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Gold Seeker Closing Report: Gold and Silver Fall About 1% As Dollar Bounces

By: Chris Mullen, Gold-Seeker.com


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

 

Close

Gain/Loss

Gold

$917.30

-$10.80

Silver

$17.32

-$0.12

XAU

169.83

-2.36%

HUI

400.02

-2.48%

GDM

1198.10

-2.46%

JSE Gold

2129.07

-70.90

USD

73.30

+0.63

Euro

155.94

-1.47

Yen

92.53

-0.53

Oil

$122.19

-$2.54

10-Year

4.044%

+0.026

T-Bond

114.890625

-0.140625

Dow

11397.56

+2.39%

Nasdaq

2319.62

+2.45%

S&P

1263.19

+2.33%

 
 

 

The Metals:

 

Gold and silver rose over 0.5% to $932.77 and $17.60 in Asia before they fell to see roughly 2% losses at $914.25 and $17.063 by about 10AM EST in New York, but they then rallied back higher in the last few hours of trade and ended with losses of just 1.16% and 0.69%.

 

Euro gold remained at about €589, platinum lost $29.50 to $1739, and copper fell roughly 3 cents to about $3.68.

 

Gold and silver equities fell about 2.5% by early afternoon and remained near their lows into the close.

 

The Economy:

 

Report

For

Reading

Expected

Previous

Consumer Confidence

July

51.9

50.0

51.0

 

Pretty much ignored by the market today was a report showing that “home prices in 20 major U.S. cities have fallen a record 15.8% in the past year, as prices dropped in all areas tracked by the Case-Shiller home price index, Standard & Poor's reported Tuesday.”  Tomorrow at 8:15AM EST brings the ADP Employment report for July expected at -60,000.

 

The Markets:

 

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

 

Oil fell on worries over demand as the U.S. dollar index rose and treasuries fell on a better than expected Consumer Confidence reading.

 

The Dow, Nasdaq, and S&P rebounded from yesterday’s notable losses and ended with over 2% gains on optimism over the economy after another sizeable drop in oil prices.

 

Among the big names making news in the market today were BP, Sony, Matsushita, Toshiba, Valero, Teck Cominco and Fording Coal, Northrop Grumman, Merrill Lynch, Colgate, and Starbucks.

 

The Commentary:

 

“Banks continue to shrink debt, fearing that a continuation of slack lending practices will hurt their bottom line more still.   That means credit deflation will continue alongside other ills in the financial market will depress the U.S. economy even more, so the Fed must err on the side of growth and allow inflation to grow.   Doubts about banking, inflation, credit deflation and the value of the $ continue to favor gold and silver and will do so for the medium if not long term as well.

 

Gold has one more month before its 'season' begins so sellers are moving to the cautious side now.  Apart from hope that things can't be so bad, there is little reason not to buy gold.

 

For the gold price to hold these levels, at this time of the year, is encouraging as we are seeing an expression of investment demand almost in the absence of physical demand.   This is telling us that, when they weigh up the future of the banking system and paper currencies against gold and silver, there is a solid belief that precious metals have a place in prudent portfolios.

 

None of the measures taken to date by the developed world's Central Banks have addressed the fundamental structure of the monetary system, so we can only expect more 'fire fighting measures' in the future and the atmosphere of uncertainty to persist.   The credit crisis is a reflection of the banking system and how dependent we are on it.   The environment continues to favor gold and silver as a safe-haven against these fears.”- Julian D.W. Phillips, www.goldforecaster.com

 

“The obscuration award this year goes to the following transaction.

 

Merrill Lynch, regardless of their size as compared to other international investment banks, holds the title of most well known brand name in finance.

 

Obscuration is followed in this transaction by media declaring it to be the light at the end of the tunnel. Like the laugh tape played at key moments of a sitcom, the applause tape is played by the media screaming all is well.

 

A touch here and there and the media declares the direction of the market a result of the news. The touch is dollar up, gold down and equities up. It does not hurt that a reaction is occurring in the raging bull of energy. Of course this is labeled a broken crude bull market for the fools that are easily fooled

 

You will note these obscurations, called transactions, come directly on the heels of the recognition of value reported to you in Australia. As such I would image many SIV and OTC derivative holders of various varieties are going to be marked near 10% by one means or another.

 

The easiest way to understand the sum value of these transactions is through the following example:

 

You have a car in such bad shape that even a salvage company will not buy it for $1. You have to get it off your lawn because your wife is raising hell.

