Gold traded a couple dollars on either side of unchanged in Asia before it fell off in London trade and dropped near $670 in morning New York trade, but it then rallied back near $680 by afternoon trade and remained at about that level into the close to end 0.73% lower and fall from 25 year highs.  Silver rose to over $14 in Asia before it also fell off in London and dropped to under $13.50 in morning New York trade, but a rally into the close cuts its losses and silver closed just 0.86% lower.

Euro gold fell from all-time highs but remained near €535, platinum gained $14 to $1,188, palladium remained unchanged at $371, and copper fell slightly from all-time highs but remained above $3.45.

Gold and silver equities fell over 2% in the first hour of trade, but they then slowly and steadily rallied for the rest of trade and ended with only about 1% losses.

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

“What almost no one out there in the mainstream gold world/Planet Wall Street understands is the market is short THOUSANDS of tonnes of gold, which were leased out as part of an artificial price suppression scheme … one that is in the process of unwinding. The problem for the bad guys, and other major shorts, is how do you get out of a position like that in a market which is already in a 1500+ tonne annual supply/demand deficit? You CANNOT, not at these LOW prices!”

From The Hightower Report, Futures Analysis and Forecasting:

“The gold market did manage a new high in the futures and a fresh 25 year high in the European market but apparently the bulls were lacking in resolve. Certainly the main pressure on prices was the news that Iran was at least considering for a diplomatic solution to the potential Nuke flap. We suspect that the recovery in the Dollar and the mid day setback in the equity market added to the pressure in the market, but with the additional weakness in crude oil and gasoline prices even the economic uncertainty situation was downplayed.  Some traders suggested that the size of the spec long position simply served to spark profit taking, while others suggested that the prospect of a US rate hike on Wednesday prompted longs to step aside. One might also suspect that gold came under some pressure from a fundamental perspective, as the gold market saw two examples of rising gold production during the session Monday, with the most significant news coming from a 12.3% increase in February Peru gold output.

According to the Press the silver market was down off the talk of an Iranian letter to the US in an effort to diffuse the United Nations sanctions debate. However, we suspect that the silver market was partially undermined by the weakness in the copper market and partly disappointed in the outlook for the US economy, which has certainly been downgraded in the wake of the somewhat disappointing US payrolls and various forecasts this morning of slower US growth ahead. Coeur D'Alene Mines Corp indicated that their silver production in the most recent reporting quarter rose to 2.8 million ounces from 2.2 million ounces in the same period last year. Countervailing the higher Coeur D'Alene production gain, the Peru February silver production posted a decline of 1.3% on 254,386 kilograms. Certainly the weakness in the gold market added to the vulnerability of the silver markets and with the equity market giving up gains the face of strength in the energy complex, it seems as if the fundamental negatives for silver were rather abundant to start the new week!”

Oil fell on easing geopolitical concerns over Iran as they sent a letter to President Bush that was seen as an effort towards diplomatically solving recent disagreements over nuclear build up.  Oil had traded over a dollar lower for most of trade, but a rally into the close cut its losses by more than half.

The U.S. dollar index found slight gains and treasuries remained near unchanged as traders looked ahead to the fed meeting and to two refunding auctions later in the week.

The Dow, Nasdaq, and S&P traded mostly flat as most weighed moves from the fed against drops in energy prices.

Among the big names making news in the market today were Dell, Teck Cominco, Inco, Falconbridge, Sony, Microsoft, United Airlines, Apple, Wachovia and Golden West, Thermo Electron and Fisher, and Berkshire Hathaway.

GATA Posts:

Andy Mukherjee: Asia is getting ready to dump the dollar peg

Buffett says Bershire Hathaway has sold its silver

Vietnam would restrain gold price with plan for buying through banks

A great photograph of 'Mister Gold,' Jim Sinclair

Sunday NYTimes features Jim Sinclair and GATA's Bill Murphy and James Turk

John Embry: Gold and silver on a tear

Iran takes step toward euro-based oil bourse but some are skeptical

Yuan seen likely to break below 8 to the dollar next week

Bolivia says U.S.-run silver mines have 'full certainty and legal security'

James Turk: Dollar's bear-market rally is over

Ben Bernanke, we'll be watching you

Gold & Silver Stock News Update from GoldReview.com:

Earnings from Randgold Resources (GOLD) and Coeur d'Alene (CDE), Aurizon Mines’ (AZK) project update, Arizona Star’s (AZS) director appointment, Miramar’s (MNG) re-election of the board of directors, Cardero’s (CDY) property acquisitions in Argentina, Richmont Mines’ (RIC) bought deal financing, Queenstake’s (QEE) drill results, and Randgold Resources’ (GOLD) Loulo region and quarterly performance 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:

