-- Posted 6 July, 2009 | | Source: SilverSeek.com

The Metals:

Gold fell over $10 to as low as $920.50 by midmorning in New York before it bounced back higher into the close, but it still ended with a loss of 0.74%.  Silver dropped over 3% to as low as $12.987 by about 9AM EST before it stormed back higher in late morning New York trade, but it was then held slightly lower in afternoon trade and ended with a loss of 1.05%.

Euro gold fell to about €662, platinum lost $41.50 to $1143.50, and copper fell a few cents to about $2.27.

Gold and silver equities fell over 5% midmorning before they struggled back higher in afternoon trade, but they still ended with about 4% losses on the day.

The Economy:

There are no major economic reports due out tomorrow.

The Markets:

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

Oil fell to a new 5 week low around $64 on worries over demand.

The U.S. dollar index reversed early gains and ended slightly lower as traders seemed to prefer the yen as a shelter from riskier assets.

Treasuries fell despite recently renewed worries over a weakening economy as potential buyers look elsewhere for safe haven investments.

The Dow, Nasdaq, and S&P mostly fell as last week’s much worse than expected jobs data continued to hang over the market, but the Dow and S&P flirted with gains late in the day and ended slightly higher as some have hopes for better news over the economy later this week.

Among the big names making news in the market today were Pepsi, GM, Bank of America, and Toyota.

The Commentary:

“Dear Friends,

The hyperinflation we face has nothing to do with demand pull. It is a currency event as it has always been in every historic example going back to the Romans.

Hyperinflation has always occurred in the condition of the most vile economic activity. MOPE via its tool SPIN cannot and will not prevent what is 123 days away.

Anticipate MOPE (Management of Perspective Economics) to reach spiritual levels as the G8 plus 5 shovels out garbage to camouflage the discussions with the Plus 5 on dollar diversification via SSCI (Super Sovereign Currency Index) as a reserve currency unit.

This morning China is referred to by financial TV MOPE as not knowing what it wants. That is outrageous BS. China knows EXACTLY what they want and have defined it in a manner that is without question a Super Sovereign Reserve Currency package as part of available central bank reserves. There is no ambiguity at all concerning all the BRIC nation’s positions.

I will sum up the situation as 123 days to go.

I wager some of you have or will throw away your only insurance during this period at higher gold prices, trading later only to go into gold sticker shock.

Gold is headed to $1224 on its way to $1650 and Alf’s numbers.

The US dollar is going to have a very cold and uncomfortable winter.

Respectfully yours,”- Jim Sinclair, JSMineset.com

“August Gold closed down 6.7 at 924.3. This was 4 up from the low and 1.6 off the high.

September Silver finished down 0.17 at 13.238, 0.047 off the high and 0.243 up from the low.

The gold market started out weak and seemed to remain in a mostly negative posture for most of the trading session. Clearly the gold market was undermined by a series of negative outside market forces. With the Dollar forging a definitive upside breakout on the charts, the bear camp was keen to play that issue up as the primary focus of the gold market, but seeing overt weakness in a host of physical commodity markets would seem to suggest that broad based selling was present in a number of market sectors. With Peru posting a modest increase in May gold production, one could even suggest that classic supply and demand news was favoring the bear camp.

The silver market also saw a range down extension on Monday, with the September Silver contract managing to reach the lowest level since May 4th. With copper, crude oil and other industrial commodities at times on Monday under noted selling pressure it would seem like silver also had a number of forces pressuring prices. Some players attached significance to the even number price zone of $13.00 in September silver and that attention was probably given added credence by the fact that prices initially managed to recoil from the even number price zone.”- The Hightower Report, Futures Analysis and Forecasting

GATA Posts:

South Korea to buy gold, expecting it to replace dollar

Couldn't happen to a nicer market rigger

Daily Bell interviews James Turk: How elites always destroy paper money

Leaders won't stop contemplating easing out of the dollar

Austrian silver euro coins being used to beat German taxes

Adrian Douglas: What can ever beat the gold and silver cartel?

Andy Xie: Fed would fool both bond vigilantes and liquidity junkies

Indian joins Russia, China in questioning dollar dominance

China buys 17% of miner Teck Resources for $1.5 billion

China moves again to cut reliance on dollar

Austrian bank's gold report cites market manipulation

The Statistics:

Activity from: 7/02/2009

Global Gold ETF Holdings

[WGC Sponsored ETF’s]

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

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 Miners:

Silvercorp’s (SVM) response to Klondex’s (KDX.TO) bid rejection was the only big story 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:

- Chris Mullen, Gold Seeker Report

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• http://www.silverseek.com
• http://www.goldreview.com 

© Gold Seeker 2009

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