-- Posted 2 May, 2008 | | Source: SilverSeek.com
| Close | Gain/Loss | On Week |
Gold | $856.35 | +$7.15 | -3.45% |
Silver | $16.375 | +$0.265 | -2.67% |
XAU | 169.05 | +1.66% | -3.98% |
HUI | 399.54 | +1.31% | -2.75% |
GDM | 1190.58 | +1.05% | -3.88% |
JSE Gold | 2248.57 | -31.73 | -5.56% |
USD | 73.53 | +0.26 | +1.00% |
Euro | 154.25 | -0.41 | -1.13% |
Yen | 94.91 | -0.79 | -0.88% |
Oil | $116.32 | +$3.80 | -1.93% |
10-Year | 3.845% | +0.096 | -0.54% |
Bond | 116.234375 | -0.90625 | +0.55% |
Dow | 13058.20 | +0.37% | +1.29% |
Nasdaq | 2476.99 | -0.15% | +2.23% |
S&P | 1413.90 | +0.32% | +1.15% |
The Metals:
Gold briefly spiked down to $845.70 after the jobs report gave the dollar a lift, but the yellow metal quickly recovered to trade modestly higher for the rest of trade and ended near its high of $859.20 with a gain of 0.84%. Silver momentarily dropped to $16.04 before it made a high of $16.502 and closed with a gain of 1.6%.
Euro gold rose to about €556, platinum gained $30 to $1893, and copper gained over 13 cents to about $3.86.
Gold and silver equities rose over 2% by late morning before they cut into their gains in afternoon trade, but they still ended with over 1% gains.
The Economy:
Report | For | Reading | Expected | Previous |
Nonfarm Payrolls | Apr | -20K | -75K | -81K |
Unemployment Rate | Apr | 5.0% | 5.2% | 5.1% |
Average Workweek | Apr | 33.7 | 33.7 | 33.8 |
Hourly Earnings | Apr | 0.1% | 0.3% | 0.3% |
Factory Orders | Mar | 1.4% | 0.2% | -0.9% |
The BLS net birth/death adjustment added 267,000 payrolls to April’s data.
Also making economic news today was a huge increase in the fed’s Term Auction Facility in an effort to make banks lend at lower rates and try to solve the credit crisis or perhaps prepare for more turmoil to come. More details here.
All of this week’s economic reports:
Next week’s economic highlights include ISM Services on Monday, Productivity, Pending Home Sales, and Consumer Credit on Wednesday, Initial Jobless Claims and Wholesale Inventories on Thursday, and the Trade Balance on Friday.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil gained nearly $4 despite a higher dollar as supply concerns reignited on news that Turkey bombed Kurdish bases in Iraq.
The U.S. dollar index rose and treasuries fell as jobs data was not as horrible as expected and made it more likely the fed will not cut interest rates any further.
The Dow, Nasdaq, and S&P started off nicely higher on the jobs report, but all three indices fell off to end mixed on increasing skepticism over the validity of the jobs report.
Among the big names making news in the market Friday were Lexus, Mercedes, Viacom, Linens ‘n Things, Bank of America, and Chevron.
The Commentary:
“The so-called bull market in the US dollar is pitiful. It is hard to see how the media now accepts a strong dollar when in fact it does not exist.
The US dollar cannot be viewed on minute or daily charts, but rather on weekly as trends in currencies, once in place, rarely change on a dime.
Gold is simply a mirror image of the dollar. Breaking the mirror does not alter the form of what was being reflected. The dollar is still out there and is a long term bear.
