-- Posted 19 May, 2009 | | Source: SilverSeek.com
| Close | Gain/Loss |
Gold | $926.25 | +$5.45 |
Silver | $14.115 | +$0.335 |
XAU | 140.58 | +2.41% |
HUI | 349.85 | +2.76% |
GDM | 1063.17 | +2.76% |
JSE Gold | 2507.21 | -10.07 |
USD | 81.98 | -0.62 |
Euro | 136.33 | +0.71 |
Yen | 104.09 | +0.24 |
Oil | $59.65 | +$0.62 |
10-Year | 3.243% | +0.032 |
T-Bond | 121.6875 | -0.09375 |
Dow | 8474.85 | -0.34% |
Nasdaq | 1734.54 | +0.13% |
S&P | 908.13 | -0.17% |
The Metals:
Gold traded mostly slightly higher in Asia and London before it extended its gains in New York and ended near its high of $927.50 with a gain of 0.59%. Silver followed a similar pattern and ended near its high of $14.122 with a gain of 2.43%.
Euro gold fell to about €679 on euro strength, platinum gained $7 to $1135, and copper remained at about $2.97.
Gold and silver equities fell to see slight losses about a half hour into trade before they climbed to see over 4% gains by mid-afternoon, but they then fell back off a bit into the close and ended with about 2.5% gains on the day.
The Economy:
Report | For | Reading | Expected | Previous |
Building Permits | Apr | 494K | 530K | 511K |
Housing Starts | Apr | 458K | 520K | 525K |
Building Permits and Housing Starts fell over 50% from last years numbers and dropped to their lowest levels since records started being taken in 1959 and 1960. Tomorrow at 3PM EST brings FOMC minutes from their April 29th meeting.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil rose on refinery problems and hopes for signs of rebounding demand during the upcoming long holiday weekend that typically marks the start of driving season in the US.
The U.S. dollar index and treasuries fell as the Dow, Nasdaq, and S&P shrugged off dismal housing data and traded mixed and near unchanged on the day.
Among the big names making news in the market today were Saks, Medtronic, GM, and Home Depot.
Big banks apply to repay TARP: sources Reuters
Derivatives Market Declines for First Time on Record Bloomberg
The Commentary:
“Dear CIGAs,
Once again, risk was back in vogue as the Euro-Yen cross built on yesterday’s big upside day. With the equities continuing their bear market rally, the reflation trade was the game of the day as money poured back into the commodity complex for the second day in a row. Crude oil shot up to $60 at one point in the session while the grains, particularly soybeans, were all higher. None of this was lost on the Forex markets which ingloriously dumped Humpty Dumpty, aka the US Dollar, and bid up all of the major currencies against it. Even the Yen was higher against the Dollar today. The commodity currencies, the Canadian, Australian and New Zealand Dollars, were all beneficiaries of the money flows into the commodity sector.
The Dollar’s weekly chart is looking more and more like it has posted a major long term double top just above the 89 level. It is perched precariously on the 50 week moving average having found support at that level last week and thus far this week. Should this all important technical level give way, the Dollar will more than likely drop down towards the 100 week moving average near the 79.20 level. A close beneath that level would indeed confirm the double top on the weekly chart and would be quite ominous for the greenback moving forward. Such an event would catapult gold above the $1000 level. I have no doubt that the US monetary authorities are closely watching the price action of the Dollar, not to mention the US long bond which looks quite sickly.
Gold continues to meet with concerted selling near the $930 level (according to the latest Commitment of Traders report – that selling is coming from the bullion banks – no surprise here). This level has been tested once and held – should it be tested a second time and give way, the momentum to the upside will increase. Currently gold is seeing more of a grinding move higher rather than a strong uptrend. I am of the opinion that will change if $930 gives way on a closing basis.
