-- Posted 26 July, 2007 | | Source: SilverSeek.com
| Close | Gain/Loss |
Gold | $662.30 | -$11.40 |
Silver | $12.83 | -$0.25 |
XAU | 147.25 | -3.96% |
HUI | 345.79 | -3.57% |
GDM | 1092.05 | -3.64% |
JSE Gold | 2632.01 | -0.44% |
USD | 80.46 | -0.19 |
Euro | 137.51 | +0.37 |
Yen | 84.24 | +1.15 |
Oil | $74.95 | -$0.93 |
10-Year | 4.777% | -0.127 |
T-Bond | 109.90625 | +1.03125 |
Dow | 13473.57 | -2.26% |
Nasdaq | 2599.34 | -1.84% |
S&P | 1482.66 | -2.33% |
The Metals:
Gold traded a couple of dollars higher in Asia, but it then began to fall off in late London trade and continued to drop in New York to fall to as low as $659.90 by early afternoon before it bounced back higher in the last hour of trade and ended with a loss of 1.69%. Silver followed a similar pattern and fell to as low as $12.65 before it rebounded over 1% off its low in afternoon trade and ended with a loss of 1.91%.
While some suggest that gold fell today in sympathy with general market weakness, others look towards the carry trade as the New Zealand central bank raised interest rates to 8.25% last night and that encouraged shifts in carry trade positions as evidenced by a strong rally in the yen today. Others point to weakening economic growth that may dampen demand, while still others point towards manipulation and blatant price capping to drive prices down especially with options expiring today. Simple profit taking from the last month’s run from roughly $640 to nearly $690 may also have been in order. Whatever the reason, most pundits are quick to point out that sharp drops in the prices of gold and silver as seen in the last two days should be seen as opportunities to add to positions and ride the trend that has only gone up overall for over 6 years and counting as fundamental reasons to do so have only improved over that time frame.
Euro gold fell to about €480, platinum lost $3 to $1,315, palladium remained unchanged at $364, and copper rose roughly 4 cents to about $3.61.
Gold and silver equities fell over 5% by mid-afternoon, but they then rallied back higher in the last two hours of trade and ended with less than 4% losses.
The Economy:
Report | For | Reading | Expected | Previous |
Durable Orders | June | 1.4% | 2.0% | -2.8% |
Initial Claims | 7/21 | 301K | 310K | 303K |
Help-Wanted Index | June | 26 | 27 | 27 |
New Home Sales | June | 834K | 900K | 893K |
Tomorrow at 8:30AM EST brings second quarter GDP expected at 3.2% and the Chain Deflator expected at 3.4%. At 10AM is Michigan Sentiment for July expected at 91.5.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil rose in early trade to as high as $77.24 and topped the Brent crude price for the first time in 5 months in further reaction to yesterday’s drop in crude inventories, but it ended the day with a loss of over 1% on concerns over slowing economic growth that may cut into demand. A general flight to cash in all positions also encouraged selling as traders kept an eye on OPEC that my increase production at their next meeting as well.
The U.S. dollar index fell as the yen rallied sharply on the unwinding of the carry trade while poor economic data and worries over the credit market also encouraged dollar selling.
Poor economic data and credit worries also sent the Dow, Nasdaq, and S&P dramatically lower and encouraged bond buying that sent the yield on the 10-year under 4.8% for the first time in over two months. The Dow was down over 430 points at one point before it rallied over 100 points from its low of the session, but the major indices still closed with roughly 2% losses.
Among the big names making news in the market today were 3M, Berkshire and Kraft, Exxon Mobil, Ford Motor, Beazer Homes, Office Depot, Kellogg, and US Airways.
The Commentary:
“August Gold finished down 11 at 662.8, 10.3 off the high and 2.8 up from the low.
September Silver closed down 0.2 at 12.95. This was 0.16 up from the low and 0.135 off the high.
The gold market reversed some minor early gains, showed some early selling and then came under aggressive liquidation in the wake of an acceleration of the washout in the stock market. In short, those gold players hoping for flight to quality interest had to be extremely disappointing. With the oil market eventually succumbing to the physical commodity market weakness, it would seem as if the outside market condition is capable of sitting on the back of the gold market in the days ahead. In fact, not seeing the Dollar resume the recent downside pattern in the wake of a series of soft US reports actually seemed to disappoint the gold trade even more. Certainly the magnitude of the downside washout served to trigger sell stops and it is likely that the technical pressure will remain on the market until the August gold contract re-gains $665.
