Gold remained in the low $650s in Asia and London before it moved back up near $660 in early New York trade, but it then fell off markedly to near $640 by afternoon trade which saw it rebound a bit, but still end significantly lower on the day.  Silver remained near $13 in Asia and London and found slight gains in early New York trade, but it also fell off markedly in late morning New York trade and ended near its lows with notable losses.

Gold and silver equities rose about 3% in early trade before falling back near unchanged, but they then steadily climbed into the close and ended around 2% higher.

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

“We note this morning the arrival of another insider as Treasury Secretary - John Snow is outta here and Henry Paulson ("Hank" as Bush calls him) from Goldman-Sachs is in. The great comedy of this is that virtually everyone on the planet knows that the Snow "strong dollar" approach has fallen apart. So, the obvious choice is a good trader (Paulson) who will be able to string out the decline of the dollar as long as humanly possible.

The "myth" being promoted is that when everyone runs to the exits, unloading dollars, that what is sure to turn into a crowded theater stampede is being "managed" in the hopes that if "orderly" markets prevail, then everyday folks will just sit back and watch inflation eat up their life savings and put them (thanks to those new bankruptcy laws) in the poor house.”

From The Hightower Report, Futures Analysis and Forecasting:

“After the disappointment in the action Tuesday, the gold market was presented with even more negative price action on Wednesday. In addition to significantly lower oil price action, the gold bulls were pressured by a stronger Dollar and the offer from the US to join the EU in negotiations with Iran. However, the US offer to join the talks was predicated on Iran agreeing to stop enrichment and that is something they have steadfastly refused in the past. On a positive note, the US and global economic readings were impressively positive and the US equity market was moderately higher and that could have served to dampened the speculative liquidation effort in the metals markets. However, some players saw the big gains in paper assets and fretted that physical commodities were looking less attractive. In short, the trade was spinning the fundamental and technical developments into negatives!

With both platinum and copper down aggressively and platinum at times considered the classic physical/investment combination in the metals complex, it is not surprising to suggest that a significant amount of bullish psychology was lost during the action on Wednesday. In fact, the silver market doesn't seem to be getting much support from the fact that exchange stocks continue to decline and that the overall macro economic view could have been improved during the session Wednesday. In other words, the bull fundamentals are few in number but in most cases are being discounted. Some traders are suggesting that book squaring for the end of the month contributed to the washout but for the sake of the bull's they had better hope that the liquidating longs decided to come back to the long side in the new month!”

From the Charleston Voice email list:

Subject:  CNBC's "Economist" Liesman is Far-Out Man

“Bite this Steven-

Your explanation of Fed interest rate policy was sheer lunacy, my well-intentioned entertainer friend. Can you locate anywhere on the below chart where the Fed has been able to reduce the Fed Funds Rate while below the relative gold price? Furthermore, show me where the Fed rate was reduced while still below the CPI!

Your Keynesian disease can only be cured by expungement by living in hard times. You're right, you're better off right where you are rather than trying to make it in the real world.

But, then, much to your own credit you wouldn't have been hired by CNBC if your views were any different. Plus, the 'wronger' you are, the richer you'll make the cub reporter economists like us.

There oughta be a law against gold, right? 

Bill

Charleston, SC”

Oil fell on easing geopolitical concerns over Iran and on the increased likelihood that OPEC will not make a production cut, but it did end well off of its lows.

The U.S. dollar index rebounded from yesterday’s notable losses and treasuries fell as economic data came in better than expected and FOMC minutes increased the chances for at least one more interest rate hike.

The Dow, Nasdaq, and S&P rebounded from yesterday’s sharp losses as lower oil offset any interest rate fears.

Among the big names making news in the market today were Citigroup, Goldman Sachs, Lee and Quadrangle and West corp., Freddie Mac, Exxon, Novartis, ADC Telecommunications and Andrew Corp., NRG and Mirant, Costco, and Tiffany.

