Gold Seeker Closing Report: Gold and Silver Fall About 1% While Stocks Drop Roughly 3%

	Close	Gain/Loss
Gold	$915.35	-$7.05
Silver	$13.03	-$0.25
XAU	133.91	-1.64%
HUI	319.78	-1.72%
GDM	1002.31	-1.61%
JSE Gold	2896.16	+15.03
USD	85.67	+0.56
Euro	131.89	-1.01
Yen	102.85	+0.60
Oil	$48.41	-$3.97
10-Year	2.714%	-0.047
T-Bond	128.953125	+0.40625
Dow	7522.02	-3.27%
Nasdaq	1501.80	-2.81%
S&P	787.53	-3.48%

Gold fell as much as $13.55 to $908.85 by late trade in London before it rose to see a gain of $9.30 at $931.70 at about 10AM EST in New York, but it then fell back off into the close and ended with a loss of 0.76%. Silver saw slight gains in Asia at as high as $13.36 before it fell to as low as $12.92 in London and then rallied back higher in morning New York trade, but it also fell back off into the close and ended with a loss of 1.88%.

Euro gold closed at about €696, platinum lost $18 to $1108.50, and copper fell over 7 cents to about $1.76.

Gold and silver equities saw slight gains midmorning before they fell over 2% by about 2PM EST, but they then bounced back higher in the last two hours of trade and ended with only about 1.6% losses.

There were no major economic reports today. Tomorrow at 9AM EST brings the S&P/Case-Shiller Home Price Index expected at -18.6%. At 9:45 is Chicago PMI for March expected at 34.4, and at 10AM is Consumer Confidence for March expected at 28.0.

Oil fell over 7% while the U.S. dollar index and treasuries rose on worries over the automakers and banks that sent the Dow, Nasdaq, and S&P roughly 3% lower.

Among the big names making news in the market today were Peugeot, Lincoln, and GM.

The statement that "We are on a Road to Hell" did in fact state the position of the G20 even if cloaked in plausible deniability.

The Hell in this statement is a worldwide Weimar if the G 20 was to do what the Obama Administration’s finance guys wished for. America is headed to this Weimar Hell, but only North Americans seem not to know it.

“All I can say to this absurd drama that we are watching play out before us with the arrogant abuse of power by Washington, is that we are watching events transpire which will reduce our nation to the status of a third world power. This charade, in which the CEO of a major American corporation is forced out by a group of runamok politicians, is the result of what happens when American business wants to get in bed with the devil. What did they expect – roses and tiddly winks? The real truth of this matter is that Wagoner became the fall guy, the sacrificial lamb to placate the “angry mob”, so that Geithner and company can throw some more taxpayer money in the direction of GM and probably Chrysler. They realize that the angry mob must be distracted long enough in order to keep the money flowing to the bailout entities and can point to the scalp of Mr. Wagoner as proof of their “dedication and commitment to responsible oversight of the taxpayers’ money”. I suspect that the pols in D.C. are getting nervous watching the proliferation of TEA parties popping up all over the place.

Today was a “weird” day in terms of market price action across some of the various indicators that I like to watch. Bonds for example were sharply higher as the US equity markets broke down but they came sharply down from off their session highs as the buying just flat dried up. Where did the safe haven flow go to flowing??? If you ask me, the safe haven flow must be going into ammunition because it sure ain’t going into any market that I can see. Gold too, just like bonds, caught a strong bid which took prices over $20 off it session lows as safe haven buying kicked in, but then it completely fell out of bed as crude oil prices broke below the $2.00 lower level. Gold was moving higher initially even in the face of the strong dollar but the sellers just sat all over it at the Comex and that was the end of its brief flirtation with positive territory.

It is still working within that broad range defined by $960 topside and $900 bottomside with a very short term range between $940 and $920 in between that. It needs to get back above $920 right away to avoid drifting further down towards $900. It is still caught in a struggle between negative short term technical signals and longer term dollar debasement policies. Below $900 is Fibonacci support at the $890 level.

