Gold Seeker Closing Report: Gold and Silver End Slightly Higher

	Close	Gain/Loss
Gold	$892.15	+$1.35
Silver	$12.835	+$0.04
XAU	125.12	+1.11%
HUI	303.57	+1.51%
GDM	932.19	+1.19%
JSE Gold	2390.06	+11.44
USD	84.98	+0.27
Euro	132.23	-0.31
Yen	100.55	-0.57
Oil	$49.25	-$0.16
10-Year	2.759%	-0.027
T-Bond	127.9375	+0.28125
Dow	8029.62	+1.38%
Nasdaq	1626.80	+0.07%
S&P	852.06	+1.25%

Gold climbed $8.05 to $898.85 just before 8:30AM EST before it plummeted down to $885.75 as the CPI data was released, but it then rallied back higher for most of the rest of trade and ended with a gain of 0.15%. Silver fell $0.145 to $12.65 and then rose $0.145 to $12.94 in London before it fell back off in morning New York trade, but it then rallied back higher in the last two hours of trade and ended with a gain of 0.31%.

Euro gold rose to about €675, platinum gained $2.50 to $1212.50, and copper gained over 9 cents to about $2.21.

Gold and silver equities rose over 1% at the open before they fell back near unchanged midmorning, but they then rallied back higher into the close and ended with over 1% gains.

Report	For	Reading	Expected	Previous
CPI	Mar	-0.1%	0.1%	0.4%
Core CPI	Mar	0.2%	0.1%	0.2%
Empire Manufacturing	Apr	-14.65	-35.0	-38.2
Net Long-Term TIC Flows	Feb	$22.0B	$14.0B	-$36.8B
Capacity Utilization	Mar	69.3%	69.6%	70.3%
Industrial Production	Mar	-1.5%	-0.9%	-1.5%

The fed’s Beige Book said the economy contracted further, but that some expectations improved marginally.

“Industrial production is down 13.3% since the recession began in December 2007, the largest percentage decline since the end of World War II, when production of military equipment ground to a halt and production fell 35%.”

Tomorrow at 8:30AM EST brings Initial Jobless Claims for 4/11 expected at 658,000, Building Permits for March expected at 549,000, and Housing Starts expected at 540,000. At 10AM is the Philadelphia Fed manufacturing survey expected at -32.0.

Oil fell as crude inventories rose a much larger than expected 5.6 million barrels. Gasoline inventories fell 900,000 barrels and distillates fell 1.2 million barrels.

The U.S. dollar index and treasuries rose slightly on continued worries over the economy. The Dow, Nasdaq, and S&P rose on mostly decent earnings reports.

Among the big names making news in the market today were Intel, UBS, Fiat and Chrysler, Yahoo, Schwab, Progressive, GM, Cisco, and GE.

Today is TEA PARTY Day – get on out and support your fellow citizens who are fed up with the out of control spendthrift politicians in Washington D.C. and the death grip that the money masters have on our system. Last I heard there were over 500 parties taking place all across this nation today. This is about as grass roots as it gets and the chance to register your disgust with our current barons and baronesses. I wonder if Rick Santelli over at CNBC realizes what his off-the-cuff comments has wrought. Way to go Rick!

Gold is still in no man’s land with bulls unable to push it through overhead resistance above $910 and bears unable to break it down either. The result is a sort of stalemate. Dollar strength is weighing on gold with safe haven flows abruptly reversing only to reverse back only to reverse again as the insane volatility continues unabated.

You have to wonder if in the process of chewing each other to pieces and ripping each other to shreds, hedge funds have destroyed what little integrity is left in our markets. Imagine trying to hedge foreign currency risk if you are an exporter or importer with the wild swings and disconnected-from-reality forex markets! I have expressed this concern quite often over the last year but I am seriously questioning the viability of our futures markets as instruments of risk management for commercial end users and producers if this madness continues. I am getting reports from some commercials who can no longer handle the wild swings and the resulting margin calls on their hedges and have chosen to simply opt out of the futures markets altogether and are now using other methods to attempt to offset price risk. What are we going to have left if enough commercials end up following suit – a hedge fund casino formerly known as the commodity futures markets?

