-- Posted 3 December, 2008 | | Source: SilverSeek.com
| Close | Gain/Loss |
Gold | $769.55 | -$13.35 |
Silver | $9.58 | +$0.05 |
XAU | 90.47 | -4.68% |
HUI | 218.08 | -3.40% |
GDM | 661.79 | -2.81% |
JSE Gold | 1936.67 | -27.18 |
USD | 86.89 | +0.24 |
Euro | 127.06 | -0.11 |
Yen | 107.11 | -0.28 |
Oil | $46.79 | -$0.17 |
10-Year | 2.676% | -0.017 |
T-Bond | 132.96875 | +0.765625 |
Dow | 8591.69 | +2.05% |
Nasdaq | 1492.38 | +2.94% |
S&P | 870.74 | +2.58% |
The Metals:
Gold traded mostly slightly lower in Asia and London and fell as much as $19.20 to $763.70 by about 10AM EST before it rallied back near unchanged by late morning in New York, but it then fell back off into the close and ended with a loss of 1.7%. Silver fell $0.254 to $9.276 by about 8:30AM EST before it rose to see a 19 cent gain at $9.72 by late morning, but it also fell back off into the close and ended with a gain of just 0.52%.
Euro gold fell to about €608, platinum lost $6 to $796, and copper fell nearly 5 cents to about $1.53.
Gold and silver equities fell about 6% by about an hour into trade before they rallied back near unchanged by late morning, but they then fell back off into the close and ended with roughly 3% losses.
The Economy:
Report | For | Reading | Expected | Previous |
ADP Employment | Nov | -250K | -205K | -179K |
Productivity | Q3 | 1.3% | 0.9% | 1.1% |
ISM Services | Nov | 37.3 | 42.0 | 44.4 |
“Economic activity has weakened across the United States since early October, while price pressures have eased with declines in retail and energy prices, the Federal Reserve said on Wednesday.
The Fed's Beige Book summary portrayed declining conditions in most areas of the economy.”
Big rate drop sends mortgage applications soaring MarketWatch
Tomorrow at 8:30AM EST brings Initial Jobless Claims for 11/29 expected at 540,000 and at 10AM is the Factory Orders report for October expected at -4.5%.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil ended near a new four year low despite an unexpected decline in U.S. crude inventories as traders continue to worry about tepid demand.
The U.S. dollar index rose as other world currencies fell on the view that other world central banks will be cutting rates more than the fed.
Treasuries rose on the mostly dismal economic data as private employers cut more jobs than expected in November and ISM Services dropped to a record low.
The Dow, Nasdaq, and S&P fell markedly at the open on pretty horrible ADP Employment and ISM Services data, but all three indices rallied to find decent gains by the close after the Mortgage Bankers Association reported a huge jump in mortgage applications thanks to the large drop in rates driven by government programs recently.
Among the big names making news in the market today were GM, Ford, Chrysler, UAW, Fortress, RIM, Merrill Lynch, Freeport-McMoRan, and EDF and Constellation.
The Commentary:
“Dear CIGAs,
I am a bit pressed for time today as the price action in the various commodity futures that I trade is keeping me on my toes. Some of the commodity markets are following the US equity markets higher today while some of them are not, notably gold and most of the metals. Gold in particularly is not trading “right” today. By that I mean the correlation between it and the US equity markets has been pretty close recently. When the equities are moving higher, gold has been moving higher in what I am calling the reflation trade. The opposite also has been holding true. Today, the equity markets were initially higher and yet gold still got whacked again.
Generally, we have been seeing the Dollar and the US equity markets going in opposite directions as well. Today that changed with the Dollar moving slightly higher while the equities were also moving higher. That brought in selling into gold after the market had recovered most of its overnight losses. About 30 minutes before the close of pit session trading in New York, gold was hit once again. So too were the mining shares. The war against gold obviously continues. Interestingly enough, the equities faded off their highs just about the time gold was getting ready to close in the pit.
