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-- Posted Wednesday, 24 September 2008 | Digg This Article | Source: GoldSeek.com

The Metals:

Gold fell $6.40 to $879.60 in Asia and rose nearly 2% to $901.75 in New York before it fell back off for most of the rest of trade, but it still ended with a gain of 0.45%.  Silver fell just slightly to $13.045 and rose over 4% to $13.63 before it also fell back off into the close, but it still ended with a gain of 2.22%.

Euro gold rose to about €607, platinum gained $3.50 to $1207.50, and copper fell over 4 cents to about $3.12.

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

The Economy:

The house financial services committee hosted Bernanke and Paulson this afternoon and Bernanke also spoke earlier this morning with the joint economic committee.  Bernanke said that a properly developed program can increase the value of the distressed assets the government plans to purchase with the proposed $700 billion bailout plan.  He also argued that it’s not just an inconvenience in the credit markets happening but that failure to act will also result in a loss of jobs and other impacts on the direct economy and that seemed to increase confidence the bill would pass as it pushes the point that it is not just a bailout for Wall Street but also a bailout for main street.  Certainly others have different points of view about this plan and many have made them known this past week with some excellent articles posted on the main page of GoldSeek.

President Bush will address the nation tonight about the bailout at 9PM EST.  Tomorrow at 8:30AM EST brings Durable Goods Orders for August expected at -1.3% and Initial Jobless Claims for 9/20.  At 10AM is the New Home Sales report for August expected at 518,000.

The Markets:

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

Oil rose in early trade on confidence that the bailout plan will bring some stability to the markets, but it ultimately fell back off and ended a bit lower on worries over demand no matter what happens.  Oil inventories fell 1.5 million barrels, gasoline inventories fell 5.9 million barrels, distillates fell 4.2 million barrels, and refineries ran at 66.7%.

The U.S. dollar index rose as bailout plans remained mostly steady and the euro fell on a drop in the September German Ifo Index.

Treasuries rose slightly “after a record size $34 billion auction of 2-year notes generated decent demand.”  Most of the talk in the bond pits lately has been over the large difference in swaps.  The 2-year swap rose to over 160 today which basically means it is very hard to borrow.

The Dow, Nasdaq, and S&P held near unchanged in low volume as views over the bailout plan did not change much and everyone seemed to be watching the testimony and not trading in order to react to any developments.  It seems that the process is now just hammering out the details and the view on the street it that a plan may be passed by this weekend, but if that view changes then things could get real ugly quite quickly.  CEO compensation limits and equity stakes are just a couple of the differing details that could hold this plan up for several more days or even weeks.

Among the big names making news in the market today were the FBI and Fannie, Freddie, Lehman, and AIG, Goldman Sacks and Warren Buffet, Morgan Stanley, and Lowe’s.

The Commentary:

“December Gold closed up 3.8 at 895. This was 3.5 up from the low and 12 off the high.

December Silver finished up 0.27 at 13.44, 0.24 off the high and 0.16 up from the low.

The gold market did see a lower low for the move during the trade Wednesday but in the end the market seemed to be willing to settle around the prior sessions closing value. In fact, for the gold market to show positive price action throughout the morning trade in the face of a higher Dollar suggests that something other than currency action is driving prices. With the gold market weakening in the wake of the scheduled US numbers and gold prices somewhat discouraged in the wake of fears of slowing from the Chinese Prime Minister it would seem like some gold players remained concerned about severe slowing.

The silver market seemed to out perform the gold market during the trade Wednesday. In fact, for silver to have remained mostly positive during the session in the face of a rising Dollar and sharp declines in copper would seem to suggest that silver was attempting to track a fresh fundamental track. Perhaps the silver market is attempting to establish a tighter positive correlation with the US equity market, which is something that many physical commodity markets might see in the event that a bailout plan is actually passed.”- The Hightower Report, Futures Analysis and Forecasting

GATA Posts:

Time for a gold ruble?

Ambrose Evans-Pritchard: Does U.S. face a run on its currency?

The Statistics:

As of close of business: 9/23/2008

Global Gold ETF Holdings

[WGC Sponsored ETF’s]

 Note: Change in Total Tonnes from yesterday’s data: SPDR added 15.32 tonnes to a new record high holding.

COMEX Gold Trust (IAU)

 Note: Change in Total Tonnes from yesterday’s data: 1.07 tonnes were added to the trust.

Silver Trust (SLV)

 Note: Change in Total Tonnes from yesterday’s data: 30.73 tonnes were added to the trust.

The Stocks:

Barrick’s (ABX) Pascua Lama gold project continuing to be held up, Kirkland’s (KGI.TO) director appointment, Fronteer’s (FRG) earned majority interest in Long Canyon, Excellon’s (EXN.TO) mill construction permits, and Impact’s (IPT.V) stock options were among the big stories in the gold and silver mining industry making headlines today.

WINNERS

LOSERS

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All of today's gold and silver stock news:

Zazu Intersects 26.8 m Grading 27% Zinc Lead at Lik - More
- September 24, 2008 | Item | E-mail

Sego Resources Inc. and Upper Similkameen Indian Band Receive Reclamation Award - More
- September 24, 2008 | Item | E-mail

Amador Gold Makes New Gold Discovery on Its Loveland Nickel Copper Project - More
- September 24, 2008 | Item | E-mail

Excellon Announces Receipt of Mill Construction Permits and Planned Reduction in Operating Expenditures - "Excellon Resources Inc. (Toronto:EXN.TO - News) today announced that it has received all the necessary permits from the Mexican Government to construct and operate a lead/zinc flotation mill at its Platosa Property in Durango State. In addition, Excellon announces that all major equipment for the mill has been acquired and significant additional work has been in progress off site in preparation for the commencement of activity at the mine." More
- September 24, 2008 | Item | E-mail

Ruby Red proposes to extend terms of warrants - More
- September 24, 2008 | Item | E-mail

Amended New Release: Clifton Resources Inc. Announces Financing With MineralFields Group - More
- September 24, 2008 | Item | E-mail

165,000,000 Tonnes Resource Estimated for the Nithi Property - More
- September 24, 2008 | Item | E-mail

U2009 Global Uranium Symposium Announced - More
- September 24, 2008 | Item | E-mail

SIRIOS RESOURCES INC./Kukames Project : 2.44 g/t of Gold Over 2 Meters - More
- September 24, 2008 | Item | E-mail

Andover Announces Results from Annual General Meeting - More
- September 24, 2008 | Item | E-mail

Arian Silver Upgrades Tepal Resource Estimate - More
- September 24, 2008 | Item | E-mail

Duran Ventures and MacMillan Gold Drilling at Aguila and Pasacancha Targets in Peru - More
- September 24, 2008 |