Gold Seeker Closing Report: Gold and Silver Gain Roughly 1%

	Close	Gain/Loss
Gold	$782.90	+$6.50
Silver	$9.53	+$0.14
XAU	94.91	+6.69%
HUI	225.75	+6.58%
GDM	680.96	+6.85%
JSE Gold	1963.85	+85.58
USD	86.65	-0.33
Euro	127.12	+0.95
Yen	107.06	-0.28
Oil	$46.96	-$2.32
10-Year	2.693%	-0.026
T-Bond	132.203125	+0.578125
Dow	8419.09	+3.31%
Nasdaq	1449.80	+3.70%
S&P	848.81	+3.99%

Gold fell $14.77 to $761.63 by late trade in Asia and rose to see a $9.40 gain at $785.80 by about 9AM in New York before it fell back off a bit into the close, but it still ended with a gain of 0.84%. Silver fell $0.24 to $9.15 by late trade in Asia and rose to see a $0.32 gain at $9.71 by about 9AM EST before it also backed off slightly from that high in the last several hours of trade, but it still ended with a gain of 1.49%.

Euro gold rose to about €616, platinum rose $1 to $802, and copper fell a couple of cents to about $1.58.

Gold and silver equities rose about 6% at the open and remained near that level for most of the morning and early afternoon before they fell back off a bit in mid-afternoon action, but they then shot back higher in the last hour of trade and ended at new session highs with gains of over 6.5%.

There were no major economic reports today. Tomorrow at 8:15AM EST brings ADP Employment for November expected at -200,000. At 8:30 is 3^rd quarter Productivity expected at 0.9%, at 10AM is the ISM Services report for November expected at 42.0, and at 2PM is the release of the fed’s Beige Book.

Oil ended nearly 5% lower on more evidence that demand is falling while it was also reported that OPEC has not yet cut output as much as they had earlier pledged.

“The dollar slid against the euro and a basket of currencies on Tuesday as a stock market rebound encouraged investors to emerge from the shelter of

U.S.

assets.”

“Treasuries rose, sending yields on 30-year bonds to a record low, on speculation that inflation will remain subdued and the Federal Reserve may purchase

U.S.

government securities as the recession deepens.”

The Dow, Nasdaq, and S&P rose to find nice gains in morning action before they fell back near unchanged in early afternoon trade after GM and the automakers released another set of dismal sales numbers, but all three indices rallied back higher in late trade and ended with decent gains after the fed announced that they will extend their credit programs even further into the future.

Among the big names making news in the market today were GM, ford, Sears, Beazer Homes, Goldman Sachs, British Airways and Qantas, GE, Delta Air Lines, and Staples.

Today we are back into trading the “reflation trade”. Yesterday we were all trading the deflation trade. Tomorrow – who knows?

Today was a near perfect inverse of yesterday’s price action in the commodity complex. Yesterday the index funds and some hedgies were throwing away everything and anything that remotely resembled a commodity. I remarked that my quote board was a solid line of red. Today that same quote board is a solid line of blue – everything that looks remotely like a commodity is up. Okay – let’s try to deeply divine this incredibly sophisticated and complex trading program that is being employed by the marvelously inept modern hedge and index funds – ready? Stock market UP – BUY COMMODITIES… Stock market DOWN- SELL COMMODITIES… I know it is hard to wrap your mind around such a complex algorithm, but I think that if we concentrate really hard and apply ourselves we will be able to grasp the vagaries of this amazingly sophisticated strategy. I sure am glad the best and brightest traders on the planet are handling this strategy as I for one would no doubt be lost in its complexities.

Seriously folks – we are all trading the US equity markets nowadays whether we actually trade them or not.

Even with the up day (thus far) in the equity markets, it does seem to me from watching the price action, that ongoing long liquidation and some small amounts of fresh hedge fund selling are emerging on rallies in the commodity markets. That is being confirmed by yesterday’s release of the supplemental commitment of traders reports showing further index fund long liquidation across the entire spectrum of the commodity complex. The exodus of that money from the complex has seen open interest in many of these markets cut by more than 50% from its peak. That is a tremendous amount of selling. These guys were the ones that drove prices north when they first came in to buy as investors were clamoring for commodity exposure in their portfolios and now they are the ones driving prices south as those same investors sour on world of tangibles. Assuming there are any of them left when the dust settles, they will also be the ones driving prices back up again once the fallout from this quantitative easing begins and the Dollar gives up the ghost.

