Gold Seeker Closing Report: Gold and Silver Fall Over 1%

	Close	Gain/Loss
Gold	$938.60	-$14.60
Silver	$13.74	-$0.24
XAU	142.91	-4.02%
HUI	344.60	-4.27%
GDM	1051.72	-4.11%
JSE Gold	2253.73	-70.63
USD	78.88	+0.24
Euro	141.67	-0.76
Yen	105.66	+0.58
Oil	$67.23	-$1.15
10-Year	3.688%	-0.025
T-Bond	115.953125	+0.4375
Dow	9096.72	-0.13%
Nasdaq	1975.51	+0.39%
S&P	979.62	-0.26%

Gold and silver saw slight gains in Asia, fell back to about unchanged in London, and then dropped throughout most of the morning in New York and made their session lows of $934.25 and $13.58 around noon EST before they rallied back higher in the last hour and a half of trade, but gold still ended with a loss of 1.53% while silver closed the day with a loss of 1.72%.

Euro gold fell to about €663, platinum lost $20.50 to $1191, and copper fell a couple of cents to about $2.52.

Gold and silver equities fell over 6% by midday before they rallied back a bit in afternoon trade, but they still ended with a little over 4% losses.

Report	For	Reading	Expected	Previous
S&P/CS Home Price Index	May	-17.06%	-17.90%	-18.10%
Consumer Confidence	July	46.6	49.0	49.3

Tomorrow at 8:30AM EST brings Durable Goods Orders for June expected at -0.6%. Excluding transportation, orders are expected to come in unchanged. At 2PM is the release of the fed’s Beige Book.

Oil and stocks fell while the U.S. dollar index and treasuries rose on today’s worse than expected Consumer Confidence reading that reignited worries over the economy. Gains in bonds, however, were somewhat limited by today’s less than stellar $42 billion 2-year note auction. The Nasdaq also reversed early losses and ended higher while the Dow and S&P erased most of their morning weakness on hopes for better results and readings later in the weak.

Among the big names making news in the market today were Viacom, US Steel, Sprint Nextel and Virgin Mobil, IBM and SPSS, BP, UBS, McGraw-Hill, and Coach.

Keep in mind that this week has an avalanche of US Treasury instruments offered for sale.

The Chinese financial delegation is visiting Washington with their counterparts in the Administration.

They wish for a Super Sovereign Currency alternative to the US dollar and a cessation of debt offerings as a way of life for US fiscal policies.

Intervention in the dollar was clearly evident from 6 to 7am this US morning off the approximate .4300 level in the Euro which corresponded at that time to .7840 USDX.

This market intervention is purely transitory in the US dollar as there is a planetary desire for dollar diversification and a multi trillion dollar US Federal deficit.

Clearly the dollar and Gold are tied at the hip in the inverse, giving us all comfort that gold has much higher to go.

COT is taking full advantage of this transitory situation in their huge manipulative paper gold offerings to run price, not to sell volume.

The US Dollar managed to bounce precisely near the critical 78.40 support level on the weekly price chart just in time for the Chinese delegation’s arrival in Washington. Even an avowed cynic such as myself has to marvel at the temerity of the US monetary authorities intervention foray this morning. The fact that the pop higher in the Dollar came at a major chart support level makes the stunt even more obvious. Were the Dollar to have broken below 78.40 and taken out this swing low made early last month, there was a very real danger of a sharp meltdown all the way to 76 before any buyers would have be anticipated to show up. That would have made the US lose face in front of China and strengthened the hand of the Chinese as they voiced their dismay at US profligacy and runamok spending.

All is well in intervention land but even at that, no amount of chart tomfoolery is going to undo the growing global movement away from the US Dollar. Our cursed monetary authorities’ shortsightedness has destroyed our children’s monetary future and dashed our nation’s greatness upon the rocks of favoritism and elitism. We are all going to end up paying for this but this is exactly what Jefferson and Jackson and others warned about when they waged war against National or Central Banks usurping control over a nation’s currency.

The perma gold bears at the Comex, aka, the bullion banks, wasted no time in smashing bids above $958 once again showing their presence at the rigged Comex market. This time however, the sell off in crude oil coupled with a flight away from risk and back into the Yen, led to panicked long liquidation as gold dropped down through the bottom of the trading range that has held for the last few trading sessions. Not only did it drop below $946 - $948, but it fell all the way through critical support at $940. Failure to gain its footing here sets up further downside and a test of the $932- $930 level. Conversely, a push back above $946 and into the trading range zone will allow for further consolidative type trade.

With today’s raid on Gold, the price charts have turned bearish once again short term. The daily chart however shows more of the same constricting pattern that has contained gold since February of this year. The highs are lower but the lows are higher as we move from February towards July. In other words, gold is forming a coiling pattern on the daily charts. Seasonally we normally do not see a lot of strength in gold until late in August so this pattern is nothing to be concerned about as long as gold can maintain its footing above $900. I would be a bit concerned were it to break down at that level as it could conceivably move down towards $880 were that to occur but even that would not particularly bother me since that would correspond with the 100 week moving average on the weekly chart which still shows a very broad sideways pattern going back as far as January 2008.

