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-- Posted Tuesday, 27 May 2008 | Digg This Article | Source: GoldSeek.com

The Metals:

Gold rose a few dollars to as high as $929.15 by late trade in Asia and held near $925 in London before it plunged over 2% in early New York trade to as low as $904.00 by about 10AM EST, but it then bounced higher into the close and ended four dollars off that low with a loss of 1.92%.  Silver rose to $18.31 and plummeted to $17.37 before it closed with a loss of 4.39%.

Euro gold fell to about €577, platinum lost $43.50 to $2123, and copper fell slightly to about $3.74.

Gold and silver equities fell about 3% at the open and remained near their lows into the close.

The Economy:

Also making economic news today was the Standard & Poor's/Case Shiller composite index of 20 metropolitan areas that fell 2.2% in March from February and plummeted a record 14.4% from a year ago.  Tomorrow at 8:30AM EST brings Durable Goods Orders for April expected at -1.5%.

The Markets:

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

Oil fell on worries that recent high prices may finally be starting to cut into demand.  Supply concerns in Nigeria and Mexico seemed to have little impact on the market.

The U.S. dollar index rose and treasuries fell as a better than expected US New Home Sales report and a weaker than expected German confidence report pushed US interest rates higher.

The Dow, Nasdaq, and S&P mostly rose on optimism over the housing sector and lower energy prices.

Among the big names making news in the market today were Lehman, Goldman Sachs, Morgan, Bank of America, and GM.

The Commentary:

“Dear CIGAs,

The following is a classic statement. I just heard a talking head say that he agrees with the Bernanke approach:

"If you can control inflationary expectations, you can control inflation."

Translation: If you lie your butt off, issue skewed statistics and do it all at once as a choir singing a single note, all will be ok.

In the last 10 business days CEOs of the following companies have declared the credit problem solved:

Citigroup.

Goldman Sachs.

JP Morgan.

Lehman.

Merrill Lynch.

Morgan Stanley.

And, of course, Secretary of the US Treasury Henry Paulson has declared the credit problems under control.

My answer:

Monetary inflation leads to Price inflation which is a Consequence that cannot be stopped by lying. Consequences are unavoidable.”- Jim Sinclair, JSMineset.com

“June Gold finished down 17.9 at 907.9, 14.1 off the high and 3.1 up from the low.

July Silver closed down 0.825 at 17.465. This was 0.015 up from the low and 0.705 off the high.

The gold market started out soft and then came under more intense liquidation pressure as the session unfolded. While the Dollar didn't exactly explode on the upside, the gold trade seemed to be disappointed in the Dollar's capacity to bounce after another failed attempt to trade under 72.00. With oil prices under pressure and the US equity market at times showing impressive strength, it is possible that some flight to quality/safe Haven buyers of gold were simply pushed to the sidelines. With a host of scheduled US data showing weakness on Tuesday morning and the European numbers also soft, it would almost seem like the gold market was under pressure because of the fear of too much slowing. Apparently the rise in US new home sales was discounted as an anomaly, as the gold trade instead seemed to embrace the weak US consumer sentiment readings and the slack regional Fed survey figures.

With weakness in gold prices and a rise in the Dollar, the silver bears seemed to have the edge for most of the trading session. With oil prices also under periodic aggressive selling pressure it seemed as if a host of physical commodity markets were falling from favor. Some traders suggested that recent positioning reports rekindled concern of long liquidation and with silver failing a series of classic chart support points, it is possible that stop loss selling contributed to the washout in silver prices on Tuesday.”- The Hightower Report, Futures Analysis and Forecasting

GATA Posts:

LIBOR cracks widen as bankers struggle with reforms

Investors bet Persian Gulf will loosen dollar pegs

As if you can't 'mingle with criminals' at a bank ...

Germany joins call for ban on speculation in oil

'Virtual hoarding' by investors is monetizing oil

The Statistics:

As of close of business: 5/23/2008

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:

Mexico’s one-day mine strike yesterday, Gammon Gold’s (GRS) claim dismissal, Kirkland’s (KGI.TO) drill results, and Silver Dragon’s (SDRG.OB) exploration progress 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:

Avion Resources Team Arrives in Mali and Grants Stock Options - More
- May 27, 2008 | Item | E-mail

GBS Gold Completes New Bought Deal $46.0 Million 3-Year Long-Term Debt and Redeems Previous Debt Due March 2009 - More
- May 27, 2008 | Item | E-mail

Sherwood Copper and Western Keltic Announce Closing of Business Combination - More
- May 27, 2008 | Item | E-mail

Ucore Uranium Announces $4.0 Million Private Placement - More
- May 27, 2008 | Item | E-mail

Chancery Resources Inc. Announces the Launch of Its New Corporate Website - More
- May 27, 2008 | Item | E-mail

Houston Lake Mining Completes Drill Program on West Cedartree Gold Project - More
- May 27, 2008 | Item | E-mail

Macusani Yellowcake Inc.: Excellent Column Leach Results. Tests Show Recoveries of 98.53% and 84.37% After 31 Days With Low Acid Consumption - More
- May 27, 2008 | Item | E-mail

Mercator Mails and Files Materials for Noteholder Meeting to approve Silver Sale Transaction with Silver Wheaton - More
- May 27, 2008 | Item | E-mail

Solex Resources Corp. adopts shareholder rights plan - More
- May 27, 2008 | Item | E-mail