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Gold Seeker Closing Report: Gold and Silver End Mixed While Oil Drops Again

By: Chris Mullen, Gold-Seeker.com


-- Posted 17 July, 2008 | | Source: SilverSeek.com

 

Close

Gain/Loss

Gold

$969.65

+$8.10

Silver

$18.70

-$0.05

XAU

186.96

-2.00%

HUI

437.12

-1.94%

GDM

1312.47

-1.64%

JSE Gold

2425.98

+34.89

USD

72.21

+0.15

Euro

158.46

+0.24

Yen

93.93

-1.18

Oil

$129.29

-$5.31

10-Year

4.038%

+0.104

T-Bond

114.640625

-0.859375

Dow

11446.66

+1.85%

Nasdaq

2312.30

+1.20%

S&P

1260.32

+1.20%

 
 
 

The Metals:

 

Gold and silver fell roughly 1% to $952.85 and $18.54 prior to 9AM EST and then rallied back higher and saw roughly 2% gains at as high as $978.90 and $19.14 by around lunch in New York before they fell back off into the close, but gold still ended with a gain of 0.84% while silver dropped to end with a loss of 0.27%.  At the time of writing, both metals have fallen over 1% from their closes in after hours access trade.

 

Euro gold rose to about €612, platinum lost to $35.50 to $1889, and copper gained roughly 6 cents to about $3.73.

 

Gold and silver equities fell nearly 1% at the open before they quickly rose to see about 2% gains, but they then fell back off for most of the rest of trade and ended as much as 2% lower.

 

The Economy:

 

Report

For

Reading

Expected

Previous

Building Permits

June

1091K

965K

978K

Housing Starts

June

1066K

960K

977K

Initial Claims

7/12

366K

380K

348K

Philadelphia Fed

July

-16.3

-15.0

-17.1

 

“Home building projects started in June surprisingly rose 9.1 percent due chiefly to a change in New York City building codes that, if it were ignored, would have seen starts decrease by 4.0 percent, a government report said on Thursday.”  There are no major economic reports due out tomorrow.

 

The Markets:

 

Charts Courtesy of http://finance.yahoo.com/

 

Oil was up and down and ultimately ended markedly lower for the third day in a row as easing supply concerns add to speculation over demand destruction.  Oil lost more than $15 or 11% over the last three days and that is the largest slide since 2003.  Natural gas fell over 7% to below $11 after inventories built a larger than expected 104bcf.

 

The U.S. dollar index fell in early trade on ECB inflation talk, but it rose by the close on better than expected US housing data that also sent treasuries lower.

 

Higher earnings reports sent the Dow, Nasdaq, and S&P higher at the open, but all three indices soon fell back off from roughly 1% gains to trade slightly lower after oil reversed the last two days of losses.  Oil’s gains were short-lived, however, and stocks rose to new highs after oil closed near its lows of the session.

 

Among the big names making news in the market today were Nokia, United Technologies, Continental Airlines, JPMorgan, MGIC, Coca-Cola, and IndyMac.

 

The Commentary:

 

Dear CIGAs,

 

Gold has major support between $940, $950 and $960. Assuming we have two sessions at or above $960, I elect that level as the low.

 

The odds of this support level holding are roughly 70%, which is quite positive. That is enough to take a first position after the high of $988.90.

 

The key item is the euro as gold is a currency.

 

Nothing has changed and yesterday was officially full of talking head madness.

 

Respectfully yours,”- Jim Sinclair, JSMineset.com

 

“August Gold finished up 8 at 970.7, 7.3 off the high and 17.2 up from the low.

 

September Silver closed down 0.07 at 18.735. This was 0.015 up from the low and 0.445 off the high.

 

With oil prices under significant duress and the Dollar showing at least temporary signs of strength, the action in the gold market on Thursday was pretty impressive. In fact, with the tight correlation between gold and oil and the inverse relationship between gold and the Dollar over the last several weeks, few traders would have expected gold to hold together in the face of the outside market action Thursday. In fact, given the recent extreme concentration on flight to quality issues, it is really surprising to see gold avoid big gains in the face of a moderately significant improvement in the US economic outlook. Perhaps the gold trade thinks that a recovery in the US economy is really the quickest way to see a true ignition in inflation, as the threat of too much slowing (stagflation) seemed to be behind the reversal in gold early in the week.

