-- Posted 31 October, 2006 | | Source: SilverSeek.com
| Close | Gain/Loss |
Gold | $604.10 | -$0.30 |
Silver | $12.20 | +$0.08 |
XAU | 137.31 | +2.61% |
HUI | 318.84 | +2.29% |
GDM | 1030.36 | +2.46% |
JSE Gold | 2804.13 | -2.15% |
USD | 85.33 | -0.23 |
Euro | 127.62 | +0.36 |
Yen | 85.53 | +0.38 |
Oil | $58.73 | +$0.37 |
10-Year | 4.606% | -0.067 |
T-Bond | 112.65625 | +0.75 |
Dow | 12080.73 | -0.05% |
Nasdaq | 2366.71 | +0.12% |
S&P | 1377.94 | +0.00% |
The Metals:
Gold fell about $5 in Asia and remained near $600 in London before it fell to as low as $597.70 in early New York trade, but it then rallied nearly $10 higher, fell back off about $5, rallied again into the close, and ended a couple dollars off of its highs with a slight loss of just 0.05%. Silver fell to as low as $11.90 in early New York trade before it rallied throughout most of the rest of trade and ended near its highs with a gain of 0.66%.
Euro gold remained at about €475, platinum lost $5 to $1,080, palladium lost $5 to $318, and copper fell slightly to about $3.34.
Gold and silver equities steadily rose throughout trade and ended with over 2% gains.
The Economy:
Report | For | Reading | Expected | Previous |
Employment Cost Index | Q3 | 1.0% | 0.9% | 0.9% |
Chicago PMI | Oct | 53.5 | 58.0 | 62.1 |
Consumer Confidence | Oct | 105.4 | 107.8 | 105.9 |
Tomorrow at 10AM EST are Construction Spending for September expected at 0.0% and the ISM Index for October expected at 53.0
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The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil continued to fall in early trade on ample supplies which are at higher levels compared to this time last year and are expected to build further in inventory reports tomorrow, but a short covering rally in late trade brought prices higher by the close.
The U.S. dollar index fell and treasuries rose on mostly poor economic data that pushed interest rates lower.
The Dow, Nasdaq, and S&P remained near unchanged on mixed earnings reports and poor economic data that raised concerns about consumer spending.
Among the big names making news in the market today were Hilton Hotels, Lowes, Martha Stewart, United Airlines, Visteon, Procter & Gamble, U.S. Steel, CB Richard Eliis and Trammell Crow, and Kodak.
The Commentary:
“Grandich Letter Special Alert:
GOLD – Ready to Shine Again
By Peter Grandich
October 31, 2006
11:00 a.m. EST
Outside of correctly stepping aside for a few major corrections, I’ve maintained a staunchly bullish stance towards gold since the spring of 2003. After seemingly everyone and their mother rushed into the bullish camp earlier this year, gold has been on the defensive and has led some to believe the bull market is over. While it’s not out of the woods yet, it appears ready to rock n’ roll again.
Strong physical demand, geopolitical problems here and abroad set to get worse, and a terminally ill U.S. Dollar are among the primary bullish factors for gold. Throw in a belief that a party or parties have tried to suppress the gold price (but are failing), and we have all the makings for a big rally into the New Year.
I’ve spoken often about the $610 area being the all-clear level. What was once support became resistance after September 11th, but a bullish bottoming formation has formed since then. I believe we can see a powerful move up on a close above $610-$612. It appears a question of when, not if.
Quick note on Uranium –
Of all the metals, I’ve been the most bullish on uranium. I’ve often called it the no-brainer metal. My target was originally $50 when it was under $20 and I raised it to $75 a few months back. We may need to raise it again and $100 could become a reasonable target. I believe this commentary on uranium is spot-on and says much of what I feel about uranium’s future.
http://www.financialsense.com/editorials/gue/2006/1030.html
Copper meanwhile, has formed a very bearish broadening top and appears only a question of when, not if, it falls sharply. See http://futures.tradingcharts.com/chart/CP/W
I plan on doing an extensive update after the U.S. elections.” - Peter Grandich, Grandich Letter
“It was great to have gold break out the way it did early today. But the tedium of watching The Gold Cartel cap early surges is most tiresome. Gold made it up to that $611 mark not long after the Comex opening and that was all she wrote. It was setback time after that. Then, after sitting on gold up $8/$9 most of the trading session, The Gold Cartel bullion banks hit the close. Thus a day that could have been filled with excitement was replaced by one of disgust.
