-- Posted 7 December, 2009 | | Source: SilverSeek.com
| Close | Gain/Loss |
Gold | $1163.05 | -$5.75 |
Silver | $18.27 | -$0.18 |
XAU | 178.97 | -1.64% |
HUI | 461.19 | -2.06% |
GDM | 1367.56 | -1.95% |
JSE Gold | 2533.62 | -99.62 |
USD | 75.80 | UNCH |
Euro | 148.18 | -0.38 |
Yen | 111.73 | +1.27 |
Oil | $73.93 | -$1.54 |
10-Year | 3.448% | -0.035 |
T-Bond | 119.96875 | +0.28125 |
Dow | 10390.11 | +0.01% |
Nasdaq | 2189.61 | -0.22% |
S&P | 1103.25 | -0.25% |
The Metals:
Gold fell as much as $32.88 to $1135.92 by a little after 4AM EST in late Asian trade before it bounced back higher in London and New York and saw a nice pop higher in early afternoon trade to as high as $1164.60 in reaction to Bernanke’s remarks today (see below), but it still ended with a loss of 0.49%. Silver dropped to as low as $17.855 by late morning in New York before it also rallied back higher in the last couple of hours of trade and climbed to as high as $18.34 in the final minutes of today’s session, but it still ended with a loss of 0.98%.
Euro gold fell to about €781, platinum lost $2 to $1438, and copper fell a few cents to about $3.19.
Gold and silver equities fell over 3% at the open before they rebounded back to almost unchanged by early afternoon, but they then fell back off into the close and ended with about 2% losses.
The Economy:
Report | For | Reading | Expected | Previous |
Consumer Credit | Oct | -$3.5B | -$9.3B | -$8.8B |
Bernanke spoke before the Economic Club of Washington today about the fed's latest outlook on monetary policy and no major changes were announced, but it seemed that Bernanke reassured the market to an even greater extreme than before that the fed will not be raising interest rates at any time in the near future. Last Friday’s better than expected jobs data had some speculating that interest rates may be on the rise sooner than previously thought, but Bernanke’s remarks today seemed to indicate that any interest rate increases are still a long way away. Bernanke was even bold enough to say that fed’s actions will not cause inflation and that it may even go lower from here. Read more on his remarks here.
There are no major economic reports due out tomorrow.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil fell about 2% on worries over future energy demand.
The U.S. dollar index saw impressive gains in early trade in continued reaction to last Friday’s jobs data, but it then erased its advance and ended unchanged after Bernanke’s remarks re-convinced the markets that any interest rate increases are still a long way off.
Treasuries rose after Bernanke’s remarks sent interest rates lower.
The Dow, Nasdaq, and S&P ended mixed and near unchanged as Bernanke’s remarks both increased worries over the economy and also encouraged market participants over continued low interest rates.
Among the big names making news in the market today were Amgen, CF Industries and Terra, and D.R. Horton.
The Commentary:
“Dear Jim,
Since the actual carry trade on the dollar determines a "Synthetic Short" on the US dollar, then it is fair to assume that as soon as interest rates, for any reason, start to rise shorts will be closed and the dollar sustained and propped up.
Isn't that going to put big downward pressure on Gold?
Could you kindly also let us know, in your view, what is going to be Gold's biggest threat?
Regards,
CIGA Francesco
Dear CIGA Francesco,
This is a popular concept that needs explanation.
1. The size of the carry trade cannot be known. There are no reliable sources of information by which you can validate statements such as "The Mother of All Carry Trades," made by popular academics. What passes through Libor and what any source of dollar lending does lies in a non transparent private treaty market. None of this in terms of a meaningful percentage can be gauged by reviewing COT (Commitment of Traders) data.
You can therefore assume that any source that says they can size the carry trade is full of bull.
2. The carry trade is not an all on or off arena. Some will close their positions but others convinced that rates will remain relatively low for a period of time will enter transactions. Most commentators refer to the carry trade as if it was a singular large bull elephant that enters and exits certain trades, bashing and breaking everything in sight.
As an example, on Friday some may have closed carry trade positions while other would have seen it as a point of entrance.
3. Those that participate in the carry trade are well financed (at least at the start) and generally of above average market intelligence. Commentators again see the carry trade as a static long of an asset and short a currency. That is so far from the truth that it is actually STUPID. I am sure some carry traders were sellers as gold approached $1224 and will be again at $1274-$1278.
4. Once getting a lead (profit) in the transaction a wise carry trader will see to hedging the currency and interest cost risks.
5. Much of the carry trade today is done as an OTC derivative transaction in legs (positions) or in whole or combinations thereof.
