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The Coming Big Money Bang

The Markets:

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

Oil fell further from the new all-time high of $78.77 hit on Wednesday as the outlook remains relatively calm both on the geopolitical front and for weather forecasts of potential hurricanes.

The U.S. dollar index fell dramatically to back near the significant 80 level and treasuries rose on poor economic data and increased credit concerns that pushed interest rates lower ahead of the fed’s policy announcement next week.  The yield on the 10-year fell to a new 2 and ½ month low and yield on the 2-year fell under 4.5% for the first time since January 2006.

The Dow, Nasdaq, and S&P fell over 2% on renewed credit concerns as Bear Stearns’ debt rating outlook was cut by S&P and the company’s CFO came out and said that fixed income market turmoil is the worst in 22 years.

Among the big names making news in the market Friday were Bear Stearns, Brookfield, Tomkins, Chrysler and Cerberus, Toyota, RBS, Allianz, American Home Mortgage, and Procter & Gamble.

The Commentary:

“December Gold finished up 7.8 at 684.4, 0.1 off the high and 7.4 up from the low.

September Silver closed up 0.163 at 13.158. This was 0.148 up from the low and 0.032 off the high.

Gold extended its rally this afternoon as the bulls were emboldened by the dollar's persistent weakness in the wake of disappointing jobs data this morning. Gold followed the dollar's lead for a change, instead of taking its cues from the stock market, which was also weaker. The fact that today's moves were triggered by a disappointing, regularly-scheduled economic report as opposed to a "shock" like the sub-prime scandal that has a lot more uncertainty is probably the reason gold buyers felt comfortable. Reports yesterday that two gold ETFs saw record investment levels recently also didn't hurt gold's prospects. Some of the central bank selling that was supposedly keeping a lid on prices earlier in the session apparently gave way, as the market continued to make new highs into the afternoon.

Silver gained today on the dollar weakness. Disappointing job data this morning triggered steep declines in the dollar against most of the major currencies, and the dollar fell to its lowest levels in over a week. Precious metals bulls feel less threatened by the stock market's weakness today than they do when the sub-prime issue erupts, perhaps because they view the threat posed by the weaker Payrolls report as much more isolated than the sub-prime story, which has a more global reach.”- The Hightower Report, Futures Analysis and Forecasting

GATA Posts:

Ron Paul remains longshot for Republican presidential nomination

Grandich manages to get quoted again on capping of gold price

What a mystery: Wednesday's late jump in stocks prompts questions

The Statistics:

As of close of business: 8/2/2007

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: Change in Total Tonnes from yesterday’s data: 1.86 tonnes were removed from the trust.

The Stocks:

International Tower Hill’s (THM) Amex listing, Centerra Gold’s (CG.TO) agreement with the Mongolian government, AngloGold’s (AU) mine deaths, Eldorado’s (EGO) quarterly results, MAG Silver’s (MVG) shareholder rights plan, and Silver Wheaton’s (SLW) second quarter earnings were among the big stories in the gold and silver mining industry making headlines Friday.