Gold had managed to recapture both the 650 level and the €700 level in terms of British Pounds and the Euro respectively at the London PM Fix. I have been watching price action around those two levels in addition to the Dollar price. I would prefer to see gold maintain its footing above both levels in order to feel more confident about its shorter-term prospects. Gold in Dollar terms will struggle to hold its gains if the 650 level in BP terms and the 700 level in Euro terms serve as a ceiling for gold rather than a floor.

We have end of the month positioning to deal with tomorrow (we might have seen some of that today) which is always a factor to contend with when looking at market price action in the commodity complexes. Also, April gold will be going into its delivery process so we are going to get a gauge of whether or not sufficient stoppers arise to unnerve the perma gold shorts. There are over 27,000 contracts still open in April as of Friday’s session. With the wave of selling that hit gold today, I would not be surprised to see that number down closer to 16,000 or so tomorrow. Maybe I will be pleasantly surprised however.

The mining share indices, the HUI and the XAU, initially followed gold higher and resisted the broad selling wave that swamped the broader equity markets but as the Comex paper gang beat up on the paper bullion price, they too succumbed to selling pressure and gave up the ghost. All I can say is that I would not want to share a fox hole in battle with some who make up the mining share bulls and I certainly would not trust them to watch my back! They have continually allowed the shorts to snatch victory out of the jaws of defeat time and time again. The candlestick chart is showing a short-term topping pattern emerging on the XAU. Bulls will need to dig in quickly and assert themselves or the bears will be able to target the 125 – 123 level on the XAU.

The Dollar continues to benefit from “at least it’s not the Euro” psychology. The Yen too is up again as we typically see whenever we get these so-called “safe haven” plays but I think the Yen is ridiculously overvalued as a result of all this buying. Japan’s economy is on life support but hey, what can one do in this day and age of “sophisticated trading strategies”? The commodity currencies, the Loonie, Aussie and Kiwi, are all sharply lower today as the commodity sector once again gets nailed on the heels of the move up in the Dollar. You are seeing the result of these computer algorithms used by the funds that target the Dollar’s price action in their buy and sell signals.

Unleaded gasoline prices fell a steep $.10 a gallon at one point during the session – at least consumers might get a bit of relief at the gas pump which is a bit of good news especially for folks up north who are already tired of winter and snow and waiting for spring to arrive, which incidentally appears to have lost its way as global cooling takes hold. Down South the grills were out in full force yesterday with the aroma of ribs, brisket and loins in the air! Don’t worry my northern pals, we ate enough for all of you up there in the frozen Klondike! I heard on good authority that some of my Cajun pals were spotted having a crawfish boil.”- Dan Norcini, More at JSMineset.com

“April Gold closed down 7.7 at 915.5. This was 4 up from the low and 17 off the high.

May Silver finished down 0.23 at 13.033, 0.282 off the high and 0.063 up from the low.

The June gold contract forged a series of wild gyrations during the session Monday with the market coming under early morning pressure, regaining its footing around mid morning and then failing again in the early afternoon trade. The bears seemed to have to worry about a number of themes with the soaring Dollar at the head of the lot. Also seemingly undermining the gold market and a host of physical commodity markets was a fear of a return to deflation or significant deflation. Apparently the renewed fears of major ongoing problems in the US auto sector has left the market fearful of more sustained slowing and that in turn might be pushing the prospect of inflation out into the future. In the end, the gold market was unable to garner the usual flight to quality support and that had to disappoint the gold bulls. While the market has periodically feared IMF gold sales, it is possible that the proximity to the upcoming G20 meeting gave central bank sales fears a fresh focus.

Like the gold market, the silver market came under early selling pressure before attempting to recover. However, early in the afternoon trade the silver market seemed to encounter another wave of selling that in part coincided with lingering weakness in the US equity markets. Clearly seeing oil and copper prices remain under moderate pressure prompted a number of physical commodity markets to sell off today, particularly those that were in some way lifted in the wake of the sustained March rally in US equities.”- The Hightower Report, Futures Analysis and Forecasting

Note: Change in Total Tonnes from last Friday’s (3-20-09) data: SPDR added 24.15 tonnes to a new record high holding and the LSE added 4.36 tonnes.

