-- Posted 31 March, 2009 | | Source: SilverSeek.com

The Metals:

Gold climbed to as high as $924.52 by about 9AM EST in New York before it fell to as low as $911.35 to see a $4 loss by a little before 11AM EST, but it then rallied back higher into the close and ended near its earlier high with a gain of 0.79%.  Silver rose almost 2% to $13.262 at about 8:30AM before it dropped to as low as $12.60 in late morning trade, but it also rallied back higher into the close and ended with a loss of just 0.23%.

Euro gold remained at about €696, platinum gained $11 to $1119.50, and copper gained nearly 8 cents to about $1.84.

Gold and silver equities fell over 1% midmorning, but they then rallied back higher in afternoon trade and ended with almost 2% gains.

The Economy:

Tomorrow at 8:15AM EST is ADP Employment for March expected at -648,000 and at 10AM are Construction Spending for February expected at -1.6%, Pending Home Sales for February expected at -2.0%, and the ISM Index for March expected at 36.0.

The Markets:

Charts Courtesy of http://finance.yahoo.com/

Oil climbed back near $50 while the U.S. dollar index fell and treasuries rose along with the Dow, Nasdaq, and S&P as markets rebounded from yesterday’s notable losses on the last day of the first quarter.

Among the big names making news in the market today were Barclays, GM, Ford, and Sun-Times Media.

The Commentary:

“Dear CIGAs,

1. The change is not abrupt. It has been cooking for years.

2. Yesterday the change was set in cement as completed.

3. GM is only the first.

4. From now on rather than public corporate management looking to stockholders, their vision will be towards Washington from whom they will take their clues to act.

5. Finance, having taken over government, now has taken over public industry.

6. It does not matter how you define this in terms of ism.

7. The American Dream is dead.

8. The US dollar is dead.

9. Gold is your only lifeline because investments are over (see Monty’s comments on volatility). I mean lifeline in its most literal interpretation.”- Jim Sinclair, JSMineset.com

“Dear CIGAs,

Mining equity bulls are finally showing some mettle in today’s session and seem to be attempting to dig in their heels after yesterday’s poor performance in the HUI and the XAU. Both indices are currently trading near session highs although the broader equity indices are also higher today in contrast to yesterday’s selloff. Trying to get a firm read on the mining shares has become problematic at times because it is difficult to say whether they are just moving in sync with the overall equity markets or are a leading indicator for the bullion price. If paper is moving higher and the mining shares higher it does not tell us much. If paper was moving lower with the mining shares moving higher, then we would have some insight into the nature of the buying. Right now we are left guessing as to what it all means because day traders and scalpers (which is what the hedge funds are forcing all of us to become) are simply going with the order flow on any given day. No one really bothers to ask questions – they simply react.

The price action we are seeing dovetails with what Monty has written about volatility. Long term position trading is becoming extremely difficult not because there are price retracements in bull markets and such. There have always been price retracements. What has changed is the extent and the ferocity of the price retracements. Having witnessed more than a few trending markets over my trading career, the general pattern (in a bull market for example) is to see strong upside moves, followed by minor price retracements during which volume tends to fall off with volume increasing on the upside days. The hedge funds have pretty much ruined all of that.

Now we see days in which prices shoot sharply to the upside only to be followed by a price retracement the following day which can completely erase the entirety of the previous day’s gains and does so on huge volume. The result is that trend following trading systems and traders for that matter, are left confused, uncertain and nervous. This leads to a loss of conviction in which traders eagerly grasp at small profits and are wary of leaving large positions on for any length of time. The end result is extreme choppiness with many whipsawed back and forth not knowing whether to go long, sell short or jump off the window ledge. Many traders simply opt to sit on the sidelines or attempt to find calmer waters in some other market and hope to ply their trade there. Case in point – just look at a chart of the Japanese Yen since the beginning of this month. The price has swung wildly up and down with huge moves up and huge moves down only to basically end up exactly where it started at the end of February! Talk about a useless waste of time for a position trader! The more frequently this occurs, the worse the volatility is going to become because the stabilizing influence of the longer-term oriented position and value traders is absent to a great extent as the entire trading contingent morphs into some frenetic version of the pit scalper from days past.

