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-- Posted Tuesday, 22 January 2008 | Digg This Article | Source: GoldSeek.com
| Close | Gain/Loss | Gold | $889.80 | +$7.90 | Silver | $16.02 | -$0.07 | XAU | 181.04 | +2.11% | HUI | 449.36 | +2.88% | GDM | 1363.11 | +2.17% | JSE Gold | 2503.43 | +86.08 | USD | 76.33 | -0.04 | Euro | 146.07 | -0.18 | Yen | 93.89 | +0.44 | Oil | $89.85 | -$0.72 | 10-Year | 3.484% | -0.164 | T-Bond | 120.78125 | +1.1875 | Dow | 11971.19 | -1.06% | Nasdaq | 2292.27 | -2.04% | S&P | 1310.50 | -1.11% |
The Metals:  Gold dropped all the way to as low as $849.22 in Asia, but it then steadily rallied back higher for the rest of trade in London and New York and ended about $5 off its $894.30 high of the session with a gain of 0.90% from last Friday’s close. Silver fell to as low as $15.19 before it rallied all the way to $16.18, but it then came back off slightly in the last two hours of trade and ended with a loss of 0.44%.
Euro gold rose to about €609, platinum gained $4 to $1548, palladium gained $5 to $368, and copper ended well off its early lows near $3 at about $3.23. Gold and silver equities fell over 4% at the open, but they quickly rallied back and found over 1% gains about an hour into trade and rose even further in afternoon trade to close with over 2% gains. The Economy: There were no major economic reports today, but a surprise inter-meeting fed funds rate cut certainly caught the attention of all on Wall Street. The 75 basis point cut to 3.5% is the largest cut since October 1984 and marks the first inter-meeting cut since the markets reopened following the 9-11 attacks on September 17th, 2001. William Poole was the lone dissenter in the fed’s decision to cut as he wanted to wait until the fed’s meeting next week which many speculate will bring another cut of at least 0.25%. The Bank of Canada also cut rates today, but only by 25 basis points at a scheduled meeting. Attention now turns to the Bank of England and the European Central Bank to see if they will follow suit with the fed in cutting rates. The ECB’s next meeting is not until February 4th and many are hoping for action before then. There are no major economic reports due out tomorrow. Today's Gold Seeker Report Is Sponsored By: 
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The Markets: 
Charts Courtesy of http://finance.yahoo.com/ Oil fell about $3 before it rebounded, but it still closed almost $1 lower as traders debated whether the fed’s cut will help energy demand or if it signifies a larger economic problem than previously thought. The U.S. dollar index fell and treasuries rose strongly in reaction to the fed’s move that dropped the yield on the 10-year to its lowest since 2003. The Dow plummeted 465 points at the open and the Nasdaq and S&P followed suit, but all three indices soon rallied off their early lows and ended with only about 1% losses on fears over a recession in the U.S. Among the big names making news in the market today were United Airlines, J&J, UnitedHealth, DuPont, CSX, Yahoo, Roche and Ventana, Bank of America, and Ambac. The Commentary:  “With the slashing of U.S. interest rates and perhaps a more vigorous package of stimulants from President Bush, the game has changed. At the Gold Forecaster we expect volatility as never before seen. We also expect growing turmoil in the global economy as the shifts in hot money and uncertainties we all now face disturb the financial world. After all these moves are not curative, they are defensive. They will not re-build confidence but are designed only to stop it falling further. How can gold not benefit from them?”- Julian D.W. Phillips, www.goldforecaster.com
 “Today is the first day a headline appeared on financial TV stating the "US budget deficit is about to BALLOON."
This is a key element of the Formula posted here on www.jsmineset.com. The Formula is based on almost 50 years of experience and upon what I place my reputation as the equation leading gold over $1000 and potentially to and through $1650. The derivative meltdown is the greatest risk any economy has faced since written history started in the Indus Valley prior to the arrival of Alexander the Great. Please protect yourself by completing the simple act of reducing financial agents between you and your assets as much as possible. Respectfully, Your watchman, Jim”- Jim Sinclair, JSMineset.com  “I'm traveling home today but wanted you to know that I covered my short positions on the U.S. markets in order to use the proceeds to buy more Northern Dynasty Minerals shares, call options and more Geologix Explorations. I still believe the U.S. stock market is going much, much lower over several years, but we're likely to see a big dead-cat bounce as early as today or by week's-end.
Gold is simply correcting another overbought condition and has $50 downside risk and $300 upside potential reward so I remain quite bullish.”- Peter Grandich, Grandich Letter  “February Gold finished up 8.6 at 890.3, 5.2 off the high and 26.3 up from the low.
