Gold Seeker Closing Report: Gold and Silver Fall Slightly For First Day in Four

	Close	Gain/Loss
Gold	$859.25	-$8.20
Silver	$11.12	-$0.29
XAU	110.86	-7.36%
HUI	274.68	-5.92%
GDM	819.64	-6.72%
JSE Gold	2182.48	-195.75
USD	79.80	+1.18
Euro	142.15	-2.07
Yen	111.70	-2.80
Oil	$36.22	-$3.84
10-Year	2.074%	-0.116
T-Bond	142.546875	+2.0625
Dow	8604.99	-2.49%
Nasdaq	1552.37	-1.71%
S&P	885.28	-2.12%

Gold rose another $11 to $878.45 in early London trade before it fell off rather markedly in morning New York trade and dropped to as low as $848.65 by a little before noon EST, but it then rallied over $10 from that low in the last hour and a half of trade and ended with a loss of just 0.95%. Silver rose 5 cents to $11.46 in early London trade and dropped to as low as $10.972 in New York before it also bounced back higher in late trade, but it still ended with a loss of 2.54%.

Euro gold fell to about €600, platinum lost $2.50 to $856.50, and copper fell over seven cents to about $1.27.

Gold and silver equities fell for most of the day and ended with about 7% losses.

Report	For	Reading	Expected	Previous
Initial Claims	12/13	554K	558K	575K
Leading Indicators	Nov	-0.4%	-0.4%	-0.9%
Philadelphia Fed	Dec	-32.9	-40.5	-39.3

Oil fell over 9% to a new four and a half year low at as low as $35.98 as traders continue to worry about further demand destruction and question whether or not OPEC will actually cut production as much as they have pledged. The January crude futures contract expires tomorrow.

The U.S. dollar index rebounded from recent huge losses. “The dollar jumped against the euro Thursday after the European Central Bank cut its deposit rate and lifted lending rates, in the wake of the U.S. Federal Reserve's easing earlier this week. The ECB cut its official deposit rate by 50 basis points to 1% below the key rate and raised its marginal lending rate by 50 basis points to 1% above the key rate. Its benchmark repo rate remains unchanged at 2.5%.”

Treasuries rose yet again as the Dow, Nasdaq, and S&P eventually fell rather noticeably on worries over the economy and whether or not the fed’s recent amazing actions will be effective.

Among the big names making news in the market today were Rite Aid, Chrysler, Ford, GM, Discover, FedEx, and Lennar

I mentioned yesterday in my commentary that it would not be unexpected to see a bit of a respite in the savage Dollar mauling that has been taking place over the last week. Markets rarely tend to continue in moves of such extent without a bit of a pause for players to pocket profits unless they are in a parabolic blow off phase such as what we are seeing in the bond market. It should come as no surprise then to learn that last evening the monetary authorities of Japan began to surface after having been in hibernation for some time now only to make their usual noises about “excessive movements in the Forex markets”. That is code speak for “we do not like the strong yen”. Of course, that was enough to send yen buyers to the sidelines in a big hurry. I personally love the Japanese monetary authorities because they are so predictable. When you do not hear from them you begin to wonder if something is wrong with the universe.

Either way, their “verbal intervention” served to temporarily derail the yen which also seemed to take the steam out of most of the major currencies as well taking some off their best overnight levels and actually bringing some into negative territory. That was the signal for short-term oriented gold day traders to use the $880 level hit to go ahead and exit and book some paper profits. The selling there confirms $880 as the resistance level which will need to be bettered in order for gold to run to $900 or above. For now it is serving to cap upward momentum. My guess is that the bullion banks have surfaced at that level and some guys decided not to press them without a much weaker dollar especially with crude oil crashing down through the $40 level. OPEC had better attempt something fast or crude will be at $30 in a heartbeat. The good thing for the rest of us is that we can go out and buy some gas guzzlers again ( you know – those vehicles which actually can seat a normal family without shaping them into something resembling a can of packed sardines). Maybe this cheap gasoline can be the new bailout package for the auto industry.

