-- Posted 9 February, 2006 | | Source: SilverSeek.com

Market Analysis from GoldSeek.com, SilverSeek.com & CapitalUpdates.com:

Tomorrow at 8:30AM EST brings the Trade Balance for December expected at -$64.8 billion.  At 2PM is the Treasury Budget for January expected at $8.0 billion.

Gold surged nearly $10 in Asia to about $560 before falling off near $555 by the opening of trade in London.  It then held between $555 and $560 in London and traded around $560 in early New York trade before it broke above $560 in afternoon New York trade and ended near its highs with a 2.67% gain.  Silver followed a similar pattern in the $9.45 to $9.55 range before it broke above $9.60 in New York and ended near its highs with a 2.34% gain.

Gold is now just $7.80 from its 25 year closing high of $572.20 that was set on February 2^nd.  Silver is now just $0.21 from its 18 and ¾ year closing high of $9.83 that was set on January 31^st.

Gold and silver equities jumped about 3% at the open before falling off into the close to end with about 1.75% gains.  All three indices remain about 7% from their recent closing highs of 154.19 (XAU), 344.70 (HUI), and 1070.67 (GDM) set on January 31^st and February 1^st.

Platinum gained $9 to $1054 to come within $20 of its 26 year closing high of $1074 set this last January 31^st.  Platinum’s all-time high is $1,189.50 and was set on March 5^th, 1980.  Palladium gained $10 to $299 to come within $13 of its 21 month closing high of $312 set this last February 3^rd.  Euro gold jumped back up near all-time highs above €470, copper jumped back up near all-time highs above $2.30, and the CRB Index gained 0.89 to 336.96 to come within 13.10 of its all-time closing high of 350.06 set on January 30^th.

More Precious Metals Analysis:

“April gold closed sharply higher and today as funds and other speculators re-entered long positions after the sharp sell off earlier this week. A nerve gas scare at the US Senate Office Building Wednesday night sparked the rally in the overnight session, but the market held its gains even after it was determined that it was a false alarm. A modest rally in crude oil may have provided some support, but more than likely it was the funds and specs eager to get back on the long side after the correction that was the primary driver in today's gains.” - The Hightower Report, Futures Analysis and Forecasting

“Today’s gold action is deemed bullish after the dramatic fall on Tuesday, but I remain skeptical in the short-term until we can break through $566 spot and follow that with a close above the $575 record highs hit last week.  That would then signal $600 or more is on the way. 

$540-545 remains the initial support area here followed by the $525 area. 

Metal equities are not showing the same strength as we are seeing in the gold and silver prices today, with strong overhead resistance first seen at 330-332[HUI] then around 340-350.  Any sign of weakness in the metal prices brings sellers and reveals the nervous psychology we have at these price levels.  There remains a large crowd of buyers out there looking for a much deeper correction in the mining stocks to take place first.” – Peter Spina of www.goldforecaster.com

The U.S. dollar index remained near unchanged as traders looked for comments from the Bank of Japan on their policy and also kept an eye on the outlook for further interest rate hikes in the U.S.  Many were looking ahead to trade and treasury budget data tomorrow.

Oil traded higher throughout trade despite the fact that natural gas stocks fell 38 billion cubic feet which was a smaller drop than expected.  A rebound from 3 straight days of losses and continued worries about Iran were cited as reasons for the rise.

Treasuries traded lower ahead of the sale of 30-year notes that was seen as successful, but not as good as some had expected.  Bonds were still able to find some gains, however, and ended modestly higher.

The Dow, Nasdaq, and S&P rose on decent earnings reports and economic data in morning trade, but all three indices fell off in afternoon trade and only the Dow was able to end higher.

Among the big names making news in the market today were RIM, Best Buy, XM, Coke Enterprises, Marriot, AIG, Morgan Stanley, Aetna, Bunge, and Bank of America.

Gold & Silver Stock News Update from GoldReview.com:

Metallica’s blasting permit for the Cerro San Pedro project and plenty of junior and exploration stock news were among the big stories in the gold and silver mining industry making headlines today.

WINNERS

LOSERS

All of today's gold and silver stock news:

Romios Announces Closing of $750,000 Financing - More
- February 09, 2006 | Item | E-mail

Everton Acquires an Option on 335 Km2 of New Gold and Copper Concessions in the Dominican Republic - More
- February 09, 2006 | Item | E-mail

PMI Ventures Ltd.: New Reef Grab Sample Assays-Ashanti II Project-Ghana - More
- February 09, 2006 | Item | E-mail

Oro Gold Completes Multi-Property Acquisition in Rosario Gold Belt, Cuts 2.9 g/t Gold Over 48 Metres at Nueva Trinidad - More
- February 09, 2006 | Item | E-mail

Far West Mining Ltd.: Phase IV Drilling has Commenced in the Santo Domingo Sur Area in Chile - More
- February 09, 2006 | Item | E-mail

Cassidy Gold Corp.: New Mineralization at Kinkine Zone, Kouroussa Project - More
- February 09, 2006 | Item | E-mail

Bellhaven Ventures Announces Private Placement to Raise $1.7 Million - More
- February 09, 2006 | Item | E-mail

