Gold Seeker Closing Report – Gold & Silver Gain Another 1 & 2% To New Multi-Year Highs

Report	For	Reading	Expected	Previous
Construction Spending	Feb	0.8%	0.5%	0.4%
ISM Index	Mar	55.2	57.7	56.7

Construction Spending rose more than expected to a new record level, but most on Wall Street paid more attention the ISM Index reading which showed manufacturing activity expanded at a slower pace than most expected. This economic disappointment was cheered on Wall Street as it may help convince the fed to stop raising interest rates. There are no major economic reports due out tomorrow.

	Close	Gain/Loss
Gold	$589.30	+$7.80
Silver	$11.74	+$0.25
XAU	142.74	+0.79%
HUI	338.13	+0.54%
GDM	1060.05	+0.81%
JSE Gold	2939.78	+2.39%
USD	89.63	-0.11
Euro	121.42	+0.25
Yen	84.99	+0.03
Oil	$66.74	+$0.11
10-Year	4.874%	+0.021
T-Bond	109.03125	-0.125
Dow	11144.94	+0.32%
Nasdaq	2336.73	-0.13%
S&P	1297.81	+0.23%

Gold initially climbed over $585 in Asia but dropped near unchanged by the open in London which took the price back above $585 by the open in New York. Gold then surged above $590 by late morning trade before it fell off slightly into the close, but it still ended with a 1.34% gain to a new 25 year high. Silver traded about 10 cents higher in Asia and London and then jumped over $11.75 in New York before it also fell off slightly into the close, but it still ended with a 2.18% gain to a new 22 year high.

Euro gold rose to new all-time highs above €485, platinum gained $6 to $1,067, palladium gained $8 to $339, and copper surge almost 10 cents higher to new all-time highs near $2.55.

Gold and silver equities rose over 2% in morning trade but then fell off in afternoon trade and ended with less than 1% gains.

“The gold market saw a surprising upward extension after opening strong and then managed to hold most of those gains into the close. With the higher action Monday the market disappointing those who expecting to see prices correct into the beginning of the new quarter. In other words, the higher open to the new quarter probably served to pull back in longs that had stepped aside in the setback on Friday afternoon. In the end the aggressiveness of the gains made it seem like a wave of fresh buyers were piling into the market. Initially the Dollar was strong but with the Dollar falling back decisively from the early highs, and the generally market seeing ongoing gains in energies and equity prices, the gold market was apparently left with a lengthening list of supportive arguments. In fact, given the magnitude of the gains in copper, silver and zinc on Monday the $7 to $8 rally in gold seemed to be a slight lag to the rest of the metals markets.

The silver market continues to lead the precious metals markets to even higher levels. The close Monday was well above the prior high close and that seemed to embolden the bull camp. It is possible that silver market was indeed taking some early direction from the overt and significant strength in the copper market, as many traders took the huge copper gains as a sign of intense fund interest in all the metals markets. In the end, seeing equities strong and energy prices exhibiting significant volatility seemed to suggest that investment and inflation themes were serving to drive buyers toward the silver market. With the silver market rising back toward the Friday highs of $11.77, in the May contract, it is possible that some in the trade are beginning to look ahead to the next higher historical price reference point of $15.13, that was forged back in August of 1983. In the end, ongoing inflation talk, soaring gold prices, flight to quality buying interest off rising oil prices seemed to whip up already surging investment demand in silver. For the time being, the bull camp seems to have a series of elements working in its favor!” - The Hightower Report, Futures Analysis and Forecasting

Oil traded at over $68 in London and remained about $1 higher in early New York trade on geopolitical and supply concerns in Nigeria, Iran, and

Venezuela

, but it then fell off into the close and ended with only minor gains.

The U.S. dollar gained in Asia versus the yen as “a closely-watched tankan survey showed business confidence among Japan's big manufacturers slipped unexpectedly.” The dollar then fell versus the euro, however, as European manufacturing data that “expanded at its fastest pace in more than five years in March boosted expectations of gradual rate hikes by the European Central Bank.” Poor U.S. manufacturing data sent the dollar even lower and caused it to end near its lows of the day.

