-- Posted 22 November, 2006 | | Source: SilverSeek.com
Note: All U.S. markets will be closed on Thursday in observance of Thanksgiving Day. The major stock indices will open for a half day on Friday, but the metals markets will remain closed in the U.S. The Gold Seeker Closing Report will return on Monday.
| Close | Gain/Loss |
Gold | $628.60 | +$0.50 |
Silver | $13.01 | -$0.03 |
XAU | 138.37 | +0.52% |
HUI | 332.03 | +0.65% |
GDM | 1054.84 | +0.47% |
JSE Gold | 2885.85 | +1.23% |
USD | 84.54 | -0.70 |
Euro | 129.27 | +0.83 |
Yen | 85.64 | +0.80 |
Oil | $59.24 | -$0.93 |
10-Year | 4.568% | -0.010 |
T-Bond | 113.21875 | +0.09375 |
Dow | 12326.95 | +0.04% |
Nasdaq | 1465.98 | +0.45% |
S&P | 1406.09 | +0.23% |
The Metals:
Gold fell a couple dollars in Asia before it rose to trade near unchanged in London and then gained over $5 to about $634 in midmorning New York trade, but it then fell off into the close and ended with only a slight gain. Silver rose to about $13.20 in midmorning New York trade before it also fell off into the close and ended with a small loss.
Euro gold fell back near €485, platinum lost $77 to $1,145, palladium lost $5 to $322, and copper remained at about $3.10.
Gold and silver equities rose about 2% in the first hour of trade before they fell back off and traded slightly lower in early afternoon trade, but they then rallied a bit for the rest of trade and ended with about 0.5% gains.
The Economy:
Report | For | Reading | Expected | Previous |
Initial Claims | 11/18 | 321K | 310K | 309K |
Michigan Sentiment | Nov | 92.1 | 93.0 | 92.3 |
There are no major economic reports for the rest of the week. Next week’s economic highlights include Durable Orders, Consumer Confidence, and Existing Home Sales on Tuesday, GDP, New Home Sales, and the Fed's Beige Book on Wednesday, Initial Claims, Personal Income and Spending, and the Help-Wanted Index on Thursday, and Construction Spending and the ISM Index on Friday.
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The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil fell over 1% as inventory reports showed crude inventories built a much more than expected 5.1 million barrels, gasoline inventories surprisingly built 1.4 million barrels, and distillates fell 1.2 million barrels which was about as expected. Losses did moderate by the close, however, as traders did not want to be caught short or not-long going into the extended weekend.
The U.S. dollar index fell markedly on U.S. economic growth concerns and on diversification into other currencies by other countries. The euro rose to a 5 and ½ month high.
Treasuries rose on economically disappointing Michigan Sentiment.
The Dow, Nasdaq, and S&P rose at the open, fell back off and found slight losses after Michigan Sentiment, and remained near unchanged to slightly higher for the rest of trade as oil and interest rates fell off.
Among the big names making news in the market today were Freeport-McMoran, Goldman Sachs, Heyman and LSE, Alcoa, Dell, and Texas Pacific, Macquarie, and Qantas.
The Commentary:
“Once again ….the gold derivatives numbers rose sharply in the first half of the year, while gold producers were reducing their forward sales position rather dramatically. The so-called gold establishment folks REFUSE to reconcile how this can be, since they have associated gold derivatives positions with the activity of the gold producers and their bullion dealers.
GATA has been pounding the table for years that a great number of these derivatives are related to the activities of the price suppressing Gold Cartel and THEIR lending activities.
Case closed … for the umpteenth time. For those who need a SMOKING GUN to feel comfortable with GATA’s claims, this is it … well, another one.” - From yesterday’s Midas report by Bill Murphy of LemetropoleCafe.com
“December Gold finished up 0.3 at 629, 6 off the high and 2 up from the low.
December Silver closed down 0.045 at 13.04. This was 0.04 up from the low and 0.21 off the high.
