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Gold Seeker Closing Report: Gold and Silver End Mixed While Stocks Fall About 3%

By: Chris Mullen, Gold-Seeker.com


-- Posted 13 May, 2009 | | Source: SilverSeek.com

 

Close

Gain/Loss

Gold

$925.25

+$1.80

Silver

$14.01

-$0.22

XAU

137.70

-2.86%

HUI

340.80

-3.97%

GDM

1041.23

-3.16%

JSE Gold

2643.76

+54.73

USD

82.62

+0.26

Euro

135.90

-0.57

Yen

104.89

+1.20

Oil

$58.02

-$0.83

10-Year

3.105%

-0.070

T-Bond

122.9375

+0.921875

Dow

8284.89

-2.18%

Nasdaq

1664.19

-3.01%

S&P

883.92

-2.69%

 
 

 

The Metals:

 

Gold rose about 0.5% to over $928 in Asia before it fell in London to see a loss of $6.26 at $917.19 by about 8:30AM EST, but it then rallied back higher for most of the rest of trade in New York and ended near its high of $930.50 with a gain of 0.19%.  Silver saw nearly 1% gains in Asia before it also fell back off in London and saw a loss of $0.345 at $13.885 around 9:30AM EST and next climbed back above $14.15 in late morning New York trade, but it then fell back off in the last couple of hours of trade and ended with a loss of 1.55%.

 

Euro gold climbed to about €681, platinum lost $9.50 to $1113, and copper fell over 5 cents to about $2.04.

 

Gold and silver equities saw slight gains for most of the morning, but they then fell back off in early afternoon trade and ended with about 3% losses on the day.

 

The Economy:

 

Report

For

Reading

Expected

Previous

Import Prices

Apr

1.6%

0.6%

0.2%

Import Prices ex-oil

Apr

-0.4%

-

-0.9%

Export Prices

Apr

0.5%

-

-0.7%

Export Prices ex-ag.

Apr

0.3%

-

-0.4%

Retail Sales

Apr

-0.4%

0.0%

-1.3%

Retail Sales ex-auto

Apr

-0.5%

0.2%

-1.2%

Business Inventories

Mar

-1.0%

-1.1%

-1.4%

 

RealtyTrac: April foreclosures rise 32%  Yahoo

 

Tomorrow at 8:30AM EST brings PPI for April expected at 0.1%, Core PPI expected at 0.1%, and Initial Jobless Claims for 5/09.

 

The Markets:

 

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

 

Oil erased early gains as demand worries overcame a bullish inventory report, the U.S. dollar index and treasuries rose on risk aversion, and the Dow, Nasdaq, and S&P fell as much as 3% after poor Retail Sales data renewed worries over the economy.

 

Among the big names making news in the market today were Liz Claiborne, Macy's, Frontier and Verizon, MGM Mirage, and Intel.

 

The Commentary:

 

Dear CIGAs,

 

Dismal Retail sales numbers derailed the equity bull’s party on Wall Street sending the markets reeling and bonds soaring as suddenly all the happy talk about an improving economy went out the window. That put a safe haven bid into the US Dollar which allowed it to bounce off its overnight lows. It also sent the Yen higher as risk aversion came back into vogue – at least for today. After all, if the much storied “American consumer” is not spending, then just exactly where is the economic recovery supposed to come from?

 

Crude oil which had come a dime shy of hitting $60, retreated as did a large number of other commodity markets, with copper doing an about-face and sinking well off its session high.

 

I think it is a given at this point in time that a rising equity market is going to lift commodities in general and pressure bonds. While some commodity markets will trade their own supply/demand factors, and can shrug off selling tied to a rising Dollar, the majority have been lifted due to index fund positioning in anticipation of a collapsing dollar and its inflationary implications. Therefore, whenever the Dollar shows any sign of strength, albeit how fleeting, these funds, along with their hedge fund counterparts, start selling commodities across the board.

