Gold Seeker Closing Report: Gold Drops Slightly and Silver Pops Nicely

	Close	Gain/Loss
Gold	$872.70	-$7.70
Silver	$17.09	+$0.25
XAU	180.57	+3.20%
HUI	421.06	+2.71%
GDM	1263.85	+2.50%
JSE Gold	2368.93	+28.06
USD	73.04	-0.45
Euro	155.96	+1.55
Yen	94.41	-0.67
Oil	$127.79	+$5.49
10-Year	4.025%	+0.085
T-Bond	114.25	-1.00
Dow	12604.45	+1.73%
Nasdaq	2449.94	+1.87%
S&P	1404.05	+1.95%

Gold fell nearly 2% to $864.60 by about 8:30AM EST in New York before it rose to $878.70 by about 10AM and next fell back to about $869, but it then rallied back higher into the close and ended with a loss of just 0.87%. Silver dropped over 2% to $16.47 in early New York trade York before it rose to find about a 2% gain at $17.17 by 10AM and then fell back near unchanged to about $16.90, but it also rallied back higher into the close and ended with a gain of 1.48%.

Euro gold fell to about €561, platinum gained $7 to $1998.50, and copper remained at about $3.55.

Gold and silver equities rose over 1% about a half hour into trade before they fell back to see a slight loss by late morning, but they then rallied back higher for most of the rest of trade and ended with roughly 3% gains.

Report	For	Reading	Expected	Previous
Initial Claims	5/31	357K	372K	375K

The fed’s Lacker had comments today suggesting that the fed’s safety net that bailed out Bear Stearns is not necessarily available for other banks as well. Without naming names, Lacker noted that the fed had been approached by some banks looking to take out other banks with the fed’s help and the fed had denied them. "It is uncomfortable, because the scope of lending support is viewed by market participants as having been expanded, and we've not yet aligned our supervisory activities accordingly."

Tomorrow at 8:30AM EST brings May’s jobs data. Nonfarm Payrolls are expected at -60,000, the Unemployment Rate is expected at 5.1%, Hourly Earnings are expected at 0.2%, and the Average Workweek is expected 33.7. At 10AM is the Wholesale Inventories report for April expected at 0.4% and at 3PM is Consumer Credit for April expected at $7.0 billion.

The U.S. dollar index initially rose after the European Central Bank and Bank of England left interest rates unchanged at 4.0% and 5.0% as most expected, but it then fell rather markedly after ECB President Trichet commented that the ECB is quite worried about inflation and seriously considered a rate hike. While the hike at this meeting did not materialize, a hike at the ECB’s next meeting looks increasingly likely as the fed continues to keep its rate unchanged.

Eventual weakness in the dollar also sent oil back higher as the recent drop in demand was perceived as factored in after the drop in prices from the record $135.09 a barrel over the past two weeks. Oil surged in late trade and ended with an over $5 gain, the largest price gain ever, as market participants covered shorts and looked towards persistent supply concerns and possible rebounding demand due to warmer temperatures arriving in the US and inspiring consumers to turn on the A/C.

Treasuries fell as the Dow, Nasdaq, and S&P rose on better than expected retail sales reports and a larger than expected drop in jobless claims.

Among the big names making news in the market today were Vodafone and Verizon, Brown-Forman, Wal-Mart, Costco, Continental Airlines, Smithfield Foods, and Pepsi.

If you want to know what is in the cards for gold regardless of the massive Gartman type panning on Financial TV and the so called gold mavens and their dire predictions, you simply look at the USDX but more so the euro. There may be a delay in timing due to gold margin calls and gold price technical damage, but no way on earth are these two currencies, gold and the euro, going to diverge direction.

Gold is a currency. Right here fundamental industry demand takes a far back seat to the direction of the Euro and the USDX.

Forget the US Fed raising rates because if they did the next move would be a 1% cut due to the ramification of that act on structured investment vehicles and default derivatives.

I believe I heard from Trichet today that they will not cut rates as he does jawbone markets from time to time. I take his raising rate statement as a bit of jawboning as well.

