-- Posted 29 May, 2008 | | Source: SilverSeek.com

The Metals:

Gold rose slightly to $901.45 by late trade in Asia, but it then fell back off for most of trade in London and New York and ended about 0.5% off its low of $873.00 with a loss of 2.55%.  Silver rose over 1% to $17.56 by late trade in Asia, but it also fell off markedly in London and New York and ended near its low of $16.46 with a loss of 4.64%.

Euro gold fell to about €566, platinum lost $75 to $1989, and copper fell over 15 cents to about $3.57.

Gold and silver equities fell over 3% by early afternoon and remained near their lows into the close.

The Economy:

Tomorrow at 8:30AM EST brings Personal Income and Spending for April both expected at 0.2% and PCE Core Inflation expected at 0.1%.  At 9:45 is Chicago PMI for May expected at 48.5 and at 10AM is Michigan Sentiment for May expected at 59.5.

The Markets:

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

Oil bounced back from early lower prices after an astounding drop of 8.8 million barrels in oil inventories brought the price back near $133, but the cost per barrel soon fell back off and ended over $4 lower on the view that recent high prices are finally starting to cut into demand while the large decline was reportedly due to temporary delays along the Gulf Coast.  Total product demand was down slightly, jet fuel demand was down sharply, and gasoline demand was basically flat.  Gasoline inventories fell 3.2 million barrels, distillates rose 1.6 million barrels, and natural gas stocks rose 87 billion cubic feet.

The U.S. dollar index rose and treasuries fell after GDP did not come in lower than expected and did not have prior downward revisions.  This reduced worries about a recession and sent interest rates higher.  The yield on the 10-year note rose to its highest since December 2007.

The Dow, Nasdaq, and S&P rose on reduced recession worries and optimism over lower energy prices in the future.

Among the big names making news in the market today were Bear Stearns and JPMorgan, Costco, Sears, Heinz, MasterCard, and Bristol-Myers and Kosan Biosciences.

The Commentary:

“A Note on Interest Rates and the Fed PR Discount Rate:

The talk about the Fed raising the discount rate can only be correct if Bernanke wishes to execute what little is left of business activity, the housing market and the terminally damaged credit market.

Long rates are a product of inflationary expectations and the position of the dollar. The only reason the 30 year bond has held its long term uptrend line is because there are no 30 years bonds in a practical sense making jiggering the market an easy task.”- Jim Sinclair, JSMineset.com

“June Gold finished down 23.3 at 877.2, 17.3 off the high and 4.2 up from the low.

July Silver closed down 0.9 at 16.515. This was 0.005 up from the low and 0.755 off the high.

The gold market had to be disappointed on a number of fronts on Thursday. In addition to the ongoing rise in the US Dollar, the gold bulls were also confronted with a sharp and somewhat surprising reversal in oil prices, strength in US equity prices and perhaps most importantly what appeared to be a wave of selling in a host of physical commodity markets. With the crude oil market falling by as much as $9 per barrel off its all time high during the session one could also suggest that inflationary fears were being downgraded. It is also possible that sharply lower oil prices, a firmer Dollar and strong equity prices served to mitigate the flight to quality interest in the gold market. Finally the gold market had to be very disappointed with the magnitude of the slide in the quasi industrial metals markets as that would suggest that both the financial and the physical commodity market angles were negative during the trading session.

The silver market fell pretty much in sync with the gold market and the outside market forces were certainly an additive pressure to prices. In fact, another quasi upside breakout in the Dollar Index really seemed to turn up the heat on a host of commodities that have routinely relied on a soft Dollar. In the end, a slight improvement in the US economic outlook off lower oil and higher equities seemed to be of little benefit to the silver trade!”- The Hightower Report, Futures Analysis and Forecasting

GATA Posts:

Debt markets again flash warnings

Banks launch central clearer for derivatives

The Statistics:

As of close of business: 5//2008

Global Gold ETF Holdings

[WGC Sponsored ETF’s]

Note: Change in Total Tonnes from yesterday’s data: The JSE added 0.12 tonnes.