As a further point of reference, open interest took yet another big hit in yesterday’s price collapse dropping nearly 5,000 contracts to 266,000. We are now down to levels of open interest last seen in August 2005, more than 3 years ago! Gold was trading closer to $450 back then. I am beginning to think that the bulk of the index fund liquidation is coming to an end. A lot depends on whether or not the hedge funds decide to start building short positions in the gold market but as far as selling goes, the index funds are generally “long only” funds so once they have exhausted their selling and met all the redemption requests that they need to meet, the selling is going to either have to come from the hedge funds or the comex gold market is going to run out of sellers. If the hedge funds do not move in on the short side, gold is not far from a bottom. We just have to wait and see since attempting to ferret out just how large a long position the index funds had built up is pretty challenging since we do not have the appropriate data from the COT – instead we have to extrapolate from the current COT reports. Three year’s worth of positions dropped in less than a year is pretty revealing however.”- Dan Norcini, more at JSMineset.com

“December Gold closed up 6.7 at 781.3. This was equal to the low and equal to the high.

December Silver finished up 0.24 at 9.59, equal to the high and equal to the low.

The gold market apparently was cheered by the combination of a sluggish Dollar, higher equity prices and perhaps even a slightly more upbeat macro economic dialogue flowing from some US officials. In fact, with Paulson and the Fed's Plosser both attempting to downplay the severity of the US situation that seemed to temper the patently deflationary attitude toward gold that had been in place for a large portion of the prior four trading sessions.

The silver market mostly tracked closely with the gold market but not very closely with the copper and platinum markets. It certainly appeared that the sharp gains in the equity market provided silver with a lift but it is also possible that silver was indirectly lifted by favorable dialogue flowing from US officials. Perhaps the oversold condition of the silver market over the prior four trading session provided the silver market with a short covering incentive or perhaps the silver market was simply lifted by the up beat dialogue from the Fed's Plosser who suggest that the US Fed would work aggressively to "thwart" deflation.”- The Hightower Report, Futures Analysis and Forecasting

Note: Change in Total Tonnes from last Wednesday’s data: SPDR added 3.06 tonnes.

Solitario’s (XPL) drill results, Yamana’s (AUY) profit margins, Barrick’s (ABX) gold mine in Nevada and comments on potential M&A, Endeavour’s (EXK) drill results, Excellon’s (EXN.TO) resumed production, MAG’s (MVG) received take-over bid from Fresnillo, Orko’s (OK.V) drill results, Minefinders’ (MFN) bought deal financing, and Esperanza’s (EPZ.V) and Silver Standard’s (SSRI) increased resources 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.

Frontera Copper Retains RBC Capital Markets as Financial Advisor - More
- December 02, 2008 | Item | E-mail

Metanor Resources Inc.-Board of Directors and Approval of the Modification to the Stock Options Plan - More
- December 02, 2008 | Item | E-mail

Golden Dawn Minerals Continues Drilling at Kirkland Lake Gold Properties - More
- December 02, 2008 | Item | E-mail

Melkior Announces Extension of Warrants Term - More
- December 02, 2008 | Item | E-mail

Solitario Announces Additional Mineralization Intersected on Its Pedra Branca Platinum-Palladium Project, Brazil - "Solitario Exploration & Royalty Corp. (NYSE Alternext:XPL) (TSX:SLR - News) announces significant new platinum-palladium ("PGM") drill hole assay results that suggest good potential to establish new mineral resources on its Pedra Branca project in northeastern Brazil. Additionally, Solitario received notice from Newmont de Mexico, S.A. ("Newmont"), a subsidiary of Newmont Mining, that Newmont has elected to terminate its rights under a previously signed joint venture to earn an interest in the Pachuca Real silver-gold project in central Mexico. Solitario will retain 100% interest in the project moving forward." More
- December 02, 2008 | Item | E-mail

Crowflight to Commence Trading on Toronto Stock Exchange - More
- December 02, 2008 | Item | E-mail

Yamana Gold sees lower costs, no M&A right now - "Yamana Gold (YRI.TO: Quote, Profile, Research, Stock Buzz) sees widening profit margins over the next year as declining production costs will likely outpace any further retreat in gold prices, the company's chief executive said on Tuesday.

Speaking at an investment conference, CEO Peter Marrone said costs for inputs such as oil, combined with weaker currencies in countries where Yamana operates, mean the third quarter of 2009 will likely stand as the high point for costs." More
- December 02, 2008 | Item | E-mail

Evolving Gold Intersects 131.0 Meters of 2.74 Grams/Tonne at Rattlesnake Hills, Wyoming - More
- December 02, 2008 | Item | E-mail

Golden Goliath Intercepts 7.22 Metres of 225 Grams/Tonne Silver and Initiates Mineral Inventory Estimation at Las Bolas - More
- December 02, 2008 | Item | E-mail

Century Mining Reports Third Quarter 2008 Financial Results - More
- December 02, 2008 | Item | E-mail

