-- Posted 8 August, 2008 | | Source: SilverSeek.com
Please Note: There will not be a Gold Seeker Report on Monday.
| Close | Gain/Loss | On Week |
Gold | $857.30 | -$13.40 | -5.66% |
Silver | $15.29 | -$0.935 | -12.38% |
XAU | 144.47 | -4.41% | -11.12% |
HUI | 334.13 | -6.33% | -14.36% |
GDM | 1012.41 | -5.73% | -13.10% |
JSE Gold | 1865.46 | -50.56 | -6.33% |
USD | 75.86 | +1.32 | +3.30% |
Euro | 150.20 | -3.01 | -3.39% |
Yen | 90.74 | -0.61 | -2.25% |
Oil | $116.34 | -$3.68 | -7.00% |
10-Year | 3.950% | +0.015 | +0.05% |
Bond | 116.375 | +0.125 | +0.39% |
Dow | 11734.32 | +2.65% | +3.60% |
Nasdaq | 2414.10 | +2.48% | +4.46% |
S&P | 1296.31 | +2.39% | +2.86% |
The Metals:
Gold steadily fell throughout most of world trade and dropped to as low as $850.65 by about 10AM EST in New York before it rebounded nearly 1% into the close, but it still ended with a loss of 1.54%. Silver fell throughout the day and ended near its low of $15.245 with a loss of 5.76%.
Euro gold rose to over €570 on significant euro weakness, platinum lost $23.50 to $1555, and copper fell nearly 6 cents to about $3.40.
Gold and silver equities fell for most of the day and ended roughly 5% lower.
The Economy:
Report | For | Reading | Expected | Previous |
Productivity | Q2 | 2.2% | 2.5% | 2.6% |
Wholesale Inventories | June | 1.1% | 0.6% | 0.9% |
All of this week’s economic reports:
Next week’s economic highlights include the Trade Balance and Treasury Budget on Tuesday, Export and Import Prices, Retail Sales, and Business Inventories on Wednesday, CPI and Initial Jobless Claims on Thursday, and the NY Empire State Index, Net Foreign Purchases, Capacity Utilization, Industrial Production, and Michigan Sentiment on Friday.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil fell markedly as the U.S. dollar index rose on the view that the financial and economic problems in the US have spread to the rest of the world and influenced central banks to join the fed in its policy of not raising interest rates anytime soon.
Treasuries saw slight gains while the Dow, Nasdaq, and S&P soared higher on lower energy prices.
Among the big names making news in the market Friday were Fannie Mae, RBS, Beazer Homes, MBIA, and McDonald’s.
The Commentary:
“August Gold finished down 12.9 at 857.8, equal to the high and equal to the low.
September Silver closed down 0.927 at 15.33. This was 0.04 up from the low and 0.46 off the high.
The gold market was pushed to the lowest price level for the year as a surge higher in the Dollar along with a steep drop in oil prices triggered broad based selling in a wide range of physical commodity markets. This type of outside market action tends to have a bearish influence on gold since a strong Dollar and weak oil prices lower gold's appeal as a hedge against inflation. In fact, seeing a sharp recovery in equity markets certainly lowers the economic anxiety a bit which in turn is reducing gold's appeal as a safe haven asset. Ideas that the Fed's next rate move is likely higher and that Euro-zone rates may drop due to softening economic conditions also appears to be dimming investment demand for gold. Lower gold prices are expected to attract physical buyers to the market, but spec liquidation certainly dominated the action during Friday's trade. Even an escalation in geopolitical tensions with a military confrontation between Russian troops and Georgian separatists failed to provide support to gold this session.
The silver market couldn't escape the massive liquidation that took place across all metals markets on Friday. The combination of an upside trend reversal move in the Dollar and a drop in oil prices to the lowest levels in 3 months trounced the appeal of silver as an alternative investment. This bearish outside market action tends to dampen inflation expectations and that lowers silver's appeal as a safe haven investment. With the market falling below key levels, sell-stops certainly appeared to accelerate silver's decline with prices dropping to the lowest level for the year.”- The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Are central banks getting it all wrong?
James Turk: Central banks intervening to support U.S. dollar
'An Inconvenient Truth' for the U.S. economy
If the CFTC can botch oil market regulation like this ...
