Gold Seeker Closing Report: Gold and Silver Fall Slightly

	Close	Gain/Loss
Gold	$1002.90	-$5.60
Silver	$16.84	-$0.19
XAU	166.02	-1.20%
HUI	417.57	-1.52%
GDM	1244.53	-1.59%
JSE Gold	2494.83	-101.76
USD	76.78	+0.29
Euro	146.72	-0.39
Yen	108.62	-0.97
Oil	$69.71	-$2.33
10-Year	3.487%	+0.013
T-Bond	120.96875	+0.28125
Dow	9778.86	-0.42%
Nasdaq	2138.04	-0.24%
S&P	1064.66	-0.34%

Gold traded roughly 1% lower in Asia and London before it rallied to see a loss of just $3.40 at $1005.10 by a little before noon EST in New York, but it then fell back off a bit into the close and ended with a loss of 0.56%. Silver saw almost 3% losses in Asia and London before it rallied to see a loss of just $0.10 at $16.93 by a little before noon EST in New York and then also fell back off a bit into the close, but it ended with a loss of just 1.12%.

Euro gold fell to about €683, platinum lost $9 to $1316, and copper gained a couple of cents to about $2.79.

Gold and silver equities fell over 4% at the open, but they then rallied back higher for most of the rest of trade and ended with only a little over 1% losses.

Report	For	Reading	Expected	Previous
Leading Indicators	Aug	0.6%	0.7%	0.9%

Tomorrow at 10AM EST brings the FHFA Housing Price Index for July expected at 0.5%.

Oil fell back below $70 while the U.S. dollar index rose on speculation about what may come out of the G20 and fed meetings this week.

Treasuries traded mixed along with the Dow, Nasdaq, and S&P as traders waited for clues about the future of the economy later in the week.

Among the big names making news in the market today were Dell and Perot, Biogen Idec and Facet, and Lennar.

In order to understand the upcoming violence in the US dollar price you need to study and consider the following.

I am going to present this as simplified as possible as it is an area not commented upon by most gold analysts, probably because they haven’t a clue.

It is vital that it is grasped, as the US dollar is gold’s key influence. In time it could be the other way around, but we will focus on that seeming contradiction only when it is relevant.

First lets dismiss some popular opinions now being spewed amongst the community.

1. The dollar market is inhabited by mostly shorts and therefore is ready for a substantial rally.

Those shorts that you can read from COT (Commitment of Traders) represent a very small portion of global dollar investors. That renders COT figures interesting, but not necessarily indicative.

The clear majority of those shorts are positions that have been assumed by the CARRY TRADE. This will be the thrust of this missive so pleasekeep this fact in your mind.

2. Some Elliott Wave commentary is suggesting a big dollar rally from here. I think that I am again facing questions raised by the Prechter Dollar/Gold flyer that always goes out when any reaction in gold is possible favoring the dollar and panning gold. Regardless, wave counting is a highly SUBJECTIVE ART. I will stay with Alf Fields when it comes to this discipline.

For many years the Yen was the currency of choice for the carry trade. Interest rate charges for Yen borrowing were the lowest for a major currency in the world and as a currency it was weak on balance.

The carry trade will seek to borrow in the weakest currency and short that currency in order to protect against depreciation of the financing item. The carry trade seeks its profit in the utilization of the borrowed currency for higher returns.

The majority of today’s carry trade now does not seek the overt risk inherent in playing both sides of their currency exposure position. What they are inherently long by borrowing the dollar is the dollar and therefore the short thereof.

The currency market is anticipating long-term economic lethargy in the USA versus economic strength in Asia and firm world commodities including gold.

Examining the history of the Yen during its period as currency of choice for the carry trade will show you the violence that occurred there even though the Japanese Central Bank tried time and time again to defuse this activity.

Because I hold the firm opinion since the 121 long-term USDX top that I pointed out on JSMineset, I remain of the mind that the dollar will trade below .6200.

I do not see the shorts in the carry trade dollar being run out of their highly professional shorts any more than they were in the Yen for years.

