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-- Posted Friday, 27 June 2008 | Digg This Article | Source: GoldSeek.com

The Metals:

Gold was not satisfied with Thursday’s over $30 gain that was the largest in over 20 years and it continued to climb throughout world trade on Friday.  Silver followed suit and both metals ended near their session highs of $929.55 and $17.625 with gains of 1.67% and 2.51% as the dollar continued to fall and oil hit a new record high.

Euro gold rose to about €588, platinum remained unchanged at $2059.50, and copper gained over 5 cents to about $3.88.

Gold and silver equities rose throughout the day and ended with roughly 4% gains.

The Economy:

All of this week’s economic reports:

Next week’s economic highlights include Chicago PMI on Monday, Construction Spending and the ISM Index on Tuesday, ADP Employment and Factory Orders on Wednesday, and Initial Jobless Claims, ISM Services, and June’s jobs data on Thursday.  Markets are closed on Friday in observance of Independence Day.

The Markets:

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

Oil rose to a new record intraday high of $142.99 before pulling back a bit, but it still made a new record closing high as the U.S. dollar index continued to fall on persistent worries about the credit market and the overall economy that also drove treasuries higher while the Dow, Nasdaq, and S&P added to Thursday’s roughly 3% losses.

Among the big names making news in the market Friday were Anheuser-Busch, Citigroup, Merrill Lynch, Delta, and KB Home.

The Commentary:

“Dear CIGAs,

The price of gold will find resistance at the high $950s and again at the major round number of $1000. The opposition at the latter level will have more gusto.

The second try on $1000 will be followed by a modest reaction. After this reaction, a third attempt will see the price of gold burst upwards through $1000.

The pull from the $1200 magnet is irresistible and will be accomplished in 2008.

All else is noise.”- Jim Sinclair, JSMineset.com

“August Gold finished up 16.2 at 931.3, 0.5 off the high and 10.8 up from the low.

July Silver closed up 0.495 at 17.62. This was 0.28 up from the low and equal to the high.

The gold market remained well bid throughout the trading session and seeing the Dollar remain weak and seeing the energy complex make record runs during the trade session certainly kept the flight to quality theme in a front and center position during the trade on Friday. With the US stock market coming under renewed aggressive selling pressure in the wake of the second new all time high run for the day in the energy market, it seemed as if gold was being presented with a multitude of safe haven angles in the headlines. In the end, financial uncertainty, inflation, flight to quality fears and general anxiety seems to be playing right into the hands of the bull camp in gold.

The silver market was pulled higher Friday by the weak Dollar and certainly because of the strength in the gold market. However, silver also seemed to be pushed up in the wake of the ongoing strength in energy prices, which suggests that silver is potentially benefiting from classic inflationary expectations and well as the classic themes of fear and anxiety. With silver and copper prices both sharply higher on the day, it would not appear as if the fear of too much slowing and the fear of slumping physical and industrial demand was being given that much credence.”- The Hightower Report, Futures Analysis and Forecasting

GATA Posts:

Barclays warns of disaster as Fed loses all credibility

The Statistics:

As of close of business: 6/26/2008

Global Gold ETF Holdings

[WGC Sponsored ETF’s]

Note: Change in Total Tonnes from yesterday’s data: The ASX added 0.06 tonnes.

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: 30.78 tonnes were added to the trust.

The Stocks:

Golden Star’s (GSS) increase in power costs and Coeur’s (CDE) court appeal were among the big stories in the gold and silver mining industry making headlines Friday.

WINNERS

LOSERS