-- Posted 6 May, 2008 | | Discuss This Article - Comments: Source: SilverSeek.com

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

VMS Reports 102.5 M of 1.09% Copper in RD-08-33 and 12.55 M of 2.01% Copper in RD-08-29 at Reed Lake, Manitoba - More
- May 06, 2008 | Item | E-mail

Bold Ventures Acquires Significant Land Holdings on 'The Ring of Fire' - More
- May 06, 2008 | Item | E-mail

Drilling Commences at Pancontinental Uranium's Charley Creek Project; Initial Samples From Kalabity Submitted to Lab - More
- May 06, 2008 | Item | E-mail

Norsemont's Constancia Project Demonstrates Significant Upside - More
- May 06, 2008 | Item | E-mail

Inspiration Intersects 1.652% Ni Over 5.66m or 18.57ft Containing 3.053%Ni Over 2.66m or 8.73ft Within Zone of 0.609% Ni Over 22.08m or 72.44ft (True Width) - More
- May 06, 2008 | Item | E-mail

Clifton Star Resources Inc.: News Release - More
- May 06, 2008 | Item | E-mail

Pershimco and Dia Bras Sign Binding Letter of Intent to Joint Venture the San Miguel and La Bamba Properties in the Cusi Silver Mining Camp, Mexico - More
- May 06, 2008 | Item | E-mail

Klondex to Highlight New Gold Intercepts from Its Nevada Exploration Program at Hard Assets Investment Conference in New York May 12th - 13th - Booth #417 - More
- May 06, 2008 | Item | E-mail

Centenario Receives Final Receipt for Short Form Prospectus - More
- May 06, 2008 | Item | E-mail

Cartier Announces Discovery of New Gold Zone - More
- May 06, 2008 | Item | E-mail

New Island Resources Inc.: Gold Production Commences at Pine Cove - More
- May 06, 2008 | Item | E-mail

Silver Shield Resources Intersects 3.8 Metres of 308.28 g/t Silver Among Assays of 7 Holes at La Cumbre Gold and Silver Property - More
- May 06, 2008 | Item | E-mail

Teryl Resources Announces the Second Phase of Drilling Commences This Week on the Bisbee Gold Hill Prospect, Arizona - More
- May 06, 2008 | Item | E-mail

Stingray Copper Inc.: El Pilar Infill Drill Program Winds Down Resource Update Anticipated - More
- May 06, 2008 | Item | E-mail

Geneva Resources, Inc. Appoints Bertrand Taquet as Board Director - More
- May 06, 2008 | Item | E-mail

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

Grandview Gold Extends GEM Property Option Agreement; Prepares for Rice Lake Gold District Exploration Season - More
- May 06, 2008 | Item | E-mail

Kola Mining Advances Souker Ni Deposit - More
- May 06, 2008 | Item | E-mail

Caledonia Announces NI 43-101 Resource for Anomaly "D" and Provides Management Comments on the Nama Cobalt Project in Zambia - More
- May 06, 2008 | Item | E-mail

Vale Inco owns safest metal mine in Canada...again! - More
- May 06, 2008 | Item | E-mail

AXMIN Inc.: Passendro Gold Project, Central African Republic Update - More
- May 06, 2008 | Item | E-mail

First Nickel Establishes Shareholder Rights Plan - More
- May 06, 2008 | Item | E-mail

Mana Mine Achieves Production Target - More
- May 06, 2008 | Item | E-mail

Mazorro and Oro Gold Confirm Gold Resource Potential at Cimarron, Mexico - More
- May 06, 2008 | Item | E-mail

Mediterranean announces final drill results from 2007 drill campaign at Corak - More
- May 06, 2008 | Item | E-mail

USCorp Submits Mining Plan of Operation for Picacho Salton Gold Property, California - More
- May 06, 2008 | Item | E-mail

Pelangio Advised of Drill Results From Detour Gold's Drilling Program at Detour Lake, Ontario (2.10 g/t Over 76.0 m in DG-07-264 & 2.26 g/t Over 69.0 m - More
- May 06, 2008 | Item | E-mail

Melkior Acquires More Nickel Claims on Gravity Anomalies - More
- May 06, 2008 | Item | E-mail

AuEx Ventures, Inc.: Drilling Resumes at Long Canyon - More
- May 06, 2008 | Item | E-mail

Uranium North Announces First Drill Program to Expand U3O8 Mineralization on Three Projects - More
- May 06, 2008 | Item | E-mail

Energy Fuels and "Royal-Lynx" Form Joint Venture to Explore for Arizona Strip Uranium Deposits - More
- May 06, 2008 | Item | E-mail