Tomorrow could be a very key one. We ought to come in lower. IF we do and then can close over today’s high, it ought to be off to the races time. However, we have to keep in mind the last time gold traded like this above $600, the bad guys came back with a vengeance and bombed us. Yet, my bet remains that we move "irregularly higher" into the elections. So far so good.” - From yesterday’s Midas report by Bill Murphy of LemetropoleCafe.com
“December Gold finished down 0.6 at 606.8, 2.5 off the high and 6.3 up from the low.
December Silver closed up 0.02 at 12.27. This was 0.29 up from the low and 0.04 off the high.
The bull camp was simply impressive in the action Tuesday and that marks the second session in a row where the influence of a sharp slide in oil prices was mostly ignored by the gold trade. While some might suggest that oil prices most fluctuated around unchanged, the fact that December crude oil at times reached the lowest level since June of 2005 could easily have resulted in concentrated selling action in the gold market. Apparently the gold market took the softer than expected US economic data as a sign of uncertainty or perhaps saw the data as a precursor to developing pattern of lower US Dollar pricing. With a number of bullish long term gold price forecasts recently suggesting that a weaker Dollar would be the basis for a sustained rally in gold, the action Tuesday is potentially viewed as a major inflection point. In fact, seeing the gold market slide down to the critical $600 level on the charts and then rebound sharply in the face of periodic extreme weakness in oil prices, grain prices and declines in the equity market, certainly seems to give off the impression of a flight to quality track.
Like the gold market, the silver market seemed to be poised to fail early in the session Tuesday and indeed fell right down to critical chart support of $12.00 before bouncing rather impressively into the afternoon action. As suggested in the gold commentary, the precious metals markets seemed to have further isolated their actions from the oil market and for the silver market to discount weakness in the equity market and periodic selling in copper, really seems to play down the physical commodity market connection. In short, it would seem that the currency market influence is attempting to assume the leadership role for the precious metals and given the flow of US economic readings recently, it now appears as if progressively weaker US Data will benefit, instead of hindering the silver market.” - The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
UAE may make decisive shift away from dollar reserves
Ben Stein: Has corporate America no shame? Or no memory?
Interview with GATA Chairman Murphy available on free CD
The Statistics:
As of close of business: 10/30/2006
Gold Warehouse Stocks: | 7,565,823 | - |
Silver Warehouse Stocks: | 105,312,961 | - |
Global Gold ETF Holdings
[WGC Sponsored ETF’s]
| Product name | Total Tonnes | Total Ounces | Total Value |
New York Stock Exchange (NYSE) AND Singapore Exchange (SGX) | Streettracks Gold Shares | 388.72 | 12,497,746 | US$ 7,543m |
LSE (London Stock Exchange) AND Euronext Paris | Gold Bullion Securities | 83.67 | 2,689,927 | US$ 1,631m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 10.08 | 323,851 | US$ 196m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 9.89 | 317,812 | US$ 193m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU)
Profile as of 10/30/2006 | |
Total Net Assets | $825,626,139 | Ounces of Gold
in Trust | 1,365,789.764 |
Shares Outstanding | 13,750,000 | Tonnes of Gold
in Trust | 42.48 |
Note: Change in Total Tonnes from yesterday’s data: 0.62 tonnes were removed from the trust.
Silver Trust (SLV)
Profile as of 10/30/2006 | |
Total Net Assets | $1,270,446,804 | Ounces of Silver
in Trust | 104,776,594 |
Shares Outstanding | 10,500,000 | Tonnes of Silver
in Trust | 3,258.9 |
Note: No change in Total Tonnes from yesterday’s data.