Back to gold – it had a tight range but within that range it was quite active in today’s session. Up for a while, then down, then back up, etc. One of the factors that led to selling coming into the gold pit was the move down in crude oil which had been stronger overnight and early in the session only to then succumb to another bout of selling. That brought selling back into the gold pit and silver as well. Then crude bounced back off the worst levels and gold moved higher. Strength in the grains, notably the soybean market moving off a friendly Prospective Plantings report, brought a general bout of buying into assorted commodities but the weakness in crude also generated selling in some of the very same commodity complexes. The Dollar moving lower however reinforced commodity buying but as the Euro moved off its best levels and the Dollar moved off of its worst levels, the sellers appeared once again in the commodities markets. Then you have the copper market moving solidly higher reinforcing a friendly chart pattern and giving further credence to its predictive role as a leading economic indicator (Dr. Copper) and the picture becomes even more muddled.

The point in all this is that there are now so many factors feeding into commodity market price action that attempting to sort them all out is becoming quite the task. I think it safe to say that overall, the commodity markets have bottomed out but the thing creating volatility is traders/investors trying to gauge just how quickly they might move or what kind of bottom they have forged. Copper’s chart for instance is a nice, well rounded gradual bottom and not a “V” bottom which are always a bit more problematic to decipher. That creates a bit of a quandary for gold buyers – is copper signaling the worst of the economic slowdown is behind us and therefore the safe haven needs for gold has abated or is copper signaling that inflation fears are slowly coming to the forefront of investors’ minds and that gold needs to be bought as a hedge to protect the value of one’s holdings? Is the Dollar weakness a sign that the Fed’s dollar debauchment-inducing policies are coming to the forefront of traders’ mind or is it just a mild setback in the intermediate bullish trend? Have the US equity markets bottomed out? Has the bond market also topped out or are long term rates going to head lower reinforced by the Fed’s concerted efforts to shove them down by its announced purchased program? Questions abound and thus so does volatility. Longer term those who have read this site for years know where all of this is headed but it is the “short term” gyrations which can lead one to question their own sanity at times. My advice – drinks lots of cold beer and do so quite heavily! Seriously – the die is cast for the Dollar long term and gold long term but if you are having trouble weathering the huge price swings consider either becoming a bit more active in managing your portfolio or find a good quality money management firm to do that for you (let me put in a plug for Monty and his fine staff at Guild Investment).

Technically nothing has changed concerning gold – it is still range bound and managed to recapture the floor of the very tight $940 - $920 range after losing that support for a brief period yesterday. It its broader range, $960 still lurks on the topside as resistance and $900 as support on the bottom. Open interest barely moved yesterday and is sitting near the 370,000 level.

April gold experienced some very heavy deliveries and stoppers in its first delivery day today. AS a point of interest, back when there was a great deal of excitement surrounding the delivery process in December of last year, the first day of deliveries totaled an unusually large 8,600 contracts. Well guess what? April in its first day saw an even greater number of deliveries taken at 8,867 contracts stopped or a total of 886,700 ounces of gold. That is no small matter and is quite encouraging. We would need to see another 7,000 contracts or so taken over the rest of the delivery period to really rock the perma shorts’ world. Whether that will occur is anyone’s guess but it would certainly level the playing field at the Comex were the shorts to be served such notice that the longs intend to force the issue. 15,050 contracts remain open in April as of yesterday – if half of them were to stand for delivery things would indeed heat up. According to the Comex stats, there are 2.94 million ounces of registered gold in their approved warehouses.

