-- Posted 31 October, 2007 | | Source: SilverSeek.com
| Close | Gain/Loss |
Gold | $791.70 | +$7.30 |
Silver | $14.37 | +$0.11 |
XAU | 188.10 | +4.10% |
HUI | 435.08 | +3.79% |
GDM | 1371.06 | +3.63% |
JSE Gold | 2530.30 | +2.13% |
USD | 76.55 | -0.19 |
Euro | 144.56 | +0.30 |
Yen | 86.89 | -0.19 |
Oil | $94.53 | +$4.15 |
10-Year | 4.475% | +0.092 |
T-Bond | 112.59375 | -1.00 |
Dow | 13930.01 | +1.00% |
Nasdaq | 2859.12 | +1.51% |
S&P | 1549.38 | +1.20% |
The Metals:
Gold fell about 1% to as low as $776.65 in early Asian trade before it rebounded in London and came into New York near unchanged at about $784. It then continued to rise throughout most of trade in New York and ended near its high of the session with a gain of 0.93% at a new 27 year high.
Silver traded about 1% lower in Asia before it also rallied back higher to about unchanged in London and then continued its gains in New York. It rose to as high as $14.475 by early afternoon before it came back off a bit in the last hour of trade, but it still ended with a gain of 0.77%.
Both metals initially dipped in after hours trade following the fed’s announcement, but at the time of writing they have rebounded from that early reaction and have come up to add further to their earlier gains. Gold futures have even topped $800 for the first time since 1980 while spot gold has risen to as high as $797.30 by 4PM EST.
Euro gold rose to over €548, platinum gained $3 to $1441, palladium gained $2 to $369, and copper fell slightly to about $3.52.
Gold and silver equities rose about 2.5% by late morning before they fell back off to see only about 1% gains directly after the fed’s statement, but they then surged back higher in late trade and ended at new record highs with about 4% gains.
The Economy:
Report | For | Reading | Expected | Previous |
GDP | Q3 | 3.9% | 3.1% | 3.8% |
Chain Deflator | Q3 | 0.8% | 2.0% | 2.6% |
Employment Cost Index | Q3 | 0.8% | 0.9% | 0.9% |
Chicago PMI | Oct | 49.7 | 53.0 | 54.2 |
Construction Spending | Sep | 0.3% | -0.4% | -0.2% |
Fed Funds Rate | 10/31 | 4.5% | 4.5% | 4.75% |
Economic data came in mostly better than expected to buck the recent trend of economic data coming in worse than already low expectations, but the reports were mostly ignored as traders still expected the fed to cut rates 25 basis points due to recent and ongoing credit problems.
The fed did exactly that and cut rates ¼% to 4.5%, but their overall message was not as dovish going forward as most seemed to expect. They noted that upside risks to inflation roughly balance the downside risks to economic growth, but that “recent increases in energy and commodity prices, among other factors, may put renewed upward pressure on inflation.” They also cut the discount rate 25 basis points to 5.0%. Of note was one dissenter in the ten fed members who voted and that was Kansas City member Hoenig who wanted to keep rates unchanged.
Tomorrow at 8:30AM EST brings Personal Income and Spending for September both expected at 0.4%, Core PCE Inflation expected at 0.2%, Initial Jobless Claims for 10/27 expected at 330,000, and at 10AM are Pending Home Sales for September and the ISM Index for October expected at 51.5, but most are already looking ahead to Friday’s government jobs report. As a preview to that today was the ADP’s private sector jobs report that showed a larger than expected creation of 106,000 payrolls in October.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil rose nearly 5% to a new record high over $94 after inventory reports came in worse than expected. Oil also remained near its highs into the close despite the fed’s balanced statement that made it less likely than previously thought that they would continue to cut rates at their next meeting in six weeks. Some may think that this would cut into demand more than previously thought, but the energy market appears to be much more focused on waning supplies at the moment. Oil inventories surprisingly fell 3.9 million barrels, gasoline inventories built 1.3 million barrels, distillates built 800,000 barrels, and refinery utilization dropped a whopping 0.9% to 86.2%.
