ADVERTISEMENT

The Coming Big Money Bang

The Markets:

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

Oil rose for the first time in seven sessions after more violence in Nigeria and increased demand forecasts by EIA officials, but gains were somewhat limited due to comments from two OPEC ministers that said there was plenty of supply in the market.  Oil ultimately ended higher as traders took positions ahead of tomorrow’s inventory reports which Platts expects to show small builds across the board.

The U.S. dollar index rose versus the euro as German industrial production fell, but many traders were on edge ahead of meetings for the Federal Open Market Committee (FOMC), the Bank of England (BoE), and the European Central Bank (ECB) this week.  The fed is expected to keep interest rates unchanged in the U.S. and perhaps give a tamer inflation reading tomorrow, while the BoE and ECB are expected to either hike interest rates or at least point to interest rate hikes in the near future on Thursday.

Treasuries remained near unchanged and ended with small losses ahead of tomorrow’s fed meeting.

The Dow, Nasdaq, and S&P fell as traders took profits from the markets recent rally, but all three indices were able to cut notable early losses and close mixed and near unchanged.

Among the big names making news in the market today were Molson Coors, Tyco, Hewlett-Packard, Lazard, and CVS/Caremark.

The Commentary:

“June Gold finished down 3 at 687.4, 1.6 off the high and 3.2 up from the low.

May Silver closed down 0.038 at 13.489. This was equal to the low and 0.071 off the high.

A rebound in the US Dollar pressured gold prices on Tuesday and some traders were also adjusting positions ahead of the Fed meeting tomorrow. A thin US economic report slate this session had the metals markets looking for direction guidance from price action in the currency markets. While the Fed is expected to leave interest rates unchanged, uncertainty over the wording of the Fed statement has traders lightening up on metals this session. Gold prices have rallied strongly over the last several sessions and with the market becoming a little over bought and prices approaching over head resistance, it is no surprise some traders have decided to take profits. Euro zone Central Bank gold reserves fell by 186 million Euros in the week ending May 4th as 2 Euro-zone Central Banks sold gold. A rebound in crude oil prices has helped gold trim losses this session.

While the silver market was initially pressured by a stronger US Dollar, the market has been able to trim losses during the session helped by a rebound in copper prices, a strong economic reading and a rebound in crude oil prices. Position adjusting ahead of tomorrow's Fed meeting triggered short covering in the Dollar and profit taking in silver although the Fed is expected to keep interest rates unchanged. If the Fed statement hints at a possible Fed ease later this year, it could easily trigger a Dollar slide and a silver rebound during Wednesday's session. A strong reading from the March Wholesale trade data showing lower than expected inventories and higher than expected sales provided support to silver on an improved industrial demand outlook while a rebound in energy prices rekindled inflation concerns.” - The Hightower Report, Futures Analysis and Forecasting

GATA Posts:

Ecuador won't renew U.S. investment deal

James Turk: Gold's infallible indicator is screaming 'buy!'

The Statistics:

As of close of business: 5/07/2007

Global Gold ETF Holdings

[WGC Sponsored ETF’s]

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

COMEX Gold Trust (IAU)

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

Silver Trust (SLV)

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

The Stocks:

Randgold’s (GOLD) first quarter results, Exeter’s (XRA) drill results, Rubicon’s (RBY) drilling, Great Basin’s (GBN) drill results, Glencairn’s (GLE) option agreement to purchase a complete milling facility, Banro’s (BAA) drill results, Minco Silver’s (MSV.TO) exploration program, and Coeur’s (CDE) first quarter results were among the big stories in the gold and silver mining industry making headlines today.

WINNERS

LOSERS

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:

Douglas Lake and Canaco Terminate Letter of Intent On Proposed Merger - More
- May 08, 2007 | Item | E-mail

Phoenix Matachewan Mines Inc.: Gold Bar Lake (Steel River) Claim Acquisition - More
- May 08, 2007 | Item | E-mail

Hinterland closes $75,000 Financing - More
- May 08, 2007 | Item | E-mail

Grenville Announces Silveria Progress Report - More
- May 08, 2007 | Item | E-mail

Melkior Announces the Completion of a $1,500,000 Brokered Private Placement - More
- May 08, 2007 | Item | E-mail

Amex closes a $260,000 private placement - More
- May 08, 2007 | Item | E-mail

GoldQuest Expands Massive Sulphide Project & Commences Drilling - More
- May 08, 2007 | Item | E-mail

Centerra Gold Annual General and Special Meeting of Shareholders Wednesday, May 9, 2007 - "Centerra Gold Inc. (Toronto:CG.TO - News) will hold its 2007 annual general and special meeting of shareholders on Wednesday, May 9, 2007 at the Esso Theatre, Hockey Hall of Fame, Toronto. At the meeting, the Company will review its performance in 2006 and its plans for the future. The meeting will also be webcast." More
- May 08, 2007 | Item | E-mail

Klondike Star Launches Drill Program at Spice Gold Project - More
- May 08, 2007 | Item | E-mail

Radius Appoints New VP Exploration - More
- May 08, 2007 | Item | E-mail

Minco Silver Intitiates Phase IV Exploration at Fuwan - "Minco Silver Corporation (the "Company" or "Minco Silver") (Toronto:MSV.TO - News) is pleased to announce that the Company has initiated a Phase IV exploration program on its Fuwan Silver deposit located in Guangdong Province, China. The program is designed to further increase the confidence level of the resource through infill drilling and cover a broad spectrum of detailed engineering