-- Posted 28 September, 2007 | | Source: SilverSeek.com
| Close | Gain/Loss | On Week |
Gold | $743.10 | +$10.60 | +1.66% |
Silver | $13.72 | +$0.24 | +1.70% |
XAU | 168.75 | +0.86% | -1.63% |
HUI | 392.97 | +1.76% | -1.69% |
GDM | 1224.92 | +1.42% | -0.59% |
JSE Gold | 2689.91 | -0.11% | -2.22% |
USD | 77.77 | -0.64 | -1.04% |
Euro | 142.74 | +1.19 | +1.32% |
Yen | 87.16 | +0.69 | +0.52% |
Oil | $81.66 | -$1.22 | +0.05% |
10-Year | 4.579% | +0.006 | -1.14% |
Bond | 111.34375 | UNCH | +0.54% |
Dow | 13895.63 | -0.12% | +0.55% |
Nasdaq | 2701.50 | -0.30% | +1.13% |
S&P | 1526.75 | -0.30% | +0.07% |
The Metals:
CoT Reports: Gold | Silver
Gold shot to a new 27 year high despite a drop in the price of oil as the dollar broke decidedly under 78.0 to a new all-time low. After trading nearly 1% higher in Asia and London, gold jumped even higher in early New York trade to over $742 by 9AM EST, remained near its highs for the rest of trade, and closed with a gain of 1.45%. Silver climbed to over $13.80 by late morning in New York before it moderated a bit into the close, but it still ended with a respectable gain of 1.78%.
Euro gold rose to over €521, platinum gained $28 to $1385 to a new all time high, palladium gained $2 to $343, and copper rose slightly to about $3.68.
Gold and silver equities traded over 2% higher for most of trade before they fell back off a bit in the last hour of trade, but they still ended with about 1% gains.
The Economy:
Report | For | Reading | Expected | Previous |
Personal Income | Aug | 0.3% | 0.4% | 0.5% |
Personal Spending | Aug | 0.6% | 0.4% | 0.4% |
Core PCE Inflation | Aug | 0.1% | 0.1% | 0.1% |
Chicago PMI | Sep | 54.2 | 53.0 | 53.8 |
Construction Spending | Aug | 0.2% | -0.2% | -0.5% |
Michigan Sentiment | Sep | 83.4 | 84.0 | 83.8 |
All of this week’s economic reports:
Next week’s economic highlights include the ISM Index on Monday, Pending Home Sales on Tuesday, ISM Services on Wednesday, Initial Jobless Claims and Factory Orders on Thursday, and Consumer Credit and September’s jobs data on Friday.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil rose in early trade on short covering and came within 14 cents of a new all-time high at $83.76, but it then fell on profit taking in late trade and ended back under $82 in volatile end of the quarter action as traders watched weather in the Gulf of Mexico and kept their eye on any news about geopolitical developments over Iran and Nigeria.
The U.S. dollar index plummeted to new all-time lows below 78.0 for the first time in its over 40 year existence as tame Core PCE inflation data furthered speculation that the fed will continue to cut interest rates and lessen demand for the currency as other countries are holding interest rates at current levels or even raising rates.
Treasuries rose in early trade on tame inflation data that pushed interest rates lower, but they fell back off in late trade and ended near unchanged after the dollar accelerated its losses following comments from the fed’s Poole who defended the fed’s recent 50 basis point cut in rates.
The Dow, Nasdaq, and S&P traded mostly slightly lower on worries over upcoming earnings reports in surprisingly light volume for the last day of trading of the third quarter.
Among the big names making news in the market Friday were Avaya, UAW and GM, 3com, and Freddie Mac.
The Commentary:
“After briefly consolidating around $730, some $10 to $15 higher than expected, gold is climbing to new heights. Why? Because the U.S. $ is breaking massive support and falling to new lows.
Alongside oil prices climbing when many expected a fall we have entered a new era for gold. One where the gold price is driven by macro-economics and currencies. Investment demand is the gold game now as many new funds find their way into gold, probably for the first time. The quarter end brings book squaring not only in gold but also on mortgage related investments, for the first time since the crisis began. The market is telling us something is going wrong, horribly wrong in the monetary world.”- Julian D.W. Phillips, www.goldforecaster.com
“Gold returns to the center stage Friday reaching fresh record levels. Gold is returning to its historical attribute as a monetary instrument. With the US Dollar falling to new lows, capital is looking for a preservation of wealth asset. As foreign currencies become more expensive and suspect themselves, gold is quickly becoming an asset choice. A lack of faith in the US Dollar’s ability to preserve purchasing power will continue to flood the gold market with investment demand. This is the key driver. I would expect in the coming months the process will continue, in waves, with gold surpassing the $800 level as investors begin to focus on the $1,000 level.”- Peter Spina, www.goldforecaster.com
“December Gold finished up 10.1 at 750, 2.5 off the high and 4 up from the low.