The Treasury International Capital Flows data was released this morning detailing the data for the month of February. It showed a mixed bag – when short term securities were included, the data showed an outflow of $97 billion, down from an even larger outflow in January of $146.8 billion; however, when only the long term securities were examined, the result was an inflow of $22 billion compared to an outflow of the same category in January of $36.8 billion.

There was a sizeable jump in Treasury buying to $21.6 billion compared to buying of $10.7 billion in January. China continues buying US Treasuries, protestations to the contrary with reported holdings moving up to $744.2 billion from the previous month’s $739.6 billion. Japan also increased holdings to $661.9 billion from $634.8 billion in January.

Corporate bonds apparently found favor as that category experienced inflows of $3.3 billion compared to selling in January amount to outflows of $8.3 billion.

Interestingly enough, US agency debt found buyers to the tune of $1.1 billion after outflows of $15.5 billion were reported in January. I wonder how long that is going to continue.

US equities however did not fare as well with foreigners selling $5.1 billion after buying $1.4 billion the previous month.

There was some chatter that the data was supportive to the Dollar and that was the reason for the greenback’s move higher today but I do not buy that line of reasoning. The Dollar is reacting to economic data releases that are more current in nature moving lower when risk appetite increases and moving higher when risk aversion increases. Just look at the Euro-Yen cross and you can see the appetite for risk or lack thereof.

If you want to see a disconnect from reality, take a look at the price chart of copper – it has nearly gone straight up for the last few months almost doubling in price since December. All of this is against the backdrop of lousy economic news even on days in which the data release for that day shows further stress ahead for the economy putting pressure on the equity markets. Doesn’t matter – copper keeps going straight up. I personally think DR. COPPER has become a victim of hedge fund machinations who are simply murdering some trapped shorts and are relying on Chinese buying of the metal to restock warehouses in conjunction with that government’s economic stimulus plan. If not, then according to its past history, we should expect a swift recovery in the global economy within the next few months. Do you buy that? I sure don’t. Think about how utterly stupid these markets have become – we have, on the same day, people rushing into the Dollar as a safe haven and a risk aversion play because they are fearful about another shoe to drop in the global economy yet at the same time we have DR. COPPER screaming higher sending all kinds of signals that the economy is on the mend and will shortly begin to see much increase in economic activity? If you can say DUH?, join the club…. Which one is it? So much for the efficient market theory – hedge funds have effectively killed that.”- Dan Norcini, More at JSMineset.com

1. The action of the dollar versus gold has caused many of you some degree of confusion. The many violent FOREX turns is a product of the most successful hedge funds growing in size where only one market can accommodate their bloated bodies - the FOREX market. There can be no other explanation for the euro bouncing five cents as often as a Mexican jumping bean.

As the dollar moves towards and below .8200, the inverse relationship between the US dollar and Gold will begin to reassert itself.

History will write about this period now as the death of the dollar, marking 2009 as when it occurred.

Who, two years ago, would have anticipated open discussions at a "G" meeting about replacement of the dollar as the reserve currency? If you had suggested that on financial TV, you would be labeled a fool.

The Chinese are decelerating their US Treasury instrument purchases which would have impacted rates if it were not for the Fed monetizing the US Treasury by stepping in where the Chinese are stepping out. Up to this week all the intelligencia argued the Chinese could not and would not do that.

2. The argument rages on between monetary inflation resulting in price inflation and a depression business condition in which few can understand how hyperinflation can occur. The fact that this is how every hyperinflation has occurred seems to not make it past the spin and simple incapacity to understand.

We have had two periods of hyperinflation in the USA. The first was the collapse of the currency, the Continental. The second was the collapse of the currency, the Confederate dollar. The third is in process now.

