Gold Seeker Closing Report: Gold Climbs to New Record High for Third Straight Day

	Close	Gain/Loss
Gold	$1054.90	+$12.10
Silver	$17.77	+$0.32
XAU	177.22	+1.38%
HUI	449.61	+1.43%
GDM	1341.79	+1.57%
JSE Gold	2659.27	-4.88
USD	75.96	-0.48
Euro	147.79	+0.93
Yen	113.04	+0.17
Oil	$71.69	+$2.12
10-Year	3.255%	+0.080
T-Bond	121.71875	-1.15625
Dow	9786.87	+0.63%
Nasdaq	2132.93	+0.64%
S&P	1065.48	+0.75%

Gold rose about 1.5% to as high as $1058.32 in Asia before it fell back off in early New York trade to briefly see a 60 cent loss at as low as $1042.20 shortly after 10AM EST, but it then stormed back higher for most of the rest of trade and ended near its new all-time high of $1061.12 with a gain of 1.16%. Silver climbed to $17.91 in Asia before it fell to as low as $17.477 by midmorning in New York, but it also climbed back higher into the close and ended with a gain of 1.83%.

Euro gold rose to about €713, platinum gained $21.50 to $1339, and copper gained nearly 12 cents to about $2.79.

Gold and silver equities rose as much as 3% midday before they fell back off a bit in afternoon trade, but they still ended with over 1% gains.

Report	For	Reading	Expected	Previous
Initial Claims	10/03	521K	540K	554K
Wholesale Inventories	Aug	-1.3%	-1.0%	-1.6%

Tomorrow at 8:30AM EST brings the Trade Balance for August expected at -$32.9 billion.

Oil climbed back over $71, the U.S. dollar index and treasuries fell markedly, and the Dow, Nasdaq, and S&P rose over 1% after jobs data came in better than expected and early third quarter earnings reports did not yet disappoint as much as many fear they might. Stocks pared their gains after today’s treasury auction was not as well bid as hoped, but the major indices still ended with decent gains.

Among the big names making news in the market today were Macy’s, Marriott, GM, PepsiCo, JPMorgan, Goldman, and Citigroup.

It would appear that the decision by the Reserve Bank of Australia to raise interest rates has set a fire under the Aussie and added further to the bullish tone in regards to the entire Asian currency block. It soared to just shy of the 90 level early last evening when news of an unexpectedly vigorous employment report from down under hit the wire. The surging Australian Dollar pulled the entire Asian block of currencies higher sending the US Dollar swooning in the process as even the Euro got in on the action. Traders want to own Asia as they see it recovering from the global economic slump much more quickly than the heavily indebted West.

So strong are the Asian currencies against the US Dollar that THREE Asian Central Banks were all actively intervening in the Forex markets in an attempt to stem the Dollar’s decline against their currencies.

South Korea

, Taiwan, and the Philippines were all three buying Dollars last evening as they struggle vainly to keep some sort of export competitiveness by weakening their currencies. The problem they face is that no one wants to own the greenback and any rallies that these banks create by their bid on the Dollar are being met by speculators eager to sell the Dollar down from a higher level.

We have been saying for many years now at this site that the Dollar was headed for a Humpty Dumpty like fall but I am astounded at how rapidly sentiment has turned against it. The foolish lemming-like panic into it as a “safe haven” that dominated the Forex markets for much of the last year has abruptly shut off to be replaced by a sort of disdain and contempt reserved for the currencies of banana republics. The current US Administration seems to have turned a blinded eye to the Dollar’s woes but then again, they are mainly the cause of its demise what with their insane spending binge and reckless concern for fiscal budget deficits. The Fed cannot help either because they are locked into low interest rates for fear of squashing any nascent economic improvement.

This is why the rally in gold is so impressive – the Forex markets are setting the tone and because of their immense size, the gold price managers at the Comex are being overwhelmed.

Gold is taking out overhead resistance levels as the sentiment against the Dollar is so strong, that traders are bidding it up even before the Dollar cracked key technical support near the 76 level. If the Dollar fails to close back above that level, and it is looking increasingly likely that it will fail spectacularly there, gold could easily shoot to $1,100 in the blink of an eye.

