Gold Seeker Closing Report: Gold and Silver Gain Nearly 1%

	Close	Gain/Loss
Gold	$916.10	+$6.85
Silver	$12.94	+$0.10
XAU	130.29	+0.77%
HUI	314.30	+0.42%
GDM	971.73	+0.57%
JSE Gold	2239.89	-21.34
USD	79.87	-0.79
Euro	140.30	+1.54
Yen	107.53	-0.11
Oil	$60.41	+$0.27
10-Year	3.413%	+0.124
T-Bond	119.34375	-1.90625
Dow	8183.17	+0.06%
Nasdaq	1752.55	+0.31%
S&P	882.68	+0.35%

Gold rose in Asia and London and saw an almost 1% gain coming into New York before it fell back to almost unchanged at $910 by about 10AM EST, but it then rallied back higher in the last three and a half hours of trade and ended near its new session high of $918.15 with a gain of 0.75%. Silver also saw decent gains in Asia and London before it fell to see an 8 cent loss at $12.76 by midmorning in New York, but it then rallied back higher into the close and ended near its high of $12.97 with a gain of 0.78%.

Euro gold fell to about €653, platinum gained $12.50 to $1106, and copper gained nearly 8 cents to about $2.23.

Gold and silver equities rose over 2% by late morning and almost 4% by early afternoon, but they then fell back off into the close and ended with less than 1% gains.

Report	For	Reading	Expected	Previous
Initial Claims	7/04	565K	603K	617K
Wholesale Inventories	May	-0.8%	-1.0%	-1.3%

Tomorrow at 8:30AM EST brings Import and Export Prices for June and the Trade Balance for May expected at -$30.0 billion. At 9:55 is Michigan Sentiment for July expected at 70.3.

Oil rose slightly for the first time in seven sessions after decent economic data suggested that energy demand may come back.

The U.S. dollar index fell markedly and the Pound rose as the “Bank of England cut the pace at which it pumps money into Britain's economy on Thursday after unexpectedly deciding not to expand its 125 billion pound ($204 billion) asset buying scheme, raising fears it may stop purchases completely.”

“Treasuries fell as the government’s 30-year bond auction drew less demand than the previous sale and traders speculated that the rally yesterday that pushed 10-year note yields down the most since March was too large to sustain.”

The Dow, Nasdaq, and S&P traded mostly slightly higher on decent earnings reports and economic data, but worries over where the economy is heading certainly kept any gains to a minimum.

Among the big names making news in the market today were Citigroup, Gap, Abercrombie, Validus, 3Com, Novartis, and Alcoa.

Up and down, back and forth, in and out; she loves me, she loves me not – after everyone and their mother ran to the hills yesterday avoiding “risk”, today they decided that they had forgotten their underwear and toothbrush and ran back to go and get them once again. RISK is back (at least for today) and when it is, down goes the Dollar and down goes the Yen, up goes the Euro and the Commodity currencies, up goes crude oil, and of course, up goes Ol’ Yeller, i.e. gold.

I have been wondering how much longer the Japanese monetary authorities were going to sit idly by as they watched the insanely schizophrenic speculators bidding their currency to Timbuktu. They finally issued a statement and that was enough to take some of the wind out of the Yen’s sails as any speculator, that does not respect the Bank of Japan has not been out to their woodshed as has yours truly. They can put some kind of “whoopin” on you. Even at that, the Dollar was so out of favor today that the Yen came well off its worst levels of the session.

With that in mind, crude oil did struggle to move higher even as the algorithms had the hedge funds buying it and I think that were it nor for crude’s inability to move beyond the session high of 61.62, gold would have taken out $620. For now, $620 is serving as near term resistance as it was support prior to yesterday’s sharp price decline in the gold price. Now it is attracting selling by fresh shorts moving in to take advantage of a rally to sell. In addition, short term oriented traders (the one minute bar chart geeks) are selling up near that level and trying to book a few dollars in profits.