The mining shares are displaying a stronger looking price chart than their yellow counterpart over at the Comex with the pattern more closely resembling that of a pause in a uptrend. The HUI needs to clear 360 on a settlement basis to kick the next leg higher while the XAU needs a convincing settlement above the 143 level to scuttle the potential double top near that region and send price charging higher.
The Continuous Commodity Index (CCI) looks like it took a brief pause in its three week uptrend but today is moving back up again. Were it not for the weight of the sagging natural gas market, chances are it would be just a few points below its recent peak. There is a bit of a conflict taking place in gold that involves this move higher in the commodity complex. The gold bears are harrumphing about a rising commodity complex signifying that the economy is slowly improving and therefore gold no longer needs to receive safe haven flows and is due for a fall. The problem with that argument is that their reason for the move higher in the entire commodity complex fails to take into account the link with the falling US Dollar. Money is flowing into commodities not to much due to the improving economy scenario (although I will cede that is part of the reason) but rather due to investor concerns over the long term health of the US Dollar and the inflationary repercussions of nearly unlimited creation of the same. Simply put, savvy investors can read the handwriting on the wall and know full well that the Greenback is heading for a sharp fall and are therefore attempting to secure their wealth from the ravages of the coming tidal wave of inflation. In such an environment, those making the argument that the price of gold will fall due to the lack of a need for a safe haven are seriously mistaken. Gold will shrug off any pressure tied to such thinking and will track higher along with the rest of the commodity complex as the Dollar drops below major support in the months ahead.
I wish for the sake of my children’s future I could say otherwise, but our monetary authorities and the plague of free-spending politicians have sealed the doom of the US Dollar. Its day of supremacy is slowly fading and with it goes our way of life. We are witnessing an historic transition occurring even if the vast majority is blithely unaware of it. The Dollar will go the way of Pound Sterling and all we can now do is to observe the tragic process knowing that it could have and should have been prevented if only we had true statesmen instead of short-sighted, self-serving politicians and bureaucrats. You sow the wind and you reap the whirlwind.”- Dan Norcini, More at JSMineset.com
“June Gold closed up 5 at 926.7. This was 6 up from the low and 1.5 off the high.
July Silver finished up 0.295 at 14.125, 0.015 off the high and 0.195 up from the low.
The gold market traded mostly higher this session with a much sharper than expected decline in housing starts appearing to have revived some flight to safety demand for the metal. While the housing data may have raised economic jitters in some traders, gold may have also been underpinned by some inflation type concerns given another strong up day in gasoline prices and another sharp break in the Dollar. With gold also watching the equity markets as a gauge of future economic strength, the stock market's ability to trade higher and shrug off the bearish housing data may have been another factor keeping gold prices well supported.
The silver market traded sharply higher with outside market activity providing spill over support. Initial strength in copper and the sharp decline in the Dollar likely gave the bull camp early leverage. But with both gold and equities trading firm, the silver market was easily able to discount today's bearish housing news. It also looked as if the sell off in the Dollar raised the appeal of physical commodities as an inflation hedge which benefited silver. But gains in silver appear partly to be chart based as the market pushed through several key levels.”- The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
GATA board member Douglas interviewed on gold, silver
U.S. Rep. Ron Paul: Audit the Fed and then end it
Brazil and China work together to replace dollar
Ted Butler: Silver surplus?
Gold seen backing yuan's internationalization
China's stockpiles seen as new sovereign wealth strategy
The Statistics:
As of close of business: 5/19/2009
Gold Warehouse Stocks: | 8,513,188 | +11,575 |
Silver Warehouse Stocks: | 119,527,422 | -158,162 |
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 | 1,105.62 | 35,546,729 | US$ 32,732m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 132.86 | 4,271,715 | US$ 3,967m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 13.50 | 433,169 | US$ 403m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 30.80 | 990,160 | US$ 911m |
NASDAQ Dubai | Dubai Gold Securities | 0.16 | 5,000 | US$ 5m |
Note: Change in Total Tonnes from yesterday’s data: The JSE added 1.1 tonnes.
