Gold Seeker Closing Report: Gold and Silver Fall Over 2%

	Close	Gain/Loss
Gold	$880.90	-$19.70
Silver	$15.78	-$0.42
XAU	181.01	-4.98%
HUI	441.33	-4.53%
GDM	1354.37	-4.31%
JSE Gold	2717.83	-52.51
USD	76.29	+0.63
Euro	146.75	-1.50
Yen	93.20	-0.15
Oil	$90.84	-$1.06
10-Year	3.712%	+0.011
T-Bond	119.1875	-0.34375
Dow	12466.16	-0.28%
Nasdaq	2394.59	-0.95%
S&P	1373.20	-0.56%

Gold fell over $20 to $878.08 by early trade in London and then rallied back near unchanged to as high as $897.20 by about 10AM EST in New York before it fell to a new low of $876.70 by late morning, but it then rallied back higher into the close and ended over $4 off that low with a loss of 2.19%. Silver fell to $15.67 and rose to $16.14 before it fell back to $15.727, but it also bounced higher into the close and ended off its low with a loss of 2.59%.

Euro gold fell to about €601, platinum lost $17 to $1559, palladium lost $7 to $371, and copper fell nearly 7 cents to about $3.17.

Gold and silver equities fell over 5% by late morning before they rebounded to find only about 3% losses by early afternoon, but they then fell back off into the close and ended with over 4% losses.

Report	For	Reading	Expected	Previous
CPI	Dec	0.3%	0.2%	0.8%
Core CPI	Dec	0.2%	0.2%	0.3%
Net Foreign Purchases	Nov	$90.9B	-	$114.0B
Industrial Production	Dec	0.0%	-0.2%	0.3%
Capacity Utilization	Dec	8.14%	81.2%	81.6%

The Fed's Beige Book noted an economy that expanded modestly, but at a slower pace than the slow pace noted last time. Tighter credit standards, moderate wage increases, a weaker dollar, and weak residential AND commercial real estate were among the other highlights that in the end did not change the outlook for a 50 basis point rate cut at the fed’s next meeting as inflation did not appear to be an issue while slow economic growth was in the mid-November to mid-December time frame referenced.

Tomorrow at 8:30AM EST brings Housing Starts for December expected at 1,150,000, Building Permits expected at 1,140,000, and Initial Jobless Claims for 1/12 expected at 335,000. At noon is the Philadelphia fed survey for January expected at -1.5. Bernanke also testifies before the House Budget Committee tomorrow.

Oil fell all the way to under $90 after inventory data came in even better than expected, but it did end well of its lows with a loss of only about a dollar on speculation that the recent correction from $100 a couple of weeks ago may be overdone. Crude inventories built 4.3 million barrels, gasoline inventories built 2.2 million barrels, and distillates built 1.1 million barrels, but refinery utilization surprisingly fell 4.2% to 87.1% to add at least one bullish note to the report.

The U.S. dollar index did not react much to CPI or Net Foreign Purchases data, but it then took off to find decent gains after an European Central Bank governor said that the ECB may revise its growth forecast lower which in turn shifted expectations for the ECB from holding rates steady to perhaps joining the fed in cutting rates.

Treasuries rose in early trade as the major indices fell markedly again, but bonds then fell back off and ended lower as economic data was not that bad overall and the major indices came back to end only modestly lower after traders debated disappointing results from Intel and the fed’s next action.

Among the big names making news in the market today were Boeing, Oracle and BEA, JPMorgan, Ambac, Wells Fargo, and Intel.

“Today's weakness in gold and strength in the dollar are products of expectations that the Fed would drop rates by Emergency Action today. Talking heads on CNBC fed that rumor. When it did not occur as predicted today the suffering bearish gold interest took that non-event as a tool to hammer gold down and run weak shorts out of the dollar.

Absolutely nothing has changed. There isn't a snowball's chance in hell that housing will improve, the derivative meltdown will stop, the dollar will do anything but short cover or the Fed will fail to drop rates.

Gold will again in the near future cross $887.50 and $900 on its way to $1050 and then $1650…”- Jim Sinclair, JSMineset.com

“February Gold finished down 20.6 at 882, 16.2 off the high and 7 up from the low.

