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-- Posted Wednesday, 27 February 2008 | Digg This Article | Source: GoldSeek.com

The Metals:

Gold rose to as high as $963.10 by late trade in Asia before it fell to see only about a 0.5% gain at $951.95 by late morning in New York, but it the rallied back higher for most of the rest of trade and ended with a gain of 1.3% at a new record high.  Silver rose to a new 27 year intraday high of $19.465 in London before it dropped to $18.90 by late morning in New York, but it also rallied back higher in the last couple of hours of trade and ended with a gain of 2.6% at a new 27 year closing high.

Euro gold rose to €634, platinum lost $1 to $2129, and copper rose nearly 6 cents to about $3.84.

Gold and silver equities (the XAU and HUI) rose over 3% to new record intraday highs before they fell back off a bit in the last few hours of trade along with the major indices, but they still ended with over 2% gains at new record closing highs.  The GDM closed less 1% away from a new high.

The Economy:

Bernanke stated in his testimony before congress today that the economic situation has become distinctly less favorable and that was interpreted by many to mean that the fed will almost certainly be cutting rates by another 50 basis points at their next meeting on March 18^th.

The Markets:

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

After hitting a new record high of $102.08 overnight, oil fell back below $100 in New York after inventory reports came in better than expected.  Crude inventories built 3.2 million barrels, gasoline inventories built 2.7 million barrels, and distillates fell 2.5 million barrels.  Refinery runs also rose a better than expected 1.2% to 84.7%.

The U.S. dollar index fell markedly to another new record low as more poor economic data and dovish Bernanke testimony indicated that the fed will continue to cut interest rates.

Treasuries fell midday despite another round of worse than expected economic data as the Dow, Nasdaq, and S&P rose after OFHEO raised mortgage portfolio limits for Fannie and Freddie to ease liquidity concerns and Bernanke reassured Wall Street that the fed will remain vigilant about a weakened economy, but that was not enough to overcome stagflationary worries by the end of the day as bonds ended slightly higher and equities ended mixed and near unchanged.

Among the big names making news in the market today were Fannie Mae and Freddie Mac, Harrah’s, Microsoft, Toll Brothers, and Moody’s, S&P, and MBIA.

The Commentary:

“April Gold finished up 12.1 at 961, 3 off the high and 7 up from the low.

March Silver closed up 0.49 at 19.21. This was 0.31 up from the low and 0.13 off the high.

The gold market started out on a positive note Wednesday morning, sagged into the first set of US economic data and then recovered sharply just ahead of mid session. It is possible that news of changes to Fannie Mae and Freddie Mac temporarily deflated financial concerns and that was probably responsible for the early morning correction in gold. In the end, the gold market was able to discount the threat of too much slowing from the numbers and instead managed to benefit from ongoing noted weakness in the US Dollar. Apparently some players also saw the US Federal Reserve Chairman testimony as a development that facilitated flight to quality or safe haven buying of gold. However, the gold bulls were able to discount a setback in energy and equity prices and that would seem to suggest that the bull camp in gold was embracing a number of themes. It probably goes without saying that fund buying interest contributed to the gains in gold on Wednesday, especially since the US Dollar at times appeared to be in a virtual freefall.

Like the gold market, the silver market started out firm Wednesday, saw a minor correction in the wake of scheduled US data but then managed to regain its footing and climb back above the $19.00 level prior to mid session. However, even more impressive is the fact that March silver remained firm into the afternoon trade despite an early afternoon correction in oil and equity prices. Surprisingly weakness in platinum prices throughout the trading session Wednesday didn't seem to discourage the buyers of silver.”- The Hightower Report, Futures Analysis and Forecasting

GATA Posts:

Fed chairman signals another interest rate cute

Greenspan tells Gulf oil producers to dump the dollar

Please don't expect sustained inflation, Bank of England deputy wimpers

Ted Butler: The real deal

Fed's vice chairman expects recession to quell inflation

The Statistics:

As of close of business: 2/26/2008

Global Gold ETF Holdings

[WGC Sponsored ETF’s]

Note: Change in Total Tonnes from yesterday’s data: The ASX added 0.05 tonnes.

COMEX Gold Trust (IAU)

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

Silver Trust (SLV)

Note: Change in Total Tonnes from yesterday’s data: 123.3 tonnes were added to the trust.

The Stocks:

AngloGold’s (AU) hedge book, Goldcorp’s (GG) and Barrick’s (ABX) Pueblo Viejo Project, Buenaventura’s (BVN) labor strike, Newmont’s (NEM) near agreement with Indonesia, Silver Standard’s (SSRI) closed note sale, Minefinders’ (MFN) drill results, Metalline’s (MMG) silver assays, and Orko Silver’s (OK.V) assay 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:

Polar Star Options Yoanca Property in Chile - More
- February 27, 2008 | Item | E-mail

StrataGold announces drill contract for Dublin Gulch, Yukon - More
- February 27, 2008 | Item | E-mail

Spruce Ridge Intersects 1.3 metres of 8.07 g/t Au at Nora Lake - More
- February 27, 2008 | Item | E-mail

UC Resources McFaulds Lake Update - More
- February 27, 2008 | Item | E-mail

Fission Energy Announces Encouraging 2007 Waterbury Lake Drill Results-0.10% U3O8 Intersected Over 3.6m Including 0.30% U3O8 Over 1.1 Meters - More
- February 27, 2008 | Item | E-mail

Amarc Appoints Vice President Corporate Development - More
- February 27, 2008 | Item | E-mail

Moydow Announces Update on Activities - More
- February 27, 2008 | Item | E-mail

MDN Purchases Two Properties in the Chibougamau Area From DIAGNOS - More
- February 27, 2008 | Item | E-mail

Los Andes Copper Intersects 0.41% Cu Over 432 Metres - More
- February 27, 2008 | Item | E-mail

DIAGNOS Announces the Sale of Two Base Metals Properties in Chibougamau to MDN Inc. - More
- February 27, 2008 | Item | E-mail

Puma Exploration : 1 Million Ounces of Silver in the Hache Lens (NI 43-101 Compliant) - More
- February 27, 2008 | Item | E-mail

Blue Sky and Eagle Plains to Drill Saskatchewan Uranium Projects - More
- February 27, 2008 | Item