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-- Posted Wednesday, 23 January 2008 | Digg This Article | Source: GoldSeek.com

The Metals:

Gold remained near unchanged in Asia and London before it dipped to $876.85 in early New York trade and then spiked higher after 9AM EST to as high as $895.65 by about 10:15, but it then fell back off into the close and ended with a loss of 0.56%.  Silver fell to $15.689 before it spiked to find nearly a 1% gain at $16.167, but it also fell back off into the close and ended with a loss of 1.37%.  At the time of writing both metals have roughly erased the day’s losses in after hours access trade.

Euro gold fell to about €605, platinum gained $2 to $1550, palladium lost $4 to $364, and copper fell over 10 cents to about $3.12.

Gold and silver equities fell over 6% by early afternoon before they rebounded into the close, but they still ended with over 2% losses.

The Economy:

There were no major economic reports today.  Tomorrow at 8:30AM EST brings Initial Jobless Claims for 1/19 expected at 320,000 and at 10AM is the Existing Home Sales report for December expected at 4.95 million.

The Markets:

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

Oil fell to as low $86.65 and closed over 2% lower at a 3 month low on fears that a recession will cut into demand.

The U.S. dollar index ended slightly lower as traders debated future action from the fed and European Central Banks.

Treasuries rose markedly in early trade as the yield on the 10-year fell all the way to 3.281% to a new 4 and ½ year low, but gains were more than cut in half by the close as stocks rebounded in late trade and pulled money out of bonds.

The Dow fell over 300 points by early afternoon and the Nasdaq and S&P saw notable losses as well, but all three indices then rallied back higher in the last two hours of trade and ended with nice gains on hopes for a rescue of some sort of the mortgage companies.

Among the big names making news in the market today were Apple, Pfizer, ConocoPhillips, Motorola, Coach, and Southwest Air.

The Commentary:

“February Gold finished down 7.2 at 883.1, 12.9 off the high and 6.1 up from the low.

March Silver closed down 0.135 at 15.97. This was 0.17 up from the low and 0.24 off the high.

The gold market did manage to reject an initial washout early in the session but the recovery effort only lasted a couple of hours before prices began to soften again in early afternoon trade. Apparently gold wasn't being seen as a flight to quality instrument in the face of the most recent washout in equity prices. Generally higher US Dollar action throughout the trading session seemed to undermine gold which also seemed to be knocked off balance by severe slowing concerns. With oil prices under ongoing pressure, copper prices weak and even the grain markets under significant pressure, it is likely that outside market deflationary pressures were prompting some of the selling interest in gold on Wednesday afternoon.

Silver prices mostly tracked in sync with gold during the action Wednesday but overall silver seemed to hold an even tighter correlation with copper, platinum and oil prices. In the face of historic losses in equity prices and concerns of significant economic slowing it really isn't that surprising to see silver prices faltering and in effect waffling around within a wide trading range. News of a rise in silver exchange stocks and evidence of another slide in Japanese silver imports on Wednesday could have also added some additional pressure to silver prices during today's trading session.”- The Hightower Report, Futures Analysis and Forecasting

The Statistics:

As of close of business: 1/22/2008

Global Gold ETF Holdings

[WGC Sponsored ETF’s]

Note: No change in Total Tonnes from yesterday’s data.

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:

Pacific Rim’s (PMU) surface trenching, Midway’s (MDW) increased resources, Freeport-McMoRan’s (FCX) fourth quarter results, Yamana’s (AUY) feasibility study, Kinross Gold’s (KGC) $400 million offering of convertible notes, Lihir’s (LIHR) reopened mine, MAG’s (MVG) exploration update, Silvermex’s (SMR.V) drilling, Aquiline’s (AQI.TO) metallurgical results, Pan American’s (PAAS) increased silver output, and Silverstone’s (SST.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:

Goldcrest Restates Interim Consolidated Financial Statements for the Quarter Ended September 30, 2007 - More
- January 23, 2008 | Item | E-mail

Nuinsco Commits to Further Drilling at Prairie Lake Uranium Property - More
- January 23, 2008 | Item | E-mail

Yamana Gold plans $139 million Brazil expansion - "Yamana Gold (YRI.TO: Quote, Profile, Research) will spend $139 million to build a new 103,000 ounce-per-year mine in Brazil, and hopes to sell sulfuric acid in the country by 2011, the gold miner said on Wednesday.

Toronto-based Yamana, which last year acquired low-cost producer Meridian Gold and smaller Northern Orion Resources, said it expects to average 103,000 ounces annually from its Santa Luz mine starting in 2010, part of a plan to nearly triple the company's production between 2007 and 2012." More
- January 23, 2008 | Item | E-mail

International Kirkland Minerals Inc.: Company Initiates 2008 Drilling at Rupert Uranium Property - More
- January 23, 2008 | Item | E-mail

Freeport-McMoRan's quarterly profit dips - "Freeport-McMoRan Copper & Gold Inc (FCX.N: Quote, Profile, Research) said on Wednesday quarterly profit fell slightly as rising costs erased gains from sharply higher copper output and prices, sending its shares tumbling more than 13 percent." More
- January 23, 2008 | Item | E-mail

Sulliden Directors recommend shareholders reject the offer from Century Mining - More
- January 23, 2008 | Item | E-mail

Great Bear Uranium and Fission Energy Commence Drilling at Duddridge Lake Uranium Project, Saskatchewan - More
- January 23, 2008 | Item | E-mail

Merrex Options Sand Brook Gold Prospect - More
- January 23, 2008 | Item | E-mail

Gryphon Gold Outlines Plans for Properties Held by Nevada Eagle Resources - More
- January 23, 2008 | Item | E-mail

Globex's Magusi Deposit Bulk Sampling Permit Application - More
- January 23, 2008 | Item | E-mail

Amerix Announces That Drilling Resumes at Ouro Roxo and Grants Options - More
- January 23, 2008 | Item | E-mail

Geoinformatics Makes New Molybdenum Discovery in British Columbia - More
- January 23, 2008 | Item | E-mail

Mining law rewrite faces uphill battle in Senate - "A bill passed by the House of Representatives last year that would impose stiff new royalties on hardrock mining companies will likely be toned down by the Senate, where pro-mining lawmakers hold more sway." More
- January 23, 2008 | Item | E-mail

Pacific Rim Mining Corp.: Surface Trenching at Santa Rita Project Reveals High Grade Gold Over Wide Vein Widths - "Surface trenching and sampling at Pacific Rim Mining Corp.'s ("Pacific Rim" or "the Company") (Toronto:PMU.TO - News)(AMEX:PMU - News) Santa Rita gold project in El Salvador has revealed bonanza gold grades in the southern portion of the Trinidad vein across significantly wider surface vein widths than previously encountered. Assay composite results for each trench are presented below." More
- January 23, 2008 | Item | E-mail

Frank Davis Appointed to the FNX Board - More
- January 23, 2008 | Item | E-mail

Mirabela Nickel Limited - Further details of Santa Rita proven and probable reserve - More
- January 23, 2008 | Item | E-mail

Mega Uranium Intersects 140 Metres of 0.042% U3O8 and 0.76% Copper at Igor, Including 76 Metres of 0.417% U3O8 and 7.37% Copper - More
- January 23, 2008 | Item | E-mail