March Silver closed down 0.405 at 15.895. This was 0.085 up from the low and 0.355 off the high.

The magnitude of the rise in the US Dollar seemed to be the main theme for the gold bears on Wednesday. However, with initial steep losses in the stock market, sharp gains in the US Dollar and another noted key downside technical failure in the energy complex it is also possible that broad based speculative technical liquidation added to the prevailing weakness in gold prices. With the liquidation pressure spreading even into the grain markets and soft commodity markets, one gets the sense that the deterioration in the US economic outlook is spreading throughout the marketplace.

Around the lows on Wednesday, the March silver contact reached back down to the vicinity of a couple prior closing values of $15.81 and $15.83. Like the gold market, the silver market also came under what seemed to be moderate technical liquidation pressure. Also like gold, a strong Dollar and weak US economics seemed to inspire spec liquidation. At least in the near term, the silver market looks content to take its lead from the US equity market and the US Dollar.”- The Hightower Report, Futures Analysis and Forecasting

Note: Change in Total Tonnes from yesterday’s data: 0.92 tonnes were added to the trust.

Note: Change in Total Tonnes from yesterday’s data: 138.78 tonnes were added to the trust.

ITH’s (THM) stock options, Almaden’s (AAU) exploration updates, Kinross Gold’s (KGC) project updates, NovaGold’s (NG) new management team for Galore Creek, Ivanhoe’s (IVN) and Entree’s (EGI) drill results, Excellon’s (EXN.V) corporate update, South American Silver’s (SAC.TO) drill results, Penoles’ (PENOLES.MX) mine strike, Continuum’s (CNU.V) and Fortuna’s (FVI.V) drill results, and Avino’s (ASM.V) drilling were among the big stories in the gold and silver mining industry making headlines today.

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

Pele Mountain Announces Option Grant - More
- January 16, 2008 | Item | E-mail

Excellon Corporate Update - "The Company has learned that workers at Penoles Naica Mine went on strike on Tuesday in a pay dispute. The Company understands that Penoles normally has good relations with its workers and unions, and that strikes at its mines and smelters are not that common. Penoles has said that it will continue to try and reach a pay agreement with the union. The Company understands that, for the duration of the strike, the Naica mill, to which the Company currently sells the production from its Platosa test mine, will be unable to accept any further shipments from Platosa. The Company is of the view that a strike of short duration will not materially affect the Company's operations, but that a prolonged strike could have a material adverse effect on its cash flow from operations. If it appears that the strike will be prolonged, the Company will take appropriate steps to reduce its operations and thereby conserve its cash resources." More
- January 16, 2008 | Item | E-mail

UNOR Announces Cameco Financing - More
- January 16, 2008 | Item | E-mail

Chile sees shiny gold mining outlook - "Chile, best known in mining circles for its bountiful copper supplies, expects to become a top 10 gold producer early in the next decade as giant new mines start up, a state mining think-tank said on Wednesday." More
- January 16, 2008 | Item | E-mail

ITH Grants Incentive Stock Options - "International Tower Hill Mines Ltd. ("ITH" or the "Company") - (CDNX:ITH.V - News)(AMEX:THM - News)(Frankfurt:IW9.F - News) is pleased to announce that, pursuant to its 2006 Incentive Stock Option Plan, it has granted incentive stock options to certain directors, officers and employees allowing them to purchase up to an aggregate of 190,000 common shares in the capital stock of the Company. The options are exercisable at a price of CAD 1.52 for a period of two years ending January 16, 2010." More
- January 16, 2008 | Item | E-mail

Mantis Mineral Corp. identifies significant Ni-Cu-Zn-Pb soil geochemical anomalies on Oke, Ontario Project - More
- January 16, 2008 | Item | E-mail

South American Silver Corp. Reports First Gold Intersection at Wara Wara and Silver Enrichment at Limosna Ridge, Malku Khota, Bolivia - "South American Silver Corp. ("SASC" or the "Company") (Toronto:SAC.TO - News) is pleased to announce the results of ten diamond drill holes from its Malku Khota project located in west central Bolivia: seven from the Limosna anomaly (holes LMD011-017) and three from the Wara Wara anomaly (holes WWD08-010)." More
- January 16, 2008 | Item | E-mail