 

Gold was holding very well early in the session as it made a charge all the way to near $930, the last level of resistance standing in its path, before the mining shares proceeded to fall out of bed and took the wind out of its sails. It looked as if Gold was getting ready to begin a bona fide trending move higher but once the HUI and the XAU began dropping alongside of the broader equity markets, in came the selling crowd at the Comex. It certainly did not help gold any to have silver next door dropping near 40 cents off its best print for the session.

 

It is not much of an analysis but the simple fact is that the Dollar is still the key mover and shaker when it comes to the entire commodity complex and that as risk aversion increases or decreases, its movements are going to influence fund buying and selling. If I knew exactly what the investment crowd was going to be thinking on any given day, I would know what to expect for the Dollar, but alas, we are all just mere mortals.

 

Gold is trading above all of its major moving averages so it is continuing to slowly grind higher but the sharp move lower in the mining shares is a concern.  What gold does not need is another blast of deflationary winds. Let’s see how things settle at the close of equity trading today and where the Dollar settles.- Dan Norcini, More at JSMineset.com

 

Dear CIGAs,

 

The stairs on the Golden Ladder that will be climbed are:

 

$900

$961

$1024

$1089

$1156

$1224

 

The steps on the USDX us dollar are:

 

.8200

.7200

.6200

.5200

 

The timing was April 19th and middle June to establish the launch period.” - Jim Sinclair, JSMineset.com

 

“June Gold closed up 2 at 925.9. This was 8.1 up from the low and 5.5 off the high.

 

July Silver finished down 0.195 at 14.02, 0.185 off the high and 0.14 up from the low.

 

For most of the trading session the June gold contract managed to trade in positive ground. In retrospect, the strength in gold was surprising considering the recent positive correlation with the equity market and the recent hope that a persistently weaker US Dollar was going to be a benefit to gold prices. With the Dollar making only a marginal recovery bid in the wake of the new low for the move overnight, it would not seem like the currency market action was a primary bull force for the gold trade. With Treasuries rising, the Dollar showing some bounce and the Yen back in favor, it did seem like some flight to quality players were back in play in the gold market.

 

As suggested in the mid day coverage, the silver market wasn't able to fend off the bearish developments as well as gold. Silver prices fell back as weak retail sales reading may have shook the confidence of the bull camp since part of the recent gains in silver seemed to be tied to the hope for an economic recovery to lift commodity demand. A sell off in copper may have caused some spill over selling in silver. But with July silver gaining over 19% from the May 1st low, it appears part of the price weakness can be attributed to simple profit taking.”- The Hightower Report, Futures Analysis and Forecasting

 

The Statistics:

As of close of business: 5/12/2009

Gold Warehouse Stocks:

8,494,330

-

Silver Warehouse Stocks:

118,098,680

+590,540

 

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

1,104.09

35,497,611

US$ 32,547m

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

Gold Bullion Securities

132.87

4,272,002

US$ 3,961m

Australian Stock Exchange (ASX)

Gold Bullion Securities

13.50

433,197

US$ 402m

Johannesburg Securities Exchange (JSE)

New Gold Debentures

29.70

954,872

US$ 875m

NASDAQ Dubai

Dubai Gold Securities

0.16

5,000

US$ 5m

 Note: Change in Total Tonnes from yesterday’s data: The JSE added0.37 tonnes.

 

COMEX Gold Trust (IAU)

Profile as of 5/12/2009

 

Total Net Assets

$2,029,027,853

Ounces of Gold
in Trust

2,197,389.159

Shares Outstanding

22,350,000

Tonnes of Gold
in Trust

68.35

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

 

Silver Trust (SLV)

Profile as of 5/12/2009

 

Total Net Assets

$3,781,178,102

Ounces of Silver
in Trust

268,400,195.900

Shares Outstanding

272,450,000

Tonnes of Silver
in Trust

8,348.18

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

 

The Miners:

 

A protest at the Yanacocha gold mine, First Quantum’s (FM.TO) financial results, International Royalty’s (ROY) first quarter results, Gammon Gold’s (GRS) first quarter results, Aurizon’s (AZK) first quarter results, Excellon’s (EXN.TO) filings comments, and Minefinders’ (MFN) first quarter results were among the big stories in the gold and silver mining industry making headlines today.