Yes, the US dollar will experience short violent upside rallies because of the carry trade newcomers, but they will be very SHORT TERM.

The carry trade influence, at a time when there is a universal desire for diversification out of the dollar into an SSGI, minerals, energy or anything, is quite bearish long term.

I must admit for the investors seeking insurance against the fundamental economic and financial deterioration, not at all now healed, trading in such markets seems like total madness.

Relax knowing you have done the right thing, and that no margin person is going to come calling at just the wrong time.

The HUI has run into selling pressure centered near the 450 level and has retraced some ground finding support above the former late May/ early June top at 405. There looks to be stronger support near the 376 level should that not hold. As I write this the HUI is well off its session low and actually performing quite well technically. That top near 405 was a formidable barrier to upward progress for some time and sure does seem to now be working as very good support.

The blip in the Dollar is associated with its severely oversold status in front of the upcoming FOMC meeting this week. That led to some further selling at the Comex as just about every commodity across the board was sold since the hedgie algorithms commanded their servants (that would be the carbon-based humanoids called hedge fund managers) to sell “things” when the Dollar bounced. Once the Dollar moves lower, the same servants will be dutifully buying back more “things” once again. (My aren’t they a clever bunch).

Silver has put in one impressive bounce off its worst levels and is trading back above the 10 day moving average. Gains in tomorrow’s session would embolden bulls and unnerve weak-handed shorts. We will have to wait and see what the sentiment is towards the greenback tomorrow.”- Dan Norcini, More at JSMineset.com

Nevsun’s (NSU) secured sales contracts, Jaguar’s (JAG) closed issuance, Vista Gold’s (VGZ) closed common share offering, Northern Dynasty’s (NAK) addition to the S P/TSX SmallCap Index, Imperial’s (ILL.TO) normal course issuer bid, Minefinders’ (MFN) filed prospectus, Minco’s (MSV.TO) project update, and Silver Quest’s (SQI.V) drill program 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.

Minefinders Files Prospectus Supplement Relating to C$66 Million Bought Deal - "Minefinders Corporation Ltd. ("Minefinders" or the "Company") (TSX:MFL - News)(AMEX:MFN - News) will be filing today a prospectus supplement (the "Prospectus Supplement") to the Company's Canadian short form base shelf prospectus dated December 1, 2008 (the "Shelf Prospectus") in all of the provinces and territories of Canada (other than Quebec), and in the United States by way of a prospectus supplement to the Company's shelf registration statement and related prospectus filed with the United States Securities and Exchange Commission (the "SEC") on December 1, 2008." More
- September 21, 2009 | Item | E-mail

Macarthur Minerals Limited: Lake Giles Magnetite Resource Estimate Increased to 542 Mt - More
- September 21, 2009 | Item | E-mail

BCM Resources: Increases Mineral Claims at Alder Project - More
- September 21, 2009 | Item | E-mail

High River Gold Announces Resignation of Chief Executive Officer - More
- September 21, 2009 | Item | E-mail

Laurentian Goldfields Ltd. Provides Shareholder Update - More
- September 21, 2009 | Item | E-mail

Commerce Resources Corp. Increases Private Placement for Oversubscriptions - More
- September 21, 2009 | Item | E-mail

Canadian Gold Hunter Name Change to NGEx Resources and Symbol Change to NGQ - More
- September 21, 2009 | Item | E-mail

Minco Silver Corporation: Update on the Fuwan Silver Project - "Minco Silver Corporation (the "Company" or "Minco Silver") (TSX:MSV - News) is pleased to provide an update on the status of the feasibility study on its Fuwan Silver Project. Since the first quarter of 2009, all of the key parameters of the project have been finalized. Wardrop Engineering Inc. ("Wardrop") and China Nerin Engineering Co. Ltd. ("NERIN") have been progressing on their respective aspects of the study. As well, Environmental Resource Management ("ERM") has been advancing the EIA which forms a part of the feasibility study." More
- September 21, 2009 | Item | E-mail