Alberta Star to Raise Up to $350,000 in Non-Brokered Private Placement - More
- December 02, 2008 | Item | E-mail

Hard Creek Nickel Corporation: 2007 Private Placement Warrants Extended - More
- December 02, 2008 | Item | E-mail

Northern Shield Provides Updates on Exploration at Max and Wabassi Properties. - More
- December 02, 2008 | Item | E-mail

Mantis reports up to 38 opt gold from its Cree Lake property. - More
- December 02, 2008 | Item | E-mail

Supreme Court rules in Sullidens' favour on one part of appeal in Shahuindo litigation - More
- December 02, 2008 | Item | E-mail

Silver Dragon Resources Inc. Issues President's Letter to Shareholders - More
- December 02, 2008 | Item | E-mail

Paladin Energy offers to buy Fusion for A$17.8 mln - More
- December 02, 2008 | Item | E-mail

East West Resource Corporation: Platinum-Copper-Nickel Exploration Continues - More
- December 02, 2008 | Item | E-mail

Stelmine Canada Ltd.: Admendment of Stock Options - More
- December 02, 2008 | Item | E-mail

Royal Roads Corp. - Change of Officers - More
- December 02, 2008 | Item | E-mail

Tombstone Exploration's Summer Drill Program Makes Mass Discovery of Manganese - More
- December 02, 2008 | Item | E-mail

Shoshone activists seek to halt Nevada gold mine - "A lawyer for environmentalists and tribal activists told a federal judge that the government's approval of a big gold mine was flawed and would prohibit the Western Shoshone from practicing religious rites on a mountain in northern Nevada. But attorneys for Toronto-based Barrick Gold Corp. countered that not all Western Shoshone share the views of Carrie Dann and the Western Shoshone Defense Project, and that their arguments are without merit." More
- December 02, 2008 | Item | E-mail

Endeavour Silver Drilling Extends High Grade Silver-Gold Mineralization in Three New Zones at Guanajuato Mines Project in Guanajuato State, Mexico - "Endeavour Silver Corp. (Toronto:EDR.TO - News)(NYSE-A: EXK)(DBFrankfurt:EJD) announces that exploration drilling near its Bolanitos mines at the Guanajuato Mines project in Guanajuato State, Mexico has extended high grade silver-gold mineralization within three recently discovered vein zones, Bolanitos, Santa Maria and Lucero." More
- December 02, 2008 | Item | E-mail

Barrick Gold looking at M&A, sees cheap assets - "Barrick Gold (ABX.TO: Quote, Profile, Research, Stock Buzz) is looking at making acquisitions but will take a cautious approach, the company's chief financial officer said on Tuesday.

Speaking at an investment conference, CFO Jamie Sokalsky said valuations for both companies and projects have become exceptionally cheap." More
- December 02, 2008 | Item | E-mail

Excellon Resumes Normal Production at Platosa - "Excellon Resources Inc. (Toronto:EXN.TO - News) is pleased to announce that it has successfully sealed the area of the unexpected water inflow encountered during normal mine development on October 4th. Dewatering of the mine has now allowed full production activities to resume. On November 30, haulage of ore to surface from underground storage areas was started and routine mining activity was resumed on December 1st. Surface crushing operations and regular shipments of ore to the Penoles Naica operation are scheduled for later this week." More
- December 02, 2008 | Item | E-mail

Appalaches Buys a Gold Producer in Nova Scotia - More
- December 02, 2008 | Item | E-mail

Acadian Mining reports granting of security to Royal Roads Corp. - More
- December 02, 2008 | Item | E-mail

Temex continues to intersect high grade gold Whitney Township Property, Timmins Gold Camp - More
- December 02, 2008 | Item | E-mail

DPM Announces Krumovgrad EIA Procedure Restarts With Natura 2000 Compatibility Assessment - More
- December 02, 2008 | Item | E-mail

Callinan Mines Is Protecting its Interest in the 777 and Callinan Mines - More
- December 02, 2008 | Item | E-mail

AXMIN Announces Board Appointment - More
- December 02, 2008 | Item | E-mail

A$17.8 Million Recommended Takeover Offer by Paladin Energy Ltd for Fusion Resources Limited - More
- December 02, 2008 | Item | E-mail

GHR's prospecting efforts return 12 g/t gold, and 9.26% copper - More
- December 02, 2008 | Item | E-mail

Progress Update on Creston Moly Deposit and Financial Results for Year Ended July 31, 2008 - More
- December 02, 2008 | Item | E-mail

Powertech Uranium Corp.: Corporate Update - More
- December 02, 2008 | Item | E-mail

Redcorp Ventures Ltd.: Appointment of Owner's Project Management Team - More
- December 02, 2008 | Item | E-mail

