Gold Seeker Closing Report: Gold and Silver Fall Almost 3% and 5%

	Close	Gain/Loss
Gold	$871.45	-$24.70
Silver	$12.13	-$0.62
XAU	123.27	-3.36%
HUI	294.96	-4.06%
GDM	912.46	-4.37%
JSE Gold	2301.41	-143.72
USD	84.69	+0.52
Euro	134.09	-0.63
Yen	99.00	-0.65
Oil	$51.05	-$1.46
10-Year	2.939%	+0.032
T-Bond	126.078125	-0.90625
Dow	7975.85	-0.52%
Nasdaq	1606.71	-0.93%
S&P	835.48	-0.83%

Gold fell over 2.5% to under $874 in Asia before it rebounded back above $882 midday in London, but it then fell to a new low of $865.25 in New York and ended not all that far from that low with a loss of 2.76%. Silver fell over 3% in Asia before it rebounded to see a loss of just twenty cents in London, but it also fell to a new low of $12.09 in New York and ended near that low with a loss of 4.86%.

Euro gold fell to about €650, platinum lost $11 to $1142.50, and copper dropped over 4 cents from its five month high to about $1.96.

Gold and silver equities fell over 5% in the first half hour of trade before they rebounded slightly in afternoon trade, but they still ended with about 4% losses.

There were no major economic reports today. Tomorrow at 2PM brings Consumer Credit for February expected at -$1.5 billion.

Oil fell back near $51 on renewed worries over the economy and demand that supposedly pushed the U.S. dollar index higher on cash raising/“safe haven” buying.

Treasuries, however, did not benefit from said “safe haven” buying as continued worries over upcoming levels of massive supply continue to weigh down the debt market.

The Dow, Nasdaq, and S&P fell on downgrades and renewed worries over earnings as Geithner threatened more government intervention over the weekend and it became apparent that talks over what was supposed to be a huge deal between IBM and Sun Microsystems seem to have collapsed.

Among the big names making news in the market today were Ford, Sun and IBM, Sallie Mae, Toyota, and HSBC.

"A sale of 12.9 million ounces of gold as ‘probably the most viable’ option to ensure the long-term funding of the IMF. Proceeds would be used for an interest-bearing endowment."

12.9 million ounces of gold at $906 per ounce, as I write, is slightly less than $12.4 billion. The Chinese would buy $12.4 billion in gold with a telephone call.

How foolish the IMF and Gordon Brown have been in gold. Both sold to major buyers at historic lows in price. Brown sold at $248 and the IMF started their sales at $106 in the 70s.

Their sales at any amount will, as in the past, be an enduring monument to their lack of acumen in knowing the gold price.

Spinmeisters always tell the Sheeples when they cannot control something that the government favors that something.

This will reach Spiritual Spinmeister levels as the Hollow Jolly 2009 season arrives.

There has been a new term given to completely destroyed, absolutely valueless and always to be worthless OTC derivatives. These had previously been called "Permanently Impaired Assets."

The new name is OTTI Assets, which translates as "Other than Temporary Impairment Assets." These now under the new FASB rules will be carried as valued decided upon by the banks.

Sodom and Gomorrah at least enjoyed themselves in their drop into perdition. These criminals just count beans as they kill everybody.

The dollar was up today and that translates to everything commodity being down. Selling pressure was evident in nearly every single commodity futures market with only a bare few escaping the move out of those markets. Computer algorithms are what they are and have become a fact of market life. Right now, those algorithms are keying on the level of the Dollar and the level of the S&P. When the S&P moves lower, the Dollar moves higher and the computers then have orders flowing into the pits to sell commodities as “risk aversion” increases. When risk aversion drops off, as stocks move higher, the dollar then moves lower and commodity markets experience broad based buying. That old friend of ours, the Euro-Yen cross, continues to be a good harbinger of which way investor sentiment is leaning. Today it was lower which is another way of saying the investors were trying to avoid risk. In our brave new world, that means the “risky” asset known as gold (?) is a definite sell.

