-- Posted 26 November, 2008 | | Source: SilverSeek.com
Please Note: US Markets are closed tomorrow for Thanksgiving Day. Markets will be open on Friday for half of the day, but there will be no Gold Seeker Closing Report as I travel to San Francisco for the Hard Assets Investment Conference on Sunday and Monday. Please stop by our table and say hi!
| Close | Gain/Loss |
Gold | $809.70 | -$9.30 |
Silver | $10.18 | -$0.10 |
XAU | 100.74 | +6.12% |
HUI | 243.53 | +6.02% |
GDM | 721.41 | +5.64% |
JSE Gold | 1924.94 | +52.20 |
USD | 85.61 | +0.88 |
Euro | 128.92 | -1.68 |
Yen | 104.62 | -0.25 |
Oil | $54.44 | +$3.67 |
10-Year | 3.001% | -0.091 |
T-Bond | 128.046875 | +1.140625 |
Dow | 8726.61 | +2.91% |
Nasdaq | 1532.10 | +4.60% |
S&P | 887.68 | +3.53% |
The Metals:
Gold traded mostly slightly lower in Asia and London before it spiked higher at the New York open to see a $4.10 gain at $823.10 by about 9AM EST, but it then fell back off for most of the rest of trade and ended near its low of $808.20 with a loss of 1.1%. Silver rose to see an 18 cent gain at $10.46 in early New York trade before it also fell back off for most of the rest of trade and ended with a loss of 0.97%.
Euro gold remained at about €628, platinum lost $6.50 to $858.50, and copper gained a couple of cents to about $1.67.
Gold and silver equities fell nearly 2% at the open, but they then rallied back higher for the rest of trade and ended with about 6% gains.
The Economy:
Report | For | Reading | Expected | Previous |
Durable Orders | Oct | -6.2% | -2.5% | -0.2% |
Initial Claims | 11/22 | 529K | 537K | 543K |
Personal Income | Oct | 0.3% | 0.1% | 0.1% |
Personal Spending | Oct | -1.0% | -0.7% | -0.3% |
Chicago PMI | Nov | 33.8 | 38.5 | 37.8 |
Michigan Sentiment | Nov | 55.3 | 58.0 | 57.9 |
New Home Sales | Oct | 433K | 450K | 457K |
There are no other major economic reports scheduled this week.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil rose on hopes for rebounding demand as China cut interest rates, the European Union proposed a $260 billion stimulus package, and US equities ended nicely higher.
Treasuries rose on another round of horrible economic data while the U.S. dollar index and the Dow, Nasdaq, and S&P also rose in spite of that data on apparent hopes that the worst may be over and all will start getting better from here on out.
Among the big names making news in the market today were LandAmerica, Deere, U.S. Bank, Citigroup, Tiffany, AIG, and Bank of America.
The Commentary:
“Dear CIGAs,
There was a disconnect between the Comex gold price action and the action of the mining shares. Comex went one way – down – while the shares went the other way – up.
Rollovers are occurring in the Comex world as February is getting ready to take its place as the lead contract with December going into the Delivery process. Remember, if you want to secure gold in size and want to avoid the high premiums currently being charged on the one ounce bullion coins, buy the December and take delivery of the gold and then keep it out of the warehouses.
Comex gold was taken lower today in front of the holiday period particularly with the dollar showing some signs of strength as dollar longs are attempting to prevent the technical price chart of the USDX from turning ugly. You can tell that the funds are doing the buying in the USDX because it bounced EXACTLY at the 40 day moving average level, a favorite level for this particular group to play at. Still, the bearish divergence on the USDX chart is a warning to the bulls that unless they quickly can push that index back above the 87.20 level, reinforcements for their side are going to be hard to attract. Stay tuned on this one…
The commodity markets were generally a mixed affair today with the energies all higher, particularly natural gas, while the metals were mostly lower with the exception of copper. Grains too were mixed. Generally, reading too much into the price action near a holiday is pretty much a waste of time so I am going to avoid that today as too many traders look to even up and take some time off.
Technically gold has met resistance near the 100 day moving average level that it has so far not been able to best while dip buyers continue to make their presence felt near the $805 level, which is right in the middle of the former resistance zone. Below this level, stronger support comes in near the $790 level and then the $770 level. I suspect that we will see very good buying should gold drop down to $770.