The volume in the gold is getting quite anemic. It looks more like a holiday trade than a normal business day trade. Spreads between bids and offers at times are as much as 7-8 points at times even in the most active month. The contraction in open interest is taking its toll on liquidity. Yesterday saw another drop of over 1900 contracts bringing the total to an almost laughable 264,796. I say laughable because who would have envisioned that during a time of such incredible financial duress, the interest in gold would be collapsing. That just goes to show the extent of the de-leveraging trade. Again, we are talking about the phony paper gold market and not the real deal.
Technically gold is treading water holding just above support near the $760 level basis February. Failure there and it will retest $740. Upside resistance is first at $780 - $785 and then at $800.”- Dan Norcini, more at JSMineset.com
“December Gold closed down 12.5 at 768.8. This was equal to the low and equal to the high.
December Silver finished down 0.026 at 9.564, equal to the high and equal to the low.
The gold market started out soft and mounted a recovery bounce ahead of mid session, but it then seemed to sag despite the fact that equity prices mostly maintained a positive track throughout most of the trading session. Perhaps seeing the Dollar hold in positive ground for most of the session and seeing the flow of weak US economic data undermined the gold market. It is also possible that definitively bearish price dialogue toward oil prices from the OPEC President indirectly undermined gold prices as the OPEC President actually suggest that there was no floor under oil prices and that prices could fall to very, very low levels!
After forging a rather impressive mid morning bounce the silver market seemed to top out in the early after action perhaps because of the back and forth action in the stock market and perhaps because of the sloppy action in the gold market. Clearly the macro economic outlook deteriorated in the face of the US reports that were released during the session but it is also possible that silver prices were partially undermined as a result of the overtly bearish comments about oil prices from the OPEC President.”- The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Ted Butler: COT extremes
Thom Calandra: Razor's edge ahead for gold futures traders
The Statistics:
As of close of business: 12/02/2008
Gold Warehouse Stocks: | 8,510,346 | -200 |
Silver Warehouse Stocks: | 129,003,584 | +469,792 |
Global Gold ETF Holdings
[WGC Sponsored ETF’s]
| Product name | Total Tonnes | Total Ounces | Total Value |
New York Stock Exchange Arca (NYSE Arca) AND Singapore Exchange (SGX) AND Tokyo Stock Exchage (TSE) AND Hong Kong Stock Exchange (HKEx) | SPDR® Gold Shares | 758.12 | 24,374,299 | US$ 18,670m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 117.01 | 3,761,983 | US$ 2,915m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 11.51 | 369,028 | US$ 287m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 26.94 | 866,057 | US$ 675m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU)
Profile as of 12/2/2008 | |
Total Net Assets | $1,619,545,370 | Ounces of Gold
in Trust | 2,072,932.322 |
Shares Outstanding | 21,050,000 | Tonnes of Gold
in Trust | 64.48 |
Note: Change in Total Tonnes from yesterday’s data:0.93 tonnes were removed from the trust.
Silver Trust (SLV)
Profile as of 12/2/2008 | |
Total Net Assets | $2,022,117,242 | Ounces of Silver
in Trust | 214,896,514.500 |
Shares Outstanding | 217,700,000 | Tonnes of Silver
in Trust | 6,684.03 |
Note: Change in Total Tonnes from yesterday’s data: 2.72 tonnes were removed from the trust.
The Stocks:
Richmont’s (RIC) normal course issuer bid, Freeport-McMoRan’s (FCX) revised operating plans, suspended dividend, and production cut, IAMGOLD’s (IAG) offer for Euro Ressources, and Silver Standard’s (SSRI) drill results were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Silver Wheaton | SLW +12.78% $3.53 |
2. International Royalty | ROY +9.26% $1.18 |
3. Richmont | RIC +7.14% $1.20 |
LOSERS
1. Freeport | FCX-17.28% $18.05 |
2. Newmont | NEM -8.77% $29.34 |
3. Exeter | XRA -8.63% $1.27 |
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:
Avalon Files Audited Financial Statements, MDA and Announces Annual General Meeting - More
- December 03, 2008 | Item | E-mail
Frontera Copper Responds to Unsolicited Offer From Invecture Group - More
- December 03, 2008 | Item | E-mail
Freeport-McMoRan stock down on capex cut, dividend - "Shares of Freeport-McMoRan Copper & Gold Inc (FCX.N: Quote, Profile, Research, Stock Buzz) plummeted more than 18 percent on Wednesday after the mining giant suspended its dividend, slashed capital expenditure by more than half and lowered copper output because of the recent slump in metal prices.
