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-- Posted Tuesday, 11 March 2008 | Digg This Article | Source: GoldSeek.com

The Metals:

Gold rose to as high as $985.55 in London before it dropped to as low as $964.57 by about 10:30AM EST in New York, but it then rallied back higher into the close and ended with a gain of 0.42%.  Silver climbed to $20.29 and fell to $19.33 before it also rallied back higher into the close, but it still ended with a small loss of 0.2%.

Euro gold rose to about €635, platinum gained $14 to $2050, and copper remained at about $3.80.

Gold and silver equities steadily rose throughout trade along with the major indices and ended with about 4-5% gains.

European signatories report 3.3 tonnes in gold sales last week - Resource Investor

The Economy:

The fed announced a plan to lend up to $200 billion in Treasury securities to primary dealers and allow them to use their agency and mortgage debt as collateral in an effort to increase liquidity and ease financial problems.  This eased worries over counterparty risk and also reduced expectations for a dramatic cut in the fed funds rate at the fed’s meeting next Tuesday.

Tomorrow at 2PM EST brings the Treasury Budget for February expected t -$170.0 billion.

The Markets:

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

Oil rose to a new record intraday high of $109.72 before it fell back off on reduced consumption forecasts from the Energy Department and the International Energy Agency, but it still ended with a decent gain and ended at a new record closing high as funds continue to put money into commodities.

The U.S. dollar index rose, treasuries fell, and the Dow, Nasdaq, and S&P found impressive gains on the fed’s plan to intervene in the markets in a meaningful way and effectively provide a market for mortgage backed securities.

Among the big names making news in the market today were Amgen, J&J, Thornburg Mortgage, and Boeing.

The Commentary:

“The Federal Reserve action today formalizes what has been the policy of the Fed from almost day one of the visibility of the credit and default derivative meltdown and credit market lockup.

What is occurring is THE MONETIZATION OF BANKRUPTCY.

The predictable result of monetizing bankruptcy is a significant increase in inflation and a sharply lower dollar.

The result of a sharply lower dollar is sharply higher gold regardless of the dress up process being applied to the US dollar and gold today. The dress up is to prevent a stinging rebuff for the Federal Reserve paying a FARCE price for bankrupt derivative packages purely to keep the banks that are almost all on the edge solvent.”- Jim Sinclair, More free commentary at JSMineset.com

“April Gold finished up 4.2 at 976, 9.9 off the high and 9 up from the low.

May Silver closed down 0.022 at 19.763. This was 0.323 up from the low and 0.557 off the high.

The gold market flopped around on both sides of unchanged throughout the session. Two things combined to knock gold off its early rally, with a better than expected US trade deficit reading and some credit market confidence from term auctions serving to undermine gold prices. Seeing the trade balance contract for the 2nd month in a row and central bank efforts to calm credit market problems seemed to reduce flight to safety demand for gold. It also appeared as if the bounce in the US Dollar prompted profit taking in gold. Surprisingly, another new all time high in crude oil prices failed to give gold lasting support.

The silver market diverged with the gold trade early in the session and spent most of the session trading relatively weaker than gold. Apparently, a slight upward adjustment in economic sentiment and a pulse up in US equity prices failed to lift silver prices. Copper's inability to hold its early gains also seemed to prompt profit taking in silver.”- The Hightower Report, Futures Analysis and Forecasting

GATA Posts:

U.S. Treasuries riskier than German debt, default swaps say

Sovereign funds soon may surpass official foreign reserves

Fed joins three other central banks with $200 billion more in lending

Gold council will list ETF in Asia, make Barrick CEO chairman

Panic in market on fear of insolvency at Bear Stearns, Fannie Mae

Sprott sees financial turmoil pushing gold to $2,000

If the central banks don't get us, the 'death star' still might

Emergency interest rate cut possible, Goldman Sachs says

Billionaire investor Ross sees bank failures ahead

The Statistics:

As of close of business: 3/10/2008

Global Gold ETF Holdings

[WGC Sponsored ETF’s]

Note: Change in Total Tonnes from yesterday’s data: StreetTRACKS added 7.37 tonnes to a new record high holding and the JSE added 0.36 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:

Yamana’s (AUY) possible dividend, Cardero’s (CDY) magnetic separator, Gammon Gold’s (GRS) operational indicators, Pacific Rim’s (PMU) third quarter results, Nevsun’s (NSU) project incident, Midway’s (MDW) land expansions, Goldcorp’s (GG) gold price outlook, U.S. Silver’s (USA.V) Corporate Development Award and exploration results, Coeur’s (CDE) director appointment, and Silver Standard’s (SSRI) resource increase 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:

International Kirkland ("IKI") Options the Cosby Gold Property, Ontario - More
- March 11, 2008 | Item | E-mail

International KRL Resources to begin drilling Ag-Pb-Zn target - More
- March 11, 2008 | Item | E-mail

Stingray Copper Inc.: Confirmation of Oxide Copper Results Continues at El Pilar, Mexico - More
- March 11, 2008 | Item | E-mail

YSV Ventures Inc. and District Gold Inc.: Press Release - More
- March 11, 2008 | Item | E-mail

Aurora Energy Resources Inc.: Nunatsiavut Government Considers Proposed Changes to Uranium Mining on Labrador Inuit Lands - More
- March 11, 2008 | Item | E-mail

Osisko Creates a Sustainable Development Fund for the Town of Malartic - More
- March 11, 2008 | Item | E-mail

Golden Band Resources Inc. - Preliminary Assay Results From 2008 Decade Gold Mine Drilling - More
- March 11, 2008 | Item | E-mail

North American Gem Inc. Increases Land Holdings at the Louise Lake Project, British Columbia - More
- March 11, 2008 | Item | E-mail

Cardero Announces Delivery and Installation of the Eriez Dry Magnetic Separator at the Pampa El Toro Iron Sands Project, Peru - "Cardero Resource Corp. ("Cardero" or the "Company") (Toronto:CDU.TO - News)(AMEX:CDY - News)(Frankfurt:CR5.F - News) is pleased to announce delivery and installation of the Eriez Dry Magnetic Separator for the Pampa El Toro Iron Sands Project, Peru. The magnetic separator has been installed at the Company's custom built testing facility. Processing of the run-of-mine ("ROM") sand is expected to commence in mid March." More
- March 11, 2008 | Item | E-mail

Nethery Appointed to Kinbauri's Advisory Board - More
- March 11, 2008 | Item | E-mail

Taranis Updates Nevada Exploration Activities - More
- March 11, 2008 |