3. The argument goes on concerning commodity values, but what is not in focus is that all major commodities are dollar denominated in their major markets. The dollar will underwrite the next major bull phase in commodities.

4. In times of hyperinflation, gold generally has a stable value since a government printing money has less control of its supply.

Let’s give credit to the best of market timers, Martin Armstrong. He calls for the earliest gold turn on April 19th versus the latest point of turn in mid June. If it is June he sees this as indicative of $5000 gold.

I will stay with $1650 until we trade there in the not too distant future.”- Jim Sinclair, JSMineset.com

“June Gold closed up 1.5 at 893.5. This was 7.3 up from the low and 5.7 off the high.

May Silver finished up 0.035 at 12.8, 0.065 off the high and 0.12 up from the low.

After a very active morning trading session, the gold market seemed to settle into a trade that was close to the mid point. It did seem as if a higher Dollar and weak economic data served to undermine gold prices but it also seemed as if periodic rally attempts in the equity market served to favor the bull camp. In the end, some US economic data wasn't as bad as expected but there were also some signs of ongoing slowing that the trade couldn't ignore. Dialogue from the US Fed Beige book confirmed ongoing slowing but in some ways that report offered some hope for a tempering of the rate of slowing. Apparently the Treasury Capital Flows data wasn't a volatility event and some gold players might have been somewhat disappointed in the markets reaction to foreign investment data.

The silver market waffled around unchanged through the trading session and like the gold market, the data seemed to weigh on prices, while periodic rally attempts in the equity market seemed to provide a fleeting lift to silver prices. Not surprisingly the silver market was unable to consistently benefit from the residual strength in the copper and platinum markets but that correlation hasn't exactly been tight lately. In the end, seeing a generally higher Dollar, sloppy equity market action and slack US economic readings seemed to leave the silver market slightly weaker.”- The Hightower Report, Futures Analysis and Forecasting

Note: Change in Total Tonnes from yesterday’s data: The ASX added 0.65 tonnes.

A free, new stock report on Rubicon Minerals Corp. by Peter Zihlmann, Tanzanian Royalty’s (TRE) private placement, Fronteer’s (FRG) optioned property, NovaGold’s (NG) first quarter financial results, Rubicon’s (RBY) VP appointment, ITH’s (THM) study results, Taseko’s (TGB) closed public offering, Excellon’s (EXN.TO) completed private placement, SNS Silver’s (SNS.V) Mining Lease Agreement for the operation of the Sunshine Mine, and Fresnillo’s (FRES.UK) production 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.

KWG Resources Inc. obtains shareholder approval to issuance of additional units in connection with previously announced private placement with Cliffs Natural - More
- April 15, 2009 | Item | E-mail

Tanzanian Royalty Chairman Completes $1.5 Million Private Placement - "Tanzanian Royalty Exploration Corporation announces that the $1,500,000 private placement with Mr. James E. Sinclair announced April 10, 2009 has closed. Mr. Sinclair purchased 248,139 common shares at a purchase price of $6.045 per share." More
- April 15, 2009 | Item | E-mail

Roxmark reports high-grade gold intersects 16.86 g/t across 5.5 m at Tenacity Hardrock Project - More
- April 15, 2009 | Item | E-mail

Eagle Hill Advances to Gold & Precious Metal Company With the Acquisition of Fran Property, BC - More
- April 15, 2009 | Item | E-mail

GoldSpring Announces the Results of Six Exploration Drill Holes That Include a 30 Foot Interval Grading 0.209 Ounces Per Ton Gold on the Southern Extension - More
- April 15, 2009 | Item | E-mail

Azteca Gold Reports Progress on DDH-006 at Two Mile - More
- April 15, 2009 | Item | E-mail

UEX Completes $8.7 Million Private Placement - More
- April 15, 2009 | Item | E-mail

Revett Minerals Appoints New Chairman of the Board - More
- April 15, 2009 | Item | E-mail