The Stocks:
NovaGold’s (NG) reiterated rejection recommendation of Barrick’s (ABX) increased bid, Metallica’s (MRB) reinstated explosives permit, Cambior’s (CBJ) struck and dismissed lawsuit, Freeport-McMoRan Copper & Gold’s (FCX) Board of Directors election and supplemental common stock dividend, Harmony’s (HMY) gold mining strategy, Richmont’s (RIC) Valentine Lake Gold project update, Randgold’s (GOLD) directorate change, Newmont’s (NEM) joint venture in Uzbekistan, earnings from Harmony (HMY), Northgate (NXG) and Buenaventura (BVN), Palmarejo’s (PJO.V) project update and drill results, and Esperanza’s (EPZ.V) and Silver Standard’s (SSRI) drill results were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Metallica | MRB+10.97% $3.44 |
2. Cardero | CDY+10.43% $1.80 |
3. Taseko | TGB +7.11% $2.56 |
LOSERS
1. Vista Gold | VGZ-9.70% $8.56 |
2. Northgate | NXG-3.87% $3.23 |
3. Rio Narcea | RNO-2.07% $2.84 |
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:
Wildcat Assay Results From Hardshell Property - More
- October 31, 2006 | Item | E-mail
NovaGold spurns sweeter Barrick offer as too low - "Last week, Barrick raised its hostile offer to $16 a share from $14.50 and called the all-cash deal, worth a total of $1.7 billion, its best and final offer. "No one was interested in just a bump," said NovaGold Chief Executive Rick Van Niewenhuyse. The offer expires on Nov. 7. Barrick, the world's biggest gold producer, requires 50.1 percent to win control of the company." More
- October 31, 2006 | Item | E-mail
Metallica Resources Announces Reinstatement of Explosives Permit for Cerro San Pedro Project, Mexico - "Metallica Resources Inc. today announces that its wholly-owned Mexican subsidiary, Minera San Xavier, S.A. de C.V. ("MSX"), has received notice that its explosives operating, or blasting, permit issued from SEDENA (Secretaria de Defensa National) for the Cerro San Pedro ("CSP") heap leach gold and silver project for calendar year 2006 has been reinstated." More
- October 31, 2006 | Item | E-mail
Tagish Reports that Hole SC06-71 intersected 18.00 g/t Gold and 470.0 g/t Silver over 1.10 metres - More
- October 31, 2006 | Item | E-mail
Cambior Inc: Omai Lawsuit Struck and Dismissed - "Honourable Mr Justice Carl Singh, of the High Court of the Supreme Court of Judicature of Guyana has ordered that the $2 billion representative action taken against Omai Gold Mines Limited and other defendants following the 1995 tailing's dam incident be struck out and dismissed. The judge also awarded the costs in favour of the defendants Omai Gold Mines Ltd. Omai Gold Mines Limited is a subsidiary of Cambior inc." More
- October 31, 2006 | Item | E-mail
Freeport-McMoRan Copper & Gold Inc. Announces Election of Richard C. Adkerson to its Board of Directors - "Mr. Adkerson, age 59, graduated with highest honors in 1969 and received an MBA degree in 1970 from Mississippi State University. In 1988, he completed the Advanced Management Program of the Harvard Business School. Prior to joining Freeport-McMoRan, he worked extensively with the Company, initially as an auditor and later as a financial advisor." More
- October 31, 2006 | Item | E-mail
Freeport-McMoRan Copper & Gold Inc. Announces $1.50 Per Share Supplemental Common Stock Dividend - "Freeport-McMoRan Copper & Gold Inc. announced today that its Board of Directors has authorized a supplemental common stock dividend of $1.50 per share to be paid on December 29, 2006 to shareholders of record as of December 14, 2006. The supplemental dividend to be paid in December represents an addition to FCX's regular quarterly common stock dividend of $0.3125 per share (equivalent to $1.25 per share per annum) payable November 1, 2006." More
- October 31, 2006 | Item | E-mail
Golden Peaks Resources Ltd. - La Fortuna Field Up-Date - More
- October 31, 2006 | Item | E-mail
Coastal Copper Project: Phase 2 Drilling Expands Double Ed Massive Sulphide Deposit - More
- October 31, 2006 | Item | E-mail
Bolivia mining reform will move slowly - Morales - "Bolivia will reform and modernize its dilapidated mining industry, but it will leave more radical parts of the shake-up until next year due to lack of funds, President Evo Morales said on Tuesday. The leftist government has trumpeted dramatic steps to increase state control of the mining industry just months after it nationalized the energy sector, but Morales told reporters measures that could affect private firms were not imminent." More
- October 31, 2006 | Item | E-mail
Taranis Acquires Reservations On Several Targets in Finland and Plans Airborne Geophysical Surveys - More
- October 31, 2006 | Item | E-mail
Gold Canyon Discovers North-West Extension of Main Trend At Bear Head Uranium Project - More
- October 31, 2006 | Item | E-mail
Kimberly Gold Appoints New Director - More
- October 31, 2006 | Item | E-mail