The U.S. dollar index fell to fresh new record lows before the fed and then fell even further after the announcement despite their apparent jawboning aimed at helping the plummeting currency.
Treasuries fell in early trade on decent economic data and then fell even further after the fed’s statement came in more hawkish than most were looking for.
The Dow, Nasdaq, and S&P rose in early trade on optimism leading up to the fed before they almost immediately fell back near unchanged following the announcement, but all three indices rallied to new highs on the day by the close and ended with roughly 1% gains on faith that the fed did the right thing.
Among the big names making news in the market today were Sprint and Google, MasterCard, Kraft, and Wyndham.
The Commentary:
“December Gold finished up 7.5 at 795.3, 0.7 off the high and 7.8 up from the low.
December Silver closed up 0.11 at 14.438. This was 0.088 up from the low and 0.107 off the high.
The gold market clearly got on a roll as the day progressed. Seeing the combination of a stronger than expected US GDP reading, sharply higher oil prices, weakness in the Dollar and significant strength in grain prices had to foster an inflationary psychology. As expected the US Fed went ahead and cut interest rates by 25 basis points and that didn't initially seem to have much of an impact on gold prices. However, once it was clear that the equity market was remaining positive after the move and with Treasury prices falling sharply in the face of the Fed move, gold prices eventually managed to forge a fresh new high just ahead of the close. Perhaps more importantly the gold market did manage to rise above the psychologically important $800 level.
The silver market mostly followed the gold market around on Wednesday but in the wake of the US rate cut the bull camp surfaced with another wave of fresh buying interest. With the stock market pushing sharply upward in the wake of the Fed move, oil prices firm and the Dollar weak the overall environment for silver was pretty positive. With gold making a new high and reaching above the $800 level that could create a favorable buzz for all the metals markets in the coming sessions.”- The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Hong Kong central bank gushes cash to prop up U.S. dollar
Oil market is 'out of control,' OPEC says
Gulf Arabs could drop dollar peg together
Ted Butler: A simple and constructive solution
The Statistics:
As of close of business: 10/30/2007
Gold Warehouse Stocks: | 7,345,762 | -9,835 |
Silver Warehouse Stocks: | 133,704,691 | +732,159 |
Global Gold ETF Holdings
[WGC Sponsored ETF’s]
| Product name | Total Tonnes | Total Ounces | Total Value |
New York Stock Exchange (NYSE) AND Singapore Exchange (SGX) | Streettracks Gold Shares | 597.53 | 19,211,042 | US$ 15,042m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 97.87 | 3,146,635 | US$ 2,486m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 15.06 | 483,858 | US$ 383m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 18.33 | 589,248 | US$ 461m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU)
Profile as of 10/30/2007 | |
Total Net Assets | $1,318,755,035 | Ounces of Gold
in Trust | 1,681,961.330 |
Shares Outstanding | 17,000,000 | Tonnes of Gold
in Trust | 52.31 |
Note: No change in Total Tonnes from yesterday’s data.
Silver Trust (SLV)
Profile as of 10/30/2007 | |
Total Net Assets | $2,040,079,150 | Ounces of Silver
in Trust | 143,977,749.600 |
Shares Outstanding | 14,500,000 | Tonnes of Silver
in Trust | 4,478.21 |
Note: No change in Total Tonnes from yesterday’s data.