 

The silver market came under significantly more selling pressure than the gold market during the action Thursday and that is surprising considering that the classic physical commodity market fundamentals for silver might have been improved by the recovery in the US numbers and the bounce in the US equity market. Nonetheless, the silver market seemed to fade in the face of the energy decline and certainly in the face of the slight bounce in the Dollar. It is also possible that a series of technical chart violations in silver prompted some follow through technical selling.”- The Hightower Report, Futures Analysis and Forecasting

 

GATA Posts:

 

 

U.S. faces global funding crisis, Merrill Lynch warns

Sovereign funds cut exposure to weak dollar

Jim Sinclair: Do something more than just grumbling about a wrong

 

The Statistics:

As of close of business: 7/16/2008

Gold Warehouse Stocks:

7,696,099

+5,000

Silver Warehouse Stocks:

135,298,147

-

 

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) AND Tokyo Stock Exchange (TSE)

SPDR® Gold Shares

701.91

22,567,174

US$ 22,054m

London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse )

Gold Bullion Securities

118.04

3,794,974

US$ 3,701m

Australian Stock Exchange (ASX)

Gold Bullion Securities

10.87

349,131

US$ 341m

Johannesburg Securities Exchange (JSE)

New Gold Debentures

29.80

958,023

US$ 936m

Note: No change in Total Tonnes from yesterday’s data.

 

COMEX Gold Trust (IAU)

Profile as of 7/16/2008

 

Total Net Assets

$1,892,470,158

Ounces of Gold
in Trust

1,967,972.052

Shares Outstanding

19,950,000

Tonnes of Gold
in Trust

61.21

Note: No change in Total Tonnes from yesterday’s data.

 

Silver Trust (SLV)

Profile as of 7/16/2008

 

Total Net Assets

$3,687,506,777

Ounces of Silver
in Trust

195,872,336.400

Shares Outstanding

19,800,000

Tonnes of Silver
in Trust

6,092.31

Note: Change in Total Tonnes from yesterday’s data: 30.76 tonnes were added to the trust.

 

The Stocks:

 

Golden Predator’s (GP.TO) and Midway’s (MDW) term sheet for a business combination, IAMGOLD’s (IAG) resource update, Timberline’s (TLR) mobilized drill rig, Seabridge’s (SA) scoping study, Barrick’s (ABX) formal offer for Cadence, Bear Creek’s (BCM.V) completed interest purchase in Corani, Sterling Mining’s (SRLM.OB) granted stock options, First Majestic’s (FR.TO) drill results, and Silver Standard’s (SSRI) project sale to Aurcana (AUN.V) were among the big stories in the gold and silver mining industry making headlines today.

 

WINNERS

1.  Golden Star

GSS +6.67% $2.56

2.  Cardero

CDY +5.50% $2.11

3.  Paramount

PZG+5.38% $1.37

 

LOSERS

1.  Ivanhoe

IVN-6.65% $11.51

2.  Gammon

GRS -5.84% $9.52

3.  New Gold

NGD -5.50% $7.73

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:

NXA Inc. Announces Commencement of Drilling on Mineral Properties - More
- July 17, 2008 | Item | E-mail


Bear Creek completes 100% consolidation of Corani Silver deposit; update on pre-feasibility - "Bear Creek Mining Corporation (TSX Venture: BCM - News; "Bear Creek" or the "Company") is pleased to announce that, further to its news release dated June 11, 2008, the Company has completed its purchase of Rio Tinto's remaining 30% interest in the Corani silver and base-metals deposit and formalized the completion of its acquisition of Rio Tinto's 70% interest in Corani, resulting in Bear Creek owning a consolidated 100% interest in the Corani property." More
- July 17, 2008 | Item | E-mail


Aurelian Reports Enhanced FDN Metallurgical Results and Progress on Conceptual Development Plan - More
- July 17, 2008 | Item | E-mail


DUMONT establishes advisory committee - More
- July 17, 2008 | Item | E-mail


First Gold Announces the Closing of Private Placements for an Amount of $255,000 - More
- July 17, 2008 | Item | E-mail


Canada's Midway Gold to take over Golden Predator - "Midway Gold Corp (MDW.V: Quote, Profile, Research, Stock Buzz) has agreed to take over fellow Canadian mining junior Golden Predator Mines (GP.TO: Quote, Profile, Research, Stock Buzz) in an all-stock transaction that will boost Midway's Nevada-focused gold portfolio, the companies said on Thursday.

