-- Posted 23 June, 2008 | | Source: SilverSeek.com

The Metals:

Gold and silver saw over 0.5% gains at as high as $907.40 and $17.51 in Asia and traded near unchanged in early London trade, but they then plummeted at the New York open and fell to as low as $875.55 and $16.542 by about 9AM EST.  Both metals then bounced slightly higher into the close, but they still ended with losses of 1.88% and 3.42% as the dollar bounced higher on weak data out of Europe that suggests the ECB might not be as aggressive in raising interest rates.

Euro gold fell to about €570, platinum lost $15 to $2038.50, and copper fell a couple of cents to about $3.81.

Gold and silver equities fell about 2% at the open, but they then climbed back higher for the rest of trade and ended modestly higher despite the poor performance of the metals earlier in the day.

The Economy:

There were no major economic reports today.  Tomorrow at 10AM EST is the Consumer Confidence report for June expected at 56.0.

The Markets:

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

Oil initially fell on profit taking after the Saudis officially announced an increase in production to 9.7 million barrels per day, but the market is wary they have the capacity to increase any further and oil ended higher on the day as a result of continued supply concerns.  Also troubling is that Saudi Arabia does not produce the light sweet crude needed for gasoline which comes from politically unstable areas like Nigeria.  The sour crude produced by Saudi Arabia needs more refining which isn’t necessarily available or quickly solved due to the lengthy process of commissioning new plants.  The prospect for more violence or even new wars in various parts of the world as well as the possibility for damaging hurricanes seem to be the most worrisome aspects for the market in the next few months.

The U.S. dollar index rose as the euro dropped on falling German business confidence.

Treasuries and the Dow, Nasdaq, and S&P remained near unchanged despite higher oil prices as most are waiting for the FOMC policy announcement on Wednesday.

Among the big names making news in the market today were GM, Citigroup, Bunge and Corn Products International, BCE, and Walgreen.

The Commentary:

“The gold price was reacting only to the U.S. $ moves and on the smallest of moves.   It ignored what was positive for gold, the Saudi Arabia meeting on oil, which did nothing to lower the oil price.   However, it is very nervous on the smallest $ story now.   Even the speculators lowered their exposure to precious metal moves last week, so there is an air of expectancy in the market now.”- Julian D.W. Phillips, www.goldforecaster.com

“August Gold finished down 16.5 at 887.2, 15.8 off the high and 8.2 up from the low.

July Silver closed down 0.607 at 16.79. This was 0.19 up from the low and 0.42 off the high.

The gold market was clearly off balance on Monday morning, as it managed to peak above the unchanged level but was never able to rise above the Friday highs. With the Dollar apparently springing to life in the wake of a slightly better than expected but negative Chicago Fed National Activity Index reading, it was clear that the macro economic bar among the world's leading economies was set very low. In other words, the Dollar only had to avoid a patently discouraging scheduled reading to gain the upper hand on Monday morning. As suggested in the mid day coverage the gold market was apparently biased toward the downside tilt as a potentially supportive minor supply side production disruption in Ghana was seemingly totally discounted. In other words, the market seems to be fixated on the currency impact and perhaps is off balance off concerns of slumping physical and investment demand.

The magnitude of the washout in silver probably surprised some traders but in retrospect the recent spec and fund long reading in the silver market highlighted a market that was somewhat vulnerable from a technical perspective. With the gold market soft, the industrial metals markets off balance and the outlook for the global economy lackluster one could have pointed to a number of fundamental reasons for the concentrated washout. However, some bulls were emboldened by the fact that the silver market seemed to garner at least some initial support from the May and June consolidation lows around $16.64.”- The Hightower Report, Futures Analysis and Forecasting

GATA Posts:

Asian Clearing Union to give euro equality with dollar

Treasury Department has at least contemplated gold swaps

An oily deception about the dollar

The Statistics:

As of close of business: 6/20/2008

Global Gold ETF Holdings

[WGC Sponsored ETF’s]