Nevsun Resources Ltd.: Bisha Project Secures Sales Contracts - "Nevsun Resources Ltd. (TSX:NSU - News)(AMEX:NSU - News) is pleased to announce that its Bisha Project has entered into metal sales contracts for its future gold and copper production at the Bisha Mine in Eritrea, Africa. Pricing for all metals will be fixed at spot rates at the time of delivery." More
- September 21, 2009 | Item | E-mail

Skyline Gold Announces Private Placement - More
- September 21, 2009 | Item | E-mail

Gold World Resources Signs Letter of Intent with Producer on Major Structure, Guizhou Province, China - More
- September 21, 2009 | Item | E-mail

Firstgold Announces Extension Agreement - More
- September 21, 2009 | Item | E-mail

Jaguar Issues Additional Senior Convertible Notes Following Exercise of Over-Allotment Option - "Jaguar Mining Inc. ("Jaguar" or the "Company") (JAG: TSX/NYSE, JAG.NT: TSX) announced today that it has successfully closed the issuance of an additional US$15 million aggregate principal amount of its 4.50% senior convertible notes due 2014 (the "notes") following the exercise in full of the over-allotment option granted by Jaguar to the initial purchasers in connection with the Company's previously announced private offering of US$150 million aggregate principal amount of notes, which closed on September 15, 2009. The net proceeds of approximately US$14.5 million from the exercise of the over-allotment option brings the total net proceeds received from the offering to approximately US$159.1 million." More
- September 21, 2009 | Item | E-mail

Victoria Announces Grant of Stock Options - More
- September 21, 2009 | Item | E-mail

Platinex and Ontario Mediate Over Big Trout Lake Property - More
- September 21, 2009 | Item | E-mail

Dana Resources Reports Copper Price Expectations Raised - More
- September 21, 2009 | Item | E-mail

Romios Congratulates the Federal Government for Its Foresight in Supporting the Construction of the Northwest Power Transmission Line in British Columbia - More
- September 21, 2009 | Item | E-mail

Sparton Completes Acquisition of 51% Interest in China Germanium-Coal Operations; High Tungsten Values and Rare Earths Found in Germanium Concentrates - More
- September 21, 2009 | Item | E-mail

Mineral Hill Announces 3rd Lithium Property in Quebec - More
- September 21, 2009 | Item | E-mail

Fission Extends Discovery Bay Zone at Waterbury Lake - More
- September 21, 2009 | Item | E-mail

Aldrin Appoints Bert Jeffries to Board of Directors - More
- September 21, 2009 | Item | E-mail

Running Fox Resources: To Acquire Diamond Drilling Company - More
- September 21, 2009 | Item | E-mail

Phase II drill program completed at Blue Nose - More
- September 21, 2009 | Item | E-mail

Lake Victoria Advances Both Singida and Kinyambwiga Gold Projects, Tanzania - More
- September 21, 2009 | Item | E-mail

Lomiko Metals Inc. Accelerates Purchase of Lithium Brine Project in Chile - More
- September 21, 2009 | Item | E-mail

Iberian Minerals Announces Stock Options and Issues Update on Aguas Tenidas Hedging - More
- September 21, 2009 | Item | E-mail

Kaminak Stakes 210 Additional Claims in the Yukon's White District Based on Newly Recognized Gold-in-Soil Trends - More
- September 21, 2009 | Item | E-mail

Anaconda Mining Provides Update on Pine Cove Operations - More
- September 21, 2009 | Item | E-mail

Galena International Resources Ltd.: Proposed Qualifying Transaction - More
- September 21, 2009 | Item | E-mail

Serengeti Expands Potential of South Zone at Kwanika - More
- September 21, 2009 | Item | E-mail

MEXIVADA discovers Diatreme near High-grade Gold Mineralization at Goldstorm in Nevada; Project Updates - More
- September 21, 2009 | Item | E-mail

Crowflight Announces Private Placement Financing - More
- September 21, 2009 | Item | E-mail

Melkior Continues to Intersect Gold Mineralization at Carscallen Gold Project, Timmins, Ontario - More
- September 21, 2009 | Item | E-mail

