-- Posted 2 October, 2009 | | Source: SilverSeek.com
| Close | Gain/Loss | On Week |
Gold | $1003.20 | +$4.15 | +1.30% |
Silver | $16.18 | -$0.22 | +0.87% |
XAU | 157.16 | -0.41% | -0.85% |
HUI | 394.74 | -0.70% | -0.74% |
GDM | 1180.27 | -0.36% | -0.52% |
JSE Gold | 2453.39 | -55.62 | +3.06% |
USD | 77.08 | -0.16 | +0.40% |
Euro | 145.79 | +0.42 | -0.63% |
Yen | 111.45 | -0.17 | +0.06% |
Oil | $69.95 | -$0.87 | +5.66% |
10-Year | 3.221% | +0.027 | -3.24% |
Bond | 122.28125 | -0.375 | +1.08% |
Dow | 9487.67 | -0.23% | -1.84% |
Nasdaq | 2048.11 | -0.46% | -2.05% |
S&P | 1025.21 | -0.45% | -1.84% |
The Metals:
Gold traded near unchanged in Asia and London before it dropped over 1% to as low as $986.75 shortly after the jobs report was released, but it then quickly rebounded to see an almost 1% gain at $1007.35 in the next two hours of trade and remained near that high for the rest of the day to close with a gain of 0.42%. Silver dropped to as low as $15.905 before it also snapped back higher and climbed to see a slight gain at $16.445, but it then fell back of a bit in the last few hours of trade and ended with a loss of 1.34%.
Euro gold rose to about €687, platinum lost $4 to $1275.50, and copper fell over 5 cents to about $2.67.
Gold and silver equities fell over 1% at the open before they rose to see over 2% gains by midmorning, but they then fell back off into the close and ended with slight losses.
The Economy:
Report | For | Reading | Expected | Previous |
Nonfarm Payrolls | Sep | -263K | -175K | -201K |
Unemployment Rate | Sep | 9.8% | 9.8% | 9.7% |
Hourly Earnings | Sep | 0.1% | 0.2% | 0.4% |
Average Workweek | Sep | 33.0 | 33.1 | 33.1 |
Factory Orders | Aug | -0.8% | 0.0% | 1.4% |
The BLS Net Birth/Death adjustment added 34,000 payrolls to September’s data. The Unemployment rate rose to a new 26 year high.
All of this week’s other economic reports:
Next week’s economic highlights include ISM Services on Monday, Consumer Credit and the Treasury Budget on Wednesday, Initial Jobless Claims and Wholesale Inventories on Thursday, and the Trade Balance on Friday.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil fell after the worse than expected jobs report increased worries over energy demand.
The U.S. dollar index reversed an early pop higher and ended notably lower as traders eventually saw the poor jobs report as an indicator that the fed will likely not raise interest rates anytime soon.
Treasuries fell a bit after the Dow, Nasdaq, and S&P rebounded from early losses and ended just slightly lower as traders balanced poor economic data against the prospect of an extended period of extremely low interest rates.
Among the big names making news in the market Friday were Comcast and GE, Exxon, and CIT.
The Commentary:
“My Dear Friends,
It is very important that the new definition of what the US currency is now be fully understood.
The US dollar is now under the pressure of the Carry Trade as well as all other factors.
The cost of US dollar simplified is a means between the Libor rate and the shorter term US treasury rates. The size of available funds is quite enormous according to your financial status. As an example, what limit would there be for a Goldman Sachs or JP Morgan?
The operation increases the amount of dollars in transactional supply. Transactional funds are funds in the marketplace versus (as an example) funds being hoarded by US banks now.
The Carry Trade is initiated and then covered by borrowing and shorting the US dollar to guard against downside risk of the basic long.
Carry operations are generally not short term in their outlook.
By borrowing the currency of carry and shorting it the risk is contained by buying the higher yielding currency instrument. If that currency risk is covered, a classic transaction is made.
The Carry Trade is in many cases far from classic, and are used to fund higher risk transactions.
Either way it puts supply into the US dollar transactional market and defined, active and strong trade interest to hold down the value of the carry currency, now the US dollar.
The Carry Trade generally puts a multi-year and extremely bearish factor on the currency selected by the carry traders as the carry currency.
