Gold Seeker Closing Report: Gold and Silver Gain Nearly 2% and 3% with Stocks and Oil

	Close	Gain/Loss
Gold	$939.40	+$16.85
Silver	$13.21	+$0.37
XAU	141.12	+4.63%
HUI	343.23	+4.62%
GDM	1056.04	+4.54%
JSE Gold	2392.22	+85.67
USD	79.39	-0.79
Euro	141.04	+1.35
Yen	106.02	-0.86
Oil	$61.54	+$2.02
10-Year	3.596%	+0.149
T-Bond	116.84375	-1.8125
Dow	8616.21	+3.07%
Nasdaq	8162.90	+3.51%
S&P	932.68	+2.96%

Gold and silver steadily rose throughout most of world trade and ended near their highs of $941.35 and $13.37 with gains of 1.83% and 2.88%. Euro gold rose to about €666, platinum gained $25.50 to $1151, and copper gained over 9 cents more to about $2.38. Gold and silver equities rose over 4% at the open and remained near their highs into the close.

Report	For	Reading	Expected	Previous
CPI	June	0.7%	0.6%	0.1%
Core CPI	June	0.2%	0.1%	0.1%
Empire Manufacturing	July	-0.55	-5.00	-9.41
Capacity Utilization	June	68.0%	67.9%	68.2%
Industrial Production	June	-0.4%	-0.6%	-1.2%

FOMC minutes from the fed’s June 24^th meeting noted that they were developing tools to remove policy accommodation, but that they will not be removing liquidity facilities until next year. They also upgraded their economic outlook.

Tomorrow at 8:30AM EST brings Initial Jobless Claims for 7/11 expected at 552,000. At 9AM is the TIC Flows report for May expected at $7.5 billion, and at 10AM is the Philadelphia Fed survey for July expected at -5.0.

Oil rose markedly, the U.S. dollar index and treasuries plummeted, and the Dow, Nasdaq, and S&P soared roughly 3% higher on better than expected earnings reports that raised hopes over the future of the economy.

Among the big names making news in the market today were CIT, American Airlines, Gannett, Abbott Laboratories, Intel, and Toyota.

The combination of a sharply lower dollar and a somewhat higher-than-expected CPI reading, was enough to send gold sharply higher as it plowed into some upside buy stops that sent it into resistance centered around the $940 level. The move higher serves to confirm yesterday’s move away from $900 validating that as a key technical support level and furthering the consolidation pattern on the gold price chart. It will take a closing push through the $940- $942 level to set up some further upside for gold.

It is interesting to note that this consolidation pattern is tightening and forming a broad triangle which is the pattern that we often see in gold before it commences its next leg higher.

All is hinging upon the US Dollar and whether or not it can hold support above the double bottom support that emerged in early June near the 78.40 level. A closing breach of that level and gold will break out of this triangle and move towards the $1000 level. I might add that when looking at the weekly chart of the US Dollar, there is not much in the way of technical chart support below 78.40 until you get closer to the 76 level.

One can say that for today at least, the inflation play is back on and the deflation play has been shelved. The PPI from yesterday and the CPI from today was enough to at least temporarily put a lid on the deflationists while the sharp move lower in the long bond has added further credence to the inflationist stance. As mentioned so many times of late, these two competing ideologies are driving our markets and until one side bests the other, these sorts of wild, dramatic price swings are going to continue with the US equity markets moving up or down as one side or the other prevails for the day and the Dollar reacting accordingly as “risk” is either in favor or out.

Our old indicator of risk, the Euro-Yen cross, was sharply higher today with the Yen getting knocked lower against the majors, including the Dollar, much to the delight of the Japanese monetary authorities who continue grumbling about “excessive volatility in the Forex markets which is not warranted by fundamentals”. Translation – “we are getting ticked off at the hedge funds who keep bidding our currency higher and are getting ready to kick their collective asses”. When this cross is higher, more often than not, commodities are higher across the board as the fund algorithms kick in.