Treasuries fell and pushed the yield on the 10-year to new 22 month highs, but losses were pared following the economically disappointing ISM reading.

The Dow, Nasdaq, and S&P surged higher on the opening day of the 2^nd quarter as the economically disappointing ISM reading raised investor hopes for a pause in interest rate hikes soon, but all three indices sold off in the last 2 hours of trade and ended near their lows of the session with either minor gains or slight losses.

Among the big names making news in the market today were GM, Ford, DaimlerChrysler, Toyota, Alcatel and Lucent, VNU, GM and GMAC, Ameristar Casinos and Aztar, and Constellation and Vincor.

I find today’s reaction to this morning’s economic data a bit disturbing for mainstream investors. Investors are rooting for poor economic data so that the fed will stop raising interest rates. Easy money policy seems to be viewed as the cure-all for any problems in the stock market, but what happens when people get what they ask for and poor economic data brings the country into a recession or even a depression? As a gold bug I can’t complain as the data also sent the dollar lower and perhaps helped to induce another rally in the metals, but it seems on the surface to be a rather disturbing reaction nonetheless. As for the record Construction Spending data, all I can say is “If you build it, will they come?” With New Home Sales dropping over 10% in February and Existing Home Sales falling 5 out of the past 6 months, it appears the answer to that question may simply be “No.”

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Randgold’s published annual report, Bema Gold’s received approval for Kupol construction and Cerro Casale update, Tanzanian Royalty’s diamond projects, Nevsun’s thanks to the State of Eritrea and gold pour at Tabakoto, Ivanhoe’s received initial payment from the sale of its iron ore mine, Seabridge’s planned acquisition of the Noche Buena gold project from Hecla, Apollo Gold’s year end and 4^th quarter results, and Great Panther’s sampling results from Guanajuato were among the big stories in the gold and silver mining industry making headlines today.

ECU Silver Mining Inc.: Press Release - More
- April 03, 2006 | Item | E-mail

Au Martinique Silver Inc. Closes Private Placement - More
- April 03, 2006 | Item | E-mail

Valencia Ventures Inc.: Senior Management Appointments - More
- April 03, 2006 | Item | E-mail

Mexoro Minerals Corporate Update - More
- April 03, 2006 | Item | E-mail

Bema Gold Corporation: Key Russian Government Approval Received for Kupol Construction/Cerro Casale Update - "Bema Gold Corporation is pleased to announce that the Company has been notified that the Russian Federal Government's Federal Agency of Environmental, Technical and Nuclear Supervision (known as Rosgoteknadzar in Russia) has reviewed and approved the Russian Construction Feasibility Study (known as a T.E.O.-C in Russia) for the Kupol Project. The T.E.O.-C contains information on geology, mining, milling, tailings storage, infrastructure, civil defence measures, and environmental protection." More
- April 03, 2006 | Item | E-mail

Agnico-Eagle provides notice of release of first quarter 2006 results and conference call - "Agnico-Eagle Mines Limited announced today that it will release its first quarter 2006 results on Wednesday, April 26, 2006, after normal trading hours. The Company's senior management will host a conference call on Thursday, April 27, 2006 at 11:00AM (E.S.T.) to discuss financial results and provide an update of the Company's exploration and development activities." More
- April 03, 2006 | Item | E-mail

Inmet concludes sale of Izok property - More
- April 03, 2006 | Item | E-mail

Australia and China sign nuclear cooperation and export agreements - More
- April 03, 2006 | Item | E-mail

Nuinsco Reports 2005 Financial Results, Provides Summary of Activities - More
- April 03, 2006 | Item | E-mail

Mediterranean Resources Retains Leading Investor Relations firm - More
- April 03, 2006 | Item | E-mail

Romios Announces Closing of $680,000 Financing - More
- April 03, 2006 | Item | E-mail

Tanzanian Royalty Reports that Laboratory Results Confirm Widespread Distribution of Diamond Indicator Minerals from Three Projects in Tanzania - "The Company is pleased to report that a wide range of kimberlite indicator minerals has been identified on three of its diamond projects in Tanzania. Kimberlite is the host rock for most of the world's major diamond deposits including the Williamson diamond pipe at Mwadui, Tanzania, the largest ever mined." More
- April 03, 2006 | Item | E-mail

