-- Posted 4 August, 2008 | | Source: SilverSeek.com
| Close | Gain/Loss |
Gold | $899.35 | -$9.35 |
Silver | $17.13 | -$0.32 |
XAU | 154.87 | -4.72% |
HUI | 378.04 | -3.10% |
GDM | 1125.38 | -3.40% |
JSE Gold | 1884.05 | -107.49 |
USD | 73.44 | UNCH |
Euro | 155.80 | +0.23 |
Yen | 92.37 | -0.50 |
Oil | $121.41 | -$3.69 |
10-Year | 3.972% | +0.024 |
T-Bond | 115.703125 | -0.203125 |
Dow | 11284.15 | -0.37% |
Nasdaq | 2285.56 | -1.10% |
S&P | 1249.01 | -0.90% |
The Metals:
After climbing to $915.40 in Asia gold then dropped to $898.40 by midday in London before it rallied back higher in early New York trade to trade near unchanged on the day, but it then fell back off again to a new low of $894.85 and ended almost $5 off that low with a loss of 1.03%. Silver rose to $17.62 and fell to $17.215 before it also rallied back higher in early New York action and traded near unchanged, but it too fell back off to a new low of $16.878 and ended about 25 cents off that low with a loss of 1.83%.
Euro gold fell to about €577, platinum lost another $84.50 to $1556, and copper fell roughly 14 cents to about $3.49.
Gold and silver equities steadily fell for most of trade and ended about 4% lower.
The Economy:
Report | For | Reading | Expected | Previous |
Personal Income | June | 0.1% | -0.2% | 1.8% |
Personal Spending | June | 0.6% | 0.4% | 0.8% |
Factory Orders | June | 1.7% | 0.7% | 0.9% |
Prices spiked 0.8% in June, the most since 1981. “Adjusted for inflation, June's real spending fell 0.2%, the first decline since February. Real consumer spending is up just 1.2% from a year ago, the weakest performance during this business cycle.”
Tomorrow at 10AM EST is the ISM Services report for July expected at 48.7 and at 2:15PM is the FOMC policy statement that is expected to keep the fed funds rate unchanged at 2.0%.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil fell to a three-month low under $120 at one point as storm fears eased, OPEC output was seen as rising, and US economic data indicated that higher energy prices have clearly cut into demand.
The U.S. dollar index rose at one point and treasuries eventually fell as oil dropped and the high inflation reading led some to speculate the fed may be hawkish in their statement tomorrow, but few expect any changes in the fed funds rate anytime soon and the dollar ended unchanged on the day as a result.
The Dow, Nasdaq, and S&P traded mostly slightly lower on inflation worries, but lower oil prices seemed to prevent stocks from seeing any significant losses.
Among the big names making news in the market today were HSBC, Humana, Boscov’s, and Dish.
The Commentary:
“Using the markets as our blackboard, Friday and today provide us with a few important lessons. Indeed, I feel these lessons are worth posting in a place where they can be seen and reviewed easily. Here they are:
1. Gold is a currency - about that there is no question.
2. Any prospect of stagflation is anti-dollar. As such, the Formula is totally correct. Click here to review the Formula.
3. Geopolitics and energy are major gold/dollar drivers and these are set to deteriorate from 2008 to 2010. Then Pakistan goes fundamentalist with far reaching consequences.
I will give you one more: I see gold entering a fight midway between $1,100 & $1,200, then through $1,200 for a temporary kick in the rear.”- Jim Sinclair, JSMineset.com
“August Gold finished down 8.9 at 900.1, equal to the high and equal to the low.
September Silver closed down 0.38 at 17.14. This was 0.185 up from the low and 0.265 off the high.
Clearly seeing broad-based physical commodity market liquidation action provided the gold market with an added measure of selling pressure today. Seeing crude oil prices slide probably deflated the flight to quality interest in the gold market and it is also likely that slight gains in the Dollar provided another source of selling. Surprisingly incendiary geopolitical dialogue from Iran regarding a major oil transportation artery also failed to provide support to gold prices during the trade Monday. In addition to the sharp slide in oil prices US economic data was also better than expected on Monday morning and that in turn probably supported the Dollar and also served to reduce flight to quality concerns toward the US economy. All things considered the gold market simply had a long laundry list of bearish developments at the start of the new week.
