-- Posted 8 December, 2006 | | Source: SilverSeek.com
| Close | Gain/Loss | On Week |
Gold | $626.80 | -$4.70 | -2.84% |
Silver | $13.75 | -$0.12 | -1.57% |
XAU | 143.65 | -1.70% | -2.72% |
HUI | 345.03 | -2.08% | -2.50% |
GDM | 1097.46 | -1.81% | -2.56% |
JSE Gold | 2912.12 | +0.89% | -5.31% |
USD | 83.32 | +0.57 | +1.03% |
Euro | 132.05 | -0.84 | -0.92% |
Yen | 85.88 | -0.94 | -0.99% |
Oil | $62.03 | -$0.46 | -2.21% |
10-Year | 4.552% | +0.069 | +2.87% |
Bond | 113.3125 | -0.75 | -1.15% |
Dow | 12307.49 | +0.24% | +0.93% |
Nasdaq | 2437.36 | +0.40% | +1.00% |
S&P | 1409.84 | +0.18% | +0.94% |
The Metals:
Gold traded mostly slightly higher in Asia, fell a couple dollars in London, found about $5 gains for most of morning trade in New York, dropped about $10 from its highs after the dollar found strength on some comments from treasury secretary Paulson a little at 11:30AM EST, and closed near its lows with a loss of 0.74%. Silver traded mostly slightly lower in Asia and London before it found nearly 10 cent gains in morning New York trade, but it also fell off after Paulson’s comments and ended near its lows with a loss of 0.87%.
Euro gold fell slightly but remained near €475, platinum lost $17 to $1,106, palladium remained unchanged at $326, and copper rose about a penny to roughly $3.08.
Gold and silver equities rose about 1% at the open, but they soon fell off and closed with about 2% losses.
The Economy:
Report | For | Reading | Expected | Previous |
Nonfarm Payrolls | Nov | 132K | 105K | 79K |
Unemployment Rate | Nov | 4.5% | 4.5% | 4.4% |
Hourly Earnings | Nov | 0.2% | 0.3% | 0.4% |
Average Workweek | Nov | 33.9 | 33.9 | 33.9 |
Michigan Sentiment | Dec | 90.2 | 92.0 | 92.1 |
The BLS net birth/death adjustment added 29,000 jobs to November’s payrolls. Services added 172,000 payrolls while builders cut 29,000 jobs.
All of this week’s economic reports:
Next week’s economic highlights include Wholesale Inventories on Monday, the Trade Balance, Treasury Budget, and FOMC policy statement on Tuesday, Retails Sales and Business Inventories on Wednesday, Initial Jobless Claims and Export and Import Prices on Thursday, and CPI, the NY Empire State Index, Net Foreign Purchases, Capacity Utilization, and Industrial Production on Friday.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil rose for most of trade on worries over violence in Nigeria and more talk about another OPEC cut, but it fell off by the close and ended nearly 1% lower on warm weather forecasts and uncertainty about OPEC’s meeting next week.
The U.S. dollar index initially rose after the jobs report before it fell back off as traders looked into the report and saw a sharp drop in construction jobs and Michigan Sentiment came in lower than expected, but it then rose after a CNBC interview with treasury secretary Paulson a little after 11:30AM EST. Paulson spoke about a strong economy and said China needs more foreign exchange flexibility. Although more foreign exchange flexibility means a stronger yuan, traders somehow interpreted that as bullish for the dollar. Perhaps talk about a strong economy reignited some hopes for an interest rate increase, rather than a cut, next year.
Treasuries fell after the jobs report came in mostly strong, especially in the service sector.
The Dow, Nasdaq, and S&P rose on an overall stronger than expected jobs report that reduced concerns the economy is slowing too quickly.
Among the big names making news in the market Friday were Citigroup, Bank of America and Barclays, and McDonald’s.
The Commentary:
“The assault on gold has been relentless this past week. It fell to $624.60 before recovering smartly on the close to finish higher. Why the orchestrated recent takedown?
*Could be because of the dire nature of the Baker/Hamilton report on Iraq.
