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-- Posted Friday, 9 November 2007 | Digg This Article | Source: GoldSeek.com

The Metals:

Gold remained near unchanged in Asia and rose to as high as $837.20 in London before it dropped to as low as $826.65 by early trade in New York, but it then moved back higher into the close and ended with a loss of just 0.37%.  Silver rose to as high as $15.625 by early trade in London before it dropped to as low as $15.033 by early trade in New York, but it then rallied back higher into the close and ended with a gain of 0.06%.

Euro gold remained near record highs at about €567, platinum lost $33 to $1427, palladium lost $3 to $369, and copper fell nearly 7 cents to about $3.20.

Gold and silver equities fell over 2% by late morning before they rebounded in afternoon trade, but they still ended with about 1.5% losses.

CoT Reports: Gold | Silver 

The Economy:

All of this week’s economic reports:

Next week’s economic highlights include Pending Home Sales and the Treasury Budget on Tuesday, Retail Sales, PPI, and Business Inventories on Wednesday, CPI, Initial Jobless Claims, the New York Empire State Index, and the Philadelphia Fed survey on Thursday, and Net Foreign Purchases, Industrial Production, and Capacity Utilization on Friday.

The Markets:

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

Oil rose by the end of the day as traders looked at tight supplies in the face of rising political tensions in Pakistan.

The U.S. dollar index dropped all the way to under the 75 level before it rebounded, but it still ended at a new record low on credit worries and a weak economic outlook.

Treasuries rose on the short end while longer term maturities remained near unchanged to further steepen the yield curve.  The yield on the 10 year fell to the lowest in over two years.

The Dow, Nasdaq, and S&P again fell markedly on more credit worries as Wachovia added itself to the list of financials to announce write downs due to credit market related losses.

Among the big names making news in the market Friday were Wachovia, Fannie Mae, Merck, Barclay’s, and BHP and Rio.

The Commentary:

“Gold is taking a breather this Friday and will be all the healthier for it.   So is the $, which is almost over $1.47 to the €.   Europe is upset as President Sarkozy said in no uncertain terms, but to no avail.   The fall of the $ takes international trade from Europe not China!

If gold holds above $800, then it will rise to a new hormone level in the next few days.   Have we entered a new era of uncertainty?   It seems so as currency fears mount next to credit fears.”- Julian D.W. Phillips, www.goldforecaster.com

“Round II of the “credit crisis” is developing further and creating an environment of additional fear and rising uncertainty.  The bull market in gold appears to be undergoing a mega-bull run higher, aided now by this crisis which includes the sinking dollar. They are intertwined and it is too late to try to reverse the problem because it has turned into this crisis.  It has to be confronted and it is unlikely to be easy or pretty. 

Therefore gold will continue to find strong capital inflows from all around the globe, growing numbers now redeeming their dollars for precious metals. During such a period, even minor consolidations in gold may knock off investors from their positions expecting a more traditional, deeper consolidation to occur.  I do not see gold losing its luster as deeper understanding of the Dollar’s grave position along with the “credit crisis” moves through more rounds in the coming months.”- Peter Spina, www.goldforecaster.com

“December Gold finished down 2.8 at 834.7, 2.7 off the high and 6.2 up from the low.

December Silver closed up 0.03 at 15.545. This was 0.375 up from the low and 0.075 off the high.

The gold market mostly waffled around early in the session but ended up spending most of the trading session in negative territory. However, the combination of a recovery from early new lows in the Dollar and ongoing weakness in US equity prices kept the gold trade off balance. It would seem like the gold market was at least partially undermined by the renewed fear that severe credit/housing crisis problems might translate inflationary expectations into deflationary fears. It is also likely that a slight improvement in the US Trade Deficit reduced flight to quality interest in gold and prompted some longs to bank profits after this week's initial run up in prices.

As suggested in the mid day coverage the silver market clearly outperformed the gold market for most of the session and that is really surprising considering the magnitude of the weakness in copper and the US equity market. Like the energy complex, the silver market seemed to make a statement on Friday by standing up to the physical commodity market liquidation tilt that seemed to come into play in the last two trading sessions of the week.”- The Hightower Report, Futures Analysis and Forecasting

GATA Posts:

Peter Brimelow: Veterans aren't panicking over Dow's plunge

Rio Tinto could be in the sights of more suitors, analysts say

The Statistics:

As of close of business: 11/8/2007

Global Gold ETF Holdings

[WGC Sponsored ETF’s]

 Note: No change in Total Tonnes from yesterday’s data: The NYSE/SGX added 2.15 tonnes to a new record high and the JSE added 0.37 tonnes.

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: 15.44 tonnes were added to the trust.

The Stocks:

NovaGold’s (NG) and Barrick’s (ABX) agreement over Donlin Creek, Royal Gold’s (RGLD) closed public offering, AngloGold’s (AU) reopening mine, Goldcorp’s (GG) third quarter earnings, Glencairn’s (GLE) third quarter results, Mines Management’s (MGN) royalty purchase, and Aquiline’s (AQI.TO) drill results were among the big stories in the gold and silver mining industry making headlines Friday.

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