-- Posted 14 February, 2007 | | Source: SilverSeek.com
| Close | Gain/Loss |
Gold | $667.20 | +$4.00 |
Silver | $13.90 | +$0.05 |
XAU | 143.64 | +0.73% |
HUI | 346.47 | +1.13% |
GDM | 1108.61 | +1.24% |
JSE Gold | 2835.41 | +3.42 |
USD | 84.18 | -0.52 |
Euro | 131.26 | +0.96 |
Yen | 82.79 | +0.31 |
Oil | $58.00 | -$1.06 |
10-Year | 4.730% | -0.084 |
T-Bond | 111.03125 | +0.84375 |
Dow | 12741.86 | +0.69% |
Nasdaq | 2488.38 | +1.16% |
S&P | 1455.30 | +0.76% |
The Metals:
Gold rose almost 1% in Asia and neared $670 at the London open before it fell back off a bit heading into New York, but it then shot up above $670 with over 1% gains just after 10AM EST as Bernanke’s testimony was released and knocked the dollar down. It soon fell back off heading into the close and ended well off of its highs, but it still closed with a gain of 0.60%. Silver topped $14 with well over 1% gains just after 10AM EST as well, but it too fell back off into the close and ended with a gain of just 0.36%.
Euro gold remained just under €510, platinum gained $10 to $1,206, palladium gained $2 to $342, and copper remained at about $2.53.
Gold and silver equities followed gold and silver about 1% higher just after 10AM EST and closed not far off their highs of the day.
The Economy:
Report | For | Reading | Expected | Previous |
Retail Sales | Jan | 0.0% | 0.3% | 1.2% |
Retail Sales ex-auto | Jan | 0.3% | 0.4% | 1.3% |
Business Inventories | Dec | 0.0% | 0.1% | 0.2% |
Bernanke’s testimony before the Senate Banking Committee revealed he was less hawkish than many on Wall Street thought. He remarked that he expected inflation to slow and noted that he doesn’t expect the housing slump to affect other parts of the economy. Bernanke visits the House Financial Services Committee tomorrow.
Tomorrow at 8:30AM EST brings Import and Export Prices for January, Initial Jobless Claims for 2/10 expected at 315,000, and the NY Empire State Index for February expected at 11.0. At 9AM are Net Foreign Purchases for December expected at $60.0 billion, at 9:15 are Capacity Utilization for January expected at 81.7% and Industrial Production expected at 0.0%, and at noon is the Philadelphia Fed survey for February expected at 4.0.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil fell after inventories did not fall as much as many were expecting. Crude inventories fell 600,000 barrels, gasoline inventories fell 2.0 million barrels, and distillates fell 3.0 million barrels.
The U.S. dollar index fell and treasuries rose markedly after poor economic data and dovish commentary from Bernanke pushed interest rates lower.
The Dow, Nasdaq, and S&P closed with impressive gains on easing worries over inflation and interest rates.
Among the big names making news in the market today were Coca-Cola, Delta, Deere, DaimlerChrysler, and Office Depot.
The Commentary:
“Yes, GATA strenuously objects to the talk of IMF gold sales because the implementation of such will just further delay the inevitable and keeps the price from going to where it already ought to be.
A couple of days ago I heard an oil guy say that the oil industry used $20 oil as a benchmark to go after new supply. However, in just the past couple of years exploration costs (including escalating steel prices) had skyrocketed so much, the industry now needs $40 oil as its benchmark.
The same is true with gold mining. In many cases, as in Canada, gold prices need to be greater than $600 per ounce to make money.
If it were not for The Gold Cartel, the price of gold would be double what it is today. There would be a GOLD RUSH and gold economic boom like never seen before. The gold producing countries in sub-Saharan Africa would be hiring huge numbers of Zulu miners (and others) to find gold reserves. Each of these miners supports 10 to 12 others.” - From yesterday’s Midas report by Bill Murphy of LemetropoleCafe.com
“April Gold finished up 3.5 at 672, 4.4 off the high and 2.3 up from the low.
March Silver closed up 0.05 at 13.965. This was 0.035 up from the low and 0.165 off the high.