Dundee says fighting Bulgarian investment hurdles - More
- February 09, 2006 | Item | E-mail

Typhoon Exploration Inc.: 1,030 Meters Over 4 Diamond Drill Holes Completed at Fayolle - More
- February 09, 2006 | Item | E-mail

StrataGold intersects additional high-grade gold at Tassawini, Guyana - More
- February 09, 2006 | Item | E-mail

Rare Earth Metals Corp. Reports Winter Conditions will Allow Drill Program at Eden Lake, Uranium-REE Property, Manitoba - More
- February 09, 2006 | Item | E-mail

Golden Band Resources Closes $1,000,000 Private Placement Financing - More
- February 09, 2006 | Item | E-mail

Keegan Completes Technical Report; Drilling to Commence at Asumura Gold Project - More
- February 09, 2006 | Item | E-mail

Galantas Appoints Lewis Charles Securities as Broker For London AIM Admission - More
- February 09, 2006 | Item | E-mail

Drilling Commences at Golden Goose's Magino Mine, Ontario - More
- February 09, 2006 | Item | E-mail

New Jersey Mining Company to Start Silver Production - More
- February 09, 2006 | Item | E-mail

Metallica Resources Reports Restriction Lifted From Blasting Permit for Cerro San Pedro Project, Mexico - "Metallica Resources Inc. today reports that SEDENA (Secretaria de Defensa National) has removed the restriction from the explosives operating, or blasting, permit it issued to Metallica's Mexican subsidiary, MSX, for the Cerro San Pedro (CSP) project for the calendar year 2006. This allows MSX to pursue full and unrestricted construction of the CSP project. Previously, the permit had a restriction prohibiting the use of explosives on ground owned communally by the ejido of Cerro de San Pedro. As a result of a favorable legal ruling, reported in January 2006, SEDENA has removed this restriction." More
- February 09, 2006 | Item | E-mail

Dumont initiates financing to advance Kiewit Gold Zone and porphyry target drilling - More
- February 09, 2006 | Item | E-mail

BacTech Continues Restructuring - More
- February 09, 2006 | Item | E-mail

Argentex appoints respected geologist to board of directors - More
- February 09, 2006 | Item | E-mail

Infinex Announces Letter of Intent - More
- February 09, 2006 | Item | E-mail

Eppler Lake, Manitoba Follow-Up Program Initiated by Western Warrior - More
- February 09, 2006 | Item | E-mail

Wits Basin Announces Additional Assay Results Which Includes Evidence of Gold and Silver Telluride Mineralization - More
- February 09, 2006 | Item | E-mail

Drilling On Yellowjacket Zone Confirms High Grade Gold Mineralization - More
- February 09, 2006 | Item | E-mail

South-Malartic : Work in progress in Mexico and $1.5 M Private Placement - More
- February 09, 2006 | Item | E-mail

Plexmar Resources Inc.: Financing Closed - More
- February 09, 2006 | Item | E-mail

Anglo American Exploration 'USA', Inc. Commits to a 2006 Drill Program on Nevada Star's MAN Alaska Project - More
- February 09, 2006 | Item | E-mail

Goldeye Commences Drilling on Big Dome 'High Grade Zones,' Tyrrell Twp. Drill hole Compilation Shows Highly Favourable Geological Environment - More
- February 09, 2006 | Item | E-mail

International KRL Resources Corp.: Private Placement Completed - More
- February 09, 2006 | Item | E-mail

ECU Silver Mining Inc.: Press Release - More
- February 09, 2006 | Item | E-mail

Fortuna Silver Mines Inc.: 10,000 Meters of Core Drilling Begins at the High-Grade San Jose Prospect, Oaxaca, Mexico - More
- February 09, 2006 | Item | E-mail

Drilling program commences on its Duparquet Gold property - More
- February 09, 2006 | Item | E-mail

Cerro Rico Mine, Rich in History, Sits in one of the World's Most Historic Cities - More
- February 09, 2006 | Item | E-mail

American Bonanza Reports Mineral Resource at Copperstone - More
- February 09, 2006 | Item | E-mail

Altius Acquires Founding Equity Stake in Newfoundland and Labrador Refining Corporation: Feasibility Study for a New Oil Refinery Announced - More
- February 09, 2006 | Item | E-mail

ANDINA Minerals Inc.: Volcan Drilling Continues to Return Significant Results - More
- February 09, 2006 | Item | E-mail

AXMIN Awarded Three New Permits In The Central African Republic - More
- February 09, 2006 | Item | E-mail

Crosshair Begins Phase 1 Diamond Drilling Program to Expand Uranium Resource at Moran Lake C Zone - More
- February 09, 2006 | Item | E-mail

Buffalo to Acquire Australian Gold and Uranium Company - More
- February 09, 2006 | Item | E-mail

Continuum Resources Ltd.: 10,000 Meters of Core Drilling Begins at the High-Grade San Jose Prospect, Oaxaca, Mexico - More
- February 09, 2006 | Item | E-mail

Peru Copper Announces Results of Pre-Feasibility Study - More
- February 09, 2006 | Item | E-mail

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- Written by Chris Mullen

Winners & Losers tracks NYSE and AMEX listed stocks that trade over $1.

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