Gold Seeker Closing Report: Gold and Silver End Mixed While Stocks and Oil Fall

	Close	Gain/Loss
Gold	$929.15	+$5.25
Silver	$13.20	-$0.05
XAU	133.51	-0.53%
HUI	327.33	-0.53%
GDM	1006.68	-0.47%
JSE Gold	2242.40	+26.16
USD	80.72	+0.27
Euro	139.26	-0.57
Yen	105.51	+0.66
Oil	$62.93	-$1.12
10-Year	3.460%	-0.046
T-Bond	119.4375	+0.609375
Dow	8163.60	-1.94%
Nasdaq	1746.17	-2.31%
S&P	881.03	-1.97%

Gold fell slightly to $921.05 by late trade in Asia and rose to see a nearly 1% gain at $931.55 in London before it fell throughout the rest of the morning in New York, but it then spiked back higher in the last half hour of trade and ended near its earlier high with a gain of 0.57%. Silver climbed to $13.36 in London before it fell to see an over 1% loss at $13.09 in early afternoon New York trade, but it also shot back higher in the last minutes of trade and ended with a loss of just 0.38%.

Euro gold rose to about €666, platinum lost $5.50 to $1138, and copper fell nearly 4 cents to about $2.22.

Gold and silver equities traded mixed and near unchanged throughout the morning before they rose to see over 1% gains by mid-afternoon, but they then fell back off into the close and ended with slight losses on the day.

There were no major economic reports today. Tomorrow at 3PM brings Consumer Credit for May expected at -$8.8 billion.

Oil fell for the fifth day in a row and ended under $63 on a lowered forecast for US energy demand from the EIA.

The U.S. dollar index and treasuries rose to find modest gains after today’s $35 billion 3-year note auction went pretty well. “Today’s auction is the second of a record four this week totaling $73 billion. An investor class that includes foreign central banks bought 54 percent of the notes offered, more than the 43.8 percent at the last auction of the securities.”

The Dow, Nasdaq, and S&P fell on worries over second quarter earnings reports that start off with Alcoa tomorrow.

Among the big names making news in the market today were Lear, Boeing, ConocoPhillips, and GM.

The sinking crude oil market continues to undercut any strength in gold as it feeds into the deflation psychology which is not the least bit helpful to a higher gold price. As long as crude oil continues to move lower, gold will struggle as momentum based funds will move back out of the gold market while shorter term oriented hedgies will press the short side, nipping any rallies in the bud. If you notice on an intraday chart, as crude oil moved off its worst levels of the day, gold came back in force as did both the HUI and the XAU.

Technically gold is still stuck in a very broad consolidation pattern with a current bias towards weakness as it moves down to test the lower region of that nearly 5 month long range. Markets in consolidation modes no longer attract the attention of the movement chasing funds whereas they were once viewed as opportunities for long term players to build a large position size in anticipation of the eventual resolving of the pattern in one direction or the other. Nowadays, if it ain’t movin’, they go and find some newer and more exciting playground somewhere else. Gotta have the Mortal Kombat action or they get bored.

I am not sure what it is going to take to fire up some upside excitement in gold but seasonally summer is not a particularly strong month for the metal so as long as it can continue to attract buying as it nears the bottom of the broad price range that has contained it for this year, that should be considered friendly. We are going to need to see gold manage a close above $940 to at least push a few shorts out of the market. Much stronger resistance remains near the $960 level.

Until this deflation/inflation battle resolves itself, the markets will remain the domain of the one minute bar chart geeks and commenting on their price action is pretty much a day to day event with only the naïve suggesting than any one day’s price action is indicative of a new price trend. I really do not see anything beginning a solid trending move until the US Dollar begins a sustained trend downward.

I want to echo Jim’s comments on the hyperinflation front – it is the loss of confidence in a currency that results in a runaway in prices. Looking back throughout history, who is to say with pinpoint accuracy that it was this event or that event that was the exact cause of such an occurrence? Rather it was the culmination of a series of events that developed out of national monetary and/or fiscal policies, coupled with unexpected geopolitical events that led to the loss of confidence in a currency. Some random event then was the final straw that broke the proverbial camel’s back and created the final event.