Note: Change in Total Tonnes from last Friday’s (3-20-09) data: 0.92 tonnes were added to the trust.

Note: Change in Total Tonnes from last Friday’s( 3-20-09) data: 237.37 tonnes were added to the trust.

Claude’s (CGR) shareholder rights plan, Rubicon’s (RBY) drill program, Richmont’s (RIC) announcement, Coeur’s (CDE) production startup, Oremex’s (ORM.V) advisory committee addition, and Sabina’s (SBB.V) Definitive Asset Purchase Agreement 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.

Firstgold Corp. Pours Gold From the Relief Canyon Mine - More
- March 30, 2009 | Item | E-mail

Vior Inc.: Press Release - More
- March 30, 2009 | Item | E-mail

Petaquilla Minerals Ltd. Closes US$40 Million Convertible Senior Secured Notes Financing and Reprices Warrants - More
- March 30, 2009 | Item | E-mail

Millstream Sets Terms of Financing - More
- March 30, 2009 | Item | E-mail

Greencastle Reports Fiscal 2008 Results - More
- March 30, 2009 | Item | E-mail

Timmins Gold Announces Closing of First Tranche of Non-Brokered Private Placement - More
- March 30, 2009 | Item | E-mail

Solex Resources receives metallurgical test results confirming recovery of uranium by heap leaching of Macusani ore - More
- March 30, 2009 | Item | E-mail

MDN Posts Record 2008 Net Earnings of $22.1 Million or $0.24 per Share - More
- March 30, 2009 | Item | E-mail

Creston Moly announces NI 43-101 Pre-Feasibility Study filed on Sedar - More
- March 30, 2009 | Item | E-mail

Crowflight Reports Results From Underground Drilling at Bucko - More
- March 30, 2009 | Item | E-mail

Claude Resources Inc. announces shareholder rights plan - "Claude Resources Inc. ("Claude") today announces that its board of directors (the "Board") has adopted a shareholder rights plan (the "Rights Plan") effective March 27, 2009. The purpose of the Rights Plan is to provide shareholders and the Board with adequate time to consider and evaluate any unsolicited take-over bid made for Claude's common shares, to provide the Board with adequate time to identify, develop and negotiate value-enhancing alternatives, and to encourage the fair treatment of shareholders in connection with any take-over bid. The Rights Plan was not adopted in response to an anticipated takeover-bid, but as a general planning measure." More
- March 30, 2009 | Item | E-mail

Rocmec Mining Enters Thermal Fragmentation Work Agreement With Fresnillo PLC - More
- March 30, 2009 | Item | E-mail

Hawk Announces Approval of Shares for Debt Settlement With Service Providers - More
- March 30, 2009 | Item | E-mail

Gold World Resources receives Business License for Hebei Ming Yu Mining Corporation Limited - More
- March 30, 2009 | Item | E-mail

NQ Exploration Inc.: Property Portfolio Update - More
- March 30, 2009 | Item | E-mail

Royal Roads revises loan amount due by Acadian Mining subsidiary, ScoZinc Limited - More
- March 30, 2009 | Item | E-mail

Network announces private placement - More
- March 30, 2009 | Item | E-mail

Colombia Goldfields Provides Fourth Quarter 2008 Exploration and Corporate Updates - More
- March 30, 2009 | Item | E-mail

Lundin Mining Announces Year End 2008 Reserve and Resource Estimate - More
- March 30, 2009 | Item | E-mail

Ivernia Provides Further Update on Financing Arrangements - More
- March 30, 2009 | Item | E-mail

Drill program underway at Blue Nose Project - More
- March 30, 2009 | Item | E-mail

Redcorp Announces Filing of Financial Statements Delayed by CCAA Restructuring - More
- March 30, 2009 | Item | E-mail

Shoreham Resources Ltd.: Black Banana Returns Assays Up to 281.7 g/t Au (8.2 oz/t) From Vein Systems - More
- March 30, 2009 | Item | E-mail

Fortune Minerals NICO Environmental Assessment update - More
- March 30, 2009 | Item | E-mail