GATA Posts:

Ted Butler: Facts and speculation

Gold & Silver Stock News Update from GoldReview.com:

U.S. Energy’s (USEG) private placement and updates and Endeavour Silver’s (EDR.TO) drill results were among the big stories in the gold and silver mining industry making headlines today.

LOSERS

All of today's gold and silver stock news:

Western Goldfields, Inc. Announces Annual Meeting of Stockholders - More
- May 31, 2006 | Item | E-mail

Goldex Announces High Grade Surface Results and Sites New Drill Targets - More
- May 31, 2006 | Item | E-mail

Pan American Gold Corporation Begins Work on the Huicicila Property - More
- May 31, 2006 | Item | E-mail

Keegan Completes Due Diligence, Work to Commence on Esaase Gold Property, Ghana - More
- May 31, 2006 | Item | E-mail

Endeavour Drilling Continues to Intersect Multiple High Grade Veins in Deep Santa Cruz Zone, Guanacevi Mines Project, Durango, Mexico - "Endeavour Silver Corp. reports that the underground drilling program in the Deep Santa Cruz Zone at the Guanacevi Mines Project in Durango, Mexico continues to intersect multiple high grade veins. Recent drilling highlights include 1277 gpt silver and 6.24 gpt gold over 0.90 m (46.3 oz/ton Ag equivalents over 3.0 ft) in hole DSC1-12 and 486 gpt silver and 0.67 gpt gold over 7.75 m (15.1 oz/ton Ag equivalents over 25.4 ft) in hole DSC2-12, as follows:" More
- May 31, 2006 | Item | E-mail

Pan American Gold Corporation Appoints New Director - More
- May 31, 2006 | Item | E-mail

Tiomin Plans 14,000 Meter Drilling Program at its Pukaqaqa Copper-Gold Project - More
- May 31, 2006 | Item | E-mail

GBS Gold International Inc.: CEO Interview with the Wall Street Reporter - More
- May 31, 2006 | Item | E-mail

Drilling Commences at the Makuru Gold Property, Namibia - More
- May 31, 2006 | Item | E-mail

Bear Creek announces re-election of directors - More
- May 31, 2006 | Item | E-mail

Significant Copper Cobalt Zones Extended at McAra Lake - More
- May 31, 2006 | Item | E-mail

Gold Hawk Resources Inc. Announces the Appointment of Vice President of Latin America - More
- May 31, 2006 | Item | E-mail

Typhoon Intersects Gold at Grades Exceeding 1 Oz/t Gold Over 18 Feet - More
- May 31, 2006 | Item | E-mail

Great Western Minerals Group Ltd.: Mark L. Ellis Nominated Director- Appointed Vice President of Product Development - More
- May 31, 2006 | Item | E-mail

Continuum Commences Underground Diamond Drilling at the Natividad Gold/Silver Mine, Oaxaca, Mexico - More
- May 31, 2006 | Item | E-mail

Young-Shannon Extends High Grade Gold Zone On McMillan Gold Mine Property With 21 Metre Gold Intersection - More
- May 31, 2006 | Item | E-mail

Astral Commences Drilling on Gold Springs Property, Nevada - More
- May 31, 2006 | Item | E-mail

Dia Bras Holds Annual General Meeting - More
- May 31, 2006 | Item | E-mail

Dia Bras Acquires an Entire Silver District in Chihuahua, Mexico: Properties Cover more than 7,500 Hectares Including Twelve Former Mines - More
- May 31, 2006 | Item | E-mail

Pershimco Resources Signs Financing and Co-Development Agreement for its San Miguel Silver Property in Mexico - More
- May 31, 2006 | Item | E-mail

Unico, Inc. Announces Filing of Form 12b-25 Notice for 2006 Annual Report - More
- May 31, 2006 | Item | E-mail

Aberdene Mines Limited Announces Board Restructuring and Change of Head Office - More
- May 31, 2006 | Item | E-mail

Excellon Resources Inc.: Guadalupe South Manto Assays Confirm High Grade Mineralization - More
- May 31, 2006 | Item | E-mail