The Stocks:
Newmont’s (NEM) 3rd quarter earnings, Claude’s (CGR) exploration results, Freeport’s (FCX) new senior vice president, Aurelian’s (ARU.TO) new senior operations team members, Kirkland’s (KGI.TO) drilling update, Gold Fields’ (GFI) shut shaft due to worker deaths, Tumi’s (TUMIF.OB) completed drill program, and Avino’s (ASM.V) drill results were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Claude Resources | CGR +11.26% $1.68 |
2. Newmont | NEM +9.60% $50.90 |
3. Metalline | MMG +8.67% $3.26 |
LOSERS
1. DRDGOLD | DROOY-5.36% $8.792 |
2. Orezone | OZN -1.94% $1.52 |
3. Crystallex | KRY -1.88% $3.14 |
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:
Cameco profit higher, but more Cigar Lake delays - More
- October 31, 2007 | Item | E-mail
First Narrows Adopts Shareholder Rights Plan - More
- October 31, 2007 | Item | E-mail
Barrick Gold Announces Dividend - "Barrick Gold Corporation (Toronto:ABX.TO - News)(NYSE:ABX - News) today announced that its Board of Directors has declared a dividend of US15 cents per share, payable on December 17, 2007 to shareholders of record at the close of business on November 30, 2007." More
- October 31, 2007 | Item | E-mail
Gaspe: Metco Renegociates Agreements on Parts of Mont de l'Observation Property - More
- October 31, 2007 | Item | E-mail
Freewest Resources Announces Second Closing of $800,000 "Flow-Through" Private Placement With MineralFields - More
- October 31, 2007 | Item | E-mail
Little Squaw Illuminates Gold Targets at Pedra De Fogo, Brazil - More
- October 31, 2007 | Item | E-mail
Geovic Mining Corp. Stock Options Granted - More
- October 31, 2007 | Item | E-mail
Claude Resources Reports Additional Seabee Exploration Results - "Claude Resources Inc. (TSX: CRJ / AMEX: CGR) today reported its most recent exploration update at the Company's Seabee mine. The following results are from the 2C9709 Deep Zone which is located approximately 500 metres west of the previously reported 2B9714 Deep Zone." More
- October 31, 2007 | Item | E-mail
Skygold Ventures Corporate Update - More
- October 31, 2007 | Item | E-mail
New Cantech Ventures Inc.: Announcement Regarding Additional Reed Lake Mineral Properties in Manitoba - More
- October 31, 2007 | Item | E-mail
Erdene Materials and Deepstep Kaolin Enter Agreement for Development of Ceramics Business - More
- October 31, 2007 | Item | E-mail
Grand Pacaraima Gold Corporation Announces Appointment of New Chairman - More
- October 31, 2007 | Item | E-mail
Appeal Filed in Federal Court Ruling Regarding Imperial's Red Chris Project - More
- October 31, 2007 | Item | E-mail
War Eagle Mining Company Inc.: Drilling Intersects 15.1 Meters of 100 Grams/Tonne Germanium and 31.25% Zinc - More
- October 31, 2007 | Item | E-mail
Macdonald Closes Strategic $10 Million Brokered Financing With Key Mining Individuals-Preparation Underway for November Drill Program - More
- October 31, 2007 | Item | E-mail
Hard Creek Nickel Corporation Appoints Ed Beswick P Eng. as Environmental Director - More
- October 31, 2007 | Item | E-mail
Pediment Exploration Creates Advisory Board - More
- October 31, 2007 | Item | E-mail
Ur-Energy Submits License Application to Nuclear Regulatory Commission - More
- October 31, 2007 | Item | E-mail
Andean Resources Limited: Quarterly Report, For the Quarter Ended 30 September 2007 - More
- October 31, 2007 | Item | E-mail
Global Gold Closes Chilean JV Acquisition at Valdivia; Plans to Commence Production in First Half of 2008 - More
- October 31, 2007 | Item | E-mail
Powertech Uranium Corp. Lists on the Toronto Stock Exchange - More
- October 31, 2007 | Item | E-mail
Augyva Intersects Copper-Gold Mineralization at Yasinski - More
