-- Posted 8 May, 2008 | Digg This Article
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| Close | Gain/Loss |
Gold | $880.40 | +$10.80 |
Silver | $16.80 | +$0.17 |
XAU | 182.15 | +4.20% |
HUI | 425.31 | +4.37% |
GDM | 1275.07 | +3.98% |
JSE Gold | 2460.31 | +50.29 |
USD | 73.48 | -0.01 |
Euro | 153.95 | -0.03 |
Yen | 96.32 | +0.79 |
Oil | $123.69 | +$0.16 |
10-Year | 3.805% | -0.062 |
T-Bond | 116.765625 | +1.015625 |
Dow | 12866.78 | +0.41% |
Nasdaq | 2451.24 | +0.52% |
S&P | 1397.68 | +0.37% |
The Metals:
Gold fell nearly $5 to as low as $865 by late trade in Asia, but it then rose throughout most of the rest of trade in London and New York and ended near its high of $885.60 with a gain of 1.24%. Silver fell to $16.44 and rose to $16.895 before it closed with a gain of 1.02%.
Euro gold rose near €572, platinum gained $56 to $2012, and copper lost over 4 cents to about $3.82.
Gold and silver equities gained over 3% by midmorning and rose to find about 4% gains by the close.
The Economy:
Report | For | Reading | Expected | Previous |
Initial Claims | 5/03 | 365K | 375K | 383K |
Wholesale Inventories | Mar | -0.1% | 0.5% | 0.9% |
Tomorrow at 8:30AM EST brings the Trade Balance for March expected at -$61.3 billion.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil rose to a new record intraday high of $123.93 late last night in electronic trade before it fell back off in New York today on profit taking after the OPEC secretary general said there is no shortage of oil in the market and prices are being driven higher by other factors like a weak dollar, but prices marched back higher to a new record by the close as that weak dollar eventually fell slightly after the Bank of England and European Central Bank both held interest rates steady and ECB President Trichet spoke about inflation risks. In after hours electronic trade today oil has so far climbed to a new peak at $124.57 at the time of writing.
Treasuries rose on worries over the economy as traders reinvested a large amount of maturing bonds after a positive 30-year note auction.
The Dow, Nasdaq, and S&P traded mixed, bust mostly slightly higher, as traders debated fluctuating oil prices and varied retail sales reports.
Among the big names making news in the market today were Toyota, Nasdaq, Cablevision, Wal-Mart, Costco, Illinois Tool and Enodis, Best Buy, and Warner Music.
The Commentary:
“The entire reason for gold's price decline from its high was first the suspicion then the universal opinion that the ECB would race with the Fed to drop interest rates. The euro tanked against the US dollar.
Pundits declared a bull market was in place. This dollar bull news was blasted over the airwaves 24 hours a day to every corner of the globe.
They were WRONG!
Gold has bottomed in this reaction. It will go to a minimum of $1650. The euro will trade at USD $2.”- Jim Sinclair, JSMineset.com
“June Gold finished up 10.9 at 882.1, 4.4 off the high and 8.6 up from the low.
May Silver closed up 0.177 at 16.794. This was equal to the low and equal to the high.
The gold market managed to reject the prior session's low and also at times Thursday managed to climb above the prior session's high. Clearly the gold market was initially undermined by the strength in the Dollar, but seeing the Dollar at least initially fall back from another new high for the move seemed to prompt some currency related buying. Perhaps the buying Thursday was short covering buying interest, but with Wednesday being the first lower close in several trading sessions, the short covering action was probably limited. However, it did seem as if renewed Hawkish dialogue from the ECB toward inflation resurrected the Euro and that in turn took some of the currency pressure off the gold market. Even more surprising is the fact that the gold market maintained its strength in the face of a mid day energy market slide and a recovery in the US Treasury and equity markets.