I mentioned last week that support at $880 in gold must hold or gold will move sharply down to test the $860 - $850 level. That is where we are headed as we came all the way down to $865 before a bit of a session bounce occurred. The bounce was not enough to take it back up above $885 so the bears are now in control of the paper gold market. Technicians will point to a short term topping formation which was confirmed by the loss of support at $880. If bulls do not immediately (and that means tomorrow) push prices back above $880, then the move down to $860-$850 will gather momentum as additional long side liquidation will take over.

You have support at that level centered around $852 (see the chart) and then below that near the $816 - $820 level. Seasonally, this is not a particularly strong time of the year for gold so we have that workingagainst it in addition to the bearish technicals. Gold would have to recapture the $930 level to convince the “sell the rally” trade to abandon their logic and flip around to buying dips.

Gold deliveries were ZERO today which means that the longs are no where near threatening any Comex default as we are constantly being told by various internet essays. The paper gold shorts are quite confident as they have little in the way of determined opposition that would threaten their complacency. Hedge funds who are determined to play the paper gold game against the bullion banks and employ momentum based strategies for the buy side will continue to lose money. It is really that simple.

To show you how effective the bullion bank short selling has been - open interest in gold, after bottoming out near 261,000 in December of last year, had been on a steady increase as gold prices moved off their lows and had reached to near the 390,000 level. It has now dropped nearly 40,000 contracts alone in the last 7 trading sessions and no doubt a substantial bit more than that after today’s debacle. The funds are getting flushed out once again with open interest now back at levels last seen in early February of this year. Another way of saying this - most of the buyers that had come into this market in the last two months were flushed out in 7 days with the bullion banks banking their paper profits thanks to the hapless longs.

I have given up on telling the hedge funds what they need to do to turn this loser’s game around (buy into the weakness and hold the contracts into delivery) but they will not change tactics so that is that. Gold will need India to rescue it.

Silver is even more peculiar than gold since it too is getting whalloped even in the face of three successive days of 2 million ounce out-movements from the Comex warehouses.

I am particularly confused by today’s price action across the gamut of markets because there was NO SAFE HAVEN that I could point to based on the price action. Equities got hit pretty hard today but bonds also went down. Crude oil was down and most of the grains were down. Copper was down after touching the magical $2.00 mark on Friday. If money was flowing into some sector for safety today, I sure as heck could not see which one. That is why the move higher in the Dollar is so opaque. Maybe people were buying US corporate debt; I am just not sure what they were doing other than sticking cash under their mattresses.

The HUI and the XAU, after only last week setting up bullish chart formations, have now completely broken down once again. Both look to be headed back down towards their March lows. Perhaps they can set up a sideways trade after moving down towards that level and uncovering some buying.”- Dan Norcini, More at JSMineset.com

“June Gold closed down 24.5 at 872.8. This was 7.8 up from the low and 9.6 off the high.

May Silver finished down 0.625 at 12.11, 0.325 off the high and 0.035 up from the low.

The gold market came under aggressive selling pressure even though the press was alive with disconcerting US financial sector forecasts. With several analysts laying out some very dire statements for the US banking system and others suggesting that recent accounting changes will offer little reprieve for financial companies, it would seem like a large portion of last week's optimism has been reversed. While some traders suggested that the kick off to the US corporate earnings cycle on Tuesday prompted the washout in the stock market, the gold bulls still had to be disappointed in the gold markets reaction to the events on Monday. With a clear recovery in the Dollar, the currency impact on gold prices was bearish but seeing June gold at times down almost $30 an ounce seemed to suggest that something more than simple currency pressure was at work.

Like the gold market, the silver market saw a big range down washout that thrust the May contract back down to the vicinity of the March lows. With the Dollar rejecting early weakness and forging a very impressive recovery bounce some traders assumed that currency market action was behind the major sell off in silver. However, seeing silver slide in the face of a rather sharp setback in equity prices and also seeing a rather sharp slide in a host of physical commodity prices, seemed to give off the impression that some of the selling in silver was the result of broad based deflationary type selling interest.”- The Hightower Report, Futures Analysis and Forecasting

Note: Change in Total Tonnes from yesterday’s data: SPDR subtracted 0.07 tonnes.