Almaden Updates U.S. Exploration Programs - "In 2007 Almaden Minerals Ltd. (Toronto:AMM.TO - News)(AMEX:AAU - News) ("Almaden") initiated a regional exploration program in Nevada. This work resulted in the acquisition of six new projects including three where high sulphidation epithermal gold-silver mineralization and alteration occur (see Almaden news release of August 30, 2007)." More
- January 16, 2008 | Item | E-mail

Sherwood Copper Appoints Kevin Weston as Chief Operating Officer - More
- January 16, 2008 | Item | E-mail

Coro Mining Corp.: San Jorge New Resource Estimate and Project Update - More
- January 16, 2008 | Item | E-mail

Century Mining Responds To Sulliden Press Release - More
- January 16, 2008 | Item | E-mail

Mirasol Acquires Additional Mineral Concessions in Southern Argentina - More
- January 16, 2008 | Item | E-mail

Lake Shore Gold Announces the Appointment of Anthony Makuch as President and Chief Executive Officer - More
- January 16, 2008 | Item | E-mail

FNX Announces Management Changes - More
- January 16, 2008 | Item | E-mail

Scorpio's Underground Drilling of Santa Teresa Deposit Reports 32.8 metres grading 324 g/t Ag, 5.32% Zn, 0.30% Cu, 1.45% Pb and 10.1 metres grading 0.085 g/t Au - More
- January 16, 2008 | Item | E-mail

Lundin Mining Appoints Phil Wright as President and CEO - More
- January 16, 2008 | Item | E-mail

Raytec Metals Corp. Announces: Work Commences on Athabasca Properties - More
- January 16, 2008 | Item | E-mail

Geocom Announces Private Placement With Alliance International Investors - More
- January 16, 2008 | Item | E-mail

Queensland Minerals Makes Gold-Copper discovery at the Anastasia Project North Queensland Australia - More
- January 16, 2008 | Item | E-mail

Keegan Resources Adds Second Drill to Rapidly Advance Esaase Gold Project - More
- January 16, 2008 | Item | E-mail

First Metals Receives Initial Month's Revenues From Fabie Bay - More
- January 16, 2008 | Item | E-mail

Pacific Comox Resources Ltd: 1.2% Copper and 0.26% Molybdenum or 5.3 lbs/ton Molybdenum Reported in Hole 92A Over 10 Meter Interval - More
- January 16, 2008 | Item | E-mail

Castle Gold Commences Drilling at La Fortuna Gold Project - More
- January 16, 2008 | Item | E-mail

Mexico's Penoles affected by eight-hour strike - "Penoles, one of the world's top silver producers, said on Wednesday some of its mining operations had been affected by an eight-hour nationwide strike by Mexican mine union workers." More
- January 16, 2008 | Item | E-mail

Bolivar Mining to Explore Potentially Major Rare Earth Elements Deposits - More
- January 16, 2008 | Item | E-mail

Full Metal Advances Regional Targets on 40 Mile Property - More
- January 16, 2008 | Item | E-mail

Luna Gold hires Chief Financial Officer - More
- January 16, 2008 | Item | E-mail

Silver Falcon Mining, Inc. (SFMI): Mines Reviewed in Preparation for '2008' Mining Decision - More
- January 16, 2008 | Item | E-mail

HE-5 Resources, Corp. Announces Plans to Construct Leaching Plant Near Overman Property in Nevada - More
- January 16, 2008 | Item | E-mail

Anglo Canadian Uranium Corp.: Colorado Drill Program Shows 6 Feet of 0.193 % eU3O8 - More
- January 16, 2008 | Item | E-mail

Kinross sees projects on pace, but higher costs - "Kinross Gold (K.TO: Quote, Profile, Research) said on Wednesday that key production increases in Russia and Brazil are on pace to start midway through the year, but warned of increasing cost pressure on earnings and individual projects." More
- January 16, 2008 | Item | E-mail

SearchGold Defines 6 km Lekodo-Bakoudou Gold Trend in Gabon - More
- January 16, 2008 | Item | E-mail