Rate cuts likely ahead for European Central Bank
Ambrose Evans-Pritchard: Governments caused credit crisis, capitalism gets blamed
The Statistics:
As of close of business: 8/07/2008
Gold Warehouse Stocks: | 8,433,167 | +6,457 |
Silver Warehouse Stocks: | 138,072,559 | -28,056,886 |
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 | 659.31 | 21,197,322 | US$ 18,463m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 119.39 | 3,838,367 | US$ 3,283m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 10.87 | 349,046 | US$ 299m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 30.16 | 969,612 | US$ 845m |
Note: Change in Total Tonnes from yesterday’s data: The LSE subtracted 0.31 tonnes.
COMEX Gold Trust (IAU)
Profile as of 8/7/2008 | |
Total Net Assets | $1,712,774,982 | Ounces of Gold
in Trust | 1,967,280.000 |
Shares Outstanding | 19,950,000 | Tonnes of Gold
in Trust | 61.19 |
Note: No change in Total Tonnes from yesterday’s data.
Silver Trust (SLV)
Profile as of 8/7/2008 | |
Total Net Assets | $3,305,201,257 | Ounces of Silver
in Trust | 199,248,650.600 |
Shares Outstanding | 201,500,000 | Tonnes of Silver
in Trust | 6,197.33 |
Note: No change in Total Tonnes from yesterday’s data.
The Stocks:
Cardero’s (CDY) acquired shares of ITH (THM), Claude’s (CGR) second quarter results, Gammon Gold’s (GRS) second quarter results, Aurizon’s (AZK) second quarter results, IAMGOLD’s (IAG) second quarter results, NovaGold’s (NG) lawsuit, and Coeur’s (CDE) second quarter results were among the big stories in the gold and silver mining industry making headlines Friday.
WINNERS
1. ITH | THM +3.85% $1.35 |
2. US Energy | USEG+1.66% $3.06 |
3. Rubicon | RBY +0.85% $1.18 |
LOSERS
1. Coeur | CDE -15.04% $2.09 |
2. Almaden | AAU -13.25% $1.57 |
3. Golden Star | GSS -11.82% $1.79 |
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:
Adanac Molybdenum Corp.: Fish Habitat Reserve Facilitates Ruby Creek Tailings Permit - More
- August 08, 2008 | Item | E-mail
Merc Agrees to Acquire Golden Sierra and Appoint Dr. Michael Byron as CEO - More
- August 08, 2008 | Item | E-mail
Can-Cal Withdraws Previously Announced Results for its Wikieup and Pisgah Projects - More
- August 08, 2008 | Item | E-mail
Cardero Acquires 2,000,000 Common Shares of International Tower Hill Mines Ltd.; Cardero Grants Incentive Stock Options - "Cardero Resource Corp. ("Cardero" or the "Company") (Toronto:CDU.TO - News)(CDY - News)(Frankfurt:CR5.F - News) announces that, on August 4, 2008, the Company exercised the 2,000,000 common share purchase warrants of International Tower Hill Mines Ltd. (CDNX:ITH.V - News)(THM - News)(Frankfurt:IW9.F - News) ("ITH") held by it and thereby acquired an additional 2,000,000 common shares of ITH at a price of CAD 1.00 per share." More
- August 08, 2008 | Item | E-mail
La Mancha Posts its Highest Quarterly Gold Production to Date - More
- August 08, 2008 | Item | E-mail
Rocmec Unveils its New Underground 75 TPD Treatment Plant - More
- August 08, 2008 | Item | E-mail
Nevoro Inc. Completes Second Tranche of Private Placement Raising Gross Proceeds of $2.3 Million - More
- August 08, 2008 | Item | E-mail
Iamgold seeking acquisitions, rebounds to profit - "Iamgold (IMG.TO: Quote, Profile, Research, Stock Buzz) has added its name to the list of mining companies seeking cheap takeovers among hard-hit exploration firms.