March Silver closed down 0.11 at 16.105. This was 0.385 up from the low and 0.13 off the high. The gold market clearly outperformed the silver and platinum markets during the trade on Tuesday. Apparently the gold market was cheered on by an ongoing high level of anxiety, as gold managed to recover from early aggressive losses in the wake of a surprise 75 basis point rate cut from the US Federal Reserve and finished the day higher. Even more surprising is the fact that gold managed to bounce in the face of periodic strength in the US Dollar, even though some markets appeared to be pricing in another US move in next week's FOMC meeting. However, given the ongoing weak trend in equity prices and weakness in a host of outside physical commodity markets, it is clear that recession fears remain a key variable in the marketplace. The silver market started out under moderately aggressive selling pressure but did manage to get out from under part of that pressure as the session progressed. Certainly aggressive US rate cut action provided the silver market with hope that the US recession could be tempered or avoided. However, ongoing weakness in the US equity market seemed to leave silver, platinum and copper under a vulnerable cloud. In the end a portion of the silver trade continues to look to the direction in the stock market for guidance.”- The Hightower Report, Futures Analysis and Forecasting GATA Posts: 
Vancouver conference is a success for GATA Overseas Filipino workers told to shun dollars for pesos Wall Street Journal: The world melts for gold An invitation to GATA's conference in Washington Wall Street Journal agrees to print full-page ad from GATA The Australian sneers at central bank gold sales ... The Statistics: As of close of business: 1/18/2008 Gold Warehouse Stocks: | 7,491,724 | - | Silver Warehouse Stocks: | 129,453,342 | - |
Global Gold ETF Holdings [WGC Sponsored ETF’s]  | Product name | Total Tonnes | Total Ounces | Total Value | New York Stock Exchange Arca (NYSE Arca) AND Singapore Exchange (SGX) | StreetTRACKS Gold Shares | 622.76 | 20,022,387 | US$ 17,656m | London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 103.34 | 3,322,617 | US$ 2,958m | Australian Stock Exchange (ASX) | Gold Bullion Securities | 17.34 | 556,985 | US$ 496m | Johannesburg Securities Exchange (JSE) | New Gold Debentures | 25.93 | 833,566 | US$ 740m |
Note: Change in Total Tonnes from Friday’s data: StreetTRACKS subtracted 7.07 tonnes, the LSE added 2.32 tonnes, and the ASX subtracted at 0.72 tonnes. COMEX Gold Trust (IAU) Profile as of 1/18/2008 | | Total Net Assets | $1,640,773,120 | Ounces of Gold
in Trust | 1,863,176.220 | Shares Outstanding | 18,850,000 | Tonnes of Gold
in Trust | 57.95 |
Note: No change in Total Tonnes from yesterday’s data. Silver Trust (SLV) Profile as of 1/18/2008 | | Total Net Assets | $2,533,953,321 | Ounces of Silver
in Trust | 160,161,664.700 | Shares Outstanding | 16,150,000 | Tonnes of Silver
in Trust | 4,981.58 |
Note: No change in Total Tonnes from yesterday’s data. The Stocks: Goldcorp’s (GG) postponed strike, Royal Gold’s (RGLD) expanded board, Cardero’s (CDY) drilling, Silver Dragon’s (SDRG.OB) exploration results, and Arian Silver’s (AGQ.V) CFO change were among the big stories in the gold and silver mining industry making headlines today. WINNERS 1. Randgold | GOLD+6.35% $44.71 | 2. Barrick | ABX +6.10% $49.58 | 3. Agnico Eagle | AEM +6.06% $58.31 |
LOSERS 1. Cardero | CDY-13.38% $1.23 | 2. Entree | EGI -9.72% $1.95 | 3. Crystallex | KRY -8.61% $2.23 |
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: Alpha Gold Responds to Market Regulators - More
- January 22, 2008 | Item | E-mail
Pacific Cascade engages Coal Harbor Communications - More
- January 22, 2008 | Item | E-mail
Guyana Goldfields: Aurora Exploration Update-190m @ 5.09 g/t Au - More
- January 22, 2008 | Item | E-mail
MDN Inc.: The Isambara Shear Unveals More High-Grade Mineralization - More
- January 22, 2008 | Item | E-mail
Taranis Intersects 12.32% Zn, 3.57% Pb, 0.17% Cu, 1.09 g/t Au and 284.60 g/t Ag over 1.01 m in Great Northern Zone - More
- January 22, 2008 | Item | E-mail
Royal Gold Expands Board and Announces Election of William Hayes to Fill New Seat - "ROYAL GOLD, INC. (Nasdaq: RGLD - News; TSX: RGL - News), the leading precious metals royalty company, today announced the expansion of their Board of Directors from eight to nine members, and the election of William Hayes to fill the newly created position." More
- January 22, 2008 | Item | E-mail
Significant trench results up to 0.122% from Pipewrench Lake, Saskatchewan - More
- January 22, 2008 | Item | E-mail
Gravity West Resumes Drilling New Drake Hill Copper-Nickel-PGE Discovery at Voltaire Lake - More
- January 22, 2008 | Item | E-mail
Uranium Bay Obtains Up to 5,109 PPM U308 (10.2 Lbs / Ton) in Surface Samples and Identifies a Large Uraniferous Granitic Mass on the Lac Georges Property - More
- January 22, 2008 | Item | E-mail
Katanga and Nikanor Operations Integrated - More
- January 22, 2008 | Item | E-mail
Hawk's JV Partner-MacDonald Mines Exploration Ltd., Announces the Completion of the First Phase of Drill Program on the McNugget Property, McFaulds Lake Area - More
- January 22, 2008 | Item | E-mail | 
Gold Seeker Closing Report: Gold and Silver Rally Back Strongly From Earlier Losses After Fed Slashes Rates 0.75%