Plexmar Resources Inc./Bolsa Del Diablo: Airborne Survey and Sampling Results - More
- October 31, 2006 | Item | E-mail
Big Red Diamond Signs Option to Acquire Two Uranium Properties in Quebec - More
- October 31, 2006 | Item | E-mail
Barrick Says NovaGold Shareholders Have a Choice on November 7th - "We believe that NovaGold shareholders should consider our premium all-cash offer of US$16 as money in the bank," said Greg Wilkins, President and Chief Executive Officer. "The choice is cash in the bank versus significant project risk and financial dilution." More
- October 31, 2006 | Item | E-mail
Canyon Copper acquires additional claims at the New York Canyon copper project - More
- October 31, 2006 | Item | E-mail
Klondike Star Releases More Lone Star Project Drilling Results - More
- October 31, 2006 | Item | E-mail
D'Arianne Resources Inc.: New Significant Results from the Opinaca Property, James Bay - More
- October 31, 2006 | Item | E-mail
Miranda's JV Partner Begins Drilling on Horse Mountain - More
- October 31, 2006 | Item | E-mail
Tumi Resources commences airborne EM geophysical surveys at Tomtebo, Oster Silverberg and Vitturn projects, Bergslagen District, Sweden - More
- October 31, 2006 | Item | E-mail
Duncan Park Holdings Corporation Announces Results of Recently Completed Drilling Program of Geophysical Targets at the Elephant Property, Nevada - More
- October 31, 2006 | Item | E-mail
Zaruma Resources reports on Third Quarter 2006 (all figures in US $) - More
- October 31, 2006 | Item | E-mail
Etruscan's Youga Gold Project advances to production - More
- October 31, 2006 | Item | E-mail
Samira Hill Is Back In Operation - More
- October 31, 2006 | Item | E-mail
John McBride Joins the Board of Directors of Normabec - More
- October 31, 2006 | Item | E-mail
Boliden Doubles Ore Production at Aitik and Creates One of the World's Most Efficient Mines - More
- October 31, 2006 | Item | E-mail
Millstream Shows Progress at its Tamarack Gold Property - More
- October 31, 2006 | Item | E-mail
Copper Ridge options Borealis Uranium property - More
- October 31, 2006 | Item | E-mail
Shareholders vote in favor of the Detour Lake asset transfer resolution - More
- October 31, 2006 | Item | E-mail
Champion Bear receives encouraging prospecting results from its Halcyon Property located northeast of Sudbury, Ontario - More
- October 31, 2006 | Item | E-mail
Asia Now Appoints Douglas Scharf as Chairman - More
- October 31, 2006 | Item | E-mail
Osisko Intersects 131 Metres Averaging 1.34 g/t Au in Sladen Extension - More
- October 31, 2006 | Item | E-mail
Intrepid Mines Reports Results for First Quarter 2007 - More
- October 31, 2006 | Item | E-mail
Norsemont Reports Additional Drill Intercepts at the Constancia Project - More
- October 31, 2006 | Item | E-mail
Twenty-Seven Capital Corp. to be Acquired by Mega Uranium Ltd. - More
- October 31, 2006 | Item | E-mail
Alberta Star Finalizing Drill Assay Data and Field Exploration Results on Its Eldorado & Contact Lake IOCG & Uranium Target Areas - More
- October 31, 2006 | Item | E-mail
Alberta Star Finalizing Drill Assay Data and Field Exploration Results on Its Eldorado & Contact Lake IOCG & Uranium Target Areas - More
- October 31, 2006 | Item | E-mail
Landmark Completes $405,000 Financing - More
- October 31, 2006 | Item | E-mail
Aldershot Resources Ltd.: Yuinmery Airborne Survey Completed and Final Results Received - More
- October 31, 2006 | Item | E-mail
Ultra analysing drill holes at Kalnica-Selec uranium deposits in Slovakia - More
- October 31, 2006 | Item | E-mail
Forum Uranium Provides Drilling Update on Key Lake Road Project - More
- October 31, 2006 | Item | E-mail
Pitchstone & Uranium One Resume Darby-Candle Drilling - More
- October 31, 2006 | Item | E-mail
UraniumCore Company Adds Ken Lunde to Board of Directors - More
- October 31, 2006 | Item | E-mail
Purepoint Uranium Group Inc: Appoints Chief Geophysicist, Roger Watson - More
- October 31, 2006 | Item | E-mail
Haber, Inc. Updates Progress on Gold Processing Facility in United States - More
- October 31, 2006 | Item | E-mail
Central Asia Gold Limited - ASX Quarterly Report September 2006 - More
- October 31, 2006 | Item | E-mail
Midland Minerals Announces Transfer of Sian Open Pit Gold Mines and Mining Lease Gets Ghana Government Approval - More
- October 31, 2006 | Item | E-mail
Haber, Inc. Acquires Large-Scale Gold Concession and Option on Second Concession in Ghana's Gold Prolific Western and Brong Ahafo Regions - More
- October 31, 2006 | Item | E-mail
High-Grade Gold-Sulphide Mineralization Intersected by Drilling at Golden China's Beyinhar Project - More
- October 31, 2006 | Item | E-mail
AuEx Ventures, Inc.: Long Canyon Road Cut Sampling Exposes New Gold Mineralization - More
- October 31, 2006 | Item | E-mail
Sunridge Gold Commences US$500,000 Ground Gravity Survey at Asmara Project, Eritrea - More
- October 31, 2006 | Item | E-mail