A waning of Green shoots and the growing transparency of MOPE as illusionary encourages the Carry Trade. This nullifies the propaganda that a lower equity market or slow business recover to no business recovery is good for the dollar as a flight to safety.
I am sorry to say, but a US depression would be Christmas for a dollar Carry Trader.
The US dollar controls the price of gold, so therefore the more pressure on the downside of the US dollar, the more upside pressure on gold.
Since the Carry Trade is usually far from classic and seeks to fund higher risk transactions than the classic form, the inviting conclusion is the Carry Trade will now be long gold.
The count of days will not be far off the mark, if off the mark at all.
One thing is for certain: The US dollar is very far from a SAFEHAVEN under its new definition as the Carry Currency of choice.
Gold is going to $1224, $1650 and then on to Alf’s numbers.
Respectfully yours,”- Jim Sinclair, JSMineset.com
GATA Posts:
How the Anglo-Saxon gold came to be buried
Geithner will see that 'independent' Fed keeps inflation down
Rob Kirby: The game has changed, the Achilles heel is exposed
Peter Grant: Gold is a bargain, even above $1,000
The Statistics:
Activity from: 10/01/2009
Gold Warehouse Stocks: | 9,297,331 | - |
Silver Warehouse Stocks: | 115,340,939 | -80,153 |
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 Exchange (TSE) AND Hong Kong Stock Exchange (HKEx) | SPDR® Gold Shares | 1095.327 | 35,215,868 | US$35,326m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 13,200,409.62 | 4,242,280 | US$4,249m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 14.37 | 460,504 | US$463m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 49.78 | 1,600,503 | US$1,608m |
NASDAQ Dubai | Dubai Gold Securities | 0.155 | 4,988 | US$5m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU)
Profile as of 10/1/2009 | |
Total Net Assets | $2,398,664,848 | Ounces of Gold
in Trust | 2,400,677.236 |
Shares Outstanding | 24,450,000 | Tonnes of Gold
in Trust | 74.67 |
Note: No change in Total Tonnes from yesterday’s data.
Silver Trust (SLV)
Profile as of 10/1/2009 | |
Total Net Assets | $4,572,878,269 | Ounces of Silver
in Trust | 276,424,218.300 |
Shares Outstanding | 281,050,000 | Tonnes of Silver
in Trust | 8,597.75 |
Note: No change in Total Tonnes from yesterday’s data.
The Miners:
Nevsun’s (NSU) analyst tour, Paramount’s (PZG) litigation, Newmont’s (NEM) gold price outlook, and Abcourt’s (ABI.V) amended warrant terms were among the big stories in the gold and silver mining industry making headlines Friday.
WINNERS
1. Entree | EGI +8.78% $2.85 |
2. ITH | THM +6.31% $4.21 |
3. Ivanhoe | IVN+4.14% $12.59 |
LOSERS
1. Mines MGMT | MGN-4.58% $2.29 |
2. US Gold | UXG -3.27% $2.66 |
3. Paramount | PZG -2.74% $1.42 |
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:
Typhoon Closes a Private Placement - More
- October 02, 2009 | Item | E-mail
SAMEX Mining Corp.: Final Payment Completed to Acquire Providencia Mine Concessions-Inca Project, Chile - More
- October 02, 2009 | Item | E-mail
Gossan Engages T2W Market Liquidity - More
- October 02, 2009 | Item | E-mail
Laurentian Goldfields Ltd. Completes 2009 Field Season at Van Horne, ON - More
- October 02, 2009 | Item | E-mail
Lincoln Mining acquires El Chapito concession in Chihuahua, Mexico - More
- October 02, 2009 | Item | E-mail
Minera Andes Announces That Production Has Resumed at the San Jose Mine - More
- October 02, 2009 | Item | E-mail
Share Acquisition and Investment Agreement - More
- October 02, 2009 | Item | E-mail
TNR Gold Corp. Provides Update on Los Azules Copper Property - More
- October 02, 2009 | Item | E-mail
ESO Signs Option Agreement for Nevada Uranium Property - More
- October 02, 2009 | Item | E-mail
Gossan Engages T2W Market Liquidity - More
- October 02, 2009 | Item | E-mail
Forsys Prepares for Upgraded Resource/Reserve At Valencia - More
