | $10.97 | +$0.31 |
XAU | 124.97 | +2.38% |
HUI | 293.65 | +2.84% |
GDM | 938.05 | +2.50% |
JSE Gold | 2854.37 | +2.00% |
USD | 85.91 | +0.09 |
Euro | 126.96 | -0.03 |
Yen | 85.03 | +0.28 |
Oil | $60.03 | +$0.62 |
10-Year | 4.608% | +0.043 |
T-Bond | 112.50 | -0.50 |
Dow | 11866.69 | +0.14% |
Nasdaq | 2306.34 | +0.67% |
S&P | 1353.22 | +0.22% |
The Metals:
Gold rose to over $570 in Asia before it fell back off a bit, but it then rose again in London, furthered it gains above $570 in early New York trade, and ended with a gain of 1.73%. Silver outpaced gold’s gains and rose near $11.10 in New York trade before it fell slightly, but it still ended with a gain of 2.91%.
Euro gold rose back above €450, platinum gained $3 to $1,075, palladium gained $3 to $295, and copper rose nearly 10 cents to about $3.36.
Gold and silver equities rose about 2% at the open and remained at about that level for most of trade before they extended their gains in the last 2 hours and ended nearly 3% higher.
The Economy:
Report | For | Reading | Expected | Previous |
Initial Claims | 9/30 | 302K | 315K | 319K |
Tomorrow at 8:30 AM EST brings jobs data for September. Nonfarm Payrolls are expected at 120,000, the Unemployment Rate is expected at 4.7%, Hourly Earnings are expected at 0.3%, and the Average Workweek is expected at 33.8. At 3PM is Consumer Credit for August expected at $5.5B.
ADVERTISEMENT
Join the Gold Rush: FREE Gold Traders Kit! FREE mini-sized Gold & Silver Fu
tures Booklet
FREE Electronic Gold OPTIONS Booklet (Don't forget - Electronic Gold launches March 3rd!)
Access to Gold Live Book (Free Real-Time Prices)
Access to Silver Live Book (Free Real-Time Prices)
Plus a special Metals Complex Benefits Sheet
- Click Here -
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil rose on word that OPEC will cut production by one million barrels a day, but no date has yet been set for the start of that output reduction and large early gains were pared by the close.
The U.S. dollar index rose slightly as the euro fell after the ECB raised interest rates, but did not indicate further hikes as strongly as some expected. European Central Bank president Trichet hinted towards at least one more rate hike this year, but did not give any indication of the ECB’s plans after that.
Treasuries fell as today’s Initial Jobless Claims report showed fewer claims than expected and reversed the negative view on the labor market raised yesterday by a private report. Kohn’s warning on inflation in his speech last night and Plosser’s comments today about interest rates possibly not being high enough also encouraged selling as traders prepared for tomorrow’s jobs report.
The Dow, Nasdaq, and S&P traded on either side of unchanged in a relatively tight range as higher oil and higher interest rates worried traders a bit while strong retail sales reports encouraged investors.
Among the big names making news in the market today were Pequot Capital, Target, Wal-Mart, Ryanair and Aer Lingus, Marriott, and Ford.
The Commentary:
“With the 'ceiling' of 500 tonnes not being reached [only 390 - 394] tonnes finally being achieved, the clear picture is that the signatories of the Central Bank Gold Agreement did not have the desire to sell the full 500 tonnes.
But of more significance than this now piece of history is the fact that, of the announced sales for the full 5 years only 665 tonnes remain for the next three years. Of the unannounced sellers, Spain & Belgium, Belgium sold none this year, implying they are not ongoing sellers. Spain could be but to date have sold only 30 - 36 tonnes per annum, implying they could sell another 90 tonnes in the next three years. This still only leaves an average of 192 tonnes for sale each of the remaining three years of the agreement.
