-- Posted 7 September, 2007 | | Discuss This Article - Comments:
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| Close | Gain/Loss | On Week |
Gold | $700.10 | +$5.60 | +4.00% |
Silver | $12.50 | +$0.19 | +4.24% |
XAU | 151.53 | -0.17% | +7.64% |
HUI | 358.13 | +0.24% | +9.44% |
GDM | 1114.74 | +0.25% | +9.36% |
JSE Gold | 2526.68 | +119.76 | +8.13% |
USD | 79.96 | -0.50 | -1.06% |
Euro | 137.71 | +0.85 | +0.97% |
Yen | 88.21 | +1.50 | +2.25% |
Oil | $76.70 | +$0.40 | +3.59% |
10-Year | 4.368% | -0.132 | -3.72% |
Bond | 113.53125 | +1.25 | +1.57% |
Dow | 13113.38 | -1.87% | -1.83% |
Nasdaq | 2565.70 | -1.86% | -1.18% |
S&P | 1453.55 | -1.69% | -1.39% |
The Metals:
CoT Reports: Gold | Silver
Spot gold rose to its highest today since May 2006 when it climbed to as high as $725 for the first time in 25 years. Gold traded mixed in Asia and London and then spiked higher following the release of poor jobs data in New York. After seeing over $10 gains and climbing over $706 by 10AM EST, gold did moderate a bit into the close, but it still ended with a gain of 0.81%. Silver climbed over $12.60 before it also cut some of its gains by early afternoon, but it then spiked back higher in afternoon trade and ended near its session high with a gain of 1.54%.
Euro gold rose over €509, platinum gained $7 to $1,290, palladium lost $2 to $332, and copper fell nearly 5 cents to abut $3.27.
Gold and silver equities saw roughly 1% gains for most of trade despite noticeable weakness in the greater indices, but the miners were dragged down to about unchanged by the close as gold ended off its earlier highs and the Dow, Nasdaq, and S&P ended with nearly 2% losses.
The Economy:
Report | For | Reading | Expected | Previous |
Nonfarm Payrolls | Aug | -4K | 110K | 68K |
Unemployment Rate | Aug | 4.6% | 4.6% | 4.6% |
Hourly Earnings | Aug | 0.3% | 0.3% | 0.3% |
Average Workweek | Aug | 33.8 | 33.8 | 33.8 |
Wholesale Inventories | July | 0.2% | 0.5% | 0.3% |
August’s jobs fell for the first time in four years despite a BLS adjustment of adding 120,000 payrolls. June and July’s payrolls were downwardly revised by 81,000 jobs to add to the day’s economic disappointment. As if that weren’t enough, “former Federal Reserve Chairman Alan Greenspan said the current market turmoil is ‘identical’ in many ways to that which occurred in 1987 and 1998, the Wall Street Journal reported in its online edition on Friday.”
A fed rate cut now seems no longer a question of if, but now when and how much, as the fed will no longer be seen as just bailing out the financials and others, but can argue that they are cutting rates due to broad-based slowing economic growth as the word “recession” is uttered more than one can count on outlets like CNBC lately when it was only seldom used and followed by laughter due to its Wall Street perceived ridiculousness just a month ago. Perhaps most ominous is the fact that the impact of the credit crunch that first evidenced itself in the middle of August has yet to be calculated with regards to upcoming data and reports like September’s jobs data may be even worse.
All of this week’s economic reports:
Next week’s economic highlights include Consumer Credit on Monday, the Trade Balance on Tuesday, Initial Jobless Claims and the Treasury Budget on Thursday, and the Current Account, Export and Import Prices, Retail Sales, Capacity Utilization, Industrial Production, Business Inventories, and Michigan Sentiment on Friday.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil rose as concerns over tight supplies and geopolitical worries trumped possible waning demand due to slowing economic growth.
The U.S. dollar index plunged under 80 to a new 15-year low as jobs data all but ensured at least a quarter point interest rate cut by the fed at their next meeting on September 18th, if not an earlier and/or larger cut in rates.
Treasuries soared higher and interest rates plunged to new lows across the board as a weakening economic outlook pushed bonds higher. The yield on the 2-year dropped under 4%, the yield on the 10-year fell under 4.4%, and the yield on the 30-year fell under 4.7%.
The Dow, Nasdaq, and S&P fell markedly on the dismal jobs report. Many were hoping for a poor report to help solidify a fed rate cut, but it seems few thought the report would be so bad that it would show a net decline in payrolls for the first time in four years.
Among the big names making news in the market Friday were BMW, Audi, Mercedes, Beazer, Harley-Davidson, and Hovnanian.
The Commentary:
“Gold is posturing itself for a potential move to record highs seen last year as we are experiencing a technical breakdown in the US Dollar Index. The technical signals are flashing breakout in gold with the price surpassing the $700 market. Should this $700 price hold as we start next week, the next week could be as spectacular as this week has proven to be.