 

WINNERS

1.  Solitario

XPL +6.85% $1.39

2.  Agnico Eagle

AEM +1.98% $52.46

3.  Aurizon

AZK +1.43% $4.26

 

LOSERS

1.  Coeur

CDE -13.16% $1.32

2.  Ivanhoe

IVN -11.94% $6.05

3.  Golden Star

GSS -10.88% $1.72

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:

Tiomin Reports First Quarter Financial Results - More
- May 13, 2009 | Item | E-mail


Excellon Comments on Previous Filings - "Following a review of Excellon's (Toronto:EXN.TO - News) continuous disclosure in connection with its recently announced rights offering, pursuant to National Instrument 51-102 - Continuous Disclosure Obligations, Excellon has filed on SEDAR, as a material contract, the Silver Purchase Agreement dated September 4, 2007 with Auramet Trading Inc." More
- May 13, 2009 | Item | E-mail


Sirios Resources Inc.: Announcement of a $1.5M Private Placement - More
- May 13, 2009 | Item | E-mail


Gitennes to acquire 100% ownership of Peruvian gold project - More
- May 13, 2009 | Item | E-mail


Kinbauri Provides Clarification on Glen Eagle Investment - More
- May 13, 2009 | Item | E-mail


Mexivada discontinues mining test at Yaradu, Sierra Leone - More
- May 13, 2009 | Item | E-mail


Protesters block road to Peru Yanacocha gold mine - "Protesters in Peru, angry over the handling of a mercury spill, have blocked the road to one of Latin America's largest gold mines, Yanacocha, which is running low on crucial supplies, sector sources said on Wednesday.

Residents near the mine, run by U.S.-based Newmont Mining Corp (NEM.N) and Peruvian precious metals miner Buenaventura (BUEv.LM) (BVN.N), are asking for greater compensation related to a toxic spill that occurred in 2000." More
- May 13, 2009 | Item | E-mail


SEMAFO Strengthens BOD with Appointment of 2 New Directors - More
- May 13, 2009 | Item | E-mail


Network to initiate underground drifting program into gold target - More
- May 13, 2009 | Item | E-mail


Midlands Minerals Announces 16% Stake Acquirement by Avion Resources - More
- May 13, 2009 | Item | E-mail


China Shen Zhou Mining & Resources, Inc. Announces First Quarter 2009 Financial Results - More
- May 13, 2009 | Item | E-mail


White Pine Resources-Noront Resources-Golden Valley Mines Intersect Massive Sulphides in Their Ring of Fire Joint Venture - More
- May 13, 2009 | Item | E-mail


Avnel Gold Mining Limited (AVK: TSX) announces first quarter 2009 results - More
- May 13, 2009 | Item | E-mail


Metallic Ventures Gold Inc. announces new Board of Directors - More
- May 13, 2009 | Item | E-mail


Midland Acquires Property With Strong Au-Cu Potential in the Abitibi Region, Quebec - More
- May 13, 2009 | Item | E-mail


Glen Eagle Resources Signs Definitive Agreement With Kinbauri Gold Corp. - More
- May 13, 2009 | Item | E-mail


Yellowjacket Gold Project Commences Operations, Atlin, BC - More
- May 13, 2009 | Item | E-mail


Aurora to Hold Public Information Meetings in Labrador on Tailings Management Options for the Proposed Michelin Project - More
- May 13, 2009 | Item | E-mail


Atna Makes First Gold Pour at Briggs Mine - More
- May 13, 2009 | Item | E-mail


Golden Share Drills Up to 56.86 g/t Au Over 4.00 m on Forsan Property - More
- May 13, 2009 | Item | E-mail


EurOmax announces $300,000 financing - More
- May 13, 2009 | Item | E-mail


Romarco appoints Arnold Chief Operating Officer - More
- May 13, 2009 | Item | E-mail


