The Markets:

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

Oil gained but still closed below $70 for the third day in a row as the focus of the energy market turned back to the world economic outlook and its impact on demand.

The U.S. dollar index again fell despite further weakness in the yen as the euro continued to gain on the outlook that Europe will continue to raise interest rates while the fed seriously considers rate cuts in the U.S.

Treasuries fell at the open, but they found gains by the close on worries about an oncoming recession in the U.S.

The Dow, Nasdaq, and S&P opened higher on encouraging news that Bank of America bought a $2 billion stake in Countrywide, but all three indices fell off to find losses by the close on recession worries as Angelo Mozilo and Bill Gross were just two of several notable names raising the possibility of a recession in the U.S. in the near future.

Among the big names making news in the market today were Countrywide, Smithfield, Hormel, Bank of America and Countrywide, and Goldman Sachs.

The Commentary:

“December Gold finished down 0.3 at 668.4, 6.1 off the high and 0.7 up from the low.

September Silver closed up 0.075 at 11.64. This was 0.01 up from the low and 0.19 off the high.

The gold market’s correlation with the stock market continued on Thursday. In fact, the gold market hardly seemed to be that interested in the Dollar action, even though the December Dollar Index seemingly fell below a critical chart support point. However, the big event of the trading session was probably news that the Fed reported a significant drop in outstanding Commercial Paper levels but also dampening sentiment were statements from the Countrywide CEO who predicted a recession ahead for the US economy. In other words, dented economic sentiment and the stock market slide seemed to be the primary force pulling gold back from its initial strength.

While silver prices generally held their initial short covering gains, it was clear that the market was disappointed by the turn of events during the session Thursday. As suggested in the gold coverage today the bull camp was slightly undermined as a result of renewed concern of a collapse in the amount of Commercial paper outstanding and also because of patently negative forward guidance from a prominent CEO. It is possible that silver was indirectly supported to its gains on the day by strength in the copper market. In other words seeing positive leadership from the industrial metals sector probably distracted the silver trade away from the disappointing price action in the gold and platinum markets.”- The Hightower Report, Futures Analysis and Forecasting

GATA Posts:

ECB funding fails to relieve euro interbank market

David Callaway: Money-center banks aren't fooling anybody

Treasury's plan backfires as IMF targets dollar's overvaluation instead of yuan's

Cancel interest rate increase, German industry pleads

Central banking is easy; the challenge is to stay in power

Debt overtaking GDP in Britain too

Countrywide confirms Bank of America's $2 billion investment

Straight from the discount window to a bailout for Countrywide

John Rubino: Nope, that's not money

Delinquent real-estate loans up by 36% in a year

Fed optimistic it has bought time and can avoid rate cut

Fed's strategy of boosting liquidity survives another day

Banks make great show of borrowing at Fed's discount window

Jonathan Weil: Wells Fargo gorges on mark-to-make-believe gains

The Statistics:

As of close of business: 8/22/2007

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:

Aurizon’s (AZK) new Board member, Paramount’s (PZG) environmental permits, Banro’s (BAA) drill results, Aquiline’s (AQI.TO) drill results, SNS Silver’s (SNS.V) completed drilling, MAG Silver’s (MVG) mobilized drill program, and Silvercorp’s (SVM.TO) warrant extension 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:

Newmont Revises Dividend Record Date - "Newmont Mining Corporation (NYSE: NEM - News) today announced that it is changing the record date for the dividend declared by the Board of Directors on July 18, 2007, as the date originally set is a non-settlement date in Australia. The record date will be changed from September 7, 2007 to September 6, 2007. Accordingly, the regular quarterly dividend of $0.10 per share, payable September 28, 2007, will be paid to holders of record at the close of business on September 6, 2007." More
- August 23, 2007 | Item | E-mail

Idaho General Mines Announces Appointment of PricewaterhouseCoopers (PwC) as Auditors - More
- August 23, 2007 | Item | E-mail

Prom Resources' Recent Information - More
- August 23, 2007 | Item | E-mail

Bayswater Confirms Cash Position - More
- August 23, 2007 | Item | E-mail

Hard Creek Nickel Files Reports in United States - More
- August 23, 2007 | Item | E-mail

Gossan's Manigotagan Silica Sand Meets the API's Minimum Standards for Frac Sand Proppant - More
- August 23, 2007 | Item | E-mail

Los Andes Intersects 240 Metres Grading 0.40% Cu and 0.017% Mo at Vizcachitas Porphyry Copper-Molybdenum Project - More
- August 23, 2007 | Item | E-mail

Canadian Shield Signs Letter of Intent to Acquire La Tola Property From Solitario Resources and Consolidates Ground Adjacent to Ccello Ccello Property - More
- August 23, 2007 | Item | E-mail

Everton Resources Confirms no Exposure to Asset Backed Commercial Paper - More
- August 23, 2007 | Item | E-mail

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