Gold Seeker Closing Report: Gold and Silver End Off Their Lows With Roughly 1% Losses

	Close	Gain/Loss
Gold	$869.60	-$6.80
Silver	$16.63	-$0.18
XAU	174.81	-1.42%
HUI	407.49	-1.52%
GDM	1226.22	-1.19%
JSE Gold	2410.02	+53.22
USD	73.49	+0.49
Euro	153.95	-1.35
Yen	95.52	+0.09
Oil	$123.53	+$1.69
10-Year	3.867%	-0.026
T-Bond	115.75	+0.328125
Dow	12814.35	-1.59%
Nasdaq	2438.49	-1.80%
S&P	1392.57	-181%

Gold rose to $878.60 in Asia before it fell over 1% to as low as $863.55 by late morning in New York, but it then rallied back higher into the close and ended with a loss of just 0.78%. Silver rose to $16.89 and fell to $16.45 before it also rallied back higher into the close and ended over 1% off its low with a loss of just 1.1%.

Euro gold rose to about €565, platinum gained $3 to $1956, and copper fell nearly 5 cents to about $3.86.

Gold and silver equities fell nearly 2% at the open before they rallied back near unchanged by early afternoon, but they then fell back off along with the major indices in the last couple of hours of trade and ended with a little over 1% losses.

Report	For	Reading	Expected	Previous
Productivity	Q1	2.2%	1.5%	1.8%
Pending Home Sales	Mar	-1.0%	-1.0%	-2.8%
Consumer Credit	Mar	$15.3B	$6.0B	$6.5B

Tomorrow at 8:30AM EST brings Initial Jobless Claims for 5/03 expected at 375,000 and at 10AM is the Wholesale Inventories report for March expected at 0.5%.

Oil basically ignored a higher dollar and a bearish inventory report as concentration remains on supply threats in Nigeria, Iran, and Iraq. Possible strikes in France and Russia and declining output in Mexico were also contributing factors to oil rising to a new record high of $123.80. Crude inventories built a much bigger than expected 5.7 million barrels, gasoline inventories built 800,000 barrels, distillates fell 100,000 barrels, and refinery utilization fell 0.4% to 85.0%.

The U.S. dollar index rose after Kansas City Federal Reserve President Thomas Hoenig cited inflation as his main worry while U.S. Productivity came in higher than expected and also pushed U.S interest rates higher in early trade. European economic data also came in weaker than expected and weakened the euro ahead of tomorrow’s Bank of England and European Central Bank meetings that are expected to keep rates unchanged, but today’s weak data did bring about some speculation that the BoE may now be influenced to lower rates while the ECB may voice a less hawkish than previously expected tone.

Treasuries fell in early trade on strong Productivity data and inflation concerns, but they rose to find decent gains by the close as the Dow, Nasdaq, and S&P eventually fell markedly after Pending Home Sales fell to a new low and oil climbed to a new record high. A new measure introduced late in the day from SEC Chairman Cox requiring more transparency over liquidity and capital requirements may have also had something to do with the late day sell off.

Among the big names making news in the market today were MBIA, Cablevision, DirecTV, Total, Dr Pepper Snapple, the SEC and Bear Stearns, Sprint Nextel and Clearwire, and Legg Mason.

“Fed mouthpiece Hoenig says the Fed might increase interest rates to fight inflation.

The dropping of rates has had no impact yet, but an increase in rates would have an IMMEDIATE impact called an IMPLOSION.

"Hoenig's Illusion" is another spin device to say all credit problems are behind us so the Fed can go hawk with no downside.

Food and fuel are the main ingredients of inflation so the Fed will have to stop people from eating and decrease fuel use in Asia in order to be effective. Rates will not do that. People may starve, but for other reasons.

All markets are casinos so the euro and gold drops, but let’s see if "Hoenig's Illusion" has legs. I rather doubt it.”- Jim Sinclair, JSMineset.com

“June Gold finished down 6.5 at 871.2, 0.5 off the high and 5.7 up from the low.

May Silver closed down 0.163 at 16.617. This was equal to the low and equal to the high.

