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-- Posted Monday, 10 March 2008 | Digg This Article | Source: GoldSeek.com

The Metals:

Gold rose to $980.60 by late trade in Asia before it fall to as low as $960.90 by about 10AM EST in New York, but it then rallied back higher into the close and ended with a loss of just 0.23%.  Silver rose to $20.392 by late trade in Asia before it fall to as low as $19.188 by about 8:30AM EST in New York, but it also rallied back higher into the close and ended nearly 50 cents off its low with a loss of 2.3%. 

Euro gold fell to about €633, platinum gained $16 to $2036, and copper fell over 12 cents to about $3.80.

Gold and silver equities fell over 3% by late morning and remained near their lows into the close despite the rebound in the metals as the major indices fell over 1% again and dragged everything lower.

The Economy:

The fed offered $50 billion in 28 day loans through today’s Term Auction Facility.  Tomorrow at 8:30AM EST brings the Trade Balance for January expected at -$59.0 billion.

The Markets:

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

Oil rose throughout trade and gained nearly 3% to a new all time high on rising demand out of China as a weak dollar continues to encourage traders to accumulate commodities.

The U.S. dollar index reversed early gains and ended lower as European Central Bank President Jean-Claude Trichet’s worry over the recent volatility in foreign exchange markets was overcome by strong economic data out of Japan and Germany and more financial worries in the US.

Treasuries rose markedly as traders are now pricing in a 100% chance of a cut of 75 basis points by the end of the fed’s meeting next Tuesday and a further 20% chance of 100 basis points as the market continues to deal with financial problems.

The Dow, Nasdaq, and S&P fell on rumors of liquidity problems at Bear Stearns that were later denied, but financial stocks still lead the way lower on worries over margin calls and counterparty risk.

Among the big names making news in the market today were Bear Stearns, Vail Resorts, McDonald’s, Microsoft, and Blackstone.

The Commentary:

“April Gold finished down 2.4 at 971.8, 3.7 off the high and 9.3 up from the low.

May Silver closed down 0.465 at 19.785. This was 0.415 up from the low and 0.185 off the high.

The gold market started out weak and managed an early morning bounce but then faded into mid session and the early afternoon trade. Perhaps a minor Dollar bounce served to keep the gold market off balance or it is also possible that residual weakness in the US equity market discouraged the gold bulls. Certainly resurgent oil prices provided gold with its initial bounce on Monday morning but lingering concerns of recession simply seemed to keep a number of physical commodity markets like gold, silver and copper off balance. However, seeing crude oil prices rise to another new all time high in a move that seemed to signal stagflation might have confused the gold trade.

Like the gold market, the silver market seemed to be at least slightly undermined by lingering macro economic slowing fears in the US and with the overt ongoing weakness in the US equity market the fear of sagging demand for commodities was not to be dismissed during the trade on Monday. With platinum and copper prices off sharply on the day and a host of other physical commodity markets remaining under pressure it would appear as if recession views were trumping the potentially supportive action in the energy complex.”- The Hightower Report, Futures Analysis and Forecasting

GATA Posts:

James Turk: A record new low for the dollar

Downturn tests Fed's ability to avert a crisis

Gene Arensberg: Commercial gold and silver traders duck and cover

David Morgan: Is silver the sleeper?

Dan Norcini: Silver longs again failed to go in for the kill

Wall Street banks face 'systemic margin call,' Morgan warns

Interest rate rift resembles one that led to 1987 market crash

Bad credit? No credit? Just call Fast Bennie at 202-775-0946

IMF reform is a serious hurdle to gold sales

The Statistics:

As of close of business: 3/7/2008

Global Gold ETF Holdings

[WGC Sponsored ETF’s]

Note: Change in Total Tonnes from yesterday’s data: The LSE added 0.46 tonnes.

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:

Allied Nevada’s (ANV) 2007 financial results and proposed bridge credit facility, International Royalty’s (ROY) terminated letter of intent, Aurelian’s (ARU.TO) new board members, Minco Gold’s (MGH) assay results, Great Basin’s (GBN) regulatory approvals, Seabridge Gold’s (SA) economic assessment, Western Goldfields’ (WGW) 2007 year-end results, Fortuna’s (FVI.V) drill results, Excellon’s (EXN.V) second quarter loss, Silver Standard’s (SSRI) 2007 year-end results, and Arian Silver’s (AGQ.V) 43-101 mineral 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:

Allied Nevada Reports 2007 Financial Results and Proposed CDN$30 Million Bridge Credit Facility - "Allied Nevada reported a consolidated net loss in 2007 of $11,265,000 compared to a consolidated net loss of $2,465,000 in 2006. The increase in the consolidated net loss of $8,800,000 is largely due to an increase of $4,643,000 in exploration, property evaluation and holding costs, an increase of $3,682,000 in corporate administration and investor relations costs, and the recognition of an impairment loss of $678,000 on its mineral properties partially offset by an increase of $457,000 in interest and other income." More
- March 10, 2008 | Item | E-mail

Osisko Signs $20 Million Unsecured Debt Financing - More
- March 10, 2008 | Item | E-mail

Orebodies Announces Acquisition of Coral Rapids Project, Hawkins Project, and Webequie Area Projects Pursuant to Baltic Arrangement - More
- March 10, 2008 | Item | E-mail

Mokambo Project Sulphide Drill Program has commenced - More
- March 10, 2008 | Item | E-mail

Anglo Pacific Group to Provide $7.5M to Kinbauri in Exchange for Net Smelter Return at El Valle/Carles - More
- March 10, 2008 | Item | E-mail

Randsburg increases interest to 75% in the Empire Project (Idaho) - More
- March 10, 2008 | Item | E-mail

Western Troy Announces Positive Results of MacLeod Lake Preliminary Assessment (Scoping Study) - More
- March 10, 2008 | Item | E-mail

Geoinformatics Extends Recent Los Laureles Discovery in Mexico - More
- March 10, 2008 | Item | E-mail

Cartier Focuses Drilling on MacCormack Gold Prospect - More
- March 10, 2008 | Item | E-mail

Bulgaria and DPM Agree-in-Principle to New Royalty and Public Private Partnership for New Chelopech Smelter - More
- March 10, 2008 | Item | E-mail

Norsemont Mining Appoints Ian Hume to Board of Directors - More
- March 10, 2008 | Item | E-mail

International Royalty terminates letter of intent on Limpopo Royalties - "International Royalty Corporation (AMEX: ROY, TSX: IRC) (the "Company"or "IRC") reports it has terminated the letter of intent on the Limpopo PGM Royalties that the Company had entered into on May 15, 2007. After conducting due diligence and working with the seller, IRC has not been able to resolve certain issues related to the royalties and has made the decision not to close on the acquisition." More
- March 10, 2008 | Item | E-mail </