ADVERTISEMENT

The China-Driven Fuel Shortage 139 Times Bigger Than Oil...

China's creating a pandemic shortage of this essential fuel so severe that spot prices have already doubled and suppliers are scrambling to get "online." And yet, China's about to increase imports by 1,761% to support the "largest buildout" in the history of energy... How will they do it? The solution lies with one company... Investors who act now could make 212% by April 19...

 

Gold rallied to new 25 year highs in after hours trade late yesterday and held near $635 in Asia before it rallied to new highs above $645 in London, but it then dropped dramatically in morning New York trade, falling over 3% at one point to under $610 before a rebound into the close brought it back near $620.  Silver climbed over $14.60 in after hours trade late yesterday and dropped down near $14.00 in Asia before it rallied back above $14.60 in London, but it then plummeted in New York to find losses of nearly 15% to under $12.50.  Silver was not able to find the rebound that gold did and it ended at its low of the session.  At the time of writing, gold is down 1% from its close and silver is down over 3% under $12 in today’s after hours session.

Euro gold fell to about €500, platinum lost $20 to$1,092, palladium lost $23 to $345, and copper fell over 10 cents at one point but rallied into the close to end less than 2 cents lower at about $2.97.

Gold and silver equities fell about 5-6% in the first 2 hours of trade and then rebounded slightly, but they then fell back off into the close and ended at their lows of the session with over 6% losses.

More Precious Metals Analysis:

From yesterday’s Midas report by Bill Murphy of LemetropoleCafe.com:

“Gold and silver are going far higher than most EVERYONE in the mainstream gold world and on Planet Wall Street can conceive. The gold market has the largest short position in history relative to supply. It is mind boggling what these people (The Gold Cartel) have done.

At some point the light bulb WILL go off for the investing public. There will be a rush into the gold/silver share sector like you cannot believe. Many of the smaller golds will DOUBLE in days. It will be a sight to behold.

There is a way to make it happen FASTER and that is to get the astoundingly right-on GATA DVD at www.GoldRush21.com into the hands of the press. Gold is going nuts. They might bite now.”

From Peter Spina of www.goldforecaster.com:

“As is so often case in the precious metals bull markets, corrections tend to be vicious and quick!  With the major move higher over the past several sessions, the gold market is working off some of the excesses. This market tends to squeeze the marginal holders and with them exiting along with protective stop limits, there can be these sharp drops.  Instead of selling into weakness, investors with long-term perspectives will be able to take advantage of this sale in the metal markets.

Gold will find support in the low $600’s then around $580 should it need to correct a bit more. The HUI has some good support around 350 then around the 335 area.  This correction possibly will last some trading sessions which will then likely be followed by a strong reversal.

This correction has a similar feel to the December fall where gold moved from $541 to $489.90 in just seven trading days.  Not even a month latter, gold was back at new records, trading near $570.

The gold and silver bull market fundamentals have not changed since yesterday instead they continue to improve by the day.  One must keep a long-term view and not be jolted by such large short-term movements.  If you have become a bit anxious by today’s sell-off, pull up a 5-year chart of gold and see how today’s trading is nothing but new as we move higher targeting $1,000 gold and beyond.

Corrections in a bull market should be looked upon as an advantage to buy more at a cheaper level.  We are making higher highs and higher lows.  Until the premise of the bull market changes, there is no need for concern.”

From The Hightower Report, Futures Analysis and Forecasting:

“The gold market at least managed to reject part of the huge losses that were initially since Thursday morning but with the silver market finishing poorly, the bear camp is still feeling confident. Certainly a rising Dollar was partially responsible for the weakness but weakness in the energy complex and outright speculative balancing were more than likely an even more significant force in the trade. With the global economic outlook still intact, the bull camp probably retains some control but the trade is watching closely for any signs of more stop loss selling by weak handed longs. In the end the majority of the gains in gold over the last 6 months seem to have come from physical and investment demand and therefore sharply lower prices should at least interest the physical buyers, even if the investment buyers are suspicious.

The silver was unable to reject the selling pressure as effectively as gold. Apparently the Press was reporting aggressive fund liquidation and when one considers the magnitude of the upside gains over the prior 3 trading sessions, it is not surprised that chart violations sparked wave after wave of long liquidation. As suggested in the gold market, there doesn't appear to be a major macro economic shift taking place but seeing energy prices down sharply and the Dollar up moderately probably weakened the resolve of existing longs and scared off would be buyers. In a single session, the May silver took out six stellar days of gains and that has to undermine at least a portion of the entrenched bullish interest.”