The proposed deal follows Golden Predator's announcement in late May that it will acquire silver explorer Fury Explorations (FUR.V: Quote, Profile, Research, Stock Buzz) for about C$19 million." More
- July 17, 2008 | Item | E-mail


Aurora Gold Corporation Is Pleased to Announce That Drilling Will Commence on the Joint Venture Săo Joăo Property - More
- July 17, 2008 | Item | E-mail


IAMGOLD Corporation: Westwood Progress and Resource Update - "IAMGOLD Corporation ("IAMGOLD" or "the Company") (Toronto:IMG.TO - News)(NYSE:IAG - News)(BOTSWANA: IAMGOLD) is pleased to provide a progress report and announce an increase in the resource base at the Westwood development project located two kilometres from the Company's Doyon mine in the Abitibi region of Northern Quebec." More
- July 17, 2008 | Item | E-mail


Golden Predator Mines Inc. and Midway Gold Corp. Announce Signing of a Term Sheet for Business Combination - "Golden Predator Mines Inc. ("Golden Predator") and Midway Gold Corp. ("Midway") are pleased to announce that the two companies have entered into a term sheet describing the principal terms of a business combination between the two companies. The business combination, if completed, would enhance Golden Predator's portfolio of high quality Nevada gold properties, which following the transaction would include the addition of Midway's Spring Valley property, in Pershing County, Nevada, the Pan deposit near Eureka, Nevada, and the epithermal bonanza Midway deposit near Tonopah, Nevada." More
- July 17, 2008 | Item | E-mail


S.Africa's Eskom sees no winter power cuts - "State-owned power utility Eskom [ESCJ.UL] said on Thursday it was confident South Africa could get through the winter months without power cuts.

South Africa's electricity grid nearly collapsed in January as Eskom battled to meet demand in Africa's biggest economy. The country's gold and platinum mines were shut for five days by the power crisis, sending metals prices soaring on world markets." More
- July 17, 2008 | Item | E-mail


Indicated resource and gold grade at TEAL's Otjikoto Gold Project increase by 128% and 13.6%, respectively - More
- July 17, 2008 | Item | E-mail


Nuinsco Resources Limited: Diamond Drilling to Commence Immediately at Prairie Lake Project - More
- July 17, 2008 | Item | E-mail


Silvio Ventures Inc. Changes Name to Regency Gold Corp. - More
- July 17, 2008 | Item | E-mail


Sterling Mining Announces Stock Option Grants - "Sterling Mining Company's board of directors, on June 30th, in accordance with the Company's stock option plan, approved the granting of 1,289,995 stock options to eleven officers, directors and employees of Sterling at an exercise price of $1.45 per share through dates ranging from July 2008 to April 2015." More
- July 17, 2008 | Item | E-mail


Drilling resumes on Kistabiche high-priority Titan 24 targets - More
- July 17, 2008 | Item | E-mail


Lundin Mining Corporation: Major New Deposit at Neves-Corvo - More
- July 17, 2008 | Item | E-mail


Hana Reports First Results at Zone 6 Located 95 Kilometers Northeast of Zone 2 - More
- July 17, 2008 | Item | E-mail


EXMIN Provides Moris Mine Production Update - More
- July 17, 2008 | Item | E-mail


Barrick Submits Formal Offer to Cadence Board - "Barrick's offer to acquire Cadence is an innovative response to energy cost challenges facing the mining industry. Cadence's production is expected to provide a long term economic hedge of about one-quarter of Barrick's annual direct oil consumption and a considerable portion of its natural gas consumption." More
- July 17, 2008 | Item | E-mail


PCFG - Production Plant Modifications - More
- July 17, 2008 | Item | E-mail


General Jim Gervais joins Board of Northern Gold Mining Inc. - More
- July 17, 2008 | Item | E-mail


Erdene Announces Reverse Takeover of Beta Minerals Inc. - More
- July 17, 2008 | Item | E-mail


Temoris Resources Inc.: Beaverdell Ag-Pb-Zn (Cd) Project Rock Chip Sample Results - More
- July 17, 2008 | Item | E-mail


Platinex Welcomes First Nations' Advisor, Chief Glenn Nolan - More
- July 17, 2008 | Item | E-mail


Serengeti Signs Major Option Agreement with Newcrest on Croy Bloom/Davie Creek Property - More
- July 17, 2008 | Item | E-mail


