Gold Seeker Closing Report: Gold and Silver Gain On Further Bailout Uncertainty

	Close	Gain/Loss
Gold	$890.00	+$4.00
Silver	$13.35	+$0.29
XAU	145.63	+0.40%
HUI	346.02	+0.46%
GDM	1026.31	+0.47%
JSE Gold	1896.71	+63.58
USD	76.90	+0.39
Euro	146.25	-0.44
Yen	94.24	-0.56
Oil	$105.73	-$0.88
10-Year	3.771%	-0.070
T-Bond	117.359375	+0.3125
Dow	10825.17	-0.27%
Nasdaq	2155.68	+0.11%
S&P	1185.87	-0.20%

Gold fell $6.40 to $879.60 in Asia and rose nearly 2% to $901.75 in New York before it fell back off for most of the rest of trade, but it still ended with a gain of 0.45%. Silver fell just slightly to $13.045 and rose over 4% to $13.63 before it also fell back off into the close, but it still ended with a gain of 2.22%.

Euro gold rose to about €607, platinum gained $3.50 to $1207.50, and copper fell over 4 cents to about $3.12.

Gold and silver equities traded mostly slightly higher and ended with modest gains.

Report	For	Reading	Expected	Previous
Existing Home Sales	Aug	4.91M	4.93M	5.02M

The house financial services committee hosted Bernanke and Paulson this afternoon and Bernanke also spoke earlier this morning with the joint economic committee. Bernanke said that a properly developed program can increase the value of the distressed assets the government plans to purchase with the proposed $700 billion bailout plan. He also argued that it’s not just an inconvenience in the credit markets happening but that failure to act will also result in a loss of jobs and other impacts on the direct economy and that seemed to increase confidence the bill would pass as it pushes the point that it is not just a bailout for Wall Street but also a bailout for main street. Certainly others have different points of view about this plan and many have made them known this past week with some excellent articles posted on the main page of GoldSeek.

President Bush will address the nation tonight about the bailout at 9PM EST. Tomorrow at 8:30AM EST brings Durable Goods Orders for August expected at -1.3% and Initial Jobless Claims for 9/20. At 10AM is the New Home Sales report for August expected at 518,000.

Oil rose in early trade on confidence that the bailout plan will bring some stability to the markets, but it ultimately fell back off and ended a bit lower on worries over demand no matter what happens. Oil inventories fell 1.5 million barrels, gasoline inventories fell 5.9 million barrels, distillates fell 4.2 million barrels, and refineries ran at 66.7%.

The U.S. dollar index rose as bailout plans remained mostly steady and the euro fell on a drop in the September German Ifo Index.

Treasuries rose slightly “after a record size $34 billion auction of 2-year notes generated decent demand.” Most of the talk in the bond pits lately has been over the large difference in swaps. The 2-year swap rose to over 160 today which basically means it is very hard to borrow.

The Dow, Nasdaq, and S&P held near unchanged in low volume as views over the bailout plan did not change much and everyone seemed to be watching the testimony and not trading in order to react to any developments. It seems that the process is now just hammering out the details and the view on the street it that a plan may be passed by this weekend, but if that view changes then things could get real ugly quite quickly. CEO compensation limits and equity stakes are just a couple of the differing details that could hold this plan up for several more days or even weeks.

Among the big names making news in the market today were the FBI and Fannie, Freddie, Lehman, and AIG, Goldman Sacks and Warren Buffet, Morgan Stanley, and Lowe’s.

“December Gold closed up 3.8 at 895. This was 3.5 up from the low and 12 off the high.

December Silver finished up 0.27 at 13.44, 0.24 off the high and 0.16 up from the low.

The gold market did see a lower low for the move during the trade Wednesday but in the end the market seemed to be willing to settle around the prior sessions closing value. In fact, for the gold market to show positive price action throughout the morning trade in the face of a higher Dollar suggests that something other than currency action is driving prices. With the gold market weakening in the wake of the scheduled US numbers and gold prices somewhat discouraged in the wake of fears of slowing from the Chinese Prime Minister it would seem like some gold players remained concerned about severe slowing.

