The Markets:

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

Oil rose to a new record high at $84.05 a barrel before easing slightly and making a new record closing high at $83.69 on geopolitical concerns over Turkey possibly invading Northern Iraq “to quell Kurdish rebels.”

The U.S. dollar index rose slightly and treasuries traded mostly lower as generally better than expected economic data pushed interest rates higher, though most were pointing towards the fact that the dollar still sits less than 1 point away from making a new all-time low under 77.657 that was made just last Monday.

The Dow, Nasdaq, and S&P rose on strong retail sales and a buyout announcement, but they still ended short of their recent record highs.

Among the big names making news in the market Friday were General Motors, Oracle and BEA, and GE.

The Commentary:

“December Gold finished down 2.9 at 753.8, 3.7 off the high and 2.9 up from the low.

December Silver closed down 0.082 at 13.903. This was 0.063 up from the low and 0.057 off the high.

The gold market initially seemed to be in a profit taking mode Friday morning after some rather stellar gains earlier in the week. Certainly seeing the US Dollar manage a recovery bounce in the wake of a slightly better than expected US retail sales reading was cause for some players to bank profits. In fact, after the recent record spec and fund long positioning reading in the gold market, it is possible that some players were concerned about the potential for an extensively overbought spec positioning and that in conjunction with the bounce in the Dollar was more than enough excuse for weak handed longs to bank profits. It is also possible that gold was undermined by the fact that the Michigan Sentiment readings were weak and yet the Dollar mostly held in positive ground in the wake of that news. However, it had to be disappointing to the bull camp in gold to see prices weak in the face of strength in oil and equities prices. News that the recent Harmony Mine accident only cost that company 1,000 ounces of gold production was probably disappointing to the bull camp in gold.

Relatively speaking silver prices seemed to hold up somewhat better than gold prices in what appeared to be a profit taking session. However, some traders expressed concern that silver prices failed to manage a distinct rise above the even number $14.00 market early Friday morning. On the other hand, comments in the Press and from the trade would seem to suggest that many market participants remain upbeat toward silver despite its weakness on Friday. It is possible that the bull camp in silver was disheartened in the silver price action on Friday, especially when one considers the strength in equities and oil prices.”- The Hightower Report, Futures Analysis and Forecasting

GATA Posts:

Mining in South Africa: Deep, dark, and dangerous

Nickel may become Canada's new penny

The Statistics:

As of close of business: 10/11/2007

Global Gold ETF Holdings

[WGC Sponsored ETF’s]

 Note: Change in Total Tonnes from yesterday’s data: The NYSE/SGX added 6.15 tnonnes.

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:

Polyus Gold’s first half results, Apollo Gold’s (AGT) private placement, Gold Fields’ (GFI) sale of its Venezuelan assets to Rusoro (RML.V), and Metalline’s (MMG) concession purchase were among the big stories in the gold and silver mining industry making headlines Friday.

WINNERS