- October 31, 2007 | Item | E-mail
Silk Road Resources Ltd. Announces Drilling Program on Bulagou Property - More
- October 31, 2007 | Item | E-mail
Ontex Resources Controls Dominant 629,900 Oz Gold Deposit in Beardmore-Geraldton Gold Belt - More
- October 31, 2007 | Item | E-mail
Pacific North West Capital Update on Coldwell PGM Project, Ontario - More
- October 31, 2007 | Item | E-mail
Palladon Announces Power Infrastructure Update for Iron Mountain Project - More
- October 31, 2007 | Item | E-mail
Santa Fe Gold Raises $450,000 in Private Offering and Receives Commitment for Additional $3.5 Million - More
- October 31, 2007 | Item | E-mail
Bison Gold Exploration Inc. (CNQ Symbol:BGEI) Announces Completion of Private Placement - More
- October 31, 2007 | Item | E-mail
Tumi Completes RC Drill Program at La Trini Silver-Gold Project, Mexico - "Tumi Resources Limited ("Tumi" and/or "the Company") (TSX VENTURE:TM - News; OTCBB:TUMIF - News; FRANKFURT:TUY - News). David Henstridge, President of Tumi, announces the completion of the Phase 3 reverse circulation (RC) drill program at its 100% owned La Trini silver-gold project in Mexico. Fifteen drill holes were completed totalling 2,331.5m." More
- October 31, 2007 | Item | E-mail
Amerigo Resources Ltd.: Lower Q3-2007 Earnings of US$6.6M vs. Earnings of US$8.3M in Q3-2006 Substantially Due to High Peak Energy Costs - More
- October 31, 2007 | Item | E-mail
NWT Uranium advances Picachos property in Mexico - More
- October 31, 2007 | Item | E-mail
Arianne Resources Inc./Havre Nord Project: Update and Natashquan Project-Preliminary Results - More
- October 31, 2007 | Item | E-mail
Chariot Resources Announces Appointment of EDC, K-EXIM, and KfW IPEX-BANK to Provide Senior Loans to Mina Justa - More
- October 31, 2007 | Item | E-mail
Lifespan Completes Joint Venture Agreement - More
- October 31, 2007 | Item | E-mail
Golden Eagle Finishes Environmental Permitting Studies Regarding Its New Mill Site at Its C Zone Gold Operation - More
- October 31, 2007 | Item | E-mail
Selwyn Resources Announces High-Grade in HC West Deposit Open Pit Target - More
- October 31, 2007 | Item | E-mail
Thundermin and Cornerstone intersect 2.5% Cu over 5.5 m at the Little Deer deposit - More
- October 31, 2007 | Item | E-mail
Rockcliff Acquires VMS Deposit, Snow Lake, Manitoba - More
- October 31, 2007 | Item | E-mail
North American Palladium Announces Scoping Study Results on Arctic Platinum Project in Finland - More
- October 31, 2007 | Item | E-mail
Luna Gold intercepts 105 m of 1.40 g/t Au at the Aurizona Gold Project, Brazil - More
- October 31, 2007 | Item | E-mail
HE-5 Resources, Corp. Sends Delegation to West Africa to Finalize Negotiations for Acquisition of Massive Iron Ore Property - More
- October 31, 2007 | Item | E-mail
Sierra Intersects 18 Metres Grading 2.46 g/t Gold at Cerro Colorado, Mexico; Expands Drilling Program - More
- October 31, 2007 | Item | E-mail
Trelawney Resources Inc.: New Gold Resource Estimate on Dorset - More
- October 31, 2007 | Item | E-mail
Radisson Mining Announces Drill Programs on the RM Nickel and O'Brien Mine Gold Properties - More
- October 31, 2007 | Item | E-mail
Crosshair Hits Best Intersection to Date at the C Zone - More
- October 31, 2007 | Item | E-mail
Azimut and Majescor further demonstrate regional-scale uranium potential in Nunavik, Quebec: up to 0.57% U3O8 along a 30-km trend at South Rae - More
- October 31, 2007 | Item | E-mail
Melkior Resources Inc.: Drilling for Gold Starts at Timmins - More
- October 31, 2007 | Item | E-mail
Majescor & Azimut Confirm Multiple Uranium Showings at South Rae, Nunavik, Quebec With Grades up to 0.57% U3O8 Over a 30-km Corridor - More