In order to join the public gold panning crew you must be a strong dollar bull. You need to ignore the fact that consequences are unavoidable from the present and continued bailout of every large OTC derivative dealer that finds themselves with 1% cash, 8% fixed assets and 91% structured products about to run into more FASB 133 and 159 flack.

Don't forget the impact of the reduction of AAA ratings on default derivative dealers before their shares are below $1.

The dichotomy between the euro and the USDX, now somewhat confusing to gold, will resolve itself in favor of the euro as the euro is the major constituent of USDX.

“August Gold finished down 8.3 at 875.5, 5.3 off the high and 7.5 up from the low.

July Silver closed up 0.23 at 17.17. This was 0.62 up from the low and 0.03 off the high.

Clearly the gold bears were taken aback by the clear and rather significant reversal in the Dollar from its early new high for the move on Thursday morning. However, seeing ECB dialogue support the Euro and also seeing the IMF hint that the Dollar was "expensive" certainly served to alter the generally entrenched bullish view toward the Dollar. In short, the influence of the currency markets is apparently pretty strong as the gold market could have easily extended the early weakness on the charts in the face of some decidedly bearish private gold price forecasts that were floated on Thursday. In fact, one long held gold bull was reportedly recommending that traders get "short" gold. Therefore, seeing gold finish sloppy on Thursday in the face of a stronger performance in silver and platinum wasn't that surprising.

With the silver market also getting its share of private bearish price predictions during the trade Thursday it was very impressive to see the market generally favor the upside. In fact, with gold favoring negative ground for most of the session, some of the bull contingent had to be extremely happy with the action today. Perhaps the silver market was garnering some support from the reversal in the Dollar and perhaps the silver market was actually lifted by the up beat macro economic developments from the US. In fact, with favorable initial and ongoing claims, positive May retail sales figures and a soaring equity market, perhaps the silver market was being lifted by improved physical demand expectations.”- The Hightower Report, Futures Analysis and Forecasting

Barrick’s (ABX) Pascua Lama project, Almaden’s (AAU) assay results, Fronteer’s (FRG) new resource estimate, Coeur’s (CDE) ownership in the Rochester mine, Excellon’s (EXN.TO) drill results, SilverCrest’s (SVL.V) drill results, and Hochschild’s (HOCM.L) joint venture buy out 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.

Ressources Appalaches : New Developments at the Mont-De-l'Aigle Property - More
- June 05, 2008 | Item | E-mail

Sego Resources Trenching Locates New Zone - More
- June 05, 2008 | Item | E-mail

Silvermet Receives SNC Lavalins Capital and Operating Cost Report for Its Planned Waelz Kiln Plant in Turkey - More
- June 05, 2008 | Item | E-mail

Lundin Mining AGM Results - More
- June 05, 2008 | Item | E-mail

Bonaventure Issues Update on Flagship K9 Uranium Property - More
- June 05, 2008 | Item | E-mail

Etruscan's Youga Gold Mine recovers 7800 ounces in first three months of ramp up - More
- June 05, 2008 | Item | E-mail

Century Mining Announces Up To C$6 Million In Financings - More
- June 05, 2008 | Item | E-mail

Pancontinental Uranium Completes Charley Creek Drill Program of 126 Holes, 4,426 Metres; Chilling Ground Work to Begin in June - More
- June 05, 2008 | Item | E-mail

Barrick still waiting for Pascua Lama agreement - "Barrick Gold Corp (ABX.TO: Quote, Profile, Research) said on Thursday it had no reason to believe Argentina and Chile are close to a tax agreement that could pave the way for development of the massive Pascua Lama gold deposit." More
- June 05, 2008 | Item | E-mail

Almaden Minerals Ltd.: 80.8 Metres Grading 1.23 g/t Gold and 89.9 Metres Grading 1.11 g/t Gold Intersected at Caballo Blanco Project, Mexico - "Almaden Minerals Ltd. ("Almaden", "the Company") (Toronto:AMM.TO - News)(AMEX:AAU - News) is pleased to report that it has received additional assay results from the Cerro la Paila gold target of its Caballo Blanco project in Veracruz, Mexico from operating partner Canadian Gold Hunter Corp. ("CGH") (Toronto:CGH.TO - News)." More
- June 05, 2008 | Item | E-mail

