-- Posted 25 October, 2006 | | Source: SilverSeek.com
| Close | Gain/Loss |
Gold | $587.20 | +$3.90 |
Silver | $11.79 | +$0.04 |
XAU | 134.78 | +2.89% |
HUI | 316.13 | +2.98% |
GDM | 1011.90 | +2.89% |
JSE Gold | 2943.38 | +2.02% |
USD | 86.44 | -0.24 |
Euro | 125.90 | +0.17 |
Yen | 83.93 | +0.01 |
Oil | $61.40 | +$2.05 |
10-Year | 4.773% | -0.051 |
T-Bond | 110.6875 | +0.5625 |
Dow | 12134.68 | +0.06% |
Nasdaq | 2356.59 | +0.50% |
S&P | 1382.22 | +0.35% |
The Metals:
Gold remained near unchanged in Asia and London and dropped to about $580 in early New York trade, but it then popped higher after oil inventory data was released, remained near its highs into the close, and ended with a gain of 0.67%. Silver followed a similar pattern and gained 0.34%. At the time of writing, both metals are trading about an additional 0.5% higher in after hours access trade in reaction to the fed’s statement.
Euro gold rose to about €467, platinum gained $7 to $1,064, palladium remained unchanged at $318, and copper fell slightly to about $3.42.
Gold and silver equities fell slightly at the open, rose over 2% in late morning trade, fell back off a bit in early afternoon trade, rallied into the close, and ended near their highs with almost 3% gains.
The Economy:
Report | For | Reading | Expected | Previous |
Existing Home Sales | Sep | 6.18M | 6.25M | 6.30M |
The fed kept rates unchanged at 5.25% as expected. They noted that economic growth has slowed and that inflation pressures are likely to moderate over time, but that some inflation risks remain. Lacker again dissented and called for an interest rate hike while all other voting members agreed to keep rates unchanged.
Tomorrow at 8:30AM EST are Durable Goods Orders for September expected at 2.3% and Initial Jobless Claims for 10/21 expected at 308,000. At 10AM are New Home Sales for September expected at 1,050,000 and the Help-Wanted Index for September expected at 31.
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The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil rose over 3% on a surprise drop in crude inventories and a larger than expected draw in distillate and gasoline inventories. Unrest in Nigeria, cold weather, and signs that OPEC is following through on its production/quota cut pledge also encouraged buying. Crude inventories fell 3.3 million barrels, gasoline inventories fell 2.8 million barrels, and distillates fell 1.4 million barrels. Refinery Runs came in at a slightly lower 86.2%.
The U.S. dollar index fell before the fed and extended its losses after the fed as the fed was not especially hawkish in their remarks as some had expected them to be.
Treasuries rose on short covering and weak Existing Home Sales before the fed, and then extended their gains after the fed.
The Dow traded mostly lower while the Nasdaq and S&P traded mostly higher on mixed earning reports and higher oil, but all three indices rallied in late trade and ended slightly higher.
Among the big names making news in the market today were WellPoint, Colgate-Palmolive, DaimlerChrysler, ConocoPhillips, Harrah’s, IHOP, GM, Boeing, ImClone, and FPL and Constellation.
The Commentary:
“I was speaking this morning to one of the sharpest men in the gold industry … gold was down nearly $7 at the time. Aside from our usual disgust at the goings-on, he said he was really surprised to see gold mauled this morning after how well the gold shares performed yesterday. It was not a stretch to call the HUI up move yesterday remarkable, considering gold was off nearly $14.
Well, lo and behold, JP Morgan Chase and Republic Bank showed up on the buy side while the funds were selling heavily early … and sure enough gold and silver turned right around after sustaining sharp early losses.
These sorts of turnarounds in gold and silver are fairly rare. Could this one be significant? Yes, of course, especially since the elections are now only two weeks off.” - From yesterday’s Midas report by Bill Murphy of LemetropoleCafe.com
“December Gold finished up 3.2 at 590.8, 3.5 off the high and 8.3 up from the low.
December Silver closed up 0.04 at 11.89. This was 0.14 up from the low and 0.105 off the high.
