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-- Posted Tuesday, 11 December 2007 | Digg This Article | Source: GoldSeek.com
| Close | Gain/Loss | Gold | $811.60 | +$4.00 | Silver | $14.67 | +$0.03 | XAU | 169.92 | -3.74% | HUI | 404.33 | -2.85% | GDM | 1244.45 | -3.20% | JSE Gold | 2433.33 | +2.86% | USD | 76.26 | +0.11 | Euro | 146.88 | -0.26 | Yen | 90.11 | +0.55 | Oil | $90.02 | +$2.16 | 10-Year | 3.990% | -0.159 | T-Bond | 116.475 | +1.625 | Dow | 13432.77 | -2.14% | Nasdaq | 2652.35 | -2.45% | S&P | 1477.65 | -2.53% |
The Metals:  Gold dropped to find about 0.5% losses at as low as $803.50 by early trade in London, but it then steadily moved higher for the rest of trade and ended near its high of $813.50 with a gain of 0.5%. Silver dropped to $14.52 by early trade in New York before it rallied to as high as $14.76 by early afternoon, but it then fell back off slightly in the last hour of trade and ended with a gain of just 0.20%. In reaction to the fed’s statement, however, both metals are trading over 1.5% lower in after hours access trade at the time of writing.
Euro gold rose to about €552, platinum gained $2 to $1462, palladium gained $1 to $344, and copper remained at about $3.02. Gold and silver equities rose to find about 1.5% gains before the fed’s statement, immediately fell back to unchanged following the statement, and then fell even further in the last hour and a half of trade and closed with about 3% losses. The Economy: Report | For | Reading | Expected | Previous | Wholesale Inventories | Oct | 0.0% | 0.5% | 0.6% |
The fed cut the fed funds rate by 25 basis points to 4.25% as expected and also cut the discount rate by 25 basis points. Some had hoped for a cut of 50 basis points in at least the discount rate if not the fed funds rate as well, but the fed did at least hint towards another rate cut at their next meeting. Most were hoping for a more dovish statement and a sense of urgency, however, and they instead received a statement that still cited risks to inflation as well as economic growth rather than one perhaps more concerned about future economic growth. There was one dissenting voter who wanted a cut of 50 basis points to the fed funds rate. Tomorrow at 8:30AM EST brings Export and Import Prices for November and the Trade Balance for October expected at -$57.0 billion. At 2PM is the Treasury Budget for November expected at -$90.0 billion. 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 rose over $2 to back above $90 despite the fed’s hawkish statement as a winter storm impacting much of the US created multiple supply problems ahead of tomorrow’s inventory reports. The U.S. dollar index ended slightly higher after the fed’s statement that was more hawkish than most expected. Treasuries rose slightly before the fed’s statement and rose even more after it on a flight to safety. The Dow, Nasdaq, and S&P traded on either side of unchanged in a rather tight range leading up to the fed’s statement and actually came into the statement at new session highs with nearly 0.5% gains, but all three indices then sold off markedly following the statement and ended with over 2% losses. Among the big names making news in the market today were H&R Block, Fannie and Freddie, Citigroup, AT&T, Genworth, Washington Mutual, General Electric, and DuPont. The Commentary:  “February Gold finished up 3.6 at 817.1, 0.7 off the high and 7.1 up from the low.