Copper in particular stormed higher today and looks like it will try to make a run towards its recent high near 2.45. I am not sure if it can break through that level but if it does, it will indicate that the sentiment in the commodity markets is shifting more firmly in favor of the inflationist argument. It has been slowly grinding higher and while it looked for a while as if the Head and Shoulders pattern shown on the daily price chart was about to be confirmed, yesterday’s and today’s move higher has negated that, at least for now. Traders will be closely watching it to see how it performs tomorrow and Friday in order to gauge the next move in that bellwether market.

Open interest in Comex gold continues to remain relatively stagnant. That is not unexpected seeing that range-trading or consolidating markets rarely attract much “interest” in today’s momentum chasing environment. For our purposes however it is extremely healthy as it gives end users in the real gold world more time to become acclimated to a higher price level. Physical gold buyers and sellers do not like wild volatility – they like price stability as it gives them a range in which they can feel comfortable making their buying and selling decisions.

After moving higher on fears of deflation and especially as a result of convexity buying, bonds imploded on inflation fears moving rates higher once again, much to the consternation of the Fed, I might add. The short term moving averages have flipped down with today’s session low near the 40 day moving average providing some buying support. It looks to me like the bonds are going to be carving out a trading range like many of the rest of the markets until this deflation/inflation argument gets sorted out.

Crude oil is running higher today with prices moving back above the $60 level. It would certainly not hurt the cause of gold were crude to establish a floor near this level as that would help ease fears of deflation. It is difficult to make a case for gold as an inflation play when crude oil prices are moving lower as energy is such a key component in the cost structure of our economy.

The HUI put in one of those nice bullish formations on its daily price charts but still has much work to do technically to convincingly assert the bullish case. Not until it gets a close above 360 can it be said that the gold stocks are out of the bear woods just yet. I want to point out however that it did get back above that 100 day moving average which means that the shorts are having great difficulty pushing prices lower as value buyers seem to be emerging.

I suspect that what we are seeing in gold and by inverse, the Dollar’s action, is increasing concern about the pace of reckless spending by the US government. Chatter about surtaxes on millionaires to pay for a government boondoggle called health care reform and an attempt to push a cap and tax program upon an economy that is reeling from a credit meltdown can hardly be said to be the thing that makes for balanced budgets and enhanced tax revenues. Corporate tax revenues have plunged an astonishing 57% and yet more punitive business measures seem to be in store. My view is that individual tax rates are going to reach 50% even as capital gains taxes are raised to 20%. There is no end in sight to the transfer of private wealth to the government and none of this is business friendly in the long term. Heaven help the US Dollar…..and by consequence, the future for our children and grandchildren.”- Dan Norcini, More at JSMineset.com

“August Gold closed up 16.6 at 939.4. This was 3.6 up from the low and 2.3 off the high.

September Silver finished up 0.353 at 13.208, 0.172 off the high and 0.028 up from the low.

For a change the gold market managed to rise right through the regularly scheduled US economic data flows on Wednesday morning. In other words, the bull camp seemed to have a full head of steam and it also seemed to be anticipating something bullish from the data front. With the Dollar under a massive washout wave and the US equity markets mounting surprising gains it would seem like a number of outside market forces were running interference for the bull camp. While the gold trade might not have been realistically anticipating inflation to return in the action Wednesday, seeing a confirmation of rising prices from both the PPI and the CPI, combined with a noted bounce in energy prices had to rekindle some inflationary dialogue.

Like gold, the silver market managed a pretty impressive upward extension on the charts on Wednesday. Clearly a number of positive outside market forces assisted the silver in its upward track on the charts, but in the end, it seemed as if a noted improvement in overall macro economic sentiment gave silver and the industrial commodities the biggest boost. However, a sliding Dollar, soaring equity prices and improved economic sentiment would seem to be a distinct shift from the market conditions that faced silver last week.”- The Hightower Report, Futures Analysis and Forecasting

Note: Change in Total Tonnes from yesterday’s data: SPDR subtracted 15.27 tonnes, the LSE subtracted 0.78 tonnes, and the JSE added 0.61 tonnes.