The silver market mostly underperformed or lagged behind the gold market during the morning trade. However, seeing the stock market re-gather itself just after mid session and seeing energy prices return to their highs in the early afternoon with the Dollar marginally lower seemed to put the outside market condition into perfect storm status again. However, weak copper price action and some lingering global slowing fears seemed to keep silver from fully embracing the bull's case.”- The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Nameless central bankers try talking dollar back up via FT
The Statistics:
As of close of business: 5/07/2008
Gold Warehouse Stocks: | 7,681,835 | -56,681 |
Silver Warehouse Stocks: | 133,960,545 | +184,023 |
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 | 590.57 | 18,987,548 | US$ 16,477m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 114.01 | 3,665,595 | US$ 3,231m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 20.92 | 671,903 | US$ 593m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 27.00 | 868,056 | US$ 763m |
Note: Change in Total Tonnes from yesterday’s data: StreetTRACKS added 6.13 tonnes.
COMEX Gold Trust (IAU)
Profile as of 5/7/2008 | |
Total Net Assets | $1,712,329,686 | Ounces of Gold
in Trust | 1,969,252.636 |
Shares Outstanding | 19,950,000 | Tonnes of Gold
in Trust | 61.25 |
Note: No change in Total Tonnes from yesterday’s data.
Silver Trust (SLV)
Profile as of 5/7/2008 | |
Total Net Assets | $3,180,637,669 | Ounces of Silver
in Trust | 190,589,294.100 |
Shares Outstanding | 19,250,000 | Tonnes of Silver
in Trust | 5,927.99 |
Note: No change in Total Tonnes from yesterday’s data.
The Stocks:
Yamana’s (AUY) first quarter result’s released after the close yesterday, IAMGOLD’s (IAG) project sale, New Gold’s (NGD) passed resolution, Allied Nevada’s (ANV) inferred resources estimate, Gold Fields’ (GFI) resumed mining operation at South Deep, ECU’s (ECU.TO) new vein, Aquiline’s (AQI.TO) drill results, and Bear Creek’s (BCM.V) drill results were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Aurizon | AZK +9.03% $5.07 |
2. New Gold | NGD+8.40% $8.52 |
3. Metallica | MRB +8.18% $7.41 |
LOSERS
1. Paramount | PZG -8.88% $1.54 |
2. Western Goldfields | WGW -8.16% $2.25 |
3. Banro | BAA -3.30% $8.20 |
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:
Freeport Defines High Molybdenite Zones in Q's Adit 2 - More
- May 08, 2008 | Item | E-mail
Stillwater Mining Reports First Quarter 2008 Profit - More
- May 08, 2008 | Item | E-mail
Newport Gold Inc. Announces New High Grade Gold Values Located - More
- May 08, 2008 | Item | E-mail
Denison Mines Corp. First Quarter 2008 Results Conference Call Thursday, May 15, 2008 - More
- May 08, 2008 | Item | E-mail
Canadian Orebodies Inc. Completes Private Placement Financing - More
- May 08, 2008 | Item | E-mail
Yamana surges on earnings; says M&A spree "done" - "Yamana Gold's (YRI.TO: Quote, Profile, Research) shares surged 8 percent on Thursday on stronger earnings and a dividend hike, while the gold miner's chief executive made it clear the company's aggressive acquisition spree of the past two years is a thing of the past." More
- May 08, 2008 | Item | E-mail
Inmet Mining Presentation at Merrill Lynch 2008 Global Metals, Mining & Steel Conference - More
- May 08, 2008 | Item | E-mail
Baja Mining Welcomes Tom Ogryzlo as Chairman of the Board - More
- May 08, 2008 | Item | E-mail
ASA Limited Declares Dividend - "ASA Limited (NYSE:ASA - News) today declared a dividend of $.30 per share on the common shares of the Company payable May 30, 2008 to shareholders of record on May 23, 2008." More
- May 08, 2008 | Item | E-mail
Six Drill Rigs Turning for Ur-Energy - More
- May 08, 2008 | Item | E-mail
