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-- Posted Tuesday, 29 April 2008 | Digg This Article | Source: GoldSeek.com

The Metals:

Gold remained near unchanged in Asia, but it then fell throughout most of trade in London and New York and ended near its low of $871.45 with a loss of 2.04%.  Silver fell to $16.44 by about 9AM EST in New York, but it then rallied nearly 1% from its low and ended with a loss of 2.64%.

Euro gold fell to about €562, platinum lost $42.50 to $1922, and copper fell a few cents to about $3.90.

Gold and silver equities fell throughout most of trade and ended with over 4% losses.

The Economy:

Also making economic news today was the Case-Shiller survey that said home prices fell 12.7% in February while foreclosures were also reported to have risen for the seventh straight quarter.  Tomorrow at 8:15AM EST is the ADP Employment report expected at -60,000.  At 8:30 is first quarter GDP expected at 0.5%, the Chain Deflator expected at 3.0%, and the Employment Cost Index expected at 0.8%.  At 9:45 is Chicago PMI for April expected at 47.5 and at 2:15 is the FOMC policy statement.

The Markets:

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

Oil fell 2.6% as a strike ended in the UK and the EIA reported that demand for February fell much more than the expected 2% at 7%.

The U.S. dollar index rose on hopes the fed will surprise the market and not cut interest rates tomorrow.

Treasuries rose on poor economic data that dragged the Dow, Nasdaq, and S&P lower for most of trade, but stock losses again pared to minimal by the close and the Nasdaq eked out a small gain in a repeat of yesterday’s performance.

Among the big names making news in the market today were Countrywide, Shell, BP, MasterCard, Corning, GMAC, ArvinMeritor, and Time Warner.

The Commentary:

“The following is what has pressured gold and caused short covering in the dollar/euro:

Media has convinced the public that the Fed will go hawkish, first by decelerating the drop in interest rates. The deceleration has been attributed to the Fed having done the right thing.

Media has convinced the public that the ECB will reduce interest rates now faster than the Fed, thereby boosting the dollar versus the euro.

Although the business statistics are negative, the media has held out the carrot that it takes six months for the Fed's action to materialize in the economy so all will be well in six to nine months.

The idea that the credit crisis is over is the message that firming financials are communicating as media supports that position.

Media has declared gold as DEAD.

90% of the above is raving BS. There is no way the Fed can go hawkish without causing, via the equity market, the revelation that nothing has changed for the better. There is no mention of the impact lower Federal Tax revenues will have on the US Federal Budget deficit and its negative weight on the dollar. There is no mention of the desire of many central banks to diversify out of the dollar when a short covering rally presents itself.

I feel whatever gold has to do on the downside will be covered by the end of the first week of May. I have written recently on junior gold shares which you can review by clicking here.”- Jim Sinclair, JSMineset.com

“June Gold finished down 18.7 at 876.8, 9.2 off the high and 2.8 up from the low.

May Silver closed down 0.473 at 16.54. This was 0.055 up from the low and 0.12 off the high.

The gold market came under moderately aggressive liquidation that seemed to be partly the result of ongoing strength in the Dollar. However, it is also possible that a moderately aggressive liquidation in the energy complex was the real culprit behind the washout in gold prices on Tuesday morning. In addition to renewed US recession concerns in the wake of lackluster US numbers, weakness in a host of physical commodity markets seemed to suggest that a liquidation wave in commodities similar to the washout waves seen in the month of March were present. In fact, seeing crude oil prices at times trading roughly $4.00 per barrel below their highs of the day suggests that something significant seems to have taken place. Perhaps the gold market was put under additional selling pressure because of concerns that the Wednesday US rate cut might be the last cut in the cycle.

Like the gold market, the silver market came under moderate selling pressure and that selling pressure seemed to be linked with overt weakness in a long list of physical commodity markets. In the end seeing significant weakness in crude oil and copper prices seemed to have an even more dramatic negative influence on silver prices. In retrospect, seeing news of rising silver production from a Canadian silver miner probably added to the washout but that issue appeared to be a secondary issue for the trade. With a higher Dollar, weaker oil and a weak US equity market, some traders suggested that silver saw a perfect wave of outside market negatives on Tuesday.”- The Hightower Report, Futures Analysis and Forecasting

GATA Posts:

Adrian Douglas: Novel analysis technique demonstrates gold price suppression

Bailout of Bear Stearns questioned by ex-Fed staffer

Al Korelin interviews speakers at GATA's Washington conference

James Turk: Inflation fears and food shortages

The Statistics:

As of close of business: 4/28/2008

Global Gold ETF Holdings

[WGC Sponsored ETF’s]

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

COMEX Gold Trust (IAU)

 Note: Change in Total Tonnes from yesterday’s data: 1.23 tonnes were removed from the trust.

Silver Trust (SLV)

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

The Stocks:

Gold Fields’ (GFI) fatal mine accidents, ITH’s (THM) drill results, Cardero’s (CDY) testing, Aurelian’s (ARU.TO) suspended drilling, Seabridge’s (SA) project description report, Keegan’s (KGN) drill results, Banro’s (BAA) drill results, Kirkland’s (KGI.TO) drill results, Anglo American’s (AAUK) mining rights, Penoles’ (PENOLES.MX ) share reaction, First Majestic’s (FR.TO) 1^st quarter production results, and Minco’s (MSV.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:

North American Palladium Releases Infill Drilling Results for Offset High Grade Zone - More
- April 29, 2008 | Item | E-mail

Iberian Minerals Corp.: Update on Aguas Tenidas Stockworks Drilling - More
- April 29, 2008 | Item | E-mail

Avalon Reports on Warren Township Anorthosite Project Furnace Trial - More
- April 29, 2008 | Item | E-mail

Pinnacle encouraged by positive surface sampling results - More
- April 29, 2008 | Item | E-mail

Ecuador mining freeze spurs Canada miner layoffs - "Aurelian Resources (ARU.TO: Quote, Profile, Research) said on Tuesday it has laid off most of its workers and suspended drilling activity in Ecuador, and other Canadian mining companies were mulling similar moves following the country's decision to freeze exploration and revoke mining concessions." More
- April 29, 2008 | Item | E-mail

Forsys Expands Uranium Zones at Valencia - More
- April 29, 2008 | Item | E-mail

Phoenix Matachewan Mines Inc.: Completes SIDEX Private Placement - More
- April 29, 2008 | Item | E-mail

Golden Dawn Acquires the Bonanza Gold Property in Timmins, Ontario - More
- April 29, 2008 | Item | E-mail

ITH Intersects New Zone of Mineralization at its North Bullfrog Project, Nevada - "International Tower Hill Mines Ltd. ("ITH" or the "Company") (CDNX:ITH.V - News)(AMEX:THM - News)(Frankfurt:IW9.F - News) is pleased to announce the results of initial drilling at Air Track Hill target in the north-western portion of the North Bullfrog Project. Eleven holes were completed at Air Track Hill to follow up on historical broad near-surface zones of gold mineralization (Table 1)." More
- April 29, 2008 | Item | E-mail

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