Taranis Resources Intersects 1.10 g/t Au Over 52.93 m in Kettukuusikko South Zone - More
- April 03, 2006 | Item | E-mail

Mengold Options Two Shebandowan Properties Burchell Lake and Goldcreek Properties - More
- April 03, 2006 | Item | E-mail

Golden Valley Mines Ltd.: 2006 Abitibi Greenstone Belt Exploration Update - More
- April 03, 2006 | Item | E-mail

New Island Resources Inc.: Drilling Commences at Nugget Pond - More
- April 03, 2006 | Item | E-mail

Franklin, COMIBOL Executives Move Closer to Completing Joint Venture Agreement -- Four Silver Veins in Potosi's Cerro Rico Is Initial Commitment - More
- April 03, 2006 | Item | E-mail

Cambodian Ventures Declares Stock Dividend for Shareholders - More
- April 03, 2006 | Item | E-mail

Inmet commences strategic process for Troilus mine - More
- April 03, 2006 | Item | E-mail

Update: Equitable Mining Corp seeks listing on Frankfurt Exchange - More
- April 03, 2006 | Item | E-mail

Nevsun Thanks the State of Eritrea - "Nevsun Resources Ltd. is very pleased to publicly thank the President of Eritrea and the Minister of Energy & Mines, Minister of National Development, Minister of Finance and their staff for a sincere and open welcome to Nevsun's visitors this past week. The visitors included a number of representatives from the European Investment Bank, Export Development Corporation of Canada, Proparco of France, Export Credit Insurance Corporation of South Africa, Standard Bank of South Africa and Endeavour Financial Corporation." More
- April 03, 2006 | Item | E-mail

Nevsun Gold Pour at Tabakoto - "The Tabakoto Gold Mine is in the commissioning phase and is expected to achieve commercial production in April 2006. The plant has been tested at commercial capacity (1200 tonnes per day which is 60% of full design capability) and the gravity and leach circuits are operating as per design. More continuity is required to achieve commercial production status." More
- April 03, 2006 | Item | E-mail

Flag Resources (1985) Limited - 2006 Exploratory Drilling Programs, Wanapitei Anomaly, Sudbury, Ontario - More
- April 03, 2006 | Item | E-mail

New Deaty gold zones, Shebandowan Camp, Thunder Bay, Ontario - More
- April 03, 2006 | Item | E-mail

Wesdome Gold Mines Ltd. - Drilling Confirms 388 Zone Potential, Kiena Complex, Val d'Or - More
- April 03, 2006 | Item | E-mail

Tumi Resources Limited - Tumi Expands Silver Exploration Claim Portfolio in the Bergslagen District, Sweden - More
- April 03, 2006 | Item | E-mail

New Virginia Announces Closing of Goldcorp Acquisition - More
- April 03, 2006 | Item | E-mail

FNX Mining Reports Strong Financial and Operating Results for 2005 - More
- April 03, 2006 | Item | E-mail

Kinbauri Gold Corp.: Drilling Confirms Potential of New PGE Discovery at Fiedmont, Quebec - More
- April 03, 2006 | Item | E-mail

Phoenix Matachewan Commences Drilling at Nevada Gold-Silver Project - More
- April 03, 2006 | Item | E-mail

Crew Gold: Apex Philippines Operations Update - More
- April 03, 2006 | Item | E-mail

Franc-Or Investigates Opportunities in Peru - More
- April 03, 2006 | Item | E-mail

Trend Mining Announces Gold Pour at Andacollo, Chile - More
- April 03, 2006 | Item | E-mail

Diamond Drilling is underway and significant Alpha Track Radon Cup Survey results received on the Macusani Uranium Project, Peru - More
- April 03, 2006 | Item | E-mail

Tara Gold Acquires Drill Advanced Silver/Gold Property - More
- April 03, 2006 | Item | E-mail

Birim Goldfields Inc.: Vic King Commences as New President - More
- April 03, 2006 | Item | E-mail