It is definitely constructive to see gold bouncing from near the lower level of its broad consolidation range so perhaps end users are seeing “value” at these levels. The longer gold can maintain its footing above the $900 level, the more constructive as it will indicate that buyers are becoming “acclimatized” to the price near this region and are not experiencing sticker shock as is often the case when a market shoots sharply higher in a short time. I will feel better about its prospects however if it can close above $920. Until then, the sellers still have the short term technicals in their favor.

Just as gold is chopping around with a longer term upward bias, the Dollar too is chopping around in a consolidation pattern with a downward bias. It has fallen back below all of the major moving averages and after having managed to claw its way above the 10, 20 and 40 day in the previous two sessions. The question for the Dollar is whether or not it can hold above last week’s swing low. If not, its momentum should carry it down toward a test of 79 and more critically, the double bottom near 78.38. With the way these markets have been acting of late, trying to say with any degree of certainty what they might be doing from one day to the day is proving to be increasingly difficult but it generally takes some sort of catalyst to break a market out of a range or consolidation trade. What that might be is of course impossible to say but I suspect that if this chatter out of Washington about another stimulus package gathers any more support, that might be enough to kick the Dollar in the teeth and down through important chart levels. Maybe that is why we keep getting denials from certain officials that there will not be one (which makes me think they want to do just that). If the job situation does not begin to rapidly improve, those in control of the Congress know full well that they are going to get shellacked at the polls next year and as we all know, if there is one thing that a typical politician likes to do more than they love spending someone else’s money, it is staying in office so that they can spend other peoples’ money!

After yesterday’s big rush to safety, the bond market promptly puked and gave it all back. This is exactly what I am referring to when I state that today’s markets are broken and that hedge fund lunacy is destroying their integrity. The wild price swings are indicative of ZERO analysis being done by human beings. Rather what we are seeing is the result of a dog walking its master on the leash. Computers are running our markets and that is what scares the hell out of me. How does a bunch of on and off circuits sit down and do a studied analysis of a market from a fundamental basis? Answer – it does not.

Now you can see why Goldman Sachs has its panties all in a bind about their little ol’ computer program… that is what investing has boiled down to these days – who can get their order in front of the next guy and get it to the exchange the fastest… As a long time speculator I used to be proud of my profession but I must say that this new breed of fund managers and their quant boxes disgust me because it feeds into the notion that we are nothing but a bunch of low-life parasites who produce nothing useful. At least we once did a lot of analysis and provided liquidity and served as a conduit for commercials looking to offload risk. We have now been reduced to a bunch of leeches sucking money out of the hands of those who actually still believe that the markets serve as a price discovery mechanism. Trading/Investing has morphed into a hopped up video game on steroids.

That being said, long term analysis of the type that Monty provides for his customers is perhaps the only way to actually come out ahead unless you want to turn into a one minute bar chart geek. You study the macroeconomic situation, analyze the trend and then allow the lunacy of the hedge funds to provide an opportunity for you to position yourself according to your research. Then go and enjoy life for the gift that it is.

The bounce in the HUI and XAU is helpful but they both need to take out yesterday’s high to scare out the fresh short sellers. The HUI ran up to the 100 day moving average where sellers promptly appeared. IT needs to get beyond that to encourage the bulls. Just like the comex gold market, the bears have the near term advantage in the mining shares.”- Dan Norcini, More at JSMineset.com

Note: Change in Total Tonnes from yesterday’s data: SPDR subtracted 10.38 tonnes.

Ivanhoe’s (IVN) update on their Mongolian Investment Agreement and Kinross Gold’s (KGC) miner strike in

Chile

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.