The rise in Euro priced gold through the 700 level has been rapid as expected once that formidable barrier gave way. British Pound gold looks like it wants to move on towards the 700 level and go on and make another all time new high in the process. Things are happening very quickly now exactly as Jim has been saying for the last few months. There might be some Central Bank intervention on occasion to attempt to prevent a plunge in the Dollar but any blips produced by such actions will be short-lived as the Dollar carry trade will be merciless without any sort of higher interest rate support for the Greenback. Witness just how ineffective was ECB President Trichet’s attempt at jawboning the Euro lower. Traders slapped him in the face and told him to go back home and play with his marbles. If traders feel that Asia has the strongest probability of raising rates in that corner of the globe compared to the West, they will continue capturing interest rate differentials producing a relentless stream of pressure against the US Dollar, all comments from Central Bankers notwithstanding.

Technically gold is performing with remarkable resiliency as intraday dips are seized by would-be buyers forcing short term oriented bears to cover repeatedly. There are plenty of analysts advising clients to wait for a pull back towards $1,020 before buying but the market thus far has not accommodated them. It is entirely possible that the longer gold refuses to see any decent sized price retracement, these sideline sitters are going to fear missing the move and will come in and force an acceleration sharply higher. We will just have to see whether or not gold will dip down far enough to let them get in near that level. With so many looking for such a move, the odds are high that they are not going to get it.

It will take some sort of stronger bounce in the Dollar to unnerve the gold bulls. It is so deeply oversold that it is due for a blip up but short sellers are eager to sell it on any move upward.

Last night Alcoa reported a decent profit and that had the equity world ablaze with happy thoughts which led to more risk trades and further US Dollar carry trade increases. The tone has thus far continued in the equity world in today’s trading session but interesting enough, the gains in gold are outpacing those of the DOW with the DOW/GOLD ratio currently running in the vicinity of 9.3. If you recall that chart I sent up earlier this week, the level near 9.0 has been a decent support level for this ratio. If the ratio breaks down near there, the implications are foreboding indeed as the inflation genie will not only have gotten out of the bottle, but will be climbing up and down the walls and breaking dishes on the floors!

The HUI today cracked that stubborn resistance level centered near the 440 level and in the process ran to make a new yearly high. I want to see how it can close both today and tomorrow for the week for if it sustains its level above 450, then next week has it primed for a run to 480 which is the last defense line between it and its all time high. It has been lagging bullion instead of leading it but one of the things that I believe which explains this is that we now have the ETF’s around. Money flows into the gold mining stocks tended to lead the metal in the past but that was because institutional investors and some funds were not allowed to buy futures because of their charters. If they wanted exposure to gold, they were forced with the default option of buying the mining shares. That is no longer the case – they can plow into the ETF instead, which by the way now claims to hold over 1100 tons of gold. While I have more than a few doubts about the ETF’s, tracking it is a much better way of analyzing the gold market from a technical perspective than are the shares as indicated by the both the HUI and the XAU. They remain very valuable as confirmation tools but I am of the opinion that more weight is being placed upon the ETF’s when managers are looking for technical clues.

Gold faded a bit going into the close of the pit session but still retained the bulk of its gains from overnight and early in the session. That bodes well for tomorrow which will be a good test of how strong the conviction of the bulls is as the opportunity to book some profits from this week’s enormous move higher will be tempting.”- Dan Norcini, More at JSMineset.com

Note: Change in Total Tonnes from yesterday’s data: SPDR added 8.8 tonnes and the LSE added 0.52 tonnes. SPDR is now just 24.716 tonnes below its record high holding of 1,134.03 tonnes set this past June 2^nd.

Entree’s (EGI) drill results and U.S. Silver’s (USA.V) new Mine Manager 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 World Resources Financing Update - More
- October 08, 2009 | Item | E-mail

Nuinsco Enters Bidding for Egyptian Gold Concessions - More
- October 08, 2009 | Item | E-mail

Canadian Royalties Inc.-Nunavik Nickel Project Allammaq Update/Allammaq Contained Metal in Measured and Indicated Resources Increases - More
- October 08, 2009 | Item | E-mail

Amador Gold Corp. Announces Drill Plans for Maskooch Property - More
- October 08, 2009 | Item | E-mail

Alix and Geo Announce Drill Date for Manitoba Coal Property Adjacent to Goldsource's "Border Property" and Westcore's "Hudson Bay North Property" - More
- October 08, 2009 | Item | E-mail