When it rains it pours for the bull camp as some Press outlets on Wednesday were reporting Indian sales into a key festival period were not overly impressive. With the market somewhat in need of a distinct positive, to offset the threat of currency related long liquidation tilt, it is possible that some traders were disappointed in the Indian demand news. As suggested in the mid day coverage the Dollar didn't seem to be dented by the news of another contraction in US Pending Home sales figures and that in turn left the gold market under indirect pressure from the bullish action in the Dollar. It should be noted that gold did see some minor support off the mid-day/early afternoon recovery in energy prices. The US Consumer credit figures jumped sharply and that didn't seem to undermine the Dollar, even though the figures did seem to undermine the US stock market. In short, developments that could sink the Dollar don't seem to be having any impact and that probably discouraged some gold players.

Like the gold market, the silver market was mostly weak throughout the trading session Wednesday. Not surprisingly a strong Dollar and initial weakness in oil prices provided the market with its negative bias. However, a recovery in oil prices and renewed strength in grain and livestock prices seemed to provide a slight short covering bounce in silver just after mid session. In the end, the Dollar strength seemed to be the dominating force with oil price action secondary. With a marked weakening of the US equity market in the face of afternoon US Consumer Credit numbers, it is possible that silver and other industrial metals markets were undermined by renewed US slowing fears.”- The Hightower Report, Futures Analysis and Forecasting

Note: No change in Total Tonnes from yesterday’s data: StreetTRACKS added 3.99 tonnes.

Paramount’s (PZG) plans to complete a resource estimate, Kinross Gold’s (KGC) opportunities seen in the credit crunch, Apollo Gold’s (AGT) first quarter results, Aurizon’s (AZK) first quarter results, Gammon Gold’s (GRS) first quarter results, Silver Eagle’s (SEG.TO) increased resources, Aquiline’s (AQI.TO) private placement, and Hecla’s (HL) halted operations in Venezuela 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.

Mesa Uranium Conducts Radon Survey at Moonshine Springs, Arizona - More
- May 07, 2008 | Item | E-mail

Silver Eagle Mines Announces Increased Resources - "Silver Eagle Mines Inc. (Toronto:SEG.TO - News) is pleased to report an increase in Indicated and Inferred Resources at its wholly-owned Miguel Auza Property in Zacatecas, Mexico. Since the filing on SEDAR of its most recent technical report in respect of the Miguel Auza Project, dated January 18, 2008 (the "Technical Report"), an intensive diamond drill campaign has resulted in an increase in the Indicated Resource from 21.3M oz Ag Eq(1) to 24.3M oz Ag Eq(1) while the Inferred Resource has increased, from 8.9M oz Ag Eq(1) to 11.7M oz Ag Eq(1)." More
- May 07, 2008 | Item | E-mail

Chapleau Confirms 85% to 94% Gold Recovery From Preliminary Metallurgical Studies at the Coringa Gold Project, Brazil - More
- May 07, 2008 | Item | E-mail

Ucore Announces Board Appointee - More
- May 07, 2008 | Item | E-mail

Royal Roads discovers new mineralization at Tulks North - More
- May 07, 2008 | Item | E-mail

Kinbauri Drills 15.8m Grading 4.4g Au/t, 22.3g Ag/t and 0.41% Cu, Including 1.0m Grading 24.0g Au/t, 135g Ag/t and 1.81% Cu - More
- May 07, 2008 | Item | E-mail

Aquiline Closes $15,000,000 Equity Private Placement - "Aquiline Resources Inc. (Toronto:AQI.TO - News) ("Aquiline" or "the Company") is pleased to announce the closing today of a non-brokered private placement financing for gross proceeds of $15,000,000. The offering was placed with a mining company whose identity remains confidential. The investor has specified use of proceeds to be dedicated to accelerating the exploration and development activities of the Navidad silver project in Chubut, Argentina." More
- May 07, 2008 | Item | E-mail

Matamec Announces Appointment of VP Exploration for Ontario - More
- May 07, 2008 | Item | E-mail

Eagle Plains Amends Terms of Strategic Alliance - More
- May 07, 2008 | Item | E-mail

