-- Posted 28 April, 2006 | | Source: SilverSeek.com

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

Today’s Economic Data:

This week’s economic reports:

Next week’s economic highlights include Personal Income and Spending, Construction Spending, and the ISM Index on Monday, Factory Orders and ISM Services on Wednesday, Productivity on Thursday, and April jobs data on Friday.

CoT Reports Released: Gold | Silver 

Gold remained near $635 in Asia, gained a couple of dollars in London, jumped to $645 in early New York trade, fell off a bit, jumped to over $655, and then fell slightly into the close, but it still ended at over $650 with a 2.79% gain to new 25 year highs.  Silver traded about 20 cents higher in late Asian/early London trade before it fell to near unchanged by the New York open, but it then rocketed higher throughout trade in New York and gained 8.34% to close within $1.03 of its 22 and ½ year closing highs made on April 19^th.

Gold and silver equities jumped about 3% at the open and gained another 2% in later morning trade before they fell off a bit, but they then rallied into the close and ended near their highs of the day.  All three indices closed within 2% of their all-time highs set on April 19^th.

Euro gold rose to new all-time highs above €515, platinum gained $18 to $1,146 to new 26 year highs, palladium gained $13 to $371 to new 3 and ½ year highs, and copper stormed to new record highs above $3.20.

From Thursday’s Midas report by Bill Murphy of LemetropoleCafe.com, commenting on Bernanke’s testimony:

“My first reaction was how bullish … which is what just the market correctly saw. Gold rallied $4 up on the day … silver up 40 cents. ENTER THE CORRUPT GOLD CARTEL. Having bought the dips, they stopped the rally cold. Meanwhile, they sat all over the senior gold shares from the get-go as they have for days, to make sure gold excitement over the Bernanke cave was smothered. A blind squirrel could see that acorn.

Sure enough, after letting enough specs jump in on the long side, they attacked for the second time for the day. There was NO WAY The Gold Cartel was going to let gold move up to signal to the investment world the real meaning of Bernanke’s pronouncement today.”

From The Hightower Report, Futures Analysis and Forecasting:

“The gold market got support from a wide variety of fundamental and technical factors as it headed into the last trading day of the month. The Dollar started out sharply lower and remained weak, oil prices were higher for most of the session and equity prices were initially showing significant strength. Perhaps more importantly a wide cross section of physical commodity markets showed signs of aggressive buying interest and that seemed to justify the early strength in the gold and precious metals markets. Certainly there was some flight to quality buying off the Iranian compliance situation but one gets the sense that the buying was a part of a wave of commodity fund and spec buying. It seems that the gold market mostly discounted soft economic readings, partly because the stock market was sending off positive signals on the economy. As we suggested in the mid day commentary, the overt strength and the soaring investment buzz from silver was probably spilling into the gold market. While the scheduled numbers and the Fed dialogue don't seem to point to inflation, market sentiment seems to have a different opinion.

The silver market continued to get the benefit of investment buzz! With the US stock market showing an early run, silver and copper seemed to discount the fact that US economic numbers released during the session were somewhat softer than expected. However, with the exception of the natural gas market almost all physical commodity markets were significantly higher on the day and as we mentioned in the gold coverage that smacks of a broad based investment buying wave. For silver to come out of a wild week of volatility, with such convincing action it is logical to expect weekend Press coverage to attract even more interest to the market.”

From Peter Spina of www.goldforecaster.com:

"Those who want to prevent Iranians from obtaining their right, should know that we do not give a damn about such resolutions” - President Mahmoud Ahmadinejad

“With the U.S. Dollar Index trading at lows not seen since last September and tensions increasing with Iran, gold launched to new record levels Friday.  There is strong demand coming from overseas and with many major Asian and European markets closed Monday, investors are having a hard time justifying why they should not have gold going into the weekend.

All indications are that the geo-political tensions will continue to support gold at this juncture with the breakdown in the US Dollar adding even more ammo to the run.  $700 is now achievable in May.  On the downside, gold will continue to find great support around $600. 

Silver moved back above $13 on the launch of the highly-anticipated ETF.  Interesting to note, SLV has been trading above the spot price all morning, closing about 30 cents above the quoted spot price.  Demand is exceptionally strong and we forecast a very successful future for these silver-backed shares.  Despite short-term gyrations, silver is still on track to move past $15 this year targeting upwards of $20-25.  There is tremendous support around $10 an ounce.”

The U.S. dollar index fell to new 11 month lows on expectations that Europe and Japan will raise interest faster than the fed in the U.S.

Oil rose on geopolitical concerns over Iran, snapping a four day losing streak.

Treasuries remained near unchanged on the day’s economic data that came in about as expected.

The Dow remained near unchanged, the Nasdaq traded noticeably lower, and S&P trade mostly slightly higher as the indices reacted to various earnings reports.

Among the big names making news in the market Friday were Pinnacle Entertainment, Aztar, Ameristar, Chevron, Microsoft, Avon, Constellation Energy, Coventry Health, American Axle, Cummins, VW, and Kia Motors.