I maintain that such will be the case with the US Dollar. The seeds for the loss of its place of supremacy among the nations of the earth have been planted and are now being quite effectively nurtured by the present policies of this nation. As long as confidence, that ethereal, vapor-like substance, can be maintained, hyperinflation will not occur. But once confidence is lost in a currency that has no backing other than the “full faith and credit of the government”, from whence does it draw its support in the minds of the people? What happens when a sufficient majority lose their trust or faith in the government’s ability to manage a crisis? Think it cannot happen here? Guess again! How many of you out there ever believed you would live long enough to see the state of California run completely out of money and issue IOU’s with which to pay its creditors? Does anyone who is reading this believe that the majority of the citizens in that state have any confidence or “trust” left in the political leaders of that state? If California were in the business of issuing a currency, I assure you that such a currency would now be in the scrap heap along with the rest of the contents of the dumpsters that can be found in that state. The only reason anyone is even accepting those IOU’s is because they believe that the feds are eventually going to bail them out.

What happens when the next state goes belly up and begins issuing its IOU’s? and the next, and then another? When does it stop? When you really sit down and think about it, our federal government is doing nothing different than the state of California – it is issuing IOU’s (excuse me – these go by the fancy name of US Treasury obligations). So what would happen in the event that the rest of the world, or the US citizens themselves, reach a point where they lose confidence in the ability of their political leaders to do the right thing and form the correct policies? Answer – a crisis of CONFIDENCE in the national currency. That is what contains the makings of a hyperinflationary event. It really is that simple. Once confidence is lost it cannot be regained without great changes occurring. In some cases, it can NEVER be regained. But one thing is as sure as the sun rising in the morning – people who hold that particular currency will begin to frantically look for something, anything, that they can find to purchase with that currency in order to get rid of it and obtain something of perceived value. That then feeds on itself and as more confidence is lost and further fear takes hold, human nature then moves into the panic phase in which rational thought disappears.

I surely do hope that for the sake of our nation and more importantly, for the sake of our children, that from some quarter, true statesmen will arise who will rightly discern the problem and take the drastic and necessary steps needed to right the ship of state and provide some sort of stability out of which normalcy can return. Only time will tell whether that will occur.

In the meantime, now you know why the present Administration and the monetary authorities have embarked upon what Jim refers to as MOPE. They know how elusive a thing this “confidence” is and they FEAR losing it and will do ANYTHING, and I do mean ANYTHING, in an attempt to preserve it.”- Dan Norcini, More at JSMineset.com

“August Gold closed up 4.8 at 929.1. This was 7.4 up from the low and 1.8 off the high.

September Silver finished down 0.018 at 13.22, 0.085 off the high and 0.125 up from the low.

The gold market did manage to rise above the prior session's high before falling back toward the prior session's low. Clearly a recovery in the Dollar served to knock some of the wind out of the bull's sails but it is also possible that slackening macro economic views and fears of increased speculation provided fresh selling impetus to gold early in the trade. However, seeing the gold market rebound in the early afternoon action in the face of large declines in soybeans and energy prices would seem to discount the anti speculative angle in gold.

After mounting an early morning run up, September silver prices fell back and at one point around mid session prices were down as much as 27 cents from the morning highs. Unfortunately for the bull camp in silver, silver prices were unable to recover in sync with gold prices which at times in the early afternoon action were modestly higher on the day. However, silver might have been undermined by sharp losses in certain grain markets and ongoing weakness in US equity prices. With the Dollar and Yen mostly favoring the upside during the trade Tuesday, it is also possible that silver was being limited by the currency impact.”- The Hightower Report, Futures Analysis and Forecasting

Note: Change in Total Tonnes from yesterday’s data: SPDR subtracted 0.36 tonnes, the LSE subtracted 0.29 tonnes, and the ASX subtracted 0.02 tonnes.

Note: Change in Total Tonnes from yesterday’s data: 0.61 tonnes were added to the trust.

Keegan’s (KGN) hired engineer, US Gold’s (UXG) drill results, Apollo Gold’s (AGT) NI43-101 report, Kirkland’s (KGI.TO) borehole obstruction, and quarterly results from Fortuna (FVI.V) and Great Panther (GPR.TO) 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.

Gold Resource Corporation Intercepts .75m of 31.7 g/t Gold and 2920 g/t Silver, Expanding the Arista Deposit Vein System - Yahoo! Finance - "Gold Resource Corporation (GRC) (OTC.BB:GORO - News) (Frankfurt:GIH - News) is pleased to report continued high-grade gold and silver mineralization from step-out drilling including .75 meters of 31.7 g/t (1.02 ounce/tonne) gold and 2920 g/t (93.88 ounce/tonne) silver. This intercept expands the La Arista deposit vein system as it remains open in both strike and depth." More
- July 07, 2009 | Item | E-mail

Xstrata Nickel's Raglan Mine Welcomes the Quebec Government's Mineral Strategy - More
- July 07, 2009 | Item | E-mail

