-- Posted 5 October, 2007 | | Source: SilverSeek.com
Note: Monday is Canada's Thanksgiving Day and the Canadian markets will be closed. Monday is also Columbus Day in the US and banks and government offices are closed, mail isn't delivered, and the bond market is closed, but the US stock markets are open as usual.
| Close | Gain/Loss | On Week |
Gold | $741.30 | +$4.20 | -0.24% |
Silver | $13.38 | +$0.02 | -2.48% |
XAU | 171.27 | +1.70% | +1.49% |
HUI | 393.99 | +1.79% | +0.26% |
GDM | 1231.57 | +2.31% | +0.54% |
JSE Gold | 2567.68 | +0.52% | -4.54% |
USD | 78.31 | -0.10 | +0.69% |
Euro | 141.35 | +0.17 | -0.97% |
Yen | 85.49 | -0.35 | -1.92% |
Oil | $81.22 | -$0.22 | -0.54% |
10-Year | 4.640% | +0.117 | +1.33% |
Bond | 110.78125 | -1.3125 | -0.51% |
Dow | 14066.01 | +0.66% | +1.23% |
Nasdaq | 2780.32 | +1.71% | +2.92% |
S&P | 1557.59 | +0.96% | +2.02% |
The Metals:
Gold traded mostly slightly lower in Asia and London and then dropped nearly $10 in New York to as low as $727.50 after better than expected jobs data initially pushed the dollar higher, but the dollar soon fell back off and gold roared back up to as high as $743.60 before it eased about $2 into the close and ended with a gain of 0.57%. Silver followed a similar pattern and fell to as low as $13.227 before it shot up to $13.483 and then also moderated a bit into the close, but it still ended with a gain of 0.15%.
Euro gold rose to over €525, platinum gained $5 to $1370, palladium gained $5 to $367, and copper fell slightly to about $3.73.
Gold and silver equities steadily rose throughout most of trade and ended with about 2% gains.
CoT Reports: Gold | Silver
The Economy:
Report | For | Reading | Expected | Previous |
Nonfarm Payrolls | Sep | 110K | 100K | 89K |
Unemployment Rate | Sep | 4.7% | 4.7% | 4.6% |
Hourly Earnings | Sep | 0.4% | 0.3% | 0.3% |
Average Workweek | Sep | 33.8 | 33.8 | 33.8 |
Consumer Credit | Aug | $12.2B | $8.6B | $9.6B |
The BLS adjustment added 17,000 payrolls to September’s data and August jobs were revised up to a gain of 89,000 from a previous report showing a loss of 4,000 Nonfarm Payrolls.
All of this week’s economic reports:
Next week’s economic highlights include FOMC minutes on Tuesday, Wholesale Inventories on Wednesday, Export and Import Prices, Initial Jobless Claims, and the Trade Balance and Treasury Budget on Thursday, and Retail Sales, PPI, Business Inventories, and Michigan Sentiment on Friday.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil fell on profit taking and concerns over waning demand, but it did end well off its lows and still above $81.
The U.S. dollar index initially rose following the stronger than expected jobs report, but it soon fell back off and ended the day lower in an apparent resumption of its long term downtrend after the fed’s Kohn commented that we should expect further near-term weakness.
Treasuries fell markedly after the jobs report came in better than expected and pushed interest rates higher as it made it less likely the fed will continue to cut interest rates.
The Dow rose back above 14,000, the S&P rose to a new record high, and the Nasdaq rose to a new 6 and ¾ year high on hopes that jobs data indicates that the economy is recovering nicely from credit problems and recession fears that began in August.
Among the big names making news in the market Friday were Research in Motion, Barclays and ABN, Goldman, Aetos, Simplex, and Washington Mutual.
The Commentary:
“The gold price behaved impressively yesterday after being knocked down to $723, then running up to over $737, then back down only to finish at close to the days high. This made it clear to funds and dealers who were probably the culprits on the down side that investment buying is still strong as is shown by the tonne a day investment buying at the moment.
With HSBC warning of massive capital outflows in the U.K. and U.K. investors pouring into the gold E.T.F. fund there [GBS – Gold Bullion Securities], could matters go back to the Exchange Controls seen there in 1971, to prevent such an outflow? This will certainly benefit the gold price.