Paragon Minerals Provides Drilling Update on the JBP-Appleton Linear Project - More
- May 07, 2008 | Item | E-mail

Cadillac Ventures Inc.: New Gold Bearing Zones Located at New Alger - More
- May 07, 2008 | Item | E-mail

Sirios Inc.: Cheechoo Gold Exploration Project Update, James Bay, Quebec - More
- May 07, 2008 | Item | E-mail

Typhoon Intersects 1,24 g/t Au on 3,0 Meters at Fayolle - More
- May 07, 2008 | Item | E-mail

Rockcliff Intersects VMS Mineralization at Snow Lake VMS Project - More
- May 07, 2008 | Item | E-mail

Gold World Resources Hires Exploration Supervisor - More
- May 07, 2008 | Item | E-mail

Golden Valley Mines Ltd.: Cheechoo Gold Exploration Project Update James Bay Quebec - More
- May 07, 2008 | Item | E-mail

Golden Band Resources: Bingo exploration and development update - More
- May 07, 2008 | Item | E-mail

Northland Intersects 19.4m @ 48.5% Fe 0.41% Cu at Kuervitikko Project, Finland - More
- May 07, 2008 | Item | E-mail

International KRL Resources provides update on Wolf project - More
- May 07, 2008 | Item | E-mail

Inspiration Mining Corporation to Extend Warrant Expiry Date - More
- May 07, 2008 | Item | E-mail

Century Resolves All Issues With BCSC - More
- May 07, 2008 | Item | E-mail

Bullion River Gold Corp. Appoints New Management - More
- May 07, 2008 | Item | E-mail

Skyline Announces Completion of the Bronson Slope Technical Report - More
- May 07, 2008 | Item | E-mail

Tribune Intersects 8.11 g/t Gold Over 3.05 Meters at Reed Lake - More
- May 07, 2008 | Item | E-mail

U3O8 Corp. Reports Uranium Assay Results From a Further 10 of 50 Planned Bore Holes at Aricheng South - More
- May 07, 2008 | Item | E-mail

Tombstone Exploration Corporation Files National Instrument 43-101 Technical Report -- Strong Drilling to Commence - More
- May 07, 2008 | Item | E-mail

Volta Resources commences phase two core drilling program at its Gaoua copper-gold project, Burkina Faso - More
- May 07, 2008 | Item | E-mail

Serengeti Reports on Positive Mineralogical Study at Kwanika - More
- May 07, 2008 | Item | E-mail

GoldSpring Releases Positive Drill Results From Hartford Complex - More
- May 07, 2008 | Item | E-mail

North American Palladium Preliminary Economic Assessment Confirms Long Term Potential of Offset High Grade Zone - More
- May 07, 2008 | Item | E-mail

Anglo Swiss Resources Commences Phase 2, 10,000 Meter Drilling Program on the Kenville Gold Property - More
- May 07, 2008 | Item | E-mail

Mega Silver Inc.: Drilling Begins on Promontorio - More
- May 07, 2008 | Item | E-mail

Carpathian Gold Inc.-Update on In-Fill & Delineation Drilling on the Rovina Porphyry, Romania, With Highlight Intersections of: 290 m at 1.05 g/t Au eq. - More
- May 07, 2008 | Item | E-mail

Extract Resources Announces Uranium Exploration Licences Renewed - More
- May 07, 2008 | Item | E-mail

Geologix Discovers Grades of 76 g/t Gold, 1205 g/t Silver and a New Zone of High Grade Mineralization at Liscay, Peru - More
- May 07, 2008 | Item | E-mail

Golden Goose reports a 43-101 nickel resource at its Lac Levac property - More
- May 07, 2008 | Item | E-mail

Installation of EMEW plant in Zambia by Q4 of 2008 - on schedule - More
- May 07, 2008 | Item | E-mail

Uranium Resources Announces First Quarter 2008 Earnings Teleconference and Webcast - More
- May 07, 2008 | Item | E-mail

Galway Resources Infill Drilling Intercepts 75 Feet Of High Grade Molybdenum & Tungsten At Victorio - More
- May 07, 2008 | Item | E-mail