Royal Gold’s (RGLD) common stock offering and plans to acquire an interest in the gold production at the Andacollo mine from Teck Cominco (TCK), Taseko’s (TGB) copper production, Aquiline’s (AQI.TO) metallurgical testwork results, Silver Standard’s (SSRI) updated resource at San Agustin, and Pan American’s (PAAS) reported strike at Its Morococha Mine 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.

Avion Resources Grants Stock Options - More
- April 06, 2009 | Item | E-mail

Darnley Bay Resources-Private Placement Announcement - More
- April 06, 2009 | Item | E-mail

Goldcliff Resource Corporation: Drilling on the Bonanza Trench Area Confirms Strong Gold Values - More
- April 06, 2009 | Item | E-mail

Elray Resources, Inc. Provides Shareholder Update - More
- April 06, 2009 | Item | E-mail

Adanac Announces CCAA Protection Extension to July 3, 2009 - More
- April 06, 2009 | Item | E-mail

Mediterranean upgrades Yusufeli resource estimate - More
- April 06, 2009 | Item | E-mail

Tres-Or (Ghana) Limited Enters Into a Profit Sharing Agreement - More
- April 06, 2009 | Item | E-mail

Virginia to Receive its First Advance Payment of US$100,000 on the Eleonore Property - More
- April 06, 2009 | Item | E-mail

Goldcorp Declares Fourth Monthly Dividend Payment for 2009 - "GOLDCORP INC. (Toronto:G.TO - News)(NYSE:GG - News) is pleased to declare its fourth monthly dividend payment for 2009 of $0.015 per share. Shareholders of record at the close of business on Thursday, April 16, 2009 will be entitled to receive payment of this dividend on Friday, April 24, 2009." More
- April 06, 2009 | Item | E-mail

Beaufield's Net Cash Assets are $7,702,395 - More
- April 06, 2009 | Item | E-mail

Lake Victoria Mining Company Completes Definitive Agreement and Initiates Project Planning to Establish a Low Cost, High Grade Gold Mine at Kinyambwiga Project - More
- April 06, 2009 | Item | E-mail

Century Mining reports high grade gold intercepts from the addition of diamond drill holes into computer model - More
- April 06, 2009 | Item | E-mail

Trilliant Exploration Completes Installation of New Mill at Muluncay - More
- April 06, 2009 | Item | E-mail

U.S. Antimony Announces Record Revenues in 2008 - More
- April 06, 2009 | Item | E-mail

Denis Bouchard to Join the Board of Stellar - More
- April 06, 2009 | Item | E-mail

Eagle Plains/Prize Mining Execute Joint-Venture Agreement to Produce Gold at Yellowjacket - More
- April 06, 2009 | Item | E-mail

Argentex high-grade silver-gold drill results advance Pinguino towards 43-101 resource report, continue to expand property's overall mineral potential - More
- April 06, 2009 | Item | E-mail

Shoreham Acquires Guiana Shield Resources Inc.'s GOLD and PGM Portfolio - More
- April 06, 2009 | Item | E-mail

Adex Announces NI 43-101 Compliant "Indicated" Mineral Resource Estimate of 10.88 Million Tonnes for the North Zone's Tin-Indium-Zinc Deposit at Mount Pleasant - More
- April 06, 2009 | Item | E-mail

Dia Bras Exploration Inc.: New Discovery of Disseminated Copper Silver Mineralization as a Potential Open Pit Target at the Bolivar Mine - More
- April 06, 2009 | Item | E-mail

Farallon Announces Commercial Production at G-9 Mine - More
- April 06, 2009 | Item | E-mail