First Majestic Silver Corp.: Major Intersection at San Juan Silver Mine; Drill Hole Intersects 74.20 Metres (243 ft) of 359 g/t Ag, 7.07% Pb & 7.60% Zn - "First Majestic Silver Corp. (Toronto:FR.TO - News)(Other OTC:FRMSF.PK - News)(Frankfurt:FMV.F - News)(WKN: A0LHKJ) ("First Majestic" or the "Company") is pleased to announce additional drill results from the ongoing drilling program at the San Juan Silver Mine located in Zacatecas, Mexico." More
- July 17, 2008 | Item | E-mail


SIRIOS: 1M$ Option on the ESCALE Gold Property, James Bay, Quebec - More
- July 17, 2008 | Item | E-mail


Paladin Energy Releases Third Quarter Update to June 30, 2008 - More
- July 17, 2008 | Item | E-mail


Mexoro Minerals Intersects High Grade Mineralization at the Cieneguita Project, Mexico - More
- July 17, 2008 | Item | E-mail


Sherwood Releases Further High Grade Copper-Gold From Area 2 & Area 118 at Minto Mine - More
- July 17, 2008 | Item | E-mail


Golden Phoenix Strengthens Its Investor Communications and Awareness Program - More
- July 17, 2008 | Item | E-mail


Uruguay Mineral Exploration Inc: Exploration Report for the Fourth Quarter Ended 31 May 2008 - More
- July 17, 2008 | Item | E-mail


Intrepid Mines Limited: Casposo to Proceed to Production - More
- July 17, 2008 | Item | E-mail


Timberline Mobilizes for Drilling At Butte Highlands - "Timberline Resources Corporation (AMEX:TLR - News) announced today that a drill rig has been mobilized to its Butte Highlands Gold Project in southwestern Montana to begin a planned 17-hole, 8500-meter core drill program this week. The Butte Highlands project lies on patented ground with no underlying royalties and is 100-percent owned by Timberline." More
- July 17, 2008 | Item | E-mail


Independent Road Access Study Completed for Seabridge Gold's KSM Project - "Seabridge Gold (Toronto:SEA.TO - News)(SA - News) announced today that McElhanney Consulting Services Ltd. ("McElhanney") has completed a scoping level study evaluating road access alternatives for the Company's 100% owned KSM Project located near Stewart, British Columbia, Canada. The McElhanney study is appropriate for use in the ongoing National Instrument 43-101 Preliminary Assessment for the KSM project which is expected to be completed later this year. The McElhanney study will be filed on SEDAR in its entirety." More
- July 17, 2008 | Item | E-mail


Silver Standard Resources Inc.: Sale of Shafter Silver Project to Aurcana Closes - "Under the terms of the sale agreement, Aurcana has paid the company a total consideration of $42.6 million consisting of $23 million in cash, 15 million Aurcana common shares (at a deemed price of $0.64 per share) and a $10 million convertible debenture. The debenture has a 3% coupon with a three-year term and is convertible into 6.6 million Aurcana common shares at $1.515 per share." More
- July 17, 2008 | Item | E-mail


Barrick to buy Cadence Energy for C$410 million - "Barrick Gold Corp (ABX.TO: Quote) (ABX.N: Quote) said on Thursday it submitted a formal offer to buy Cadence Energy Inc (CDS.TO: Quote) for C$410 million ($410 million) as it looks for ways to mitigate the rising energy costs." More
- July 17, 2008 | Item | E-mail


 

- Chris Mullen, Gold Seeker Report

 

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© Gold Seeker 2008

Note: This article may be reproduced provided the article, in full, is used and mention to Gold-Seeker.com is given.

 

 

Disclosure: The owner, editor, writer and publisher and their associates are not responsible for errors or omissions.  The author of this report is not a registered financial advisor.  Readers should not view this material as offering investment related advice. Gold-Seeker.com has taken precautions to ensure accuracy of information provided. Information collected and presented are from what is perceived as reliable sources, but since the information source(s) are beyond Gold-Seeker.com’s control, no representation or guarantee is made that it is complete or accurate.  The reader accepts information on the condition that errors or omissions shall not be made the basis for any claim, demand or cause for action.  Past results are not necessarily indicative of future results.  Any statements non-factual in nature constitute only current opinions, which are subject to change.  Nothing contained herein constitutes a representation by the publisher, nor a solicitation for the purchase or sale of securities & therefore information, nor opinions expressed, shall be construed as a solicitation to buy or sell any stock, futures or options contract mentioned herein.  Investors are advised to obtain the advice of a qualified financial & investment advisor before entering any financial transaction.


-- Posted 17 July, 2008 | |


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