Italy has stated it has NO PLANS to sell any gold and Germany's Bundesbank Prsident has publicly stated that "Gold is a good counter to the swings in the $" and resisting their own governments attempts to pressure them into selling gold, leaving us with the expectation they will not be sellers, [having sold none -except small amounts for coins to date] in the next three years.
So we expect the signatories either to sell a similar amount to this year for the next two years then cease, or to sell under 200 per annum for the remainder of the agreement.
We do not accept some opinions that these Central Banks want the gold price lower or they would have behaved differently.” - Julian D.W. Phillips, www.goldforecaster.com
“The ECB ONLY SOLD 2.3 tonnes of gold in the final week under the terms of the Washington Agreement for the calendar year Sep 26/05 thru Sep 26/06. This only brought the total up to 400 tonnes.
This is a big deal because numerous banks such as UBS and Barclays have reported HUGE central bank selling around the Fix for some time now. These banks all suggested it was massive selling of gold by the European banks to fill their quotas of that agreement. For many weeks now it was my contention the selling was more likely The Gold Cartel. This latest report reveals that GATA IS CORRECT. There is no other explanation for this enormous selling to knock gold down … ahead of the US elections.
The motive is the same as always. The ferociousness of the selling by the cabal is remarkable. As mentioned for months, Paulson doesn’t care how it looks, in his typical, arrogant Goldman Sachs style. He wants interest rates down and the stock market up for the elections.” - From yesterday’s Midas report by Bill Murphy of LemetropoleCafe.com
“December Gold finished up 8.8 at 575.5, 3.3 off the high and 3.9 up from the low.
December Silver closed up 0.275 at 11.07. This was 0.11 up from the low and 0.15 off the high.
The capacity to hold above the psychological consolidation zone of $575 in the December contract might serve to temper the selling interest of the bear camp. However, it is clear from daily price correlations that the gold market is paying significant attention to the ebb and flow of oil prices. However, the gold market might have been partially supported by suggestions from German officials, who criticized the Bundesbank decision to wait until September of 2007 before they sell additional gold reserves. However, it might be difficult to totally come away from the delayed German gold sales story with a conclusively bullish view, as the Bundesbank does seem intent to eventually sell some gold. It does not seem like the pattern of gains in the Dollar, is a major concern to the gold trade, but it is possible that the somewhat hawkish Fed dialogue of the last 24 hours is actually serving to undermine sentiment.
The silver market managed an impressive upward thrust Thursday and managed part of the gains on the fact that gold and copper prices were firm. Certainly the silver market was also lifted as a result of the attempted recovery in oil prices and might also have been lifted by more Press coverage of the recently extremely oversold technical condition of the silver market. However, the trade in general seems to be suggesting that the rally was primarily short covering and not necessarily a sign of fresh long term position buying. With the stock market at times managing to rise to fresh new all times highs in a number of measures, it would seem like the outlook for the economy is generally favoring the bull camp.” - The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Once in Morgan's hands, Amaranth's losing trades became winners overnight
The money isn't as good as the coffee anymore
Europe's central banks sell less gold than target
The Statistics:
As of close of business: 10/4/2006
Gold Warehouse Stocks: | 7,889,388 | - |
Silver Warehouse Stocks: | 105,220,490 | - |
Global Gold ETF Holdings
[WGC Sponsored ETF’s]
| Product name | Total Tonnes | Total Ounces | Total Value |
New York Stock Exchange (NYSE) | Streettracks Gold Shares | 389.34 | 12,517,589 | US$ 7,179m |
LSE (London Stock Exchange) AND Euronext Paris | Gold Bullion Securities | 79.24 | 2,547,679 | US$ 1,456m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 9.94 | 319,483 | US$ 183m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 9.89 | 317,903 | US$ 182m |
Note: Change in Total Tonnes from yesterday’s data: The NYSE added 2.96 tonnes and the LSE added 1.09 tonnes.