Aurizon Mines Ltd.: News Release - "Aurizon Mines Ltd. wishes to announce that, further to the announcement of May 1, 2006, work has resumed on the construction of the West Mine shaft at the Company's Casa Berardi project." More
- May 08, 2006 | Item | E-mail

Confirmation of High Grade Gold at Mana's Nyafe Deposit - More
- May 08, 2006 | Item | E-mail

Imperial Reports First Quarter Production for Mount Polley and Huckleberry Mines - More
- May 08, 2006 | Item | E-mail

Arizona Star Resource Corp.: The Board of Directors Announces Director Appointment - "Mr. Reynolds is currently the Senior Vice President, CFO and Secretary of SouthernEra Diamonds Inc. He has 18 years of mineral industry and public accounting experience, with SouthernEra, TVX Gold Inc., Inmet Mining Corporation and Price Waterhouse (now PriceWaterhouseCoopers). Mr. Reynolds became a Certified General Accountant in 1994 and received a B.A. (Economics) from McGill University in 1987. Mr. Reynolds will serve as an independent director, and Chairman of the Audit Committee." More
- May 08, 2006 | Item | E-mail

Piedmont Mining Company Closes Final Tranche of Private Placement - More
- May 08, 2006 | Item | E-mail

Copper Fox Metals Inc. to raise $4,000,000 in flow-through and non flow-through funds - More
- May 08, 2006 | Item | E-mail

ECU Silver Mining Inc.-Press Release - More
- May 08, 2006 | Item | E-mail

BacTech to Evaluate Copper Opportunities - More
- May 08, 2006 | Item | E-mail

Goldcorp Declares Fifth Monthly Dividend Payment for 2006 - "GOLDCORP INC. is pleased to declare its fifth monthly dividend payment for 2006 of $0.015 per share. Shareholders of record at the close of business on Friday, May 19, 2006 will be entitled to receive payment of this dividend on Friday, May 26, 2006." More
- May 08, 2006 | Item | E-mail

Mansfield Minerals Inc.: Prefeasibility Work Continues at Lindero - More
- May 08, 2006 | Item | E-mail

Mayfair Mining & Minerals, Inc. Retains The Vine Group - More
- May 08, 2006 | Item | E-mail

Amera Granted 100% Interest in 'Mitu' Copper-Silver Property - More
- May 08, 2006 | Item | E-mail

Miramar Mining's Annual General Meeting Re-elects Board of Directors - "During the AGM, Miramar reviewed the highlights of 2005 and looked forward to its objectives for 2006. 2005 was a year of significant developments for Miramar Mining Corporation. On all fronts it was a year of achievement as the Company continued to follow its strategy and grow the potential of its assets and its people." More
- May 08, 2006 | Item | E-mail

CHAPLEAU RESOURCES LTD. Announces the Start-Up of a 2500 meter Reverse Circulation Drill Program on the La Pampa, Iron Oxide Copper-Gold Project in Argentina - More
- May 08, 2006 | Item | E-mail

Cardero Tying Up New Gold District in NW Argentina - "Cardero Resource Corp. is pleased to announce that it is finalizing the acquisition of twelve new gold properties located in the provinces of Jujuy and Catamarca in northwest Argentina. The properties cover an aggregate area of approximately 580 square kilometres and are a combination of 100% Cardero owned (staked) ground and land being acquired through option agreements with local third parties (presently being finalized)." More
- May 08, 2006 | Item | E-mail

Thundermin raises $300,000 in private placement offering of common shares and common share purchase warrants - More
- May 08, 2006 | Item | E-mail

Silver price surge boosts Coeur d'Alene - "Coeur d'Alene Mines Corp. on Monday posted a first-quarter profit after a year-earlier loss, due in part to an increase in silver production and higher silver and gold prices. Net earnings were $14.3 million, or 5 cents per share, compared with a loss of $1.1 million, or nil per share, in the same quarter of 2005, said the company, based in Coeur d'Alene, Idaho." More
- May 08, 2006 | Item | E-mail

Douglas Lake Minerals and Canaco Begin Assembling Exploration Team for Tanzania - More
- May 08, 2006 | Item | E-mail

RSM Plans to Carry out Nevada Exploration this Year to Include Drill Testing the Copper-Gold and Several Gold/Silver Projects - More
- May 08, 2006 | Item | E-mail

King's Bay Gold Discovers Copper, Zinc, Platinum at 'North Rock' Area Property, Fort Frances - More
- May 08, 2006 | Item | E-mail

Golden River Resources Corporation Announces the Issue of Shares of Common Stock and Options to Extinguish Debt - More
- May 08, 2006 | Item | E-mail

Battle Mountain Royalty Update -- Initial Resource Estimate for Sega Project - More
- May 08, 2006 | Item | E-mail

Mustang Completes M2 Drilling, Commences Second Mineral Resource Estimate - More
- May 08, 2006 | Item | E-mail