The gold market did manage to climb to the highest level since August 2nd, but the market failed to hold all of the gains. It is possible that the gold market leaves the session Wednesday with a slight undermine of bullish sentiment. Certainly the sharp slide in oil prices served to prompt some long profit taking and certainly seeing the Fed Chairman down play the inflation threat are potential negatives but many traders thought that an on-hold stance from the Fed would be a positive for gold as it was in the wake of the last FOMC meeting. However, the gold market seemed to be unable to embrace the positive Fed testimony spin that was apparently embraced by the US equity market. In other late breaking but potentially bearish supply side news a London listed Russian gold producer indicated that their 2006 gold production increased a whopping 244% above the 2005 level or for a base output of 219,853 ounces of gold.
While the silver market is still locked into a tight correlation with the gold market, it is possible that corrective action in the copper and aluminum and the softer than expected US retail sales report served to weigh on silver more than the pressure that was present in the gold market. In fact, both gold and silver were certainly under some pressure as a result of the weakness in oil but that pressure was tempered by the new low for the move in the US Dollar. It is also possible that the silver market saw some indirect support from the strength in the equity market.” - The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Citigroup analysts tell Barrick: Close hedge book, then stand back
At Toronto Financial Forum, Peter Grandich concurs with GATA
Billiton not pursuing Alcoa, sources tell Reuters
Venezuela's nationalization fast but with compensation
The Statistics:
As of close of business: 2/13/2007
Gold Warehouse Stocks: | 7,487,582 | -101 |
Silver Warehouse Stocks: | 115,437,975 | - |
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 | 467.74 | 15,038,384 | US$ 10,041m |
LSE (London Stock Exchange) AND Euronext Paris | Gold Bullion Securities | 87.08 | 2,799,819 | US$ 1,874m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 11.08 | 355,810 | US$ 238m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 10.24 | 329,333 | US$ 219m |
Note: Change in Total Tonnes from yesterday’s data: 1.54 tonnes were added to the trust.
COMEX Gold Trust (IAU)
Profile as of 2/13/2007 | |
Total Net Assets | $936,668,319 | Ounces of Gold
in Trust | 1,403,670.518 |
Shares Outstanding | 14,150,000 | Tonnes of Gold
in Trust | 43.66 |
Note: No change in Total Tonnes from yesterday’s data.
Silver Trust (SLV)
Profile as of 2/13/2007 | |
Total Net Assets | $1,745,112,695 | Ounces of Silver
in Trust | 125,030,899.100 |
Shares Outstanding | 12,550,000 | Tonnes of Silver
in Trust | 3,888.90 |
Note: No change in Total Tonnes from yesterday’s data.
The Stocks:
Agnico-Eagle’s (AEM) plans to acquire Cumberland (CLG), ECU silver’s (ECU.V) assay results, Southern Silver’s (SSV.V) exploration update, Coeur’s (CDE) mine in Bolivia, Fury’s (FUR.V) drilling, Orko’s (OK.V) assay results, and Silver Dragon’s (SDRG.OB) hiring of Ausenco International Pty Ltd. were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Cumberland | CLG +24.95% $7.42 |
2. Miramar | MNG+12.20% $4.60 |
3. Gammon Lake | GRS +6.20% $16.95 |
LOSERS
1. Claude Resources | CGR -2.93% $1.63 |
2. Pacific Rim | PMU -2.73% $1.07 |
3. Agnico Eagle | AEM -2.45% $40.21 |
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:
ECU Silver Announces New High Grade Assays Within the Mineralized Corridor From Level 18, Santa Juana Mine - "The new developments follow known veins in order to assess the evolution of the grades from the upper levels where these veins have been previously sampled. This also provides accesses to test the MC across its entire width. Furthermore, these new developments will look to provide a higher degree of confidence in the possible continuity of the veins within the MC as well as providing an excellent assay base from which the Company can expand." More
- February 14, 2007 | Item | E-mail
Asia Now Expands Beiya Project with Additional Exploration Rights - More
- February 14, 2007 | Item | E-mail
Agnico-Eagle to buy Cumberland, boost gold output - "Gold and base metals producer Agnico-Eagle Mines Ltd. (AEM.TO: Quote, Profile , Research) said on Wednesday it will offer about C$679 million ($580 million) to buy junior miner Cumberland Resources Ltd. (CLG.TO: Quote, Profile , Research) and gain a foothold in Canada's resource-rich Arctic.
