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Gold fell to under $640 in Asia, but it then rebounded throughout trade in London and New York and ended near its highs with a slight gain.  It recovered over $20 from its lows in Asia.  Silver fell to under $12 in Asia, but it also rebounded throughout trade in London and New York and ended near its highs with a slight gain.  It ended over 50 cents higher from its lows.

Euro gold fell near €510, platinum lost $23 to $1,275, palladium lost $8 to $338, and copper recovered from early losses too gain about 3 cents to the low $3.40s.

Gold and silver equities fell about 5% at the open and remained near their lows throughout morning trade before they rebounded in afternoon trade and ended with only about 1% losses.

Some important gold/silver stories recently crossing the wire:

American Stock Exchange Launches New Gold Miners ETF by Van Eck Global 

Saudi firm buys gold from African central bank 

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

“There was considerable talk this week about bailing out the LME base metals shorts. There was none about bailing out the gold shorts. My guess is that is what we just saw, courtesy of the money powers around the world. The funny part is those "market manipulators" (to use a popular Planet Wall Street term these days) didn't care how blatant and obvious they were. They sent out their designated hit man, Goldman Sachs, to get the job done and GS did. Any market person who could not see that is somewhat brain dead.

What is done is done. This too shall pass. And that is the good news. The Gold Cartel still has to cover thousands of tonnes of gold. There is no way this can happen without gold rising hundreds of dollars from here. That process should commence in earnest AGAIN next week.”

From The Hightower Report, Futures Analysis and Forecasting:

“The gold market managed to progress through the session without suffering a significant setback. Into the US opening the stars and moon seemed to be lined up for a significant washout. In fact, the Dollar was up early, stocks were down aggressively, copper was under significant duress and oil prices were weaker. However, the Dollar didn't stay down and the early bears in gold and silver were frustrated with the eventual market outcome. With the geopolitical headline flow from Iran somewhat more supportive than was seen last week. News of a new Gold-Miner ETF might have inspired some short covering from the early lows, but the clear and aggressive reversal in the Dollar was probably the most significant development in the bull's arsenal on Monday. The Press did suggest that London gold traders were seen as bargain hunting buyers around the lows Monday and that might have inspired as much short covering as anything during the session Monday.

The silver market also managed an impressive short covering bounce off the psychologically important $12.00. However, the silver market probably remained somewhat off balance in the wake of the big downside washouts in the platinum and copper markets, as those markets have typically represented physical demand expectations for the metals in general. While the reversal in the Dollar was probably supportive for silver, we doubt that the direction of the Dollar is as important to silver as it is to gold. While the trade did note some tightening of stock levels, there still hasn't been a pattern of declines in exchange stocks to suggest that the steep May break in prices is prompting bargain hunting buying in the physical market.”

Oil found losses in early trade on concerns over possible waning demand, but it then rallied to find decent gains by the close as NOAA came out with a forecast for a busy hurricane season and Venezuela called for an OPEC cut at their meeting next week.

The U.S. dollar index found gains early on, but it then fell off throughout U.S. trade and ended with notable losses as traders speculated on world interest rates and where they are headed.  Some comments from ECB President Trichet about remaining vigilant on inflation reinforced the outlook for an ECB rate hike in June.

Treasuries gained on a “flight to quality” rally that was spurred by global uncertainty which caused selling in other market areas.

The Dow, Nasdaq, and S&P traded mostly lower on uncertainty over inflation and interest rates.  The Nasdaq was especially weak with a loss of nearly 1% on the day.

Among the big names making news in the market today were Cedar Fair and Paramount, Wal-Mart, BASF and Engelhard, Campbell, NYSE and Euronext, and Lowe’s.

GATA Posts:

Russian exchange starts trading oil and gold in rubles next month

China should put more foreign exchange into gold, official paper says

Peter Brimelow: Gold bugs take note of retreat but not panicking yet

James Turk: Will $715 be a difficult hurdle for gold?

India's first gold EFT has a 7% service charge

It's not an energy crisis but a money crisis

Treasury secretary backs strong dollar but wishes China would weaken it

Corrected link to John Lee's Gold Insider letter about Peru

Peter Grandich: What a difference a week makes!

Gold & Silver Stock News Update from GoldReview.com:

With Canadian markets closed for Victoria Day, there was not much gold and silver stock news today.  Anglo American’s (AAUK) plan to sell its 41.8% stake AngloGold Ashanti (AU) within the next three years and some Junior Mining & Exploration Stock news were among the big stories in the gold and silver mining industry making headlines today.

WINNERS

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All of today's gold and silver stock news:

AGA Resources, Inc. Appoints New Director - More
- May 22, 2006 | Item | E-mail

Paramount Gold Information Now Available Through Standard & Poor's Market Access Program - More
- May 22, 2006 | Item | E-mail

Anglo to sell AngloGold stake within three years - "Global diversified miner Anglo American Plc will dispose of its remaining 41.8 percent stake in South African AngloGold Ashanti Ltd, the world's third biggest gold producer, within three years. A spokesman said on Monday that Anglo's finance director, Rene Medori, had told a recent conference in Miami he expected Anglo to sell its AngloGold shares within two or three years. She also said Anglo has no current plans to trim its stake." More
- May 22, 2006 | Item | E-mail

COMIBOL Approves Franklin's First Cerro Rico de Potosi Processing Plant - More
- May 22, 2006 | Item | E-mail

De Beira Arranges US$1,500,000 Financing at US$3.80 Per Share - More
- May 22, 2006 | Item | E-mail

Silverado doubles Nolan Gold Project holdings - More
- May 22, 2006 | Item | E-mail

Bullion River Gold Corp. Exercises Its Purchase Option On The Corcoran Canyon Project In Nevada And Updates Its Activities At Its French Gulch Mine - More
- May 22, 2006 | Item | E-mail

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- 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

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