Fortune proposes amendments to shareholder rights plan - More
- May 13, 2009 | Item | E-mail


Amerigo Announces Q1-2009 Financial Results - More
- May 13, 2009 | Item | E-mail


Wesdome earns $0.08 per share in Q1 - More
- May 13, 2009 | Item | E-mail


Converge Global Inc. Completes Acquisition of Benson Lake Gold Property - More
- May 13, 2009 | Item | E-mail


AuEx Adds 96,000 Acres of Land in Northeastern Nevada - More
- May 13, 2009 | Item | E-mail


New Dawn's Turk Mine in Zimbabwe Exceeds Mine Development Output Expectations - More
- May 13, 2009 | Item | E-mail


Vault Minerals to raise $600,000 - More
- May 13, 2009 | Item | E-mail


African Copper Plc: Amended Agreement Between African Copper and Zambia Copper Investments - More
- May 13, 2009 | Item | E-mail


First Quantum Minerals Reports Operational and Financial Results for the Three Months Ended March 31, 2009 - "18% increase in overall copper production with higher output at all operations - Frontier 43%; Guelb Moghrein 22%; Kansanshi 16%. 205% increase in gold production due to the commissioning of the gold plants at Guelb Moghrein and Kansanshi. 23% reduction in the average cash unit cost of production (C1) compared to Q4 2008 due to cost saving initiatives, lower process input costs and higher gold credit. Net profit of $10.9 million despite significantly lower copper price and hedging losses of $32.5 million after tax." More
- May 13, 2009 | Item | E-mail


Minefinders Provides 2009 First Quarter Results and Details of Conference Call - "The Company recorded a net loss for the first quarter of 2009 of $6.151 million, up from a net loss of $5.621 million for the first quarter of 2008. The increased loss for the first quarter of 2009 is primarily due to interest expense of $1.547 for the quarter, up from $0.927 million in the first quarter of 2008. The increase in interest expense is due to a higher average balance outstanding on the revolving credit facility in the first quarter of 2009 as compared to the first quarter of 2008." More
- May 13, 2009 | Item | E-mail


International Royalty Corporation reports 2009 first quarter results - "Royalty revenues for the three months ended March 31, 2009 were $7,099,000, as compared to $10,283,000 for the three months ended March 31, 2008. The decrease is due to a decline in revenue from the Voisey's Bay mine of $3.7 million offset by royalty revenue from the newly acquired Skyline thermal coal mine of $325,000 and the newly commissioned Gwalia Deeps gold mine of $314,000." More
- May 13, 2009 | Item | E-mail


Gammon Gold Reports First Quarter Financial Results - Sixth Consecutive Quarter of Positive Cash Flow from Operations, and Announces New Discoveries - "As targeted, quarterly production was in line with the Q3, 2008 period despite the scheduled downtime of milling operations that was required to accelerate the commissioning of the Phase II mill expansion at Ocampo. I am particularly pleased to see that since April 8, the mill has been consistently processing over 3,100 tonnes per day, which is above design specification levels for this phase of the mill expansion program" More
- May 13, 2009 | Item | E-mail


Aurizon reports highlights of first quarter 2009 results - "Earnings of $5.0 million, or $0.03 per share, were achieved in the first quarter of 2009, compared to a loss of $3.8 million, or ($0.03) per share, in the same period of 2008. Operating results were impacted by non-cash derivative losses of $0.7 million and foreign exchange losses of $1.3 million, on an after tax basis. After adjusting for these items, earnings for the quarter were $7.1 million, or $0.05 per share, compared to adjusted earnings in the first quarter of 2008 of $3.3 million or $0.02 per share." More
- May 13, 2009 | Item | E-mail


 

- Chris Mullen, Gold Seeker Report

 

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© Gold Seeker 2009

Note: This article may be reproduced provided the article, in full, is used and mention to Gold-Seeker.com is given.

 

 

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 13 May, 2009 | |


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