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-- Posted Monday, 28 January 2008 | Digg This Article | Source: GoldSeek.com

The Metals:

After closing slightly above $910 on Friday, gold quickly moved to above $920 in Asia Monday morning before it dropped back to as low as $915.13 in London, but it then rose to new highs in New York and closed with a gain of 1.80% at a new record closing high after setting a new intraday record high of $929.45.  Silver rose to over $16.55 in Asia and fell to $16.33 in London, but it then made a new 27 year intraday high of $16.71 in New York and closed just a few cents off that high with a gain of 1.65%.

Euro gold rose to about €627, platinum gained $49 to $1721 to a new record high, palladium gained $5 to $385, and copper remained at about $3.22.

Gold and silver equities fell slightly in the first hour of trade along with the major indices, but they then steadily rose for most of the rest of trade and ended with about 1.5% gains.

The Economy:

New Home Sales fell 4.7% in December to a near 13-year low after November’s plunge and sales are down 40.7% compared to December 2006.  Tomorrow at 8:30AM EST brings Durable Goods Orders for December expected at 1.5% and at 10AM is Consumer Confidence for January expected at 87.0.

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 in early trade on worries about the economy and falling demand, but it rose to find a small gain by the close on hopes that the fed will cut interest rates by a large amount to help stimulate the economy.

The U.S. dollar index fell while treasuries and the Dow, Nasdaq, and S&P rose on rate cut hopes as New Home Sales disappointed yet again and made it more likely that the fed will be aggressive with their rate cut on Wednesday.  Fed fund futures currently expect about a 94% chance for a cut of 50 basis points.

Among the big names making news in the market today were CME and Nymex, McDonald’s, Countrywide, Sallie Mae, Verizon, Tyson, Alliance Data and Blackstone, Sears, and Corning.

The Commentary:

“February Gold finished up 16.4 at 927.1, 2.1 off the high and 9.9 up from the low.

March Silver closed up 0.26 at 16.75. This was 0.3 up from the low and 0.045 off the high.

Apparently the gold trade was unconcerned about the threat of too much slowing and instead was lifted by renewed weakness in the US Dollar. It also appeared as if the gold market was at least partially lifted by the US stock market’s ability to rally in the face of a much softer than expected US new home sales report. Some traders continued to suggest that South African production threats provided the trade with an ongoing lift and since the power problems in Africa remain in a state of flux it isn't surprising that the trade continues to play up that story. With the financial markets seemingly increasing the prospect of another aggressive US interest rate cut from the Fed it is possible that argument served to provide gold with support in the face of the US numbers.

The silver market managed to reach above the early January highs on Monday and seemed to be pulled higher by the persistent strength in the gold market. Certainly seeing the US stock market rally improves macro economic sentiment and that helped silver and a host of physical commodity markets get around the rather disappointing flow of scheduled US numbers. Furthermore, seeing copper and energy prices forge a definitive recovery rally also seemed to improve silver's fundamental posture.”- The Hightower Report, Futures Analysis and Forecasting

GATA Posts:

James Turk: More questions about the silver ETF

Peter Brimelow: Is gold ready for a 'rocket shot'?

Trading imaginary gold gets easier in gold-savvy Vietnam

Dollar peg pushes Saudi inflation above official interest rates

Emergency rate cut revives talk of 'Bernanke put'

South African miners in desperate talks over power crisis

James Turk: The 'real' gold price

The Statistics:

As of close of business: 1/25/2008

Global Gold ETF Holdings

[WGC Sponsored ETF’s]

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

COMEX Gold Trust (IAU)

Note: Change in Total Tonnes from yesterday’s data: 1.08 tonnes were added to the trust.

Silver Trust (SLV)

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

The Stocks:

Goldcorp’s (GG) company size, NovaGold’s (NG) development plan for the Galore Creek deposit, Gold Fields’ (GFI) power supply, Seabridge’s (SA) resource estimate, Paramount’s (PZG) drill results, Great Panther’s (GPR.TO) production, Golden Tag’s (GOG.V) and ECU’s (ECU.TO) technical report, and Apogee’s (APE.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:

Sino Gold - December 2007 Quarterly Report - More
- January 28, 2008 | Item | E-mail

Luna Gold intercepts 33.00 m of 2.46g/t Au from surface and 5.00 m of 6.26 g/t Au at the Aurizona Gold Project, Brazil - More
- January 28, 2008 | Item | E-mail

Size isn't everything, says Goldcorp's Telfer - "Bigger isn't necessarily better in the gold industry, said Goldcorp (G.TO: Quote, Profile, Research) Chairman Ian Telfer, whose deal-making vaulted the Canadian miner from mid-tier status to among the industry leaders in 2006.

Unlike the energy and base metals industries, gold mergers exceeding a certain value were unlikely to provide much benefit to shareholders, he said." More
- January 28, 2008 | Item | E-mail

Freegold Adds Strategic Land Holding to Golden Summit Project - More
- January 28, 2008 | Item | E-mail

EURO Ressources S.A. Further Reduction in Gold Hedge - More
- January 28, 2008 | Item | E-mail

Odyssey Announces Corporate Update - More
- January 28, 2008 | Item | E-mail

Century withdraws offer - More
- January 28, 2008 | Item | E-mail

Exploration Results at the Connaught Property - More
- January 28, 2008 | Item | E-mail

First Uranium's Ezulwini Mine Impacted by South African Power Cuts: Tailing Recovery Operation Unaffected - More
- January 28, 2008 | Item | E-mail

Tagish Lake - Corporate update - More
- January 28, 2008 | Item | E-mail

Black Pearl Receives NI 43-101 Report on Timmins Gold Property; - More
- January 28, 2008 | Item | E-mail

Endurance Gold Corporation retains Renmark Financial Communications Inc. - More