Report on Osisko's Canadian Malartic Bape Hearings Is Made Public - More
- July 09, 2009 | Item | E-mail

International PBX Ventures Ltd.: Discovery of Large IOCG Target on Palo Negro-Hornitos Properties - More
- July 09, 2009 | Item | E-mail

Globex-Flow-Through Financing - More
- July 09, 2009 | Item | E-mail

Bonaventure Enterprises Inc.: Resignation and Appointment of Officer and Director - More
- July 09, 2009 | Item | E-mail

International Kirkland Minerals Inc. ("IKI") Announces a Company Update - More
- July 09, 2009 | Item | E-mail

Orvana Provides Drill Program Update, Historical Estimates, and New Metallurgical Results for Copperwood Project, Michigan - More
- July 09, 2009 | Item | E-mail

Cariboo Rose Resources Issues Carruthers Pass Property Update - More
- July 09, 2009 | Item | E-mail

Queenston Reports 9.4 g/t Au with 0.6% Cu over 37.3 m at Upper Beaver - More
- July 09, 2009 | Item | E-mail

Golden Peaks Resources Ltd. - Additional 10 km of New Gold Mineralized Structures Identified - More
- July 09, 2009 | Item | E-mail

Lake Victoria Mining Company and Kilimanjaro Mining Company Execute Share Exchange Agreement - More
- July 09, 2009 | Item | E-mail

Golden Eagle Files Claims Against Yukon-Nevada, Queenstake USA and Queenstake Canada for $40 Million Lost Profit on Breach of Contract at Jerritt Canyon Mill - More
- July 09, 2009 | Item | E-mail

Klondex Resumes Drilling of High-Grade Gold Zones at Fire Creek as It Awaits Grant of BLM Permits This Month - More
- July 09, 2009 | Item | E-mail

SEMAFO to Release Second Quarter Financial Results on August 11, 2009 - Q2 Conference Call Scheduled for August 12, 2009 - More
- July 09, 2009 | Item | E-mail

New Jersey Mining Company Provides Drilling Update At Toboggan Project - More
- July 09, 2009 | Item | E-mail

NWT Uranium Corp. Terminates Option Agreements With Azimut Exploration for the North Rae and Daniel Lake Properties - More
- July 09, 2009 | Item | E-mail

Dia Bras Closes $4 Million Non-Brokered Private Placement - More
- July 09, 2009 | Item | E-mail

Golden Harp Resources seeks approval to reprice and extend the terms of 7,612,200 share purchase warrants - More
- July 09, 2009 | Item | E-mail

Alexis Announces Closing of Previously Announced Financing - More
- July 09, 2009 | Item | E-mail

Denarii Resources Announces Secondary Listing on the Frankfurt Exchange - More
- July 09, 2009 | Item | E-mail

Caerus Completes Definitive Agreement to Acquire Colombian Gold Explorer - More
- July 09, 2009 | Item | E-mail

Network announces private placement - More
- July 09, 2009 | Item | E-mail

Azimut regains the North Rae and Daniel Lake Properties - More
- July 09, 2009 | Item | E-mail

Strateco and Majescor Intersect 0.13% eU3O8 Over 11.0 Metres at Mistassini in the Otish Mountains - More
- July 09, 2009 | Item | E-mail

Uranium One Announces Record Quarterly Production and Significant Increase in South Inkai Resources - More
- July 09, 2009 | Item | E-mail

General Metals Commences Advanced Metallurgical Work to Enable Open Pit Design and Modeling Moving Permitting Forward and Awaits Draft of Independent Technical - More
- July 09, 2009 | Item | E-mail

Avion Intersects 5.37 g/t Gold Over 20.9 Metres At Segala Mine, Mali - More
- July 09, 2009 | Item | E-mail

Rocher Deboule Minerals Corp.: Preliminary Economic Assessment Commissioned on Artillery Peak Manganese - More
- July 09, 2009 | Item | E-mail

Sacre-Couer Minerals, Ltd. Announces Private Placement - More
- July 09, 2009 | Item | E-mail

Ivanhoe Mines Update on Mongolian Parliament's Discussion of the Investment Agreement for Construction and Operation of the Oyu Tolgoi Mining Complex - "Ivanhoe Mines' (TSX:IVN - News)(NYSE:IVN - News)(NASDAQ:IVN - News) President and CEO John Macken said the company has noted the formal vote recorded today in Mongolia's State Great Khural (national Parliament) to advance approval discussions of the comprehensive Investment Agreement for the Oyu Tolgoi copper-gold project in the South Gobi Region." More
- July 09, 2009 | Item | E-mail

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