Selling Frenzy Further Punishes Dollar

The bullion-holding ETFs, streetTracks Gold Shares(GLD Quote) and the iShares Silver Trust (SLV Quote), were down 0.3% and 0.7%, respectively.

In the gold patch, Newmont Mining(NEM Quote) reaffirmed its operating outlook for the year, with gold sales likely to be in the 5.2 million ounce to 5.6 million ounce range, down from the 5.9 million ounces sold in 2006. Unit costs for 2007 are expected to be between $375 and $400 an ounce, marking an increase from $304 an ounce last year.

The company also announced it would make a $1 billion convertible bond offering to cover funds currently borrowed under its revolving credit facility.

Shares of Newmont were recently dipping 1.5%.

In soft commodities, cocoa prices were rallying more than 2% at $2,066 a metric ton, while coffee prices were better by 0.5% at $1.12 a pound.