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-- Posted Tuesday, 5 August 2008 | Digg This Article | Source: GoldSeek.com

The Metals:

Gold steadily fell throughout most of world trade and ended near its low of $875.75 with a loss of 2.43%.  Silver also fell throughout the day and ended near its low of $16.527 with a loss of 3.39%.  Both metals have continued to fall in after hours access trade in reaction to the fed’s statement.

Euro gold fell to about €567, platinum gained $20 to $1576, and copper fell another few cents to about $3.46.

Gold and silver equities steadily fell for most of trade and ended about 5% lower.

The Economy:

The fed held rates at 2% as expected and said that risks to growth remain and inflation risks are of "significant concern."

Tomorrow at 3PM EST is the Consumer Credit report for June expected at $6.0 billion.

The Markets:

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

The U.S. dollar index rose as oil fell on demand concerns and easing supply worries as storm fears continued to ease in the Gulf of Mexico.

Treasuries fell as the Dow, Nasdaq, and S&P rose for most of trade and ended nearly 3% higher as oil fell again, ISM Services came in better than expected, and the fed did not bring any real surprises with their decision to hold rates at 2%.

Among the big names making news in the market today were P&G, SocGen, Freddie Mac, Lehman, Cablevision, 3Com, and Molson Coors.

The Commentary:

"Gold started its fall through $900 when the week before last we saw 30 tonnes sold off by one of the signatories to the Central Bank Agreement.   [We suspect it was Spain but due to the confidential nature of the market cannot verify this].  

The oil price came off too, but this has not driven the gold price up since it was $100, so this was only an indirect influence.  

The $ has and continues to be the main influence on the gold price, so when today it pushed back to the upper limit of its trading range it influenced the gold price to the downside again.  

The factors pushing the price down are not in our opinion substantive enough to change the trend of the gold price.   Only a sound $, healthy global economic growth, low inflation, and confidence in the world monetary system will change this trend, but then, this is the sort of thing dreams are made of.

We are in the last month of the quiet season for gold, before the developed world comes to buy physical gold ready for the year end festivities and India reaps the benefit of its harvest.   With the gold price falling in the Rupee more than it has for some time, we expect to see that market enter to buy for festivals, daughters and for financial security.

Add investment demand to this oncoming physical demand and you have a demand level far higher than at present." - Julian D.W. Phillips, www.goldforecaster.com

“August Gold finished down 21.5 at 878.6, 3.4 off the high and equal to the low.

September Silver closed down 0.568 at 16.572. This was 0.022 up from the low and 0.293 off the high.

Gold mostly remained under ongoing moderate pressure on Tuesday and with oil sharply lower, the Dollar breaking out to the upside and a number of physical commodity markets under significant pressure, it wasn't surprising to see gold touch the lowest level since June 16th. However, a sharp mid day bounce in oil, grains, sugar and a host of other physical commodity markets could be a signal that some markets have become oversold. On the other hand, ongoing strength in the Dollar could make it difficult for the gold market to shut off the recent selling bias. The bulls might suggest that a recovery in platinum prices provided another clue of a potential bottom in metals prices, but recently platinum and gold haven't exactly managed a tight correlation.

The silver market mostly remained under pressure despite a mid session bounce in a host of physical commodity markets. In fact, a moderately significant recovery bounce in platinum could serve to discourage some fresh would-be sellers in the silver market. While the upside action in the US equity market didn't seem to benefit silver prices into mid session, persistent strength in equity prices could eventually lead to a slight upgrade in physical demand expectations for silver. In the end, the silver market had to face ongoing flight to quality liquidation pressure and a rising Dollar and that typically isn't a very favorable environment for prices.”- The Hightower Report, Futures Analysis and Forecasting

GATA Posts:

Consumer prices rise fastest in 25 years -- and gold plunges

Ted Butler: Paper selling, physical buying

The Statistics:

As of close of business: 8/04/2008

Global Gold ETF Holdings

[WGC Sponsored ETF’s]

 Note: Change in Total Tonnes from yesterday’s data: SPDR added 0.61 tonnes.

COMEX Gold Trust (IAU)

 Note: Change in Total Tonnes from yesterday’s data: 0.02 tonnes were removed from the trust.

Silver Trust (SLV)

 Note: Change in Total Tonnes from yesterday’s data: 2.65 tonnes were removed from the trust.

The Stocks:

Newmont’s (NEM) possible sale of its mine stake in Australia, Eldorado’s (EGO) acquired shares in Brazauro, Ivanhoe’s (IVN) completed Australian IPO, Scorpio’s (SPM.TO) concentrate shipment, and Hecla’s (HL) second quarter results 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:

Gowest Announces Grant of Options - More
- August 05, 2008 | Item | E-mail

Nakru Project Update - More
- August 05, 2008 | Item | E-mail

SIRIOS: Option on the Escale Gold Property Increased to $1.3 M - More
- August 05, 2008 | Item | E-mail

Evolving Gold Exploration Update - More
- August 05, 2008 | Item | E-mail

B2Gold Corp. Announces Continued Positive Exploration Drill Results from the Quebradona and Gramalote Gold Properties in Colombia - More
- August 05, 2008 | Item | E-mail

Eldorado Acquires Shares of Brazauro - "Eldorado Gold Corporation (Toronto:ELD.TO - News)(EGO - News) announced the purchase of an additional 2,000,000 shares of Brazauro Resources Corporation ("Brazauro") (representing approximately 2.3% of Brazauro's issued and outstanding common shares at July 31, 2008) in several market transactions on the TSX Venture Exchange at a price per share of $0.42." More
- August 05, 2008 | Item | E-mail

Sierra Minerals Appoints Chief Financial Officer - More
- August 05, 2008 | Item | E-mail

Gold Resource Corporation Soon to Complete Detailed Dileneation Drilling on a Portion of the High-Grade Arista Deposit at Its El Aguila Project - More
- August 05, 2008 | Item | E-mail

Laramide Completes First Phase of Drilling at Westmoreland - More
- August 05, 2008 | Item | E-mail

Northland Appoints Deborah Craig Vice President, Strategic Development - More
- August 05, 2008 | Item | E-mail

Sherwood Reports Higher Copper Production Forecast for 2009 & Updated Resource Estimates - More
- August 05, 2008 | Item | E-mail

Barrick won't speculate on Newmont mine stake - "Barrick Gold (ABX.TO: Quote, Profile, Research, Stock Buzz) refused to speculate on Tuesday whether it would be interested in buying Newmont Mining's (NEM.N: Quote, Profile, Research, Stock Buzz) stake in the Kalgoorlie mine in Australia, which Newmont has suggested it may sell.

The mine, which is jointly owned by the two big gold producers, suffered 74 percent cost inflation in the most recent quarter, due in part to lower ore grades, according to Newmont." More
- August 05, 2008 | Item | E-mail

Millrock and Alix Announce the Start of Drilling at the Divide Project, Seward Peninsula, Alaska, Complete Agreement - More
- August 05, 2008 |