COMEX Gold Trust (IAU)
Profile as of 5/18/2009 | |
Total Net Assets | $2,024,059,493 | 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 5/18/2009 | |
Total Net Assets | $3,700,349,880 | 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:
Claude’s (CGR) drill results, US Gold’s (UXG) closed public offering, Paramount’s (PZG) mining concession acquisitions, Great Basin’s (GBG) withdrawn appeal, Alexco’s (AXU) drill results, Fortuna’s (FVI.V) quarterly results, and Silvercorp’s (SVM) dividend were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Gammon Gold | GRS +12.14% $7.39 |
2. Alexco | AXU +11.85% $1.51 |
3. Fronteer | FRG +10.49% $3.37 |
LOSERS
1. Banro | BAA -4.08% $1.41 |
2. Solitario | XPL -2.87% $1.35 |
3. New Gold | NGD-2.86% $2.04 |
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:
Claude Resources Inc. Intercepts 14.98 Grams of Gold per Tonne Over 4.7 Meters True Width - "These intercepts being reported today continue to extend as well as better define the gold mineralization at Seabee Deep. The close proximity of the 2c Zone will positively impact the head grade delivered to our central milling facility at the Seabee Mining Camp for the remainder of 2009, as lateral development into this higher grade ore shoot has commenced." More
- May 19, 2009 | Item | E-mail
Canyon Copper Announces Effectiveness of 1-For-3 Reverse Stock Split and Change to Stock Symbol - More
- May 19, 2009 | Item | E-mail
Alexco Intersects 7.8 Meters of 49.4 Ounces per Ton Silver; Drilling of "99" Zone at Bellekeno Continues to Confirm High Grade Ag Mineralization - "Alexco Resource Corp. (Toronto:AXR.TO - News)(AMEX:AXU - News) ("Alexco" or the "Company") is pleased to announce additional results from its 2009 underground core drilling program at the Bellekeno Mine, Keno Hill Silver District, Yukon. Initial definition diamond drilling in the Bellekeno "99" Zone, one of three zones that comprise the Bellekeno resource, has confirmed high grade silver mineralization previously indicated from historical underground chip sampling." More
- May 19, 2009 | Item | E-mail
Evolving Gold Commences Rattlesnake Hills Phase 2 Drill Program - More
- May 19, 2009 | Item | E-mail
Avion Resources to Hold Conference Call to Update Shareholders Wednesday, May 20th, at 10:30 a.m. - More
- May 19, 2009 | Item | E-mail
Premier provides Hardrock update - Continued high-grade gold in the EP Zone target - More
- May 19, 2009 | Item | E-mail
Canadian Arrow Completes Final Tranche of Private Placement - More
- May 19, 2009 | Item | E-mail
COGITORE Resources Inc.: Thick High Grade Copper and Zinc Intercepts Conclude Scott Lake Winter Drilling Campaign - More
- May 19, 2009 | Item | E-mail
Termination of Mashitu Acquisition - More
- May 19, 2009 | Item | E-mail
Fortuna Reports Record Revenue of US$8.98 Million and a Production Cash Cost of US$0.10/oz of Silver in Q1 2009 - "The Fortuna team has delivered another quarter of continued achievement with record sales and record silver production. Silver now represents 49% of revenue at a cash cost per oz of $0.10 net of by-product credits. We remain on target to achieve our forecast production of 1.6 million pure silver ounces for 2009. Through continued increments in efficiency, throughput and head grades Fortuna now clearly ranks amongst the lowest cost silver producing companies." More
- May 19, 2009 | Item | E-mail
Afri-Can Marine Minerals: Progress on Diamond Sampling Vessel - More
- May 19, 2009 | Item | E-mail