Limit move down briefly halts NY silver trade-NYMEX

From Charleston Voice early in the day:

Silver Futures - -

Oil made new record highs early on, but it then fell off to find losses of more than a dollar at one point on word of production coming back on line and also on easing geopolitical worries.

The U.S. dollar index rebounded from 7 month lows on decent economic data that may influence the fed to continue to raise interest rates.

Treasuries dropped a bit following the Philadelphia Fed survey that was deemed economically strong, but they then rebounded into the close and ended unchanged on the day.

The Dow and S&P rose to find impressive gains while the Nasdaq held mostly lower as investors reacted to a slew of earnings reports from late yesterday and early today.  The Dow made a new 6 year closing high while the Nasdaq fell from 5 year highs.

Among the big names making news in the market today were Google, GM, Bank of America, Merck, Altria, BellSouth, Schering-Plough, Sprint and UbiquiTel, UPS, Marriot, EMC, and Nokia, Apple, Juniper, Intel, EBay, Kraft, and Qualcomm.

GATA Posts:

You're invited to dinner meeting of Comm. for Monetary Research and Education

More hand wringing from IMF as if U.S. ever really might act more responsibly

MiningMX interviews Bill Murphy and Murray Pollitt

Iran's president says oil is worth much more than developed world pays for it

Gold & Silver Stock News Update from GoldReview.com:

Newmont’s earnings, Canyon Resources’ drill results, Tanzanian Royalty’s kimberlite indicator minerals confirmation, Miramar’s increase in mineral resources at Hope Bay, Goldcorp’s Los Filos Feasibility Study, Seabridge’s closed C$8.4 million financing, Kimber’s updates resources at Carmen, Goldcorp’s plan to sell five former Placer Dome properties, and Silver Wheaton’s completed C$200 million financing were among the big stories in the gold and silver mining industry making headlines today.

Sorry gold bugs, no “winners” today.

LOSERS

All of today's gold and silver stock news:

Canyon Resources Continues to See Positive Drill Results at Its Briggs Mine - "Canyon Resources Corporation, a Colorado-based mining company is pleased to announce additional encouraging results from its reverse circulation (RC) drilling program at the Company's Briggs Mine located in the Panamint Mountains of southern Inyo County, California. A total of 16,547 feet in 49 RC holes have been drilled in our recent development drilling program, from which we have received assays on a total of 32 holes, twelve of which had been previously reported on March 3, 2006." More
- April 20, 2006 | Item | E-mail

Western Goldfields Announces 3,500,000 Ounce Gold Resource for Mesquite Mine, Imperial County, California - More
- April 20, 2006 | Item | E-mail

Terex Announces Financing - More
- April 20, 2006 | Item | E-mail

Pan American Silver to release first quarter results May 3, 2006 - "Pan American Silver Corp. will release its 2006 first quarter financial and operating results after market close on May 3, 2006 and will host a conference call to discuss them on Thursday, May 4, 2006 at 8:00 AM Pacific Time, 11:00 AM Eastern Time." More
- April 20, 2006 | Item | E-mail

Gryphon Reports Significant Drill Results from Graben Zone, Borealis, Nevada - More
- April 20, 2006 | Item | E-mail

Tonogold Resources, Inc. Stakes an Additional 25,600 Acres at Nyac, Alaska Gold Project - More
- April 20, 2006 | Item | E-mail

Emgold Receives Strong Support From Residents of Grass Valley for Start-Up of the Idaho-Maryland Mine - More
- April 20, 2006 | Item | E-mail

Franklin Retains Quintanilla & Soria - More
- April 20, 2006 | Item | E-mail

Sacre-Coeur Minerals Commences Trading on the Frankfurt Stock Exchange - More
- April 20, 2006 | Item | E-mail

Gold Canyon Receives Cordero Resource Estimate: 337,360 Kilograms Gallium Indicated; 384,640 Kilograms Gallium Inferred - More
- April 20, 2006 | Item | E-mail

Madison Minerals Inc.: Next Phase of Drilling Planned for Lewis Property in Nevada - More
- April 20, 2006 | Item | E-mail

CGW intersects 4.5 Metres of kimberlite at Mud Lake - More
- April 20, 2006 | Item | E-mail

Carpathian Gold Inc. calls in warrants - More
- April 20, 2006 | Item | E-mail

Mexivada Stakes 51 lode claims on Cortez Trend in Nevada - More
- April 20, 2006 | Item | E-mail

Kinbauri Gold Corp.: Drilling at Peton de Lobo Extends High Grade Gold Veins - More
- April 20, 2006 | Item | E-mail