March Silver closed up 0.015 at 14.865. This was 0.105 up from the low and 0.065 off the high. With an initial slide in gold prices reversed ahead of the FOMC meeting and then seeing gold prices come under pressure in the wake of the 25 basis point cut it would seem as if a portion of the trade was indeed hopeful of something aggressive from the US Fed. It did seem as if strength in the energy complex and or the initial gains in the equity market provided the bull camp with its early strength but ongoing gains in the energy complex clearly wasn't enough to provide support to gold in the aftermath of the FOMC meeting. It should be noted that in the minutes after the Fed move, the gold market showed strength but that strength waned rather quickly. The silver market initially followed the gold market on Tuesday morning with a two sided trade, but in the wake of the Fed move, it was clear that a portion of the bull camp was disappointed in the action of the Fed. With copper prices also showing an afternoon weakening and equity prices giving up all their early gains and tracking sharply lower, one could concede to some physical commodity selling pressure in silver.”- The Hightower Report, Futures Analysis and Forecasting GATA Posts: 
Ed Steer: Larry Lindsey lays it on the line Murray Pollitt: The big shorts in gold are also the big frauds Ted Butler: The cop on the beat -- Part III Trade dollars for an even more imaginary currency -- just please don't spend them! Citigroup quietly unloads toxic SIVs to junior investors Societe Generale rescues SIV fund to avoid fire sale Troubled bond insurer gets $1 billion investment from buyout firm The Statistics: As of close of business: 12/10/2007 Gold Warehouse Stocks: | 7,366,099 | - | Silver Warehouse Stocks: | 134,532,526 | +596,734 |
Global Gold ETF Holdings [WGC Sponsored ETF’s] 
| Product name | Total Tonnes | Total Ounces | Total Value | New York Stock Exchange (NYSE) AND Singapore Exchange (SGX) | Streettracks Gold Shares | 614.67 | 19,762,146 | US$ 15,995m | London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 97.51 | 3,134,956 | US$ 2,528m | Australian Stock Exchange (ASX) | Gold Bullion Securities | 16.07 | 516,229 | US$ 416m | Johannesburg Securities Exchange (JSE) | New Gold Debentures | 20.29 | 652,191 | US$ 527m |
Note: Change in Total Tonnes from yesterday’s data: The NYSE/SGX added 12.3 tonnes to a new record high holding. COMEX Gold Trust (IAU) Profile as of 12/10/2007 | | Total Net Assets | $1,405,398,244 | Ounces of Gold
in Trust | 1,740,187.247 | Shares Outstanding | 17,600,000 | Tonnes of Gold
in Trust | 54.13 |
Note: No change in Total Tonnes from yesterday’s data. Silver Trust (SLV) Profile as of 12/10/2007 | | Total Net Assets | $2,111,178,813 | Ounces of Silver
in Trust | 146,833,360.500 | Shares Outstanding | 14,800,000 | Tonnes of Silver
in Trust | 4,567.03 |
Note: No change in Total Tonnes from yesterday’s data. The Stocks: Exeter’s (XRA) director death and drilling program, Almaden’s (AAU) updated resource, Alexco’s (AXU) flow-through private placement, Orezone’s (OZN) drill results, Pacific Rim’s (PMU) quarterly results, Kirkland’s (KGI.TO) drill results, Cardero’s (CDY) IP survey, and Minco’s (MSV.TO) increase in resources were among the big stories in the gold and silver mining industry making headlines today. WINNERS 1. Exeter | XRA +8.00% $5.40 | 2. Golden Star | GSS+3.17% $3.25 | 3. Taseko | TGB +2.77% $5.20 |
LOSERS 1. Solitario | XPL -8.86% $4.73 | 2. Entree | EGI -8.55% $2.46 | 3. Apex Silver | SIL -8.06% $16.08 |
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: Intrepid Market Update - More
- December 11, 2007 | Item | E-mail
Cartier Resources Inc.: Drilling Returns New Gold Zones on Kinojevis Property - More
- December 11, 2007 | Item | E-mail
Minera Andes announces drilling commences at Los Azules copper project - More
- December 11, 2007 | Item | E-mail
Taranis Intersects 5.07% Zn, 4.07% Pb, 0.26% Cu, 1.59 g/t Au and 296.12 g/t Ag over 1.95 m in Deep Drilling Under Great Northern Zone - More
- December 11, 2007 | Item | E-mail
Cadiscor Locks in IAMGOLD's Sleeping Giant Mine/Mill and Begins Underground Exploration - More
- December 11, 2007 | Item | E-mail
HudBay Plans $42.8 Million for 2008 Exploration - More
- December 11, 2007 | Item | E-mail
Stingray Copper Inc.: Positive Drill Results Continue to Define Oxide Copper Resource at El Pilar Property - More
- December 11, 2007 | Item | E-mail
Goldbelt Hits 43m @ 2.95 g/t Gold During Step-Out Drilling at the Kari Nord Project, SW Burkina Faso - More
- December 11, 2007 | Item | E-mail
Cardero Resource Corp.: Geophysical Survey Identifies Six New Targets at La Poma Silver-Lead Mine - "The six priority targets are not associated with exposed mineralization and were not known prior to completion of the IP survey. The results suggest that mineralization continues to a depth of at least 240 metres from surface in addition to extending the system a minimum of 500 metres to the west under younger cover sequences." More
- December 11, 2007 | Item | E-mail
Exeter Saddened by the Passing of Paul MacNeill - "The Board of Directors, management and staff of Exeter are greatly saddened by the death of Mr. Paul MacNeill on December 9, 2007. Paul served as a director of Exeter from its listing in 2003 providing valuable counsel on the strategic direction and governance of the Company. His availability to Exeter was total, a major benefit for management, given the growing pains of a rapidly emerging junior resource company. His firm, MacNeill Law, provided legal services to Exeter giving Paul further insight into our operations." More
- December 11, 2007 | Item | E-mail
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Gold Seeker Closing Report: Gold and Silver Gain Slightly Before Fed and Fall Over 1.5% After