December Silver closed up 0.275 at 13.92. This was 0.19 up from the low and 0.06 off the high.
With another big range up extension this week coming in the wake of a fairly significant spec and fund long positioning in gold from the prior week, it isn't surprising that the Press and trade began to toss around the idea that gold was becoming over extended. However, the bull camp could suggest that the presence of corrective talk means that the market isn't totally bullish. On the other hand, the market did see suggestions from Gold Fields Mineral Services that gold miners could eventually resume hedging. However, the dialogue from GFMS at a gold conference seemed to suggest that the hedging interest might be several years away! With the US Dollar falling aggressively on Friday, the gold market certainly saw an escalation of financial flight to quality anxiety and that might have been accentuated by the weakness in the US equity markets.
With gold exploding higher on the charts it wasn't surprising to see December silver rise to the next even number zone of $14.00. However, the silver market had to discount a reversal in the copper market and weakness in the equity market in its track higher. Fortunately for the bull camp the positioning reports in silver will not fully reflect the fact that December silver managed to rise more than 30 cents an ounce above the level where the COT reports were measured at the beginning of the week.”- The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
How Barrick's hedging gold in a rising market could be a bonanza
Northern Rock gets another L5 billion from Bank of England, pays dividend
Citigroup acknowledges central bank scheme to suppress gold
The Statistics:
As of close of business: 9/27/2007
Gold Warehouse Stocks: | 7,021,705 | +34,819 |
Silver Warehouse Stocks: | 134,055,112 | +125,096 |
Global Gold ETF Holdings
[WGC Sponsored ETF’s]
| Product name | Total Tonnes | Total Ounces | Total Value |
New York Stock Exchange (NYSE) AND Singapore Exchange (SGX) | Streettracks Gold Shares | 578.03 | 18,584,096 | US$ 13,595m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 95.46 | 3,069,041 | US$ 2,278m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 14.30 | 459,159 | US$ 341m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 17.72 | 569,693 | US$ 416m |
Note: Change in Total Tonnes from yesterday’s data: The LSE added 4.21 tonnes.
COMEX Gold Trust (IAU)
Profile as of 9/27/2007 | |
Total Net Assets | $1,178,044,278 | Ounces of Gold
in Trust | 1,608,254.908 |
Shares Outstanding | 16,250,000 | Tonnes of Gold
in Trust | 50.02 |
Note: No change in Total Tonnes from yesterday’s data.
Silver Trust (SLV)
Profile as of 9/27/2007 | |
Total Net Assets | $1,938,527,261 | Ounces of Silver
in Trust | 143,536,762.300 |
Shares Outstanding | 14,450,000 | Tonnes of Silver
in Trust | 4,464.49 |
Note: Change in Total Tonnes from yesterday’s data: 30.88 tonnes were added to the trust.
The Stocks:
A small fire at Newmont’s (NEM) Yanacocha mine, Barrick’s (ABX) plans to not hedge more gold production, Sterling’s (SRLM.OB) listing on the TSX and commenced processing at Sunshine, ECU’s (ECU.TO) new vein discovery, and Coeur’s (CDE) drill results were among the big stories in the gold and silver mining industry making headlines Friday.
WINNERS
1. Banro | BAA +17.81% $12.20 |
2. Cardero | CDY +11.66% $1.82 |
3. International Tower Hill | THM +10.42% $2.65 |
LOSERS
1. Buenaventura | BVN-4.90% $47.78 |
2. Metalline | MMG -2.38% $2.87 |
3. US Energy | USEG-2.00% $4.42 |
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:
Logan Resources announces grant of stock options - More
- September 28, 2007 | Item | E-mail
GWR Closes $3,250,000 Brokered Private Placement - More
- September 28, 2007 | Item | E-mail
Vannessa Grants Stock Options - More
- September 28, 2007 | Item | E-mail
Sterling Common Shares to Commence Trading on the TSX - "Sterling Mining Company (OTC BB:SRLM.OB - News)(Frankfurt:SMX.F - News) announces that further to the conditional approval of the Toronto Stock Exchange ("TSX") to list its common shares (see press release dated August 2, 2007), the Company has now satisfied all conditions of the TSX, such that the common shares of Sterling will commence trading on October 2, 2007 under the symbol "SMQ"." More
- September 28, 2007 | Item | E-mail
Explor Engages Buick Group Investor Relations - More
- September 28, 2007 | Item | E-mail
Alturas Minerals Appoints CFO, Controller and Establishes Toronto Office - More
- September 28, 2007 | Item | E-mail
Anaconda Mining Receives Initial Payment From Penoles - More
- September 28, 2007 | Item | E-mail
