Gold Seeker Weekly Wrap-Up: Gold and Silver Gain Nearly 3% and 5% on the Week

	Close	Gain/Loss	On Week
Gold	$957.80	+$7.25	+2.99%
Silver	$14.65	+$0.22	+4.79%
XAU	151.40	+1.01%	+10.68%
HUI	379.15	+1.47%	+10.89%
GDM	1156.91	+1.43%	+11.63%
JSE Gold	2669.64	+116.45	+0.42%
USD	80.03	-0.52	-3.54%
Euro	140.01	+0.99	+3.76%
Yen	105.41	-0.56	+0.29%
Oil	$61.67	+$0.62	+9.46%
10-Year	3.448%	+0.095	+10.41%
Bond	119.3125	-1.015625	-2.94%
Dow	8277.32	-0.18%	+0.10%
Nasdaq	1692.01	-0.19%	+0.71%
S&P	887.00	-0.15%	+0.47%

Gold remained near unchanged in Asia and climbed higher in London to as high as $961.50 in early New York trade before it fell back off a bit into the close, but it still ended with a gain of 0.76%. Silver followed a similar pattern and ended near its session high of $14.81 with a gain of 1.5%.

Euro gold fell to about €683 on euro strength, platinum gained $9 to $1149.50, and copper rose nearly 5 cents to about $2.10.

Gold and silver equities rose about 2% at the open before they fell back off a bit in late trade, but they still ended with over 1% gains to close at new 8 and 9 month highs.

There were no major economic reports today. All of this week’s economic reports:

Next week’s economic highlights include the S&P/CaseShiller Home Price Index and Consumer Confidence on Tuesday, Existing Home Sales on Wednesday, Durable Goods Orders, Initial Jobless Claims, and New Home Sales on Thursday, and GDP, Chicago PMI, and Michigan Sentiment on Friday.

Oil climbed and the U.S. dollar index and treasuries fell while the Dow, Nasdaq, and S&P rebounded for most of trade on decent retailer results that raised hopes over the strength of the economy, but all three indices fell back off in the last minutes of trade and ended slightly lower on cautiousness heading into the long weekend.

Among the big names making news in the market Friday were BankUnited, AIG, and MasterCard.

“Gold has broken out of its long consolidation and looks set to take on $1,000 again.

This time of the year the gold market moved into the "summer Doldrums", but the last two years has seen this seasonality fade as investment demand knocked away this seasonality. With Indian buyers virtually absent from the international gold market since October 2008 until April this year we could have expected 'Doldrums’ during that time. Now their absence is unnoticed as investment demand took the reins of the gold market and looks like holding them. So expect those Trade Winds to blow during summer and make the gold market an exciting place to be?”- Julian D.W. Phillips, www.goldforecaster.com

While we are primarily a gold-oriented web site, I cannot omit from today’s commentary some remarks concerning the collapse in the long bond. Quite frankly, its weekly price chart has become a technical train wreck. It is less than a full point away from the 100 week moving average. Please note that I wrote, “100 week” and not “100 day”. The weekly chart provides us with the long term trend of a market and I must say, that this market’s price action terrifies me. Since October of 2007, the US long bond has traded just below the 100 week moving average only for a brief period during two separate months before finding buying support and rallying upward. On both occasions we did not get TWO CONSECUTIVE WEEKLY CLOSES BELOW THAT LEVEL. While the technical indicators indicate a market that is severely oversold, its downside momentum looks to be accelerating. This market bears very close scrutiny as a breakdown below this level that is unable to recapture support would indicate that the market has now finished completely with the deflation scenario and is focused on the upcoming and anticipated wave of inflation unleashed by the mass creation of nearly unlimited amounts of paper US Dollars. In such an environment, gold’s rise will be unstoppable, bullion banks’ selling notwithstanding.

I should also note that while come of the immediate demand/supply fundamentals of various commodity markets are not particularly bullish, the fact is that the big funds are looking past all of that and are rushing in to buy across the board based on inflation expectations. The grains in particular are attracting huge money flows from the investment funds with wheat now trading above $6.00 a bushel. Perhaps I am dating myself, but I am accustomed to seeing soft red wheat trading closer to $3.50 - $4.00. Then again, soybeans above $10.00 used to be considered expensive. They are trading closing to $12.00 with corn back above $4.00 once again. The laggard is natural gas which continues to be overwhelmed by its massive supply glut but one has to wonder how much longer that market is going to trade so cheaply with all the money flowing into the commodity sector. Simply put – our monetary authorities and the present Administration have unleashed the forces that will usher in the downfall of the US Dollar and set in motion the advent of a severe hyperinflationary event. I keep waiting for some sort of official sector gimmickry to attempt to stem the freefall in the US Dollar but it would seem by their absence that they have no problems with the weaker Dollar. As a matter of fact, they are probably secretly welcoming it in the hopes of gaining some competitive advantage on the export market front.

