Latest Headlines

Search

-- Posted Wednesday, 28 November 2007 | Digg This Article | Source: GoldSeek.com

The Metals:

Gold fell in Asia and dropped to as low as $791.25 with an over $20 loss by early trade in London before it rebounded in later London and early New York trade to as high as $807.65 by a little before 10AM EST, but it then fell back off into the close and ended with a loss of 1.67%.  Silver dropped to as low as $14.11 before it rallied to find a decent gain at as high as $14.547, but it also fell back off into the close and ended with a loss of 0.90%.  At the time of writing both metals are seeing over 0.5% gains from their respective closes in after hours access trading.

Euro gold fell to about €542, platinum lost $7 to $1436, palladium lost $7 to $344, and copper rose roughly 5 cents to about $3.03.

Gold and silver equities remained mixed and near unchanged in morning trade, but they then surged higher in afternoon trade along with the major indices and ended with nearly 3% gains.

The Economy:

Existing Home Sales fell a whopping 20.7% compared to October 2006 and the median home price dropped 5.1% as inventories rose to a 10.8 month supply.  Fed vice-chairman Donald Kohn started the day off with comments that greatly increased hopes for an interest rate cut at their next meeting and the fed’s Beige Book confirmed that sentiment later in the day.  The fed’s Fisher then came out with some comments about how he is very concerned about inflation, but those went largely ignored.  All ears now turn to Bernanke’s comments tomorrow.

Also tomorrow at 8:30AM EST brings Initial Jobless Claims for 11/24 expected at 330,000, 3^rd quarter GDP expected at 4.0%, and the Chain Deflator expected at 0.8%.  At 10AM are New Home Sales for October expected at 750,000.

Today's Gold Seeker Report Is Sponsored By:

Starcore International is a gold and silver producer in Mexico and a 'Tier One' company listed on the TSX-V under the symbol SAM. The San Martin Gold mine was acquired January 2007 from Goldcorp Inc. It is located about 50 km east of the City of Querétaro in Querétaro State, a few hours drive from Mexico City. The company currently retains an 80 to 20 joint venture agreement with Goldcorp. Inc. in the development of the Cerro Dolores, El Transito Deposit 190 km south - southwest of Mexico City. The El Transito Deposit is a silver-lead-zinc replacement orebody defined by over $US 2 million in development expenditures Click Here to Learn More...

The Markets:

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

Oil fell about 4% to a two week low despite reports that Saudi Arabia foiled a terrorist attack and arrested over 200 al-Qaida linked suspects that are accused of a number of plots including attacks on oil installations.  The fall came as inventories did not fall as much as expected and indicated that demand may be finally dropping off due to a slowing economy.  Crude inventories fell just 400,000 barrels, gasoline inventories built 1.4 million barrels, distillates fell 100,000 barrels, and refinery utilization rose 2.4% to 89.4%.

The U.S. dollar index rose slightly, but it ended far from its early highs as an overnight short covering rally was cut into by the prospect of an interest rate cut of at least 25 basis points at the fed’s next meeting on December 11^th.

Treasuries fell and interest rates rose despite a more dovish fed outlook as that outlook sent the Dow, Nasdaq, and S&P substantially higher and pulled money out of bonds and into stocks.  The Dow rallied for two straight days for the first time in a month.

Among the big names making news in the market today were Wells Fargo, Freddie Mac, and Florida Public School Fund.

The Commentary:

“December Gold finished down 13.7 at 800.3, 7.2 off the high and 3.8 up from the low.

December Silver closed down 0.15 at 14.335. This was 0.085 up from the low and 0.125 off the high.

Another big range down washout in February gold was partially rejected but the strength in the Dollar and the weakness in oil would seem to question a number of the bullish arguments. It is also possible that the sharp rally in the equity market and the slide in oil prices reduced investors flight to quality fears and that in turn prompted more gold longs to move to the sidelines. While seeing the Dollar rise, equities bounce, and oil in a washout mode might deflate inflationary expectations, it is possible that those market shifts will eventually take some of the slowing threat off the back of the gold market. In fact, with the regularly scheduled US economic reports on Wednesday pointing to weakness, it is possible that the sharp rise in equity prices served to mitigate the potential macro economic selling interest off the numbers.

Clearly the silver market avoided the same type of pressure being seen in the gold market. It probably goes without saying that the sharp run up in equity prices helped the silver market get around the fears of slowing that were seen in the wake of the slack US number flow on Wednesday. With the copper market managing a positive track for most of the trading session Wednesday, it is possible that silver was benefiting from hope that lower US interest rates and or improving macro economic sentiment might be set to improve demand for industrial metals.”- The Hightower Report, Futures Analysis and Forecasting

The Statistics:

As of close of business: 11/27/2007

Global Gold ETF Holdings

[WGC Sponsored ETF’s]

 Note: Change in Total Tonnes from yesterday’s data: The NYSE/SGX added 18.13 tonnes to a new record high holding.

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:

Anglo American’s (AAUK) copper project, New Gold’s (NGD) General Manager appointment, Gold Fields (GFI) recognition as best performer in the SRI Index, Randgold’s (GOLD) equity raise, and Sabina Silver’s (SBB.V) drill 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:

General Moly Announces Closing of ArcelorMittal Private Placement - More
- November 28, 2007 | Item | E-mail

Drake Gold Resources, Inc. Releases Comprehensive Corporate Development Strategy - More
- November 28, 2007 | Item | E-mail

Emgold completes drilling on its molybdenum, tungsten and gold properties in British Columbia - More
- November 28, 2007 | Item | E-mail

Bellhaven & Dominion Minerals Completes Drill Program at Cerro Chorcha - More
- November 28, 2007 | Item | E-mail

Erdene Releases Final Phase I Drill Results at Zuun Mod Outlines Two Large Molybdenum Zones - More
- November 28, 2007 | Item | E-mail

New Island Reports Option Agreement and Further Drilling at Nugget Pond - More
- November 28, 2007 | Item | E-mail

Mayfair Mining & Minerals, Inc. Appoints an Additional Advisory Board Member - More
- November 28, 2007 | Item | E-mail

Why you must own gold, not just gold miners - "As regular readers may have noticed, I’m a big fan of mining stocks.

But it’s important to remember - although their fortunes may be linked, owning a gold mining stock is not the same as owning gold itself. You should always have exposure to the yellow metal itself." More
- November 28, 2007 | Item | E-mail

International Gold Resources, Inc. Announces Assay Results for Cupixi Manganese Target, Amapa State, Brazil - More
- November 28, 2007 | Item | E-mail

Capella Resources Reports New Brunswick Drill Results from the Harvey Project - More
- November 28, 2007 | Item | E-mail