U. S. Antimony Announces Mexican Mill-site - More
- September 21, 2009 | Item | E-mail

General Metals Advanced Metallurgical Update on the Independence Project - More
- September 21, 2009 | Item | E-mail

Royal Nickel Corporation Announcement: Changes to Management and Board of Directors; New Investment by Sunhu of China - More
- September 21, 2009 | Item | E-mail

Capstone Reports Final High Grade Copper-Gold Results From Minto North Infill Drilling - More
- September 21, 2009 | Item | E-mail

Geohedral LLC Reports Expanded Holdings and Significant Gold Discovery in Southeastern Alaska - More
- September 21, 2009 | Item | E-mail

El Capitan Receives Two Lab Reports Showing an Average of over .10 opt of Gold Equivalent - More
- September 21, 2009 | Item | E-mail

Aurelio Completes Sale of Four Nevada Gold / Silver Projects - More
- September 21, 2009 | Item | E-mail

Bard Ventures Ltd.: First Phase of 2009 Exploration Completed on the Grouse Mountain Property - More
- September 21, 2009 | Item | E-mail

Rostock Ventures Corp. Acquires Gold Prospect in World-Class Gold Region - More
- September 21, 2009 | Item | E-mail

Sungro Enters Into Amendment to Definitive Agreement for Acquisition of Conglomerate Mesa Claims - More
- September 21, 2009 | Item | E-mail

Northern Continental Reschedules Special Meeting and Enters Into Arrangement Agreement and Loan Agreement With Hathor - More
- September 21, 2009 | Item | E-mail

Hathor Signs Arrangement Agreement with Northern Continental Resources - More
- September 21, 2009 | Item | E-mail

GobiMin signs Agreement to invest in Sawayaerdun Gold Project - More
- September 21, 2009 | Item | E-mail

Rostock Acquires High Impact Gold Prospect in World-Class Gold Region - More
- September 21, 2009 | Item | E-mail

Nanika Announces Additional Ground Acquisition East of Indi and Near Red Cliff - More
- September 21, 2009 | Item | E-mail

Vista Gold Corp. Announces Closing of Common Share Offering - "Vista Gold Corp. ("Vista" or the "Company") (TSX & NYSE Amex: VGZ) is pleased to announce the closing of its previously announced public offering of common shares pursuant to the Company's shelf registration statement filed with the U.S. Securities and Exchange Commission (the "SEC") and a shelf prospectus filed with certain Canadian securities regulatory authorities. The Company sold 8.8 million common shares at a price of US$2.25 per common share. The Company has granted the underwriters a 30-day option to purchase up to 1.32 million additional common shares to cover over-allotments, if any." More
- September 21, 2009 | Item | E-mail

Silver Quest Resources Ltd.: Drill Program Commences on the Capoose-Silver Trend Project - "Silver Quest Resources Ltd. (the "Company") (TSX VENTURE:SQI - News) is pleased to report that a diamond drill program has commenced on the Capoose-Silver Trend project, located approximately 185 kilometres by road, west-southwest of Prince George, British Columbia (see www.silverquest.ca for property details and locations)." More
- September 21, 2009 | Item | E-mail

Standard Poor's Adds Northern Dynasty to S P/TSX SmallCap Index - "The S P/TSX SmallCap Index was re-developed in 2007 to provide an investable index for Canadian investors and investment managers, as well as a small cap portfolio benchmark. To be included in the index, TSX-listed public companies must be actively and regularly traded, and have a float adjusted market capitalization between $1.5 billion and $100 million, among other eligibility characteristics." More
- September 21, 2009 | Item | E-mail

Imperial Announces Normal Course Issuer Bid - "Pursuant to the Bid, the Company may purchase up to 1,285,159 common shares, which represents approximately 4% of the total 32,128,985 common shares of the Company issued and outstanding as of September 9, 2009. Purchases will be made, at the discretion of the Company at prevailing market prices, commencing September 23, 2009 and ending September 22, 2010." More
- September 21, 2009 | Item | E-mail

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