Silvercorp Announces Declaration of Quarterly Dividend-CAD$0.02 - "Silvercorp declared a fourth quarter dividend of CAD$0.02 per share to be paid on July 21, 2009, to shareholders of record at the close of business on June 30, 2009. The declaration and amount of any future dividends will remain at the discretion of the Board of Directors and may be adjusted in the future based on fluctuations in metal prices and the Company's cash flows. The dividends are considered eligible dividends for Canadian tax purposes." More
- May 19, 2009 | Item | E-mail
Crosshair Receives Confirmation of No Further Share Issuance and Universal Files Statement of Defence and Counterclaim - More
- May 19, 2009 | Item | E-mail
Vena Discovers Significant Gold Dissemination Near Surface at Azulcocha Polymetallic Mine - More
- May 19, 2009 | Item | E-mail
Alexis Minerals Announces First Quarter 2009 Results - More
- May 19, 2009 | Item | E-mail
US Gold Announces the Closing of Its Public Offering of Common Stock - "US GOLD CORPORATION (Toronto:UXG.TO - News)(AMEX:UXG - News) (the "Company" or "US Gold"), a U.S. and Mexico focused gold and silver exploration company, announced today the closing of its previously announced public offering of common stock pursuant to the Company's shelf registration statement filed with the U.S. Securities and Exchange Commission (the "SEC") and a shelf prospectus filed with certain Canadian securities regulatory authorities. The Company sold 22.0 million shares of common stock at a price of US$2.00 per share." More
- May 19, 2009 | Item | E-mail
Amador Gold Corp. Identifies Significant Precious Metal and VMS Potential on Maskooch Lake Property - More
- May 19, 2009 | Item | E-mail
Klondike Gold Corp.-Purcell Basin, BC: Massive Sulphide Exploration Update - More
- May 19, 2009 | Item | E-mail
Request for Proxy returns for May 26, 2009 Special Meeting of Shareholders - More
- May 19, 2009 | Item | E-mail
Tiomin Reminds Shareholders to Vote Their Blue Proxy - More
- May 19, 2009 | Item | E-mail
Loncor initiates gold exploration program - More
- May 19, 2009 | Item | E-mail
Laramide Reports on La Jara Mesa Permitting: USDA Forest Service Commences Environmental Impact Statement and Public Comment Process - More
- May 19, 2009 | Item | E-mail
Avion's Measured and Indicated Mineral Resources Increases 169% at Tabakoto and Segala Gold Projects in Mali from 450,200 Ozs Gold to 1,211,300 Ozs Gold - More
- May 19, 2009 | Item | E-mail
Cigar Lake Uranium Deposit Orientation Survey - More
- May 19, 2009 | Item | E-mail
Cameco to Resume UF6 Production at Port Hope - More
- May 19, 2009 | Item | E-mail
Anatolia announces Copler sulfide drilling and development plan - More
- May 19, 2009 | Item | E-mail
USCorp Reports Exciting Drilling Results from Twin Peaks Property - More
- May 19, 2009 | Item | E-mail
Maestro Appoints Mr. Allan J. Marter to Board of Directors - More
- May 19, 2009 | Item | E-mail
Gold Production Resumes at LKA's Golden Wonder Mine - More
- May 19, 2009 | Item | E-mail
Cardero Resource Corp.: Nanjinzhao Requests Revisions to Pampa De Pongo Purchase Agreement - More
- May 19, 2009 | Item | E-mail
Rare Element announces $750,000 financing - More
- May 19, 2009 | Item | E-mail
TVI Pacific announces webcast details for Annual Meeting - More
- May 19, 2009 | Item | E-mail
Vena Resources Reports 2009 First Quarter Financial Results - More
- May 19, 2009 | Item | E-mail
Erdene Reports 2009 First Quarter Financial Results and Provides Project Updates - More
- May 19, 2009 | Item | E-mail
International Wayside Gold Mines Ltd.: May 25, 2009 Court Date Set for Order to Approve Proposed QR Mine & Mill Acquisition - More