MacDonald Mines Announces Closing of $1,396,660 Flow Through and Unit Financing - More
- April 20, 2006 | Item | E-mail

Cream Minerals Earns 51% Interest in Casierra Diamond Licences - More
- April 20, 2006 | Item | E-mail

Grandview Gold Chooses Westwind Partners to Evaluate Merger Proposals - More
- April 20, 2006 | Item | E-mail

Robex Resources Inc. - Primary gold source discovered at Diangounte - More
- April 20, 2006 | Item | E-mail

Largo to Begin Drilling on Northern Dancer Tungsten-Molybdenum Project, Yukon - More
- April 20, 2006 | Item | E-mail

Luna Gold Corp. - Geochemical survey identifies gold in soil anomalies at Red Rock project - More
- April 20, 2006 | Item | E-mail

Pele Mountain Expands Exploration at Highland Gold Project - More
- April 20, 2006 | Item | E-mail

Anatolia Receives Positive Feasibility Study for Copler Gold Project - More
- April 20, 2006 | Item | E-mail

Tanzanian Royalty Confirms Indicator Minerals Likely Sourced from Diamondiferous Kimberlite - "From an exploration perspective, knowledge of the composition and relative abundance of garnets and chromites in kimberlite - the primary source rock for diamonds throughout the world - allows assumptions to be made about the proximity and economic diamond potential of a kimberlite," noted the Company's president, John Deane. More
- April 20, 2006 | Item | E-mail

Newmont Mining Net More Than Doubles as Gold Prices Jump to 25-Year High - "Newmont Mining Corp., the world's biggest gold producer last year, said first-quarter profit more than doubled after prices jumped to a 25-year high. Net income rose to $209 million, or 46 cents a share, from $84 million, or 19 cents, a year earlier, Denver-based Newmont said today in a statement distributed by PRNewswire. Sales rose 21 percent to $1.15 billion from $961 million." More
- April 20, 2006 | Item | E-mail

Normabec: Best Gold Intersection Ever on Pitt Gold, 82,88 g/t Au over 4,58 m - More
- April 20, 2006 | Item | E-mail

Crew Gold Corp.: Nalunaq Operations Update - More
- April 20, 2006 | Item | E-mail

UC Resources Ltd. Announces Letter of Intent to Purchase Minera Silver Creek S.A. de C.V., Consisting of High Yield Tailings, Mines, and Milling Facility - More
- April 20, 2006 | Item | E-mail

Symbol Change to INFX - More
- April 20, 2006 | Item | E-mail

Antares commences drilling at Rio Grande copper-gold porphyry project, NW Argentina - More
- April 20, 2006 | Item | E-mail

Anglo Swiss Resources Updates Work Programs on the Kenville Gold Mine, a Multi-Mineral Exploration Project for Porphyry Mineralization of Gold, Copper, Silver & - More
- April 20, 2006 | Item | E-mail

Argentex reports anomalous gold results from regional sampling in Santa Cruz, Argentina - More
- April 20, 2006 | Item | E-mail

Private Placement Completed and 2006 Exploration Program Being Finalized - More
- April 20, 2006 | Item | E-mail

Alexis-Falconbridge Joint Venture Commence 2006 Drill Program - More
- April 20, 2006 | Item | E-mail

Farallon Focuses on Initial Development at G-9 - More
- April 20, 2006 | Item | E-mail

European Goldfields: Greek Government Positive on Business Plans - More
- April 20, 2006 | Item | E-mail

Itronics Reports 27.5% Increase in GOLD'n GRO Fertilizer Division First Quarter 2006 Sales - More
- April 20, 2006 | Item | E-mail

Silver Wheaton Completes C$200 Million Financing - "Silver Wheaton Corp. is pleased to announce that it has closed its previously announced "bought deal" equity financing for gross proceeds of C$199,728,000. A syndicate of underwriters, led by GMP Securities L.P. and including Canaccord Capital Corporation, Scotia Capital Inc., BMO Nesbitt Burns Inc., Haywood Securities Inc., Salman Partners Inc., Blackmont Capital Inc., RBC Dominion Securities Inc. and Sprott Securities Inc., purchased 16,644,000 common shares at a price of C$12.00 per share. The total shares purchased included 2,044,000 shares issued upon exercise of the underwriter's over-allotment option." More
- April 20, 2006 | Item | E-mail

Compania de Minas Buenaventura Announces First Quarter 2006 Conference Call - "Friday, April 28, 2006 @ 11:00 a.m. EDT" More
- April 20, 2006 | Item | E-mail

