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-- Posted Friday, 13 June 2008 | Digg This Article | Source: GoldSeek.com

*Apologies for the misquote yesterday.

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The Metals:

Gold rose to $874 in Asia before it fell over 1% to $859 in London, but it then rallied back higher in New York and ended with a gain of .1%.  Silver climbed to $16.61 and dropped to $16.245 before it also rallied back higher in New York and ended with a gain of 0.4%.

Euro gold rose near €565, platinum gained $13 to $2028.50, and copper gained over 6 cents to about $3.59.

Gold and silver equities traded mostly slightly higher and ended with modest gains.

The Economy:

All of this week’s economic reports:

Next week’s economic highlights include the NY Empire State Index and Net Foreign Purchases on Monday, Building Permits, Housing Starts, PPI, Capacity Utilization, and Industrial Production on Tuesday, and Initial Jobless Claims, Leading Economic Indicators, and the Philadelphia Fed survey on Thursday.

The Markets:

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

Oil fell on speculation that Saudi Arabia may boost production as the dollar rose and treasuries fell on CPI numbers that increased inflation fears and furthered the case for the fed to raise interest rates sooner than previously thought.  I’ll believe it when I see it.

The Dow, Nasdaq, and S&P rose over 1% on lower oil prices and confidence that the economy can hold up to higher interest rates.

Among the big names making news in the market Friday were Delta, BlackRock and Lehman, and Yahoo.

The Commentary:

“The gold and silver price is weakening in the face of a slightly stronger $ standing now at $1.5318, on the top side of the trading range it has been in for some weeks now.   Will it break upwards?  

The Administration is placing huge pressure on all relevant people to make it rise, while the fundamentals don't support such a rise.   Secretary Paulson is behind the bulk of the pressure, so the market is looking expectantly to the G-8 meeting this weekend.  

If the support for the $ were visible and fundamental the $ will rise, but until then the future of the $ remains in question. 

Gold and silver, now in their quiet season, are sitting on support now and strong support at that.   Investment demand is sitting on the sidelines waiting for good reasons to buy, which are there, but these fear a change in the $ now.”- Julian D.W. Phillips, www.goldforecaster.com

“August Gold finished up 1.1 at 873.1, 0.5 off the high and 6.8 up from the low.

July Silver closed up 0.075 at 16.56. This was 0.11 up from the low and 0.05 off the high.

The gold market forged an initial flare on the upside in the lead up and aftermath of the CPI report release but that rally failed just ahead of mid session. In the end the gold market managed to regain its bullish footing and even managed to climb above the CPI report inspired morning rally. Clearly seeing the US Dollar give back some of its gains inspired some buyers, but we suspect that some of the buying action was short covering buying from those that sold at higher levels early in the week. Some gold bulls were cheered by the fact that gold prices were able to firm in the face of strong gains in the US equity market. Apparently the net result of the US CPI report was judged to be generally supportive, but the main focus of the market remains on the action in the Dollar.

The silver market performed better than gold for most of the trading session Friday. Perhaps silver was being lifted by a slight improvement in the US economic outlook, as inflation wasn't nearly as undermining feared and the bounce in the stock market seemed to benefit a number of physical commodity markets on Friday. Perhaps the silver market was seeing classic week ending technical short covering and perhaps the strength in the copper market provided copper prices with an indirect lift.”- The Hightower Report, Futures Analysis and Forecasting

GATA Posts:

Ron Paul turns campaign toward electing libertarian-leaning Republicans

Germans begin rejecting euros from Latin bloc

Emerging markets face inflation meltdown

The Statistics:

As of close of business: 6/12/2008

Global Gold ETF Holdings

[WGC Sponsored ETF’s]

Note: Change in Total Tonnes from yesterday’s data: SPDR added 7.66 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:

Almaden’s (AAU) drill ready project, Paramount’s (PZG) assay results, Solitario’s (XPL) name change, U.S. Energy’s (USEG) interest sale, Aurizon’s (AZK) exploration results, and Silver Bear’s (SBR.TO) strategic partnership were among the big stories in the gold and silver mining industry making headlines Friday.

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