Tao Minerals Trenching Results Indicate Extensive High Grade Gold Concentrations - More
- May 08, 2006 | Item | E-mail

Teck Cominco Limited announces c$78.50 per share offer for Inco Limited - "Teck Cominco Limited announced today that it will make a C$17.8 billion cash and share offer to acquire all of the outstanding shares of Inco Limited, conditional on Inco not completing its announced takeover bid for Falconbridge Ltd. Inco shareholders will receive C$78.50 per common share in cash or shares: C$28.00 in cash and 0.6293 of a Teck Class B subordinate voting share at full pro ration. The business combination, with a pro forma enterprise value of approximately C$35 billion, will create a broadly diversified Canadian-based mining company with market-leading positions in zinc, nickel and metallurgical coal and a significant presence in copper, gold and other commodities." More
- May 08, 2006 | Item | E-mail

/R E P E A T/ - Dynacor: proven and probable reserves of 223,570 tonnes at an average grade of 2.04% WO(3) for the Pasto Bueno mine - More
- May 08, 2006 | Item | E-mail

Breakwater Resources enters into agreement with Virginia Mines on the Coulon property - More
- May 08, 2006 | Item | E-mail

Apogee Extends High Grade Gold-Silver Mineralization at Buena Vista - More
- May 08, 2006 | Item | E-mail

Virginia: Signing of a CA$6.5 Million Agreement With Breakwater Resources - More
- May 08, 2006 | Item | E-mail

El Capitan Appoints Gordon Ellis to the Board - More
- May 08, 2006 | Item | E-mail

El Capitan Reports Status of Assay Verification and Extraction Method - More
- May 08, 2006 | Item | E-mail

Corex Gold Signs Joint-Venture with Viceroy Exploration Ltd. - More
- May 08, 2006 | Item | E-mail

Coeur Reports Record Results for First Quarter of 2006 - "Coeur d'Alene Mines Corporation today reported all-time record quarterly net income of $14.3 million, or $0.05 per diluted share, for the first quarter of 2006, compared to a net loss of $1.1 million, or $0.00 per diluted share, for the year-ago period." More
- May 08, 2006 | Item | E-mail

Richmont Mines Inc Announces Bought Deal of Common Shares - "Richmont Mines Inc. has today entered into an agreement with a syndicate led by Desjardins Securities Inc., and including Blackmont Capital Inc. and BMO Nesbitt Burns Inc., under which the Underwriters have agreed to buy 3,100,000 Common Shares from Richmont Mines at a price of $4.90 per Share representing aggregate gross proceeds of approximately $15.2 million subject to the fulfillment of certain conditions. Closing is expected to be on or before May 30, 2006." More
- May 08, 2006 | Item | E-mail

Queenstake Expands Known Gold Mineralization at Jerritt Canyon Mines - "Underground drilling by Queenstake Resources Ltd. intercepted high-grade gold mineralization expanding the known deposits at the SSX Mine and Smith Mine at the Jerritt Canyon operations in Northeastern Nevada. At the SSX Mine, a 130- foot interval grading 0.55 ounce of gold per ton (opt) or 39.6 meters grading 19 grams per tonne (gpt) was identified in drilling at Zone 4. Results from the Smith Mine included 55 feet grading 0.67 opt (16.8 meters of 23 gpt) along the northwest extensions at the R4 dike trend and 35 feet grading 0.73 opt (10.7 meters of 25 gpt) at the Mahala deposit." More
- May 08, 2006 | Item | E-mail

Randgold Resources Announces Report For The Quarter Ended 31 March 2006 - "Total attributable production for the quarter was 118 989 ounces at total cash costs of US$281/oz. This compares to 66 908 ounces at total cash costs of US$211/oz in the March 2005 quarter. The increase in production and cash costs is due to the additional ounces from Loulo's first full quarter of production. These results are in accordance with SEC's EITF 04-06 on deferred stripping." More
- May 08, 2006 | Item | E-mail

Randgold Resources Announces Loulo Region: One Of Africa's Premier Emerging Goldfields - "This belt has two things in abundance, proven production and untested potential. Our belief in the potential of the extensive Senegal-Mali regional structure, which incorporates the Loulo mining lease, gave us the confidence to take risk and drill deep at Yalea which so far has continued to deliver more resources and reserves. While we've been drilling deeper we have also been hunting for more targets along the same as well as secondary and tertiary structures along strike. The strike of the Yalea orebody today, is approximately two kilometres and so far the mineralisation has been confirmed to extend to 885 metres below surface." More
- May 08, 2006 | Item | E-mail

Randgold Resources Sustains Fast Pace In Another High-Performance Quarter - "London and Nasdaq listed gold miner Randgold Resources posted a solid net profit of US$13 million for the March quarter on the back of an increase in profit from mining to US$33 million, resulting from its new Loulo gold mine and a higher gold price." More
- May 08, 2006 | Item | E-mail

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