Tuesday, September 22, 2009
First Day of Fall Rolls into Eureka
It is 6:34 AM and we're on our second pot. The Colonel is a little late this morning because I've been helping Mother Nature offload Fall from her lowboy trailer. She rolled into Eureka County at 2:18 AM this morning, pretty as ever with a twinkle of El Niño in her eye. Mother N still drives a big red Pete 379 which is a Yee-ha for that ole classic hauler. If you're quick she might still be parked in front of the Courthouse although she's got a delivery of Autumn to drop off in Austin.
Unfortunately, the U.S. dollar fell off her trailer at the summit. It hit new lows this morning propelling gold above $1015 and silver beyond $17. There is a lot of currency buzz ahead of the Federal Reserve meeting and the G-20 meeting in Pittsburgh this week. Investors look forward to more hints about the economy and the question of when central backs may start tightening monetary policy after the recent splurge in stimulus around the world. One thing for sure is by Friday we will have seen either new highs in gold or a dollar on a rebound from the bottom. Stay tuned.
By the by, if you want to read what gold mining CEOs say about the price of gold including Barrick's Aaron Regent, checkout this article in MineWeb today:
Gold Rally has Legs: Mining Industry Leaders Agree
Seth Foreman of General Moly (Good Golly Miss Moly!) made a good call on molybdenum prices last week. If you missed it, his analysis is a terrific overview on recent current price action in the metal. We've been monitoring both nickel and moly daily and there appears to be a bottom forming with a slight uptick in nickel. Let's get these rascals on the up elevator again and have copper bust 3-bucks! It looks like General Moly stock has already got her legs back in early trading after yesterday's retreat.
Enough talk, let's walk the walk:
4-WD is OFF (the VIX or "fear index" is low, what's this?)
Yellow light is ON for possible adverse regulation/legislation (mercury emissions)
Otherwise, all lights are green on the Eureka Outlook Dashboard (upper right, what's this?)
Oil is up $1.22 in early trading to $71.15 (November contract); Gold is up $12.4 to $1017.3 (December contract, most active); Silver is up $0.325 to $17.205 (December contract); Copper is down $.0595 to $2.8650 (December contract); Molybdenum holds steady at $14.75.
The DOW is up 6.35 points to 9785.21; the S&P 500, up 3.55 points to 1068.21. The miners are happy again:
Barrick (ABX) $37.07 up 1.53%
Newmont (NEM) $45.35 up 2.12%
General Moly (Eureka Moly, LLC) (GMO) $3.42 up 2.09%
Freeport McMoran (FCX) $71.30 up 2.35% (a bellwether mining stock spanning gold, copper & molybdenum)
Steel stocks are mixed, (a "tell" for General Moly):
Nucor (NUE) $49.25 down 0.04% - domestic steel manufacturing
ArcelorMittal (MT) $39.37 up 2.12% - global steel producer
POSCO (PKX) $107.05 up 0.19% - South Korean integrated steel producer
The Eureka Miner's Grubstake Portfolio is up 1.39% to $1,238,151.22(what is this?).
Headline Photograph by Mariana Titus