The bond bubble continues expanding with no end in sight as traders are convinced that the Fed is going to be buying along the outer end of the curve. With support like that below the market, the path of least resistance is higher. Whether or not the Fed actually does such a thing is immaterial at this point – the very suggestion that they are going to do so is enough to actually accomplish their intentions. Doesn’t it amuse you how easily grown, “sophisticated” investors can be herded around by these pestilential central bankers? That crowd prides themselves on being able to decipher obtuse financial and economic signals unlike the rest of the ignorant peasants and dolts who constitute the mere working class. Yet it is this same smug and oftentimes arrogant crowd that are rounded up like witless sheep and sent off in the direction that their shepherd masters intend them to go. Oh well, it really doesn’t matter much as long as they can make money off of it so I suppose the image of being driven around like mindless idiots doesn’t particularly prove troublesome to them.

December gold deliveries continue with another 127 being issued and stopped this morning. That brings the total for the month to 13,170 or 1.317 million ounces. Warehouse supplies showed a sizeable drop yesterday which is nice to finally observe. Registered was down to 2.8 million ounces. Keep in mind that playing the paper gold game and expecting to beat the bullion banks at it is a fool’s dream. Unless the gold is removed and taken out of the warehouses, the Comex will never be a freely traded market. We know full well that the CFTC has been asleep at the wheel for a long time now so do not expect any help from that quarter. The only thing that the paper shorts fear and respect is a lack of physical metal –everything else is blithely and I might add, safely ignored. Hedge funds looking for a way to beat these parasites have the strategy laid out in front of them do so – the question is will they actually leave their black box algorithms long enough to think about this and implement it. Another Fifteen to Twenty thousand contracts taken and stopped would put an end to the bullion bank reign over the sand box. That is chump change in today’s markets especially when you consider that at one time the hedgies had well over 240,000 long positions early this year. The margin necessary to carry positions of such size is proof that the financial resources necessary to take delivery of the physical gold exists – the only question is whether or not the will do so does. The down side of things is that the hedgies have never proved to be resourceful or clever – how can they be when they have long ago delegated their thinking to their computers?

Many of you have no doubt seen the article about unprecedented gold demand in Europe – demand so great that the refiners in Switzerland cannot keep up with it. Reports like this, of which we have seen so many in recent weeks, just serve to underscore how completely disconnected from reality the Comex paper gold market has become. Gold bulls – are you listening….” Dan Norcini, More at JSMineset.com

“February Gold closed down 7.9 at 860.6. This was 10.2 up from the low and 12.4 off the high.

March Silver finished down 0.3 at 11.12, 0.23 off the high and 0.04 up from the low.

The gold market forged a rather wide trading range on Thursday, but the February gold contract was initially unable to forge a fresh new high for the move. In fact, by the time the Dollar recovered this morning gold prices were already in the midst of noted setback. Clearly the market was undermined by the recovery in the Dollar but in retrospect seeing the weak US data and seeing fresh new contract lows in the energy complex seemed to rekindle some deflationary fears again. Perhaps the gold market was simply overbought and in need of a corrective setback as the overall level of flight to quality anxiety seems to remain pretty high.

The silver market initially tried to extend on the upside but apparently the market was unable to add to the gains forged early in the week. Clearly the silver market was undermined by the reversal in the Dollar but as in the gold market, the silver market might be somewhat overbought from a technical perspective. Since the early December lows, the March silver contract has managed a low to high run up this week of roughly $2.49 per ounce and that certainly hints at some measure of overbought status.”- The Hightower Report, Futures Analysis and Forecasting

Note: Change in Total Tonnes from yesterday’s data: SPDR added 6.12 tonnes to a new record high holding.