Speaking on a conference call to discuss Iamgold's second-quarter profit, Chief Executive Joe Conway said the mid-tier gold producer was actively looking for acquisitions, particularly in West Africa, where it is already active." More
- August 08, 2008 | Item | E-mail
Yukon-Nevada Gold Corp.'s Jerritt Canyon engages contract miner - More
- August 08, 2008 | Item | E-mail
Claude Resources Inc. Announces Second Quarter 2008 Results - "Claude Resources reports a second quarter net loss of $0.8 Million ($0.01) per share, a significant improvement over the $3.4 Million net loss ($0.04) per share recorded in the second quarter of 2007. For the first six months of 2008, the Company recorded a net loss of $0.3 Million ($0.00) per share. This compares to a net loss of $3.4 Million ($0.04) per share for the comparable period of 2007. These results reflect the impact of significantly higher gold prices realized." More
- August 08, 2008 | Item | E-mail
Majescor Outlines Two Significant Uranium-Bearing Outcrop Zones Within 30 km-Long Prospective Corridor at South Rae, Nunavik, Quebec - More
- August 08, 2008 | Item | E-mail
Commerce Resources Corp. Receives Updated Resource Estimate for Upper Fir Tantalum and Niobium Project - More
- August 08, 2008 | Item | E-mail
Tao Minerals Posts Additional Photos of El Colmillo Gold Mine on Website - More
- August 08, 2008 | Item | E-mail
Firstgold Corp. Arranges US $15.75 Million Secured Loan Facility - More
- August 08, 2008 | Item | E-mail
Gladstone Pacific Nickel Limited (ACN 104 261 887) ("GPNL" or "the Company") - Resource Development International Limited to acquire Gladstone Pacific Nickel - More
- August 08, 2008 | Item | E-mail
Khan Resources Extends Offer for Western Prospector - More
- August 08, 2008 | Item | E-mail
Yukon-Nevada Gold Corp.'s Jerritt Canyon to focus on profitability - More
- August 08, 2008 | Item | E-mail
Ireland Inc. Receives BLM Approval for Expanded Drill Program - More
- August 08, 2008 | Item | E-mail
Gammon Gold Confirms Q2 as Another Consecutive Quarter of Record Key Performance Indicators Including Record Production of 71,154 Gold Equivalent Ounces - "We are pleased to report yet another quarter with record achievements. Q2 performance has built on our strong Q1 performance and this quarter over quarter improvement in performance was leveraged by the strong positive momentum we have achieved in executing the first phase of our 3-phase turn around strategy. The first phase of this strategy has resulted in Q2 2008 providing a 48% improvement in production, a 25% decrease in total cash costs, a 132% increase in net earnings per share, a $22.6 million improvement in operating cash flow and an $16.1 million improvement in net free cash flow over Q4 2007 when the turn around strategy was first launched." More
- August 08, 2008 | Item | E-mail
Coeur Reports Second Quarter Results: Palmarejo on Schedule for March 2009 Start-up; San Bartolome Now Shipping Silver - "Coeur d’Alene Mines Corporation (NYSE:CDE - News) (TSX:CDM - News) (ASX:CXC - News) today announced second quarter sales of metal of $50.0 million and a net loss of $5.4 million, or $0.01 per share. The second quarter results include $10.7 million of pre-development expenses at the Palmarejo project in Mexico." More
- August 08, 2008 | Item | E-mail
Aurizon reports highlights of second quarter 2008 results - "Net earnings of $5.6 million, or $0.04 per share, were achieved in the second quarter of 2008 compared to net earnings of $7.0 million, or $0.05 per share, in the same period of 2007. Operating results were impacted by a $3.2 million recovery of corporate takeover defense costs and non-cash derivative gains of $1.3 million, on an after tax basis. After adjusting for these items, net earnings for the quarter were $1.1 million, or $0.01 per share, compared to adjusted net earnings in the same quarter of 2007 of $0.3 million or $0.00 per share." More
- August 08, 2008 | Item | E-mail
IAMGOLD Reports Strong Second Quarter Net Earnings and Operating Cash Flow; and Increases Gold Production Outlook - "Net earnings increased by 169%(1) to $33.3 million or $0.11 per share in the second quarter of 2008 compared to adjusted net earnings of $12.4 million or $0.04 per share in the second quarter of 2007." More
- August 08, 2008 | Item | E-mail
Lawsuit Filed Against NovaGold and Certain of Its Officers - "NovaGold Resources Inc. (Toronto:NG.TO - News)(NG - News) today learned that it and certain of its officers have been named as defendants in a purported securities class action lawsuit filed on August 7, 2008 in the United States District Court for the Southern District of New York. The complaint alleges, among other things, that the defendants failed to disclose materially adverse facts about the Company's operations and prospects in various public statements and filings from October 25, 2006 through November 23, 2007. The Company believes that it has substantial and meritorious legal and factual defenses, which the Company intends to pursue vigorously." More
- August 08, 2008 | Item | E-mail
- Chris Mullen, Gold Seeker Report
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-- Posted 8 August, 2008 | |