$700 remains significant here – investors will be asking if this is a false breakout or not. If the gold price holds above $700, a new wave of investment funds is likely to feed this momentum. The fundamentals are in place and now the technicals are following.”- Peter Spina, www.goldforecaster.com
“December Gold finished up 5.1 at 709.7, 6.8 off the high and 3.5 up from the low.
December Silver closed up 0.227 at 12.76. This was 0.2 up from the low and 0.06 off the high.
With gold managing another new high for the move and forging the run up in the face of distinctly disappointing US economic news, one gets the sense that gold is indeed being lifted by flight to quality buying. However, with the US Dollar also coming under pressure, it is possible that some of the buying in gold was prompted by the action in the currency markets. On the other hand, to see gold prices manage such an impressive run up in the face of recessionary dialogue is certainly a change of pace for the trade. Some players actually suggested that gold was being bid up because of fears that the US financial crisis might get out of hand and is just another example of the flight to quality theme. However, with the Press carrying a story that a Golf ETF was one of the stocks that hit a new 52 week high, it is clear that investor interest in gold is coming in along side the flight to quality interest.
While the silver market initially managed another new high for the move, the silver market seemed to give back the initial gains rather quickly. In fact, given the gains in gold prices, the magnitude of the silver gains certainly suggests that silver is simply following in the footsteps of the gold market. With the platinum market also joining into the recent upward march in gold prices, some players suggested that fresh buys in the silver market were made somewhat more appealing as the wave of gains in all the precious metals has created a measure of credibility.”- The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
European rate increases squelched on eve of explosion in cash hunger
The Statistics:
As of close of business: 9/6/2007
Gold Warehouse Stocks: | 7,076,278 | - |
Silver Warehouse Stocks: | 131,347,968 | -23,742 |
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 | 542.35 | 17,436,962 | US$ 11,998m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 88.01 | 2,829,485 | US$ 1,983m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 12.86 | 413,175 | US$ 290m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 16.62 | 534,233 | US$ 367m |
Note: Change in Total Tonnes from yesterday’s data: The NYSE/SGX added another 13.99 tonnes to a new record high total tonnes held after they added 12.92 tonnes to yesterday’s data. The ASX added another 0.07 tonnes.
COMEX Gold Trust (IAU)
Profile as of 9/6/2007 | |
Total Net Assets | $1,056,685,817 | Ounces of Gold
in Trust | 1,519,196.874 |
Shares Outstanding | 15,350,000 | Tonnes of Gold
in Trust | 47.25 |
Note: No change in Total Tonnes from yesterday’s data.
Silver Trust (SLV)
Profile as of 9/6/2007 | |
Total Net Assets | $1,690,587,823 | Ounces of Silver
in Trust | 138,074,659.500 |
Shares Outstanding | 13,900,000 | Tonnes of Silver
in Trust | 4,294.60 |
Note: No change in Total Tonnes from yesterday’s data.
The Stocks:
Meridian Gold’s (MDG) ceased third party discussions with regards to an acquisition, Barrick Gold’s (ABX) addition to the Dow Jones Sustainability Index, Kinross Gold’s (KGC) establishment of the Kinross Professorship in Mining and Sustainability, Mines Management’s (MGN) conference schedule, Silvercorp’s (SVM.TO) warrant listing, and IMA’s (IMR) Application for Leave to Appeal the decision of the Court of Appeal for British Columbia in Minera Aquiline Argentina SA v IMA Exploration Inc. and Inversiones Mineras Argentinas S.A. were among the big stories in the gold and silver mining industry making headlines Friday.
WINNERS
1. Northern Orion | NTO +18.09% $5.94 |
2. DRDGOLD | DROOY+5.82% $7.09 |
3. Randgold | GOLD +4.74% $28.48 |
LOSERS
1. Meridian | MDG -7.52% $29.26 |
2. Anglo American | AAUK -5.24% $28.21 |
3. Yamana | AUY -5.15% $11.78 |
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:
Meridian sees no white knight, still shuns Yamana - "Meridian Gold (MNG.TO: Quote, Profile, Research) said on Friday that no white knight had emerged to help it fend off a hostile bid from Yamana Gold (YRI.TO: Quote, Profile, Research), but the mid-tier miner still urged shareholders to reject the "inadequate" offer." More
- September 07, 2007 | Item | E-mail
Three Drills to Turn for Sage - More
- September 07, 2007 | Item | E-mail
Mines Management Announces 2007 Fall Conference Schedule - "Sept. 10-11, 2007 - IIC Las Vegas Hard Assets, Mandalay Bay Resort & Casino..." More
- September 07, 2007 | Item | E-mail
Iberian Minerals Corp. Announces Release of Funds from Escrow - More
- September 07, 2007 | Item | E-mail