High River Gold Reports on its First Exploration Programme at Novophirsovskoye, Russia - More
- May 31, 2006 | Item | E-mail

SearchGold Obtains Mergent Listing for United States - More
- May 31, 2006 | Item | E-mail

Silk Road Resources Ltd. announces financial results for First quarter period ended March 31, 2006 - More
- May 31, 2006 | Item | E-mail

Sparton Reports First Drill Results For Bajoawa Area Luxi Gold Project, Yunnan China and Sierra Rosario Mexico Drilling Update - More
- May 31, 2006 | Item | E-mail

Pan American Gold Corporation Appoints New Director - More
- May 31, 2006 | Item | E-mail

Battle Mountain Royalty Update -- Relief Canyon Environmental Work Nears Completion - More
- May 31, 2006 | Item | E-mail

Redcorp Ventures Ltd.: Tulsequah Project Surface Exploration Drilling Commences - More
- May 31, 2006 | Item | E-mail

Stealth Minerals Completes Due Diligence on Incamayo - More
- May 31, 2006 | Item | E-mail

2006 Field Work Begins at the Ruby, Montana Property - More
- May 31, 2006 | Item | E-mail

Houston Lake Mining Receives $131,893 From First Gold Bulk Sample - More
- May 31, 2006 | Item | E-mail

Aquiline Drilling Confirms Potential of New Castro Sur Discovery - More
- May 31, 2006 | Item | E-mail

East Asia Minerals to acquire four advanced gold and copper-gold projects - More
- May 31, 2006 | Item | E-mail

Altius Minerals Corporation: New High Grade Drill Intercepts from the Rambler Project - More
- May 31, 2006 | Item | E-mail

Tara Gold Partners La Currita for Mill Expansion - More
- May 31, 2006 | Item | E-mail

RETRANSMISSION-Guyana Goldfields Inc.: New Gold Zone at Aurora - More
- May 31, 2006 | Item | E-mail

Kinbauri Gold Corp. Completes Corcoesto Drill Program: Open-Pit Re-Evaluation Inspires New Drill Program - More
- May 31, 2006 | Item | E-mail

Kalimantan Gold Corporation Limited - Jelai Mewet data ground truthed - More
- May 31, 2006 | Item | E-mail

Wits Basin Reports on Due Diligence Progress Related to the Vianey Mexico Silver Mine - More
- May 31, 2006 | Item | E-mail

Atlas Mining Company Schedules Further Sampling on Handcamp Gold Property - More
- May 31, 2006 | Item | E-mail

Cloudbreak Warrant Exercise - More
- May 31, 2006 | Item | E-mail

De Beira Announces 3:2 Forward Stock Split - More
- May 31, 2006 | Item | E-mail

Vangold Releases First Profitable Q1 Results - More
- May 31, 2006 | Item | E-mail

Wescan Goldfields Inc. announces first quarter results - More
- May 31, 2006 | Item | E-mail

Golden China Resources announces third quarter results - More
- May 31, 2006 | Item | E-mail

Luna Gold Corp. - First quarter financial results - More
- May 31, 2006 | Item | E-mail

U.S. Energy Corp. Announces Sutter Gold's $3 Million (Cdn) Private Placement - "U.S. Energy Corp. announced today that Sutter Gold Mining Inc. announced successfully closing a $3 million (Cdn) private placement to fund a combined underground and surface diamond drill program and feasibility study on its Sutter Gold Mine which is an advanced stage gold project in the historic Mother Lode located about 50 miles southeast of Sacramento, CA. The 18,000 foot drill program is scheduled to start this June." More
- May 31, 2006 | Item | E-mail

U.S. Energy Corp. Provides Update on Uranium, Molybdenum, Gold and Natural Gas Holdings - "U.S. Energy Corp. is pleased to provide the following corporate update and announces that its management will host an investor conference call today, Wednesday, May 31, 2006 at 4:00 p.m. Eastern Time, to discuss recent corporate developments." More
- May 31, 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.