GATA Posts:

Iran will launch oil exchange next week, oil minister says

To bring the dollar down a little, let Russia and Iran price oil in euros

Dollar drops as Fed chairman suggests interest rate hikes may end

Richard Appel: Short squeeze in gold, silver, and copper

Barclays silver ETF begins trading Friday

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Gold & Silver Stock News Update from GoldReview.com:

Buenaventura’s earnings, a possible strike at Peru's Yanacocha gold mine, and Seabridge’s completed acquisition of the Noche Buena gold project were among the big stories in the gold and silver mining industry making headlines Friday.

WINNERS

LOSERS

All of Friday's gold and silver stock news:

Yamana Gold First Quarter Financial Results Release Notification and Conference Call - "Yamana Gold Inc. announces that the first quarter 2006 financial results will be released after market closes on May 8, 2006. A conference call and audio webcast has been scheduled for May 9, 2006 at 11:00 a.m. E.S.T. to discuss the results." More
- April 28, 2006 | Item | E-mail

Inter-Citic Receives Final Receipt for Short Form Prospectus - More
- April 28, 2006 | Item | E-mail

Redcorp Ventures Ltd.: Adjournment of Annual General Meeting - More
- April 28, 2006 | Item | E-mail

Golden China Resources Corporation announces completion of C$18 million financing and agreement to loan up to C$18 million to Michelago Limited - More
- April 28, 2006 | Item | E-mail

China Gold Corp. Announces Five for One Forward Stock Split - More
- April 28, 2006 | Item | E-mail

Annual and Special Meeting for Inter-Citic Minerals Inc. - More
- April 28, 2006 | Item | E-mail

Goldcrest Resources Ltd. Engages Investor Relations Professional - More
- April 28, 2006 | Item | E-mail

Gold Canyon Holds Annual General & Special Meeting of Shareholders - More
- April 28, 2006 | Item | E-mail

Wescan Goldfields Inc. announces year end results - More
- April 28, 2006 | Item | E-mail

Columbia Metals Corporation Limited Information to be Available Through S&P Market Access Program - More
- April 28, 2006 | Item | E-mail

Wildcat Exploration Ltd. Appoints New President & C.E.O. - More
- April 28, 2006 | Item | E-mail

Workers at Peru Yanacocha mine threaten new strike - "Workers at Peru's Yanacocha gold mine, Latin America's biggest, threatened on Friday to start a new strike in two weeks after breaking off their dialogue with mine officials, a union official said Friday. Some 1,000 workers went on a one-day strike on April 17 to call for improved health and education benefits." More
- April 28, 2006 | Item | E-mail

Peru Buenaventura 1st qtr net beats expectations - "Peru's top precious metals miner, Compania de Minas Buenaventura, on Friday reported a better-than-expected rise in first-quarter profit due to high gold prices, lifting its shares 6 percent. Buenaventura, which holds 43.65 percent in Yanacocha, Latin America's biggest gold mine, said its net income in the first three months of the year rose 89 percent to $125.1 million." More
- April 28, 2006 | Item | E-mail

Virginia Sells its Stabell Property to Alexandria Minerals - More
- April 28, 2006 | Item | E-mail

Frontera Copper Reports on Construction Progress at Piedras Verdes - More
- April 28, 2006 | Item | E-mail

Called Carpathian Gold warrants exercised - More
- April 28, 2006 | Item | E-mail

Moto Goldmines Limited: Quarterly Report For The Period Ended 31 March 2006 - More
- April 28, 2006 | Item | E-mail

Intrepid Hits High Silver Values in New Zone at Kamila - More
- April 28, 2006 | Item | E-mail

Kalimantan Gold Corporation Limited - Deep Drilling Complete at FEZ Baroi - More
- April 28, 2006 | Item | E-mail

Infinity Mining Tightens Up Its Stock Position - More
- April 28, 2006 | Item | E-mail

Troy Resources NL: Report on Activities for the Quarter Ended 31 March 2006 - More
- April 28, 2006 | Item | E-mail

Seabridge Completes Acquisition of Noche Buena Gold Project - "Seabridge Gold announced today that it has completed the acquisition of Hecla Mining Company's 100% interest in the Noche Buena gold project located in Sonora, Mexico for US$4,350,000 in cash. As part of its due diligence on the project, Seabridge commissioned Resource Modeling Inc. of Tucson, Arizona to prepare an independent National Instrument 43-101 Technical Report on the project. The Technical Report will be filed on SEDAR." More
- April 28, 2006 | Item | E-mail

Compania de Minas Buenaventura Announces First Quarter 2006 Results - "This quarter, Buenaventura's net income was US$125.1 million, or US$0.98 per ADS, which represents an increase of 89% when compared with 1Q05. This figure includes a negative effect in mark-to-market variation of US$10.3 million. Operating income was US$55.7 million, 111% higher than the figure recorded in 1Q05 due mainly to higher silver production and higher prices of silver, zinc and lead that benefited all our operations. Total EBITDA was US$190.8 million, which represented a 62% increase when compared to 1Q05. EBITDA from Buenaventura's direct operations was US$50.6 million, 87% higher than in 1Q05." More
- April 28, 2006 | Item | E-mail

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- Written by Chris Mullen

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