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Gold Seeker Closing Report: Gold and Silver End Mixed While Stocks Drop On Debt Selling Worries

By: Chris Mullen, Gold-Seeker.com


-- Posted 10 June, 2009 | | Source: SilverSeek.com

 

Close

Gain/Loss

Gold

$953.20

-$0.25

Silver

$15.15

+$0.02

XAU

150.10

-0.68%

HUI

362.28

-0.78%

GDM

1125.51

-0.68%

JSE Gold

2518.95

-32.67

USD

80.23

+0.41

Euro

139.85

-0.81

Yen

101.81

-0.89

Oil

$71.33

+$1.32

10-Year

3.936%

+0.068

T-Bond

114.125

-0.953125

Dow

8739.02

-0.27%

Nasdaq

1853.08

-0.38%

S&P

939.15

-0.35%

 
 

 

The Metals:

 

Gold gained $11.85 to as high as $965.30 in London before it fell in early New York trade to see a loss of $ $6.25 at $947.20 by a little after 11AM EST, but it then rallied back higher in the last couple of hours of trade and ended with a loss of just 0.026%.  Silver climbed to as high as $15.485 in London before it dropped to as low as $15.03 in late morning New York trade, but it also rallied back higher into the close and was able to end with a gain of 0.13%.

 

Euro gold climbed to about €682, platinum gained $16.50 to $1265.50, and copper remained at about $2.36.

 

Gold and silver equities rose over 1% at the open, but they then fell back off for most of the rest of trade and ended with almost 1% losses on the day.

 

The Economy:

 

Report

For

Reading

Expected

Previous

Trade Balance

Apr

-$29.2B

-$29.0B

-$28.5B

Treasury Budget

May

-$189.7B

-$181.0B

-$165.9B

 

The fed's Beige Book showed that “U.S. economic conditions were weak or got worse through May, but some areas of the country saw signs the contraction was moderating.”

 

“The U.S. budget deficit, already approaching $1 trillion so far this fiscal year, widened in May from a year earlier as the recession subtracted from revenue and the government spent more to rejuvenate the economy.

 

The excess of spending over revenue climbed to $189.7 billion, a record for the month and compared with a gap of $165.9 billion a year earlier, the Treasury said today in Washington. Spending rose 5.8 percent to $306.9 billion and revenue fell 5.7 percent to $117.2 billion. For the fiscal year to date, the shortfall totaled a record $991.9 billion.”

 

Fed Unveils Lending Details After Lawmaker Pressure  Bloomberg

Mortgage Applications Fall as Interest Rates Jump  Bloomberg

Unemployment at 10% to Depress Consumer Spending, Survey Shows  Bloomberg

Banks Fleeing TARP Face $5 Billion Warrant Repayment  Bloomberg

 

Tomorrow at 8:30AM EST brings Initial Jobless Claims for 6/06 expected at 625,000 and Retail Sales for May expected at 0.5%.  Excluding autos, sales are expected at 0.2%.  At 10AM is the Business Inventories report for April expected at -1.0%.

 

The Markets:

 

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

 

Oil rose to a new high for 2009 above $71 as inventories fell more than expected.  Crude inventories fell 4.4 million barrels, gasoline inventories fell 1.6 million barrels, and distillates dropped 300,000 barrels.

 

The U.S. dollar index fell in early trade as China expressed fears over the soaring US budget deficit and Russia pledged to cut its holdings of US treasuries, but the dollar then climbed back higher in late trade and ended with decent gains after it became evident that any move by Russia would be gradual and some time out into the future.  Worries over bonds and another round of deleveraging also seemed to encourage some cash raising.

 

Treasuries fell after today’s 10-year note auction required a higher than expected yield and exacerbated worries over the government’s ability to sell debt.  The yield on the 10-year even climbed above 4.00% at one point to make for the highest since last October.  Tomorrow’s 30-year note auction will be closely watched.

 

The Dow, Nasdaq, and S&P fell on oil’s continued rise and on concerns over the need for higher yields in order to draw in buyers for government debt.

 

Among the big names making news in the market today were Fiat and Chrysler, the TARP banks, and Home Depot.

 

The Commentary:

 

Dear Comrades In Golden Arms,

 

It is time for another reality check.

 

Those of you who are selling your gold and gold shares today are doing so because the dollar is in demand today based on the statement by the Russians. This shadows the previous statement by the Chinese concerning a preference for an IMF basket currency debt rather than US dollar debt.

 

That means the dollar is rising because the Russians and Chinese do not want dollars due to its depressing impact on Treasuries and the rise of rates there.

 

You are therefore agreeing that interest rates will attract the Russians and Chinese back into the dollar.

 

If you think this is anything more than the madness of the crowd and the gambleholics that inhabit the markets, you have lost your mind with the rest.