Campbell Resources issues earnings forecast for 2008-2010 also announces exercise of 205,802 warrants - More
- June 05, 2008 | Item | E-mail

Gold Bullion Development Corp.: Preliminary Metallurgical Testing of Castle Silver Mine Tailings - More
- June 05, 2008 | Item | E-mail

Hard Creek Begins 2008 Field Season at Turnagain - More
- June 05, 2008 | Item | E-mail

Full Metal Minerals Expand Porphyry Exploration Program in Alaska - More
- June 05, 2008 | Item | E-mail

IP Survey Identifies Targets at Depth Below Shaft Zone on Houston Lake Mining's Dubenski Property - More
- June 05, 2008 | Item | E-mail

MDN's Shareholders Approve the Shareholders Rights Plan - More
- June 05, 2008 | Item | E-mail

Matamec Completes First Two Drill-Holes on Matheson JV Gold Property - More
- June 05, 2008 | Item | E-mail

UME Completes Additional Purchase of its own Shares - More
- June 05, 2008 | Item | E-mail

Southampton Receives Positive Initial Results From Horden Lake Drilling - More
- June 05, 2008 | Item | E-mail

GBS Gold Announces Exercise of Warrants for Cash Proceeds of $9.1 Million - More
- June 05, 2008 | Item | E-mail

S.Africa power grid vulnerable into winter-Eskom CEO - "South Africa's electricity grid remains vulnerable going into winter and power utility Eskom will have coal stocks at 20 days by the end of this week or early next week, the company said on Thursday." More
- June 05, 2008 | Item | E-mail

Yale Drills Multi-Ounce Silver at Cerro Colorado - More
- June 05, 2008 | Item | E-mail

Olympus Drilling at Phuoc Son Extends Dak Sa Shear Zone 400 Meters - More
- June 05, 2008 | Item | E-mail

Drilling Begins at Niobium, Tantalum, Phosphate and Uranium Property in Quebec - More
- June 05, 2008 | Item | E-mail

Benton Resources Corp ("Benton") advised of latest drill results from Marathon's drill program on the BCF Property - More
- June 05, 2008 | Item | E-mail

Canasia Industries Corporation: Conductors Indicated on Reed Lake Prospect - More
- June 05, 2008 | Item | E-mail

Franc-Or Closes First Tranche of Private Placement for $200,000 - More
- June 05, 2008 | Item | E-mail

Fronteer's Northumberland Gold Deposit Increases in Size and Significance - "Fronteer Development Group Inc. ("Fronteer" or the "Company") (Toronto:FRG.TO - News)(AMEX:FRG - News) is pleased to announce that a new resource estimate for its 100%-owned Northumberland gold project has increased the deposit's size and advanced its production potential on multiple fronts." More
- June 05, 2008 | Item | E-mail

EXMIN/Yale Drilling Encounters Gold and Silver at the Urique Project, Chihuahua, Mexico - More
- June 05, 2008 | Item | E-mail

Drilling confirms uranium mineralisation over 800m of strike at Duke Batman - More
- June 05, 2008 | Item | E-mail

Armistice Resources Corp. announces $4 million financing - More
- June 05, 2008 | Item | E-mail

Thompson Creek completes C$215,000,000 financing - More
- June 05, 2008 | Item | E-mail

SRA Enters Into Agreement to Sell Balance of Ge/Ga Leachate - More
- June 05, 2008 | Item | E-mail

Powertech Closes Strategic Investment by Synatom - More
- June 05, 2008 | Item | E-mail

Oromin Explorations Ltd.: Six Drills Continue to Provide Excellent Results at Sabodala - More
- June 05, 2008 | Item | E-mail

