-- Posted 24 November, 2008 | | Source: SilverSeek.com

The Metals:

Gold fell $5.30 to $786.20 and silver dropped a couple of cents to $9.48 in Asia and both metals then soared higher in London and New York trade to as high as $829.55 and $10.675 by late morning before they came back off a bit in the last two hours of trade, but they still ended with impressive gains of 3.34% and 8.57% to add to Friday’s gains of 5.74% and 4.22%.

Euro gold rose to about €634, platinum gained $38 to $853.50, and copper gained nearly 10 cents to about $1.67.

Gold and silver equities rose over 11% in the first hour of trade before they sold back off slightly midday, but they still ended with about 7% gains.

The Economy:

“Citigroup Inc. received a U.S. government rescue package that shields the bank from losses on toxic assets and injects $20 billion of capital, bolstering the stock after its 60 percent plunge last week.

The second-biggest U.S. bank by assets surged as much as 72 percent in New York trading after the Treasury, Federal Reserve and Federal Deposit Insurance Corp. announced the aid plan yesterday. In return for the cash and guarantees, the government gets $27 billion of preferred shares paying an 8 percent dividend and warrants equivalent to a 4.5 percent stake in the company.”

Tomorrow at 8:30AM EST brings third quarter GDP expected at -0.5% and the Chain Deflator expected at 4.2%.  At 10AM is Consumer Confidence for November expected at 39.5.

The Markets:

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

Oil rose over 9% on hopes that another government bailout will help spur demand while the U.S. dollar index plummeted on concerns over other bank failures and the flood of new dollars entering the system.

Treasuries fell as the Dow, Nasdaq, and S&P rose about 5% on relief over the government's plans to bail out Citigroup as many are hopeful that it will help solve the problems facing the financials and the world economy.

Among the big names making news in the market today were Citigroup, Campbell Soup, GM, and Alpharma and King.

The Commentary:

“Dear CIGAs,

Short term profit taking did not last very long last evening and early this morning as dip buyers wasted little time in making their presence felt. Technically, this is quite positive as it indicates growing confidence on the part of the bulls and growing apprehension on the part of the bears. Last evening it had appeared that the bears were going to beat gold back down towards $780 but the upward surge in the Euro and the rally in the equities over the CITI bailout news was too much for the gold shorts. Amazing what a few billion dollars sprinkled hither and yon can do for a reflation trade.

I should note here that gold priced in terms of British Pounds shot to a new all time high today. The PM fix came in at 546.875 - that was not only the highest PM fix ever, but it was also higher than the previous high AM fix. Is it any wonder that at 3:00 AM, CST, when London traders were fully awake, that Comex gold exploded higher shaking off the early profit taking that occurred in Asian trading. I will try to get some charts up this evening of gold priced in various currencies as a point of reference as it has been a while since I have done that.

Open interest in gold did see an increase in Friday’s strong upside day; however, given the size of the move higher and the huge volume, the change in open interest of an increase of a bit more than 3,000 contracts suggests that my thoughts on Friday were correct – namely – a huge amount of shorts from the spec side were squeezed out. The move above the $780 level took out their buy stops and also brought in some of that money which has been sitting on the sidelines. Long side specs need to make sure they do not forget that a winning strategy to beat the commercial shorts in this market is to stand for delivery and not just play the paper game. Take the gold away from the warehouses if you want the real metal in possession as well as depriving the bears of their ammunition. They came back to play about 30 minutes prior to the close of pit session trading and bopped it down $6.00 just to make a statement. Don’t forget where their Achilles’ heel lies. Without the physical metal in the warehouse to back them, they are huffing and puffing and can only bluster.”- Dan Norcini, More at JSMineset.com

“December Gold closed up 27.7 at 819.5. This was 4.5 up from the low and 10.4 off the high.

December Silver finished up 0.875 at 10.355, 0.135 off the high and 0.245 up from the low.

The gold market managed another impressive trading session on the upside, with the gains off the November low at times amounting to roughly $133 an ounce. Clearly a noted slide in the Dollar fostered currency related buying and with the financial press still raking the coals of the Citigroup crisis it was likely that flight to quality interest was also contributing to the upside action. Some players even suggested that the strength in the US equity market contributed to the range up action in the gold market, but that seems to conflict with the flight to quality argument.