COMEX Gold Trust (IAU)
Profile as of 10/04/2006 | |
Total Net Assets | $778,699,275 | Ounces of Gold
in Trust | 1,385,649.968 |
Shares Outstanding | 13,950,000 | Tonnes of Gold
in Trust | 43.10 |
Note: change in Total Tonnes from yesterday’s data: 474.15 ounces were subtracted from the trust.
Silver Trust (SLV)
Profile as of 10/04/2006 | |
Total Net Assets | $1,128,742,906 | 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) defense of Robert McEwen’s claim, Rio Narcea’s (RNO) additional stake in Chariot Resources (CHD.TO), Eldorado Gold’s (EGO) Tanjianshan Commissioning, Nevsun’s (NSU) Bisha Reserve Announcement, Fronteer’s (FRG) $10 million private placement in Aurora, Apollo Gold’s (AGT) updated progress at its Montana Tunnels Mine, Scorpio’s (SPM.V) drill results, Fortuna’s (FVI.V) agreement with Continuum Resources Ltd. to purchase a 100% interest in the San Jose silver-gold project in Mexico, Sterling Mining’s (SRLM.OB) exploration program for the property leased from Metropolitan Mines, and First Majestic’s (FR.V) DESMIN acquisition were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Richmont | RIC +10% $2.42 |
2. Northern Dynasty | NAK +9.67% $6.24 |
3. Vista Gold | VGZ +7.06% $9.55 |
LOSERS
1. Cardero | CDY -3.92% $1.47 |
2. Rio Narcea | RNO-2.73% $2.14 |
3. Orezone | OZN-1.38% $1.43 |
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:
MacDonald Mines Commences Drill Program on McNugget Property - More
- October 05, 2006 | Item | E-mail
Goldcorp to Defend Claim by Robert McEwen - "GOLDCORP INC. today announced that it will vigorously defend the application filed by Robert McEwen with the Ontario Superior Court of Justice relating to Goldcorp's proposed transaction with Glamis Gold Ltd. The application seeks to have the court require that Goldcorp call a shareholders' meeting to approve the transaction with Glamis." More
- October 05, 2006 | Item | E-mail
Rio Narcea Acquires Additional Stake in Chariot Resources - "This purchase constitutes approximately 13.7% of the outstanding common shares and the common shares and warrants together constitute 14.7% of the common shares and warrants outstanding of Chariot. The purchase is to be completed at C$0.65 per common shares and C$0.30 per warrant for an aggregate purchase price of C$24,137,725. Each share purchase warrant entitles Rio Narcea to acquire an additional common share of Chariot at a price of C$0.35 per share until December 22, 2006." More
- October 05, 2006 | Item | E-mail
Chapleau Resources Ltd. drilling to commence on October 12 at Nova Canaa - More
- October 05, 2006 | Item | E-mail
Western Copper: Project Update - More
- October 05, 2006 | Item | E-mail
Amerigo sells strategic stake in Chariot Resources Limited for $24.1 million, representing a gain of $9.68 million - More
- October 05, 2006 | Item | E-mail
Scorpio's Hoag Zone Drilling Continues to Outline a Large Mineralized Body at Depth - "The true definition of a deposit is when you can consistently drill hole after hole without missing and that is what we have been doing. The Hoag Zone remains open at depth and to the northeast and is consistently mineralized. The body continues to become more similar to that of the Nuestra Senora deposit as the depth increases. The stacked thrust faults that control the mineralizing events have increasing potential for hosting multiple bodies." More
- October 05, 2006 | Item | E-mail
Yukon Gold Corporation, Inc. Announces Completion of a $950,000 USD Private Placement - More
- October 05, 2006 | Item | E-mail
Little Squaw Identifies Excellent Placer Gold Potential at Chandalar, AK - More
- October 05, 2006 | Item | E-mail
Fortuna and Continuum Acquire 100% Interest in the San Jose Ag-Au Project, Mexico - "Under the terms of the agreement, Fortuna will pay the full purchase price of US$8,000,000 cash, US$250,000 in shares of Fortuna, and US$250,000 in shares of Continuum currently owned by Fortuna. The previous option agreement between Fortuna and Continuum dated November 10, 2005 will be superseded by this agreement, and a joint venture will be formed, Fortuna having a 76% interest and Continuum a 24% interest. Continuum will contribute to the joint venture additional concessions in the area on which it has option agreements, as well as any other concessions that Continuum may acquire within the greater area that will be known as the Taviche joint venture area." More
