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-- Posted Thursday, 28 February 2008 | Digg This Article | Source: GoldSeek.com

The Metals:

Gold fell over $5 to as low as $952.97 by late trade in Asia, but it then rallied higher for most of the rest of trade in London and New York and set a new record intraday high of $967.10 before it came back off just slightly in the last couple hours of trade and ended with a gain of 0.70%.  Silver dropped to $19.03 before it rose to a new 27 year intraday high of $19.833 by early afternoon in New York and closed with a gain of 2.3%.

Euro gold fell back near €633 on continued remarkable euro strength, platinum gained $3.50 to $2132.50, and copper gained a few cents to about $3.87.

Gold and silver equities rose about 2% to new record intraday highs by midmorning before they fell back off a bit as the major indices fell over 1% by early afternoon, but the XAU, HUI, and GDM then rallied to new highs in the last couple hours of trade as gold and silver added on to their COMEX gains in after hours access trade and all three indices ended at new record highs.

At the time of writing (4PM EST) gold has risen to as high as $972.50 and silver has climbed back above $19.80 in after hours access trade.

The Economy:

Bernanke spoke before the senate banking committee today and commented that he thought there may be some bank failures coming.  He dismissed the idea that we are in a 70’s style stagflation and expected inflation to moderate and economic growth to return.

Tomorrow at 8:30AM EST brings Personal Income and Spending for January both expected at 0.2%, Core PCE Inflation expected at 0.3%, and Core PCE Prices expected at 0.2%.  At 9:45 is Chicago PMI for February expected at 49.5 and at 10AM is Michigan Sentiment for February expected at 70.0.

The Markets:

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

Oil rose about 3% to a new record high, heating oil rose to a new record high over $2.85, and natural gas rose over 4% to above $9.47 as natural gas stocks fell 151 billion cubic feet.  Continued cold weather in the US, a fire at a gas terminal in the UK, and a new attack in Nigeria that shut down production also added to the bullish energy case.

The U.S. dollar index fell to a new record low for the third straight session after more poor economic data and more dour testimony from Bernanke.

Treasuries rose as the Dow, Nasdaq, and S&P fell on more weak economic data, another new record low dollar, more new record highs for oil and gold, and Bernanke’s warning over possible bank failures.

Among the big names making news in the market today were Sprint, Freddie Mac, Sears, Thornburg, and Cablevision.

The Commentary:

“April Gold finished up 6.5 at 967.5, 2 off the high and 7.5 up from the low.

March Silver closed up 0.42 at 19.63. This was 0.37 up from the low and 0.15 off the high.

The gold market was modestly lifted Thursday by concerning dialogue from the US Federal Reserve Chairman. Surprisingly the gold market wasn't undermined by renewed talk of the IMF gold sales debate or as a result of softer than expected US economic data. With the IMF hinting at a spreading out of the recently discussed gold sale on Thursday, the gold market was clearly relieved that there would not be a surge in physical supply coming to the market. However, the gold market did seem to garner some support from the idea that the US Fed was probably poised for another interest rate cut. However, with another new all time high forged in the energy complex on Thursday afternoon and the Fed suggesting that the current inflation threat is more concerning than the price pressures facing the US economy in 2001, it is clear that inflation and flight to quality buying interest is surfacing from a number of angles. With the US Dollar also extending its initial downside slide in the afternoon trade on Thursday, it would seem like the markets are capable of pushing the Dollar lower without the benefit of scheduled data.

The silver market easily managed another new high for the move on Thursday and managed the gains off a series of outside market developments. In fact, the weak Dollar and surging gold prices seemed to be the primary forces driving silver up early in the session, but with energy prices gathering some upside momentum in the afternoon trade and the US equity market coming under more intense selling pressure, it is possible that safe haven or flight to quality speculation fueled some of the gains. One might even suggest that late strength in corn and soybean prices added into the bull's case in silver on Thursday.”- The Hightower Report, Futures Analysis and Forecasting

GATA Posts:

G7's readiness to 'stabilize' markets reiterated by Japanese official

Another public pension fund official recommends gold

Calpers approves big increase in commodity investments

Even Rhona O'Connell thinks IMF gold sales will mean little

Ron Paul shares the political wealth with like-minded candidates

Industrial, political pressure rises on ECB to weaken euro

Russia quietly starts to shift its oil trade into rubles

Asian central banks intervene to slow dollar's fall

The Statistics:

As of close of business: 2/27/2008

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: Change in Total Tonnes from yesterday’s data: 92.47 tonnes were added to the trust.

The Stocks:

Buenaventura’s (BVN) output loss due to a strike, Aurizon’s (AZK) drill results, IAMGOLD’s (IAG) project sale, Claude’s (CGR) exploration results, Rainy River’s (RR.V) initial resource estimate, Canyon’s (CAU) drill results, Crystallex’s (KRY) project update, Keegan’s (KGN) augur sample, Golden Star’s (GSS) updated reserves and resources and fourth quarter results, NovaGold’s (NG) delay in results, Coeur’s (CDE) exploration results, and Scorpio’s (SPM.TO) 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:

Blue Note Mining responds to charge of environmental breach - More
- February 28, 2008 | Item | E-mail

High American Gold Inc. Conditionally Settles Debt for Shares and Enters Into a Share Exchange Agreement - More
- February 28, 2008 | Item | E-mail

Wildwood Management Corp. Completes Agreement to Process Tailings on Pelcayo Tailings Properties in Bolivia - More
- February 28, 2008 | Item | E-mail

World Ventures Inc. - Private Placement Financing - More
- February 28, 2008 | Item | E-mail

Aurizon Reports Further Drilling Results at Joanna - "Aurizon Mines Ltd. (Toronto:ARZ.TO - News)(AMEX:AZK - News) is pleased to announce additional drilling results from the East block of its Joanna project, located 20 kilometres from Rouyn-Noranda, in north-western, Quebec." More
- February 28, 2008 | Item | E-mail

Nuinsco Resources Limited: Development in Ore Begins at Corner Bay Copper Project - More
- February 28, 2008 | Item | E-mail

International Wayside Gold Mines Ltd.-Drill Program Results: Replacement Style Mineralization Intersected - More
- February 28, 2008 | Item | E-mail

IAMGOLD Continues Rationalization of Exploration Portfolio - "IAMGOLD Corporation ("IAMGOLD" or "the Company") (Toronto:IMG.TO - News)(NYSE:IAG - News)(BOTSWANA: IAMGOLD) is pleased to announce the sale of its 34% interest in the Nyakafuru Project in Tanzania to Resolute Mining Ltd. ("Resolute"). The Nyakafuru Project is located approximately 120 kilometres from Resolute's Golden Pride Mine in Tanzania." More
- February 28, 2008 | Item | E-mail

Molycor Gold Corp.: Private Placement - More
- February 28, 2008 | Item | E-mail