Incidentally, the big seller was Deutsche Bank while Morgan and Bank of Nova Scotia were the two largest stoppers. Morgan has been stopping a lot of gold lately.

Today was both the end of the month and the end of the quarter so it is not wise to read too much into today’s price action as a large number of funds are closing out some of their positions to book profits in preparation for sending statements to clients. They always want to show a profit for the month and/or quarter when they can. Tomorrow’s price action will carry more weight from an analysis standpoint. If we get the funds moving in the same direction as many of the markets did today, that will reinforce either trend changes in some or new trends or more of the same. If the markets give back a lot of the gains or losses they put on today, that will be a sign that the funds have moved right back in again and are re-establishing many of the positions that they just lifted at quarter’s end.”- Dan Norcini, More at JSMineset.com

“April Gold closed up 7.1 at 922.6. This was 11 up from the low and 1.9 off the high.

May Silver finished down 0.048 at 12.985, 0.275 off the high and 0.415 up from the low.

After carving out a generally favorable upward bias in gold ahead of the US data flow, the June gold contract forged an extremely violent gyration shortly after the numbers. However, despite the mid morning pressure applied to gold prices, the market seemed to return to the bull posture early in the afternoon trade despite weakness in silver and crude oil prices. In other words, the gold market seemed to throw off the threat of slowing and the threat of deflation but it did not appear as if the trade was managing to embrace inflation. With TARP officials pointing out the magnitude of TARP funds already employed it is possible that renewed financial market turmoil was serving to rekindle classic flight to quality concerns. For the gold market to seemingly shake off news of slack Indian gold imports had to embolden the bull camp but seeing the Dollar generally under pressure might have made classic supply side issues less important to the trade.

The silver market generally showed a slightly positive upward track during the session Tuesday and managed that action in the face of weakness in a host of physical commodity markets. However, the Dollar was generally weaker throughout the trading session and that in conjunction with positive gold market leadership tried to give the silver bulls an assist but in the end the silver market ended up being the poorest performer within the metals complex.”- The Hightower Report, Futures Analysis and Forecasting

GATA Posts:

GoldSeek posts Fox News interview with GATA

Fox News interview with GATA is posted on Internet

Chavez seeks Arab support for oil-backed currency

Friends in Silver Valley reprint GATA's Wall St. Journal ad

Mints coin it as consumers scramble for gold

China, Argentina to conduct trade in Chinese currency

Ted Butler: The sting

Gene Arensberg: SLV exceeds its silver storage capacity

The Statistics:

As of close of business: 3/31/2009

Global Gold ETF Holdings

[WGC Sponsored ETF’s]

 Note: No change in Total Tonnes from yesterday’s data.

COMEX Gold Trust (IAU)

 Note: No change in Total Tonnes from yesterday’s data.

Silver Trust (SLV)

 Note: No change in Total Tonnes from yesterday’s data.

The Miners:

Gammon Gold’s (GRS) terminated discussions regarding the proposed acquisition of Capital Gold Corporation, Allied Nevada’s (ANV) updated resource estimate, Silver Standard’s (SSRI) closed over-allotment option, ECU Silver’s (ECU.TO) plant progress, Oremex’s (ORM.V) filed financial statements, and Silvermex’s (SMR.V) preliminary economic assessment were among the big stories in the gold and silver mining industry making headlines today.

WINNERS

LOSERS

Winners & Losers tracks NYSE and AMEX listed gold and silver mining stocks that trade over $1.