Malaga: US$5 million financing - More
- April 06, 2009 | Item | E-mail

HoneyBadger Employs New Airborne Technology on its Nevada Copper Property; Identifies Significant Potential for Copper Deposits; Expands Key Land Position - More
- April 06, 2009 | Item | E-mail

Paladin Energy Ltd: Kayelekera Uranium Project Second Fatality - More
- April 06, 2009 | Item | E-mail

New Dawn's Turk Mine Exports First Two Gold Bars to South Africa - More
- April 06, 2009 | Item | E-mail

CityView Announces Confirmation of Legal Titles of Mineral Concessions - More
- April 06, 2009 | Item | E-mail

Royal Gold Announces Common Stock Offering - "ROYAL GOLD, INC. (Nasdaq: RGLD - News; TSX: RGL - News), a leading precious metals royalty company, announced today that it intends to offer 6.5 million shares of its common stock pursuant to the Company's shelf registration statement filed with the Securities and Exchange Commission and a shelf prospectus filed with certain Canadian Securities regulatory authorities. The Company has granted the underwriters a 30-day option to purchase up to 975,000 additional shares of common stock to cover over-allotments, if any." More
- April 06, 2009 | Item | E-mail

Evolving Gold Grants Incentive Stock Options - More
- April 06, 2009 | Item | E-mail

Klondike Silver Confirms Widespread Copper-Gold-Silver Mineralization at Espiritu - More
- April 06, 2009 | Item | E-mail

VVC Exploration Grants Stock Options - More
- April 06, 2009 | Item | E-mail

Mazorro Closes Second Tranche of Private Placement Offering and Amends Cimarron Property Agreements - More
- April 06, 2009 | Item | E-mail

Aquiline Announces Preliminary Metallurgy for Navidad's Barite Hill and Valle Esperanza Zones: New Metallurgy Key to Expanding Throughput and Return - "Aquiline Resources Inc. (TSX:AQI - News; "Aquiline" or "the Company") today announced the results of a metallurgical testwork program completed at G&T Metallurgical Services Ltd. ("G&T") in Kamloops, B.C. The program tested one master composite and nine variability samples from each of the Valle Esperanza and Barite Hill zones of the Navidad silver deposit in Chubut Province, Argentina. The samples were prepared from assay rejects collected in the 74,595 metres of drilling in 2008." More
- April 06, 2009 | Item | E-mail

Royal Gold to Acquire Interest in the Gold Production from Teck Cominco's Andacollo Mine in Chile - "ROYAL GOLD, INC. ("Royal Gold") (Nasdaq: RGLD - News; TSX: RGL - News), a leading precious metals royalty company, announced that it has signed a definitive agreement with a subsidiary of Teck Cominco Limited ("Teck") (TSX: TCK.A - News and TCK.B - News; NYSE: TCK - News), to acquire an interest in the gold production at the Andacollo mine located in Chile ("Andacollo Transaction"). The purchase price consists of $100 million in cash and approximately 4.5 million shares of Royal Gold common stock, each subject to potential adjustments as described below." More
- April 06, 2009 | Item | E-mail

San Agustin's Resources Increase Silver Standard's Exposure to Silver and Gold - "Silver Standard Resources Inc. (Toronto:SSO.TO - News)(NasdaqGM:SSRI - News) is pleased to confirm significant gold and silver resources at the San Agustin property in Durango, Mexico. The resource is comprised of indicated gold resources totaling 1.59 million ounces and silver resources of 47.9 million ounces; and inferred gold resources totaling 1.06 million ounces and silver resources of 37.0 million ounces." More
- April 06, 2009 | Item | E-mail

Taseko Announces Quarterly Copper Production - "During the first quarter of 2009, the Gibraltar Mine produced nearly 20 million pounds of copper and 187 thousand pounds of molybdenum, representing a 70% increase to copper production over the same period in 2008. These quarterly production figures are in line with annual production guidance of 80 million pounds of copper and 800 thousand pounds of molybdenum." More
- April 06, 2009 | Item | E-mail

Cameco to accelerate Kintyre uranium project - More
- April 06, 2009 | Item | E-mail

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