 

Today's statement by Russia is a dollar negative event without any question whatsoever. Once all the hedgies and algorithms get them long up to their eyeballs it will be followed by more culling of their ranks.

 

Stay the course and ignore the ignoramuses. Use reason as your guide, not raw emotions.

 

Survival takes courage.

 

Respectfully yours,”- Jim Sinclair, JSMineset.com

 

“August Gold closed unchanged at 954.7. This was 7.1 up from the low and 11.4 off the high.

 

July Silver finished up 0.085 at 15.225, 0.25 off the high and 0.2 up from the low.

 

The gold market started out under some weak pressure but a noted rebound in a host of physical commodity prices and a resumption of selling in the Dollar seemed to give the bulls a noted lift. Perhaps the strength in crude oil prices and the very impressive rally in copper prices gave the bull camp in gold an added incentive.

 

The silver market also managed an impressive recovery attempt after seeing some initial weakness early in the trading session. Like gold, silver was temporarily undermined by the news of a repayment of TARP funds, but given the magnitude of the gains in silver, copper and tin prices on Tuesday one almost got the sense that classic physical commodity forces were providing the silver bulls with their fresh incentive.”- The Hightower Report, Futures Analysis and Forecasting

 

GATA Posts:

 

 

Russia may swap Treasuries for IMF debt

Smart Money magazine notes falsification of U.S. economic data

Wired magazine examines E-Gold founder and his trouble with U.S. government

Ted Butler: Bad news, good news

 

The Statistics:

As of close of business: 6/10/2009

Gold Warehouse Stocks:

8,712,089

+11,376

Silver Warehouse Stocks:

120,488,169

-266,804

 

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

1,132.15

36,399,884

US$ 34,794m

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

Gold Bullion Securities

136.77

4,397,326

US$ 4,189m

Australian Stock Exchange (ASX)

Gold Bullion Securities

13.72

440,446

US$ 420m

Johannesburg Securities Exchange (JSE)

New Gold Debentures

35.19

1,131,290

US$ 1m

NASDAQ Dubai

Dubai Gold Securities

0.16

5,000

US$ 5m

Note: Change in Total Tonnes from yesterday’s data: The JSE added 0.61 tonnes.

 

COMEX Gold Trust (IAU)

Profile as of 6/9/2009

 

Total Net Assets

$2,142,301,552

Ounces of Gold
in Trust

2,245,823.814

Shares Outstanding

22,850,000

Tonnes of Gold
in Trust

69.85

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

 

Silver Trust (SLV)

Profile as of 6/9/2009

 

Total Net Assets

$4,130,167,759

Ounces of Silver
in Trust

276,670,924.100

Shares Outstanding

280,950,000

Tonnes of Silver
in Trust

8,605.43

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

 

The Miners:

 

Fronteer’s (FRG) subscription in East Asia Minerals (EAS.V), ITH’s (THM) drilling program, Great Basin’s (GBG) project funding progress, Seabridge’s (SA) updated economic pit limits, and Sabina’s (SBB.V) closed asset purchase were among the big stories in the gold and silver mining industry making headlines today.

 

WINNERS

1.  Rubicon

RBY 5.99% $2.83

2.  Ivanhoe

IVN +4.55% $6.43

3.  ITH

THM+4.09% $3.31

 

LOSERS

1.  Solitario

XPL -13.36% $1.88

2.  NovaGold

NG -6.80% $4.66

3.  Paramount

PZG -6.29% $1.49

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:

New Guinea Gold Corporation: Mt Penck Hole MPD042 Intersects 133m at 1.83g/t Gold from Surface - More
- June 10, 2009 | Item | E-mail


Denarii Resources Provides Corporate Update - More
- June 10, 2009 | Item | E-mail


Norsemont Mining Announces the Discovery of new Porphyry-related Cu-Au-Mo Mineralisation at Constancia Project in Peru - More
- June 10, 2009 | Item | E-mail


Golden Share Modifies Option Terms for Elwood Property in Ontario, Canada - More
- June 10, 2009 | Item | E-mail


Bayswater Intersects 9.5% Zinc & 3.3% Lead over 1.8 m in Drill Hole at Avoca, Ireland - More
- June 10, 2009 | Item | E-mail


Homeland Precious Metals Corp. Proceeds With Share Consolidation - More
- June 10, 2009 | Item | E-mail


Robex increases its interest in Wili-Wili permits and moves forward with prefeasibility study on Nampala - More
- June 10, 2009 | Item | E-mail


Etruscan provides update on Youga Gold Mine and activities - More
- June 10, 2009 | Item | E-mail


Network closes private placement - More
- June 10, 2009 | Item | E-mail


Acadian Mining Corporation announces shareholder approval of second tranche of $10 million private placement - More
- June 10, 2009 | Item | E-mail