Gold found support today from a stronger energy market, while this afternoon's release of FOMC comments appeared to have had little initial effect, although subsequent declines in the US dollar could lend additional support to gold. This morning's EIA stocks report indicated crude oil stocks had fallen 3.3 million barrels last week versus trader expectations for at 2.6 million barrel increase. This was bullish for crude oil and in turn bullish for gold, which has found support this past week off of the recovering oil market and renewed concerns about inflation. Prior to the energy report, the trade had been more concerned about possible "hawkish" statements coming out of the Fed today, but this afternoon's FOMC comments were mostly as expected, although some press reports are interpreting a slight less hawkish tone. The report indicated that the Fed was keeping its benchmark interest rate steady for the third straight meeting.
December silver found some support today from the gold market, but it may also have been helped by the fact that copper managed to recover from its early losses. However, some traders expressed concern that December Silver has to push through the psychological resistance at $12.00 for the market to lose its bearish tone. US economic numbers this morning were on the soft side and offered little support to support silver from the industrial usage perspective. The Chicago Fed National Activity Index fell in September, and Existing Home Sales were down 1.9% versus expectations of a 1.1% decline. The FOMC Meeting this afternoon offered little or no surprises as interest rates were left unchanged, but some Fed watchers are reading the tone of the commentary to be less hawkish than expected.” - The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Jeffrey Saut: Stock market acting unnaturally, as if it's being propped up
Ted Butler: The real gold/silver ratio, Part 2
The Statistics:
As of close of business: 10/24/2006
Gold Warehouse Stocks: | 7,565,823 | - 32,009 |
Silver Warehouse Stocks: | 105,085,778 | - 63,857 |
Global Gold ETF Holdings
[WGC Sponsored ETF’s]
| Product name | Total Tonnes | Total Ounces | Total Value |
New York Stock Exchange (NYSE) AND Singapore Exchange (SGX) | Streettracks Gold Shares | 388.72 | 12,497,746 | US$ 7,191m |
LSE (London Stock Exchange) AND Euronext Paris | Gold Bullion Securities | 83.67 | 2,690,105 | US$ 1,589m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 10.08 | 323,872 | US$ 191m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 9.89 | 317,833 | US$ 182m |
Note: Change in Total Tonnes from yesterday’s data: The NYSE subtracted 1.54 tonnes and the ASX added 0.10 tonnes.
COMEX Gold Trust (IAU)
Profile as of 10/24/2006 | |
Total Net Assets | $809,561,005 | Ounces of Gold
in Trust | 1,385,649.968 |
Shares Outstanding | 13,950,000 | Tonnes of Gold
in Trust | 43.10 |
Note: No change in Total Tonnes from yesterday’s data.
Silver Trust (SLV)
Profile as of 10/24/2006 | |
Total Net Assets | $1,194,561,594 | Ounces of Silver
in Trust | 103,280,281 |
Shares Outstanding | 10,350,000 | Tonnes of Silver
in Trust | 3,212.4 |
Note: No change in Total Tonnes from yesterday’s data.
The Stocks:
Rob McEwen’s statement following yesterday’s court decision dismissing his application, NovaGold’s (NG) completed feasibility study, Cumberland’s (CLG) sale of its Meliadine gold property interests, Gold Reserve’s (GRZ) delisting of warrants, and Gold Fields’ (GFI) executive changes were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Ivanhoe | IVN +7.77% $9.71 |
2. Glamis Gold | GLG +7.75% $41.14 |
3. Entree Gold | EGI+7.27% $1.6519 |
LOSERS
1. Solitario | XPL -3.27% $3.55 |
2. Minefinders | MFN-2.64% $7.73 |
3. IRC | ROY-1.98% $4.46 |
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:
Golden China Announces Fiscal 2006 Year-End Results - More
- October 25, 2006 | Item | E-mail
Breakwater Resources Ltd.'s Third Quarter Financial And Operating Results Conference Call - More
- October 25, 2006 | Item | E-mail
STATEMENT RE: Rob McEwen's Immediate Appeal To Goldcorp-Glamis Court Ruling - "While I respect the decision of Madam Justice Pepall of the Ontario Superior Court, I remain adamant that shareholders are being denied their fundamental right to vote on the Goldcorp-Glamis Plan of Arrangement and that serious corporate governance issues remain. Having carefully reviewed the Court's decision with my legal advisors, I will continue to seek more options to access the rights of Goldcorp shareholders." More