Miramar Reports Resource Growth Reaches Critical Mass to Support Large Development Studies - "Miramar Mining Corporation today announced a significant increase in the mineral resources at its 100% controlled Hope Bay project in Nunavut. Using the same cut-off grades as in 2004, more than one million new ounces of gold have been added to the Madrid resource. In addition, given the, recently identified potential for a large open pit concept at the Madrid area, changes in resource reporting parameters have led to an overall increase of 2.6 million ounces of gold due to lowering cut-off grades." More
- April 20, 2006 | Item | E-mail

Goldcorp Completes Los Filos Feasibility Study - "Project construction is well advanced and expected to be completed by the end of 2006 with commercial production planned to start in the second quarter of 2007. Commercial production for 2007 is expected to be 200,000 ounces of gold rising to 350,000 ounces in 2008. Approximately 70% of all project capital has been either spent or committed to date. The access road is completed, electrical power is energized, the water supply is 80% complete, and pit stripping is 35% complete with the ore leaching facilities 40% complete." More
- April 20, 2006 | Item | E-mail

Seabridge Gold Closes Cdn$8.4 Million Financing - "Seabridge Gold announced today that it has closed its previously announced Cdn$8,443,750 private placement financing consisting of 875,000 common shares at Cdn$9.65 per share. The shares issued under this private placement are subject to a four-month hold period expiring on August 20, 2006. There were no commissions or finder's fees payable on the financing." More
- April 20, 2006 | Item | E-mail

Kimber updates resource at Carmen: increases gold measured & indicated by 27% - "Kimber is pleased to report an updated resource estimate on the Carmen deposit. This update, Estimate "M", is based on 344 reverse circulation holes drilled to February 15, 2006. The estimate incorporates an additional 72 holes, representing a 21% increase since the last Resource Estimate "L" on the Carmen reported September 6, 2005." More
- April 20, 2006 | Item | E-mail

Newmont Mining Corporation First Quarter 2006 Results - "Newmont Mining Corporation today announced first quarter income from continuing operations of $213 million ($0.48 per share) compared with $85 million ($0.19 per share) for the first quarter of 2005. First quarter net income from continuing operations was positively impacted by a $48 million ($0.11 per share) tax adjustment." More
- April 20, 2006 | Item | E-mail

Pediment Exploration Ltd.: Trench Sampling Yields Up to 3 Metres of 69.8 g/t Gold - More
- April 20, 2006 | Item | E-mail

Goldcorp to sell five former Placer Dome properties - "Canada's Atlas Cromwell Ltd. said it has struck a C$120 million all-stock deal to buy five exploration and development stage gold and copper properties from Goldcorp Inc. Atlas, which trades on the junior TSX Venture Exchange, will obtain control of the properties, which are located in British Columbia, Yukon and Nunavut, in return for C$120 million worth of its preferred shares. The shares are convertible into up to 240 million of its common shares at 50 Canadian cents a share." More
- April 20, 2006 | Item | E-mail

Would you like to receive the Free Daily Gold Seeker Report in your e-mail? Click here

Do you have questions, comments, or suggestions about this report?  Email Chris Mullen at cm@goldseek.com

- Written by Chris Mullen

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

The Gold Seeker Closing Report is a free edition providing a daily wrap-up of gold & gold-related news.  For more in-depth analysis of the gold markets, subscribe to The Gold Forecaster.

All sources are given within the report and most articles can be found as they are released at http://www.capitalupdates.com/, http://www.goldseek.com/, http://www.silverseek.com/, and http://www.goldreview.com/.

© Gold Seeker 2006

Note: This article may be reproduced provided the article, in full, is used and mention to Gold-Seeker.com is given.

Disclosure: The owner, editor, writer and publisher and their associates are not responsible for errors or omissions.  The author of this report is not a registered financial advisor.  Readers should not view this material as offering investment related advice. Gold-Seeker.com has taken precautions to ensure accuracy of information provided. Information collected and presented are from what is perceived as reliable sources, but since the information source(s) are beyond Gold-Seeker.com’s control, no representation or guarantee is made that it is complete or accurate.  The reader accepts information on the condition that errors or omissions shall not be made the basis for any claim, demand or cause for action.  Past results are not necessarily indicative of future results.  Any statements non-factual in nature constitute only current opinions, which are subject to change.  Nothing contained herein constitutes a representation by the publisher, nor a solicitation for the purchase or sale of securities & therefore information, nor opinions expressed, shall be construed as a solicitation to buy or sell any stock, futures or options contract mentioned herein.  Investors are advised to obtain the advice of a qualified financial & investment advisor before entering any financial transaction.