The commodity currencies are on a tear north as is the Euro, the rise of which must no doubt be attracting the attention of the European monetary and business leaders who cannot be especially pleased seeing this once again. With the Euro back above 1.40, I suspect we are going to be hearing some noise from that sector soon. Then again, with traders focused on the plethora of dollars being printed into existence to fund the US bailout of everything and anything that moved, or no longer moves, what price level on the Euro/Dollar is appropriate? Who knows – maybe at some point, Euro/Dollar at 1.60 will look cheap… As it is, the Dollar is trading less than 80 points above its 100 week moving average. If that gives way, it is going to 76 for starters.

While as a long time holder of gold, I am of course pleased to see the price of the precious metal moving higher, I am also deeply disgusted by those charged with the stewardship of our national currency have done to it. This is our nation’s future we are talking about here and our very quality of life that is being ruined by these short sighted parasites.

Back to gold – looking at the price chart you can see that it knifed through the light resistance level shown there and now has a clear shot at the last line of defense for the bears near the $970 level. Should that level give way on a pit session closing basis, look for the upside move in gold to accelerate as funds will pile in and attempt to shove price back to the $1,000 level. Keep in mind what I have been saying for some time now, the inexorable and relentless rise in the Continuous Commodity Index (CCI) presents the gold bears with a formidable problem. It is difficult to shove the price of gold down for long when the entire commodity world is rising. When you throw in the fact that the Dollar has broken down technically as well as the long bond, it makes the gold price suppressors’ work even more difficult. My guess is that were it not for the holiday weekend and the bout of profit taking from shorter-term longs that surfaced in gold today, it would have made a run to $970. You can see the profit taking in the mining shares occurring judging by the move off their session peaks in both the HUI and the XAU.

If silver can trade in the after hours above $14.80, it stands a good chance of making a run at $16.00 It is fading a bit off its best levels during the pit session trade but is still above $14.60 which is a plus.”- Dan Norcini, More at JSMineset.com

As we speak, BOTH the dollar AND the Treasury Bond are badly breaking down, a very ominous sign as the U.S. creeps even closer toward hyperinflation.

Once this BS “green shoots” of recovery is once and for all invalidated as the propaganda it is, the market is going to realize that the two traditional “safe havens”, Treasury Bonds and the dollar (principally due to market manipulation) are in bonafide bear markets.

This will cause further rises in interest rates and declines in the dollar, driving trillions of investment funds into the tiny Precious Metals sector. Combine this with the massive (illegal) paper short position in gold and silver on the CRIMEX (sorry, COMEX) futures market in New York, and you are setting up for potentially the most explosive market move in HISTORY.

And again, this move will happen due to FEAR, not GREED, making it that much more potent. FEAR of individual investors of losing purchasing power, FEAR of institutional investors desperate to outperform in the one sector that is moving, and FEAR of sovereign governments watching the value of their massive dollar/U.S. Treasury reserves plummet.

Do you think the Chinese announcement last month that they have been accumulating gold aggressively since 2003 is a coincidence? Or that I switched my area of focus to the Precious Metals market in 2002, and have since spent hundreds and hundreds of ours toiling over it?

Who will YOU bet with, the Chinese government or the lying/thieving filth that runs the U.S. banking system/government and has helped to destroy many aspects of your lives?

“August Gold closed up 7.7 at 960.5. This was 4 up from the low and 4.1 off the high.

July Silver finished up 0.25 at 14.695, 0.165 off the high and 0.07 up from the low.

The gold market remained firm throughout the trade with only the pre-holiday conditions seemingly causing prices to fall back from their highs. However, the Dollar was definitively weaker and into another new low for the move and that gave the gold bulls a distinctly bullish spin from the currency arena. With the recovery currencies of the Pound and Canadian on a strong upward extension again Friday, it would not seem like all markets are fearful of an unending global recession and that seemed to boost gold. Certainly a measure of buyers of gold on Friday were flight to quality buyers off the credit rating argument, but some traders suggest that the global economy is getting beyond the threat of deflation and that is cause for longer term buying of gold.