I should also point out that once again open interest saw another sharp drop in yesterday’s session. We are now down to a piddly 276,567 contracts as both longs and shorts continue to move out. Generally speaking, trading conditions begin to thin out from this point forward as we go into December and the year winds down with a corresponding lack of liquidity which tends to greatly exaggerate price moves. I can already see the effect in the spread between the bids and offers.
The HUI and the XAU charts are looking much improved. The HUI has now seen the 10 day moving average make an upside bullish crossover of the 20 day with both of those moving averages now trending higher. Those are a sign that the trend has now turned up. The actual index itself is fighting at the 50 day moving average which is near the 235 level. A close above that will get some of the specs excited. Also, the index managed to close above horizontal resistance near 225 and is closing in on downsloping trendline resistance which comes in near 250. One more thing, the bullish divergence that had been showing up in the technical indicators has now been fully confirmed. All in all, a lot of bullish signs are lining up technically.
To our American readers, enjoy your Thanksgiving Day holiday with your family and loved ones. We all have much to be thankful to God for! To those of our readers who abide outside our country – we will make sure to have an extra helping of pumpkin pie just for you!” – Dan Norcini, JSMineset.com
“Dear CIGAs,
As you know, it was Chairman Volcker who predicated the Hunt loan on my presence to advise on liquidation of the Hunt metal position.
I know him to be a brilliant realist.
In 1979 he had a totally different situation and the full backing of the Administration.
This time his job is the absolute opposite of what it was in 1979–1980.
This time I know his advice will be friendly to gold and most certainly on the subject of FRGCR. This I know!
Gold was a major items used in the 30s for many reasons, one of which was an attempt to take the deflationary perspective out of the public mind.
1. His assignment is to fight DEFLATION.
2. Obama spoke profusely of differences of opinion in his economic communication today.
3. There is no chance Obama will listen to Volcker other than when it supports administration goals and policies
4. After 7.1 trillion dumped into the economy there is no chance anyone can avoid the consequences.
5. Don’t be a fool and worry.
6. Worry only if you are not protected and insured against what is to come.”- Jim Sinclair, JSMineset.com
“December Gold closed down 10 at 808.5. This was 1 up from the low and 11.5 off the high.
December Silver finished down 0.05 at 10.22, 0.235 off the high and 0.02 up from the low.
The gold market fell under pressure from a stronger US dollar today in quiet, pre-holiday activity. Disappointing US economic data this morning, namely a lower than expected Durable Goods number, reinforced tendencies towards risk aversion. This has meant increased interest in US Treasuries, which is supportive to the dollar. Reports this morning that China was lowering interest rates in a bid to bolster their economy sparked a move higher in crude, which appears to lend some support to gold until later in the session. Traders have noted that despite steep commodity sell-offs, gold has held up better than other physical assets during the credit crunch, highlighting its attraction as a safe haven.
Silver held up maybe a little better than gold today, as it traded both sides of unchanged, but overall the trade was choppy and quiet. Silver is probably less susceptible to currency fluctuations than gold at this point, and any modest improvements in the global economic outlook could support industrial demand. Modest gains in US stocks and China's interest rate reduction may have lent some support until the afternoon, at which time silver sold off to new lows on the day.”- The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
GATA's Austin Fitts finds sympathizers in Estonia
GoldSeek's Chris Waltzek interviews Jim Sinclair
Ted Butler: Beyond taxation without representation
The Statistics:
As of close of business: 11/25/2008
Gold Warehouse Stocks: | 8,518,192 | +409,314 |
Silver Warehouse Stocks: | 129,229,540 | +580,306 |
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 | 755.06 | 24,275,884 | US$ 19,913m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 117.02 | 3,762,277 | US$ 3,068m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 11.51 | 369,057 | US$ 302m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 26.94 | 866,124 | US$ 710m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU)
Profile as of 11/25/2008 | |
Total Net Assets | $1,720,788,317 | Ounces of Gold
in Trust | 2,103,138.949 |
Shares Outstanding | 21,350,000 | Tonnes of Gold
in Trust | 65.41 |
Note: No change in Total Tonnes from yesterday’s data.