The silver market also managed an impressive range up move and the really surprising thing was that prices showed very little in the way of corrective action except into mid session. Clearly a weaker Dollar and strong leadership from the gold market provided the silver with outside market support, but the really surprising thing was that a host of physical commodity markets were strong despite additional evidence of slowing from the scheduled US numbers.”- The Hightower Report, Futures Analysis and Forecasting

GATA Posts:

Christopher Wood: The Fed is out of ammunition

Thom Calandra: Bullion rush spreads to Canadian fund

U.S. may relieve Citi of billions in bad loans

Richard Duncan: Bring back link between gold and dollar

Gene Arensberg: Commercial short positions still low for gold, silver

Al Korelin interviews Murphy, Turk, Morgan, Grandich, and Powell

Hold still more dollars, economist urges China

Wherever MorganChase goes, market manipulation follows

Citigroup may get government rescue, analysts say

The Statistics:

As of close of business: 11/21/2008

Global Gold ETF Holdings

[WGC Sponsored ETF’s]

Note: Change in Total Tonnes from yesterday’s data: SPDR added 3.06 tonnes to get within 0.20 tonnes of it record high holding held on October 1^st 2008.

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:

Gold Reserve’s (GRZ) equipment sale, Gammon Gold’s (GRS) affirmed Q4 outlook, NovaGold’s (NG) project update and financial outlook, Freeport’s (FCX) project decision, ECU’s (ECU.TO) plans to release a mineral resource update, and Avino’s (ASM.V) 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:

Valdez Gold provides exploration update - More
- November 24, 2008 | Item | E-mail

Gold Reserve Announces Completion of Previously Announced Equipment Sale - "Gold Reserve Inc. (TSX:GRZ - News) (AMEX:GRZ - News) reported today that it has closed the October 10, 2008 announced equipment sale for certain equipment manufactured for the Company’s Brisas Project. The Company will recover approximately $19 million of progress payments and the purchaser will assume the Company’s remaining payment obligations related to the equipment of approximately $22 million." More
- November 24, 2008 | Item | E-mail

Evolving Gold Corp Appoints Dr. Robert Barker as CEO - More
- November 24, 2008 | Item | E-mail

Benton, Royal Roads, and Golden Dory form nickel joint venture - More
- November 24, 2008 | Item | E-mail

Royal Roads, Benton and Golden Dory form nickel joint venture - More
- November 24, 2008 | Item | E-mail

Gammon Gold Confirms Q4 2008 Performance Remains on Target - "Gammon Gold Inc. ("Gammon"ot the "Company") (TSX:GAM and NYSE:GRS): Gammon is pleased to confirm that the Company continues to meet targeted fourth quarter production and cash cost guidance and additionally, will potentially deliver the best production quarter in Gammon's history." More
- November 24, 2008 | Item | E-mail

Molycor Gold Corp.: Drill Results on Davis Gold Property, Nevada - More
- November 24, 2008 | Item | E-mail

IMA Launches Online Investor Hub - More
- November 24, 2008 | Item | E-mail

Shoshone Silver Announces Appointment of New Board Member - More
- November 24, 2008 | Item | E-mail

Explor Resources Inc.: Explor Board of Directors Approve Shareholder Rights Plan - More
- November 24, 2008 | Item | E-mail

Mineral Hill Announces Letter of Intent for its Praxis Goldfields Project - More
- November 24, 2008 | Item | E-mail

Loveland Project: Exploration Update - More
- November 24, 2008 | Item | E-mail

Wildcat Silver Improves Processing at Hardshell - More
- November 24, 2008 | Item | E-mail

Full Metal Releases Final 2008 Assay Results from Fortymile Property, AK: Including 5.7 Meters True Width Averaging 7.5% Zn, 11.8% Pb and 167.6 g/t Ag - More
- November 24, 2008 | Item | E-mail

Uracan announces the completion of the private placement totaling $5,690,000 - More
- November 24, 2008 | Item | E-mail

Eloro to Drill Hurdman and Agate Zinc-Silver-Gold Properties in Timmins Camp - More
- November 24, 2008 | Item | E-mail

Champion Minerals Completes Initial Field Work on Fermont Iron Property - More
- November 24, 2008 | Item | E-mail

Canadian Arrow Mines announces changes to Board - More
- November 24, 2008 | Item | E-mail

Afri-Can Marine Minerals Reports That Diamond Sampling Vessel Conversion is Completed - More
- November 24, 2008 | Item | E-mail

Sherwood and Capstone Announce Closing of Business Combination - More
- November 24, 2008 | Item | E-mail

Uranium Star Identifies Second Source of Potentially Economic Vanadium on Three Horses Property in Madagascar; Expands Strike Length of Previous Discovery - More
- November 24, 2008 | Item | E-mail

Quaterra Secures an Option to Acquire the Willow Creek Porphyry Molybdenum Prospect in Montana - More
- November 24, 2008 | Item | E-mail

Alberta Star Reports Assay Results From Its 2008 Drilling Program - More
- November 24, 2008 | Item | E-mail

Carpathian Gold Schedules Conference Call on Updated and Doubled Resource Estimate in Romania - More
- November 24, 2008 | Item | E-mail

Ruby Red Resources upates 2008 exploration program - More
- November 24, 2008 | Item | E-mail

Phoenix Matachewan Mines: Shares for Termination of McKellar Lake Agreement - More
- November 24, 2008 | Item | E-mail