COMEX Gold Trust (IAU)

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

Silver Trust (SLV)

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

The Stocks:

South Africa’s power shortage, Banro’s (BAA) drill results, Orezone’s (OZN) updated feasibility study, Golden Cycle’s (GCGC) merger with AngloGold (AU), Lihir’s (LIHR) merger with Equigold (EQI.AX), Royal Gold’s (RGLD) dividend, Arian’s (AGQ.V) private placement, Oro Silver’s (OSR.V) property purchase, and Silvermex’s (SMR.V) drilling program 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:

Goldeye Explorations Limited-Sonia Property, Chile - More
- May 29, 2008 | Item | E-mail

Callinan Amends Fox River Agreement - More
- May 29, 2008 | Item | E-mail

Renforth Resources Inc. Completes a $942,000 Private Placement-Board of Directors Applauds Lead Director for His Contribution as They Accept His Resignation - More
- May 29, 2008 | Item | E-mail

Timmins Gold Corp.: $19,300,000 Financing Arranged - More
- May 29, 2008 | Item | E-mail

Royal Gold Announces Third Quarter Dividend - "ROYAL GOLD, INC. (Nasdaq: RGLD - News; TSX: RGL - News), the leading precious metals royalty company, today announced that its Board of Directors has declared its second quarter dividend of $0.07 per share of common stock. The dividend is payable on July 18, 2008 to shareholders of record at the close of business on July 3, 2008. The Company has paid dividends since 2000." More
- May 29, 2008 | Item | E-mail

Golden Cycle Gold Corporation Amends Merger Agreement With AngloGold Ashanti to Increase Merger Consideration and Plans for Special Meeting of Shareholders - "The special meeting of Golden Cycle shareholders, to consider, and vote upon, resolutions required to be approved to implement the Transaction, is planned to be convened June 30, 2008. The meeting will be held at the Elks Lodge, 367 North 3rd Street, Victor, Colorado at 10:00 a.m. local time. Should Golden Cycle shareholders approve these resolutions at the special meeting, the Transaction will then be implemented." More
- May 29, 2008 | Item | E-mail

Jasper Mining Corporation announces further high grade molybdenum results from four more holes on McFarlane property - More
- May 29, 2008 | Item | E-mail

Golden Goose reports a new 43-101 resource estimate for its Magino gold property - More
- May 29, 2008 | Item | E-mail

Hawk Disposes of Gila County, Arizona Uranium Claims - More
- May 29, 2008 | Item | E-mail

Sabina Silver Appoints Anthony P. Walsh as New President and CEO - "Sabina Silver Corporation (the "Company") (CDNX:SBB.V - News) is pleased to announce today that Mr. Anthony P. Walsh has been appointed President & CEO of the Company and has also joined as a director of the Board. Mr. Walsh will start effective June 1, 2008." More
- May 29, 2008 | Item | E-mail

Orebodies Identifies Several High Priority Targets and Provides Exploration Update - More
- May 29, 2008 | Item | E-mail

Solid closes $190,450.00 private placement - More
- May 29, 2008 | Item | E-mail

Victory Nickel Board Approves Ordering Long Lead-Time Equipment for Minago - More
- May 29, 2008 | Item | E-mail

Starfire options its Lordeau Uranium Property to Santos Resources Corp. - More
- May 29, 2008 | Item | E-mail

Amex intersects 14.8 g/t Au over 4.1 meters and 138.7 g/t Au on 1.0 meter in two zones at Perron - More
- May 29, 2008 | Item | E-mail

Erdene Name Change Approved at Annual and Special Meeting - More
- May 29, 2008 | Item | E-mail

Sirios' Partner Reports Encouraging Lead and Petrographic Results on the UPINOR Uranium Property (Quebec) - More
- May 29, 2008 | Item | E-mail

Vior Inc.: Latest Results of First Drilling Program on Buteux-Fecteau Property - More
- May 29, 2008 | Item | E-mail

Millstream's Potter Yields an Initial Resources Estimate of Over 3 Million Tonnes Indicated Along with Over 2 Million Tonnes Inferred - More
- May 29, 2008 | Item | E-mail

Carlisle discusses impact of resource estimate - More
- May 29, 2008 | Item | E-mail

Medoro Resources Announces 2008 First Quarter Results, AIM De-Listing - More
- May 29, 2008 | Item | E-mail

Majescor's Lac Mantouchiche Uranium Drill Intersection Improves to 0.215% U3O8 Over 18.5 M: Drill Rig Mobilized to South Rae, Ungava, Quebec - More
- May 29, 2008 | Item | E-mail

Bolero Resources Corp. - Arcadia drilling commences - More
- May 29, 2008 | Item | E-mail