All of today's gold and silver stock news:

Crosshair and Target Announce Closing of Business Combination - More
- March 31, 2009 | Item | E-mail

Copper Fox Metals Inc. - First Quarter Results - More
- March 31, 2009 | Item | E-mail

Capital Gold Corporation Announces End of Merger Discussions with Gammon Gold - More
- March 31, 2009 | Item | E-mail

Moydow Announces New Director - More
- March 31, 2009 | Item | E-mail

Typhoon Intersects Gold on 17.5 Meters on Mc Donald's Showing and Reduces the Exercise Price if its Warrants - More
- March 31, 2009 | Item | E-mail

Forsys Update on Amendments To Plan of Arrangement - More
- March 31, 2009 | Item | E-mail

Melkior Logs 752 Metres Drill Core in Carscallen (West Timmins) - More
- March 31, 2009 | Item | E-mail

Palladon Ventures Ltd.: Concentrate Options - More
- March 31, 2009 | Item | E-mail

Avnel Gold Mining Limited (AVK: TSX) announces 2008 annual results - Period ended December 31, 2008 - More
- March 31, 2009 | Item | E-mail

Gammon Gold Announces Discussions Have Terminated Regarding Proposed Acquisition of Capital Gold - "Gammon Gold Inc. ("Gammon Gold") (NYSE: GRS, TSX: GAM) announces that discussions have terminated regarding the proposed acquisition of Capital Gold Corporation ("Capital Gold") (TSX: CGC, OTC Bulletin Board: CGLD). The proposed acquisition was previously announced in the joint press release of Gammon Gold and Capital Gold on March 12, 2009." More
- March 31, 2009 | Item | E-mail

Eaglecrest Announces the Completion of the First Tranche of the $1.5 Million Non-Brokered Private Placement - More
- March 31, 2009 | Item | E-mail

North Atlantic Resources Files Year End Audited Financial Statements and MD&A - More
- March 31, 2009 | Item | E-mail

Minera IRL Options to Acquire a 75% Interest in the La Falda Porphyry Gold Prospect Located in the Maricunga Gold Belt of Northern Chile - More
- March 31, 2009 | Item | E-mail

Corriente Resources Inc.: Negotiations Continuing for Potential Sale of the Company - More
- March 31, 2009 | Item | E-mail

Maya Gold & Silver Options Gold Property in Morocco - More
- March 31, 2009 | Item | E-mail

Diamond Frank Summarizes its 2008 Exploration Work and Reduces the Exercise Price of its Warrants - More
- March 31, 2009 | Item | E-mail

Silver Standard Announces Closing of Over-Allotment Option - "Silver Standard Resources Inc. (Toronto:SSO.TO - News)(NasdaqGM:SSRI - News) reports that the underwriters of its recent public offering (the "Offering") have completed the exercise of their over-allotment option and have purchased an additional 375,713 common shares at US$17.00 per share. The option was granted pursuant to the Offering of 5.45 million common shares, at an offering price of US$17.00 per share, which closed on February 27, 2009. The gross proceeds from the exercise of the over-allotment option were approximately US$6.4 million." More
- March 31, 2009 | Item | E-mail

Roxmark reports Hardrock Project drilling continues to intersect high grade gold - More
- March 31, 2009 | Item | E-mail

Lydian Completes Heap Leach Conceptual Study at the Amulsar Gold Discovery, Armenia - More
- March 31, 2009 | Item | E-mail

Lundin Mining Corporation: First Copper Produced at Tenke Fungurume - More
- March 31, 2009 | Item | E-mail

Latin American Minerals: Drill Program Underway at Paso Yobai Gold Project - More
- March 31, 2009 | Item | E-mail

Sage Gold's Lynx Cu-Ag-Au Project: Resource Estimate - More
- March 31, 2009 | Item | E-mail

Malaga Inc. reports its year-end financial results for 2008 - More
- March 31, 2009 | Item | E-mail

Premier hardrock drilling continues to intersect high grade gold - More
- March 31, 2009 | Item | E-mail

Soltera Mining Corp.: Geochemical Results Confirm and Increase Major Gold Anomalous Zones at El Torno, Argentina - More
- March 31, 2009 | Item | E-mail

Atna Resources Reports Year End and Fourth Quarter 2008 Results - More
- March 31, 2009 | Item | E-mail

Golden Goose announces management changes - More
- March 31, 2009 | Item | E-mail