Unico, Inc. Announces Additional Progress of Underground Rehabilitation Work at the Deer Trail Mine - More
- November 24, 2008 | Item | E-mail

Matamec Closes a $ 100,000 Private Placement - More
- November 24, 2008 | Item | E-mail

Monroe Minerals Reports Up to 0.754% U3O8 Intersection in Drill Core at Alexis River Uranium Property in Labrador - More
- November 24, 2008 | Item | E-mail

Peregrine Announces Exercise of Earn-In Rights at Chidliak, Baffin Island - More
- November 24, 2008 | Item | E-mail

Hana Reports Additional Results From Zone 6 at Ghanzi, Botswana - More
- November 24, 2008 | Item | E-mail

Amarc Exploration Update - New Massive Sulphide Target Discovered at Huge South - More
- November 24, 2008 | Item | E-mail

Manicouagan Reports Significant Rhodium Values From Drill Core Including 1.7 Grams Per Tonne at the Bob Prospect... - More
- November 24, 2008 | Item | E-mail

Sunergy Announces LOI Signed for Proposed JV for Recovery of Oxide Gold on Four Additional Gold Mining Concessions in Ghana, West Africa, Aimed at Cash Flow - More
- November 24, 2008 | Item | E-mail

General Metals Revised Drill Results Expands Mineralization at Independence Project Including 85 Feet at 0.06 opt Au Equiv. - More
- November 24, 2008 | Item | E-mail

Bannerman Resources Announces Results of Annual General Meeting - More
- November 24, 2008 | Item | E-mail

Wesdome Gold Mines Ltd. - Drilling expands new Dubuisson discovery - More
- November 24, 2008 | Item | E-mail

Mineralogy amending its offer to purchase common shares of Waratah Coal Inc. - More
- November 24, 2008 | Item | E-mail

Colorado Goldfields Inc. Confirms Stock Dividend Pay Date - More
- November 24, 2008 | Item | E-mail

GobiMin Signs Definitive Sales and Purchase Agreement To Sell its Chinese Nickel Properties - More
- November 24, 2008 | Item | E-mail

Canstar Resources Inc. Commences Drilling on the CBS Project, Newfoundland; Mary March Adjudication Hearing Begins - More
- November 24, 2008 | Item | E-mail

Sherwood Reports Cash Flow From Mining Operations of $29.9 Million in Q3 2008 - More
- November 24, 2008 | Item | E-mail

Mexoro Minerals Signs Letter of Intent for Project Financing of $9 Million for Its Cieneguita Project - More
- November 24, 2008 | Item | E-mail

Boss sampling returns 1.15% copper, 1.09 g/t gold, 1.37 g/t PGE and 13.72 g/t silver over 100.0 m interval - More
- November 24, 2008 | Item | E-mail

Mirabela Santa Rita - Updated proven & probable reserve - More
- November 24, 2008 | Item | E-mail

Mirabela extends the term of debt financing package - More
- November 24, 2008 | Item | E-mail

Mineral Deposits Limited-Finance and Development Update - More
- November 24, 2008 | Item | E-mail

Brookmount Explorations, Inc. President's Report to Its Shareholders - More
- November 24, 2008 | Item | E-mail

ECU Silver to Release Mineral Resource Update - "ECU Silver Mining (TSX:ECU - News; "ECU Silver" or "the Company") is pleased to announce that it is on schedule to deliver an updated mineral resource estimate by mid December." More
- November 24, 2008 | Item | E-mail

NovaGold Provides Update on Financial Outlook and Rock Creek Project in Alaska - "The Company has been actively seeking additional financing to allow it to repay a bridge loan due December 29, 2008 and to fund its existing operating commitments for the Donlin Creek LLC and the Galore Creek Partnership. The Company has spent approximately US$30 million on its Rock Creek gold mine since August 31, 2008 and is approximately US$20 million over its most recent budget. Since August 31, 2008, the Company has been unsuccessful in realizing further cash proceeds from existing assets." More
- November 24, 2008 | Item | E-mail

Freeport to decide on El Abra copper project-paper - "Freeport-McMoRan Copper & Gold Inc (FCX.N: Quote, Profile, Research, Stock Buzz), a global miner that is cutting costs after metals prices plunged, may decide this week whether to go ahead with a project to extend the life of the El Abra copper mine in Chile, the Diario Financiero reported Monday." More
- November 24, 2008 | Item | E-mail

Avino San Gonzalo Drilling Intersects 758 GPT Ag, 3.22 GPT Au Over 0.85 Meters - "At San Gonzalo results of the first 2008 diamond drill holes, SG-08-01 and 02 were released September 17, 2008. The Company is now pleased to release results of the remaining four holes drilled at San Gonzalo this year." More
- November 24, 2008 | Item | E-mail

- Chris Mullen, Gold Seeker Report

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