- October 25, 2006 | Item | E-mail
Final Feasibility Study Completed at NovaGold's Galore Creek Project - "Hatch Ltd., an independent engineering services company located in Vancouver, B.C., Canada, together with a number of specialized consultants, has completed the Feasibility Study for NovaGold's Galore Creek project in northwestern British Columbia. This study confirms the economic viability of a conventional open-pit mining operation using long-term metals prices and provides the basis for NovaGold's first Proven and Probable Reserves for copper, gold and silver." More
- October 25, 2006 | Item | E-mail
New World Resource Corp.: Lipena Drilling Intersects 93 Metres of 1.68% Copper 2.04 g/t Gold and 19.9 g/t Silver - More
- October 25, 2006 | Item | E-mail
Great West Gold, Inc. -- Update On Stock Dividends - More
- October 25, 2006 | Item | E-mail
Western Copper Corporation and Lumina Resources Corp.: Joint News Release - More
- October 25, 2006 | Item | E-mail
MGM Mineral Resources Announces Recent Corporate Activities - More
- October 25, 2006 | Item | E-mail
Pan American Receives Preliminary Drill Results from Huicicila Property - More
- October 25, 2006 | Item | E-mail
More High-Grade on Silver Coin with Holes 114, 132 and 158 Intersecting 30.65 g/t, 23.14 g/t and 44.1 g/t Gold - More
- October 25, 2006 | Item | E-mail
Yamana Gold Third Quarter Financial Results Notification and Conference Call - "YAMANA GOLD INC. announces that the third quarter 2006 financial results will be released after market close on November 7, 2006. A conference call and audio replay has been scheduled for November 8, 2006 at 11:00 a.m. E.S.T. to discuss the results." More
- October 25, 2006 | Item | E-mail
Palladon Retains Ascenta Capital Partners Inc. to Provide Investor Relations Services - More
- October 25, 2006 | Item | E-mail
Yorbeau Intercepts 49.98 Grams Au Over 4.3 Meters - More
- October 25, 2006 | Item | E-mail
YGC Resources reports results from channel sampling at the Gully Zone at its Ketza River property - More
- October 25, 2006 | Item | E-mail
Pearl Asian Mining Industries Announces Availability of PAIM Gold Vanity Card, Reports on Progress of Gold Mining and Processing - More
- October 25, 2006 | Item | E-mail
Northern Mining: Tulawaka Mine Produces 40,642 Ounces of Gold in the Third Quarter of 2006 - More
- October 25, 2006 | Item | E-mail
Matamec Appoints Bay Street Connect as Investor Relations Firm - More
- October 25, 2006 | Item | E-mail
High Grade Graphite Assays At Lac Gueret - More
- October 25, 2006 | Item | E-mail
Mesa Uranium Drill Results - More
- October 25, 2006 | Item | E-mail
Aurelian Resources Advised of Legal Actions-Considers Warrant Actions to be Without Merit - More
- October 25, 2006 | Item | E-mail
Affinor Acquires a Property in the Hebecourt Township - More
- October 25, 2006 | Item | E-mail
High River Gold Adds to its Land Holdings on the Birimian Greenstone Belt in Burkina Faso Hosting the Bissa Deposits - More
- October 25, 2006 | Item | E-mail
Ressources Appalaches: New Uranium Discovery - More
- October 25, 2006 | Item | E-mail
Progress Report From Lluvia de Oro Heap Leach Gold Mine - More
- October 25, 2006 | Item | E-mail
Tri-Valley Unit Announces the Addition of Two Copper Properties to Select Resources Portfolio - More
- October 25, 2006 | Item | E-mail
Sur American Gold Corporation Intersects 88 Metres Grading 0.92% Copper And 0.34 g/t Gold, 2.91 g/t Au Equiv - More
- October 25, 2006 | Item | E-mail
USCorp Announces Results of Picacho Gold Property Geological Report - More
- October 25, 2006 | Item | E-mail
Dumont discovers Carlin style gold at Rattler Project, Utah - More
- October 25, 2006 | Item | E-mail
Bayfield Ventures Corp. Drill Rig Mobilized to Khermen Uul Property, Mongolia - More
- October 25, 2006 | Item | E-mail
SearchGold Identifies Three New Gold Anomalies on Magnima, Gabon - More
- October 25, 2006 | Item | E-mail
Northwestern to commence ground exploration program at uranium properties in Niger - More
- October 25, 2006 | Item | E-mail