Note: Change in Total Tonnes from yesterday’s data: SPDR added 1.54 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:

Paramount’s (PZG) assay results, Gold Fields’ (GFI) halted mine project, Gammon Gold’s (GRS) production forecast, Great Basin’s (GBN) exploration drilling, Exeter’s (XRA) drill results, Timberline’s (TLR) increased drilling revenue forecast, Midway’s (MDW) drill results, Sterling’s (SRLM.OB) bridge loan, Great Panther’s (GPR.TO) drill results, Golden Tag’s (GOG.V) and ECU’s (ECU.TO) drill results, and Silvercorp’s (SVM.TO) drill results 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:

Terra Ventures Inc.: Drilling Commences at Midwest Northeast Project - More
- June 23, 2008 | Item | E-mail

Bokan Mountain Drill Program in Progress - More
- June 23, 2008 | Item | E-mail

Abacus Mining and Exploration Corp.: Ajax Joint Venture Area Drilling Continues to Expands the Resources Area - More
- June 23, 2008 | Item | E-mail

Avanti Mining Inc. Appoints New Director - More
- June 23, 2008 | Item | E-mail

Sterling Mining Closes $2.4 Million Bridge Loan - "The Company entered into a bridge term loan with a group of lenders in the principal amount of $2,400,000. After a deduction for a reserve of $216,000 for interest and legal expenses, a payment to the lender for services of $144,000 and recording and other costs, the net proceeds to the Company were $2,021,740. The principal amount of the loan is due 120 days following the date the loan was made and bears interest at the rate of 24% per annum. Interest is payable monthly beginning July 1, 2008. The loan is secured by certain patented mining claims, property, equipment, inventory, leases (excluding the Sunshine Mine lease) and other personal property." More
- June 23, 2008 | Item | E-mail

Reunion Gold Corporation Announces its Financial Results for the Year Ended March 31, 2008 - More
- June 23, 2008 | Item | E-mail

Typhoon Reforests and Sows at Fayolle - More
- June 23, 2008 | Item | E-mail

Cangold Appoints New Director, Announces Resignations - More
- June 23, 2008 | Item | E-mail

Paramount Announces Assay Results Under the Strategic Alliance With Mexoro From the Cieneguita Mine Including 59.5 Meters of 1.31 g/t Gold and 60.38 g/t Silver - "The assays are from three additional holes from the Cieneguita project, located in Chihuahua, Mexico. Drill holes CI-21 to CI-24 were part of the recently completed drill project at Cieneguita, consisting of 31 core holes totaling 7,166 meters. The Company has also included the complete assay results for hole CI-21 (partially reported results from CI-21 in a press release dated May 21, 2008 included 74 meters of 1.72 g/t gold and 119.77 g/t silver)." More
- June 23, 2008 | Item | E-mail

Great Panther Exposes Excellent Grades at Topia Ag-Pb-Zn Mine - "GREAT PANTHER RESOURCES LIMITED (Toronto:GPR.TO - News) is pleased to announce that ongoing underground development at the Company's 100% owned Topia Mine in Durango, Mexico continues to expose high grade silver, gold, lead and zinc mineralization along strike and to depth on several of the veins that are currently being mined." More
- June 23, 2008 | Item | E-mail

Silver Reserve Corp. - New President Appointed - More
- June 23, 2008 | Item | E-mail

Nuinsco Announces Management Appointments - More
- June 23, 2008 | Item | E-mail

Gold Fields halts Ghana mine project after "invasion" - "The Ghana subsidiary of South Africa's Gold Fields (GFIJ.J: Quote, Profile, Research, Stock Buzz) has suspended a planned resumption of underground mining at its Damang site after illegal artisanal miners "invaded" the site, company officials said on Monday." More
- June 23, 2008 | Item | E-mail

Ecuador assembly head quits in constitution rift - "The head of the assembly that is rewriting Ecuador's constitution offered to resign on Monday, exposing a rift in the leftist government as it seeks to overhaul institutions to bolster the president's power." More
- June 23, 2008 | Item | E-mail

East West Resource Corporation Options Max Nickel-Copper-PGE Project to Northern Shield Resources - More
- June 23, 2008 | Item | E-mail

Bearclaw Capital Corp. Commences Exploration Programs at Wakeham Basin and James Bay - More
- June 23, 2008 | Item | E-mail

Hard Creek Advances Development of the Turnagain Mill Flow Sheet - More
- June 23, 2008 | Item | E-mail

Pancontinental Uranium Enters Into Uranium Joint Venture in Burkina Faso - More
- June 23, 2008 | Item | E-mail

United Reef Commences Summer Exploration Programs - More
- June 23, 2008 | Item | E-mail

New Jersey Mining Company Stakes Giant Ledge Prospect - More
- June 23, 2008 | Item | E-mail

First Metals Acquires Land Package - More
- June 23, 2008 | Item | E-mail

Tova Ventures Inc. Announces Qualifying Transaction - More
- June 23, 2008 | Item | E-mail

Millrock Seeks to Expand Historical Gold Resource at the Bluff Prospect, Seward Peninsula, Alaska - More
- June 23, 2008 | Item | E-mail

Petrographic and Age Determinations for Intrusives at Romios Gold's Newmont Lake Property Suggest Intrusives are Close in Age to Galore Creek Deposit - More
- June 23, 2008 | Item | E-mail

Alberta Star Receives Permission to Drill for 2008 From the Chief Inspector of Mines - More
- June 23, 2008 | Item | E-mail

PC Gold More Than Doubles Size of Pickle Crow Gold Property, Now Holds Commanding Position in Pickle Lake Camp Core Areas - More
- June 23, 2008 | Item | E-mail

Stroud Resources Engages CHF Investor Relations - More
- June 23, 2008 | Item | E-mail

Mengold's Drill Campaign at Burchell Lake in Shebandowan Hits Gold and Copper - More
- June 23, 2008 | Item | E-mail

Genco Resources' Largest Shareholder Calls for Separation of Genco From Andover - More
- June 23, 2008 | Item | E-mail

HudBay Minerals and Skye Resources Announce Proposed Business Combination - More
- June 23, 2008 | Item | E-mail

Initial Drilling at INV's Brazilian Damolandia Property Outlines Disseminated Nickel Sulphide Mineralization - More
- June 23, 2008 | Item | E-mail

Mexoro Minerals Announces Drill Results from the Cieneguita Project - More
- June 23, 2008 | Item | E-mail

Goldrea Resources Corp. and Molycor Gold Corp.: Drilling Complete on Near Surface Target on Empress Molybdenum Property - More
- June 23, 2008 | Item | E-mail

Northland Restates Preliminary Economic Assessment, Maintains Robust Project Valuation - More
- June 23, 2008 | Item | E-mail

Glass Lewis Slams Genco Resources, Offers Partial Endorsement to Dissidents - More
- June 23, 2008 | Item | E-mail

United Uranium Corp. applying to extend annual general meeting date - More
- June 23, 2008 | Item | E-mail

Gammon Gold Forecasts the Second Quarter Production to be the best in the Company's history, from 17% to 24% increase over Q1 and 45% to 57% increase over Q4 - "Gammon advised today that Q2 2008 is continuing to build on the significant improvements achieved in Q1 2008 such that forecasted production and cash flow performance are expected to outperform Q1 2008. The strength of the operating cashflow continues to fund 100% of the expansion capital, the new aggressive exploration program and allow Gammon to continue with its accelerated debt repayment program." More
- June 23, 2008 | Item | E-mail

Golden Tag Resources Ltd. and ECU Silver Mining Inc.: Broad Zones of Massive and Semi-Massive Sulphide Mineralization Encountered at San Diego Property, Mexico - "Golden Tag Resources Ltd. (TSX VENTURE:GOG - News; "Golden Tag") and ECU Silver Mining Inc. (TSX:ECU - News; "ECU") are pleased to report results from two holes, SD-07-24 and SD-08-33, that were recently completed as part of the exploration program at the jointly held San Diego Property in Durango State, Mexico. Results from hole SD-08-33 are considered the most encouraging results reported to date from the property and suggest potential for the discovery of a deep seated massive sulphide replacement (Mantos-type) deposit." More
- June 23, 2008 | Item | E-mail

A New Vein System Discovered on Great Basin Gold's Hollister Property - "Great Basin Gold Ltd. (Toronto:GBG.TO - News)(AMEX:GBN - News)(JSE: GBG) ("Great Basin" or the "Company") announced today that surface exploration drilling has discovered a previously unrecognized vein system in the Hatter Graben area, located approximately two kilometers from the current decline infrastructure at its Hollister Development Project in Nevada, USA." More
- June 23, 2008 | Item | E-mail

Exeter Resource Corporation: Caspiche Drilling Indicates Extent of Gold-Copper Porphyry System - "Exeter Resource Corporation (CDNX:XRC.V - News)(AMEX:XRA - News)(Frankfurt:EXB.F - News) ("Exeter" or the "Company") is pleased to report that results from recent drilling at Caspiche, Chile, indicate that the target deposit has a minimum footprint of some 600 metres (1,968 feet) by 500 metres (1,640 feet), and remains open for extension to the east, west, south and to depth." More
- June 23, 2008 | Item | E-mail

Silvercorp Metals Inc.: Drilling Intercepts 1.62 m Interval of Eruptive Breccia - "Silvercorp Metals Inc. (Toronto:SVM.TO - News) ("Silvercorp") is pleased to provide an update on the exploration program at the HPG mine in the Ying Silver Mining Camp for the period from June 2007 to May 2008. The program is aimed at exploring the veins and mineralization along strike and dip, converting inferred resources to indicated and measured resources categories, expanding inferred resources at depth and along strike, and discovering and defining additional mineralized veins in the area." More
- June 23, 2008 | Item | E-mail

Timberline Forecasts Increased Drilling Revenues - "Timberline Resources Corporation (AMEX:TLR - News) today provided an update of its drilling operations, including revenue forecasts for its third fiscal quarter, progress of its management transition, the anticipated elimination of its preferred shares, and the status of its proxy filing. Timberline's contract drilling subsidiaries, Kettle Drilling, Inc. (``Kettle'') and World Wide Exploration, S.A. de C.V. (``World Wide''), specialize in underground core drilling services in support of active mining operations and advanced exploration projects." More
- June 23, 2008 | Item | E-mail

Midway Intercepts High-Grade Intervals Within 135 Feet of 0.086 opt Gold at Spring Valley - "Midway Gold Corp. (the "Company") (CDNX:MDW.V - News)(AMEX:MDW - News) intercepts significant gold in its ongoing 2008 drilling program in the North Hill target at the Spring Valley project, Nevada. Assay results include multiple intercepts in drill hole SV08-413 which hit 5 feet of 0.983 ounces per ton (opt) gold within 135 feet of 0.086 opt gold followed by 5 feet of 0.866 opt gold within 60 feet of 0.087 opt gold and a third intercept of 55 feet of 0.042 opt gold. This mineralization is contiguous with intercepts of 90 feet of 0.051 opt gold in SV08-384 and 115 feet of 0.021 opt gold in SV08-379." More
- June 23, 2008 | Item | E-mail

Mining companies - paying more bucks for their bang - "These are boom times for mining companies but the big profits are being eaten into not only by spiraling energy costs but suddenly rising prices for the explosives used to blast into the rocks." More
- June 23, 2008 | Item | E-mail

Venezuela puts nation's interests first in mining - "Venezuela's environment minister said Saturday that the government will put national interests first in the mining sector and forbid mining in a biodiverse forest reserve that is home to two of the country's largest gold concessions." More
- June 23, 2008 | Item | E-mail

- Chris Mullen, Gold Seeker Report

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