Like a host of other physical commodity markets, the silver market seemed to come under a concentrated wave of selling pressure. Given the massive selling pressure in the quasi industrial metals markets of platinum and copper, some spillover selling of silver was to be expected. However, given that gold was also under intense pressure one could conclude that silver was under pressure from both the financial and physical commodity market angle. Surprisingly silver just wasn't able to garner any respect even though the US scheduled economic numbers were positive and there was certainly ongoing concerns toward the US financial sector and there were fresh concerns of conflict in the Middle East.”- The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
William Greider: The Fed is the problem, not the solution
Naked shorting's early critic starts to see some vindication
India's central bank shifts slowly away from dollar
The Statistics:
As of close of business: 8/01/2008
Gold Warehouse Stocks: | 8,431,533 | - |
Silver Warehouse Stocks: | 139,213,832 | - |
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) AND Hong Kong Stock Exchange (HKEx) | SPDR® Gold Shares | 674.02 | 21,670,309 | US$ 19,765m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 119.70 | 3,848,538 | US$ 3,454m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 10.87 | 349,061 | US$ 314m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 30.16 | 969,676 | US$ 884m |
Note: Change in Total Tonnes from yesterday’s data: SPDR added 0.62 tonnes.
COMEX Gold Trust (IAU)
Profile as of 8/1/2008 | |
Total Net Assets | $1,788,237,818 | 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 8/1/2008 | |
Total Net Assets | $3,548,215,925 | Ounces of Silver
in Trust | 201,805,748.100 |
Shares Outstanding | 204,000,000 | Tonnes of Silver
in Trust | 6,276.86 |
Note: No change in Total Tonnes from yesterday’s data.
The Stocks:
Mining news was limited with the TSX closed for Civic Day in Canada, but Gold Fields (GFI) announced plans to cut 1,885 jobs and Harmony (HMY) announced a gold reserve of 253.6 million ounces.
WINNERS
1. Gold Reserve | GRZ +4.83% $1.52 |
2. Exeter | XRA +4.66% $3.82 |
3. Cardero | CDY +2.35% $2.18 |
LOSERS
1. Jaguar | JAG -17.04% $8.13 |
2. Freeport | FCX +12% $80.35 |
3. Allied Nevada | ANV -11% $5.34 |
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:
Douglas Lake Minerals Board of Directors and Director of Exploration Appointments - More
- August 04, 2008 | Item | E-mail
Global Gold Agrees to Sell Chilean Interests - More
- August 04, 2008 | Item | E-mail
Tornado Gold Closes Over Four Million ($4,000,000 USD) in Equity Financing to Date, and Appoints Former General Manager of Barrick Gold Corp., Mr. Larry Kornze - More
- August 04, 2008 | Item | E-mail
U.S. Precious Metals, Inc.: Assays on Selected Intervals From Drill Hole Number 5 Produce Most Encouraging Results to Date - More
- August 04, 2008 | Item | E-mail
Mirabela makes first drawing under financing package - More
- August 04, 2008 | Item | E-mail
Gold Fields to Cut 1,885 Jobs as Part of South Deep Redesign - "Gold Fields Ltd., the world's fourth- biggest gold producer, will cut 1,885 jobs at its South Deep mine as part of a mine redesign initially announced in February.
The cuts will be made through a voluntary severance program, spokesman Daniel Thole said in an interview from Johannesburg. The program was oversubscribed with 2,053 people applying for severance packages, he said." More
- August 04, 2008 | Item | E-mail
S.Africa's Harmony Gold reserve 253.6 mln oz at end-June - "South African miner Harmony Gold (HARJ.J: Quote, Profile, Research, Stock Buzz) said on Monday its gold reserves at the end of June stood at 253.6 million ounces." More
- August 04, 2008 | Item | E-mail
- Chris Mullen, Gold Seeker Report
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-- Posted 4 August, 2008 | |