Agnico-Eagle will gain full ownership of Cumberland's Meadowbank gold project, in the northern territory of Nunavut, under the deal. Now under construction, the project has proven and probable reserves of 2.9 million ounces of gold, with production expected to start in 2010." More
- February 14, 2007 | Item | E-mail
Wildcat Stakes Additional Ground; Jeep Property, Manitoba, Canada - More
- February 14, 2007 | Item | E-mail
Romios Drills Wide Intersections of Gold, Copper and Silver Mineralization at Newmont Lake-Assay Values as High as 49 G/T Gold - More
- February 14, 2007 | Item | E-mail
Southern Silver Advancing Exploration; Names Mexican Project - "Southern Silver Exploration Corp. (TSX VENTURE:SSV - News; FRANKFURT:SEG - News) reported today it has named a recently consolidated group of mining claims in a 25 kilometre long mineralized trend in Jalisco State, Mexico as the Minas de Ameca Project. The company said it is advancing exploration on multiple highly prospective targets in the region and has just completed a preliminary reconnaissance drill program designed to guide a more comprehensive drilling campaign in the spring of 2007." More
- February 14, 2007 | Item | E-mail
Bolivia says won't nationalize silver mine - Coeur - "The head of a U.S. silver company developing a mine in Bolivia said on Wednesday he does not believe the leftist government there will nationalize foreign mining operations." More
- February 14, 2007 | Item | E-mail
Drilling Results at Continental Precious Minerals Properties in Sweden - More
- February 14, 2007 | Item | E-mail
Fury and Southern Silver Drill Mexican Copper/Gold Target - "Encouraging copper and gold assays from surface samples warranted the immediate testing of the San Luis vein system with two drill holes totaling 400 meters. Assays are expected to be received within approximately 8-weeks." More
- February 14, 2007 | Item | E-mail
Haber Inc. Acquires Additional Large-Scale Gold Concession in Ghana's Gold Prolific Western and Brong Ahafo Regions - More
- February 14, 2007 | Item | E-mail
Romarco Appoints Krol as Technical Advisor - More
- February 14, 2007 | Item | E-mail
East Asia Minerals reports multiple radiometric zones over wide intervals in a roll-front environment at Ooshiin Govi - More
- February 14, 2007 | Item | E-mail
American Goldfields Provides Exploration Update on Nevada Gold Properties - More
- February 14, 2007 | Item | E-mail
Mega Uranium Ltd. Releases Unaudited Results for the First Quarter Ended December 31, 2006 - More
- February 14, 2007 | Item | E-mail
Galantas Gold Corporation: Correction to 13th February Press Release - More
- February 14, 2007 | Item | E-mail
BacTech Set To Drill Quinto Uranium Property - More
- February 14, 2007 | Item | E-mail
Benton initiates 10,000-metre diamond drill program at Bermuda/Bamoos property - More
- February 14, 2007 | Item | E-mail
Marathon Graduates to TSX, to Delist from TSX-V on February 15, 2007 - More
- February 14, 2007 | Item | E-mail
Carlisle Goldfields Limited. (CGJ: TSX) - Drilling commences at MacLellan Mine Property, Manitoba - More
- February 14, 2007 | Item | E-mail
Reverse circulation results expand Sonne, Tassawini, Guyana - More
- February 14, 2007 | Item | E-mail
Second Drill Hole at Alexis Returns 41 Feet of 0.37 Ounces Gold Per Ton in New Discovery South of Lac Herbin Mine - More
- February 14, 2007 | Item | E-mail
Galantas Signs Falconbridge Offtake Agreement for Omagh - More
- February 14, 2007 | Item | E-mail
LKA International, Inc. Announces Legal Action Taken Against Golden Wonder Mine Operator, Au Mining, Inc. - More
- February 14, 2007 | Item | E-mail
Soho Resources Appoints Hall Stewart VP of Exploration - More
- February 14, 2007 | Item | E-mail
7.85 g/t Gold Over 10 Metres on Globex's Nordeau Property - More
- February 14, 2007 | Item | E-mail
Orvana Reports Operating Results for the Quarter Ended December 31, 2006 - More
- February 14, 2007 | Item | E-mail
Canarc Sampling Returns 39.7 gpt and 9.3 gpt Gold Over 2 m Widths From New Vein Discovery on Benzdorp Project, Suriname - More