War Eagle Mining Company Inc.: Tres Marias Intercepts 7.2 Meters (23.6 ft) of 325 g/tonne Germanium & 22.29% Zinc - More
- May 29, 2008 | Item | E-mail

Southern Hemisphere Mining: Continued Reconnaissance Reverse Circulation Drilling at the Company's El Arrayan Project in Chile Has Intersected Copper - More
- May 29, 2008 | Item | E-mail

Cadillac Mining Acquires Herd Dome Copper Prospect In British Columbia - More
- May 29, 2008 | Item | E-mail

DIOS: Encouraging Lead and Petrographic Results on the UPINOR Uranium Property (Quebec) - More
- May 29, 2008 | Item | E-mail

Silver Shield Extends Discovery Zone at Welsh Silver Mine Property; Intersects 2,589 g/t (75.6 opt) Silver - More
- May 29, 2008 | Item | E-mail

NQ Exploration Inc.: Options Granted to Officers and Directors - More
- May 29, 2008 | Item | E-mail

FNX Mining Operating and Exploration Update - More
- May 29, 2008 | Item | E-mail

Tombstone Exploration Corporation Engages Layne Christensen Company for Drilling Program - More
- May 29, 2008 | Item | E-mail

Santa Fe Gold Reports Progress on Summit Silver-Gold Mine - More
- May 29, 2008 | Item | E-mail

Skybridge Development Corp. Commences Drilling on Blue Caribou Project - More
- May 29, 2008 | Item | E-mail

Atna Resources Reports First Quarter 2008 Results - More
- May 29, 2008 | Item | E-mail

Rockcliff Signs 15,000 meter Drill Contract - More
- May 29, 2008 | Item | E-mail

Romarco Intercepts 29 Meters of 9.2 g/t and 24 Meters of 7.7 g/t at Haile - More
- May 29, 2008 | Item | E-mail

Underworld Announces Drilling Underway at Golden Progress and Joker Projects, New Zealand - More
- May 29, 2008 | Item | E-mail

Zazu's Drill Program Permitted at Lik Zinc-Lead-Silver Deposit - More
- May 29, 2008 | Item | E-mail

Rare Element Reports on Gold Metallurgical Test Results - More
- May 29, 2008 | Item | E-mail

Pelangio Advised of Drill Results From Detour Gold's Drilling Program at Detour Lake, Ontario (4.11 g/t over 43.0 m in Gap Zone and 8.86 g/t over 17.0 m in West - More
- May 29, 2008 | Item | E-mail

Third drill added to test primary Geraldton Project gold targets: more surface work, drilling scheduled for Northern Empire - More
- May 29, 2008 | Item | E-mail

Romios Gold's Geophysical Surveys Outline Anomalies Adjoining the North West Zone at Galore Creek in North Western British Columbia - More
- May 29, 2008 | Item | E-mail

Hana Mining Adds 800 Meters of Strike Length at Ghanzi Copper-Silver Project in Botswana - More
- May 29, 2008 | Item | E-mail

Detour Gold Reports More Consistent Results From 2007 Phase II Drilling at Its Detour Lake Property in Northern Ontario, Canada - More
- May 29, 2008 | Item | E-mail

General Moly Places Haul Truck Fleet Order with Caterpillar - More
- May 29, 2008 | Item | E-mail

Colossus Minerals Drills High Grade Gold-Platinum-Palladium at Serra Pelada - More
- May 29, 2008 | Item | E-mail

Newcrest Signs Letter of Intent on Miranda's Horse Mountain Project - More
- May 29, 2008 | Item | E-mail

S.African power crisis will last years - Eskom head - "The power shortage that has slowed South Africa's growth and frightened investors will go on for years, the head of state-owned electricity utility Eskom warned on Thursday.

Eskom [ESCJ.UL], which produces about 95 percent of South Africa's electricity, has rationed power through a process called load-shedding since January, when the national grid virtually collapsed and millions were plunged into darkness." More
- May 29, 2008 | Item | E-mail

Etruscan drilling expands resource potential near Youga Gold Mine - More
- May 29, 2008 | Item | E-mail

Eaglecrest Appoints Mineral Finance Expert to Board - More
- May 29, 2008 | Item | E-mail

Acadian Mining Corporation announces proposed acquisition of interest in Fifteen Mile Stream gold property - More
- May 29, 2008 | Item | E-mail