 

Your neighbor has his own tow truck, but he will not do anything as a favor.

 

You therefore sell him your truck for a made up price of $0.22, but he does not have to pay you until he sells it and you guarantee him from loss.

 

Now your wife is raising holy hell because the lump of junk is on his lawn right next to her house.

 

They key point is this is a game of “you give me” because I gave you something at a made up value or paid a debt with another person’s money to get something ugly off my lawn. The other neighbors now raise hell and the heaps go from one lawn to another until hopefully yours and many other wives can no longer see it.

 

This is the light of fabrication at the end of the Weimar tunnel.

 

Oil is a side show and diverts attention.”- Jim Sinclair, JSMineset.com

 

“August Gold finished down 11.2 at 916.5, 9.2 off the high and 2.7 up from the low.

 

September Silver closed down 0.09 at 17.375. This was 0.195 up from the low and 0.065 off the high.

 

A big range down failure at recent consolidation support would seem to signal ongoing vulnerability in the gold market. Certainly the sharp and apparently ongoing slide in oil prices is serving to reduce macro economic uncertainty and that in turn is prompting some safe haven players to exit the gold market. The highest Dollar Index trade since June 25th also seemed to shift the currency market influence on the gold market 180 degrees, especially with the sharp upward extension in the stock market signally a possible noted investment rotation away from the gold market.

 

The silver market also exhibited a rather active two sided trade on Tuesday, but with the rest of the metals complex falling in sync with oil prices, the sellers clearly outnumbered the buyers. Like copper and platinum prices, the silver market wasn't able to spin the sharp slide in oil prices and the sharp recovery in US equity prices into a potential future demand side benefit. The market recently derived its strength from flight to quality concerns and therefore it isn't surprising to see silver slide in sympathy with a host of physical commodity prices.”- The Hightower Report, Futures Analysis and Forecasting

 

GATA Posts:

 

 

IMF sees no end to credit crisis

 

The Statistics:

As of close of business: 7/28/2008

Gold Warehouse Stocks:

8,457,682

+186,641

Silver Warehouse Stocks:

139,344,786

-

 

Global Gold ETF Holdings

[WGC Sponsored ETF’s]

 

 

Product name

Total Tonnes

Total Ounces

Total Value

New York Stock Exchange Arca (NYSE Arca) AND Singapore Exchange (SGX) AND Tokyo Stock Exchange (TSE)

SPDR® Gold Shares

673.40

21,650,600

US$ 19,986m

London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse )

Gold Bullion Securities

119.71

3,848,795

US$ 3,533m

Australian Stock Exchange (ASX)

Gold Bullion Securities

10.87

349,085

US$ 321m

Johannesburg Securities Exchange (JSE)

New Gold Debentures

30.16

969,718

US$ 895m

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

 

COMEX Gold Trust (IAU)

Profile as of 7/24/2008

 

Total Net Assets

$1,824,921,024

Ounces of Gold
in Trust

1,967,972.052

Shares Outstanding

19,950,000

Tonnes of Gold
in Trust

61.21

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

 

Silver Trust (SLV)

Profile as of 7/24/2008

 

Total Net Assets

$3,472,364,187

Ounces of Silver
in Trust

197,355,797.100

Shares Outstanding

201,000,000

Tonnes of Silver
in Trust

6,138.45

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

 

The Stocks:

 

Teck Cominco (TCK) gold options, Fronteer’s (FRG) drill results, IAMGOLD’s (IAG) Pre-Feasibility Study, Exeter’s (XRA) drill results, AngloGold’s (AU) Board change, and Metalline’s (MMG) new resource model were among the big stories in the gold and silver mining industry making headlines today.

 

WINNERS

1.  Exeter

XRA +7.89% $3.42

2.  Metalline

MMG+7.41% $1.45

3.  Apex

SIL +4.86% $5.82

 

LOSERS

1.  Agnico

AEM-4.91% $55.97

2.  Solitario

XPL -4.76% $4.00

3.  Banro

BAA -4.61% $3.94

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:

Teck Cominco says actively looking at gold options - "Canadian miner Teck Cominco (TCKb.TO: Quote, Profile, Research, Stock Buzz) is actively looking at options to restructure its gold assets, a company spokesman said on Tuesday." More
- July 29, 2008 | Item | E-mail


Nevoro Acquires Sheffield Resources Ltd. - More
- July 29, 2008 | Item | E-mail


Thompson Creek announces appointment of Chief Financial Officer - More
- July 29, 2008 | Item | E-mail