There has been a massive degree of support for the $ as it has rallied back to what was support but is now resistance, but we suspect that this is just a rally. The uncertainty appears likely to persist in many quarters of the financial world with confidence being the victim. There is little sign of the actions needed to structurally improve prospects for the $, so we see no reason why gold and silver should not continue to rise.”- Julian D.W. Phillips, www.goldforecaster.com
“December Gold finished up 3.4 at 747.2, 3.5 off the high and 14.2 up from the low.
December Silver closed down 0.01 at 13.49. This was 0.16 up from the low and 0.11 off the high.
The gold market really forged an impressive reaction to the Monthly Non farm payroll readings, as it deflected an initial rally in the Dollar and managed to finish firm. Some traders suggested that seeing decent economic activity and seeing a weaker Dollar was the best of both worlds. In fact, seeing a slide in the Dollar in the face of a soaring equity market would almost seem to put the gold market back into the fundamental posture that was in place in January and February. In the January and February time the gold market seemed to have a very tight and positive correlation with the US equity market. About the only thing disappointing to the bear camp in gold was the weakness in oil and copper prices.
The silver market certainly underperformed the gold market and that might be the result of the gold market being closely tied to the ebb and flow of the US Dollar. However, the silver market as a quasi industrial demand led commodity market should have been boosted by the favorable Non Farm payroll readings and the optimism brought on by the rise in the equity markets. It is possible that silver prices were periodically held back as a result of weaker oil and copper prices, but with lead market managing a new all time high early in the session, there just wasn't much weight given to any macro economic themes on Friday.”- The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Rise of giant funds sparks fear of global shockwave
No inflation? Rare gold coin doubles in value in two years
Central bank gold sales fall below quota for second year
Credit squeeze induces ECB to avoid rate increase
Bank of England leaves interest rates on hold
Former Goldman Sachs exec is new governor of Bank of Canada
The Statistics:
As of close of business: 10/4/2007
Gold Warehouse Stocks: | 7,183,636 | -487 |
Silver Warehouse Stocks: | 132,822,912 | -310,461 |
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 | 577.85 | 18,578,347 | US$ 13,478m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 97.90 | 3,147,544 | US$ 2,337m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 15.06 | 483,998 | US$ 360m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 18.21 | 585,463 | US$ 424m |
Note: Change in Total Tonnes from yesterday’s data: The JSE added 0.25 tonnes.
COMEX Gold Trust (IAU)
Profile as of 10/4/2007 | |
Total Net Assets | $1,186,159,901 | Ounces of Gold
in Trust | 1,607,768.854 |
Shares Outstanding | 16,250,000 | Tonnes of Gold
in Trust | 50.01 |
Note: No change in Total Tonnes from yesterday’s data.
Silver Trust (SLV)
Profile as of 10/4/2007 | |
Total Net Assets | $1,896,718,460 | Ounces of Silver
in Trust | 143,481,444.700 |
Shares Outstanding | 14,450,000 | Tonnes of Silver
in Trust | 4,462.77 |
Note: No change in Total Tonnes from yesterday’s data.
The Stocks:
Peter Hambro Mining’s (POG.L) $159 million offering, Lundin Mining’s (LMC) plans to increase production, and Aquiline’s (AQI.TO) filed court response were among the big stories in the gold and silver mining industry making headlines Friday.
