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Gold Seeker Closing Report: Gold and Silver Soar With Oil While Dollar Drops

By: Chris Mullen, Gold-Seeker.com


-- Posted 21 August, 2008 | | Source: SilverSeek.com

 

Close

Gain/Loss

Gold

$833.35

+$23.15

Silver

$13.74

+$0.715

XAU

153.77

+5.79%

HUI

353.14

+6.86%

GDM

1060.01

+6.62%

JSE Gold

1769.47

+42.91

USD

76.11

-0.83

Euro

149.01

+1.54

Yen

92.24

+1.23

Oil

$121.18

+$5.62

10-Year

3.838%

+0.039

T-Bond

117.734375

-0.3125

Dow

11430.21

+0.11%

Nasdaq

2380.38

-0.36%

S&P

1277.72

+0.25%

 
 

 

The Metals:

 

Gold and silver climbed higher throughout most of world trade and ended near their highs of $838.95 and $13.865 with gains of 2.86% and 5.49%.  A jump in oil and a drop in the dollar driven by increased financial and geopolitical worries had many buying the ultimate safe haven assets.

 

Euro gold rose to over €560, platinum gained $89 to $1453, and copper gained over 15 cents to about $3.56.

 

Gold and silver equities rose over 4% at the open, continued to rise throughout the day, and closed with about 6% gains.

 

American Eagle gold coins sold out after spree
Reuters

U.S. Suspends Sales of American Eagle Gold Coins, Treasury Says
Bloomberg

 

The Economy:

 

Report

For

Reading

Expected

Previous

Initial Claims

8/16

432K

438K

445K

Leading Indicators

July

-0.7%

-0.3%

0.0%

Philadelphia Fed

Aug

-12.7

-13.4

-16.3

 

There are no major economic reports due out tomorrow.

 

The Markets:

 

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

 

Increased tensions between Georgia, Russia and the US and lingering concerns over what Tropical Storm Fay will do sent oil about 5% higher.  While these stories have been around for several days, most had expected both to have gone away by now and the market was forced to finally price them in.  Russia still has not pulled out of Georgia as had been hoped, rhetoric from Russia surrounding the missile defense deal between the US and Poland has increased, and Tropical Storm Fay continues to puzzle forecasters with its movements.

 

The U.S. dollar index saw significant losses as financial problems also refuse to go away and instead get even worse at firms like Lehman Brothers, Fannie and Freddie, and others.  The false assumption of the past five weeks that drove the dollar higher was that the worst may have been behind us for the credit crisis and as more in the market re-realize that is not the case the greater trend of the long term bear market in the dollar resumes.  Another round of poor economic data also reminded traders of just one of the many other fundamental reasons the dollar has been falling for some time and will likely continue to do so until that slew of problems is corrected, if possible.

 

Treasuries fell as the Dow, Nasdaq, and S&P traded mixed for most of the day and ended near unchanged despite the financial and geopolitical worries greatly impacting other aspects of the markets.

 

Among the big names making news in the market today were Lehman Brothers, Fannie and Freddie, Regions Financial, Barnes & Noble, Boeing, and National City.

 

The Commentary:

 

“December Gold finished up 22.7 at 839, 5 off the high and 9.5 up from the low.

 

September Silver closed up 0.687 at 13.727. This was 0.147 up from the low and 0.123 off the high.

 

The gold market managed a significant upward adjustment and seemed to garner the majority of the strength off the back of the Dollar breakdown. However, a broad based seemingly coordinated physical commodity market rally certainly seemed to add to the bullishness in gold. With the oil market also leading the charge higher the gold market probably saw both inflationary and flight to quality buying interest. It is also possible that news of the Russia's suspension of military cooperation with NATO prompted an additional wave of geopolitical buying of gold.