While the September silver contract did manage to reject the initial wave down, the technical damage on the charts seems rather severe, but as long as the threat of broad based commodity fund selling circulates in the back ground it might be difficult for the silver market to pull out fresh speculative buying interest. Like the gold market, the silver bulls have to be extremely disappointed in the metals markets failure to embrace the current financial debacle as a positive.” - The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
John Crudele: Wish my FOIA request a happy birthday
Nick Jones: The gold carry trade
Mortgage defaults already coming from good-credit borrowers
Zimbabwe's official gold price rises 10-fold overnight
Reg Howe: Gibson's Paradox and rising rates
The Statistics:
As of close of business: 7/25/2007
Gold Warehouse Stocks: | 6,910,698 | - |
Silver Warehouse Stocks: | 130,849,442 | + 632,920 |
Global Gold ETF Holdings
[WGC Sponsored ETF’s]
| Product name | Total Tonnes | Total Ounces | Total Value |
New York Stock Exchange (NYSE) AND Singapore Exchange (SGX) | Streettracks Gold Shares | 497.15 | 15,983,883 | US$ 10,782m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 94.65 | 3,043,092 | US$ 2,011m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 12.48 | 400,814 | US$ 265m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 13.92 | 447,442 | US$ 301m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU)
Profile as of 7/25/2007 | |
Total Net Assets | $993,286,509 | Ounces of Gold
in Trust | 1,475,649.875 |
Shares Outstanding | 14,900,000 | Tonnes of Gold
in Trust | 45.90 |
Note: No change in Total Tonnes from yesterday’s data.
Silver Trust (SLV)
Profile as of 7/25/2007 | |
Total Net Assets | $1,865,913,979 | Ounces of Silver
in Trust | 141,671,812.200 |
Shares Outstanding | 14,250,000 | Tonnes of Silver
in Trust | 4,406.49 |
Note: No change in Total Tonnes from yesterday’s data.
The Stocks:
Glencairn’s (GLE) suspended mine operations announced late yesterday, Fronteer’s (FRG) drill results, Lihir’s (LIHR) gold production, Kimber’s (KBX) updated resource estimate, First Majestic’s (FR.V) second quarter silver production, Arian’s (AGQ.V) drill results, Palmarejo’s (PJO.V) drill results, Coeur’s (CDE) appointed project manager, and SiverCrest’s (SVL.V) drill results were among the big stories in the gold and silver mining industry making headlines today.
WINNER
1. Northern Dynasty | NAK +2.11% $13.05 |
LOSERS
1. Crystallex | KRY -7.33% $3.54 |
2. Rubicon | RBY -7.31% $2.13 |
3. Minco Gold | MGH-6.32% $1.171 |
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:
Belvedere Resources Ltd. - Stock Option Grants - More
- July 26, 2007 | Item | E-mail
Jaguar Mining Q2 2007 Earnings Conference Call Details - More
- July 26, 2007 | Item | E-mail
Yankee Hat Announces Additional 2007 Winter Drilling Results From Its Fran Gold Project - More
- July 26, 2007 | Item | E-mail
Idaho General Mines Plans Expanded Throughput Capacity at Mt. Hope; Anticipates Increased Project NPV - More
- July 26, 2007 | Item | E-mail
Olympus: Intersects Further High-Grade Mineralization Within North Extension of Phuoc Son Gold Deposit - More
- July 26, 2007 | Item | E-mail
First Majestic Silver Corp.: Second Quarter Silver Production Increases - "FIRST MAJESTIC SILVER CORP. (First Majestic or the "Company") (CDNX:FR.V - News)(Other OTC:FRMSF.PK - News)(Frankfurt:FMV.F - News)(WKN: A0LHKJ) is pleased to announce that silver production in the second quarter ending June 30th, 2007 has increased by 13% over the prior quarter to 852,721 equivalent ounces of silver which is also an increase of 298% over the same quarter ending June 2006." More
- July 26, 2007 | Item | E-mail
Geoinformatics Exploration Inc.: Mexican Exploration Drills Significant Molybdenum and Copper Intersections and Identifies Two New Polymetallic Prospects - More
- July 26, 2007 | Item | E-mail
Gold Reef International to Present at Leading Metals & Mining Conference in New York City - More
- July 26, 2007 | Item | E-mail
DIOS: Discovery of a Uranium-Bearing Sandstone Boulder on HOTISH - More
- July 26, 2007 | Item | E-mail
Ontex Resources Limited: Second Quarter Interim Financial Statements and MD & A - More