Andover Provides Compilation of 2007 Results from SUN Property, Alaska - More
- January 16, 2008 | Item | E-mail

Northland Drills Extension of Stora Sahavaara Magnetite Body - More
- January 16, 2008 | Item | E-mail

Canadian Royalties Inc./Nunavik Nickel Project Allammaq Update: Drilling Expands Deposit Further to the South - More
- January 16, 2008 | Item | E-mail

Acrex and Moneta commence joint venture winter drilling at Michaud Gold Property, Ontario - More
- January 16, 2008 | Item | E-mail

Argentex deploys second drill at Pinguino to accelerate its largest-ever exploration program - More
- January 16, 2008 | Item | E-mail

Second high grade mineralised vein system identified at Mae Lama tungsten property - Assay values of over 7% WO(3) in drillhole - More
- January 16, 2008 | Item | E-mail

Farallon Appoints New Director - More
- January 16, 2008 | Item | E-mail

Alturas Moves to Tier 1 - More
- January 16, 2008 | Item | E-mail

International PBX Drilling Update, Tierra De Oro Project, Chile - More
- January 16, 2008 | Item | E-mail

Constellation Copper management cease-trade order revoked - More
- January 16, 2008 | Item | E-mail

Gold production tops 25,000 ounces at Dynacor Gold's Plant in Peru - More
- January 16, 2008 | Item | E-mail

First Nickel Reports 289% Increase in Indicated Resources at the Lockerby Mine - More
- January 16, 2008 | Item | E-mail

Pelangio Advised of Drill Results From Detour Gold's Drilling Program at Detour Lake, Ontario (DG-07-157 Intersects 2.28 g/t Over 75.5 m in Calcite Zone) - More
- January 16, 2008 | Item | E-mail

Franconia Minerals Intersects "Longest & Strongest" Mineralization to Date at Birch Lake Copper-Nickel-PGM Project - More
- January 16, 2008 | Item | E-mail

Detour Gold Reports First Results of 2007 Phase II Drilling at Its Detour Lake Property in Northern Ontario, Canada - More
- January 16, 2008 | Item | E-mail

Yukon-Nevada Gold Corp. Appoints New Vice President Mining and a Manager of New Operations - More
- January 16, 2008 | Item | E-mail

Rockcliff Commences Airborne Survey on Its Snow Lake VMS Project, Manitoba - More
- January 16, 2008 | Item | E-mail

International Minerals Announces Major Production Expansion at Pallancata Mine, Peru and First Sales of Silver-Gold Concentrate - More
- January 16, 2008 | Item | E-mail

Breakwater and Virginia Provide Further Drill Results on Coulon JV Project - More
- January 16, 2008 | Item | E-mail

Pacific North West Capital and Stillwater Mining Finalize Option Agreement on the Goodnews Bay Platinum Project - More
- January 16, 2008 | Item | E-mail

Sunridge Gold Files Emba Derho Technical Report - More
- January 16, 2008 | Item | E-mail

Virginia Mines Inc./Coulon JV Project: Lens 08 Blossoms at Depth With Values of 2.87% Zn, 1.22% Cu, 27.61 g/t Ag / 20.15m and 2.25% Zn, 1.92% Cu, 41.13 g/t Ag - More
- January 16, 2008 | Item | E-mail

Tombstone Exploration Receives Encouraging Silver Results From Assay Samples - More
- January 16, 2008 | Item | E-mail

Drilling Continues to Expand Langmuir Nickel Mineralization to the East and at Depth - More
- January 16, 2008 | Item | E-mail

East West Resource Corporation: Gazooma Copper Zone Intersected at Depth-Marshall Lake VMS Property Thunder Bay, Ontario - More
- January 16, 2008 | Item | E-mail

Acadian provides 2007 corporate review and update - Acadian to investigate merits of spin-out of gold properties - More
- January 16, 2008 | Item | E-mail

Continuum announces drill results of 7.95 meters with 9.37 g/t Au and 487 g/t Ag at San Jose, Mexico - "Continuum Resources Ltd (TSXV:CNU) is pleased to announce additional drill results from Fortuna Silver Mines Inc.'s ("Fortuna") 2007 drill program at the San Jose silver-gold deposit located in Oaxaca, Mexico. San Jose is being explored and developed under a joint venture between Continuum (24%) and Fortuna (76%)." More
- January 16, 2008 | Item | E-mail