The gold bulls held up in the face of a series of deflating developments on Wednesday. In additional to an early follow through slide in platinum prices, the gold market was also forced to weather a sharp slide in oil prices and a generally defeating flow of US economic readings. In fact, about the only positive for the gold market was the sharp ongoing slide in the US Dollar and that is probably why the gold market was able to stay near unchanged for a large portion of the trading session. It is surprising that the gold market wasn't under pressure off the ongoing talk from IMF officials than some of their gold holdings will have to be sold to finance operations. Some players might also suggest that seeing gold spike up and fail to hold those gains is a major negative for prices. However, it should be noted that the market did make a new high for the move and seemed to respect the prior sessions closing value.
Like the gold market the silver market also managed to forge a new high for the move but generally failed to sustain the strong early action. Apparently significant weakness in the Dollar supported gold and silver prices and distracted the silver market away from the weakness in copper and platinum prices. However, the weakness in the industrial metals in some ways restrains the silver market and with the US economic reports on Wednesday hinting at weakness in the US economy, it is surprising that silver did not come under more intense selling pressure.” - The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
IMF talks about selling gold again
Corporate acquisitions for 2006 set record
Dollar falls amid concerns economy is slowing and Fed may ease
The Statistics:
As of close of business: 11/21-22/2006
Gold Warehouse Stocks: | 7,524,058 | - |
Silver Warehouse Stocks: | 108,218,641 | + 618,026 |
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 | 415.76 | 13,367,010 | US$ 8,345m |
LSE (London Stock Exchange) AND Euronext Paris | Gold Bullion Securities | 90.33 | 2,904,232 | US$ 1,831m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 10.37 | 333,020 | US$ 210m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 9.88 | 317,735 | US$ 198m |
Note: Change in Total Tonnes from yesterday’s data: The ASX added 0.06 tonnes.
COMEX Gold Trust (IAU)
Profile as of 11/21/2006 | |
Total Net Assets | $857,512,092 | Ounces of Gold
in Trust | 1,365,342.180 |
Shares Outstanding | 13,750,000 | Tonnes of Gold
in Trust | 42.47 |
Note: No change in Total Tonnes from yesterday’s data.
Silver Trust (SLV)
Profile as of 11/21/2006 | |
Total Net Assets | $1,372,125,332 | Ounces of Silver
in Trust | 106,231,357 |
Shares Outstanding | 10,650,000 | Tonnes of Silver
in Trust | 3,304.2 |
Note: No change in Total Tonnes from yesterday’s data.
The Stocks:
Barrick’s (ABX) bid for NovaGold (NG), Rubicon’s (RBY) drill program, Freeport-McMoran’s (FCX) buyout chatter, Cumberland’s final short form prospectus, Newmont’s (NEM) court ruling in Uzbekistan, Gold Fields (GFI) permission to proceed with its proposed acquisition of Western Areas, and Silver Standard’s (SSRI) drill results were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Freeport | FCX +5.80% $61.80 |
2. Claude Resources | CGR +4.80% $1.31 |
3. Rio Narcea | RNO +4.27% $2.44 |
LOSERS
1. U.S. Energy | USEG-5.47% $5.18 |
2. IAMGOLD | IAG -2.01% $9.25 |
3. Entree Gold | EGI -1.97% $1.49 |
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:
Rubicon Announces Start of McFinley Drill Program, Red Lake, Ontario - "David W Adamson, President and CEO of Rubicon Minerals Corp. (TSX:RMX.TO - News)(AMEX:RBY - News) is pleased to announce that a planned 2000-metre Phase I drill program will commence at the Company's 100% controlled McFinley property in Red Lake Ontario on or around November 27, 2006. The McFinley project is strategically located in the heart of the prolific Red Lake gold camp and is host to the Rubicon's Phoenix Gold Zone discovery which currently has a strike length of 500 metres and has been drilled to a depth of 200 metres." More
- November 22, 2006 | Item | E-mail
Rocmec Announces Closing of Second Tranche of Debenture Financing - More
- November 22, 2006 | Item | E-mail