Anatolia’s (ANO.TO) assay results, Coeur’s (CDE) gold lease facility, Apex Silver’s (SIL) restructuring update, and International Minerals Corporation’s (IMZ.TO) year-end summary and plans for next year 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.

Metals Creek Resources Corp. announces high grade Platinum, Paladium and base metal results from its 100% Betts Cove Property - More
- December 18, 2008 | Item | E-mail

Houston Lake Mining Completes Phase II Drilling on the Dubenski Gold Property - More
- December 18, 2008 | Item | E-mail

Explor Acquires PG 101 Gold Property - More
- December 18, 2008 | Item | E-mail

Skyline Gold Corporation: Change in Officers - More
- December 18, 2008 | Item | E-mail

Lac Dore North Vanadium-Titanium Project Expansion - More
- December 18, 2008 | Item | E-mail

J.A.G. Mines Ltd. Extends the Aubelle Main Zone on Surface and Announces the Start of a 4000m Diamond Drill Program at the Belleterre Gold Property in Quebec - More
- December 18, 2008 | Item | E-mail

Eastmain News Release -- 17.99 g/t Au Over 4.7m In T Vein Series - More
- December 18, 2008 | Item | E-mail

Pele Mountain Announces Closing of Financing with MineralFields Group - More
- December 18, 2008 | Item | E-mail

Pacific North West Capital Corp. announces option to acquire the Nixon Fork gold mine in central Alaska - More
- December 18, 2008 | Item | E-mail

Golden Share Intersects Contact Zone in Pistol Lake Drilling Program - More
- December 18, 2008 | Item | E-mail

Duran Ventures Receives C Permit Which Allows for Drilling Until 2011 - More
- December 18, 2008 | Item | E-mail

Manicouagan Minerals Reports Additional Assay Results From HPM/Forgues-Including 7.2 Metres Grading 1.44% Nickel, 0.69% Copper and 736 ppm Cobalt - More
- December 18, 2008 | Item | E-mail

B2Gold Corp. Announces Additional Positive Exploration Drill Results From the Quebradona Gold Property in Colombia - More
- December 18, 2008 | Item | E-mail

Newly Discovered Upper Northeast Zone Extends Mineralization at Romios' Trek Property - More
- December 18, 2008 | Item | E-mail

Merrex Intersects 11.29% Zinc Lead Over 11.65 Metres at Jubilee in New Parallel Zone - More
- December 18, 2008 | Item | E-mail

Copper Canyon and Egoli Gold Amend Abo Option Agreement - More
- December 18, 2008 | Item | E-mail

MDN Provides Corporate Development Update - More
- December 18, 2008 | Item | E-mail

Adventure Gold Reports on a 3,800-Metre Drill Program on Lapaska - More
- December 18, 2008 | Item | E-mail

Corporate VP's mission in Mali, appointment of a new V-P Operations, restructuring, ongoing preliminary feasibility study, increased interest in N'Golopene - More
- December 18, 2008 | Item | E-mail

Apex Silver Provides an Update Regarding the Company's Restructuring and Financing Arrangements - "As announced on November 14, 2008, Apex Silver Mines Limited ("Apex Silver") entered into a non-binding letter of intent with Sumitomo Corporation ("Sumitomo") providing for the sale of Apex's interest in the San Cristobal mine to Sumitomo for a cash purchase price of $22.5 million, payable at the closing of the sale. Apex Silver would continue to manage the mine following the sale. Apex Silver and Sumitomo are continuing to negotiate definitive documentation related to this transaction. Upon completion of the sale, the holders of the Apex Silver $290.0 million in convertible notes would be entitled, under the existing terms of the notes, to redeem the notes for cash. The non-binding letter of intent is subject to significant conditions, including the restructuring of the Apex Silver convertible notes in a voluntary reorganization under chapter 11 of the U.S. Bankruptcy Code." More
- December 18, 2008 | Item | E-mail