- October 31, 2007 | Item | E-mail
International Barytex Resources Ltd.: Shituru Project Update - More
- October 31, 2007 | Item | E-mail
Yorbeau Appoints Thomas Robyn as President and CEO, Announces Plans for 2008 - More
- October 31, 2007 | Item | E-mail
Centamin Egypt Limited Reports on Activities in the Quarter Ended September 30, 2007 - More
- October 31, 2007 | Item | E-mail
Cameco Reports Strong Third Quarter Earnings - More
- October 31, 2007 | Item | E-mail
Golden Phoenix Begins Gold Analysis of Mineral Ridge Leach Pads - More
- October 31, 2007 | Item | E-mail
Positive preliminary metallurgical results for Kenbridge nickel-copper project - More
- October 31, 2007 | Item | E-mail
Freeport-McMoRan Copper & Gold Inc. Names Senior Vice President and General Counsel - "Mr. McMillan, age 60, joins FCX after a 30-year career with the law firm of Jones, Walker, Waechter, Poitevent, Carrère & Denègre L.L.P. He has worked with FCX as a senior corporate and securities law attorney since 1995." More
- October 31, 2007 | Item | E-mail
Aurelian Resources Appoints CFO; Adds Two Senior Operations Team Members - "Aurelian Resources Inc. (TSX:ARU - News) today announced the appointment of Keith McKay, an experienced finance executive with extensive mining and public company experience, as Chief Financial Officer. The Company also announced the appointments of Ed Kelleher as Aurelian's Environmental Health and Safety Manager in Ecuador and John Meyer as Director, Technical Services working with the corporate group." More
- October 31, 2007 | Item | E-mail
Newmont Reports Third Quarter Net Income of $397 Million ($0.88 Per Share) - "Newmont Mining Corporation (NYSE: NEM - News) today announced third quarter financial and operating results. For the quarter, the Company reported net income of $397 million ($0.88 per share), compared with net income of $198 million ($0.44 per share) for the third quarter of 2006. Net income during the third quarter of 2007 benefited from a change in the valuation allowance on deferred tax assets associated with foreign tax credits ($84 million) and the Zarafshan-Newmont Joint Venture settlement ($54 million after-tax)." More
- October 31, 2007 | Item | E-mail
Avino Continues to Receive Encouraging Drill Results on Durango's Mexico Property - "Avino Silver and Gold Mines Ltd. (the "Company" or "Avino") (TSX VENTURE:ASM - News; OTCBB:ASGMF - News; BERLIN:GV6 - News; FRANKFURT:GV6 - News) is pleased to announce that it has received new assay results from holes SG-07-27, 28, 29, 30 and 31 while continuing to drill on two zones exploring its property located 80kms north east of Durango, Mexico." More
- October 31, 2007 | Item | E-mail
Kirkland Lake Gold Inc.: Lower D North Zone Extended to 271 Feet Below 5300 Level; Drill Hole 53-803 Returns 5.62 opt Over 8.6 Feet True Width on New Barchetta - "Kirkland Lake Gold Inc. (the "Company") (TSX:KGI - News; AIM:KGI) is pleased to announce an update on exploration drilling in the South Mine Complex (SMC). The SMC consists of 15 or more mineralized zones, one of which is the Lower D North (LDN) Zone. Exploration drilling continues to extend previously defined mineralization and intersect new zones." More
- October 31, 2007 | Item | E-mail
Gold Fields shuts shaft after two workers killed - "South Africa's Gold Fields (GFIJ.J: Quote, Profile, Research) said on Wednesday it had ceased blasting at its number 4 shaft at its Kloof mine for the rest of the day after two workers were killed in an accident." More
- October 31, 2007 | Item | E-mail
- Chris Mullen, Gold Seeker Report
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-- Posted 31 October, 2007 | |