6. The major factor of the carry trade is that the currency of choice should have negative fundaments and a RELATIVE low interest cost. Note the word RELATIVE. That means if rates begin to rise, the short term interest rate should rise so as to maintain the state of RELATIVE low interest rates for the carry currency in comparison to other currencies.
7. Remember even then the carry trade is not one enormous trader, it is many traders, some entering and others exiting.
To make the statement "synthetic dollar short," it carries a connotation of a singular unit, unhedged and never changing, that will at some point attempt a singular exit. That simply is not the truth of the matter.
The carry trade is destined to go for years in the US dollar with periods when their will be large positions and at other times smaller positions.
Those who think differently should review the years of carry experience in the Japanese Yen. Recognize that the policies of the US Fed and Treasury are a mirror image of what resulted there for many years.
In conclusion, the concept "Synthetic Dollar Short" is glib when describing the carry trade and therefore an unknowable factor by which to trade gold.
Trading gold, which is insurance against the effects of depraved economics, is the proper understanding of what gold is as a currency. Few if any will do as well as those reading here that entered gold under $300 and still maintain that position.
I will advise taking the cost of your position out between gold at $1580 and $1620, letting the balance of your position ride as the price shows its intention of reaching Alf and Martin's numbers.
Respectfully yours,”- Jim Sinclair, JSMineset.com
“This correction should have been no surprise to you dear reader... as it certainly was no surprise to me. Of course what happens from here is totally dependent on what 'da boyz' are going to do. Will we see a continuation of this dollar 'rally'? How far down in price is this correction going to go? How long will it last? Nobody knows. I certainly don't.
But what I do know is this, that when this correction has run its course, it might be the last decent entry point to buy the precious metals and their shares for a very long time to come... as this bull market in gold and silver has a long long way to go before it breaths its last.”– From Ed Steer’s Gold & Silver Daily, read the full report here.
GATA Posts:
James Turk: Another bounce in the dollar
National Enquirer could find its biggest scandal in gold
Bloomberg does its best to make gold look bad when it's shining
GoldMoney's James Turk interviewed by King World News
FT surveys some fund managers about gold
Futures hassles push funds into buying real commodities
Silver held up well Friday, Ted Butler tells King World News
All U.S. Mint gold offerings are sold out, suspended, or limited
China reassures on dollar strategy
James Grant: Requiem for the dollar
Best-performing fund of last 10 years is BlackRock gold
The Statistics:
Activity from: 12/03/2009
Gold Warehouse Stocks: | 9,692,567 | -162 |
Silver Warehouse Stocks: | 111,860,110 | +71,219 |
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 | 1129.966 | 36,329,528 | US$41,502m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 128.57 | 4,120,939 | US$4,761m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 14.93 | 477,675 | US$555m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 53.53 | 1,720,911 | US$2,087m |
NASDAQ Dubai | Dubai Gold Securities | 0.155 | 4,985 | US$6m |
Note: Change in Total Tonnes from yesterday’s data: SPDR subtracted 1.524 tonnes and the LSE added 0.35 tonnes.
COMEX Gold Trust (IAU) Total Tonnes in Trust: 82.99 - No change from yesterday’s data.
Silver Trust (SLV) Total Tonnes in Trust: 9,514.35 - No change from yesterday’s data.
The Miners:
Franco-Nevada’s (FNV.TO) all-cash offer for International Royalty (ROY), Exeter’s (XRA) increased drilling, Anatolia’s (ANO.TO) exploration results, Ivanhoe’s (IVN) construction budget, Claude’s (CGR) mineral resource statement, Pacific Rim’s (PMU) second quarter results, Jaguar’s (JAG) mineral resource statement, ITH’s (THM) assay results, South American Silver’s (SAC.TO) completed financing, and Impacts’ (IPT.V) drill results were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. International Royalty | ROY +51.24% $6.73 |
2. Richmont | RIC +3.48% $3.57 |
3. Exeter | XRA +2.62% $6.27 |
LOSERS
1. Kimber | KBX-8.45% $1.30 |
2. Alexco | AXU-7.02% $3.18 |
3. Banro | BAA-6.17% $2.13 |
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:
Freewest Resources Canada Inc. and Cliffs Natural Resources Inc. to Hold Investor Call to Address False and Misleading Statements Made by Noront Resources Ltd. - More