New Geodex Resource Model Increases Sisson Brook Tungsten-Molybdenum-Copper Deposit to 243.9 Million Tonnes 'Measured and Indicated' - More
- June 05, 2008 | Item | E-mail

Golden Share Identifies 14 IP Anomalies With Surface Grades Up to 759.0 g/t Au on Elwood - More
- June 05, 2008 | Item | E-mail

Orex Exploration Inc.: New Assays From First 5 Drill Holes of 2008 at Goldboro Gold Project Confirm Down-Plunge Extensions of '123' and '56' Zones - More
- June 05, 2008 | Item | E-mail

Marathon Hits Second 100 m Thick Section Of Mineralization On Marathon/Benton JV Property - More
- June 05, 2008 | Item | E-mail

Extract Resources - Strong uranium mineralisation continues to be intersected along-strike at Rossing South - More
- June 05, 2008 | Item | E-mail

Mediterranean announces appointment of Philip Strathy as Company Director - More
- June 05, 2008 | Item | E-mail

Paragon Minerals to Receive Shares for Non-Core Property Assets - More
- June 05, 2008 | Item | E-mail

Sirios Inc./Upinor : Extension of the Uranium "A" Zone Over 5 Km - More
- June 05, 2008 | Item | E-mail

Anaconda Completes Additional Drilling and Continues to Intersect High-Grade Iron Mineralization at San Gabriel - More
- June 05, 2008 | Item | E-mail

U.S. Precious Metals Submits Environmental Impact Study for Approval; Provides Drilling Update - More
- June 05, 2008 | Item | E-mail

Pure Nickel Grants Option on Two Quebec Properties to Minergy Ltd. - More
- June 05, 2008 | Item | E-mail

Alhambra Increases Proven and Probable Reserves by 16% at its 100% Owned Uzboy Heap Leach Mine - More
- June 05, 2008 | Item | E-mail

Aurelio Announces Details of 2008 Exploration & Development Program at Hill Copper-Zinc Project - More
- June 05, 2008 | Item | E-mail

Uranium Energy Corp: Draft Mine Permit Issued for Goliad ISR Uranium Project in South Texas - More
- June 05, 2008 | Item | E-mail

Crosshair Announces Plans for Gold/VHMS Spin-out - More
- June 05, 2008 | Item | E-mail

DIOS: Uranium Zone Enlarged Over 5 Km at UPINOR - More
- June 05, 2008 | Item | E-mail

Western Prospector Reports Gurvanbulag Power Line Operational - More
- June 05, 2008 | Item | E-mail

Coeur to Retain Ownership of Rochester Mine - “In addition to contributing low-cost silver and gold production to Coeur, we are evaluating new opportunities to recover additional silver and gold ounces at Rochester that could extend the mine life beyond 2011, which is when residual leaching operations are expected to be completed.” More
- June 05, 2008 | Item | E-mail

Excellon Receives High Grade Results for 30 Drill Holes - "Excellon Resources Inc. (TSX:EXN - News) has received assay results for massive and semi-massive sulphide, and sulphide breccia intercepts from 30 holes in the Platosa Test-mine area. Visual results for 16 of these were reported on April 23, 2008." More
- June 05, 2008 | Item | E-mail

SilverCrest Main Zone Expansion Drilling-11.2 Metres (36.73 Feet) Grading 3.47 gpt Gold-167.1 gpt Silver, Santa Elena Project, Mexico - "The most notable intercepts of this series of holes were encountered in hole SE08-80 which intercepted 11.2 metres (36.73 feet) grading 3.47 gpt gold and 167.1 gpt silver and hole SE08-79 with 15.9 metres (52.15 feet) grading 1.63 gpt gold and 161.0 gpt silver." More
- June 05, 2008 | Item | E-mail

Hochschild buys rest of Mexico project for $51.5 mln - "Latin American silver and gold miner Hochschild Mining Plc (HOCM.L: Quote, Profile, Research) bought out a joint venture partner at its existing San Felipe project in Mexico for $51.5 million in cash, the firm said on Thursday." More
- June 05, 2008 | Item | E-mail

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