- July 26, 2007 | Item | E-mail
Fronteer Development Group Inc.: New Surface High Grade Zone at Kirazli Returns Up to 17 Ounces Per Ton Gold - "Fronteer Development Group Inc. ("Fronteer" or the "Company") (Toronto:FRG.TO - News)(AMEX:FRG - News) is pleased to report that a new zone of high grade surface gold mineralization has been identified at Kirazli, located approximately one kilometre to the west of the current resource area. This new zone, which has never been drilled, has returned surface rock grades of up to 17.00 ounces per ton gold (583 grams per tonne gold)." More
- July 26, 2007 | Item | E-mail
Resource increase and infill drilling confirms geological continuity at TEAL's Otjikoto Gold Project - More
- July 26, 2007 | Item | E-mail
Uranium Bay Obtains up to 1.03% U3O8 (20.5 lbs/ton) in Surface Sample at Uskawanis, Northern Quebec - More
- July 26, 2007 | Item | E-mail
Northwestern and UraMin complete joint venture - More
- July 26, 2007 | Item | E-mail
Golden Arrow Announces New Appointment - More
- July 26, 2007 | Item | E-mail
Firesteel Announces Exploration Results from Copper Creek Property - More
- July 26, 2007 | Item | E-mail
Amera Resources Corporation: Cocha Drill Program Update - More
- July 26, 2007 | Item | E-mail
Strait Gold Reports Widespread Copper Values at Letra Rumi South - More
- July 26, 2007 | Item | E-mail
Moydow Mines to Drill Diamond Licence in Angola - More
- July 26, 2007 | Item | E-mail
Kenrich-Eskay Mining Corporation-Update on 2007 Drilling Program: Corey and Coastal Copper Projects - More
- July 26, 2007 | Item | E-mail
Vantex Initiates its Exploration Program on "Monsieur F" Project - More
- July 26, 2007 | Item | E-mail
Golden Odyssey Appoints Kehmeier as Vice President, Exploration and COO - More
- July 26, 2007 | Item | E-mail
BacTech Provides Mid-Year Update - More
- July 26, 2007 | Item | E-mail
Continuum Appoints Dale Schultz Vice-President, Exploration - More
- July 26, 2007 | Item | E-mail
Drilling Commences on the Shanchuan Lead-Zinc Project - More
- July 26, 2007 | Item | E-mail
Thistle Announces its Application to the Yukon Supreme Court to Extend Date for Annual Shareholders Meeting - More
- July 26, 2007 | Item | E-mail
East West and Partners Approve $1.5 Million Budget for the Norton Lake Properties - More
- July 26, 2007 | Item | E-mail
Mexivada Worldwide Projects Update - More
- July 26, 2007 | Item | E-mail
Fission Completes Option Agreement of Lake Athabasca North Shore Property with Tribune - More
- July 26, 2007 | Item | E-mail
Noront Resources Ltd.: Hunters Point Gold/Uranium Project - More
- July 26, 2007 | Item | E-mail
Northland's Stora Sahavaara Project Initial Test Results Yield High Grade Iron Ore Pelletizing Feed - More
- July 26, 2007 | Item | E-mail
Marathon drilling intersects 14.6 g/t PGM and gold and 0.18% copper over 4 m in the W Horizon - More
- July 26, 2007 | Item | E-mail
Gold Port Resources Exploration Progress at Akaiwong - More
- July 26, 2007 | Item | E-mail
Director and Management Appointments - More
- July 26, 2007 | Item | E-mail
USCorp Announces Completion of the Twin Peaks Gold and Silver Property Feasibility Study - More
- July 26, 2007 | Item | E-mail
Uranium Hunter Identifies 10 Uranium Targets on the Ruhuhu Project - More
- July 26, 2007 | Item | E-mail
Golden China Releases June 2007 Quarterly Update Report - More
- July 26, 2007 | Item | E-mail
Stratabound drilling to evaluate Captain copper-gold deposit in New Brunswick - More
- July 26, 2007 | Item | E-mail
Nevada Copper-Intersects 51.6 Meters of 2.54% Copper - More
- July 26, 2007 | Item | E-mail
Pulacayo Processing Plant to Be Constructed by Miramonte Mining, AG - More
- July 26, 2007 | Item | E-mail
Itronics GOLD'n GRO Fertilizer Division Announces Revenue Gains - More
- July 26, 2007 | Item | E-mail
Young-Shannon Appoints Rodney Thomas, P.Geo. as New Director - More
- July 26, 2007 | Item | E-mail
Aurelio Reports Additional High-Grade Zinc Intercepts at the Hill Copper-Zinc Project, AZ, Including 330 Feet Averaging 1.92% Zn - More
- July 26, 2007 | Item | E-mail
Etruscan's drilling at Diba confirms deposit remains open down dip and along strike - More
- July 26, 2007 | Item | E-mail