The silver market seemed to out perform the gold market during the trade Wednesday. In fact, for silver to have remained mostly positive during the session in the face of a rising Dollar and sharp declines in copper would seem to suggest that silver was attempting to track a fresh fundamental track. Perhaps the silver market is attempting to establish a tighter positive correlation with the US equity market, which is something that many physical commodity markets might see in the event that a bailout plan is actually passed.”- The Hightower Report, Futures Analysis and Forecasting

Note: Change in Total Tonnes from yesterday’s data: SPDR added 15.32 tonnes to a new record high holding.

Note: Change in Total Tonnes from yesterday’s data: 1.07 tonnes were added to the trust.

Note: Change in Total Tonnes from yesterday’s data: 30.73 tonnes were added to the trust.

Barrick’s (ABX) Pascua Lama gold project continuing to be held up, Kirkland’s (KGI.TO) director appointment, Fronteer’s (FRG) earned majority interest in Long Canyon, Excellon’s (EXN.TO) mill construction permits, and Impact’s (IPT.V) stock options 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.

Zazu Intersects 26.8 m Grading 27% Zinc Lead at Lik - More
- September 24, 2008 | Item | E-mail

Sego Resources Inc. and Upper Similkameen Indian Band Receive Reclamation Award - More
- September 24, 2008 | Item | E-mail

Amador Gold Makes New Gold Discovery on Its Loveland Nickel Copper Project - More
- September 24, 2008 | Item | E-mail

Excellon Announces Receipt of Mill Construction Permits and Planned Reduction in Operating Expenditures - "Excellon Resources Inc. (Toronto:EXN.TO - News) today announced that it has received all the necessary permits from the Mexican Government to construct and operate a lead/zinc flotation mill at its Platosa Property in Durango State. In addition, Excellon announces that all major equipment for the mill has been acquired and significant additional work has been in progress off site in preparation for the commencement of activity at the mine." More
- September 24, 2008 | Item | E-mail

Ruby Red proposes to extend terms of warrants - More
- September 24, 2008 | Item | E-mail

Amended New Release: Clifton Resources Inc. Announces Financing With MineralFields Group - More
- September 24, 2008 | Item | E-mail

165,000,000 Tonnes Resource Estimated for the Nithi Property - More
- September 24, 2008 | Item | E-mail

U2009 Global Uranium Symposium Announced - More
- September 24, 2008 | Item | E-mail

SIRIOS RESOURCES INC./Kukames Project : 2.44 g/t of Gold Over 2 Meters - More
- September 24, 2008 | Item | E-mail

Andover Announces Results from Annual General Meeting - More
- September 24, 2008 | Item | E-mail

Arian Silver Upgrades Tepal Resource Estimate - More
- September 24, 2008 | Item | E-mail

Duran Ventures and MacMillan Gold Drilling at Aguila and Pasacancha Targets in Peru - More
- September 24, 2008 | Item | E-mail

Temex and partners commence drill program in McFaulds Lake Area - More
- September 24, 2008 | Item | E-mail

Drilling Project Extended on the Hotish Uranium Project - More
- September 24, 2008 | Item | E-mail

Polar Star: Montezuma and Chepica Mine Update - More
- September 24, 2008 | Item | E-mail

Adventure Gold Drills 9.7 g/t Au Over 2.2 Metres on Lapaska - More
- September 24, 2008 | Item | E-mail

Big Red Diamond Corporation: TSX Approves the Bristol Acquisition Agreement - More
- September 24, 2008 | Item | E-mail

Detour Gold Appoints New Chief Financial Officer - More
- September 24, 2008 | Item | E-mail

Underworld Discovers Second Gold Zone on White Property in Yukon and Continues to Intersect Mineralization at Golden Saddle - More
- September 24, 2008 | Item | E-mail

Goldcliff Resource Corporation: Drilling on Bonanza Trench High Grade 17 oz Gold Area - More
- September 24, 2008 | Item | E-mail

StrataGold commences drilling on BRL Venture, Guyana - More
- September 24, 2008 | Item | E-mail

Orebodies announces McFaulds Lake Joint Venture drill program - More
- September 24, 2008 | Item | E-mail