- October 05, 2006 | Item | E-mail
Eldorado Gold Corporation: Tanjianshan Commissioning Underway - "The Tanjianshan Mine as of January 1, 2006 has proven and probable reserves of 1,115,000 oz. Au. The present operating plan is based on an 11 year mine life with estimated cash operating cost of US$232/oz. The Company is undertaking a US$2 million exploration programme designed to both increase the TJS reserve and initiate testing of previously identified mineralization." More
- October 05, 2006 | Item | E-mail
Continuum and Fortuna acquire 100% interest in the San Jose Ag-Au project, Mexico - More
- October 05, 2006 | Item | E-mail
The rights offering of Campbell Resources is postponed - More
- October 05, 2006 | Item | E-mail
Alturas Reports Additional Assay Results from Ongoing Trench Sampling at Huilacollo Gold Project, Peru - More
- October 05, 2006 | Item | E-mail
AXMIN Inc.: Initial Resource of 392,000 Ounce of Gold Reported From the Komahun Prospect, Nimini Hills, Sierra Leone - More
- October 05, 2006 | Item | E-mail
Sprott Securities issues fairness opinion for Nevada transaction - More
- October 05, 2006 | Item | E-mail
HE-5 Resources, Corp. Signs MoU to Acquire 90-Acre Parcel of Land Near Overman Property - More
- October 05, 2006 | Item | E-mail
Medallion Appoints New Director - More
- October 05, 2006 | Item | E-mail
San Gold Deep Drilling Yields Impressive Grades and Widths - More
- October 05, 2006 | Item | E-mail
Freegold Drilling Intercepts Deeper Gold Mineralization at Almaden - More
- October 05, 2006 | Item | E-mail
Romios Options Property in the Galore Creek area, Northwestern British Columbia - More
- October 05, 2006 | Item | E-mail
Joint News Release - American Creek and Serengeti sign Tide Project Letter of Intent - More
- October 05, 2006 | Item | E-mail
Western Warrior reports assay results from Eppler Lake project, northern Manitoba - More
- October 05, 2006 | Item | E-mail
Piedmont Announces Exploration Update at Trinity Silver Project, Nevada - More
- October 05, 2006 | Item | E-mail
EXMIN Stakes 50,000 Hectares and Acquires Gold-Copper Project in the Batopilas Region of Chihuahua, Mexico - More
- October 05, 2006 | Item | E-mail
Sterling Mining Announces Exploration Program for Metropolitan Mines Property - "The Company is finalizing plans to expand geophysical and geochemical surveys to the south onto ground leased from Metropolitan Mining Company in order to better define open-ended anomalies identified in 2003 and 2004. The first program is expected to be carried out by mid November 2006, with the expansion of the program to the east and south scheduled for 2007." More
- October 05, 2006 | Item | E-mail
Crew Gold Corp: Release Notice for Year End Results June 30, 2006 - More
- October 05, 2006 | Item | E-mail
Wallbridge Completes Acquisition of Broken Hammer and Parkin Resources from Xstrata Nickel - More
- October 05, 2006 | Item | E-mail
Alhambra Resources Ltd. - Operational Updates - More
- October 05, 2006 | Item | E-mail
Licence agreements signed for Albion Process at Certej - More
- October 05, 2006 | Item | E-mail
Melkior Resources Inc.: West Timmins Vein Assays 280 g/t Gold - More
- October 05, 2006 | Item | E-mail
Jinshan Gold Mines to Start Trading on the Toronto Stock Exchange on October 6, 2006 - More
- October 05, 2006 | Item | E-mail
International Arimex receives Cree West data - More
- October 05, 2006 | Item | E-mail
Magnus International Resources Acquiring African Mineral Fields to Explore Mineral Opportunities in Africa - More
- October 05, 2006 | Item | E-mail
TSX: FR - First Majestic Resource: Acquisition of DESMIN Closing
- October 05, 2006 | Item | E-mail