EXMIN-Penoles JV to Commence Drilling at Maguarichic Project in October - More
- October 25, 2006 | Item | E-mail
Western Copper and Lumina Resources Execute Definitive Agreement - More
- October 25, 2006 | Item | E-mail
Diamond Drill Mobilized to Saganaga Gold Project - More
- October 25, 2006 | Item | E-mail
Midlands Minerals Corporation: Diamond Core Drilling Right on Schedule on the Itilima Project-Tanzania - More
- October 25, 2006 | Item | E-mail
Significant Expansion of Gold Mineralization including 53 m at 5.4 g/t Gold - Tassawini, Guyana - More
- October 25, 2006 | Item | E-mail
Eaglecrest Explorations Ltd.: Second Ball Mill Cleanup Recovers 500 Grams Gold - More
- October 25, 2006 | Item | E-mail
Golden Hope Mines-Warrants Exercised - More
- October 25, 2006 | Item | E-mail
Adanac Moly Corp.: Drill Hole Cuts .137% Mo, .228% MOS2, Over 182.98 Metres, 600 ft, at Ruby Creek Molybdenum Project, Moly @ $25.75 US/lb - More
- October 25, 2006 | Item | E-mail
Cambodian Ventures Limited Commences Site Surveys on Two Properties in the Kratie Province of Cambodia - More
- October 25, 2006 | Item | E-mail
Candente Welcomes Thomas R. Rinaldi as Vice President of Operations - More
- October 25, 2006 | Item | E-mail
SA gold-firm earnings could outshine global rivals on rand - "Gold Fields, Harmony and AngloGold Ashanti may report gains in quarterly earnings that beat those of their North American rivals as a weakened rand cut costs and boosted revenue, Bloomberg reports. South Africa's second-largest gold producer, Gold Fields, kicks off the September quarter reporting season on Thursday, with analysts canvassed by Bloomberg suggesting that its profit, excluding exceptional items, rose 25% from the preceding three months." More
- October 25, 2006 | Item | E-mail
Court Nixes Goldcorp Shareholder Vote - "The friendly deal, valued at about US$8.6 billion, is supported by the directors of both companies and needs approval by two-thirds of Glamis shareholders. But Robert McEwen, who holds a 1.5 percent stake in Goldcorp, opposes the deal, saying it was too expensive and would cause too much share dilution, and that Glamis is not a good fit. "I am disappointed by the court's decision and remain convinced that having no shareholder vote on such a fundamental and dilutive transaction is not in the best interests of shareholders," McEwen said in a release late Tuesday." More
- October 25, 2006 | Item | E-mail
Cumberland to Receive Cdn$23 Million for Sale of Meliadine Gold Projects - "CUMBERLAND RESOURCES LTD. is pleased to announce that it has sold its Meliadine gold property interests, including its 22% interest in the Meliadine West project and its 50% interest in the Meliadine East project, to Resource Capital Funds for Cdn$23 million. As part of this transaction, RCF will assume the Company's contingent non-recourse loan obligation with respect to the Meliadine West gold project. In addition, RCF has agreed to a price adjustment of up to Cdn$2 million if additional ounces are outlined as a combined result of the 2006 drill program and a subsequent independent 43-101 resource estimate for Meliadine West." More
- October 25, 2006 | Item | E-mail
Gold Reserve to Delist All Issued and Outstanding Warrants - "Gold Reserve Inc. announced today that it is delisting all of the 2,680,500 issued and outstanding warrants of Gold Reserve Inc. listed on the Toronto Stock Exchange set to expire on November 6, 2006 and entitling each holder thereof to acquire one Class A common share of the Company at an exercise price of Cdn. $6.50." More
- October 25, 2006 | Item | E-mail
Gold Fields Limited Announces Executive Changes - "Mr Jacobsz will remain on the executive committee as senior vice president and head of corporate affairs. He will retain responsibility for the media, stakeholder relations and communication portfolios of the Group and, in addition, will assume responsibility for the sustainable development portfolio. Ms. Bodasing will be responsible for investor relations in all of Gold Fields'traditional investor markets of South Africa, Europe and North America, as well as the development of new markets in the Middle East and Asia." More
- October 25, 2006 | Item | E-mail
- Chris Mullen, Gold Seeker Report
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-- Posted 25 October, 2006 | |