Note: Change in Total Tonnes from yesterday’s data:42.07 tonnes were added to the trust.

Timberline’s (TLR) drilling, US Gold’s (UXG) resource estimate, NovaGold’s (NG) second quarter financial results, Gammon’s (GRS) exploration results, International Royalty’s (ROY) completed financing, ongoing ambushes in Indonesia, Kirkland’s (KGI.TO) resource estimates, US Silver’s (USA.V) granted options, Silvercorp’s (SVM) update on its offer for Klondex (KDX.TO), Endeavour’s (EXK) second quarter production, MAG’s (MVG) optioned property, and Silver Wheaton’s (SLW) announcement of Goldcorp’s (GG) mine startup 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.

U.S. Silver Announces Option Grants - "U.S. Silver Corporation (USA-TSXV) (“U.S. Silver” or the “Company”) announces that non-Executive Directors of the Company have today been granted a total of 2,400,000 share purchase options. Each non-Executive Director will receive, pursuant to the share option Plan, options to purchase up to 400,000 common shares of U.S. Silver. The options are priced at $0.13 per share and expire five years from the date of issue. Such options are subject to the terms and conditions of the Plan, certain vesting provisions, and the policies of the Exchange." More
- July 15, 2009 | Item | E-mail

Golden Minerals to Commence Trading on the Toronto Stock Exchange - More
- July 15, 2009 | Item | E-mail

CAUC Receives Dornod License Suspension Notice from MRAM - More
- July 15, 2009 | Item | E-mail

VVC Exploration-Results of Annual General Meeting - More
- July 15, 2009 | Item | E-mail

Timberline Resumes Drilling at Butte Highlands - "Timberline Resources Corporation (NYSE Amex:TLR) today announced commencement of its 2009 core drilling and surface reverse circulation (RC) drilling program at the Butte Highlands Gold Project. The core program is a follow up to the discovery in hole BH-DDH 08-03 with the goal to expand the current outlined areas of mineralization, while the RC program is a continuation of the Company's hydrologic mine modeling." More
- July 15, 2009 | Item | E-mail

QRS Capital Corp. announces joint venture with Galena Capital Corp. - More
- July 15, 2009 | Item | E-mail

Queenston and Kirkland Lake Gold Increase High-Grade Mineral Resources on the South Claims JV Property - More
- July 15, 2009 | Item | E-mail

Western Prospector Group Ltd. Announces Further Suspension of Mongolian Uranium Licenses - More
- July 15, 2009 | Item | E-mail

Rare Element Reports Encouraging Rare-Earths Metallurgical Test Results - More
- July 15, 2009 | Item | E-mail

EagleRidge Minerals Increases Ground Position in Newfoundland and Labrador - More
- July 15, 2009 | Item | E-mail

US Gold Boosts Resources with Limo Project Estimate (Nevada, USA) - "US GOLD CORPORATION (AMEX:UXG - News)(TSX:UXG - News) announces details of an initial resource estimate for its Limousine Butte Project ("Limo") (100% owned) in Nevada, USA. The resource estimate was prepared by Telesto Nevada Inc. of Reno, Nevada in accordance with Canadian National Instrument 43-101 standards." More
- July 15, 2009 | Item | E-mail

Homeland Uranium Inc. Announces Addition to Board of Directors - More
- July 15, 2009 | Item | E-mail

Endeavour Silver Reports Production for Second Quarter, 2009; Produces 578,641 oz Silver (Up 12%) and 2,750 oz Gold (Up 61%) or 762,891 oz Silver-Equivalents - "Endeavour Silver Corp. ("Endeavour" or the "Company") (TSX:EDR - News)(AMEX:EXK - News)(DBFrankfurt: EJD) announces that silver production for the Second Quarter, 2009 from the Company's two operating silver mines in Mexico, Guanacevi in Durango State and Guanajuato in Guanajuato State, totalled 578,641 ounces (oz) silver, up 12% over Q2, 2008." More
- July 15, 2009 | Item | E-mail