- February 14, 2007 | Item | E-mail
Exploration Commences on M10 Massive Sulphide Prospect in Ecuador - More
- February 14, 2007 | Item | E-mail
Eagle Plains Acquires Exclusive Exploration Rights to Mackenzie Silver-Lead-Zinc District - More
- February 14, 2007 | Item | E-mail
Tournigan Discovers New High Grade Zone at the Jahodna Deposit - More
- February 14, 2007 | Item | E-mail
Western Copper Corp.; Carmacks Copper Project: Environmental and Socioeconomic Submission Accepted - More
- February 14, 2007 | Item | E-mail
Sierra Gold Corporation Confirms the Presence of Platinum Group Metals With Encouraging Results - More
- February 14, 2007 | Item | E-mail
SearchGold Intersects 9.76 g/t Au Over 22 m on Mandiana, Guinea - More
- February 14, 2007 | Item | E-mail
Aurora Gold Corporation Is Pleased to Announce an Initial Resource Estimate for the Molly Occurrence on the Company's Sao Domingos Property - More
- February 14, 2007 | Item | E-mail
Lateegra Gold Corp.: Exploration Commences on "M10" Massive Sulphide Prospect in Ecuador - More
- February 14, 2007 | Item | E-mail
Exclusivity Agreement Signed With a Major International Corporation for the Development of Roca Honda - More
- February 14, 2007 | Item | E-mail
CityView is Seeking to Increase Its Shareholdings in Quest Energy Middle East Limited - More
- February 14, 2007 | Item | E-mail
Entourage Mining Enters into Doran Option Agreement with Abbastar Holdings Ltd., Prepares for Drill Program in Quebec - More
- February 14, 2007 | Item | E-mail
Trigon Announces Henry Mountains Drill Program - More
- February 14, 2007 | Item | E-mail
Orko Silver's Drilling Increases Width of Abundancia Vein and Includes Multiple High Grade Hits in Luz Elena and Esperancita Veins - "These results show a significant widening of both Abundancia and Luz Elena veins. They will be added to our next resource estimate which we anticipate releasing by the end of Q1 2007. Of particular interest will be the addition of the Luz Elena vein to the next resource estimate. In our last resource estimate, the Luz Elena vein was not included because we did not have sufficient drilling data that intersected the vein. We are very encouraged by these results as we continue to strive to meet our minimum target of 100 Million silver-equivalent ounces at La Preciosa." More
- February 14, 2007 | Item | E-mail
Cumberland to be Acquired by Agnico-Eagle Mines Limited - "CUMBERLAND RESOURCES LTD. (Toronto:CLG.TO - News)(AMEX:CLG - News) ("the Company") is pleased to announce that it has signed an agreement with Agnico-Eagle Mines Limited (Toronto:AEM.TO - News)(NYSE:AEM - News) ("Agnico-Eagle") under which Agnico-Eagle has agreed to make an all share exchange offer for all of the outstanding and fully diluted common shares of Cumberland." More
- February 14, 2007 | Item | E-mail
Silver Dragon Retains Ausenco International Pty Ltd. for the Erbahuo Silver Mine Project, China - "Silver Dragon Resources Inc. (OTC BB:SDRG.OB - News) is pleased to announce that it has commissioned Ausenco International Pty Ltd. of Brisbane, Queensland, Australia to evaluate the current status and prepare a Project Development Plan which will outline the steps for executing a Chinese Feasibility Study for obtaining all necessary permits and the NI 43-101 technical report required for its Erbahuo Silver Mine Project in Northern China." More
- February 14, 2007 | Item | E-mail
Agnico-Eagle to acquire Cumberland Resources; transaction would increase gold production and reserve growth - "Agnico-Eagle Mines Limited today announced that it has signed an agreement with Cumberland Resources Ltd. (TSX and AMEX: CLG, "Cumberland") under which Agnico-Eagle has agreed to make an exchange offer for all of the outstanding common shares of Cumberland not already owned by Agnico-Eagle. The Company currently owns 2,037,000, or 2.6%, of the outstanding shares of Cumberland on a fully diluted basis." More
- February 14, 2007 | Item | E-mail
- Chris Mullen, Gold Seeker Report
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-- Posted 14 February, 2007 | |