- December 07, 2009 | Item | E-mail
Alder Resources Ltd.: Canadian Creek, Yukon; Gold Mineralization Discovered in New Targets - More
- December 07, 2009 | Item | E-mail
South American Silver Corp. Completes Final Tranche of $3.25 Million Financing - "South American Silver Corp. ("SASC" or the "Company") (TSX:SAC - News) is pleased to announce that it has closed the second tranche of its previously announced private placement ("Private Placement"). The second tranche consisted of the issuance of 1,180,000 units ("Units") at a price of $0.40 per Unit for gross proceeds of $472,000. All amounts are expressed in Cdn$." More
- December 07, 2009 | Item | E-mail
Carat Exploration Inc. Cancels Option and Joint Venture Agreement With Brasilca Mining Corporation and Enters Into an Agreement to Acquire Mineracao Vale Do Son - More
- December 07, 2009 | Item | E-mail
Capital Gold Announces First Fiscal Quarter 2010 Results Conference Call - More
- December 07, 2009 | Item | E-mail
Panoro Plans $500,000 Private Placement Financing - More
- December 07, 2009 | Item | E-mail
Malawi shaken by new tremors in uranium mine area - More
- December 07, 2009 | Item | E-mail
Tirex Intersects 12.0m (39.4 ft) of 0.91% Copper, 4.00% Zinc, 14.1 g/t Silver, and 2.4 g/t Gold - More
- December 07, 2009 | Item | E-mail
Commander Earns 100% Interest in Bravo Property, Baffin Island, Nunavut - More
- December 07, 2009 | Item | E-mail
Fortress Reports Drilling Underway at the Limonite Project, Far East Russia - More
- December 07, 2009 | Item | E-mail
Canadian Shield Updates Regional Andean Gold Exploration Program in Peru - More
- December 07, 2009 | Item | E-mail
SLAM drilling at Silverjack - More
- December 07, 2009 | Item | E-mail
Bravo Encounters 10 metres of 4.4g/t Au and 31.6g/t Ag at Homestake Ridge - More
- December 07, 2009 | Item | E-mail
Starcore Appoints New CEO - More
- December 07, 2009 | Item | E-mail
Duran Ventures Initiates Drilling at Aguila Project - More
- December 07, 2009 | Item | E-mail
Santa Fe Gold Nearing Production of Gold and Silver at Summit Project - More
- December 07, 2009 | Item | E-mail
Fission Energy Plans 20 Hole Winter Exploration Program at Waterbury Lake - More
- December 07, 2009 | Item | E-mail
Levon Gives a Notice of Exercise to Valley High on its Option for 51% of the Cordero-Sanson Project, Mexico - More
- December 07, 2009 | Item | E-mail
Converge Global Expands Eagle Nest Mining Property and Receives Preliminary Geological Report - More
- December 07, 2009 | Item | E-mail
Cliffs, Noront spar over Freewest assets - More
- December 07, 2009 | Item | E-mail
Uracan discovers multiple new areas of uranium mineralization in Quebec - More
- December 07, 2009 | Item | E-mail
Tara Minerals Reaches Agreement to Sell Concentrate to Glencore - More
- December 07, 2009 | Item | E-mail
San Marco Appoints Brent Hendrickson as V.P. Exploration - More
- December 07, 2009 | Item | E-mail
Cliffs Natural Resources Inc. Urges Freewest Shareholders To Disregard Noront's False and Misleading Claims - More
- December 07, 2009 | Item | E-mail
Quaterra Commences Step-Out Drilling on MacArthur Copper Oxide Resource - More
- December 07, 2009 | Item | E-mail
Crocodile Gold Commences Drilling at Cosmo: Step Out Drilling Up to 400 Metres Beyond Current Resource - More
- December 07, 2009 | Item | E-mail
Western Copper Closes C$5.4 Million Flow-Through Financing - More
- December 07, 2009 | Item | E-mail
Northern Superior Announces Non-Brokered Private Placement Financing - More
- December 07, 2009 | Item | E-mail
Houston Lake Mining Announces $500,000 Flow-Through Financing - More
- December 07, 2009 | Item | E-mail
Paladin Energy Ltd: Change of Address - More
- December 07, 2009 | Item | E-mail
Elray Resources, Inc. Executes Letter of Intent to Acquire Prime Property in the Prolific Gold Region, El Oro Province of Ecuador - More
- December 07, 2009 | Item | E-mail
Timmins Gold Corp.: Step Out Drilling at San Francisco Mine Indicates Potential to Increase Gold Resource and Currently Planned Pit Limits - More
- December 07, 2009 | Item | E-mail
Black Hawk Exploration Incorporates Wholly Owned Gold Exploration Subsidiary 'Golden Black Hawk' - More
- December 07, 2009 | Item | E-mail
Thompson Creek announces 2010 capital expenditure plans and revision of the Endako Mine expansion project - More
- December 07, 2009 | Item | E-mail
United Mines, Inc. Completes Evaluations and Begins Upgrades to Its Permitted "Twin Plant" Mill Site - More
- December 07, 2009 | Item | E-mail
IMPACT SILVER DRILLS 1,078g/t SILVER OVER 3.27 METERS AT NOCHE BUENA - "IMPACT Silver Corp. ("IMPACT") is pleased to announce further assays from its drill program on the Noche Buena Vein System located four kilometers southwest of IMPACT's Guadalupe processing plant in the prolific Royal Mines of Zacualpan Silver and Gold District of central Mexico." More