*Could have something to do with the coming Bernanke/Paulson trip to China.
There is talk circulating in the smart money circles that China is going to insist the US raise interest rates to defend the dollar. If we don’t, word is, they are going to pull out of the dollar to a substantial degree.
If this talk is even close to the mark, the US is in big trouble, either way. The dollar goes or our financial/real estate markets go.”- From yesterday’s Midas report by Bill Murphy of LemetropoleCafe.com
“Whipsaw price action in the US Dollar created a very volatile day in the gold market as currency movements seem to be the biggest influence of the precious metals markets recently. Gold was initially pushed down early in Friday's session as a better than expected Nov payroll number rallied the Dollar. But the Dollar soon sold off and gold rebounded on a soft U of M mid-December sentiment reading. By mid session however, Dollar friendly comments by the US Treasury Secretary and his somewhat negative comments on the Chinese Yuan reversed the Dollar's direction to the upside once again with a tremendous wave of Dollar buying and Yen selling that put pressure on the gold market for the balance of the session. Other supportive news for gold had little influence on today's trade, but included a major brokerage firm touting the bullish supply/demand fundamentals for gold and lifting their 2007 though 2010 price projections. Also, the chief finance officer at South African's Gold Fields Ltd said he did not expect to see the big hedge position at the recently acquired South Deep mine to exist for a long period.
The silver market followed gold's lead as a gyrating Dollar created yo-yo price action. With the Dollar seeing a surge in short covering buying, March silver ended the day in negative territory. The Nov payroll data did show declines in construction and factory jobs and as an industrial metal the softness in these sectors is somewhat disappointing. While silver did not see the type of aggressive buying that developed during Thursday's action as prices dipped, rising speculative fund buying in silver through exchange traded silver funds is a source of support that could limit a technical pull back in the market. A more volatile trade is likely to be seen as volume begins to thin as the end of the year approaches.”- The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Leading Asian economist urges joint action on dollar
In glitter and glory, the Rock of All Ages
Gold is magnificent at the museum but it is no museum piece
Asian Development Bank official urges management of dollar's fall
IMF said ready to propose proper accounting for central bank gold
The Statistics:
As of close of business: 12/07/2006
Gold Warehouse Stocks: | 7,491,102 | - |
Silver Warehouse Stocks: | 109,265,772 | - |
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 | 441.52 | 14,195,233 | US$ 8,910m |
LSE (London Stock Exchange) AND Euronext Paris | Gold Bullion Securities | 90.32 | 2,903,718 | US$ 1,816m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 10.53 | 338,464 | US$ 212m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 9.88 | 317,680 | US$ 202m |
Note: Change in Total Tonnes from yesterday’s data: The NYSE subtracted 0.16 tonnes and the ASX added 0.05 tonnes.
COMEX Gold Trust (IAU)
Profile as of 12/07/2006 | |
Total Net Assets | $862,417,105 | Ounces of Gold
in Trust | 1,364,906.469 |
Shares Outstanding | 13,750,000 | Tonnes of Gold
in Trust | 42.45 |
Note: No change in Total Tonnes from yesterday’s data.
Silver Trust (SLV)
Profile as of 12/07/2006 | |
Total Net Assets | $1,512,821,536 | Ounces of Silver
in Trust | 110,677,928 |
Shares Outstanding | 11,100,000 | Tonnes of Silver
in Trust | 3,442.5 |
Note: Change in Total Tonnes from yesterday’s data: 31 tonnes were added to the trust.
The Stocks:
Gold Fields’ (GFI) offer for Western Area’s (WARJ.J), Kimber’s (KBX) newsletter, Newmont’s (NEM) selling of their stake in an Indonesian mine, and Avino’s (ASM.V) corporate update were among the big stories in the gold and silver mining industry making headlines Friday.
