Wednesday, June 24, 2009
Update for Eureka Ranchers, A Jump in Gold
Morning Miners! Morning Ranchers!
It is 6:07 AM and we have a full break room this morning. Lee sent us over some fresh coffee and donuts from Raine's this morning and the ole Colonel must admit that it tastes a lot better than what comes out of our boiler maker. She also informed me of two great links to add to the Report's Rancher's Corner:
Nevada Livestock Marketing, LLC
Superior Livestock Auction
The first provides full-service cattle sales & marketing serving the Fallon, Nevada and Outlying Areas; the second, a video auction service used by many Nevadans and similar to Western Video. For the ranchers and farmers that missed our kickoff in May, here's the link:
Checkout Our New Feature: "Rancher's Corner"
You can find the Rancher's Corner to your right. Thanks to Lee and all the other contributors that have made the Report better with their ideas and links. Keep'em coming!
This may prove to be an interesting day for the markets with the Federal Reserve statement expected at 2:15 AM (ET) concluding their two-day meeting. London spot gold is sensing something in the air jumping to $940 after traders returned from their pub lunch (London time). Other Fed-sensitive contracts demonstrated a slightly stronger U.S. dollar with respect to the euro and yen, and weaker compared to the Canadian loonie. All these trends could amplify or reverse depending on what Ben and the Boys have to say about inflation and the economic recovery this afternoon.
I'll close today with a currency chart missing from yesterday's discussion (Ask the Loonie Bird, Ask the Metals). Given the recent enthusiastic participation in our debt auctions, there is buzz about foreign investor sentiment: "Love the Treasurys, hate the dollar." Yesterday, we observed a weakening in commodity-sensitive currencies (loonie and aussie) and a mild recovery in the dollar. A reasonable question is why the dollar rally hasn't been stronger. The answer is that inflation fears in the U.S. are moving money into the euro (QEC U9) instead of our dollar (DX U9). Here's a chart of both for the last 3-months:
Oh-oh, a few ranchers just dozed off. Let's get them some more of that good Raine's coffee!
Enough talk, let's walk the walk:
Oil is down $0.26 to $68.98 in early trading (August contract); Gold is up $16.5 to $940.8 (August contract); Silver breaks $14 up $0.255 to $14.100 (July contract); Copper is up $0.0630 to $2.2615(July contract); Molybdenum is steady-eddy at $10.58.
The DOW is up 87.67points to 8410.58; the S&P 500, up 12.78 points to 907.88. The miners are rocking:
Barrick (ABX) $33.61 up 1.27%
Newmont (NEM) $41.82 up 1.21%
General Moly (Eureka Moly, LLC) (GMO) $2.32 up 5.45%
Freeport McMoran (FCX) $49.56 up 5.04% (a bellwether mining stock spanning gold, copper & molybdenum)
Steel stocks are snapping back (a "tell" for General Moly):
Nucor (NUE) $45.09 up 2.52% - domestic steel manufacturing
ArcelorMittal (MT) $33.31 up 4.26% - global steel producer
POSCO (PKX) $80.77 up 2.89%- South Korean integrated steel producer
The Eureka Miner's Grubstake Portfolio is rebounding nicely, up 3.05% to $999,562.52.