Gabriel Resources Ltd: First Quarter Report - More
- May 07, 2008 | Item | E-mail

Paramount Gold and Silver Corp. to Prepare Resource Estimate - "Paramount Gold and Silver Corp. (Toronto:PZG.TO - News)(AMEX:PZG - News)(Frankfurt:P6G.F - News)(WKN: A0HGKQ) has engaged A.C.A Howe International Limited, mining and geological consultants from Toronto, Canada to complete a National Instrument 43-101 compliant resource estimate of its San Miguel project in Mexico. The estimate will include all drill results from inception to date including 'Clavo 99' and from other areas of the San Miguel project. Since its last resource estimate first released in January 2007 Paramount has drilled over 170 holes at San Miguel. This resource estimate is expected to be completed by mid 2008." More
- May 07, 2008 | Item | E-mail

Miner Kinross sees opportunities in credit crunch - "Kinross Gold (K.TO: Quote, Profile, Research) sees opportunities in the tightening of the credit market, which has limited the ability of small mining companies to raise funds and forced them to put some attractive properties on the market, the Canadian gold miner said on Wednesday.

"I think as a sector, as you know, some of the junior one-mine companies are struggling a bit with their development profile and capital needs," Kinross Chief Executive Tye Burt said on a conference call held to discuss the company's first-quarter earnings." More
- May 07, 2008 | Item | E-mail

New Kyrgyz mining code ready by July-govt official - "A new, investor-friendly mining code for Kyrgyzstan will be enacted by the country's parliament by July, a government official said on Wednesday.

The Central Asian republic, with deposits of gold and coal as well as exotic metals antimony and mercury, wants to take advantage of high metal prices on world markets, and strong demand from neighbouring China." More
- May 07, 2008 | Item | E-mail

Apollo Gold Reports First Quarter 2008 Results - "Apollo Gold Corporation (“Apollo” or the “Company”) (AMEX:AGT - News)(TSX:APG - News) announced today net income of $3.7 million, or $0.02 per share, for the three months ended March 31, 2008, as compared to a net loss of $4.6 million, or $0.03 per share, for the three months ended March 31, 2007. Unless otherwise indicated, all dollar amounts are reported in US currency." More
- May 07, 2008 | Item | E-mail

Bayswater Establishes Corporate Governance System - More
- May 07, 2008 | Item | E-mail

UCR Continues to Intersect U Mineralization at the East Target property - More
- May 07, 2008 | Item | E-mail

Aurizon Reports Highlights of First Quarter 2008 Results - "In the first quarter of 2008, Aurizon incurred a net loss of $3.8 million, or ($0.03) per share, compared to net earnings of $0.7 million, or nil per share, in the same period of 2007. Operating results were impacted by non-cash derivative losses of $8.0 million and foreign exchange gains of $0.9 million, on an after tax basis. After adjusting for these items, net earnings for the quarter were $3.3 million, or $0.02 per share, compared to adjusted net earnings in the first quarter of 2007 of $1.2 million or $0.01 per share." More
- May 07, 2008 | Item | E-mail

Gammon Gold Announces First Quarter Financial Results and Net Earnings of $0.07 per Share - A Record Setting Quarter and a 137% Improvement over Q4 2007 - "Consolidated net earnings were $8.5 million in Q1 2008, representing an increase of $29.2 million over Q4 2007. These improvements were primarily due to higher production, higher metal prices and lower costs of production as evidenced by the reduction in total cash costs per gold equivalent ounce to $491 in Q1 2008, representing a decrease of 27% over Q4 2007." More
- May 07, 2008 | Item | E-mail

Venezuela workers halt Hecla gold mine operations - "Venezuelan workers have halted operations at the Isidora gold mine, run by a subsidiary of U.S. miner Hecla Mining Co, to demand President Hugo Chavez take over the unit, a company official said on Wednesday.

The stoppage follows a renewed wave of nationalizations this year affecting the cement and steel sectors, and comes just days after other companies said Venezuela denied exploration permits to two gold miners operating in the same region." More
- May 07, 2008 | Item | E-mail

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