Volta Resources Announces Additional Drilling Results From its Gaoua Copper-Gold Project in Burkina Faso - More
- December 02, 2008 | Item | E-mail

Mercator Minerals Commences Producing Copper-Moly Concentrates at Its Mineral Park Mine - More
- December 02, 2008 | Item | E-mail

CanAlaska to undertake uranium exploration with Chinese mining partner - More
- December 02, 2008 | Item | E-mail

Ventura Reports Fiscal Second Quarter Financial Results - More
- December 02, 2008 | Item | E-mail

Zazu Reports Excellent Drill Results at Lik Deposit - More
- December 02, 2008 | Item | E-mail

Alexis Minerals Mine Enters Full Production-Cash Flow Supports Continued Exploration - More
- December 02, 2008 | Item | E-mail

Beaufield 2008 Results and Outlook for 2009 - More
- December 02, 2008 | Item | E-mail

Uranium Energy Corp Completes Filing of Final Permit Applications for the Goliad ISR Project in South Texas - More
- December 02, 2008 | Item | E-mail

Northland Resources Inc.: Exploitation (Mining) Concession Granted for Tapuli Iron Ore Project - More
- December 02, 2008 | Item | E-mail

Skygold Identifies New High-Grade Gold Intersections in Assay Results from 2008 Spanish Mountain Drill Program - More
- December 02, 2008 | Item | E-mail

Castle Gold Completes Phase 1 of Metallurgical Studies for La Fortuna Project Indicating Gold Recoveries in Excess of 90% and Initiates Scoping Study - More
- December 02, 2008 | Item | E-mail

Initial Metallurgical Studies on Silver Coin Show Positive Results - More
- December 02, 2008 | Item | E-mail

Conway Releases Preliminary Results of Bulk Sampling on the Conway Paquin Property - More
- December 02, 2008 | Item | E-mail

Alhambra Resources Ltd. - Financial and Operating Results for Third Quarter ending September 30, 2008 - More
- December 02, 2008 | Item | E-mail

A$17.8 million recommended takeover offer by Paladin Energy Limited for Fusion Resources Limited - More
- December 02, 2008 | Item | E-mail

MAG Receives Unsolicited Bid From Its Joint Venture Partner - "MAG Silver Corp. (Toronto:MAG.TO - News)(NYSE-A: MVG) ("MAG") announced today that it has been advised of the intention of Fresbal Investments Ltd. ("Fresbal"), a subsidiary of Fresnillo plc, to make an unsolicited take-over bid for all of MAG's outstanding common shares not currently held by Fresnillo and its affiliates at an offer price of US$4.54 cash per share. Fresnillo is MAG's joint venture partner in the Juanicipio Joint Venture and, together with its affiliates, is the holder of approximately 19.8% of MAG's outstanding common shares." More
- December 02, 2008 | Item | E-mail

Orko Silver Drills 3.99 Metres of 1 Kilogram Per Ton Silver Equivalent - "Of particular note is a thick, high-grade intercept for the Martha Vein in hole BP08-280. This hole is located on the eastern side of the mineralized trend. Hole BP08-280 yielded a true thickness of 6.74 metres grading 1.111 g/t gold and 561.6 g/t silver for a silver-equivalent of 628.2 g/t. Within this intercept is 3.99 metres grading 1.822 g/t gold and 927.4 g/t silver for a silver-equivalent of 1,036.7 g/t." More
- December 02, 2008 | Item | E-mail

Minefinders Announces $40,020,000 Bought Deal - "Minefinders Corporation Ltd. (the "Company" or "Minefinders") (TSX:MFL - News; NYSE-A:MFN) is pleased to announce that it has entered into an agreement with a syndicate of underwriters under which the underwriters have agreed to purchase 9,200,000 Units (the "Units") from Minefinders for sale to the public at a price of C$4.35 per Unit, representing an aggregate issue of $40,020,000 (the "Offering")." More
- December 02, 2008 | Item | E-mail

Esperanza Silver Corporation: San Luis Gold Resources Increase By 31% - "The San Luis Joint Venture is pleased to report an updated mineral resource estimate that represents a 31% increase in gold resources at the San Luis Project. This resource estimate was undertaken as a result of a review of the prior estimate announced in November 2007." More
- December 02, 2008 | Item | E-mail

Silver Standard Resources Inc.: San Luis Gold Resources Increase by 31% - "The San Luis Joint Venture is pleased to report a 31% increase in measured and indicated gold resources at the San Luis Project, with measured resources of 61,000 troy ounces of gold, indicated resources of 287,000 troy ounces of gold and inferred resources of 3,600 troy ounces of gold. This resource estimate was undertaken following a review of the prior resource estimate announced in November 2007." More
- December 02, 2008 | Item | E-mail

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