Fronteer Options Out New Turkish Gold Property - "Fronteer Development Group Inc. ("Fronteer") (Toronto:FRG.TO - News)(AMEX:FRG - News)(NYSE Amex: FRG.A) is pleased to announce that it has signed an option agreement with Newmont Altin Madencilik Limited Sirketi ("Newmont"), a subsidiary of Newmont Mining Corporation (NYSE:NEM - News), to explore Yuntdag, a promising grass-roots gold property located in western Turkey and 100% owned by Fronteer." More
- April 15, 2009 | Item | E-mail

Ressources Appalaches Completes the Purchase of the Dufferin Mine - More
- April 15, 2009 | Item | E-mail

Intrepid NuStar Exchange Corporation to Redeem Exchangeable Shares on 30 April 2009 - More
- April 15, 2009 | Item | E-mail

Premier Hardrock Drilling intersects high grade gold at Tenacity 16.86g/t Au across 5.5m - More
- April 15, 2009 | Item | E-mail

Excellon Completes Final Tranche of Private Placement - "Excellon Resources Inc. (Toronto:EXN.TO - News) is pleased to announce that it has completed the final tranche of a best-efforts private placement financing (the "Offering"). Under the final tranche, Excellon sold 9,141,300 common shares for gross proceeds of approximately $1.73 million. The private placement is now complete, pursuant to which Excellon issued an aggregate 38,810,779 common shares for aggregate gross proceeds of approximately $7.37 million. Excellon now has 198,054,436 shares issued and outstanding." More
- April 15, 2009 | Item | E-mail

Cypress & Skyharbour Encounter Visible Gold in First Wedge Hole on Bruce Channel / Red Lake Project, NW Ontario - More
- April 15, 2009 | Item | E-mail

First Quantum Minerals Appoints Paul M. Brunner as Independent Director - More
- April 15, 2009 | Item | E-mail

SEMAFO reports Q1 2009 gold production of 57,600 ounces - More
- April 15, 2009 | Item | E-mail

Tombstone Exploration Corp. Reports Gold, Silver Assay Results From Rock Chip Samples - More
- April 15, 2009 | Item | E-mail

SearchGold Defines Several Mineralized Systems With Gold Grades of Up to 37.79 g/t Au in Burkina Faso - More
- April 15, 2009 | Item | E-mail

Dana Resources Acquires the Property "Infiernillo" - More
- April 15, 2009 | Item | E-mail

Latin American Minerals Initiates Independent Resource Estimate at Paso Yobai Gold Project, Paraguay - More
- April 15, 2009 | Item | E-mail

Yukon-Nevada Gold Corp. updates exploration drilling results for the Ketza River project - More
- April 15, 2009 | Item | E-mail

Apollo Solar Energy, Inc. Reports Full Year 2008 Financial Results - More
- April 15, 2009 | Item | E-mail

Drilling at Reed Lake Detects Highly Conductive Off-hole Anomalies - More
- April 15, 2009 | Item | E-mail

Excel Gold Mining Inc. Announces Major Leadership Management Changes - More
- April 15, 2009 | Item | E-mail

Anaconda Mining Announces Q3, 2009 Results - More
- April 15, 2009 | Item | E-mail

David Bent Joins Vena Resources as VP Exploration - More
- April 15, 2009 | Item | E-mail

RiskMetrics and Glass Lewis Recommend That Dynamite Shareholders Vote "For" the Merger of Avion and Dynamite - More
- April 15, 2009 | Item | E-mail

Encore Renaissance Resources Corp. Acquires Option on High Grade BC Gold Mine Property - More
- April 15, 2009 | Item | E-mail

New Dawn Receives Payment in U.S. Dollars For Two Gold Bars Exported to South Africa - More
- April 15, 2009 | Item | E-mail

Northland Resources Inc.: Iron Concentrate From Tapuli and Pellivuoma Exceeds Expectations - More
- April 15, 2009 | Item | E-mail