Comprehensive Research Report Completed on Hemis - More
- July 26, 2007 | Item | E-mail
Aquila Drills Multiple Intercepts of Gold and Base Metals Including 6 Meters of 17.9 Grams Per Tonne Gold - More
- July 26, 2007 | Item | E-mail
Globex to Undertake Drill Program at Normetal Mine - More
- July 26, 2007 | Item | E-mail
Superior Canadian Announces Agency Agreement With Union Securities - More
- July 26, 2007 | Item | E-mail
International KRL Discovers New Uranium Showings at the Nor IOCG Project, Yukon - More
- July 26, 2007 | Item | E-mail
USEC to Webcast Conference Call on August 2 at 8:30 a.m. ET - More
- July 26, 2007 | Item | E-mail
Ur-Energy's Board of Directors Change - More
- July 26, 2007 | Item | E-mail
Azimut and Central Uranium sign a Letter of Intent for the Kangiq Uranium Property, Northern Quebec - More
- July 26, 2007 | Item | E-mail
Cooper Minerals Signs Contract for Radiometric Survey Over its Great Bear Lake Uranium-Copper-Gold Property - More
- July 26, 2007 | Item | E-mail
Trigon Provides Henry Mountains Update - More
- July 26, 2007 | Item | E-mail
Silver Spruce Resources Inc.: High Grade Uranium Mineralization Discovered on Mount Benedict Property - More
- July 26, 2007 | Item | E-mail
Arian Silver Corporation: Drill Results Confirm and Discover Additional Mineralised Zones at San Jose - "These assays confirm there are mineralised structures wide enough to support low cost, mechanised mining. These silver grades, combined with the high base metal values we are seeing, are potentially economic with large enough tonnage. Our goal over the coming months is to define a NI 43-101 compliant silver resource at the San Jose property." More
- July 26, 2007 | Item | E-mail
Lihir's gold production nudges nadir - "In any case, if the central bank moves to the new mercantilism and away from Bretton Woods mercantilism, the days of low interest rates will end in the United States. If Uncle Wong decides that Uncle Sam’s promises to pay cannot be trusted, and therefore cement is a better deal, the U.S. government’s fiscal policy will soon have feet in cement." More
- July 26, 2007 | Item | E-mail
Palmarejo Silver and Gold Corporation Announces Drill Results from the Palmarejo Project - "Palmarejo Silver and Gold Corporation (TSX VENTURE:PJO - News; the "Company") is pleased to announce latest drill results from the Palmarejo Silver-Gold Project in the Temoris District, Chihuahua, Mexico. The Palmarejo project is held by the Company's 100% owned subsidiary, Planet Gold SA de CV." More
- July 26, 2007 | Item | E-mail
Coeur d'Alene Mines Appoints Stuart Mathews Project Manager for Palmarejo Project - "Coeur d'Alene Mines Corporation (NYSE:CDE - News; TSX:CDM - News) today announced that Stuart Mathews, the Technical Director of Coeur Australia who has been assigned to the Company's South American properties, has been appointed interim project manager for the Palmarejo project in Mexico. Mathews is expected to be named General Manager at Palmarejo once the transaction is completed in the fourth quarter of 2007." More
- July 26, 2007 | Item | E-mail
SilverCrest Reports Final RC Drill Results and Preliminary Metallurgy at Cruz De Mayo, Mexico - "SilverCrest Mines Inc. (the "Company") (TSX VENTURE:SVL - News) is pleased to report assay results for the final 4 reverse circulation (RC) drill holes of a total 27 RC holes drilled at its Cruz de Mayo Project in northern Mexico. These results continue to establish the continuity and grade of a silver mineralized zone that is now considered to be the discovery of a significant new silver deposit." More
- July 26, 2007 | Item | E-mail
Kimber provides update on recent activities, adds to Carmen resources - "Kimber Resources Inc. (AMEX:KBX, TSX:KBR) - Kimber reports that, as part of its on-going appraisal of the Carmen gold-silver deposit on its Monterde property in Mexico, it has updated its resource estimate for the Carmen deposit and has also outlined a higher grade component to the Carmen resource that may be suitable for underground mining." More
- July 26, 2007 | Item | E-mail
- Chris Mullen, Gold Seeker Report
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-- Posted 26 July, 2007 | |