WINNERS
1. Almaden | AAU +2.97% $2.42 |
2. NovaGold | NG +1.22% $16.60 |
3. Arizona Star | AZS+0.87% $12.78 |
LOSERS
1. Agnico Eagle | AEM -4.85% $41.62 |
2. Hecla | HL -4.68% $7.13 |
3. U.S. Energy | USEG -4.62% $5.37 |
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:
Melkior Increases Brokered Private Placement to Raise Up to $900,000 - More
- December 08, 2006 | Item | E-mail
Golden Valley Mines Ltd.: Announces Flow-Through Private Placements of Up to $1,500,000 - More
- December 08, 2006 | Item | E-mail
CORRECTION FROM SOURCE: Midway Makes Depths of Intercept Corrections for December 5 Press Release for Spring Valley Project, Nevada - More
- December 08, 2006 | Item | E-mail
Global Gold Names Ambassador Harry Gilmore (Ret) to Board - More
- December 08, 2006 | Item | E-mail
Eastern Goldfields, Inc. Announces Status of Current Operations and Further Strengthening of Management - More
- December 08, 2006 | Item | E-mail
Azimut announces a $1,255,500 private financing - More
- December 08, 2006 | Item | E-mail
Kimber Resources Inc. - Newsletter for November - "We pulled an encouraging hole on Veta Minitas (News Release on November 29th). Twenty six metres of over 18 grams per tonne (over half an ounce per ton) of gold equivalent would be exceptional in almost any location. Preliminary analysis suggests that the structure intersected by LMR-47 is almost perpendicular to the drill hole and that the estimated true thickness is approximately 25 metres. The Veta Minitas deposit (also called Las Minitas) lies 200 metres to the west of the Carmen footwall and appears to be at least 300 metres in length." More
- December 08, 2006 | Item | E-mail
Drake Gold Announces Equipment Arrivals and Operational Plans on Jackpot - More
- December 08, 2006 | Item | E-mail
Corriente Resources Inc.: Mirador Project Update - More
- December 08, 2006 | Item | E-mail
Avino Clarifies December 7, 2006 News Release - "Further to Avino Silver & Gold Mines Ltd.'s (the "Company") (TSX VENTURE:ASM.V - News)(OTC BB:ASGMF.OB - News)(FWB: GV6) news release dated December 7, 2006 regarding the Avino process plant in Durango, Mexico, the Company wishes to clarify that the Osborne report is an order of magnitude cost estimate for the processing plant and is not NI 43-101 compliant as it does not include underground development work." More
- December 08, 2006 | Item | E-mail
AntOro Resources Announces the Completion of Two Private Placements for a Total of $477,500 - More
- December 08, 2006 | Item | E-mail
Colombia Goldfields strengthens its management team - More
- December 08, 2006 | Item | E-mail
Citigroup cuts Barrick target - "Citigroup cut its Barrick Gold Corp. (ABX.TO: Quote, Profile , Research) (ABX.N: Quote, Profile , Research) stock target to $40 from $44 on Friday and trimmed earnings estimates, but kept a "buy" rating to reflect its positive sector and company outlook." More
- December 08, 2006 | Item | E-mail
Gold Resource Corporation Completes $5.18 Million Private Placement; Additional Funding to Sustain Accelerated Exploration Schedule - More
- December 08, 2006 | Item | E-mail
Sustut agreement between Doublestar Resources and Northgate Minerals extended - More
- December 08, 2006 | Item | E-mail
Richview Resources Inc. Receives Final Approval to List on the Toronto Stock Exchange - More
- December 08, 2006 | Item | E-mail
DIOS Reports Fall Program on PONTAX - More
- December 08, 2006 | Item | E-mail
San Gold Corporation Resources Report Completed - More
- December 08, 2006 | Item | E-mail
Affinor Resources Inc.: Nomination of Dominic Gingras - More
- December 08, 2006 | Item | E-mail
Continuum and Fortuna discover second mineralized shoot at San Jose Project, Mexico: drills 868 g/t Ag, 8.5 g/t Au over 1.8 meters - More
- December 08, 2006 | Item | E-mail
Mediterranean announces private placement to raise up to CDN$3,000,000 - More