Bayswater Appoints Ricardo Campoy as Advisor - More
- May 06, 2008 | Item | E-mail

Mega Uranium Announces Closing of Energentia Resources Acquisition - More
- May 06, 2008 | Item | E-mail

IAMGOLD Reports Continued Success at 3.3 Million Ounce Westwood Project - "IAMGOLD Corporation ("IAMGOLD" or "the Company") (Toronto:IMG.TO - News)(NYSE:IAG - News)(BOTSWANA: IAMGOLD) is pleased to announce exploration results from the ongoing program at the Company's Westwood project. This advanced exploration project covers an area of 3 km long by 2.5 km depth and is located on strike east of the Company's Doyon Mine in the Abitibi region of Northern Quebec." More
- May 06, 2008 | Item | E-mail

Barrick Gold: Net Income Rises 29% to $514 Million ($0.59 per Share); Expanded Margins Increase Profitability in Q1 - "The Company reported first quarter net income of $514 million ($0.59 per share) and operating cash flow of $728 million ($0.83 per share) compared to a net loss of $159 million ($0.18 per share) and operating cash flow of $163 million ($0.19 per share) in the prior year period. Reported net income rose 29% compared to prior year adjusted net income of $398 million ($0.46 per share)(1) and included $29 million of post-tax special items that reduced income by $0.03 per share. Adjusting for these special items, earnings of $0.62 per share are a Company record. The realized gold price of $925 per ounce matched the average spot price for the quarter." More
- May 06, 2008 | Item | E-mail

Arian Silver Corporation: Private Placement to Raise Up to Cdn$ 3,000,000 Pricing Change - "Arian Silver Corporation (the "Company") (TSX VENTURE:AGQ - News; AIM:AGQ)(PLUS:AGQ)(FRANKFURT:I3A - News) announces a pricing change in relation to its previously announced (see press release of April 24, 2008) proposal to raise up to Cdn$3,000,000 by way of a non-brokered private placement. The Company now proposes to issue of up to 12,000,000 units of securities of the Company (each, a "Unit") at Cdn$0.25 per Unit." More
- May 06, 2008 | Item | E-mail

Paramount Gold and Silver Corp. Announces Drill Results That Extend 'Clavo 99' 100 Meters Along Strike at a Depth of 250 Meters at its San Miguel Project - "Drill hole SM-35 was drilled 50 meters below hole SM-20 in the southern part of 'Clavo 99' to test the depth and lateral extent of that mineralization. SM-35 intersected 1.85 meters of 9.57 g/t Au and 26 g/t Ag. The entire mineralized zone in Hole SM-35 is 17.44 meters wide and averages 1.84 g/t Au and 76 g/t Ag. The assays from SM-35 establish that the high grade mineralization in 'Clavo 99' extends to a depth of at least 250 meters below the surface and that it extends for a 100 meters south along strike at this depth (from hole SM-34). Clavo 99 continues to remain open at depth and along strike." More
- May 06, 2008 | Item | E-mail

Landslide kills 12 near Freeport mine in Indonesia - "Twelve people died in a landslide near a massive copper mine operated by Freeport-McMoran Copper & Gold in Indonesia's Papua province, but the firm's mining operations were unaffected, officials said on Tuesday." More
- May 06, 2008 | Item | E-mail

AngloGold Ashanti Results for the First Quarter 2008 - "AngloGold Ashanti reported adjusted headline earnings of $105m for the first quarter of 2008, significantly higher than the previous quarter, due to the improved gold price, tax credits and the absence of accounting adjustments that negatively affected earnings in the fourth quarter of 2007." More
- May 06, 2008 | Item | E-mail

AngloGold Ashanti Announces Significant Exploration Results at 100% Owned La Colosa Project in Colombia - "We are extremely pleased with exploration results in Colombia. La Colosa represents a major greenfields find, with further upside to increase its resource potential. Together with Gramalote, this discovery puts us in a strong position to benefit from our land holdings in Colombia and to continue building on the gold producing fundamentals in Colombia that make these such exciting projects." More
- May 06, 2008 | Item | E-mail

AngloGold adj earnings up, seeks $1.6 bln via rights - "South Africa's AngloGold Ashanti Ltd (ANGJ.J: Quote, Profile, Research), the world's third biggest gold producer, posted a jump in earnings and plans to raise around 11.9 billion rand ($1.6 billion) through a rights offer of shares.

The mining group said on Tuesday it would issue about 69.4 million new shares and use the cash to reduce its forward sales and increase exposure to the spot price of gold as well as funding new mines, mine development and exploration." More
- May 06, 2008 | Item | E-mail

- Chris Mullen, Gold Seeker Report

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