The silver market managed another range up extension on Friday and managed the rally in the face of residual slowing concerns, disjointed energy price action and weakness in several physical commodity markets. However, with the silver market clearly on an upside breakout it would seem like the silver bulls were availing themselves of a series of bullish themes. Clearly the strength in gold, platinum and copper prices helped fan buying interest in silver but the persistent and ongoing slide in the Dollar simply gave the bull camp in silver a decisive hold on the trend.”- The Hightower Report, Futures Analysis and Forecasting

Silvermex’s (SMR.V) mine acquisition was the only big story in the gold and silver mining industry making headlines Friday.

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

Nomination of Robert Seguin as C2C Director - More
- May 22, 2009 | Item | E-mail

Latin American Minerals Intersects 1.27 Metres Averaging 45.30 gpt (1.55 opt) Gold, Including 0.48 Metres Averaging 111.15 gpt (3.81 opt) Gold - More
- May 22, 2009 | Item | E-mail

Shoreham Private Placement Correction - More
- May 22, 2009 | Item | E-mail

Grandview Gold and Mill City Gold Announce Discontinuation of Nevada Project; Results to Date Indicate Further Exploration Not in Best Interest of Shareholders - More
- May 22, 2009 | Item | E-mail

Soldi Ventures Inc.'s Qualifying Transaction - More
- May 22, 2009 | Item | E-mail

Klondike Gold Corp. Reevaluates Historic High-Grade Silver Sample From the Eng Property - More
- May 22, 2009 | Item | E-mail

Kola Mining Appoints CEO to Focus on Development of Gold Assets - More
- May 22, 2009 | Item | E-mail

Treasury Metals Completes Non-Brokered Financing - More
- May 22, 2009 | Item | E-mail

Cadiscor' Shareholders Vote in Favor of the Business Combination With North American Palladium - More
- May 22, 2009 | Item | E-mail

Blue Note Subsidiary Obtains Extension of Creditor Protection - More
- May 22, 2009 | Item | E-mail

African Copper Plc: Board Changes - More
- May 22, 2009 | Item | E-mail

Kinbauri Update on Legal Actions - More
- May 22, 2009 | Item | E-mail

Global Finishing, Inc.: Announcement - More
- May 22, 2009 | Item | E-mail

Hochschild Acquires Southwestern's 48% Shareholding in Zincore - More
- May 22, 2009 | Item | E-mail

First Uranium commences uranium production and provides production update for quarter ended March 31, 2009 - More
- May 22, 2009 | Item | E-mail

High River Gold Provides Update on Strategic Alternatives - More
- May 22, 2009 | Item | E-mail

Yukon-Nevada Gold Corp. announces new CEO and COO - More
- May 22, 2009 | Item | E-mail

Yukon-Nevada Gold Corp. - 2009 Annual General Meeting - More
- May 22, 2009 | Item | E-mail

Northland Grants Options to Executive Chairman and Directors - More
- May 22, 2009 | Item | E-mail

African Copper plc: Share Transfer Instructions - More
- May 22, 2009 | Item | E-mail

African Copper Plc: Issue of 676,570,500 New Ordinary Shares of 1p Each - More
- May 22, 2009 | Item | E-mail

Southwestern Resources Corp.: Completion of Arrangement With Hochschild Mining PLC - More
- May 22, 2009 | Item | E-mail

Mineral Deposits Limited: Appointment of Non-Executive Director - More
- May 22, 2009 | Item | E-mail

Quest Uranium to Issue Shares in Partial Payment of Debt - More
- May 22, 2009 | Item | E-mail

Silvermex Makes Strategic Acquisition of Neighbouring Rosario Silver Mine - "Silvermex Resources Ltd. (TSX VENTURE:SMR - News; the "Company" or "Silvermex") is pleased to announce it has entered into an agreement with Aurcana Corporation (TSX VENTURE:AUN - News; "Aurcana") to acquire a 100% interest in the silver -- gold -- lead -- zinc Rosario Property ("Rosario Property") located in south eastern Sinaloa State, Mexico. The Rosario Property consists of 18 concessions totaling approximately 8,515 hectares and is located approximately 94 kilometres southeast of Mazatlan. The property is strategically located within 2 kilometres of Silvermex's 1,250 hectare San Marcial Silver property." More
- May 22, 2009 | Item | E-mail

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