- May 19, 2009 | Item | E-mail
Initial Estimate Shows Substantial Resources in Continental's Newtongmen Copper-Gold Deposit - More
- May 19, 2009 | Item | E-mail
Intrepid Mines Limited: Paulsens Drilling Returns 28 Metres @ 11.5 Grams per Tonne Gold Below Current Mine Workings - More
- May 19, 2009 | Item | E-mail
Capella Updates on Nevada Drill Program - More
- May 19, 2009 | Item | E-mail
Gold Canyon Updates Joint Exploration Agreement With the Japan Oil, Gas and Metals National Corporation - More
- May 19, 2009 | Item | E-mail
SearchGold Options Gueguere Property South of Poura Mine in Burkina Faso - More
- May 19, 2009 | Item | E-mail
Terrane Reports 36% Expansion of Berg Resource - More
- May 19, 2009 | Item | E-mail
Katanga Announces First Quarter Results - More
- May 19, 2009 | Item | E-mail
Virgin Metals Announces Closing of Private Placement - More
- May 19, 2009 | Item | E-mail
Asian Mineral Resources: Adjustment to Export Restrictions for Ban Phuc - More
- May 19, 2009 | Item | E-mail
High River Gold Provides Update on Operations and Financial Status - More
- May 19, 2009 | Item | E-mail
Malaga narrows its net loss by $245,000 during Q1 2009 - More
- May 19, 2009 | Item | E-mail
Dynacor reports net earnings of $0.8 M for Q1 2009 - More
- May 19, 2009 | Item | E-mail
Rusoro Receives Preliminary Assessment for Choco 10 - More
- May 19, 2009 | Item | E-mail
Andean Confirms New High-Grade Vein Discovery at Bajo Negro - More
- May 19, 2009 | Item | E-mail
El Capitan: Newly Acquired Assay Shows Gold and Silver Values - More
- May 19, 2009 | Item | E-mail
Carpathian Gold Announces Initial Gold Mineral Resource & Commencement of Phase II Drilling on the RDM Gold Project, Brazil - More
- May 19, 2009 | Item | E-mail
Energy Fuels and Magnum Uranium Corp. Finalize Arrangement Agreement; Magnum Shareholder Meeting Scheduled for June 22, 2009 - More
- May 19, 2009 | Item | E-mail
Boxxer reports assays on Boss phase I diamond drilling - More
- May 19, 2009 | Item | E-mail
Canadian Zinc Options Tuvatu Gold Project, Fiji - More
- May 19, 2009 | Item | E-mail
Paramount Gold and Silver Corp. Expands its San Miguel Project through Acquisition of Key Mining Concessions in its District Consolidation Strategy - "Paramount Gold and Silver Corp. ("Paramount") (PZG - News)(Toronto:PZG.TO - News)(Frankfurt:P6G.F - News)(WKN: A0HGKQ) has signed a letter of agreement with Mexoro Minerals Ltd (OTC BB:MXOM.OB - News)(Frankfurt:OYA1.F - News) to acquire all its legal and beneficial interest to 12 mining concessions adjacent to Paramount's San Miguel Project resource areas in Chihuahua, Mexico as seen in the map at the following link http://paramountgold.com/projects/images/temoris2.jpg." More
- May 19, 2009 | Item | E-mail
Great Basin Resource Watch Withdraws Appeal Against the Renewal of the Hollister Water Pollution Control Permit - "Great Basin Gold Ltd, ("Great Basin" or the "Company"), (TSX: GBG; NYSE Amex: GBG; JSE: GBG) announces that Great Basin Resource Watch ("GBRW") has withdrawn its appeal against the renewal of the Water Pollution Control Permit, effective November 28, 2008, that authorizes Rodeo Creek Gold Inc ("RCG"), a wholly owned subsidiary of Great Basin Gold, to produce and process, off site, up to 275,000 tons of ore per year. This Large Scale mining facility permit is granted for a period of 5 years and is renewable." More
- May 19, 2009 | Item | E-mail
- Chris Mullen, Gold Seeker Report
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-- Posted 19 May, 2009 | |