Silvercorp Announces Listing of Warrants - "Silvercorp Metals Inc. ("Silvercorp") (Toronto:SVM.TO - News) announces that, commencing at the opening of trading on September 10, 2007, up to 1,250,625 of Silvercorp's common share purchase warrants will be listed on the Toronto Stock Exchange and will trade under the symbol "SVM.WT". The warrants, which were issued under the April 2006 bought deal financing, entitle the holder to purchase one common share of Silvercorp at a price of $24 per share until expiry on October 26, 2008." More
- September 07, 2007 | Item | E-mail
Castle Gold Records Strong Second Quarter Results; Cash Costs Fall to $180 Per Ounce - More
- September 07, 2007 | Item | E-mail
Platinex Completes Third Closing of Private Placement - More
- September 07, 2007 | Item | E-mail
Barrick Gold Named to Dow Jones Sustainability Index - "Barrick Gold Corporation (Toronto:ABX.TO - News)(NYSE:ABX - News) has been added to the annual Dow Jones Sustainability Index (DJSI) - North America for the first time, ranking the company as best-in-class for its ongoing commitment to sustainability." More
- September 07, 2007 | Item | E-mail
Azteca Gold Corp.: Purchase of Marietta Complete and Exploration Progress Reported - More
- September 07, 2007 | Item | E-mail
IMA Files Application for Leave to Appeal With the Supreme Court of Canada - "IMA Exploration Inc.'s ("IMA") (CDNX:IMR.V - News)(AMEX:IMR - News)(Frankfurt:IMT.F - News)(WKN 884971) Management announces that its Application for Leave to Appeal the decision of the Court of Appeal for British Columbia in Minera Aquiline Argentina SA v IMA Exploration Inc. and Inversiones Mineras Argentinas S.A. was filed on September 6, 2007 with the Supreme Court of Canada." More
- September 07, 2007 | Item | E-mail
Skyline Announces Additional Assay Results - More
- September 07, 2007 | Item | E-mail
New Guinea Gold Corporation: Sinivit Mine Update - More
- September 07, 2007 | Item | E-mail
Goldstake Discovers More High Grade Gold at McGarry Ontario, Canada - More
- September 07, 2007 | Item | E-mail
Ruby Red Resources announces drilling results on Zeus and Gar properties - More
- September 07, 2007 | Item | E-mail
Global Gold Announces the Acquisition of a 20 Thousand Plus Hectare Placer and Hard Rock Gold Property in Chile - More
- September 07, 2007 | Item | E-mail
Raven Gold Corp. - Schedules La Currita Site Visit - More
- September 07, 2007 | Item | E-mail
Platinum Group Metals Ltd.: Western Bushveld Joint Venture Project 1 - More
- September 07, 2007 | Item | E-mail
First Narrows Prepares to Go Underground at Chester - More
- September 07, 2007 | Item | E-mail
Stratabound reports on drilling at Captain Property, New Brunswick - More
- September 07, 2007 | Item | E-mail
Osisko Recruits Experienced Mine Development Team - More
- September 07, 2007 | Item | E-mail
Liberty Assembles the Groves Nickel Copper PGM Project - More
- September 07, 2007 | Item | E-mail
Asian Dragon Group Inc. to Attend the IAM Fair in Dusseldorf - More
- September 07, 2007 | Item | E-mail
White Mountain Completes $2.9 Million Financing and Appoints New Director - More
- September 07, 2007 | Item | E-mail
Uranium Bay Initiates Second Program on Multi-Kilometric Bedrock Uranium Targets on Uskawanis Property - More
- September 07, 2007 | Item | E-mail
IMA Submits Application to Seek Leave to Appeal Navidad Decision - "Aquiline Resources Inc. ("Aquiline" or the "Company") (TSX:AQI - News) reports that an Application for Leave to Appeal to the Supreme Court of Canada has been filed by IMA Exploration Inc. and its wholly owned subsidiary Inversiones Mineras Argentinas S.A ("IMA"). The application represents IMA's request to the Supreme Court of Canada to grant leave to appeal the decision of British Columbia Court of Appeal dated June 7, 2007 which upheld the trial court judgment dated July 14, 2006 awarding ownership of Navidad to Aquiline's wholly owned subsidiary Minera Aquiline Argentina SA." More
- September 07, 2007 | Item | E-mail
Kinross Funds Mining and Sustainability Professorship at Queen's University - "Kinross Gold Corporation (Toronto:K.TO - News)(NYSE:KGC - News) announced today the establishment of the Kinross Professorship in Mining and Sustainability in partnership with the Department of Mining Engineering at Queen's University in Kingston, Ontario." More
- September 07, 2007 | Item | E-mail
Meridian Gold issues statement regarding third party process; Board continues to recommend shareholders reject inadequate offer - "Meridian Gold Inc. ("Meridian Gold" or the "Company") (TSX:MNG - News; NYSE:MDG - News) today announced that the third parties with whom the Company has been having discussions have informed the Company that they do not intend to make proposals relating to an acquisition of Meridian Gold pursuant to the Board of Directors' previously announced value-maximizing process." More
- September 07, 2007 | Item | E-mail
- Chris Mullen, Gold Seeker Report
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-- Posted 7 September, 2007 | | Discuss This Article - Comments:
