-- Posted 16 July, 2008 | | Source: SilverSeek.com

The Metals:

Gold and silver rose roughly 0.5% to $981.25 and $19.09 by about 9AM EST in New York before they fell to as low as $957.50 and $18.605 by a little after 11AM EST, but they then rallied back higher into the close and ended with losses of just 1.6% and 1.13%.

Euro gold fell to about €607, platinum lost $50 to $1924.50, and copper fell nearly 5 cents to about $3.67.

Gold and silver equities fell over 3% by late morning before they rebounded a bit, but they still ended with over 2% losses.

The Economy:

While Net Foreign Purchases fell to just $67.0 billion in May, net overall U.S. capital flows dropped from an inflow of $61.6 billion in April to a surprising outflow of $2.5 billion in May.  CPI was the highest monthly jump since 1982.

FOMC minutes from their June 25^th meeting in which they held interest rates at 2.0% showed that members were increasingly worried about both a slowing economy and rising inflation and the battle over what do with interest rates intensified as a result, but with financial instability increasing in the three weeks since that meeting the market is no longer expecting any kind of interest rate hike anytime soon after previously expecting an eventual increase of 50 basis points at the further end of the curve.

Tomorrow at 8:30AM EST brings Initial Jobless Claims for 7/12 expected at 380,000, Building Permits for June expected at 965,000, and Housing Starts expected at 960,000.  At 10AM is the Philadelphia Fed survey for July expected at -15.0.

The Markets:

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

Oil added to yesterday’s huge losses after inventories built more than expected across the board and demand was reported to be 2% below last year’s level.  Crude inventories built 3.0 million barrels, gasoline inventories built 2.4 million barrels, distillate inventories built 3.2 million barrels, and refinery utilization rose 0.3% to 89.5%.

The U.S. dollar index rose and treasuries fell as interest rates rose on the higher expected CPI number that added to yesterday’s inflation worries spurred by the higher than expected PPI number.

The Dow, Nasdaq, and S&P rose throughout most of trade and ended over 2% higher as oil fell markedly for the second day in a row and Wells Fargo came out with a better than expected earnings report and raised hopes about the health of the financial companies.

Among the big names making news in the market today were Cleveland-Cliffs and Alpha Natural, Wells Fargo, and Delta.

The Commentary:

“Dear Friends,

It was amusing reading the wire service commentary attempting to explain the drop in gold this morning.

One provider stated that gold declined because Bernanke said that inflation is too high and is a top priority for the US government. Oh sure it is! And to show how serious it is, the Fed is going to immediately begin a rate hike cycle in which they will add 100 basis points before the end of the year is out. Of course, they will be sure to do just that while the feds bail out FRN and FRE and while the FDIC attempts to clean up the mess at Indy Mac. Don't forget Washington Mutual whose share price is trading closer to $4.00 than the $44 it was trading at a year ago. Yes indeed, that is just what the financial stocks ordered - a hawkish Fed talkfest! Meanwhile they are forced to print Dollars like candy wrappers to hold things together! I am sure China and the rest of the sovereign wealth funds are thrilled.

Just where do some of these people think the US government is going to get the money to bail out Fannie and Freddie and to continue funding the FDIC which is going to be leaking like a sinking ship at the rate some of these financial institutions could very well begin failing. For those of you who remember the disco craze of the 70's with KC and the Sunshine Band -just take their hit song, "Shake, Shake, Shake" and change the lyrics to, "Print, Print, Print, - Print, Print, Print, - Print more Dollars" and you have it!

What served to knock gold lower was the DOE report showing a 3 million barrel build in crude. That derailed oil prices which then saw the Dollar move higher and the US equity markets rebound smartly. The result was pressure on gold and most other commodities as the hedge fund algorithms kicked in on account of the strength in the Dollar. It's all computer algorithms folks! The Dollar goes up - commodities go down. There is no human analysis in this other than the fact that was the way the computerized systems were programmed.”- Dan Norcini, More free commentary at JSMineset.com

“August Gold finished down 16 at 962.7, 18.8 off the high and 3.7 up from the low.

September Silver closed down 0.208 at 18.805. This was 0.015 up from the low and 0.38 off the high.

The gold bulls saw a number of negative reversals on Wednesday, with US numbers seemingly improving and the Dollar bouncing. With a sharp downside continuation in oil prices it also seemed as if some flight to quality longs in gold decided to move to the sidelines. With at least an initial favorable reaction in the US stock market to the better data and lower oil prices, one certainly gets the impression that some of the uncertainty in the marketplace has been reduced and that has recently been the hallmark of the bull camp. In fact, given the recent tight positive correlation between gold and energy prices, the significant breakdown in energy prices should not be taken lightly.

In addition to a partially overbought condition around the recent highs, the silver market has seen a sudden shift in outside market influences most of which seem to be favoring the bear camp. In addition to a slight recovery attempt in the Dollar, the silver trade was also confronted with sagging oil and rising equity prices. With platinum, copper and gold prices all weak on Wednesday, the silver market seemed to be taking part in a complex wide slide.”- The Hightower Report, Futures Analysis and Forecasting

GATA Posts:

Short selling banned for brokerage stocks, not mining stocks

The Statistics:

As of close of business: 7/15/2008

Global Gold ETF Holdings

[WGC Sponsored ETF’s]

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

COMEX Gold Trust (IAU)

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

Silver Trust (SLV)

 Note: Change in Total Tonnes from yesterday’s data: 61.53 tonnes were added to the trust.

The Stocks:

South Africa’s strikes, Midway’s (MDW) joint venture with Kinross (KGC), Gammon Gold’s (GRS) board appointment, Banro’s (BAA) Bankable Feasibility Study plans, Harmony’s (HMY) joint venture project in Papua New Guinea, Timberline’s (TLR) SMD acquisition update, Paramount’s (PZG) drill results, Kirkland’s (KGI.TO) increases in reserves and resources, Silvercorp’s (SVM.TO) normal course issuer bid update, MAG’s (MVG) assay results, Silver Standard’s (SSRI) expanded silver resources, and Tumi’s (TM.V) assay 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:

Midway Gold Corp.: Kinross Enters Option to Joint Venture Midway's Thunder Mountain Project - "Midway Gold Corp. ("Midway") (CDNX:MDW.V - News)(MDW - News) is pleased to announce that Kinross Gold Corporation (KGC - News) has entered into an exploration and option to joint venture agreement by which they can earn a 75% interest in Midway's 100% owned Thunder Mountain project, in Nye County, Nevada." More
- July 16, 2008 | Item | E-mail

Noront Options Out the Inner Northern Rim Property to Passport Metals Inc. - More
- July 16, 2008 | Item | E-mail

Richview Resources Inc. Announces Its 2008 Summer Work Program on the Thierry Mine Property Near Pickle Lake, Ontario - More
- July 16, 2008 | Item | E-mail

Gammon Gold Inc. ("Gammon") (TSX:GAM and AMEX:GRS): announces the following: The Appointment of George Elliott to the Gammon Board of Directors - "Mr. Elliott is a seasoned business leader with 35 years of experience in legal affairs and corporate finance throughout a variety of industries. Most recently, from 2000 to 2007, Mr. Elliott held the roles of Chairman and CEO for Titanium Corporation Inc. Prior to this, Mr. Elliott was senior counsel at the law firm Gowling Lafleur Henderson. Mr. Elliott has also served as an Executive Vice President of MCAP Financial, which manages over C$20 billion in mortgage investments for Canadian financial institutions." More
- July 16, 2008 | Item | E-mail

B2Gold Corp. Issue of Shares - More
- July 16, 2008 | Item | E-mail

Mainstream Minerals Appoints Lawrence Shewchuk, Director as President & CEO - More
- July 16, 2008 | Item | E-mail

Wallbridge Mining to Form $5M Joint Venture with Impala Platinum on Parkin Offset Properties in Sudbury - More
- July 16, 2008 | Item | E-mail

Kola Mining Closes $10,000,000 Non-Brokered Private Placement - More
- July 16, 2008 | Item | E-mail

Durango Begins 2008 Drill Program at Hastings Copper Gold Project, B.C. - More
- July 16, 2008 | Item | E-mail

Mengold Awards Incentive Stock Options - More
- July 16, 2008 | Item | E-mail

Gold World Resources to Perform Due Diligence on 2nd Chinese Gold Producer Jiguanshan Mining Company, Inner Mongolia, China - More
- July 16, 2008 | Item | E-mail

2008 Exploration to Begin on Trade Winds' British Columbia Copper and Gold Projects - More
- July 16, 2008 | Item | E-mail

Los Andes Copper Reports Significant Increase of Indicated Resources in an Updated Mineral Resource Estimate for the Vizcachitas Copper-Molybdenum Project - More
- July 16, 2008 | Item | E-mail

Silvercorp Metals Inc.: Update on Normal Course Issuer Bid - "Silvercorp Metals Inc. (Toronto:SVM.TO - News) ("Silvercorp"), announced that to date it has acquired 872,500 of its common shares through the facilities of the TSX Exchange. All common shares repurchased will be cancelled." More
- July 16, 2008 | Item | E-mail

Mustang Announces Increase to Brokered Financing - More
- July 16, 2008 | Item | E-mail

Assay Results From Initial Exploratory Drilling of Flag Resources (1985) Limited's Large mineralized Quartz Diorite Discovery - More
- July 16, 2008 | Item | E-mail

Full Metal Intersects 7.7 Meters of 12.7% Zn, 15.6% Pb and 259.6 g/t Ag at Fortymile Property, AK - More
- July 16, 2008 | Item | E-mail

Silver Bear Announces Closing of the Private Placement with Alfa Group Consortium - More
- July 16, 2008 | Item | E-mail

Pro-Or: Menarik Property-Exploration Update - More
- July 16, 2008 | Item | E-mail

Fletcher Nickel encounters 0.57% Nickel over 12 metres within 118 metres grading 0.29% Nickel at a 700-metre step out at Texmont - More
- July 16, 2008 | Item | E-mail

Atikwa Minerals Corporation-News Release - More
- July 16, 2008 | Item | E-mail

Ucore Uranium Reports High Grade Rare Earth Drill Results From Lost Pond - More
- July 16, 2008 | Item | E-mail

Queenston and Kirkland Lake Gold Report a High Grade Mineral Resource on the South Claims JV - More
- July 16, 2008 | Item | E-mail

First Exploration Program With Agnico-Eagle on Midland's James Bay Gold Properties - More
- July 16, 2008 | Item | E-mail

Banro moves ahead with Bankable Feasibility Study of Twangiza and outlines intention to pursue a heap leach option at Namoya - "Banro Corporation ("Banro" or the "Company") (AMEX - "BAA"; TSX - "BAA") is pleased to announce that, based on the encouraging results of the Pre-Feasibility Study of its wholly-owned Twangiza gold project as announced on July 7, 2008, the Company plans to move aggressively toward completion of a Bankable Feasibility Study of Twangiza by December 2008." More
- July 16, 2008 | Item | E-mail

Ore Fault North Zone Resource Development Drilling Hits 4.5m Grading 1.32% Ni, 0.14% Cu, and 1.31gpt PGM and Gold - More
- July 16, 2008 | Item | E-mail

MDN Inc.: Tulawaka Mine Produces 67,032 Ounces of Gold During the Second Quarter of 2008 - More
- July 16, 2008 | Item | E-mail

EXMIN Restarts Metallurgical Testing on High-Grade Gold Bearing Rock From the Reyna De Oro Mine, Chihuahua, Mexico - More
- July 16, 2008 | Item | E-mail

TSX-V Approves Northern Shield and East West Option Agreement on Max Property - Northern Shield Mobilizes Drill to Max Property - More
- July 16, 2008 | Item | E-mail

Merrex Exploration Update Private Placement Withdrawn - More
- July 16, 2008 | Item | E-mail

Copper Mountain Mining Corporation - Exploration Update: Near-Surface intersection of 116 feet grading 1.15% copper - More
- July 16, 2008 | Item | E-mail

Coniagas Announces Appointment of New President & CEO - More
- July 16, 2008 | Item | E-mail

Unico, Inc. Announces Release of July 2008 Investor Newsletter With Updates on Recent Activities at the Deer Trail Mine - More
- July 16, 2008 | Item | E-mail

Adventure Gold Acquires the Resenor Gold Deposit Adjacent to the Beaufor Mine in Val d'Or, Quebec - More
- July 16, 2008 | Item | E-mail

Chancery Resources Inc. Reports Total Number of Issued and Outstanding Shares Reduced to 30,250,000 Shares - More
- July 16, 2008 | Item | E-mail

CNG Appoints Minerock Group S.A. De C.V. as San Bernardo Project Manager - More
- July 16, 2008 | Item | E-mail

Drill results from Agata North Nickel Laterite Project - More
- July 16, 2008 | Item | E-mail

PC Gold Prepares for Start of 45,000 Metre Per Year Drill Program on Pickle Crow Gold Mine Property - More
- July 16, 2008 | Item | E-mail

Nevoro Acquires Benbow Chromite Mine - More
- July 16, 2008 | Item | E-mail

Alexis Pours Over 5,000 Ounces of Gold to Become the World's Newest Gold Producer - More
- July 16, 2008 | Item | E-mail

Ore Fault Drilling Hits 4.5m of 1.32% Ni, 0.14% Cu, and 1.31g/t PGM and Gold, NI 43101 Compliant Resource Expected in Q4 - More
- July 16, 2008 | Item | E-mail

Step-out drilling continues to expand the Bruce Channel Discovery at depth and to the southwest - More
- July 16, 2008 | Item | E-mail

Mawson Increases Klappibacken Resource by 51% to 3.3 Million Pounds of U3O8 - More
- July 16, 2008 | Item | E-mail

Skybridge Drilling Confirms New Discovery at Blue Caribou - More
- July 16, 2008 | Item | E-mail

European Goldfields Ltd. - Announcement - More
- July 16, 2008 | Item | E-mail

Boliden: Cancellation of Treasury Shares - More
- July 16, 2008 | Item | E-mail

General Metals Drilling Update -- Independence Shallow Target Areas Potential Triples -- Every Hole Encounters Gold Mineralization - More
- July 16, 2008 | Item | E-mail

Extract Resources - Significant results continue from Rossing South - More
- July 16, 2008 | Item | E-mail

Solex Resources Corp. announces Eldorado Gold as New Operator and JV Partner in Macusani East Joint Venture - More
- July 16, 2008 | Item | E-mail

SIRIOS: Update Report on Exploration Programs, James Bay, Quebec - More
- July 16, 2008 | Item | E-mail

Continental Nickel Commences 2008 Diamond Drill Program on the Nachingwea Nickel-Copper Project, Tanzania - More
- July 16, 2008 | Item | E-mail

Tournigan Upgrades Portion of Kuriskova Resource to Indicated Category at Higher Grade, Adds Additional Pounds of Uranium - More
- July 16, 2008 | Item | E-mail

Update on 3 DIOS Summer Drilling Programs - More
- July 16, 2008 | Item | E-mail

Wits Basin Announces Another Gold Intercept at the Bates-Hunter Mine Project - More
- July 16, 2008 | Item | E-mail

HuntMountain Identifies New High Grade Zone at La Josefina Gold-Silver Project - More
- July 16, 2008 | Item | E-mail

Mexoro Minerals Receives Additional Payment From Its Strategic Alliance With Paramount Gold and Silver Corp. - More
- July 16, 2008 | Item | E-mail

Silverado clarifies disclosure - More
- July 16, 2008 | Item | E-mail

Harmony gets green light in Papua New Guinea JV - "South Africa's Harmony (HARJ.J: Quote, Profile, Research, Stock Buzz) said on Wednesday that it had won approval for its joint venture project in Papua New Guinea, including the hidden Valley project, which will start producing in mid-2009." More
- July 16, 2008 | Item | E-mail

South Africa's gold mines hit by strikes - "Gold production was severely disrupted in parts of South Africa as thousands of mineworkers downed tools to protest rising living costs, their union and management said Wednesday." More
- July 16, 2008 | Item | E-mail

Timberline Provides Update On SMD Acquisition and Other Corporate Activity - "In accordance with Idaho Law and the American Stock Exchange Company Guide, Timberline must seek shareholder approval for its acquisition of SMD, as outlined in its Preliminary Proxy. The Preliminary Proxy remains under review by the Securities and Exchange Commission (SEC), and Timberline and SMD remain committed to obtaining shareholder approval and to finalizing the combination as soon as possible." More
- July 16, 2008 | Item | E-mail

Paramount Gold and Silver Corp. Expands San Antonio Zone to More Than 300 Meters of Depth at its San Miguel Project - "Drill hole SA-55 intercepted three, well mineralized intervals; one near the surface, a second at 110 meters down the hole, and a third at 450 meters down the hole (300 meters vertical depth). The deepest intercept contained 2.55 meters true thickness, grading 3.36 g/t Au and 585 g/t Ag or 15.05 g/t Au equivalent. This hole indicates that the gold to silver ratio is increasing with depth." More
- July 16, 2008 | Item | E-mail

MAG Silver Reports Deep Intersection of High Grade Silver on Valdecanas Vein - "MAG Silver Corp. (Toronto:MAG.TO - News)(AMEX:MVG - News) ("MAG") on behalf of Minera Juanicipio SA (a joint venture between Fresnillo plc (56%) and MAG (44%)) is pleased to announce assay results from the Valdecanas Vein for Hole GE. This hole was not included within the resource estimate recently reported for the Valdecanas Vein (see press release dated June 18, 2008)." More
- July 16, 2008 | Item | E-mail

Silver Standard Resources Inc.: Measured & Indicated Silver Resources Increase 143% at Pitarrilla's Breccia Ridge Zone - "Silver Standard Resources Inc. (Toronto:SSO.TO - News)(NasdaqGM:SSRI - News) is pleased to report that infill drilling continues to expand silver resources at its wholly-owned Pitarrilla silver project in Mexico. Measured and indicated resources at the Breccia Ridge Zone have grown by 143% and total project resources by 14% since the company's last update in November 2007. All of the silver resource increase is located in the Breccia Ridge Zone where infill and exploration drilling have been the priority." More
- July 16, 2008 | Item | E-mail

Substantial Increases in Reserves and Resources of South Mine Complex; Exploration Drilling Budget to Increase by 40% - "Kirkland Lake Gold Inc. (the "Company")(TSX:KGI - News; AIM:KGI) is pleased to present its new year-end (April 30, 2008) gold reserve and resource estimates for its operations in Kirkland Lake, Ontario on both the historic Main Break and the recently discovered South Mine Complex. The South Mine Complex consists of 15 or more mineralized zones, five of which have been defined over strike lengths in excess of 1,000 feet." More
- July 16, 2008 | Item | E-mail

Tumi Discovers New Base-Metal Zone in First Hole at Sala, Sweden - "Tumi Resources Limited (the "Company") (CDNX:TM.V - News)(OTC BB:TUMIF.OB - News)(Frankfurt:TUY.F - News). Mr. David Henstridge, President of Tumi, announces assay results from the first diamond drill hole completed at the Company's Sala silver-zinc-lead property, located in the Bergslagen District of central Sweden." More
- July 16, 2008 | Item | E-mail

- Chris Mullen, Gold Seeker Report

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