WINNERS
1. Ivanhoe | IVN +8.13% $13.70 |
2. Vista Gold | VGZ +7.87% $4.66 |
3. Minco Gold | MGH +6.86% $1.09 |
LOSERS
1. US Gold | UXG-5.83% $5.65 |
2. Paramount | PZG -5.06% $2.44 |
3. Endeavour | EXK -1.98% $3.47 |
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:
Grandview Gold Grants Incentive Options - More
- October 05, 2007 | Item | E-mail
Nirek Resources Inc. Re-Opens Kirana Mine - More
- October 05, 2007 | Item | E-mail
Melkior Announces Private Placements of up to $1,200,000 - More
- October 05, 2007 | Item | E-mail
Freewest Resources Canada Inc. Retains AGORACOM to Provide Online IR Marketing and Social Network for Shareholders - More
- October 05, 2007 | Item | E-mail
Hawk Initiates Airborne Survey on Cortez Township Uranium Project in the Elliot Lake Area - More
- October 05, 2007 | Item | E-mail
Andean Starts 30,000 Metre Phase 4 Drill Program at Cerro Negro - More
- October 05, 2007 | Item | E-mail
Great West Gold, Inc. - Confirmation of Immediate Name and Trading Symbol Change - More
- October 05, 2007 | Item | E-mail
Mintz Levin Advises International Consolidated Minerals Inc. in Acquisition of Peruvian Mining Company - More
- October 05, 2007 | Item | E-mail
Update on Ashdown operations - More
- October 05, 2007 | Item | E-mail
Brownstone Announces Name Change and Consolidation - More
- October 05, 2007 | Item | E-mail
Thistle announces acceptance of a revised offer for its interests in the President Steyn Gold Mine - More
- October 05, 2007 | Item | E-mail
Uravan Announces Extension - More
- October 05, 2007 | Item | E-mail
Quadra Mining mulls options after water ruling - More
- October 05, 2007 | Item | E-mail
Canadian Royalties Appoints Vice-President Operations and General Mine Manager for the Nunavik Nickel Project - More
- October 05, 2007 | Item | E-mail
Peter Hambro to raise $150 mln for gold projects - "Peter Hambro Mining (POG.L: Quote, Profile , Research) on Friday launched an offering of up to $150 million of gold equivalent exchangeable bonds to raise finance for development and exploration of gold assets in Russia." More
- October 05, 2007 | Item | E-mail
Bayfield Ventures Corp:. Trading Halted at Company's Request Pending News - More
- October 05, 2007 | Item | E-mail
Benton Discovers New High Grade Nickel and Copper Along With Platinum and Palladium at Bark Lake - More
- October 05, 2007 | Item | E-mail
Lundin Mining Plans to Quadruple Its Zinc Production at Neves-Corvo and Commence Copper Production at Zinkgruvan - "Lundin Mining Corporation ("Lundin Mining" or the "Company") (Toronto:LUN.TO - News)(NYSE:LMC - News)(OMX: LUMI) is pleased to announce that the Company's Board of Directors has approved major expansion programmes at the Neves-Corvo copper-zinc mine in southern Portugal and at the Zinkgruvan mine, in central Sweden." More
- October 05, 2007 | Item | E-mail
Announcement to the Australian Securities Exchange and Toronto Stock Exchange - More
- October 05, 2007 | Item | E-mail
Zaruma Resources: Establishes Financing of Luz del Cobre Copper Project and Exploration Financing at San Antonio (Sonora, Mexico) - More
- October 05, 2007 | Item | E-mail
Grenville Appoints Deloitte & Touche as Auditors and Provides Company Update - More
- October 05, 2007 | Item | E-mail
Crew Gold Corporation: Group Update - More
- October 05, 2007 | Item | E-mail
Telephone access available for Inmet Mining third quarter conference call - More
- October 05, 2007 | Item | E-mail
Denison Mines Announces Results on Huard-Kirsch Lakes Uranium Project, Athabasca, Saskatchewan - More
- October 05, 2007 | Item | E-mail
Consolidated Abaddon Resources Inc. and Denison Mines Announce Results On Huard-Kirsch Lakes Uranium Project, Athabasca, Saskatchewan - More
- October 05, 2007 | Item | E-mail
Canasia Industries Corporation Enters Negotiations on Mineral Properties - More
- October 05, 2007 | Item | E-mail
Idaho General Mines Announces Results of Annual Meeting; Shareholders Approve Delaware Reincorporation and Name Change to General Moly - More
- October 05, 2007 | Item | E-mail
Aquiline Files Response to IMA Application for Leave to Appeal - "Aquiline Resources Inc. ("Aquiline" or the "Company") (TSX:AQI - News) has today filed with the Supreme Court of Canada the response of its 100% wholly owned subsidiary, Minera Aquiline Argentina SA, to the IMA Exploration Inc. ("IMA") Application for Leave to Appeal the decision of the Court of Appeal for British Columbia concerning ownership of the Navidad deposit in Argentina." More
- October 05, 2007 | Item | E-mail
- Chris Mullen, Gold Seeker Report
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-- Posted 5 October, 2007 | |