Hawthorne Appoints Mine Manager at Cassiar Gold Camp - More
- September 24, 2008 | Item | E-mail

Rockgate Intercepts 0.20% U308, 1.27% Copper and 25.20 g/tonne Silver Over 3.2 Metres on the Falea U-Ag-Cu Project, Mali, West Africa - More
- September 24, 2008 | Item | E-mail

Silver Shield Extends Discovery Zone at Welsh Silver Property; Intersects 1230 g/t Silver in Third High Grade Discovery Hole 190 m South of Hole WS-08-02 - More
- September 24, 2008 | Item | E-mail

U3O8 Corp. Cuts 5.6 Metres Grading 1.01% (20.3 Pounds Per Short Ton) U3O8 at Aricheng North - More
- September 24, 2008 | Item | E-mail

Western Troy Encouraged After Examination of Galloway Molybdenum Prospect - More
- September 24, 2008 | Item | E-mail

Pacific Cascade Completes 2008 Crack Moly Geophysics and Drilling Program - More
- September 24, 2008 | Item | E-mail

Osisko Intersects 141 Metres Averaging 2.4 g/t Gold at Barnat - More
- September 24, 2008 | Item | E-mail

PolyMet EIS and Glencore Update - More
- September 24, 2008 | Item | E-mail

Luiri Gold Receives Positive Metallurgical Results - More
- September 24, 2008 | Item | E-mail

More than $6.1 million in exploration completed - Roxmark updates Premier Gold's progress on Geraldton Project - More
- September 24, 2008 | Item | E-mail

Marathon to Host Site Tour - More
- September 24, 2008 | Item | E-mail

Northland's Management to Present at Upcoming Conferences In Toronto and New York - More
- September 24, 2008 | Item | E-mail

AuEx Ventures, Inc.: Fronteer Vests 51% at Long Canyon - More
- September 24, 2008 | Item | E-mail

NQ Exploration Inc./Carheil Property: Discovery of New EM Conductors - More
- September 24, 2008 | Item | E-mail

Serengeti and Fjordland Identify Six Priority IP Targets for Follow-Up on Their QUEST Project - More
- September 24, 2008 | Item | E-mail

Kirkland Lake Gold Inc.: New Director appointed to the Board Options Granted to the Board - "Kirkland Lake Gold Inc. (the "Company") (TSX:KGI - News; AIM:KGI) is pleased to announce that Trevor Maurice Gabriel, a Fellow Member of the Institute of Chartered Accountants in England and Wales, has been appointed to the Board of Directors effective 19 September 2008. In light of his experience as a Chartered Accountant, Mr. Gabriel has also been appointed to the Audit Committee of the Board of Directors." More
- September 24, 2008 | Item | E-mail

Fronteer Earns Majority Interest in Long Canyon Gold Project, Nevada - "Fronteer Development Group Inc. ("Fronteer" or the "Company") (Toronto:FRG.TO - News)(FRG - News) is pleased to announce that it has now earned a majority interest in Long Canyon, an important new gold project in northeastern Nevada." More
- September 24, 2008 | Item | E-mail

IMPACT Silver Corp.: Stock Options Granted - "IMPACT Silver Corp. (TSX VENTURE:IPT - News) announces that it has granted incentive stock options under its Stock Option Plan to directors, officers, employees and consultants exercisable for 2,200,000 shares of IMPACT. The options are exercisable on or before September 23, 2013 at a price of $0.80 per share." More
- September 24, 2008 | Item | E-mail

Barrick says Pascua Lama gold mine still held up - "The giant Pascua Lama gold project straddling Chile and Argentina is still being delayed by cross-border tax issues, and construction of the mine high in the Andes is not imminent, its owner said on Wednesday.

Chilean and Argentine authorities are to meet in coming weeks in Santiago, where they expect to iron out a tax deal which has been stuck for months on details about which services would be taxed on which side of their shared border.

Media reports this week said the Canadian company which owns the project, Barrick Gold Corp (ABX.TO: Quote, Profile, Research, Stock Buzz), would make a decision this week about starting work on the project, which contains some 17 million ounces of gold." More
- September 24, 2008 | Item | E-mail

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