Crowflight Declares Commerical Production at Bucko Mine - More
- June 10, 2009 | Item | E-mail


Glass Earth Gold-Options Into Rise & Shine Gold Prospect - More
- June 10, 2009 | Item | E-mail


China Shen Zhou Mining & Resources, Inc. Provides Production Update - More
- June 10, 2009 | Item | E-mail


Patriot Gold Initiates Drilling at Moss Mine Project, Arizona - More
- June 10, 2009 | Item | E-mail


Trilliant Exploration Welcomes New Ecuadorian Mining Minister - More
- June 10, 2009 | Item | E-mail


Dia Bras Obtains 85% Recovery of Silver From Cusi Rocks - More
- June 10, 2009 | Item | E-mail


UEX Stepout Drilling Expands Mineralization at Raven and Horseshoe - More
- June 10, 2009 | Item | E-mail


Advanced Explorations' Canadian Magnetite Project Indicates Potential US $2.76 Billion NPV in Preliminary Economic Assessment - More
- June 10, 2009 | Item | E-mail


Castle Gold Corp. Announces New Investor Relations Focus - More
- June 10, 2009 | Item | E-mail


Capital Gold Corporation Announces Third Fiscal Quarter Financial Results - More
- June 10, 2009 | Item | E-mail


Cadillac Retains Investor Relations Consultant - More
- June 10, 2009 | Item | E-mail


Uracan continues to expand Double S uranium mineralization - More
- June 10, 2009 | Item | E-mail


Marathon Completes Purchase of Bamoos Land Package - More
- June 10, 2009 | Item | E-mail


Alberta Star Development Corp. Files "Notice of Appearance and Request for Special Notice" in Idaho, USA - More
- June 10, 2009 | Item | E-mail


Virginia to Spend Over $8.5 Million in Exploration Work in 2009 - More
- June 10, 2009 | Item | E-mail


Shoshone Silver Announces Rescue Mine Plan of Operations Approved - More
- June 10, 2009 | Item | E-mail


CanAlaska Uranium Ltd. - Gold Project Financed by New Zealand Explorer - More
- June 10, 2009 | Item | E-mail


Directors Purchase Additional Shares of Northern Gold - More
- June 10, 2009 | Item | E-mail


Fronteer to Subscribe for Six Million Units of East Asia Minerals - "Subject to final due diligence and acceptance of the subscription by East Asia, Fronteer will purchase 6,000,000 units of East Asia at a price of $0.51 per unit. Each unit will be comprised of one common share in the capital of East Asia and one-half of one common share purchase warrant. Each whole warrant will entitle Fronteer to acquire one common share at an exercise price of $0.75 for a period of 2.5 years from the closing of the private placement." More
- June 10, 2009 | Item | E-mail


International Tower Hill Mines Livengood Gold Project, Alaska - "International Tower Hill Mines Ltd. ("ITH" or the "Company") (CDNX:ITH.V - News)(AMEX:THM - News)(Frankfurt:IW9.F - News) is pleased to announce the start of the summer drilling program and outline of its second half 2009 program at its Livengood Gold Project, near Fairbanks, Alaska (Figure 1)." More
- June 10, 2009 | Item | E-mail


Sabina Silver Announces Closing of Back River Transaction - "I am happy to report on the closing of what I believe is a great value creating transaction for Sabina shareholders," said Tony Walsh, President & CEO. "The Back River assets present significant exploration opportunities and we are excited to get working on the property. Currently, we are gearing up to start drilling on Goose Lake in mid-July and are finalizing plans for work on the Wishbone properties." More
- June 10, 2009 | Item | E-mail


Great Basin Gold Announces Progress on Burnstone Project Funding - "Great Basin Gold Ltd. ("Great Basin Gold" or the "Company") (TSX: GBG; NYSE Amex: GBG; JSE: GBG) today announced that it has granted a mandate to Investec Bank Limited ("Investec") for the arranging of project funding for the Company's Burnstone project in South Africa. The facility consists of a ZAR850 million (US$106 million) senior debt facility and a ZAR180 million (US$23 million) standby debt facility to cover potential cost overruns." More
- June 10, 2009 | Item | E-mail


Seabridge Gold Reports Updated Open Pit Scenarios for KSM Project - "Seabridge Gold (Toronto:SEA.TO - News)(SA - News) announced today that Moose Mountain Technical Services ("MMTS") has completed updated economic pit limits for the Mitchell, Sulphurets and Kerr zones at its 100% owned KSM project. The 2008 Preliminary Assessment will now be updated to incorporate the new pit scenarios along with revised capital and operating cost estimates." More
- June 10, 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 10 June, 2009 | |


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