Tara Gold Partners La Millonaria for Production and Exploration - More
- October 31, 2006 | Item | E-mail
Trade Winds Provides Additional Information for Dimensions of 2.3 Million Oz Gold Resource Calculation Announced October 27, 2006 - More
- October 31, 2006 | Item | E-mail
Enterayon Completes Drilling Program With Gold-Silver Intersections at Horseshoe Property - More
- October 31, 2006 | Item | E-mail
NewWest Gold Corporation Reports Positive Results of Roadcut Rock-chip Samples at Long Canyon - More
- October 31, 2006 | Item | E-mail
Itronics Reports Two New Photochemical Management Service Contracts; Photochemical Services Revenues Could Triple - More
- October 31, 2006 | Item | E-mail
16.03 G/T AU and 5.86 G/T intersected and confirmed continuity of the zone to 550 meters at Vassan property - More
- October 31, 2006 | Item | E-mail
Candente-Orex Announce Drilling Underway at Pamel Property, Central Peru - More
- October 31, 2006 | Item | E-mail
Troy Resources NL: Quarterly Report for the Three Months Ending 30 September 2006 - More
- October 31, 2006 | Item | E-mail
Palmarejo Silver and Gold Corporation Reports on Development and Construction Activities and New Drilling Results - "During the September 2006 quarter, construction work commenced on the lower plant site area. The old plant and buildings were removed and the earthworks were started. The construction contractor established the construction camp and facilities for 300 personnel and mobilized to site the crushing/screening plant and concrete batch plant. Earthworks on the lower and upper plant sites are scheduled to be completed during the next quarter and the concrete foundations commenced to allow steel work erection to commence at the start of 2007." More
- October 31, 2006 | Item | E-mail
Harmony mines higher grades of gold - "Harmony Gold, the world’s fifth largest gold producer, plans to continue producing gold at higher grades of 5g/t over the next three to six months in order to boost the company’s performance." More
- October 31, 2006 | Item | E-mail
Harmony posts first headline profit in 3 years - "South Africa's Harmony Gold posted its first headline profit in three years on Tuesday, topping analysts' forecasts, on the back of higher output and a weak rand that boosted revenues. Although investors welcomed the results, sending shares higher, some were wary about the future." More
- October 31, 2006 | Item | E-mail
InnovExplo Defines Next Phase of Exploration for Valentine Gold Lake Project - "The overall objective at Valentine Lake is to confirm and extend several gold mineralized zones: Valentine West; Leprechaun Pond; Osprey Pond; Victoria Bridge and Valentine East (Guano Pit). InnovExplo has concluded these main occurrences represent a significant gold potential and also illustrate targets for new discoveries at these locations. Geochemical sampling yielded anomalous gold values over the entire 27 kilometer structure." More
- October 31, 2006 | Item | E-mail
NovaGold Board Recommends Shareholders REJECT Barrick's Amended Hostile Bid - "The Special Committee and full Board unanimously determined that Barrick's amended bid still falls well short of reflecting the value inherent in NovaGold, its world-class portfolio of gold, silver and copper projects and potential growth opportunities." More
- October 31, 2006 | Item | E-mail
Randgold Resources announces Directorate Change - "Randgold Resources announces the retirement of a senior director, Mr Jean-Antoine Cramer, with effect from 27 October 2006. Mr Cramer, a retired Swiss banker, joined the company's board at the time of its initial IPO in July 1997. The board thanks him for his contribution over the last nine years." More
- October 31, 2006 | Item | E-mail
Esperanza Silver Corporation and Silver Standard Resources Inc.: Drilling Confirms San Luis' Bonanza Gold and Silver Grades - "As a result of the positive drilling results, a second drill rig has been contracted and is expected on-site in mid-December. Drilling is planned to continue through the December-to-March rainy season. Also, a local geologic consulting group has been engaged to undertake a stream-sediment sampling program over the entire claim block with the objective of identifying additional areas for detailed prospecting." More
- October 31, 2006 | Item | E-mail
Uzbekistan to take control over Newmont JV -source - "Uzbekistan's government may take over a gold mining joint venture previously half-owned by U.S.-based Newmont Mining Corp. by the end of the year, a source close to the procedure said on Tuesday. Two foreign gold companies including Newmont have run into problems after the West condemned Uzbekistan over a government crackdown on a rebellion in Andizhan last year." More
- October 31, 2006 | Item | E-mail
- Chris Mullen, Gold Seeker Report
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-- Posted 31 October, 2006 | |