 

Like the gold market, the silver market saw a series of patently bullish outside market forces that seemed to fan the buying interest during the trade Thursday. Certainly a sharp slide in the Dollar prompted the initial wave of buying interest in a host of physical commodity markets and silver caught part of that tide. However, a sharp rise in copper prices probably added to the silver buying burst and certainly the sharp rise in energy prices rounded out the bullish environment.”- The Hightower Report, Futures Analysis and Forecasting

 

GATA Posts:

 

 

Bank borrowing from ECB is out of control

American Eagle gold coins sold out after spree

Wall Street Journal reports gold coin shortage, cites GATA

U.S. food prices seen rising most since 1990

Jason Hommel: Silver has run out -- now

Investors expecting wipeout for Fannie and Freddie

 

The Statistics:

As of close of business: 8/20/2008

Gold Warehouse Stocks:

8,334,036

+68,048

Silver Warehouse Stocks:

138,521,151

+460,119

 

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 Exchage (TSE) AND Hong Kong Stock Exchange (HKEx)

SPDR® Gold Shares

651.37

20,942,246

US$ 17,078m

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

Gold Bullion Securities

115.69

3,719,461

US$ 3,100m

Australian Stock Exchange (ASX)

Gold Bullion Securities

10.87

348,995

US$ 291m

Johannesburg Securities Exchange (JSE)

New Gold Debentures

29.17

937,958

US$ 765m

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

 

COMEX Gold Trust (IAU)

Profile as of 8/20/2008

 

Total Net Assets

$1,593,721,141

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 8/20/2008

 

Total Net Assets

$2,732,383,817

Ounces of Silver
in Trust

205,970,411.000

Shares Outstanding

208,300,000

Tonnes of Silver
in Trust

6,406.40

 Note: Change in Total Tonnes from yesterday’s data: 101.47

 

The Stocks:

 

South Africa’s mine safety report, Allied Nevada’s (ANV) assay results, Arian Silver’s (AGQ.V) upgraded resource estimate, and Sabina’s (SBB.V) additions to its management team were among the big stories in the gold and silver mining industry making headlines today.

 

WINNERS

1.  Crystallex

KRY +40% $1.19

2.  New Gold

NGD+14.12% $5.74

3.  Timberline

TLR +14.11% $2.45

 

LOSERS

1.  ITH

THM -5.52% $1.37

2.  Entree

EGI -3.30% $1.76

3.  US Energy

USEG-2.75% $3.18

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:

Canyon Copper Closes Private Placement - More
- August 21, 2008 | Item | E-mail


Sherwood Reports Further High Grade Copper-Gold Results From Areas 2 & 118 at Minto Mine - More
- August 21, 2008 | Item | E-mail


Nevoro Inc. Appoints Mel Klohn as Executive Vice President, Exploration - More
- August 21, 2008 | Item | E-mail


Apollo Gold Announces Completion of C$8,500,000 Private Placement - "Apollo Gold Corporation (“Apollo” or the “Company”) (AMEX: AGT - News)(TSX: APG - News) announced that it has completed today its private placement in Canada (the "Offering") of Flow-Through Shares for purposes of the Income Tax Act (Canada) (the "Flow-Through Shares") by selling 17,000,000 Flow-Through Shares at Cdn$0.50 per share for gross proceeds of Cdn$8,500,000." More
- August 21, 2008 | Item | E-mail


Klondex Completes CDN $1.75 Million Private Placement - More
- August 21, 2008 | Item | E-mail


Jasper Mining Corporation announces private placement to raise up to $1,200,000 with Anacort Capital Inc. - More
- August 21, 2008 | Item | E-mail


Yale Sells Its Interest in One Zacatecas Property and Options Out the Other Three - More
- August 21, 2008 | Item | E-mail


Armistice Resources Corp. bulk sampling update - More
- August 21, 2008 | Item | E-mail


Abcourt Mines Inc.: First Closing of a Non-Brokered Private Placement Without Flow-Through Shares - More
- August 21, 2008 | Item | E-mail


Appointment of Chairman & New Director to the Board of Directors - More
- August 21, 2008 | Item | E-mail


SIRIOS: Second Stage Option Initiated on Aquilon Gold Property By Partner Golden Tag - More
- August 21, 2008 | Item | E-mail


Afri-Can and Deep South Receive Approval From the Ministry of Mines and Energy of Namibia for the Option With Teck Cominco on the Haib Copper Project, Namibia - More
- August 21, 2008 | Item | E-mail


Temex commences drilling on Fishhook Joint Venture in the Noront-McFaulds Lake area - More
- August 21, 2008 | Item | E-mail


New Jersey Mining Company Encounters High Grade Tungsten Vein - More
- August 21, 2008 | Item | E-mail


Mantis to Undertake Diamond drilling at the Rottenstone Project this fall to locate extension of former high-grade deposit - More
- August 21, 2008 | Item | E-mail