Pacific Comox Resources Ltd.: Indicated Resource of 5.9 Million Tonnes Grading 0.34% Copper and 0.039% Molybdenum Reported for South Zone at Ryan Lake - More
- May 29, 2008 | Item | E-mail

Banro Intersects 16.60 metres grading 8.03 g/t Au and 47 metres grading 2.38 g/t Au in Pre-Feasibility Drilling at Twangiza Gold Project - "Banro Corporation ("Banro" or the "Company") (AMEX - "BAA"; TSX - "BAA") is pleased to announce final results from the Company's pre-feasibility, core drilling program at its wholly-owned Twangiza project, located on the Twangiza-Namoya gold belt in the Democratic Republic of the Congo (the "DRC")." More
- May 29, 2008 | Item | E-mail

Arian Silver Corporation: Non-Brokered Private Placement Completed - "The placement has raised Cdn$3,023,000 and comprised 12,092,000 units of the Company (each, a "Unit") at Cdn$0.25 per Unit (the "Offering"). Each Unit consists of one common share of the Company and one-half of a common share purchase warrant. Each whole warrant (each, a "Warrant") entitles the holder thereof to acquire one common share (each, a "Warrant Share") for a period of 18 months following from the closing of the placement at an exercise price of Cdn$0.35 per Warrant Share, provided that in the event that the closing price of the common shares of the Company on the TSX Venture Exchange exceeds Cdn$0.65 for any period of twenty (20) consecutive trading days, the Company may accelerate the expiry date of the Warrants by providing notice to the Warrant holders, in which case, all unexercised Warrants will expire thirty (30) days after such notice." More
- May 29, 2008 | Item | E-mail

Prominent Labrador Uranium Geologist Joins Aurora's Management Team - More
- May 29, 2008 | Item | E-mail

Energy Fuels Completes Transaction With Uranium One for Acquisition of Key Uranium Resource Acreage at Whirlwind Mine; Adds 6600 Acres of Prospective Acreage - More
- May 29, 2008 | Item | E-mail

Bluerock Anounces Phase I Drill Results Including 2.38% eU3O8 Over 1.5ft at Sunbeam Uranium Mine - More
- May 29, 2008 | Item | E-mail

CanAlaska Uranium Completes $3.71 mil. Flow-Through Private Placement - More
- May 29, 2008 | Item | E-mail

Oro Silver Acquires Majority Interest in El Compas Mine, Zacatecas, Mexico - "Oro Silver Resources Ltd. ("Oro Silver") (TSX VENTURE:OSR - News) announces that it, through its 100% owned Mexican subsidiary, completed the purchase of a 51% interest in the El Compas mining property, located four kilometres south of Zacatecas, Mexico." More
- May 29, 2008 | Item | E-mail

Silvermex Resources Ltd.: 3,700 Meter Core Drilling Program Commences on the San Marcial Silver Property - "Silvermex Resources Ltd. ("Silvermex") (CDNX:SMR.V - News) announces that two diamond drills have arrived at the Company's San Marcial Property in Sinaloa to commence a fourteen hole, 3,700 meter core drilling exploration program. Silvermex has an option to acquire a 100% interest in the Property. The decision to proceed was supported by the results from the recently completed surface exploration program consisting of geological mapping, surface sampling and re-logging of the core from previous drill programs." More
- May 29, 2008 | Item | E-mail

Orezone Improves Essakane Economics With Updated Feasibility - "Orezone Resources Inc. (Toronto:OZN.TO - News)(AMEX:OZN - News) is pleased to announce an update to the NI 43-101 compliant Definitive Feasibility Study ("DFS") for the Essakane Project in Burkina Faso, West Africa that was previously announced in September 2007. The NI 43-101 document, prepared by GMining in collaboration with Minproc and Snowdon, will be filed on Sedar within the next 30 days." More
- May 29, 2008 | Item | E-mail

Equigold and Lihir Gold Ltd (LGL): All Regulatory Approvals Received - "Equigold NL ("Equigold") (ASX:EQI.AX - News) and Lihir Gold Ltd (Toronto:LGG.TO - News)(ASX:LGL.AX - News)(NasdaqGS:LIHR - News) ("LGL") and are pleased to announce that all regulatory approvals required as conditions precedent pursuant to the Merger Implementation Agreement have been received." More
- May 29, 2008 | Item | E-mail

Bancroft Uranium Initial Drilling Results, Monmouth Uranium Project - More
- May 29, 2008 | Item | E-mail

- Chris Mullen, Gold Seeker Report

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