Great Bear Uranium Completes Airborne Geophysical Survey at Wollaston South Project, Saskatchewan - More
- January 16, 2008 | Item | E-mail

NovaGold Resources Inc.: New Management Team Appointed to Lead Galore Creek Project - "NovaGold Resources Inc. (Toronto:NG.TO - News)(AMEX:NG - News) and Teck Cominco Limited (Toronto:TCK-A.TO - News)(Toronto:TCK-B.TO - News)(NYSE:TCK - News) today announced the appointment of a highly experienced senior management team to lead the Galore Creek project through the next phase of evaluation and optimization. NovaGold and Teck Cominco have appointed Mr. Pol Guzman as President & General Manager and Mr. Gary Ward as Project Director of the Galore Creek Mining Corporation." More
- January 16, 2008 | Item | E-mail

Uranerz Closes Acquisition of NAMMCO Powder River Basin Property Interests - More
- January 16, 2008 | Item | E-mail

Fortuna Drills 7.95 Meters With 9.37 g/t Au and 487 g/t Ag at San Jose, Mexico - "Fortuna Silver Mines Inc. (CDNX:FVI.V - News) is pleased to announce additional drill results from the 2007 drill program at the San Jose silver-gold deposit located in Oaxaca, Mexico. The San Jose Project is being explored and developed under a joint venture between Fortuna (76%) and Continuum Resources Ltd (24%)." More
- January 16, 2008 | Item | E-mail

Frontier Pacific & Solex Joint Venture Intersects 8 Metres of 0.373% U3O8 at Puncopata Prospect, Macusani Uranium Project, Peru - More
- January 16, 2008 | Item | E-mail

Bluerock Reports Airborne Radiometric Survey Results From the Eastern Mongolian Uranium Projects - More
- January 16, 2008 | Item | E-mail

Ivanhoe Mines Reports Additional Drilling Results Extending Heruga Copper, Gold and Molybdenum Discovery in Mongolia - "John Macken, President and CEO of Ivanhoe Mines Ltd. (TSX:IVN - News; NYSE:IVN - News; NASDAQ:IVN - News), and Charles Forster, Ivanhoe's Senior Vice President of Exploration, Mongolia, today announced additional drilling results on the Heruga copper, gold and molybdenum deposit in southern Mongolia. The Heruga Deposit is on Entree Gold's Javkhlant license, which adjoins the southern boundary of Ivanhoe Mines' Oyu Tolgoi copper and gold development project. The Javkhlant license is part of the Entree-Ivanhoe Mines joint-venture agreement area." More
- January 16, 2008 | Item | E-mail

Drilling Continues at Avino's Durango Mexico Property - "Avino Silver & Gold Mines Ltd. (TSX VENTURE:ASM - News; OTCBB:ASGMF - News; BERLIN:GV6 - News; FRANKFURT:GV6 - News) continues drilling on two zones at its large Avino property located 80kms north east of Durango, Mexico." More
- January 16, 2008 | Item | E-mail

Drilling Expands Entree Gold's Heruga Mineralization, Mongolia - "Entree Gold Inc. (Toronto:ETG.TO - News)(AMEX:EGI - News)(Frankfurt:EKA.F - News) ("Entree" or the "Company") announces additional significant results on the Heruga Deposit located within its Javhlant license, Mongolia, from partner and project operator, Ivanhoe Mines Ltd. (Toronto:IVN.TO - News)(NYSE:IVN - News)(NYSE:IVN - News) ("Ivanhoe Mines"). The Javhlant license, located to the south of the Oyu Tolgoi deposit, is included in the joint Entree-Ivanhoe Mines agreement area." More
- January 16, 2008 | Item | E-mail

NovaGold sees higher Donlin costs, reviewing Galore - "NovaGold Resources (NG.TO: Quote, Profile, Research) will soon revise upward its development cost expectations for its Donlin Creek project in Alaska, and is committed to bringing its halted Galore Creek project to production at some point, the company said on Wednesday." More
- January 16, 2008 | Item | E-mail

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

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.