Next Phase of Exploration Underway at Mountain Lake's Little River Gold Property - More
- July 07, 2009 | Item | E-mail

Century Mining Insider Exercises Conversion Rights And Warrants - More
- July 07, 2009 | Item | E-mail

Tribute Minerals Announces it has Closed the Acquisition of a 100% Interest in the McFaulds Lake "Ring Of Fire" Properties - More
- July 07, 2009 | Item | E-mail

SEMAFO reports Q2 2009 gold production of 64,100 ounces - More
- July 07, 2009 | Item | E-mail

Lake Shore Gold Confirms Deep Extensions of Gold Mineralization at Bell Creek and Vogel - More
- July 07, 2009 | Item | E-mail

Diamond Fields Renews Zambian License and Confirms Significant Copper Zinc Resource - More
- July 07, 2009 | Item | E-mail

Detour Gold Reports Encouraging Drill Results from its Footwall Zone Discovery at Detour Lake in Ontario - More
- July 07, 2009 | Item | E-mail

Tamerlane Receives Land Use Permit For Its Pine Point Project - More
- July 07, 2009 | Item | E-mail

Puma Holds 71.6% of the Little Stull Lake Gold Project, Manitoba - More
- July 07, 2009 | Item | E-mail

Kodiak Appoints New President, Chief Operating Officer - More
- July 07, 2009 | Item | E-mail

Temex intersects more high grade gold - Earn-in complete on Whitney Township Property, Timmins - More
- July 07, 2009 | Item | E-mail

Gold production up in June at Etruscan's Youga Mine - More
- July 07, 2009 | Item | E-mail

Merc Announces Start of Drilling at Damoti Lake Gold Project - More
- July 07, 2009 | Item | E-mail

NQ Exploration Inc.: Appointment of Alain Champoux as a Director and Signature of an Investor Relations Agreement - More
- July 07, 2009 | Item | E-mail

Osisko Announces Agreement in Principle for C$75 M Financing - More
- July 07, 2009 | Item | E-mail

Cadillac Issues Update on Spanish Joint Venture and Announces Director Change - More
- July 07, 2009 | Item | E-mail

Universal Uranium to Acquire Nevada Gold Property - More
- July 07, 2009 | Item | E-mail

Energy Fuels Earns Unanimous Approval of Special Use Permit for Pinon Ridge Mill from Montrose County Planning Commission - More
- July 07, 2009 | Item | E-mail

Surface samples return up to 492.6 g/t (14.37 oz/T) gold from the Block A property - More
- July 07, 2009 | Item | E-mail

Roxmark plans to explore Leitch-Sand River Gold Mine, once Canada's richest - More
- July 07, 2009 | Item | E-mail

Benton's surface samples return up to 492.6 g/t (14.37 oz/T) gold on the Block A Property - More
- July 07, 2009 | Item | E-mail

Canadian Mining Releases June 2009 Raquel 3 Interpretation Addendum - More
- July 07, 2009 | Item | E-mail

Trilliant Exploration Reports Gold Mining Revenue Estimates From Operations - More
- July 07, 2009 | Item | E-mail

Cambodian Company Awarded Elray Drilling Contract - More
- July 07, 2009 | Item | E-mail

Dynasty Welcomes Ecuador Vice Minister of Mines to Its Zaruma Gold Project - More
- July 07, 2009 | Item | E-mail

Majescor and SACG Report a 10 km-long Copper-Mineralized Corridor on the SOMINE Property in Haiti - More
- July 07, 2009 | Item | E-mail

Colorado Goldfields' Pride of the West Mill Moves Closer to Production Start Date - More
- July 07, 2009 | Item | E-mail

Bonanza Goldfields announce BRB property overview and potential - More
- July 07, 2009 | Item | E-mail

Uranium Star Announces Board Appointment to Strengthen the Company's Advancement of the Green Giant Vanadium Project - More
- July 07, 2009 | Item | E-mail

Thundermin and Cornerstone Announce a Significant NI 43-101 Mineral Resource for the Little Deer Copper Deposit, Springdale Area, Newfoundland - More
- July 07, 2009 | Item | E-mail

Alix and Cloudbreak to Combine Yukon Properties and Jointly Explore - More
- July 07, 2009 | Item | E-mail

Gold Resource Corporation Intercepts .75m of 31.7 g/t Gold and 2920 g/t Silver, Expanding the Arista Deposit Vein System - More
- July 07, 2009 | Item | E-mail

Silverado Engages D&D Securities Company - More
- July 07, 2009 | Item | E-mail

Douglas Lake Minerals Inc. Appoints New Board Member and Executive Officers - More
- July 07, 2009 | Item | E-mail