Comprehensive Memorandum of Understanding Signed between Sego Resources Inc. and Upper Similkameen Indian Band for Sego Resources Inc.'s Miner Mountain Project - More
- September 28, 2007 | Item | E-mail
Rare Element to Announce Sundance Gold-Assay Results - More
- September 28, 2007 | Item | E-mail
Noront Resources Ltd.: Windfall Lake Underground Ramp to Start - More
- September 28, 2007 | Item | E-mail
Vior Inc.: Exploration Up-Date on Bourgeoys and Lac-Edouard Nickel Projects - More
- September 28, 2007 | Item | E-mail
UNOR Announces Financing - More
- September 28, 2007 | Item | E-mail
Newmont Yanacocha gold mine fine after small fire - "Newmont Mining Corp's (NEM.N: Quote, Profile, Research) Yanacocha gold mine was operating normally on Friday after a fire apparently set by arsonists damaged a plastic water duct near the mine, a company official said." More
- September 28, 2007 | Item | E-mail
Randsburg International announces launch of new website - More
- September 28, 2007 | Item | E-mail
Metanor Resources Inc.: Adoption of a Shareholder Rights Plan, modification of the Stock Option Plan and granted of options - More
- September 28, 2007 | Item | E-mail
Conway Resources to Drill 3,000 Metres on its Lavallee and Brisebois Properties - More
- September 28, 2007 | Item | E-mail
Unico, Inc. Adds New Photo Gallery Showing Work to Complete Secondary Substation at the Deer Trail Mine - More
- September 28, 2007 | Item | E-mail
Houston Lake Ships 114 Drill Core Samples for Gold Analysis - More
- September 28, 2007 | Item | E-mail
Enterayon Forms New Subsidiary - More
- September 28, 2007 | Item | E-mail
Update on the Corporate Action Related to the Reverse Split of the Preferred Shares (Old Symbol: PAIMP) and the Mandatory Recall & Conversion - More
- September 28, 2007 | Item | E-mail
Firesteel Announces Further Strong Copper and Gold Mineralization at its Copper Creek Property - More
- September 28, 2007 | Item | E-mail
FNX Exercises Right to Purchase Dynatec's Mining Services Business - More
- September 28, 2007 | Item | E-mail
Millstream Starts Up Gold Mill at Tamarack - More
- September 28, 2007 | Item | E-mail
Announcement to the Australian Securities Exchange and Toronto Stock Exchange - More
- September 28, 2007 | Item | E-mail
AmMex Gold Commences Phase 2 of Drilling at Bailey Hill, Nevada - More
- September 28, 2007 | Item | E-mail
Grenville Gold Launches Market Awareness Campaign With Conference Appearances in Calgary, Munich and Frankfurt, Zurich, Geneva and London - More
- September 28, 2007 | Item | E-mail
Liberty Provides McWatters Drill Results and Groves Update - More
- September 28, 2007 | Item | E-mail
Wits Basin Announces New Director, Dr. Joe Mancuso - More
- September 28, 2007 | Item | E-mail
Adanac Molybdenum Corporation: Major Mining Equipment Selected and Ordered For Ruby Creek Project - More
- September 28, 2007 | Item | E-mail
Sterling Mining Begins Processing Ore Through Sunshine Mill - "Sterling Mining Company (OTC BB:SRLM.OB - News) (Frankfurt:SMX.F - News) today reported that its Sunshine Mine milling and concentrating facility is operational and has commenced processing Sunshine vein ore from the Mine's Upper Country development." More
- September 28, 2007 | Item | E-mail
Barrick CEO plans no return to gold hedges: report - "Barrick Gold (ABX.TO: Quote, Profile, Research) has no plans to return to the futures markets to hedge its gold production, but does hedge its copper output, Chief Executive Greg Wilkins told television broadcaster CNBC on Friday." More
- September 28, 2007 | Item | E-mail
ECU Silver Announces New Vein Discovery and Exploration Update - "Recent drill holes have been aimed at testing the various major east - west trending veins in the Velardena Property. These main veins, namely Roca Negra, Terneras, San Juanes and San Mateo have been encountered along with several smaller veins that are associated with the main veins. Several of these smaller veins are of considerable interest to us and we are awaiting assays and interpretation." More
- September 28, 2007 | Item | E-mail
Coeur Announces Additional High-Grade Drill Results at Cerro Bayo Mine - "Coeur d'Alene Mines Corporation (NYSE:CDE - News; TSX:CDM - News) today announced updated exploration results at its Cerro Bayo Mine in Chile, where the accelerated drilling program on the company's large land holdings has continued to return consistently high-grade silver and gold intercepts close to the mine's processing facilities." More
- September 28, 2007 | Item | E-mail
- Chris Mullen, Gold Seeker Report
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-- Posted 28 September, 2007 | |