God's Lake Resources Inc. (Formerly GGD Resources Inc.) Announces Acquisition of Sherman Lake Gold Project and Completion of Non-Brokered Private Placement - More
- July 15, 2009 | Item | E-mail

Telephone access available for Inmet Mining second quarter conference call - More
- July 15, 2009 | Item | E-mail

Sage Closes Private Placement - More
- July 15, 2009 | Item | E-mail

Zinccorp Resources: 2009 Summer Exploration Program to Expand on 2008 Discoveries - More
- July 15, 2009 | Item | E-mail

Amador Gold Corp. Provides Summary on Ontario Projects - More
- July 15, 2009 | Item | E-mail

Sandstorm Resources Provides Development Update on Luna Gold's Aurizona Project - More
- July 15, 2009 | Item | E-mail

Colt Resources completes initial closing on private placement announced June 18, 2009 - More
- July 15, 2009 | Item | E-mail

Gold Coast Mining and Western Sierra Expand Mining Agreement - More
- July 15, 2009 | Item | E-mail

Argentex appoints new Chief Financial Officer - More
- July 15, 2009 | Item | E-mail

Murgor Resources announces proposed $810,000 private placement to China Nonferrous Metals Exploration Corp. - More
- July 15, 2009 | Item | E-mail

Croinor Gold Project Scoping Study Filed X-Ore and First Gold Engage Minvestec Capital - More
- July 15, 2009 | Item | E-mail

Augusta Announces Receipt of State Approval for Rosemont Reclamation Plan and Economic Impact Study - More
- July 15, 2009 | Item | E-mail

Improving Resources Classifications at Marathon - More
- July 15, 2009 | Item | E-mail

Douglas Lake Minerals Inc. Announces New Joint Venture Agreement With Mkuvia Maita - More
- July 15, 2009 | Item | E-mail

Salazar Makes Final Payment on Curipamba Project - More
- July 15, 2009 | Item | E-mail

Hinterland Mobilizes Exploration Crew to Ballarat Property, White River Gold Play, Yukon - More
- July 15, 2009 | Item | E-mail

Castle Resources Options 100% San Ramon Property, Mexico to MAG Silver Corp. - More
- July 15, 2009 | Item | E-mail

Acadian Mining announces second closing of private placement for $1.6 M - More
- July 15, 2009 | Item | E-mail

American Creek announces $800,000 private placement offering - More
- July 15, 2009 | Item | E-mail

Anglo Canadian Stakes Four Yukon Gold Properties - More
- July 15, 2009 | Item | E-mail

Bayswater Grants Option on Collins Bay Extension Project in Athabasca Basin - More
- July 15, 2009 | Item | E-mail

Grandview Gold Signs Memorandum of Understanding With Peruvian Group to Acquire 100% of Producing Gold Property - More
- July 15, 2009 | Item | E-mail

Continental Nickel Reports Its First Mineral Resources Containing 89 Million Pounds of Nickel at the Nachingwea Project, Tanzania - More
- July 15, 2009 | Item | E-mail

Concerned Creston Shareholders Apply To OSC for Relief - More
- July 15, 2009 | Item | E-mail

Nevada Copper Reports Significant Resource Increase to 9.3 Billion Pounds Copper & 1.45 Million Ounces of Gold - More
- July 15, 2009 | Item | E-mail

Capstone Reports Strong Production & Cash Operating Costs for the First Half of 2009 - More
- July 15, 2009 | Item | E-mail

CanAlaska to explore Collins Bay Extension uranium project - More
- July 15, 2009 | Item | E-mail

Tri-River commences adit exploration of massive sulphide target at its Lianlong Poly-metallic project, China - More
- July 15, 2009 | Item | E-mail

Road upgrades started at Teddy Glacier property - More
- July 15, 2009 | Item | E-mail

Uranium Hunter Acquires Additional Gold Property - More
- July 15, 2009 | Item | E-mail