First Majestic Resource Corp.: Acquisition of DESMIN Closing - "Desmin's primary asset is an exploitation contract with Penoles which covers the operations of La Encantada Silver Mine located at the Coahuila State in Mexico. The exploitation contract between Desmin and Penoles gives Desmin the right to all properties within the 700 hectare land package, including the operations of the mine and mill and all the auxiliary installations and associated equipment. It has been agreed that the Company will pay US$1.5million for all the issued and outstanding shares of Desmin resulting in Desmin becoming a wholly owned subsidiary of the Company." More
- October 05, 2006 | Item | E-mail
Nevsun Resources Ltd.: Bisha Reserve Announcement - "Nevsun Resources Ltd. is very pleased to announce the mining reserve for the Bisha Project in Eritrea. The mining reserve has been estimated by AMEC Americas Limited (AMEC), Vancouver Canada, as part of the feasibility study it is completing for the Bisha Project." More
- October 05, 2006 | Item | E-mail
Fronteer Closes $10 Million Private Placement in Aurora - "This private placement financing happened concurrently with the closing of a $30 million bought deal financing by Aurora whereby Aurora sold an aggregate of an additional 1,722,500 Common Shares at a price of $10.45 per Common Share and an aggregate of 956,200 Flow-Through Shares at a price of $12.55 per Flow-Through Share." More
- October 05, 2006 | Item | E-mail
Apollo Gold Updates Progress on the Montana Tunnels Mine Joint Venture - "Montana Tunnels commenced its remediation program on August 10, 2006 with the hiring of key maintenance personnel to repair the mobile equipment fleet followed by the hiring of mine operating personnel during the first week of September, 2006. On September 10, 2006 the first bench was blasted and we began waste rock removal and construction of a new access ramp to the open-pit ore reserves. We have excavated approximately 750,000 tons to date." More
- October 05, 2006 | Item | E-mail
Barrick sees dollar, not oil as gold's driver - "The topsy-turvy fortunes of the gold bullion market had more to do with movements in the U.S. dollar than rising and falling oil prices, world number one gold miner Barrick Gold Ltd. said on Thursday. Spot gold prices have fallen sharply from a 26-year high of $730 an ounce in May, costing around $566.60 on Thursday." More
- October 05, 2006 | Item | E-mail
- Chris Mullen, Gold Seeker Report
- Would you like to receive the Free Daily Gold Seeker Report in your e-mail? Click here
Additional Resources for today’s Gold Seeker Report can be found:
© Gold Seeker 2006
Note: This article may be reproduced provided the article, in full, is used and mention to Gold-Seeker.com is given.
Disclosure: The owner, editor, writer and publisher and their associates are not responsible for errors or omissions. The author of this report is not a registered financial advisor. Readers should not view this material as offering investment related advice. Gold-Seeker.com has taken precautions to ensure accuracy of information provided. Information collected and presented are from what is perceived as reliable sources, but since the information source(s) are beyond Gold-Seeker.com’s control, no representation or guarantee is made that it is complete or accurate. The reader accepts information on the condition that errors or omissions shall not be made the basis for any claim, demand or cause for action. Past results are not necessarily indicative of future results. Any statements non-factual in nature constitute only current opinions, which are subject to change. Nothing contained herein constitutes a representation by the publisher, nor a solicitation for the purchase or sale of securities & therefore information, nor opinions expressed, shall be construed as a solicitation to buy or sell any stock, futures or options contract mentioned herein. Investors are advised to obtain the advice of a qualified financial & investment advisor before entering any financial transaction.
-- Posted 5 October, 2006 | |