Skyline Appoints New President, David Jensen - More
- July 29, 2008 | Item | E-mail


Sego Initiates Drilling at Miner Mountain Copper/Gold Porphyry Project - More
- July 29, 2008 | Item | E-mail


Aldridge announces private placement - More
- July 29, 2008 | Item | E-mail


Congo mining revenues rise, but so do miners' costs - "Measures to fight mineral export fraud have boosted Congo's income from copper and cobalt mining this year, but red tape and higher local taxes are driving up costs for companies, industry officials said." More
- July 29, 2008 | Item | E-mail


Powertech Shareholders Elect Synatom Officers to Board and Approve Synatom Warrants - More
- July 29, 2008 | Item | E-mail


Klondike Star Green Lights Indian River Gold Project - More
- July 29, 2008 | Item | E-mail


Aura Silver Completes Airborne Survey on Greyhound Claims, Mounts Field Program - More
- July 29, 2008 | Item | E-mail


King's Bay Gold Dryden Area Gold Discovery - More
- July 29, 2008 | Item | E-mail


AXMIN Inc.: Successful Definition and Infill Drilling Program and Discovery of Two New Zones Passendro Gold Project, Central African Republic - More
- July 29, 2008 | Item | E-mail


Dumont executes Shareholder Rights Plan agreement - More
- July 29, 2008 | Item | E-mail


Dia Bras Reports Significant Drill Intersections From the El Gallo Area, Bolivar Project and New Management Appointments - More
- July 29, 2008 | Item | E-mail


Unico, Inc. Announces the Receipt of an Additional $235,000 in Funding From Moore Investment Holdings, LLC - More
- July 29, 2008 | Item | E-mail


Rockcliff's Drill Program Commences at the Snow Lake VMS Project - More
- July 29, 2008 | Item | E-mail


Silverstar Mining Corp. Appoints New Directors - More
- July 29, 2008 | Item | E-mail


Canadian Royalties Obtains Mine Leases for 3 Sites at its Nunavik Nickel Project - More
- July 29, 2008 | Item | E-mail


Queensland Minerals Issue a News Release Correction: Assay Results Have Been Added - More
- July 29, 2008 | Item | E-mail


Semafo Commissions 4,000 Tonne-per-Day Ball Mill at Mana - More
- July 29, 2008 | Item | E-mail


Kria Resources to Purchase Halfmile Lake and Stratmat Properties in the Bathurst Mining Camp From Xstrata - More
- July 29, 2008 | Item | E-mail


NWT Uranium appoints new Chief Financial Officer - More
- July 29, 2008 | Item | E-mail


Caledonia Announces Board and Management Appointments - More
- July 29, 2008 | Item | E-mail


Explorator Resources Intercepts Additional Manto Hosted Oxide Copper-Gold Mineralisation in the Rachel Area at El Espino Project - More
- July 29, 2008 | Item | E-mail


Mindoro reports further drill results from Nickel Laterite Project - More
- July 29, 2008 | Item | E-mail


Bancroft Uranium Files 8K on N.I. 43-101 Report for Monmouth Uranium Project - More
- July 29, 2008 | Item | E-mail


Rossing South Targeted Exploration Potential - More
- July 29, 2008 | Item | E-mail


Lydian Intersects Best Grades Yet; 13m @ 21.0% Zinc, 7.1% Lead at St. Barbara Area (Drazhnje Project) in Kosovo - More
- July 29, 2008 | Item | E-mail


Maximus and NFX Announce Arrangement Agreement - More
- July 29, 2008 | Item | E-mail


RSM Has Acquired a 100% Interest in a Coal Project in Eastern Kentucky - More
- July 29, 2008 | Item | E-mail


Hana Mining Ltd.-Major New Discovery at Ghanzi, Botswana - More
- July 29, 2008 | Item | E-mail


Manicouagan Upgrades and Expands Resource at Brabant Lake Zinc Deposit - More
- July 29, 2008 | Item | E-mail


Marathon Hits Thickest Ever Intersection of PGM-Cu Mineralization, 183m of 0.24% Cu and 0.37g/t PGM and Au - More
- July 29, 2008 | Item | E-mail


Metals Creek Resources Corp. Provides an Update on Its Newfoundland Properties, Including Discovery of High Grade Gold Float on Its Staghorn Property - More
- July 29, 2008 | Item | E-mail