Silver Trust (SLV)
Profile as of 11/25/2008 | |
Total Net Assets | $2,220,068,364 | Ounces of Silver
in Trust | 214,983,944.900 |
Shares Outstanding | 217,700,000 | Tonnes of Silver
in Trust | 6,686.75 |
Note: No change in Total Tonnes from yesterday’s data.
The Stocks:
US Gold’s drill results, Paramount’s (PZG) drill results, Exeter’s (XRA) drill results, Great Panther’s (GPR.TO) drill results, and Orko’s (OK.V) delayed resource estimate were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Ivanhoe | IVN +28.19% $2.41 |
2. Hecla | HL +17.44% $2.29 |
3. Silver Wheaton | SLW +16.60% $3.02 |
LOSERS
1. Jaguar | JAG-6.15% $2.44 |
2. Richmont | RIC -4.67% $1.43 |
3. Solitario | XPL -3.38% $2.00 |
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:
Hinterland Extends Expiry Date of Share Purchase Warrants - More
- November 26, 2008 | Item | E-mail
VMS Ventures Inc.: Drill Hole RD-08-71 Intersects 39.71 Metres of 4.04% Copper, at Reed Lake Discovery Zone, Snow Lake Manitoba - More
- November 26, 2008 | Item | E-mail
El Gallo Returns Good Results: 43.6 opt Silver & 0.45 opt Gold Over 55 ft Including 104.1 opt Silver & 1.0 opt Gold Over 20 ft - "US GOLD CORPORATION (Toronto:UXG.TO - News)(AMEX:UXG - News)(Frankfurt:US8.F - News) announces encouraging drill results from two projects within the Magistral District, Sinaloa, Mexico (Figure 1)." More
- November 26, 2008 | Item | E-mail
1.48% Nickel Over 21.9 Meters Enhances Langmuir Discovery Zone - More
- November 26, 2008 | Item | E-mail
Skyline Gold Announces Private Placement - More
- November 26, 2008 | Item | E-mail
Trelawney Terminates Earn-In Agreement for Mexico Property - More
- November 26, 2008 | Item | E-mail
UEX Announces Minimum $16.5 Million Budget for 2009 - More
- November 26, 2008 | Item | E-mail
Nilam Completes Due Diligence, Sets Closing Date - More
- November 26, 2008 | Item | E-mail
Loveland Project: Gold Discovery at Surface - More
- November 26, 2008 | Item | E-mail
Champion Reprices and Increases Financing Up to $1,200,000 - More
- November 26, 2008 | Item | E-mail
Puma Exploration: 108 g/t Ag, 7.0% Zn, and 7.4% Pb Over 3.4 Metres on the Shaft Lens at the Nicholas-Denys - More
- November 26, 2008 | Item | E-mail
Freewest Intersects 40.4% Cr2O3 Over 46.3 Metres at the Black Thor Chromite Occurrence on Its 100%-Owned McFaulds Property, Northern Ontario - More
- November 26, 2008 | Item | E-mail
BMO Capital starts coverage of 3 uranium mining cos - More
- November 26, 2008 | Item | E-mail
American Bonanza Gold Corp.: Copperstone Feasibility Advances - More
- November 26, 2008 | Item | E-mail
HudBay Recommends Shareholders Take no Action in Response to Jaguar Proposal - More
- November 26, 2008 | Item | E-mail
Azteca Gold Corp.: Property Update- Mexico and Idaho - More
- November 26, 2008 | Item | E-mail
Lakota Resources announces further excellent results from the diamond drilling at Tembo, Tanzania - More
- November 26, 2008 | Item | E-mail
Hard Creek Nickel Drills 184 Metres of 0.32% Ni in Horizontal Hole - More
- November 26, 2008 | Item | E-mail
Stingray Corporate Update; Strong Financial Condition Feasibility Study on Track at El Pilar Copper Project - More
- November 26, 2008 | Item | E-mail
Tamerlane exercises option and acquires 100% interest in Los Pinos - More
- November 26, 2008 | Item | E-mail
Great Panther Samples 95 Metres of 1,867g/t Silver, 1.00g/t Gold, 2.67% Lead, and 4.58% Zinc at the Topia Mine - "GREAT PANTHER RESOURCES LIMITED (Toronto:GPR.TO - News) is pleased to announce that new underground drilling and mine development at the Company's 100% owned Topia Mine in Durango, Mexico has successfully extended the potential for high grade silver, gold, lead and zinc mineralization along a 350 metre strike length and 150 metre dip extent of the Cantarranas Vein." More
- November 26, 2008 | Item | E-mail
Paramount Gold and Silver Corp. Reports Drilling Results From its San Miguel Project - "Paramount Gold and Silver Corp. (Toronto:PZG.TO - News) (NYSE.A: PZG) (FRANKFURT:P6G, WKN: A0HGKQ) has received the assays from recently completed drill holes in the northern portion of its San Antonio resource area. These holes were drilled to test the northern extensions of the San Antonio vein system and to follow up an interesting gold intercept." More
- November 26, 2008 | Item | E-mail
S.Africa mining firms say new safety law punitive - "New mine safety laws passed last week to enforce stricter penalties on South African mining companies are punitive, unconstitutional and will lead to brain drain as managers flee, according to their umbrella group.
