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-- Posted Friday, 10 October 2008 | Digg This Article | Source: GoldSeek.com

Please Note:  There will not be a Gold Seeker Report on Monday.  Monday is also Columbus Day in the US and Canadian Thanksgiving Day.  The regular daily schedule should resume on Tuesday.

The Metals:

Gold rose as much as $46.95 to $930.75 by late trade in Asia before it fell back near unchanged by late morning in New York, fell even further in afternoon trade, and then ended with a loss of 3.6%.  Silver rose $0.42 to $12.24 in Asia and traded mostly modestly lower in morning New York trade before it also dropped another leg further in the last hour and a half of trade and ended with a loss of 11.25%.  Both metals have fallen even further in after hours access trade at the time of writing.

Euro gold fell to about €635, platinum lost $35 to $989, and copper fell over 26 cents to about $2.15.

Gold and silver equities fell over 15% by the middle of the afternoon before they rallied back higher in late trade to see only about 6% losses, but they then fell back off in the last minutes of trade and ended with over 12% losses.

The Economy:

The Markets:

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

Oil fell to a more than one-year low under $78 a barrel on worries over waning demand due to the apparent global slowdown in economic growth.

The U.S. dollar index rose as other world currencies fell more on a variety of worries while the dollar found some strength on hopes the G7 will find solutions to the many crises facing the world at this weekend’s meeting.

Treasuries rose as the Dow, Nasdaq, and S&P mostly fell markedly once again on worries over the health and sustainability of the financial system, but a late rally back higher left the Nasdaq with a small gain and the Dow and S&P with relatively minor losses on hopes that a solution can be worked out over the weekend.

Among the big names making news in the market Friday were GE, GM, Ford, Chrysler, Wells Fargo and Wachovia, and Macy’s.

The Commentary:

“Dear Friends,

The good news is that Monty and Tony are right. The bad news is that the cure will deliver a Weimar beyond Weimar within one year.

Gold is the only ultimate SAFE HAVEN. It will not be denied.

The option below is an international commitment to monetize all bankruptcies without limit while placing the entire world into a zero interest rate lock.

This is Weimar beyond Weimar.

Currencies will then bull then bear, varying day to day. This will swing gold wildly.

Manipulation of gold today, as you have seen a thousand times, will not do much.

Gold is headed to $1000 after this $900 dance, down slightly and then blast through $1000 on its way to $1200 and $1650.

The planetary killers are the OTC manufacturers, yet this QUADRILLION PLUS dollar problem is never properly defined. It never will be either.

I wager you that JP Morgan, who is collecting and being federally funded, will weather the storm by some miracle.

Eventually the Federal Reserve Gold Certificate Ratio, modernized and revitalized, fails miserably after everything else, including what is below.

Your friend,”- Jim Sinclair, JSMineset.com

“December Gold closed down 27.5 at 859. This was 4 up from the low and 62.5 off the high.

December Silver finished down 1.275 at 10.6, 1.145 off the high and equal to the low.

The gold market saw early flight to quality buying but despite continued weakness in the US equity market into mid session, gold prices just before 11:30 central time actually fell back to unchanged levels. Subsequently, gold fell very sharply along with the equity markets and that was certainly disappointing to the bull camp. Perhaps some longs we're simply inclined to bank profits ahead of the weekend or perhaps seeing the US Dollar give off the impression of finishing the week strong discouraged some players. As suggested in the midday coverage just saying discussions of a stock trading holiday in some foreign markets would seem to leave high anxiety in place into next week. Certainly the G7 will attempt to shore up confidence with weekend actions and that could be another reason why some gold longs decided to bank profits around the highs of today.

As suggested in the morning and midday coverage the silver market clearly diverged from the action being seen in the gold market early in the session. In fact, in the wake of the Friday action many traders feared that silver was being swept into the physical commodity category. Significant pressure in both copper and platinum prices, a rising US Dollar and extreme macro economic uncertainty has seemingly left silver's stock as a financial instrument at a low level. Therefore, many traders anticipate silver will continue to maintain a tight positive correlation with the US equity market.”- The Hightower Report, Futures Analysis and Forecasting

GATA Posts:

Nouriel Roubini: Collapse imminent without huge reflation program

'Unprecedented demand' for U.S. gold coins? Hardly

Perth Mint booms amid financial meltdown

The Statistics:

As of close of business: 10/09/2008

Global Gold ETF Holdings

[WGC Sponsored ETF’s]

COMEX Gold Trust (IAU)

Silver Trust (SLV)

The Stocks:

Tanzanian Royalty’s (TRE) completed private placement, Gold Reserve’s (GRZ) equipment sale, Paramount’s (PZG) assay results, Timberline’s (TLR) amended purchase agreement, Midway’s (MDW) drill results, Gold Fields’ (GFI) operational guidance, Sterling Mining’s (SRLM.OB) TSX delisting, and First Majestic’s (FR.TO) resources were among the big stories in the gold and silver mining industry making headlines Friday.

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:

Elray Resources Building Presence in Areas of Known Gold Deposits - More
- October 10, 2008 | Item | E-mail

Northern Shield Completes Private Placement - More
- October 10, 2008 | Item | E-mail