- December 07, 2009 | Item | E-mail
Exeter increases drilling at Caspiche and Cerro Moro to 10 rigs - "At Caspiche, the Company now plans 35,000 metres ("m") (114,829 feet ("ft")) of drilling, up from the previously announced 20,000 m (65,617 ft) program. Boart Longyear have added two rigs to the four already being provided by Major Drilling. The program will continue to May 2010." More
- December 07, 2009 | Item | E-mail
Copler drilling extends gold mineralization in two zones - "Anatolia Minerals Development Limited ("Anatolia" or the "Company") (TSX:ANO - News) announces additional results from the current sulfide exploration program at the Copler Gold Project. These holes focused on targets below the planned Manganese Mine Zone pit and at depth along the western boundary of the planned Main Zone pit. New structures representing extensions of gold mineralization were identified in both zones." More
- December 07, 2009 | Item | E-mail
Ivanhoe Mines Announces Construction Budget of US$758 Million For Development Work in 2010 at Oyu Tolgoi Mining Complex in Mongolia - "Ivanhoe Mines' (NYSE:IVN - News)(NASDAQ:IVN - News)(TSX:IVN - News) President and Chief Executive Officer John Macken announced today that the joint Ivanhoe Mines-Rio Tinto Oyu Tolgoi Technical Committee has approved a conditional US$758 million budget for 2010 to begin full-scale construction of the copper-gold mining complex in southern Mongolia." More
- December 07, 2009 | Item | E-mail
Claude Resources Inc. Reports Independent NI 43-101 Resource at Madsen Mine - "Claude Resources Inc. (TSX-CRJ; NYSE Amex-CGR) today provided an independent mineral resource statement from its 100% owned and operated advanced exploration project at Madsen in Red Lake, Ontario. The 10,000 acre property is equipped with a 4,125 foot shaft, 500 tonne per day mill and tailings pond, all of which are fully permitted." More
- December 07, 2009 | Item | E-mail
Pacific Rim Mining Announces Fiscal 2010 Second Quarter Results - "For the three month period ended October 31, 2009, Pacific Rim recorded a loss for the period of $(1.3) million or $(0.01) per share, compared to a loss of $(1.2) million or $(0.01) per share for the three month period ended October 31, 2008. Although the loss for both periods is relatively unchanged, the loss from continuing operations during Q2 2010 was $(1.4) million or $(0.01) per share, compared to $(2.6) million or $(0.02) per share during Q2 2009, the difference being primarily attributable to significantly lower direct exploration expenditures during Q2 1010 compared to the same period a year earlier." More
- December 07, 2009 | Item | E-mail
Jaguar Mining Announces a 72% Increase to Gold Resources - "Incorporating the new mineral resources for the Gurupi Project to Jaguar's mineral resource estimates for its properties in Minas Gerais, Brazil, as filed earlier this year, Jaguar's measured and indicated ("M&I") gold resources now total approximately 95,233,340 tonnes at an average grade of 1.97 grams per tonne totalling approximately 6,035,000 ounces." More
- December 07, 2009 | Item | E-mail
International Tower Hill Continues to Expand Mineralization at Sunshine & Money Knob Zones, Livengood Gold Project, Alaska - "International Tower Hill Mines Ltd. ("ITH" or "the Company") is pleased to announce assay results of the final 23 drill holes from the 2009 drill program at Livengood Gold Project, Alaska. The results continue to expand the Sunshine Zone to the west, with Hole MK-RC-303 (96 metres @ 1.47 g/t gold) representing a 75 metre step out and leaving the zone open for further expansion." More
- December 07, 2009 | Item | E-mail
International Royalty informed by Franco-Nevada Corporation of its intention to make an offer for IRC shares - "International Royalty Corporation (NYSE-A:ROY, TSX: IRC) ("IRC") announced today that it has been informed of the intention of Franco-Nevada Corporation to, directly or indirectly through a wholly-owned subsidiary, make a formal all-cash offer to IRC shareholders to acquire any or all of the outstanding common shares of IRC for C$6.75 cash per share. IRC's board of directors will be meeting with its legal and financial advisors to consider an appropriate response to Franco-Nevada Corporation's intention regarding the offer and the board will communicate further with IRC's securityholders in due course." More
- December 07, 2009 | Item | E-mail
- Chris Mullen, Gold Seeker Report
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-- Posted 7 December, 2009 | |