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-- Posted Monday, 16 June 2008 | Digg This Article | Source: GoldSeek.com

The Metals:

Gold and silver fell roughly 0.5% to $866.30 and $16.39 by late trade in Asia, but both metals then screamed higher in London and early New York trade to as high as $894.90 and $17.425 by about 9:30AM EST.  The monetary metals then drifted over 1% from their highs into the close, but they still ended with gains of 1.52% and 3.93%.

Euro gold rose to about €570, platinum gained $15 to $2043.50, and copper gained nearly 9 cents to about $3.68.

Gold and silver equities rose about 3% at the open before they eased back slightly for most of the rest of trade, but they still ended with almost 2% gains.

The Economy:

Tomorrow at 8:30AM EST brings PPI for May expected at 1.0%, Core PPI expected at 0.2%, Building Permits for May expected at 960,000, and Housing Starts expected at 980,000.  At 9:15 is Capacity Utilization for May expected at 79.7% and Industrial Production expected at 0.1%.

The Markets:

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

Oil rose to a new record high of $139.89 before the floor session in New York even began, but it then fell back off for most of the rest of trade and ended slightly lower after having seen over $5 gains earlier in the day.  A fire in the North Sea that shut production and a weaker dollar both contributed to the early gains that were then reversed by news that Saudi Arabia will add another 300,000 barrels per day to world production.

The U.S. dollar index fell as the G8 meeting failed to even mention the currency in their closing remarks of this past weekend’s summit.  Previous speculation was that world leaders would announce measures to try and strengthen the dollar, but nothing materialized and the index fell sharply lower today as a result.  The G8’s focus on inflation and a weak NY Empire State Index also added pressure.

Treasuries rose as the Dow and S&P traded mostly lower on worries over oil and the economy, but the Nasdaq was able to buck the trend and found modest gains on the day.

Among the big names making news in the market today were AIG, Lehman Brothers, and McClatchy.

The Commentary:

“August Gold finished up 13.2 at 886.3, 10.7 off the high and 5.6 up from the low.

July Silver closed up 0.672 at 17.232. This was 0.522 up from the low and 0.238 off the high.

After an early rally attempt in the wake of the softer than expected Empire State Manufacturing report, the gold market consistently lost ground throughout the trading session and at times the market was trading as much as $13 an ounce below the early highs. It almost seemed as if the failed rally attempt to fresh new highs in the energy complex served to undermine the gold market as the market apparently needed to see the uncertainty of ultra high oil remain in place. In the end, the bull camp in gold had to be disappointed with the failure in the gold market in the face of a fairly definitive slide in the Dollar.

Like the gold market the silver market managed a very impressive early explosion in prices but the market was unable to sustain the gains. In fact, the silver market at one time Monday morning was a surprising $1.065 per ounce above the overnight lows! However, despite the fact that the silver market gave back a portion of its rather impressive morning gains, that type of rally had to scare some of the bears from last week's action. Strength in copper and platinum prices seemed to provide the silver market with a minor lift and it is also possible that gains in the US equity market provided some spillover support for silver.”- The Hightower Report, Futures Analysis and Forecasting

GATA Posts:

Iran reported to withdraw $75 billion from Europe

James Turk: Time to 'wheedle and cajole'

Secrecy for NY Fed's derivatives bailout scheme challenged

The Statistics:

As of close of business: 6/13/2008

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: Change in Total Tonnes from yesterday’s data: 46.17 tonnes were added to the trust.

The Stocks:

Imperial’s (III.TO) Red Chris mine ruling, Rubicon’s (RBY) drill results, Metallica’s (MRB) option agreement, Claude’s (CGR) debenture offering, Eldorado’s (EGO) offer for Frontier Pacific Mining Corporation, Fortuna’s (FVI.V) mining concession acquisition, and Scorpio’s (SPM.TO) Agency Agreement 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:

Houston Lake Mining Raises $286,200 in Final Tranche of $454,800 Flow-Through Private Placement - More
- June 16, 2008 | Item | E-mail

Weststar Resources Corp.: Private Placement - More
- June 16, 2008 | Item | E-mail

Acadian Mining Corporation to extend warrant expiry date - More
- June 16, 2008 | Item | E-mail

MacDonald Mines Outlines Targets on 5 Distinct Project Areas; 5000 Metre Drill Program to Commence in Late June - More
- June 16, 2008 | Item | E-mail

Kria Resources Raises $2 Million in Private Placement - More
- June 16, 2008 | Item | E-mail

Robex - Convertible debenture financing - More
- June 16, 2008 | Item | E-mail

WSR-Metalex-Arctic Star Joint Venture Announces a Correction on the Hole 5.01-09 Co-Ordinates in Press Release Dated June 16, 2008 - More
- June 16, 2008 | Item | E-mail

Golden Dawn Minerals Commences Drilling in the Kirkland Lake District - More
- June 16, 2008 | Item | E-mail

Gold Exploration update - Drilling commences in the Otago Region - More
- June 16, 2008 | Item | E-mail

Challenge to Red Chris mine overturned - "A Canadian appeals court has set aside a lower court decision that had blocked approvals for the Red Chris copper and gold mine in British Columbia, mine owner Imperial Metals said on Monday." More
- June 16, 2008 | Item | E-mail

International PBX Ventures Ltd.: Copaquire Drill Results and Update - More
- June 16, 2008 | Item | E-mail

Mineralization Expansion and Grade Improvement at Valencia-Forsys Triples Drill Program - More
- June 16, 2008 | Item | E-mail