Infinito Draws Additional $1,500,000 in Convertible Debt - More
- July 07, 2009 | Item | E-mail

Vale Plans to Offer Two Series of Mandatorily Convertible Notes - More
- July 07, 2009 | Item | E-mail

Mineral Hill Industries Ltd. - Annual General Meeting - More
- July 07, 2009 | Item | E-mail

Lundin Mining Completes Restructure of Credit Facility - More
- July 07, 2009 | Item | E-mail

Rocmec Mining Inc. Completes Third Tranche of a Brokered Private Placement - More
- July 07, 2009 | Item | E-mail

Coastal Pacifc Mining Corp: McNeil Gold Property Believed to Have "Big Picture" Potential - More
- July 07, 2009 | Item | E-mail

Uranium Bay to Proceed With Equity Private Placement to Finance the Start of the Corporation's Exploration Initiatives - More
- July 07, 2009 | Item | E-mail

Solitaire Minerals Corp. "Block C" Properties Are Contiguous With Recent Denison Mines Phoenix Discovery - More
- July 07, 2009 | Item | E-mail

Uranium Hunter Looks To Expand Gold Reserve - More
- July 07, 2009 | Item | E-mail

Keegan Hires Engineer to Lead Esaase Gold Project Development - "Keegan Resources Inc. ("Keegan") (TSX:KGN - News)(AMEX:KGN - News) is pleased to announce that Maurice Tagami, P.Eng has joined the Company to be its Vice President, Project Development. Mr. Tagami has a degree from the University of British Columbia in metallurgical engineering, is a registered professional engineer in the province of British Columbia and has over 28 years experience in mine development and operations." More
- July 07, 2009 | Item | E-mail

Fortuna Reports Another Record Breaking Quarter; Silver Production Up 22% Over First Quarter 2009 - "Another record breaking quarter at the Caylloma Mine in Peru puts Fortuna on track to exceed the Company's forecast of 1.6 million ounces of pure silver for 2009. Silver accounted for 48% of revenue in the first quarter of the year and we expect our leverage to silver to remain at this level for the second quarter. Management continues to focus on sustaining growth and on the advancement of our San Jose Ag-Au Project in Mexico into construction. Once in production, San Jose will catapult Fortuna to the ranks of mid-tier silver producers." More
- July 07, 2009 | Item | E-mail

Great Panther Continues Record-Setting Growth With Q2 Production - "GREAT PANTHER RESOURCES LIMITED (TSX:GPR - News) (the "Company") is pleased to report production results for the second quarter of 2009, including record metal production, some of the best metallurgical results to date, and record quarterly silver production from the Topia mine." More
- July 07, 2009 | Item | E-mail

US Gold's El Gallo Project Continues to Expand 7.9 opt Silver Over 179 Feet Including 23.3 opt Silver Over 30 Feet! - "US GOLD CORPORATION (NYSE Amex:UXG)(TSX:UXG) is pleased to announce results from six additional core holes (Table 1 & Figure 1) at the El Gallo project in Sinaloa State, Mexico. This core drilling has expanded the mineralization in two principal directions: 245 feet (ft) (75 meters (m)) to the northwest and 85 ft (25 m) to the southeast. The mineralization remains completely open and has grown to 1600 ft (485 meters) along strike. The most significant hole returned: 7.9 ounces of silver per ton (opt) (269.2 grams per tonne (gpt)) over 178.8 ft (54.5 m) including 23.3 opt Silver (800.1 gpt) over 30.2 ft (9.2 m)." More
- July 07, 2009 | Item | E-mail

Apollo Gold Announces Release of NI43-101 Report on Exploration at the Huizopa Project in Mexico - "Apollo Gold Corporation (“Apollo” or the “Company”) (TSX: APG - News)(NYSE Amex: AGT) is pleased to announce that the Company has released its Huizopa project report (the “Report”) written in compliance with disclosure and reporting requirements set forth in the Canadian Securities Administrator’s National Instrument 43-101, Companion 43-101CP and Form 43-101FI." More
- July 07, 2009 | Item | E-mail

Kirkland Lake Gold Inc.: Obstruction in Main Pastefill Borehole Impacts Gold Production - "Kirkland Lake Gold Inc. (the "Company") (TSX:KGI - News; AIM:KGI) reports that an unexpected obstruction blocked the pastefill borehole above Level 34 of its Kirkland Lake Mine on June 23, 2009. While efforts were made immediately to clear the obstruction, these efforts have so far been unsuccessful." More
- July 07, 2009 | Item | E-mail

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