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-- Posted Monday, 3 March 2008 | Digg This Article | Source: GoldSeek.com

The Metals:

Gold climbed to as high as $989.55 by about 10AM EST in New York before it fell back off into the close, but it still ended with a gain of 0.97% at a new record high.  Silver climbed to as high as $20.608 before it also pared its gains in the last few hours of trade, but it still ended with a gain of 1.5% at a new 27 year high.

Euro gold rose to over €646, platinum gained $70.50 to $2228.50 to a new record high, and copper gained roughly 8 cents to about $3.93.

Gold and silver equities gained over 3.5% to new record intraday highs about an hour into trade before they cut into their gains a bit in late morning trade, but they still remained about 2.5% higher for the rest of the day and made new record closing highs with over 3% gains.

The Economy:

There are no major economic reports due out tomorrow.

The Markets:

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

Oil rose to a new record high of $103.95 on news that the US committed a strike against terror targets in Somalia and on speculation that OPEC may cut production.  It later cut into its gains on news that Nigeria would resume oil shipments, but it still ended with a decent gain and just 14 cents from its record closing high set last Thursday.

The U.S. dollar index fell to a 3-year low versus the yen and a new record low versus the euro on worries over more subprime related losses to be reported in the near future.

Treasuries fell after it became clear that the fed would not announce an emergency rate cut today as was rumored early in the session.

The Dow, Nasdaq, and S&P traded mostly lower and ended mixed and near unchanged on mixed economic data and worries over further writedowns to be announced this week.

Among the big names making news in the market today were Ford, United Technologies, Berkshire, MBIA, Ambac, and Bunge.

The Commentary:

“April Gold finished up 9.2 at 984.2, 7.8 off the high and 2.6 up from the low.

May Silver closed up 0.265 at 20.18. This was 0.01 up from the low and 0.52 off the high.

The gold market showed pretty volatile action on Monday, but it was clear that the bull camp was consistently in control of the action. Certainly the flight to quality argument was dominating trade sentiment with US financial market concerns front and center and seemingly disconcerting news from the inflation front. In fact, another new round of new all time highs in oil prices and very sharp gains in grain prices seemed to accentuate the inflation concerns, while more evidence of slowing in the US economy probably added to the interest in safe haven investments. As if the US financial travails weren't enough fodder for the bull camp in the gold market, the trade was also somewhat concerned about escalating geopolitical concerns as a result of Iranian sanctions talk. The geopolitical lift wasn't restricted to Iranian developments as the energy complex seemed to be concerned about a possible disruption of energy supply flow because of a flap that could eventually involve Ecuador, Colombia and Venezuela. With the platinum contract managing an $87 an ounce bounce off its early lows one could suggest that gold saw some additional speculative spillover buying from the platinum market.

The silver market managed another impressive pulse up on Monday as it mostly followed in the footsteps of the gold market. Certainly the silver market was also lifted by another sharp rise in energy prices and because of the weakness in the US Dollar. However, clearly the silver market was also benefiting from a series of flight to quality arguments stemming from both inflation and financial uncertainty. Apparently the sharp rise in silver futures prices is also being seen in silver mining shares and that would suggest that the buying interest is still fairly diversified and perhaps broad in scope. As mentioned in the mid day comments strength in copper prices seemed to add to the interest in the silver market despite some initial weakness in platinum prices. However, with the platinum market managing an explosive rally off its early lows into its close, it is likely that silver saw some spillover buying from that outside market.”- The Hightower Report, Futures Analysis and Forecasting

GATA Posts:

ECB chief prods U.S. about 'strong dollar' and Paulson duly squeaks up

Ambrose Evans-Pritchard: Fed's rescue attempt has failed

Gold beats other financial assets as investors seek haven

Peter Brimelow: Gold finishes a fabulous February

Gold upstream, poison downstream in Philippines' wild mining zone

As dollar falls, Israelis see virtues of their own currency

Dan Norcini: Looks like a commercial signal failure in silver

Dollar decline seen dominating markets in week ahead

'Strong dollar' Paulson would get rid of the penny

Toronto Globe and Mail highlights 'the new global gold rush'

IMF says any gold sales will only substitute for unsold central bank quotas

Fed officials say they'll act against inflation eventually

Commodity boom backfires on consumers

James Turk: Follow the trend

The Statistics:

As of close of business: 2/29/2008

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:

Nevsun’s (NSU) project update, Gammon Gold’s (GRS) drill results, Gold Fields’ (GFI) one million fatality-free shifts, Newmont’s (NEM) arbitration with Indonesia, Buenaventura’s (BVN) resumed operations, Agnico-Eagle’s (AEM) investment in Forum Uranium Corp., Golden Tag’s (GOG.V) and ECU’s (ECU.TO) drill results, SNS Silver’s (SNS.V) drilling, Endeavour’s (EXK) updated NI 43-101 reserve and resource estimates, Mines Management’s (MGN) operating permit, Excellon’s (EXN.TO) updated Mineral Resource estimate, and Arian Silver’s (AGQ.V) initial resource estimate 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:

Metco's Acquisition by Breakwater is Approved by Both Boards of Directors - More
- March 03, 2008 | Item | E-mail

Pan African Mining Corp. Identifies Seven New Nickel Laterite Targets in Madagascar - More
- March 03, 2008 | Item | E-mail

Gold Canyon Starts Winter Drill Program 2008 at Springpole - More
- March 03, 2008 | Item | E-mail

Zazu Metals Hires Matthew Ford as Vice President, Corporate Development - More
- March 03, 2008 | Item | E-mail

Oriel Resources Plc: Approach Received - More
- March 03, 2008 | Item | E-mail

Redcorp Ventures Ltd.: Receipt of Mines Act Permit and Licence to Cut Amendment-Tulsequah Chief Mine - More
- March 03, 2008 | Item | E-mail

VMS discovers 2.25% Copper, 3.17% Zinc and 1.39 g/t Gold over 51.98m (170.54 ft), including 8.49% Copper, 5.07% Zn and 4.91 g/t Gold over 4.57m (14.99 ft) - More
- March 03, 2008 | Item | E-mail

Genesis Uranium Corp. Set to Study Wollaston East Property Results - More
- March 03, 2008 | Item | E-mail

Eaglecrest Drills 9.65 Metres of 7.9 Grams Per Tonne Gold - More
- March 03, 2008 |