Freeport-McMoran shares rise again on buyout chatter -
"Shares in miner Freeport-McMoRan Copper & Gold Inc. (FCX.N: Quote, Profile, Research) jumped to a six-month high on Wednesday driven by a second day of speculation the company could be a takeover target. Shares in the company, which said on Sunday it would buy larger peer Phelps Dodge Corp. (PD.N: Quote, Profile, Research) for $25.9 billion, leapt nearly 8 percent to $63.00 earlier in the day, before pulling back to $60.00, up 2.7 percent, near midday. Speculation that Australian BHP Billiton Ltd/Plc (BHP.AX: Quote, Profile, Research) (BLT.L: Quote, Profile, Research) could launch a bid for Freeport-McMoRan surfaced on Tuesday, pushing shares in the U.S. company up 5 percent." More
- November 22, 2006 | Item | E-mail
Gold Canyon Closes First Tranche of Private Placement for US$189,250 - More
- November 22, 2006 | Item | E-mail
Noront Grants Option- Mid-Matra Project, Hungary - More
- November 22, 2006 | Item | E-mail
Valley High announces commencement of 5,000 metre drill program - More
- November 22, 2006 | Item | E-mail
High River Gold Starts Drilling at Bissa - More
- November 22, 2006 | Item | E-mail
Barrick soldiers on despite low NovaGold support - "Barrick Gold Corp. (ABX.TO: Quote, Profile, Research) is showing no sign it will give up trying to buy fellow gold miner NovaGold Resources Inc. (NG.TO: Quote, Profile, Research), even though it is getting less support for its hostile takeover bid than it did two weeks ago.
About 14 percent of NovaGold's shares were deposited to Barrick's offer of $16 a share as of Nov. 22. That is less support than Barrick received two weeks ago, when about 22.5 percent of NovaGold's shares were deposited to its offer." More
- November 22, 2006 | Item | E-mail
First Metals Reports Positive Milling Test Results - More
- November 22, 2006 | Item | E-mail
Cumberland Issues Final Short Form Prospectus and Announces Exercise of Over-Allotment for Total Gross Proceeds of Approximately CDN$100 Million - "Cumberland Resources Ltd. (TSX:CLG.TO - News)(AMEX:CLG - News) (the "Company" or "Cumberland") is pleased to announce that the Company has received a receipt for its final short form prospectus relating to the bought deal financing announced on November 2, 2006 (News Release #06-19), pursuant to which the Company will issue 16,100,000 common shares at a price of CDN$5.40 per common share, for gross proceeds of approximately CDN$87 million, pursuant to an agreement with a syndicate of Canadian underwriters (collectively, the "Underwriters")." More
- November 22, 2006 | Item | E-mail
Drilling Confirms LF 16 Mineralization - More
- November 22, 2006 | Item | E-mail
Mawson commences drilling of Tasjo uranium project and doubles holding of uranium mineralized trend - More
- November 22, 2006 | Item | E-mail
Queenston Reports Results of Exploration Drilling on the Sierra Almoloya Project, Mexico - More
- November 22, 2006 | Item | E-mail
AXMIN Inc.: Passendro Gold Project, Central African Republic - More
- November 22, 2006 | Item | E-mail
South African Competition Tribunal Gives Gold Fields Permission to Proceed With its Proposed Acquisition of Western Areas Limited - "
Ian Cockerill, Chief Executive Officer of Gold Fields, said: "We are delighted that all conditions precedent have now been met and that we can move towards the successful completion of these transactions." "Following today's ruling we can close the transaction with Barrick Gold through which we will acquire their 50% stake in South Deep. Western Areas shareholders can now also accept Gold Fields' offer in terms of which we aim to acquire all of those Western Areas shares which we do not already own," said Cockerill." More
- November 22, 2006 | Item | E-mail
Breakwater provides update on status of road closure into Myra Falls operation - More
- November 22, 2006 | Item | E-mail
Continuum Resources appoints new director - More
- November 22, 2006 | Item | E-mail