Puff the Magic Dragon must have been at work in the bond market today – either that or the friends of the Fed were given orders to buy bonds for window dressing for the Chinese delegation. The trend in bonds is still lower but they too might attempt to carve out a range trade above 112^16 and below 121^21.

Crude oil also seemed mired in a broad range as well working between $70 and $60.

What we appear to have are markets that are generally at the mercy of currency movements as a move higher in the Dollar and in the Japanese Yen translates to risk aversion and selling in commodities and a move lower in the Dollar and in the Yen translates to risk preference and buying in commodities. Because the Dollar has not yet broken completely down many commodity markets cannot clearly break out into defined uptrends but are retaining choppy price patterns. AS to when this will end, I am unsure but unless the US monetary authorities can suspend the laws of supply and demand, the Dollar is going to break down at some point and that will be that. Once the fat lady sings for the Dollar, gold will shoot up through $980 and then $1,000 although it might be the fall before that occurs.

The HUI was once again stymied around that pesky 360 level. It cannot seem to muster sufficient strength to convincingly better that level, especially on a closing basis. There is chart support near the 330 level and better support near 320. Below that you have to look as far as 305 before expecting some buying to emerge.

Interestingly enough, copper, while lower today, still has not at this point collapsed sharply lower. Based solely on its price action, one has to question how much of the risk aversion trade is more than a one day wonder. With the grains seemingly refusing to move lower, tomorrow could be a complete reversal of today’s downside action in gold and upside action in the US Dollar. Given the current state of idiocy of today’s electronic markets, I hesitate to do anything more than merely conjecture but without a sharp break in copper, I cannot see the risk aversion trades gaining much in the way of follow through especially given the fact that the Australian and New Zealand Dollar were both higher today in the face of a rush into the “safety” of the US Dollar and the Yen.”- Dan Norcini, More at JSMineset.com

“August Gold closed down 14.4 at 939.1. This was 5.3 up from the low and 14.1 off the high.

September Silver finished down 0.25 at 13.74, 0.285 off the high and 0.16 up from the low.

The gold market fell sharply during the session under pressure from bearish outside market influences along with some negative internal supply side news. Gold was undermined by sharp upward reversal in the Dollar and seeing the oil markets also break hard seemed to diminish gold's appeal as an inflation hedge. With macro economic optimism being dented by a larger than expected drop in US consumer confidence and some disappointing corporate earnings news, part of the selling in gold seemed to be tied to the slide in equities lowering investor risk tolerance. Reports that South African gold producers had reached a 2 year wage deal with labor unions to avoid a strike may have also weighed on gold since the news seems to remove some supply side risk. Dec gold's failure to move above a key chart level may have given traders another reason to book profits.

The silver market also came under heavy selling pressure on speculative liquidation tied to macro economic doubts and the sharp recovery bounce in the Dollar. Lower consumer sentiment amid worries over job opportunities and weaker oil prices seemed to diminish silver's appeal as an inflation hedge. The weak consumer sentiment reading may have also cast macro economic doubts on the industrial demand outlook for silver since copper prices also traded lower. Escalating concerns government regulators will tighten position limits in metals may have also contributed to the selling bias in today's trade.”- The Hightower Report, Futures Analysis and Forecasting

Note: Change in Total Tonnes from yesterday’s data: The LSE subtracted 0.78 tonnes.

South Africa’s averted miner strike, Taseko’s (TGB) project update, Apollo’s (AGT) second quarter gold production, and Northgate’s (NXG) terminated discussions with Dioro Exploration NL 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.

Alpha Gold Corporation files Form 15F to deregister in the USA under the Securities Exchange Act of 1934 - More
- July 28, 2009 | Item | E-mail

Abcourt Mines Inc.: 43-101 Update Ressources Report on Elder Gold Mine Shows About 15% Increase in Measured and Indicated Resources - More
- July 28, 2009 | Item | E-mail

Forsys Provides Update to GFI Transaction - More
- July 28, 2009 | Item | E-mail

MDN's Operational Update: Drilling Program has Begun at Isambara - More
- July 28, 2009 | Item | E-mail

Gitennes amends terms of private placement - More
- July 28, 2009 | Item | E-mail

Copper Mountain Production Plan and Reserves Updated - More
- July 28, 2009 | Item | E-mail

Creston Moly Corp.: Second Tranche of Private Placement Closed - More
- July 28, 2009 | Item | E-mail

Northern Superior Resources Inc. (TSX VENTURE: SUP) Announces Financing With the MineralFields Group - More
- July 28, 2009 | Item | E-mail

Apella Resources Inc.: Lac Dore Decision - More
- July 28, 2009 | Item | E-mail

Severstal Increases Cash Offer for High River Gold to $0.30 per Share, an Increase of 36% Over its Prior Offer of $0.22 - More
- July 28, 2009 | Item | E-mail