TVI Pacific completes first shipment of copper concentrate from Canatuan Mine - More
- March 30, 2009 | Item | E-mail

Augusta Announces $5 Million Private Placement - More
- March 30, 2009 | Item | E-mail

Ventana Announces $6 Million Private Placement - More
- March 30, 2009 | Item | E-mail

High River Gold Provides Update on Its Financial Status and Takeover/Financing Discussions With Severstal Resources, and Reports on Change to Its Board - More
- March 30, 2009 | Item | E-mail

Dynacor: Record net earnings of $1.6M for fiscal 2008 ($0.05 per share) - More
- March 30, 2009 | Item | E-mail

Energy Fuels and Magnum Uranium Announce Merger Agreement - More
- March 30, 2009 | Item | E-mail

Dundee Precious Metals Reaches Agreement to Sell its Back River Project in Nunavut to Sabina Silver Corporation - More
- March 30, 2009 | Item | E-mail

CityView Announces Drill Rig Supplier for Cachoeiras and Longonjo - More
- March 30, 2009 | Item | E-mail

2008 Write Downs Result in $389 Million Loss for FNX - More
- March 30, 2009 | Item | E-mail

GoldQuest Acquires Spanish Lead-Zinc-Silver Project - More
- March 30, 2009 | Item | E-mail

Consolidated Thompson Announces US$240 Million Strategic Investment from Wuhan Iron and Steel Group - More
- March 30, 2009 | Item | E-mail

Coeur Announces Production Startup and First Pour at New Palmarejo Silver and Gold Mine - "Coeur d’Alene Mines Corporation (NYSE:CDE - News) (TSX:CDM - News) (ASX:CXC - News) announced today that it has started producing silver and gold at its new 100%-owned Palmarejo mine in northern Mexico, where the first gold/silver doré was poured Saturday evening." More
- March 30, 2009 | Item | E-mail

Rubicon Announces $25 million Expanded 12 Month Drill Program F2 Gold Zone, Phoenix Gold Project, Red Lake Ontario - "Rubicon Minerals Corporation (RMX.TSX: RBY.NYSE Amex) is pleased to announce that its Board of Directors have approved an expanded exploration program, to include a minimum of 80,000 metres (262,000 feet) of diamond drilling at its flagship Phoenix Gold Project, located in the heart of the prolific Red Lake Gold District. The 12-month, accelerated and expanded program has been designed in response to continuing excellent gold intercepts from the F2 Gold Zone to test the extent of the gold system well beyond the core area drilled to date (see news releases from March 12, 2008, onwards for drill results)." More
- March 30, 2009 | Item | E-mail

Richard J. Hall Joins Oremex Advisory Committee - "Mr. Hall has over 35 years of mining exploration and development experience. He most recently served as President and Chief Executive Officer of Metallica Resources Inc., a publicly-traded mining company listed on the TSX and on the AMEX. During his time at Metallica, he was responsible for the financing, construction and commissioning of the Cerro San Pedro mine in Mexico, currently forecasted to produce 80,000 - 100,000 ounces of gold and 2.25 million ounces of silver annually over a 10 year mine life." More
- March 30, 2009 | Item | E-mail

Richmont Mines Inc.: Announcement - "It is with great sadness that Richmont Mines Inc. ("Richmont") (Toronto:RIC.TO - News)(NYSE Amex: RIC)(AMEX:RIC - News), announces that Mr. Jean-Guy Rivard, founder and Chairman of the Board of Directors died suddenly in his vacation home on Saturday, March 28, 2009 in the morning. He was 75 years old." More
- March 30, 2009 | Item | E-mail

Sabina Silver Enters Into Agreement to Purchase Back River Assets From Dundee Precious Metals to Create Premier Northern Canada Advanced Exploration Company - "Sabina Silver Corporation (CDNX:SBB.V - News) announced today that it has entered into a Definitive Asset Purchase Agreement (the "Agreement") to purchase the Back River and Wishbone properties in Nunavut, Canada (collectively known as the Back River Assets) from Dundee Precious Metals Inc. ("DPM")." More
- March 30, 2009 | Item | E-mail

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