NovaGold Shareholders Once Again Overwhelmingly Reject Hostile Takeover Bid - "Once again, NovaGold's shareholders have sent Barrick a clear message that their US$16 bid is inadequate," said Rick Van Nieuwenhuyse, President and CEO of NovaGold. "With so few shares tendered to Barrick's bid, clearly the vast majority of our shareholders agreed with NovaGold's Board and management that the Company's world-class assets and production growth profile are worth more than Barrick's offer. Barrick challenged NovaGold shareholders to make a decision, and they have clearly decided that Barrick's 'best' offer of US$16 is just not enough for control of NovaGold." More
- November 22, 2006 | Item | E-mail
Golden China Announces Private Placement Financing - More
- November 22, 2006 | Item | E-mail
Millstream Updates Progress at Its Tamarack Gold Property - More
- November 22, 2006 | Item | E-mail
Amerix Renews All Exploration Licenses for Vila Porto Rico - More
- November 22, 2006 | Item | E-mail
Alturas Identifies a New Porphyry Target at Huilacollo Gold Project, Peru - More
- November 22, 2006 | Item | E-mail
Western Troy's President to Moderate Molybdenum Forum at San Francisco Hard Asset Investment Conference - More
- November 22, 2006 | Item | E-mail
Cusac Gold Mines Ltd.: Oro System Yields 2.25 Meters of 7.32 Grams Gold '0.214 opt' - More
- November 22, 2006 | Item | E-mail
Beijing Quan Tong Chang Information Services Limited Launches 'Intragroup Call' Broadband Phone Promotion in Beijing, Targets for US $1.5 Million Profit Yearly - More
- November 22, 2006 | Item | E-mail
Sheffield Increases Copper and Silver Grades - More
- November 22, 2006 | Item | E-mail
Westchester Resources Initiates Drilling on Peters Mine Property - More
- November 22, 2006 | Item | E-mail
NioGold cuts new gold zone near surface at Marban returning 10.77 g/t gold over 4.0 metres - More
- November 22, 2006 | Item | E-mail
Jinshan Plans to Start Mining in December 2006 Signs on Mining Contractor - More
- November 22, 2006 | Item | E-mail
Beartooth Platinum Announces Conference Call and Webcast Notification - More
- November 22, 2006 | Item | E-mail
Olympias Gold Concentrates Sold to Celtic Resources - More
- November 22, 2006 | Item | E-mail
Trigon Completes Geophysical Work and Expands Land Package at Its Marysvale Uranium Project - More
- November 22, 2006 | Item | E-mail
Amarillo to Commence Drilling at Lavras do Sul; Executes Formal Option Agreement with Rio Tinto - More
- November 22, 2006 | Item | E-mail
Centurion and Partners Escopeta Announce Final Reports on Alaskan Leases with Higher Than Expected NPVs - More
- November 22, 2006 | Item | E-mail
De Beira Goldfields Inc.: Further Encouraging Underground Sampling Results From the Minanca Project, Ecuador - More
- November 22, 2006 | Item | E-mail
Barrick Acquires 14% of NovaGold-Extends Bid - "Barrick Gold Corporation (NYSE:ABX - News)(TSX:ABX.TO - News)(London:BGD.L - News) announced today that approximately 13.2 million common shares of NovaGold Resources Inc. had been validly deposited to Barrick's offer to acquire NovaGold, representing over 14% of the outstanding common shares of NovaGold. Barrick has taken up and accepted for payment all of such shares; payment will be made for these shares on or before November 24, 2006. The Company has extended its all-cash US$16.00 per share offer to 9:00 p.m. (Toronto time) on December 6, 2006." More
- November 22, 2006 | Item | E-mail
Uzbekistan to Ignore Ruling on Investment - "In August, an Uzbek court declared bankrupt a local joint venture of Newmont Mining Corp., one of the world's largest gold producers. Newmont said it would challenge the action through international arbitration." More
- November 22, 2006 | Item | E-mail
Silver Standard Reports 786 Feet of 0.05 Oz./Ton Gold From Snowfield Project in Canada - "Silver Standard Resources Inc. (TSX:SSO.TO - News)(NASDAQ:SSRI - News) is pleased to report remaining diamond drilling results from the Snowfield gold project in northern British Columbia. The property is located 40 kilometers north of the town of Stewart and 15 kilometers southeast of Barrick's high-grade gold-silver mine at Eskay Creek. The following table sets out assay results for the final seven holes of the 27 holes totalling 6,141 meters completed." More
- November 22, 2006 | Item | E-mail
- Chris Mullen, Gold Seeker Report
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-- Posted 22 November, 2006 | |