- October 02, 2009 | Item | E-mail
Nevsun Resources Ltd.: Eritrea Mine Analyst Tour - "Nevsun Resources Ltd. is pleased to report on the successful conclusion of an analyst tour to the Bisha Project from September 27-30. The visit was attended by a number of representatives from leading Canadian and UK institutions. The visit was well received by analysts, the Ministry of Energy and Mines and the Eritrean National Mining Corporation (Enamco). The property tour and country visit was a coordinated effort by Nevsun Resources, Sunridge Gold Corporation and Canadian Gold Hunter (formerly Sanu Resources). The visitors included representatives from Canaccord Capital, Geologic Resource Partners, Griffiths McBurney Partners, Kin Communications and Ocean Equities." More
- October 02, 2009 | Item | E-mail
Abcourt Mines Inc. Amends the Terms of the Warrants Issued in November 5, 2007 - "Extension up to November 30, 2009 of the expiry date and amendment to the exercise price at $0.20 instead of $0.50 for the 1,772,116 common share purchase warrants issued in connection with the private placement closed on November 5, 2007." More
- October 02, 2009 | Item | E-mail
Newstrike and Queenston Begin Drilling on the Commodore JV in Kirkland Lake, Ontario - More
- October 02, 2009 | Item | E-mail
Searchlight Minerals Corp. S-1 Registration Statement Declared Effective - More
- October 02, 2009 | Item | E-mail
AXMIN Inc.: Recent Trenching Results in Senegal Include 10 Metres at 4.41 g/t Au Within an Interval of 78 Metres at 0.89 g/t Au - More
- October 02, 2009 | Item | E-mail
Paramount Gold and Silver Corp. Commences Litigation Against Klondex Mines Ltd. - "Paramount Gold and Silver Corp. (TSX:PZG - News)(NYSE:PZG - News) (Frankfurt:P6G - News)(WKN: A0HGKQ) ("Paramount") has filed a statement of claim in the Supreme Court of British Columbia, Canada (the "Statement of Claim") naming Klondex Mines Ltd. ("Klondex") as the defendant in connection with the termination by Klondex of the binding Letter Agreement (the "Agreement") dated July 20, 2009 between Paramount and Klondex whereby Klondex had agreed to be acquired by Paramount on the basis of 1.45 shares of Paramount common stock for each common share of Klondex (the "Transaction")." More
- October 02, 2009 | Item | E-mail
Freewest Resources Canada Inc., Spider Resources Inc., and KWG Resources Inc. Commence Drilling on the Big Daddy Chromite Prospect - More
- October 02, 2009 | Item | E-mail
Minera Andes Provides Confirmation of Its 100% Earn-In on the Los Azules Copper Project - More
- October 02, 2009 | Item | E-mail
Pinnacle Mines Update: Advancing the Silver Coin Gold Project-Stewart District, British Columbia - More
- October 02, 2009 | Item | E-mail
Columbus Silver Corporation Raises $1.6 Million in Over-Subscribed Private Placement - More
- October 02, 2009 | Item | E-mail
Nova Uranium Receives $1,370,000 With Zero Dilution - More
- October 02, 2009 | Item | E-mail
Iberian Minerals Announces Bridge Financing - More
- October 02, 2009 | Item | E-mail
Mercator Minerals and Stingray Copper announce friendly business combination - More
- October 02, 2009 | Item | E-mail
TVI Pacific Announces Completion Of Seventh Shipment Of Copper Concentrates Produced At Canatuan - More
- October 02, 2009 | Item | E-mail
Anooraq presentation - More
- October 02, 2009 | Item | E-mail
Sunridge Gold Closes Private Placement and Definitive Exploration Agreement With New Partner Antofagasta Minerals S.A. - More
- October 02, 2009 | Item | E-mail
Newmont sees firmer gold, provided recovery holds - "The world's second-largest gold miner, Newmont Mining Corp (NEM.N), expects investment demand to support the price of bullion but says there is a small risk gold could sink to around $800 an ounce if economic recovery stalls." More
- October 02, 2009 | Item | E-mail
- Chris Mullen, Gold Seeker Report
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-- Posted 2 October, 2009 | |