Northern Peru Intersects 56m @ 2.63g/t Gold in Step Out Drilling at Hilorico - More
- April 03, 2006 | Item | E-mail

Kalimantan Gold makes plans to drill advanced gold project - More
- April 03, 2006 | Item | E-mail

Carpathian Gold Inc. continues to intersect significant Au-Cu mineralization on its Colnic Au-rich Porphyry Prospect - More
- April 03, 2006 | Item | E-mail

Pearl Asian Mining Industries, Inc. Starts Exclusive Mining Operation, Gold Purchasing & Mineral Processing Agreement With One of Mindanao's Local Tribes - More
- April 03, 2006 | Item | E-mail

European Goldfields: Appointment Of CFO & VP Operations - More
- April 03, 2006 | Item | E-mail

Bird River Property Returned to Gossan - More
- April 03, 2006 | Item | E-mail

Maxam Gold Corporation Announces Plans for Gold Ore Testing - More
- April 03, 2006 | Item | E-mail

Little Squaw Launches Chandalar Gold Exploration - More
- April 03, 2006 | Item | E-mail

EURO Ressources S.A. Announces Results for Year Ended December 31, 2005 - More
- April 03, 2006 | Item | E-mail

Candente Resource Corp.: Copper Resource Boosted at Canariaco Norte, Peru - More
- April 03, 2006 | Item | E-mail

Vena Resources to Initiate Drilling Las Princesas Gold-Silver Project - More
- April 03, 2006 | Item | E-mail

First Quantum Announces Extension of Bid for Adastra - More
- April 03, 2006 | Item | E-mail

World Ventures Updates Shareholders on Sultan Minerals Program Jersey-Emerald - More
- April 03, 2006 | Item | E-mail

Great Panther Re-Discovers Spanish Riches at Guanajuato - "GREAT PANTHER RESOURCES LIMITED is pleased to announce that preliminary sampling at its Guanajuato Silver-Gold Mine Complex in Guanajuato, Mexico has returned spectacular bonanza grades from the Valenciana Mine. Silver grades ranged from 1,100 g/t (32 oz/t) to 30,468 g/t (889 oz/t) and gold grades ranged from 19 g/t (0.6 oz/t) to 177 g/t (5.2 oz/t) in 27 selective grab samples taken by the mine staff." More
- April 03, 2006 | Item | E-mail

Ivanhoe Mines Receives Initial Annual Payment of US$28 Million from the Sale of the Savage River Iron Ore Mine - "Ivanhoe Mines Ltd. announced today the company has received its first contingent annual payment, totalling US$28.0 million, from the sale of the Savage River iron ore mine in Australia, bringing the total payments received to date to US$49.5 million." More
- April 03, 2006 | Item | E-mail

Seabridge to Acquire Noche Buena Gold Project - "Seabridge Gold announced today that it has reached agreement with Hecla Mining Company to acquire Hecla's 100% interest in the Noche Buena gold project located in Sonora, Mexico for US$4,350,000 in cash. The transaction is expected to close within 30 days. During the past 90 days, Seabridge has conducted technical, legal and environmental due diligence on the project including commissioning an independent 43-101 Technical Report on the project by Resource Modeling Inc. of Tucson, Arizona." More
- April 03, 2006 | Item | E-mail

Apollo Gold Reports Fourth Quarter and Year End 2005 Results - "Apollo's revenues from continuing operations for the three months ended December 31, 2005 decreased 45% to $7.0 million from $12.7 million for the three months ended December 31, 2004. Gold production decreased 58% to 5,026 ounces for the three months ended December 31, 2005 from 12,090 ounces for the three months ended December 31, 2004." More
- April 03, 2006 | Item | E-mail

Randgold Resources announces Annual Report published - "The London and Nasdaq listed gold miner more than doubled its net profit for the year to US$41 million on the back of a 54% increase in attributable production to 314 831 ounces, and had cash resources of some US$152 million at the year-end. Attributable reserves increased by 115% to 5.42 million ounces and attributable resources by 16% to 11.67 million ounces, improving the reserve: resource ratio from 25% to 46% year on year." More
- April 03, 2006 | Item | E-mail

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