Pure Nickel Exploration Update - More
- December 18, 2008 | Item | E-mail

Frontera board recommends rejection of Invecture bid - More
- December 18, 2008 | Item | E-mail

Shoreham Completes $510,000 Non-Brokered Flow-Through Financing at $0.15 per Share - More
- December 18, 2008 | Item | E-mail

Nevada Exploration Demonstrates Value of Groundwater Chemistry With Discovery of Gold-Bearing Hydrothermal System at Fletcher Junction - More
- December 18, 2008 | Item | E-mail

Anatolia drills 235 meters of 1.02 gpt gold and 0.42% copper at Karakartal copper-gold porphyry target - "Anatolia Minerals Development Limited ("Anatolia" or the "Company") (TSX:ANO - News) announces assay results for its 100% owned Karakartal copper-gold porphyry property in east-central Turkey. Karakartal is located approximately 15 km southeast of Anatolia's Copler Gold Project, which is currently under development." More
- December 18, 2008 | Item | E-mail

Alturas Defines Large Geophysical Targets Beneath Copper-Gold Anomalies at Its Sombrero Project, Peru - More
- December 18, 2008 | Item | E-mail

Royal Roads receives approval on warrant extension - More
- December 18, 2008 | Item | E-mail

Azimut and Silver Spruce report positive results at Hudson Bay, Quebec, with grades up to 3.01% U3O8 - More
- December 18, 2008 | Item | E-mail

San Anton Announces Results of 2008 Regional Exploration Program - More
- December 18, 2008 | Item | E-mail

East Delta Resources Announces Ni/Cu Plant Re-Organization and Upgrade - More
- December 18, 2008 | Item | E-mail

DIAGNOS Announces the Optioning of Four Properties in the Gaspesie Area to Colt Resources Inc.: Option and Service Contract Worth Up to $700 000 - More
- December 18, 2008 | Item | E-mail

Gitennes Exploration - TSX Listing Review - More
- December 18, 2008 | Item | E-mail

Ontex Adds More High Grade Gold to Brookbank - More
- December 18, 2008 | Item | E-mail

Chancery Resources Announces Plans to Commence Development at El Cafetal Gold Mine - More
- December 18, 2008 | Item | E-mail

Continental Precious Minerals Provides Corporate Update - More
- December 18, 2008 | Item | E-mail

Positive feasibility study for Etruscan's Agbaou Gold Project in Cte d'Ivoire - More
- December 18, 2008 | Item | E-mail

MacDonald Mines Acquires Major Interest in Nickel, PGM & Base Metal Property in the LaRonge District of Saskatchewan; Provides Drill Results - More
- December 18, 2008 | Item | E-mail

Frontera Copper Board of Directors Recommends Rejection of Unsolicited Offer From Invecture Group - More
- December 18, 2008 | Item | E-mail

Intrepid Mines Limited: Tujuh Bukit Project Zone A Resource Confirms Multi-Million Ounce Oxide Potential - More
- December 18, 2008 | Item | E-mail

International Minerals -- 2008 Review and 2009 Business Plans - "International Minerals Corporation (Toronto:IMZ.TO - News) (Swiss:IMZ.SW - News) ("the Company") reports a calendar year-end summary of its corporate and project activities during 2008 and its business plans for calendar year 2009." More
- December 18, 2008 | Item | E-mail

Coeur Further Enhances Its Liquidity Position - "Structured as a gold lease facility under which Coeur received proceeds of $20 million from the sale of 23,529 ounces of gold lent to it by MIC, the Company will then deliver these gold ounces to MIC over the next twelve months. Coeur currently produces gold as a by-product at its Rochester silver mine in Nevada and will produce a significant gold by-product at its Palmarejo silver project in Mexico, which is expected to begin production late next quarter. This amount of gold represents approximately 25% of the Company’s 2009 expected gold production. To secure its obligations, Coeur has pledged certain assets and cash flows." More
- December 18, 2008 | Item | E-mail

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