- December 08, 2006 | Item | E-mail
Kodiak Stakes Uranium Prospects in Otish Basin Area - More
- December 08, 2006 | Item | E-mail
Timmins Gold Corp. Drills 110.75 m of 3.078 g/t Au at San Francisco Gold Project - More
- December 08, 2006 | Item | E-mail
Full Results from Hole SD-12 Released, Stroud Hits Semi-Massive Silver, Zinc, Lead Mineralized Zone in Mexico - More
- December 08, 2006 | Item | E-mail
Stillwater Mining Company (NYSE: SWC) Invests $2 million into Pacific North West Capital Corp. - Completed - More
- December 08, 2006 | Item | E-mail
Titan 24 Geophysical Program to Commence January on South Bay Copper-Zinc Project - More
- December 08, 2006 | Item | E-mail
Intrepid and Aura Silver to Partner on Mexican Silver-Gold Property - More
- December 08, 2006 | Item | E-mail
Avino Silver and Gold Mines Ltd.: Corporate Update - "Avino Silver and Gold Mines Ltd. (the "Company") (TSX VENTURE:ASM.V - News)(OTC BB:ASGMF.OB - News)(FWB: GV6)(Berlin:GV6.BE - News) has contracted Peter E. Walcott and Associates to carry out a 80 km line deep penetrating IP Survey at its Avino property 60 km northeast of Durango Mexico." More
- December 08, 2006 | Item | E-mail
Moto Goldmines Limited: Further Significant Results From Ongoing Extension Diamond Drill Programme - More
- December 08, 2006 | Item | E-mail
Abacus Completes Ajax West Zone Drilling-Zone Expands to 650 Metres, Highlights Include 114 Metres of 0.61% Copper and 0.68 g/t Gold - More
- December 08, 2006 | Item | E-mail
Kings Minerals and Andaurex Close Financing and Business Combination - More
- December 08, 2006 | Item | E-mail
IAMGOLD Declares Sixth Consecutive Annual Dividend - "IAMGOLD Corporation ("IAMGOLD" or "the Company") (TSX:IMG.TO - News)(NYSE:IAG - News)(Australia:IGD.AX - News)(Boston:IAMGOLD - News) is pleased to announce an annual dividend payment of CAD$0.07 per share payable on January 9th, 2007 to shareholders of record as of the close of trading on December 20th, 2006." More
- December 08, 2006 | Item | E-mail
Gold Fields says W.Areas offer to close on Dec 29 - "South Africa's Gold Fields Ltd (GFIJ.J: Quote, Profile , Research) will not raise its all-share offer for Western Areas (WARJ.J: Quote, Profile , Research), which will close on Dec. 29, it said on Friday. Gold Fields, the world's fourth biggest gold producer, said as of Thursday it had received acceptances for 66 percent of the shares under offer and, together with shares it already held, controlled 75.8 percent of the firm." More
- December 08, 2006 | Item | E-mail
Ahead of the Bell: Goldcorp - "Merrill Lynch raised its price target on Goldcorp Inc. to $38 from $34, saying the Canadian company will be viewed as the "go-to" gold producer among senior gold companies now that its merger with Glamis Gold is complete." More
- December 08, 2006 | Item | E-mail
Agnico-Eagle Mines cut to neutral at Merrill Lynch - "Despite this downgrade, we still believe that the company has excellent long-term growth prospects," Merrill Lynch said. "Agnico-Eagle is in the midst of developing four gold projects that should convert the company into a multi-mine operator allowing the company to more than triple gold output." More
- December 08, 2006 | Item | E-mail
Foreigners selling Indonesian mine stakes-sources - "U.S. firm Newmont Mining Corp. (NEM.N: Quote, Profile , Research) and other foreign owners of a big copper and gold mine in Indonesia are selling down their stakes in the mine, which could fetch about $1.2 billion, sources familiar with the matter said. Newmont and other foreign stakeholders, including Sumitomo Corp. (8053.T: Quote, NEWS , Research), currently own about 80 percent of Batu Hijau, Asia's second-largest copper mine." More
- December 08, 2006 | Item | E-mail
- Chris Mullen, Gold Seeker Report
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-- Posted 8 December, 2006 | |