Exploration Update - Advanced Field Work Underway at Ruhuhu - More
- August 21, 2008 | Item | E-mail


Unico, Inc. Announces the Progress of Underground Rehabilitation Work at the Deer Trail Mine - More
- August 21, 2008 | Item | E-mail


Constitution Mining Appoints Chief Financial Officer - More
- August 21, 2008 | Item | E-mail


Lithic Intersects 9.76 Metres of 11.15% Zinc and 14.94 Metres of 0.22% MoS2 at Crypto - More
- August 21, 2008 | Item | E-mail


Forsys' Valencia Uranium Project, Namibia Mining Licence Granted - More
- August 21, 2008 | Item | E-mail


Yukon-Nevada Gold Corp. Reports Second Quarter Results - More
- August 21, 2008 | Item | E-mail


U3O8 Corp. Cuts 25 Metres Grading 0.099% U3O8 (2.0 Lbs Per Short Ton) at Accori North C - More
- August 21, 2008 | Item | E-mail


Arianne Resources Provide Update on the Spin-Off of its Mexican Assets - More
- August 21, 2008 | Item | E-mail


Northland Purchases First Equipment for Tapuli Mining Project - More
- August 21, 2008 | Item | E-mail


JNR Provides Update on Athabasca Basin Drilling Programs - More
- August 21, 2008 | Item | E-mail


Golden Tag Completes Initial Option on Aquilon Gold Property, Commencing Exploration for Additional 20% Interest - More
- August 21, 2008 | Item | E-mail


East West Commences Drilling on "Fishhook" Joint Venture-Norton-McFaulds Lake Area - More
- August 21, 2008 | Item | E-mail


Stratabound Hits 5.3% Copper over 6.5 metres at Captain - More
- August 21, 2008 | Item | E-mail


Avion Resources Intersects 13.56 g/t Gold Over 22.5 Metres, 800 Metres Northeast of the Tabakoto Pit in Mali - More
- August 21, 2008 | Item | E-mail


Vantex Resources Ltd: 30 g/t Gold on Ortona - More
- August 21, 2008 | Item | E-mail


Southwestern Resources Corp.: New Liam Joint Venture Partner - More
- August 21, 2008 | Item | E-mail


Canadian Zinc Corporation: Press Release - More
- August 21, 2008 | Item | E-mail


Arian Silver Upgrades San Jose Resource Estimate - "Arian Silver Corporation ("Arian Silver" or the "Company"), (TSX VENTURE:AGQ - News; AIM:AGQ)(PLUS:AGQ)(FRANKFURT:I3A - News) the AIM and TSX-V listed silver exploration company with Mexican mineral properties, today announced the results from its updated Canadian National Instrument (NI) 43-101 mineral resource estimate for the San Jose Property, located in Zacatecas State, Mexico. The resource estimate has been prepared by independent consultants, A.C.A. Howe International Limited." More
- August 21, 2008 | Item | E-mail


Sabina Silver Adds to "Northern" Management Team - "Sabina Silver Corporation (CDNX:SBB.V - News) is pleased to announce the addition of two new members to its management team. Mr. John Wakeford, P.Geo and Ms. Elaine Bennett, C.G.A. will join Sabina in Vancouver, BC." More
- August 21, 2008 | Item | E-mail


Allied Nevada Drills 1,103.5 Feet of Gold and Silver Mineralization in North Brimstone at Hycroft - "Allied Nevada Gold Corp. ("Allied Nevada" or the "Company") (Toronto:ANV.TO - News)(ANV - News) is pleased to announce complete gold and silver assay results for thirty-three exploration holes and four condemnation holes drilled at the Company's Hycroft Heap Leach Mine ("Hycroft") located near Winnemucca, Nevada. Of the twenty-seven drill holes listed in the table below, twenty-one were drilled in the Fire and Brimstone Zones(1), two in the Silver Camel area, three in the Bay area and one hole was drilled north of the Brimstone pit in the north Foothills area." More
- August 21, 2008 | Item | E-mail


S.Africa says to release mine safety report soon - "South Africa has completed a nation-wide safety audit of mines in the world's largest producer of precious minerals, and a report on its findings will be released "soon", an official said on Thursday." More
- August 21, 2008 | Item | E-mail


 

- Chris Mullen, Gold Seeker Report

 

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© Gold Seeker 2008

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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 21 August, 2008 | |


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