-- Posted 6 May, 2008 | Digg This Article | Discuss This Article - Comments:

The Metals:

Gold rose to trade nearly 1% higher in London before it briefly fell to see a slight loss at $871.55 in early New York trade, but it soon rose to as high as $883.00 by late morning and ended around the middle of that range with a gain of 0.46%.  Silver dropped to $16.615 and rose to $17.00 before it close with a gain of 0.48%.

Euro gold rose to about €564, platinum gained $34.50 to $1953, and copper fell over 6 cents to about $3.91.

Gold and silver equities rose roughly 2.5% by midmorning before they fell back off a bit into the close, but they still ended with about 1.5% gains.

The Economy:

There were no major economic reports today, but last night’s comments from Bernanke about foreclosures and their harmful impacts on the economy did have some talking.  Tomorrow at 8:30AM EST brings first quarter Productivity expected at 1.5%.  At 10AM is the Pending Home Sales report for March expected at -1.0% and at 3PM is Consumer Credit for March expected at $6.0 billion.

The Markets:

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

Oil rose to a new record high at $122.73 as a note from Goldman Sachs talking about a super spike to $200 a barrel had traders on the bullish path ahead of tomorrow’s inventory reports.

The U.S. dollar index fell on poor earnings reports that raised worries about the economy.

The Dow, Nasdaq, and S&P fell in early trade on mostly poor earnings reports and record high oil, but all three indices rose to find decent gains by the close and treasuries turned lower after Fannie Mae’s conference call somehow reassured investors that their over $2 billion loss and outlook for further falls in home prices and continued problems in the mortgage market was in fact not that bad.

Among the big names making news in the market today were Fannie Mae, Lazard, Countrywide, D.R. Horton, ArvinMeritor, and NYSE Euronext.

The Commentary:

“Keep in mind that the fundamental reason for gold’s normal violent reaction was the euro coming off the $1.60 level, seen by some as a top. It is NOT!

If you took a glance at the 35-year synthetic chart my dog Mia could have told you that. As the major un-dollar and with Europe and China having experienced both currencies evaporating to zip, it is unlikely that the ECB will join the Fed in the race to 0%

Considering inflation even at the manufactured rate the PPI and CPI show, the Fed is giving away money in exchange for garbage paper at ZERO percent.

I dare to say the bottom in gold has occurred this week.

Gold will take out $1024 on the third try. Now the magnet is at $980 to $985.

Gold will rise, kicking and gouging its way to at least $1650.

Gold shares will, as they did in 1979-1980, outperform gold as they will return to asset based situations in a hard asset demand environment.”- Jim Sinclair, JSMineset.com

“June Gold finished up 3.6 at 877.7, 6.8 off the high and 3.4 up from the low.

May Silver closed up 0.034 at 16.78. This was equal to the low and 0.22 off the high.

The gold market at times on Tuesday looked impressive and almost seemed to be poised to come back into vogue among investors and traders. However, the inability to sustain the gains in the face of ongoing energy strength, a weak Dollar and even in the face of a recovery in the US stock market would seem to suggest that the gold market wasn't completely embracing the nearly perfect storm of outside market action. It is also possible that the gold market was simply banking some profits at the recent bounce and perhaps some traders were standing aside from longs after the latest flurry of gold company earnings. However, some traders suggest that it could take a definitive slide in the Dollar to turn back on the pattern of buying that was seen prior to the March high. Some traders suggested that June gold needed to climb back above the 100 day moving average up at $913.2 to turn the technicals back in favor of the bull camp while others pointed to the down trend channel resistance line off the March and April highs at $902.5 as a critical technical point in the Wednesday trade.

The silver market at least temporarily managed to regain the $17.00 level but it is possible that the weakness in copper served to put some silver traders off balance. The 100 day moving average in the July silver contract comes in up at $17.32 on Wednesday and it might take a rise above a classic technical point to effectively shift the silver market out of the downtrend pattern that has been in place since the March highs. In fact, given the weakness in silver over the last two months, a number of traders and Press outlets are naturally beginning to look for technical bottoming signs especially since the market to the highs Tuesday had managed a bounce of $1.02 per ounce off the May low.”- The Hightower Report, Futures Analysis and Forecasting

GATA Posts:

Ted Butler: Another sick new record

The Statistics:

As of close of business: 5/05/2008

Global Gold ETF Holdings

[WGC Sponsored ETF’s]

Note: No change in Total Tonnes from yesterday’s data.

COMEX Gold Trust (IAU)

Note: Change in Total Tonnes from yesterday’s data: 1.54 tonnes were subtracted from the trust.

Silver Trust (SLV)

Note: No change in Total Tonnes from yesterday’s data.

The Stocks:

IAMGOLD’s (IAG) exploration results, Barrick Gold’s (ABX) financial results and dividend, Paramount’s (PZG) drill results, Freeport’s (FCX) landslide, AngloGold’s (AU) financial results and exploration results, Sterling Mining’s (SRLM.OB) closed financing, and Arian’s (AGQ.V) private placement 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:

Explor Completes Phase IV Diamond Drilling: Eastford Lake Gold Project - More
- May 06, 2008 | Item | E-mail

Barrick's Strong Cash Flow Generates 33% Dividend Increase - "Barrick Gold Corporation (NYSE:ABX - News)(Toronto:ABX.TO - News) today announced that its Board of Directors has increased its June dividend to US20 cents per share from US15 cents per share. The dividend is payable on June 16, 2008 to shareholders of record at the close of business on May 30, 2008." More
- May 06, 2008 | Item | E-mail

Mill City focuses on James Bay Lowlands, retains carried interest at Pony Creek and terminates other Nevada interests - More
- May 06, 2008 | Item | E-mail

Minterra Resource Corporation: Majuba Drilling and Field Program Underway - More
- May 06, 2008 | Item | E-mail

Getty Copper Inc. Update - More
- May 06, 2008 | Item | E-mail

Odyssey Continuance and Share Consolidation - More
- May 06, 2008 | Item | E-mail

Sterling Mining Closes US$1.8 Million Financing - "Sterling Mining Company (Toronto:SMQ.TO - News)(OTC BB:SRLM.OB - News)(Frankfurt:SMX.F - News) announces that it has closed an equity financing of US$1.8 million by way of non-brokered private placement. The placement will consist of 741,164 units at US$2.40 per unit." More
- May 06, 2008 | Item | E-mail

Peru unions say ready for nationwide mining strike - "Unions at mines throughout Peru are ready to strike next week to demand better labor benefits, the head of the country's biggest federation of mining unions and local union bosses said on Tuesday." More
- May 06, 2008 | Item | E-mail

Premier-Roxmark Geraldton drilling continues to expand gold zones - More
- May 06, 2008 | Item | E-mail

Benton Completes Two Airborne Surveys and Two Drill Programs - More
- May 06, 2008 | Item | E-mail

Comprehensive update on Etruscan's African exploration - More
- May 06, 2008 | Item | E-mail

Astral and Kootenay Form JV and Announce 2008 Exploration Program for Jumping Josephine Gold Project - More
- May 06, 2008 | Item | E-mail