Baffinland and Qikiqtani Inuit Association Sign MOU for the Proposed Mary River Project - More
- March 31, 2009 | Item | E-mail

American Creek Highlights Seabridge Resource Expansions on Kerr and Sulphurets Zones - More
- March 31, 2009 | Item | E-mail

Board of Directors of Southwestern Resources - More
- March 31, 2009 | Item | E-mail

Romarco Drills Haile With 4 Rigs - More
- March 31, 2009 | Item | E-mail

Chariot Resources Limited: Feasibility Study Update - More
- March 31, 2009 | Item | E-mail

Bannerman Announces Change of Company Secretary and Appointment of Alternate Director - More
- March 31, 2009 | Item | E-mail

Gladstone Pacific Nickel Ltd - Proposed merger agreement lapsed - More
- March 31, 2009 | Item | E-mail

Multi-Million Tonne Sand & Gravel Resource Overlays Anglo Swiss Resources' Kenville Gold Mine Property - More
- March 31, 2009 | Item | E-mail

Houston Lake Mining Raises $150,999 In A Non-Flow-Through Private Placement - More
- March 31, 2009 | Item | E-mail

Duluth Metals Geologic Model Targets Higher Grade Base & Precious Metal Zones in Nokomis Deposit - More
- March 31, 2009 | Item | E-mail

WTM Reports 8.86 g/t (0.26 oz/t) Gold Over 24.85 Metres (81.58 Feet) From Rusk Zone-Is History Being Repeated in Timmins, Ontario? - More
- March 31, 2009 | Item | E-mail

Lake Shore Gold Announces 19.55 g/t Over 6.00 Metres and Discovery of Second Mineralized Horizon in Porphyry at Thunder Creek - More
- March 31, 2009 | Item | E-mail

Capstone Reports Record Production & Earnings Following Business Combination With Sherwood - More
- March 31, 2009 | Item | E-mail

ECU Silver Updates on Progress of Oxide Plant - "On March 9th, we announced that we had completed the acquisition of the Plant and we immediately began re-assembly and re-tooling of the on-site equipment. We are happy to report that in just three weeks, our team in Mexico has successfully completed several important tasks, clearing the path towards a fully operational plant." More
- March 31, 2009 | Item | E-mail

Oremex Resources Inc. Files Fiscal 2008 Annual Financial Statements - "Fiscal 2008 was a very challenging year for the Company as it lost $1.6 million and consumed most of its cash. However, subsequent to year end the Company raised gross proceeds of $660,000 and with several new board, advisory and management team members is focused on continuing to develop its flagship Tejamen property." More
- March 31, 2009 | Item | E-mail

Silvermex Resources Initiates Preliminary Economic Assessment on Its San Marcial Silver Project - "Silvermex Resources Ltd. (TSX VENTURE:SMR - News) is pleased to announce that it has initiated preliminary economic assessment studies on its San Marcial silver project located 90 kilometres east of Mazatlan in Sinaloa, Mexico. The economic assessment will include metallurgical, processing, mining and infrastructure requirements for potential mining and milling operations. The assessment will also focus on defining the economic viability of the project and will take advantage of the existing underground infrastructure and define the near surface potential of the deposit." More
- March 31, 2009 | Item | E-mail

Allied Nevada Gold Corp.: Hycroft Measured & Indicated Resources Increase to 8.1 Million Ounces of Gold Equivalent - "Allied Nevada Gold Corp. ("Allied Nevada" or the "Company") (Toronto:ANV.TO - News)(AMEX:ANV - News)(NYSE Amex: ANV.A) announces an updated resource estimate with a significant increase to gold measured and indicated mineral resources and to silver measured, indicated and inferred mineral resources for the Company's Hycroft mine ("Hycroft") located near Winnemucca, Nevada." More
- March 31, 2009 | Item | E-mail

- Chris Mullen, Gold Seeker Report

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