Talking heads point to a head and shoulders on the gold price, failing to recognize that the gold price always looks terminally UGLY when it turns up. Gold has to be traded incorrectly in order to be correct. That is the nature of this beast along with volatility.”- Jim Sinclair, JSMineset.com
“For sure the effectiveness of The Gold Cartel and PPT has been dazzling, and has Planet Wall Street cheering, even if on the QT. The problem is all they have done is increase the Moral Hazard issue even further. Yes, they will get applause now. But, what happens down the road when this blatant market intervention leads another Bear Stearns fiasco out of nowhere … not one, but 25 of them, due to the reckless disregard of the free market system in the US, one in which excess and mistaken investment is allowed to be purged from the system?”- From yesterday’s Midas report by Bill Murphy of LemetropoleCafe.com
“June Gold finished up 7.1 at 858, 2.5 off the high and 11.5 up from the low.
May Silver closed up 0.26 at 16.381. This was equal to the low and equal to the high.
While it might take a little longer to transition the bull camp in the gold market back to a classic inflation posture, from the recent flight to quality argument, it is difficult to suggest that a recovery in the US economy will be a long term bearish development for the gold market. Certainly a host of buyers over the last year have banked on a persistent decline in the Dollar and in turn piled into gold. Certainly seeing fears of a historic financial debacle in the US added to the bull camp and therefore seeing the threat of a debacle in the US decline is naturally cause for a wave of long liquidation in gold. However, as was seen in the early action Friday morning, gold can rise in the face of residual Dollar strength and gold can also re-embrace the ongoing potentially historic inflationary threat that could unfold in the event that the US economy gets back on track. In short, the gold market appears to be facing a tug of war between an exodus of flight to quality longs and a possible influx of fresh buyers off a rekindling of classical inflation prospects.
The silver market was cheered by the initial attempt to rally in gold, but the market was also lifted by the sharp recovery bounce in the copper market. It goes without saying that strength in the energy complex contributed to the recovery bounce in silver. However, a number of silver traders expressed concern that upcoming strength in the US Dollar might make it difficult for physical or industrially demand driven commodities to recover in the near term.”- The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
James Turk: A four-month review
The Statistics:
As of close of business: 5/01/2008
Gold Warehouse Stocks: | 7,760,410 | - |
Silver Warehouse Stocks: | 133,609,840 | +97,492 |
Global Gold ETF Holdings
[WGC Sponsored ETF’s]
| Product name | Total Tonnes | Total Ounces | Total Value |
New York Stock Exchange Arca (NYSE Arca) AND Singapore Exchange (SGX) | StreetTRACKS Gold Shares | 580.45 | 18,662,044 | US$ 15,911m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 114.02 | 3,665,840 | US$ 3,141m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 20.92 | 671,947 | US$ 576m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 27.00 | 868,123 | US$ 763m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU)
Profile as of 5/1/2008 | |
Total Net Assets | $1,713,575,740 | Ounces of Gold
in Trust | 2,019,331.600 |
Shares Outstanding | 20,450,000 | Tonnes of Gold
in Trust | 62.81 |
Note: No change in Total Tonnes from yesterday’s data.
Silver Trust (SLV)
Profile as of 5/1/2008 | |
Total Net Assets | $3,146,652,048 | Ounces of Silver
in Trust | 189,184,261.300 |
Shares Outstanding | 19,100,000 | Tonnes of Silver
in Trust | 5,884.29 |
Note: Change in Total Tonnes from yesterday’s data: 107.78 tonnes were added to the trust.
The Stocks:
Apollo Gold’s (AGT) mill shutdown update, Barrick’s (ABX) 25th anniversary, Gold Fields’ (GFI) safety checks, and Northgate’s (NXG) financial results were among the big stories in the gold and silver mining industry making headlines Friday.