General Metals Newly Discovered Hill Zone Contains Three Mineralized Zones and Drills Additional 140 Feet 0.043 opt Au Equiv. - More
- July 29, 2008 | Item | E-mail


AuEx Ventures, Inc.: Long Canyon Drilling Returns 125 Feet at 0.13 opt Gold - More
- July 29, 2008 | Item | E-mail


Tiomin and Jinchuan Sign Agreement to Develop the Kwale Titanium Project - More
- July 29, 2008 | Item | E-mail


Kinbauri Cuts High Grade Gold At El Valle - More
- July 29, 2008 | Item | E-mail


Houston Lake Reports Fourth Quarter Results - More
- July 29, 2008 | Item | E-mail


Galway Resources metallurgical test results confirm historical results for molybdenum & tungsten recoveries at Victorio - More
- July 29, 2008 | Item | E-mail


Canasia to Acquire 100% Interest in Gold Property - More
- July 29, 2008 | Item | E-mail


Fronteer Hits More High-Grade Gold at Nevada Property - "Fronteer Development Group Inc. ("Fronteer" or the "Company") (Toronto:FRG.TO - News)(FRG - News) is pleased to announce that recent drilling has extended the length and width of gold mineralization at Long Canyon, further enhancing this property." More
- July 29, 2008 | Item | E-mail


IAMGOLD Releases Quimsacocha Pre-Feasibility Study - "IAMGOLD Corporation ("IAMGOLD" or "the Company") (Toronto:IMG.TO - News)(NYSE:IAG - News)(BOTSWANA: IAMGOLD) is pleased to announce results of the Pre-Feasibility Study (the "Study") of its 100% owned Quimsacocha Gold Project located in Ecuador. The Study was compiled by IAMGOLD Project Development Group, with the collaboration of Golder Associates, SNC Lavalin, Lakefield Research, Promas, Water Management Consultants, J. Kaehne Associates and Caminosca." More
- July 29, 2008 | Item | E-mail


Exeter Resource Corporation: Drilling Locates Major Extensions to Escondida Vein With Bonanza Gold-Silver Grades at Cerro Moro, Argentina - "Exeter Resource Corporation (CDNX:XRC.V - News)(XRA - News)(Frankfurt:EXB.F - News) ("Exeter" or the "Company") reports that diamond drilling has returned 3.55 metres (11.6 feet) at a grade of 471.9 grams per tonne gold (13.68 ounces per ton) 400 metres (1,312 feet) southeast of the previously known high grade mineralization on the Escondida vein system." More
- July 29, 2008 | Item | E-mail


Increased Resource Model Requires Re-evaluation of Sierra Mojada Project Feasibility Study. - "Metalline Mining Company is pleased to announce that a new resource model has been completed on the Sierra Mojada, Coahuila, Mexico Oxide Zinc mineralization. The new model was completed by world-recognized Pincock, Allen, and Holt, and more than doubles the amount of zinc present in the deposit. The current model incorporates new drilling results and a complete suite of silver analyses that were not available when the previous model was generated." More
- July 29, 2008 | Item | E-mail


AngloGold Ashanti: Change to the Board of Directors - "Since his appointment in 2004, Simon has provided invaluable guidance and support to the deliberations of the board. His resignation allows him the opportunity to pursue new opportunities and challenges. On behalf of the board and management we extend our best wishes to Simon for the future." More
- July 29, 2008 | Item | E-mail


 

- Chris Mullen, Gold Seeker Report

 

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Disclosure: The owner, editor, writer and publisher and their associates are not responsible for errors or omissions.  The author of this report is not a registered financial advisor.  Readers should not view this material as offering investment related advice. Gold-Seeker.com has taken precautions to ensure accuracy of information provided. Information collected and presented are from what is perceived as reliable sources, but since the information source(s) are beyond Gold-Seeker.com’s control, no representation or guarantee is made that it is complete or accurate.  The reader accepts information on the condition that errors or omissions shall not be made the basis for any claim, demand or cause for action.  Past results are not necessarily indicative of future results.  Any statements non-factual in nature constitute only current opinions, which are subject to change.  Nothing contained herein constitutes a representation by the publisher, nor a solicitation for the purchase or sale of securities & therefore information, nor opinions expressed, shall be construed as a solicitation to buy or sell any stock, futures or options contract mentioned herein.  Investors are advised to obtain the advice of a qualified financial & investment advisor before entering any financial transaction.


-- Posted 29 July, 2008 | |


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