Stroud Updates Private Placement - More
- July 15, 2009 | Item | E-mail

NovaGold Second Quarter Financial Results - "For the three-month period ended May 31, 2009, the Company reported a net loss of $4.8 million (or $0.03 basic and diluted loss per share) compared to net loss of $23.2 million (or $0.22 basic and diluted loss per share) for the corresponding period in 2008. The $18.4 million reduction in losses when comparing the second quarters of 2009 and 2008 is primarily due to the following:" More
- July 15, 2009 | Item | E-mail

MAG Silver Options San Ramone Property, Zacatecas - "MAG Silver Corp. (TSX:MAG - News)(AMEX:MVG - News) ("MAG") reports that it has executed an option agreement to acquire 100% interest subject to a 1.5% Net Smelter Royalty in the San Ramone property in Zacatecas State, Mexico. The San Ramone property combined with MAG's existing adjoining holdings at Lagartos SE, gives MAG control of a significant portion of the eastern part of the historic Mala Noche silver vein system. The Lagartos SE area which has been a major focus of MAG's exploration efforts in the region is located 93 kilometres south of the Fresnillo District and the site of the Valdecanas vein discovery." More
- July 15, 2009 | Item | E-mail

Gammon Gold Announces High Grade Intercepts in the Picacho Open Pit Area and Altagracia Discovery at Ocampo and Provides an Update on its Exploration Program - "Gammon Gold Inc. ("Gammon") (TSX:GAM and NYSE:GRS): Gammon is pleased to provide a mid-year update of our ongoing 2009 exploration program. In 2009, the Board of Directors approved a $12.3 million exploration program that includes a strategic, 123,000 metre drilling program at our Ocampo mine." More
- July 15, 2009 | Item | E-mail

International Royalty Corporation completes bought-deal financing - "International Royalty Corporation (NYSE-A: ROY, TSX: IRC) ("IRC" or the "Company") is pleased to announce that it has closed an offering of 14,100,000 common shares (the "Common Shares") of IRC at a price of C$3.55 per Common Share for total gross proceeds of C$50,055,000. The Company has granted to the underwriters an over-allotment option of up to 2,115,000 Common Shares which can be exercised no later than 30 days from the closing." More
- July 15, 2009 | Item | E-mail

Rivalries could be behind Indonesia mine killings - "Deadly ambushes at the world's largest gold mine likely stem from rivalries between Indonesian police and military forces who compete for millions in illegal profits for protecting the industry, analysts said." More
- July 15, 2009 | Item | E-mail

Silvercorp Updates Market Regarding Its Offer to Acquire All the Outstanding Shares of Klondex - "The Silvercorp offer entitles Klondex's shareholders to receive 0.50 shares of Silvercorp for each outstanding Klondex share validly tendered to the offer and not withdrawn, representing a premium of approximately 59% over Klondex's closing share price on the TSX on June 5, 2009, the last trading day prior to Silvercorp's announcement of its intention to make the offer (based on Silvercorp's closing share price on the TSX on the same date)." More
- July 15, 2009 | Item | E-mail

Kirkland Lake Gold Inc.: Substantial Increases in Reserves & Resources of the South Mine Complex - "Kirkland Lake Gold Inc. (TSX:KGI - News; AIM:KGI) (the "Company") is pleased to present its year-end (April 30, 2009) gold reserve and resource estimates for its operations in Kirkland Lake, Ontario on both the historic Main Break and the recently discovered South Mine Complex or SMC. The South Mine Complex consists of 15 or more mineralized zones, five of which have been defined over strike lengths in excess of 1,000 feet." More
- July 15, 2009 | Item | E-mail

Silver Wheaton Announces Goldcorp's Penasquito Mine Achieves Mechanical Completion - "Silver Wheaton Corp. ("Silver Wheaton") (TSX: SLW - News; NYSE: SLW - News) is pleased to announce that, as reported by Goldcorp Inc. ("Goldcorp") in a press release dated July 13, 2009, construction of the first sulphide process line (Line 1) at Goldcorp's world-class gold-silver-lead-zinc Penasquito mine in Zacatecas, Mexico is now complete and commissioning work is advancing on schedule. Production and shipment of first concentrates are still targeted for the second half of 2009." More
- July 15, 2009 | Item | E-mail

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