Quaterra Announces Increase and Clarification Re Non-Brokered Private Placement - More
- October 08, 2009 | Item | E-mail

USPR Announces the Election of David W. Burney to the Board of Directors - More
- October 08, 2009 | Item | E-mail

Golden Predator to Expedite High Grade Intercept Follow-Up Core Drilling Program at Golden Ridge Project, NE California - More
- October 08, 2009 | Item | E-mail

Summary: Coronado Resources Ships Over 1,750 Ounces of Gold and Over 1.350 Million Pounds of Copper to Date - More
- October 08, 2009 | Item | E-mail

Freewest Resources Canada Inc. Appoints Special Committee and Financial Advisor - More
- October 08, 2009 | Item | E-mail

Platinum Group Metals Ltd. Hosts Webcast for Update WBJV Platinum Project 1 Independent Feasibility Study - More
- October 08, 2009 | Item | E-mail

Alexandria Mapping Program Finds More Evidence For Gold at Matachewan with 7.90 g/t Gold at Surface - More
- October 08, 2009 | Item | E-mail

Westminster Resources Ltd.: High Grades of Silver and Gold Confirmed at Navojoa Porphyry Targets - More
- October 08, 2009 | Item | E-mail

Timmins Gold Corp.: Sprott Asset Management LP Agrees to USD$15 Million Gold Denominated Financing - More
- October 08, 2009 | Item | E-mail

Fortress Channel Trenching Intercepts 43.5 Metres Grading 15.09 g/t Gold at Svetloye Project Russia - More
- October 08, 2009 | Item | E-mail

Lincoln Mining Corporation - Investor Relations Update - More
- October 08, 2009 | Item | E-mail

Magellan Reports Initial Resource Estimate at Coringa Project, Brazil - More
- October 08, 2009 | Item | E-mail

Strategic Metals Ltd. Announces Gold Discovery on Its Wholly Owned GK Property - More
- October 08, 2009 | Item | E-mail

Minera Andes Announces Third Quarter 2009 San Jose Mine Production - More
- October 08, 2009 | Item | E-mail

Mirasol Announces Commencement of Phase Three Drill Program at the Joaquin Silver-Gold Project - More
- October 08, 2009 | Item | E-mail

Goldrich Concludes Successful Mining Test of Chandalar, Alaska Placer Gold Mine - More
- October 08, 2009 | Item | E-mail

Platinum Group Metals Ltd.: Updated Feasibility Study Project 1 Platinum Mine - More
- October 08, 2009 | Item | E-mail

Fieldex extends its Kipawa's rare earth Lac Sairs property - More
- October 08, 2009 | Item | E-mail

Blue Note Mining Acquires Strategic Brandy Brook Property; Amends its Stock Option Plan - More
- October 08, 2009 | Item | E-mail

Diamond Frank Closes Private Placement of CDN $200,000 - More
- October 08, 2009 | Item | E-mail

Novus Gold Receives Updated Copper Assays from its Dominican Republic Property - More
- October 08, 2009 | Item | E-mail

Commerce Resources Corp. Updates Rare Earth Exploration at Eldor Project - More
- October 08, 2009 | Item | E-mail

Otterburn Announces New Director and Vice President of Management Operations - More
- October 08, 2009 | Item | E-mail

Golden Band Resources Inc.: Thunder Showing Drilling Update - More
- October 08, 2009 | Item | E-mail

J.A.G. Mines Ltd.: Announcement - More
- October 08, 2009 | Item | E-mail

Crosshair Exploration & Mining Corp.: Shareholder Letter Regarding Developments in Labrador - More
- October 08, 2009 | Item | E-mail

NAP Closes Over-Allotment Option for Unit Offering and Private Placement of Flow-Through Shares - More
- October 08, 2009 | Item | E-mail

Metallum Resources Inc. Provides Update in Respect to its Proposed Business Combination With Solfotara Mining Corporation - More
- October 08, 2009 | Item | E-mail

Remington Resources Inc. announces trench sampling program results and begins drill program on Blunt Property - More
- October 08, 2009 | Item | E-mail

American Lithium Minerals Appoints Top Lithium Industry Executive, Ms. Judy Baker as President and CEO - More
- October 08, 2009 | Item | E-mail