The announcement came just four months after the company had raised its annual dividend while riding a wave of record prices for copper and other metals, and 21 months since taking over Phelps-Dodge -- a bigger mining rival it acquired in a bold $25.9 billion deal." More
- December 03, 2008 | Item | E-mail
Roxmark completes $350,000 flow-through financing - More
- December 03, 2008 | Item | E-mail
Uruguay Mineral Exploration: Stock Options Granted - More
- December 03, 2008 | Item | E-mail
Phoenix Matachewan Mines Inc.: Consolidation and Name Change Approved - More
- December 03, 2008 | Item | E-mail
Duran Ventures Aguila Hole 13 Intersects 458.1 Metres of 1.024% Copper Equivalent(i) Including First 146.25 Metres of 0.931% Cu and 0.043% Mo - More
- December 03, 2008 | Item | E-mail
Purepoint Uranium Group Inc.: Provides 2008 Update - More
- December 03, 2008 | Item | E-mail
Maya Secures "La Campana" Mining Lots in Mexico - More
- December 03, 2008 | Item | E-mail
Additional Silver-Rich Intersections Expand Trevali's Magistral Central Sulphide Body on the Santander Silver-Lead-Zinc Mine Project in Peru - More
- December 03, 2008 | Item | E-mail
Typhoon Exploration Shows Monexco a Gold-Bearing Potentiel - More
- December 03, 2008 | Item | E-mail
Source Exploration Corp. Consolidates Its Interest in the San Acacio Silver Project, Zacatecas, Mexico - More
- December 03, 2008 | Item | E-mail
Inter-Citic Releases New Drill Hole Results From Dachang Gold Project - More
- December 03, 2008 | Item | E-mail
Golden Share Intersects Grades of Up to 123.50 g/t Au in Malartic Lakeshore Drilling Program - More
- December 03, 2008 | Item | E-mail
Ventura Extends Gold-Silver Vein at Inmaculada Project, Peru, to Over 900m Strike Length, Reporting Drill Intercept of 8m at 9 g/t Gold and 132 g/t Silver - More
- December 03, 2008 | Item | E-mail
Osisko Intersects 102 Metres Averaging 3.21 g/t Au at South Barnat - More
- December 03, 2008 | Item | E-mail
Letter of intent signed to joint venture Turkish properties - More
- December 03, 2008 | Item | E-mail
Offer for Euro Ressources Successful - IAMGOLD Owns 71.6% of Euro Ressources; Offer is Re-opened From December 4 to 17, 2008 - "IAMGOLD Corporation ("IAMGOLD") announced today that the final results for its public offer for Euro Ressources S.A. have been published by the French Autorité des marchés financiers ("AMF") on December 2, 2008. As a result of the offer, IAMGOLD controls 43,397,457 shares representing 71.6% of the current share capital of EURO." More
- December 03, 2008 | Item | E-mail
Richmont Mines Inc.: Announcement - "Richmont Mines Inc. (the "Company") (Toronto:RIC.TO - News)(NYSE-A: RIC), announces today that the Toronto Stock Exchange (the "TSX") has accepted the Company's notice of intention to make a normal course issuer bid (the "Notice") to purchase some of its outstanding common shares through the facilities of the TSX for a period of twelve months ending on December 4, 2009." More
- December 03, 2008 | Item | E-mail
Silver Standard Reports Final Drill Results From Snowfield - "Silver Standard Resources Inc. (Toronto:SSO.TO - News)(NasdaqGM:SSRI - News) has received the results from the last 11 diamond drill holes at its wholly-owned Snowfield gold-copper project. As previously reported, the program was successful in outlining the Snowfield North Zone, a significant new zone of gold-copper mineralization." More
- December 03, 2008 | Item | E-mail
- Chris Mullen, Gold Seeker Report
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-- Posted 3 December, 2008 | |