WINNERS
1. Cardero | CDY+5.21% $2.22 |
2. Endeavour | EXK+4.48% $2.80 |
3. Richmont | RIC +4.46% $3.51 |
LOSERS
1. Orezone | OZN -4.58% $1.25 |
2. Minco | MGH -4.24% $1.13 |
3. Gold Reserve | GRZ -3.78% $2.29 |
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:
Yukon-Nevada Gold Corp. closes private placement - More
- May 02, 2008 | Item | E-mail
Minterra Resource Corp.: Closing of Private Placement of 5,500,000 Units - More
- May 02, 2008 | Item | E-mail
Soltoro Releases Year Ended December 31, 2007 Results - More
- May 02, 2008 | Item | E-mail
SGS SA-Noront Resources Ltd.: Double Eagle Project Assay Data Reporting Update - More
- May 02, 2008 | Item | E-mail
Gold Star Announces Private Placement - More
- May 02, 2008 | Item | E-mail
Montana Tunnels Update - "Apollo Gold Corporation (“Apollo”) (TSX: APG - News) (AMEX: AGT - News) announced today that following the shutdown of the mill at Montana Tunnels last Sunday, April 27, 2008, which was announced in the press release dated April 28, 2008, the repair to the ball mill will take an extra week in addition to the two weeks previously announced and therefore, the mill is scheduled to commence operations in the week commencing May 19, 2008." More
- May 02, 2008 | Item | E-mail
Lounor drills 1.72 m of 5.8 g/t au at Harker - More
- May 02, 2008 | Item | E-mail
Katanga orders miners to cut power use to 40 pct - "Mining and mineral processing companies in Congo's Katanga province, which produces copper and cobalt, have been ordered to sharply cut their use of electric power by reducing operations, a senior official said on Friday." More
- May 02, 2008 | Item | E-mail
Lydian Intersects Greater Than 10m at 10% Zinc in Three Drill Holes on New Sulphide Target at Drazhnje Project in Kosovo - More
- May 02, 2008 | Item | E-mail
Uranium Hunter Appoints Mr. Akolisa Ufodike to Board of Directors - More
- May 02, 2008 | Item | E-mail
Barrick Gold Marks 25th Anniversary - "Twenty-five years ago today Barrick Gold Corporation (NYSE:ABX - News)(Toronto:ABX.TO - News) made its debut as a publicly traded company on the Toronto Stock Exchange. To mark the occasion a delegation of Barrick's senior leadership opened the market this morning at the TSX." More
- May 02, 2008 | Item | E-mail
Constellation notified of TSX continued listing review - More
- May 02, 2008 | Item | E-mail
Recent Drill Holes Return Encouraging Chromium, Nickel and PGE Mineralization on the Spider, KWG and Freewest Joint-Venture Property - More
- May 02, 2008 | Item | E-mail
Bannerman Resources Provides Market Update - More
- May 02, 2008 | Item | E-mail
Golden Harp Resources acquires outstanding NSRs on the Decker and Cook mineral leases - More
- May 02, 2008 | Item | E-mail
Millstream's Board of Directors Appoints Officers - More
- May 02, 2008 | Item | E-mail
Royal Roads and Buchans River proceed with the business combination - More
- May 02, 2008 | Item | E-mail
Firstgold Corp. Announces Completion of Financing - More
- May 02, 2008 | Item | E-mail
TTM Resources Inc. Announces CHE-08-12 intercepts 21.34 metres of 0.131% Mo, 50.64 metres of 0.101% Mo and 15.24 metres of 0.102% Mo - More
- May 02, 2008 | Item | E-mail
Safety Checks Carried Out on Winding Ropes Following South Deep Accident - "Gold Fields Limited ("Gold Fields") (NYSE, JSE, DIFX: GFI) reports today that engineering and technical teams have been working during the night and will continue this morning to carry out safety checks on all winding ropes at all its mining operations in South Africa following the tragic shaft accident at South Deep gold mine yesterday in which nine people lost their lives." More
- May 02, 2008 | Item | E-mail
Northgate Reports First Quarter Financial Results; Adjusted Net Earnings of $0.12 per Share - "Northgate Minerals Corporation (TSX: NGX - News; AMEX: NXG - News) today reported adjusted net earnings of $29,393,000 or $0.12 per diluted common share and cash flow from operations of $15,450,000 or $0.06 per diluted common share for the first quarter of 2008." More
- May 02, 2008 | Item | E-mail
- Chris Mullen, Gold Seeker Report
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-- Posted 2 May, 2008 | |