The amendments to the mine safety law would see chief executives of mining companies being held criminally liable for deaths and heavy fines for mine deaths in South Africa, the world's No 1 platinum producer and second gold producer." More
- November 26, 2008 | Item | E-mail
SLAM releases Costigan assay results - More
- November 26, 2008 | Item | E-mail
Pacific North West Capital & SOQUEM Announce Completion of Drilling at the Cheneville Property - More
- November 26, 2008 | Item | E-mail
Logan Resources initial drilling results confirm historic results on Brynnor Iron project, Vancouver Island - More
- November 26, 2008 | Item | E-mail
Romios Gold's Drilling Continues to Cut Bonanza Grade Mineralization at Newmont Lake Project - More
- November 26, 2008 | Item | E-mail
Dia Bras Appoints Mr. J. Alberto Arias to the Board - More
- November 26, 2008 | Item | E-mail
Whetstone announces 7.9 grams gold/tonne over 2.4 metres from drilling at the Wampum gold prospect - More
- November 26, 2008 | Item | E-mail
Katanga Mining Limited: Luilu Plant Resumes Copper and Cobalt Metal Production - More
- November 26, 2008 | Item | E-mail
Clifton Star Resources, Inc.: Revisions, Reviews and Acquisitions - More
- November 26, 2008 | Item | E-mail
Thundermin and Cornerstone Intersect 2.7% Cu Over 46.6 m, Including 4.7% Cu Over 16.6 m on the Little Deer Copper Property, Newfoundland - More
- November 26, 2008 | Item | E-mail
King's Bay Gold Intersects Wide Zones of Uranium, Rare Earths, Rare Metals, Sulfur and Iron at the Phyllis Lake Project, Ignace, Ontario - More
- November 26, 2008 | Item | E-mail
Mainstream Minerals Intersects Wide Zones of Uranium, Rare Earths, Rare Metals, Sulfur and Iron at the Phyllis Lake Project, Ignace, Ontario - More
- November 26, 2008 | Item | E-mail
Lower Kazakhstan Court Rules Against Alhambra, Appeal In Progress - More
- November 26, 2008 | Item | E-mail
New Uranium Zone Discovered Near Double S Resource - More
- November 26, 2008 | Item | E-mail
Exeter Resource Corporation: Caspiche Drilling Extends Area of Excellent Grade Gold-Copper Mineralization - "Exeter Resource Corporation (CDNX:XRC.V - News)(NYSE-A: XRA)(Frankfurt:EXB.F - News) ("Exeter" or the "Company") reports excellent grades from drill hole CSD023, the first hole completed this season at its Caspiche gold-copper porphyry project in the Maricunga district, Chile." More
- November 26, 2008 | Item | E-mail
Orko Silver Delays Resource Estimate Until January 2009 - "Orko Silver Corp. (TSX VENTURE:OK - News) wishes to report that the Company will be delaying the issuance of its 6th NI 43-101 Resource Estimate, which was originally scheduled for November 2008. The Company has been advised by Mine Development Associates of Reno, Nevada (MDA) that additional metallurgical testing of the Martha Vein is necessary for completion of its resource related studies." More
- November 26, 2008 | Item | E-mail
- Chris Mullen, Gold Seeker Report
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-- Posted 26 November, 2008 | |