NovaGold First Quarter Financial Results and Project Update - "For the three-month period ended February 28, 2009, the Company reported a net loss of $28.5 million (or $0.20 basic and diluted loss per share) compared to net earnings of $24.2 million (or $0.23 and $0.22 basic and diluted, respectively, earnings per share) for the corresponding period in 2008. The $52.7 million reduction in earnings when comparing the first quarters of 2009 and 2008 is primarily due to the following:" More
- April 15, 2009 | Item | E-mail

Rubicon Minerals Announces Appointment of Vice President-Operations - "Rubicon Minerals Corporation (RMX.TSX: RBY.NYSE Amex) is pleased to announce the appointment of Claude Bouchard, P. Eng. to the newly-created position of Vice President-Operations. Mr. Bouchard has 25 years of mining experience in engineering, development, operations and mine management. He is a graduate of Laval University with a B.Sc. A in Mining Engineering and as a Professional Engineer has worked at gold, copper and nickel mines in Northern Quebec and Ontario." More
- April 15, 2009 | Item | E-mail

International Tower Hill's Livengood Project Returns 89% Gold Recovery From Recent Metallurgical Testwork - "International Tower Hill Mines Ltd. ("ITH" or the "Company") (CDNX:ITH.V - News)(AMEX:THM - News)(Frankfurt:IW9.F - News) is pleased to announce positive results from its ongoing metallurgical studies on the Livengood deposit, Alaska. The most recent results, performed by Kappes Cassiday & Associates of Reno, Nevada, focused on testing gold recovery enhancement." More
- April 15, 2009 | Item | E-mail

Taseko Announces Closing of Public Offering - "Taseko Mines Limited (TSX: TKO; NYSE Amex: TGB) (the "Company") announces that it has closed the previously announced "bought deal" short form prospectus offering (the "Offering") of 13,793,104 common shares at a price of $1.45 per common share (the "Offering Price") with a syndicate of underwriters (the "Underwriters")." More
- April 15, 2009 | Item | E-mail

SNS Silver Completes Lease Agreement for Sunshine Mine in Idaho - "SNS Silver Corp. (CDNX:SNS.V - News) has completed and signed a Mining Lease Agreement for the operation of the Sunshine Mine near Wallace, Idaho. An advisory team of eminent mining professionals recently completed an assessment of the property on SNS' behalf (infrastructure, geology, economics and exploration potential) which greatly assisted management in their decision to finalize the acquisition." More
- April 15, 2009 | Item | E-mail

Fresnillo silver production up 9% - "Silver miner Fresnillo said Wednesday that silver production in the first three months of 2009 rose 9% to 9.2 million ounces, while gold production fell 8% to 65,000 ounces. The group said cost saving initiatives introduced over the last few months means costs declined compared to the final quarter of 2008." More
- April 15, 2009 | Item | E-mail

- Would you like to receive the Free Daily Gold Seeker Report in your e-mail? Click here

Note: This article may be reproduced provided the article, in full, is used and mention to Gold-Seeker.com is given.

Disclosure: The owner, editor, writer and publisher and their associates are not responsible for errors or omissions. The author of this report is not a registered financial advisor. Readers should not view this material as offering investment related advice. Gold-Seeker.com has taken precautions to ensure accuracy of information provided. Information collected and presented are from what is perceived as reliable sources, but since the information source(s) are beyond Gold-Seeker.com’s control, no representation or guarantee is made that it is complete or accurate. The reader accepts information on the condition that errors or omissions shall not be made the basis for any claim, demand or cause for action. Past results are not necessarily indicative of future results. Any statements non-factual in nature constitute only current opinions, which are subject to change. Nothing contained herein constitutes a representation by the publisher, nor a solicitation for the purchase or sale of securities & therefore information, nor opinions expressed, shall be construed as a solicitation to buy or sell any stock, futures or options contract mentioned herein. Investors are advised to obtain the advice of a qualified financial & investment advisor before entering any financial transaction.