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-- Posted Thursday, 12 June 2008 | Digg This Article | Source: GoldSeek.com

The Metals:

Gold and silver fell throughout most of trade in Asia and London and dropped to as low as $857.05 and $16.22 by a little before 9AM EST in New York, but both metals then rallied back higher into the close and ended well of those lows with losses of just 1.23% and 2.23%.

Euro gold fell to about €564, platinum lost $22 to $2015.50, and copper fell over 4 cents to about $3.53.

Gold and silver equities fell about 3% by late morning before they rebounded to see only about 1.5% losses by mid-afternoon, but they then fell back off in the last couple of hours of trade and ended with over 2% losses after the major indices erased much of their early gains.

The Economy:

Tomorrow at 8:30AM EST brings CPI for May expected at 0.5% and Core CPI expected at 0.2%.  At 10AM is Michigan Sentiment for June expected at 59.5.

The Markets:

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

Oil fell almost $5 at one point on dollar strength, but it then rallied back to find a slight gain by the close on talks over a strike in Nigeria and some refinery outages in the US that pushed the price of RBOB gasoline back above $3.50 a gallon.

The U.S. dollar index rose and treasuries fell as better than expected Retail Sales data raised the outlook for an interest rate hike by the fed sooner than previously thought.

The Dow, Nasdaq, and S&P rose over 1% in morning trade on economic optimism over the better than expected Retail Sales report, but the late rebound in oil prices took the indices well off their highs and they ended with only modest gains.

Among the big names making news in the market today were Yahoo and Microsoft, Thornburg Mortgage, InBev and Anheuser-Busch, Lehman Brothers, KeyCorp, Citigroup, and Delta.

The Commentary:

“Dear CIGAs,

It is so hard to deal with this every day. You should really understand it is all financial propaganda.

Today's economic propaganda is twofold. The G8 meeting coming up has been sterile on its ability to impact the trend of the dollar and will remain so no matter what Financial TV says. Nothing can stop the enormous wave of inflation coming at us like a runaway locomotive because of the expansion of international liquidity. Not words, oral interventions or G8s can stop that.

The Retail Sales as you can see below is propaganda and nothing more.

The truth of the G8 meeting and the key element today is that there is another major international investment firm having a run on it, similar to Bear Stearns. The Fed will broker another takeover, something that will cost an amazing amount of money and once again hit the US dollar hard on the downside when the verbal smoke is seen as it is - nothing.

There was more truth in Pravda under Stalin than there is on Financial TV today.”- Jim Sinclair, JSMineset.com

“August Gold finished down 10.9 at 872, 1 off the high and 12 up from the low.

July Silver closed down 0.37 at 16.485. This was 0.235 up from the low and 0.115 off the high.

The gold market continued to remain out of favor for most of the trading session Thursday and with the US Dollar managing the highest trade since February 28th it is likely that currency related selling was the dominate feature of the trade. However, the oil market at times was under aggressive liquidation pressure at the same time that US equity prices were higher and that in the past has served to push a number of gold longs to the sidelines. While seeing a stronger than expected US retail sales report logically supported the Dollar, seeing the US economy hold together could eventually foment and accelerate inflation. However, in the near term the gold market doesn't seem to be that interested in the longer term fundamentals and instead the trade is intently focused on a few outside markets.

The silver market saw initial pressure in the wake of the wave up move in the Greenback and the market was able to forge a bounce into mid session, but in the end the bear camp was generally able to retain control over prices. However, a number of traders continue to point to the 74.40 level in the September Dollar Index as an extremely critical pivot point for the precious metals markets.”- The Hightower Report, Futures Analysis and Forecasting

GATA Posts:

Marc Chandler: Don't expect intervention to support dollar

Iran says it will sell euro instruments for gold and stocks

Antal Fekete: Putting loincloth on the naked bogeyman

Another mainstream writer notices that gold is crucial to international monetary reform

Join GATA this weekend at the Vancouver conference

Fed vice chairman suggests letting inflation run for a while

Mike Kosares: An historic year for gold

The Statistics:

As of close of business: 6/11/2008

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:

Almaden’s (AAU) sold property, IAMGOLD’s (IAG) internal scoping study, Kinross Gold’s (KGC) closing bell ringing, Endeavour’s (EXK) drill results, and Silver Dragon’s (SDRG.OB) tax payment 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:

Mexivada stakes new gold-tellurium property in Mexico - More
- June 12, 2008 | Item | E-mail

World Ventures Inc. - Private Placement Financing - More
- June 12, 2008 | Item | E-mail

New Guinea Gold Announces Inferred Mineral Resource at 100% Owned Imwauna Project - More
- June 12, 2008