Far West Announces Drill Program at Georgetown Silver-Lead-Zinc Project, Queensland, Australia - More
- July 28, 2009 | Item | E-mail

Oromin Explorations Ltd.: Santa Rosa, Argentina Update - More
- July 28, 2009 | Item | E-mail

Continental Precious Minerals to Conduct Metallurgical Studies Using Bioleach Technology - More
- July 28, 2009 | Item | E-mail

Golden Harp Resources appoints Paul Sarjeant to the Board - More
- July 28, 2009 | Item | E-mail

Constantine Completes Financing and Commences Drilling at Palmer VMS Project, Alaska - More
- July 28, 2009 | Item | E-mail

Orvana Says New ATW Financing Adds Further Conditions and Uncertainties to Kinbauri's Proposed Merger - More
- July 28, 2009 | Item | E-mail

Tara Minerals Releases Technical Report on Don Roman Property - More
- July 28, 2009 | Item | E-mail

Fortress Intercepts 60.8 Meters Grading 2.62 g/t Gold and 12.4 Meters Grading 11.88 g/t Gold (Uncut) at the Amy Prospect, Svetloye Project Russia - More
- July 28, 2009 | Item | E-mail

Inmet announces second quarter earnings of $1.37 per share compared with $1.40 per share in the second quarter of 2008 - More
- July 28, 2009 | Item | E-mail

Canadian Arrow announces appointment of George E. Pirie to Board; Withdraws from business combination - More
- July 28, 2009 | Item | E-mail

Fortune Minerals to locate NICO hydrometallurgical process facility in southern Canada - More
- July 28, 2009 | Item | E-mail

Pacific Ridge Provides Update on the Klondike Kate Gold Project, Yukon - More
- July 28, 2009 | Item | E-mail

East Asia Minerals Extends High-Grade South Miwah Bluff Gold Discovery - More
- July 28, 2009 | Item | E-mail

X-Cal Resources Ltd.: First Quarter Financial Statements Filed and Update - More
- July 28, 2009 | Item | E-mail

Blackstone Uncovers Significant IP Anomaly at Norbotten Copper-Gold Project in Sweden - More
- July 28, 2009 | Item | E-mail

West Timmins Mining to Continue Option on Probe Mines' Bristol Gold Property, Drilling Program Planned - More
- July 28, 2009 | Item | E-mail

Wesdome Gold Mines Ltd. - Two milestones for the Kiena Mine - More
- July 28, 2009 | Item | E-mail

General Metals Receives 275 Assays From the High Grade Independence Gold Skarn Drilling Which Are in Excellent Agreement With Original Assays - More
- July 28, 2009 | Item | E-mail

Department of Energy Denies USEC's Loan Guarantee Application - More
- July 28, 2009 | Item | E-mail

Pitchstone Exploration Ltd.: Continued Encouraging Drill Results at Gumboot - More
- July 28, 2009 | Item | E-mail

Galway secures land position in California, Colombia gold trend - More
- July 28, 2009 | Item | E-mail

Etruscan upgrades gold resources at Finkolo joint venture in Mali - More
- July 28, 2009 | Item | E-mail

Lateegra Acquires Additional Timmins Belt Properties - More
- July 28, 2009 | Item | E-mail

Taseko Provides Prosperity Project Update - "The Prosperity Project is currently undergoing both a provincial and federal Environmental Assessment process. The Government of British Columbia process, being conducted by the Provincial Environmental Assessment Office, is expected to conclude by the end of October 2009. The Government of Canada process, a Federal Review Panel coordinated by the Canadian Environmental Assessment Agency, is expected to be completed in early 2010." More
- July 28, 2009 | Item | E-mail

Apollo Gold Second Quarter 2009 Gold Production from Its Black Fox Mine - "On June 2, 2009, we announced that our Black Fox project had poured its first gold bars during the last week of May and was in commercial production. We are pleased to report that during the two months of May and June 2009 the Black Fox mill processed 78,000 tonnes of ore at an average grade of 5.1 grams of gold per tonne ore to produce 11,860 ounces of gold (recovery approximately 92.5%). The average mill throughput rate was therefore approximately 1,280 tonnes per day." More
- July 28, 2009 | Item | E-mail

Northgate Minerals Corporation Terminates Discussions with Dioro Exploration NL - "Northgate Minerals Corporation (TSX: NGX, NYSE Amex: NXG) has confirmed today that it has terminated discussions with Dioro Exploration NL ("Dioro") regarding a potential material transaction, as previously disclosed on July 20, 2009." More
- July 28, 2009 | Item | E-mail

S.Africa gold miners agrees pay deal, averts strike - "South Africa's biggest union agreed a wage deal with gold and coal producers on Tuesday, averting a strike in the crucial mining industry and easing labour pressure on President Jacob Zuma. The agreement averts a strike in the 150,000-strong sector, a main foreign exchange earner, but council workers stayed away for a second day, calling for higher pay in the latest stand-off between Zuma and the unions who helped bring him to power." More
- July 28, 2009 | Item | E-mail

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