Kaminak Reports New High-Grade Gold Occurrences From the Coffee Property: Chip Sample Results Yield 11.45 g/t Au Over 5m - More
- October 08, 2009 | Item | E-mail

High River Gold Announces Change to the Board of Directors - More
- October 08, 2009 | Item | E-mail

Northern Star Announces Further Drill Results From Malartic-Midway Project - More
- October 08, 2009 | Item | E-mail

San Gold Acquires Advanced Stage Gold Properties in Timmins - More
- October 08, 2009 | Item | E-mail

Alamos Gold Inc. Reports Record Third Quarter Production Results, Provides Operations and Exploration Updates, and Notice of Q3-2009 Financial Results and Confe - More
- October 08, 2009 | Item | E-mail

American Creek completes 2009 Treaty Creek drill program - More
- October 08, 2009 | Item | E-mail

Copper Mountain pours first concrete for mill foundations - More
- October 08, 2009 | Item | E-mail

Laurion Mineral Exploration Inc. Announces LOI With San Gold Corporation - More
- October 08, 2009 | Item | E-mail

First Uranium reports on production for quarter ended September 30, 2009 - More
- October 08, 2009 | Item | E-mail

Farallon Resumes Exploration Program On Campo Morado - More
- October 08, 2009 | Item | E-mail

Anglo Swiss Resources Inc. Files NI 43-101 Gold Resource Report on the 257 Level of the Kenville Gold Mine and Expands Resource Estimate - More
- October 08, 2009 | Item | E-mail

Advanced Explorations Announces Expansion of Chinese Off-Take Agreement - More
- October 08, 2009 | Item | E-mail

Pure Nickel Reports Results for the Nine Months Ended August 31, 2009 - More
- October 08, 2009 | Item | E-mail

Skygold Reports Results From Drilling at Spanish Mountain - More
- October 08, 2009 | Item | E-mail

Paladin Energy Ltd: Kayelekera Fatality - More
- October 08, 2009 | Item | E-mail

Caribou Copper Resources Limited - Progress Report on Caribou Dome - More
- October 08, 2009 | Item | E-mail

Wallbridge Mining Finds New Area of Molybdenum, Copper, Gold Mineralization on its Rogers Creek, BC Property - More
- October 08, 2009 | Item | E-mail

Wits Basin Completes Share Exchange Transaction and Forms a Stand-Alone Gold Company - More
- October 08, 2009 | Item | E-mail

HudBay Announces $85 Million Production Ramp to Lalor Deposit - More
- October 08, 2009 | Item | E-mail

New USGS Rare Earth Report Includes Thorium Energy, Inc. - More
- October 08, 2009 | Item | E-mail

Bolero Acquires Gold Property Adjoining International Wayside Gold Mines Ltd. on Barkerville Mountain, BC - More
- October 08, 2009 | Item | E-mail

U.S. Silver Reports on a New Mine Manager, Safety Milestones & Higher Q3 Production - "U.S. Silver Corporation (TSX-V: USA, & OTCQX: CYLPF) (“US Silver” or “the Company”) is pleased to announce that Mr. Andrew Gaudielle has joined U.S. Silver as the new Mine Manager at the Galena and Coeur mines as well as at the adjoining Caladay property. Mr. Gaudielle was most recently employed by Northland Resources Inc. as the Senior Manager of Operations. Mr. Gaudielle has a Mining Engineering degree from University of Arizona and brings to the Company more than 35 years of experience in the mining industry. He will be responsible for managing the mining and milling operations." More
- October 08, 2009 | Item | E-mail

Entree Intersects 60m of 0.44% copper equivalent at Lordsburg, New Mexico - "Entree Gold Inc. (TSX:ETG; NYSE Amex:EGI; Frankfurt:EKA - "Entree" or the "Company") has completed six additional drill holes, totaling 2,316 metres on the Lordsburg copper-gold porphyry project in New Mexico. Significant copper and gold results were intersected in four of the six holes and results are reported in the table below. Of particular note, a near surface intersection in hole EG-L-09-012 returned potentially economic grades of 0.25% copper and 0.15 g/t gold over 94 metres, with a copper equivalent* (CuEq) grade of approximately 0.35%, including 60 metres averaging 0.44% CuEq." More
- October 08, 2009 | Item | E-mail

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