Gold Seeker Weekly Wrap-Up: Gold and Silver Fall Over 3% on the Day but End Near Unchanged on the Week

	Close	Gain/Loss	On Week
Gold	$1168.80	-$46.90	-0.29%
Silver	$18.45	-$0.60	+1.15%
XAU	181.96	-5.48%	-0.85%
HUI	470.90	-5.23%	-0.09%
GDM	1394.72	-5.17%	-0.03%
JSE Gold	2633.24	-81.11	+0.96%
USD	75.80	+1.10	+1.12%
Euro	148.47	-1.96	-0.77%
Yen	110.53	-2.72	-4.12%
Oil	$75.47	-$0.99	-0.76%
10-Year	3.483%	+0.103	+7.80%
Bond	119.8675	-1.28125	-2.70%
Dow	10388.22	+0.21%	+0.76%
Nasdaq	2194.35	+0.98%	+2.61%
S&P	1105.89	+0.54%	+1.32%

Gold fell only a little over 1% to around $1200 in Asia and London, but it then fell much further throughout most of trade in New York and ended near its low of $1167.02 with a loss of 3.86%. Silver followed a similar pattern and ended near its low of $18.412 with a loss of 3.15%. Both metals have also fallen to new lows in after hours access trade.

Euro gold fell to about €786, platinum lost $47 to $1440, and copper remained at about $3.22.

Gold and silver equities fell over 7% by midday before they rebounded slightly at times in afternoon trade, but still ended with over 5% losses.

Report	For	Reading	Expected	Previous
Nonfarm Payrolls	Nov	-11K	-125K	-111K
Unemployment Rate	Nov	10.0%	10.2%	10.2%
Average Workweek	Nov	33.2	33.1	33.0
Hourly Earnings	Nov	0.1%	0.2%	0.3%
Factory Orders	Oct	0.6%	0.0%	1.6%

Next week’s economic highlights include Consumer Credit on Monday, Wholesale Inventories on Wednesday, Initial Jobless Claims, the Trade Balance, and the Treasury Budget on Thursday, and Export and Import Prices, Retail Sales, Michigan Sentiment, and Business Inventories on Friday.

Oil rose in early trade on increased demand expectations, but it then fell back off in later trade as the U.S. dollar index rose markedly and treasuries fell on the view that the better than expected jobs data may influence the fed to raise interest rates sooner than previously thought.

The Dow, Nasdaq, and S&P rose over 1% on the encouraging jobs news at the open, but stocks then fell back near unchanged by midday and ended only slightly higher as traders began to worry about rising interest rates.

Among the big names making news in the market Friday were GM, Exxon, Bank of America, Kraft and Cadbury, and Capital One.

“Thursday's data shows that there was a very small change in GLD... the gold ETF... which was up 8,893 ounces. But in the silver ETF...SLV... it was another red-letter day... as another big chunk got taken into inventory. This time it was a paltry 3,634,473 ounces. Another half a dozen shipments of this size and they actually might get caught up. Since October 13th... less than two months ago... 29.0 million ounces have been brought into the SLV. That's equivalent to 75% of the U.S.A.'s entire yearly silver production. To put it another way, that's equal to all the silver eagles that will be sold by the U.S. Mint during the entire 2009 calendar year! And that, dear reader, is a lot!

Talking about the U.S. Mint, I was surprised to see an update from them yesterday... but it wasn't silver eagles that were updated, it was factional sizes of gold eagles... bullion coin sizes that the mint hasn't produced since this time last year. I'm not going to break down the numbers but, in total, it added up to 58,000 ounces of gold... an amount not to be sneezed at. No one-ounce gold eagles were sold. The mint also reported selling another 9,000 24K gold buffaloes as well.”– From Ed Steer’s Gold & Silver Daily, read the full report here.

1. The temporary high of this rally was $1224.00 to $1224.10 in the cash market 3 times.

2. Remember the day that unemployment figures went from 9.5% to 9.4%? It was heralded as the end of the continuous increase in that figure.

5. Regarding articles that claim gold has topped, the Chinese will be buyers on the decline if they can make that purchase and save face.

6. This is a boon to the Chairman of the Federal Reserve as his supporters can claim that changing leadership when things are turning is a greater risk than maintaining the present leadership at the Fed.

7. If Bernanke is confirmed, which is reasonable to assume, you can be sure that the pressures for policy will be generated via the Treasury.

8. Clearly this economy is bouncing along a bottom and has decelerated its decline, but is doing so poorly in light of the over the top liquidity placed into the world economy. This is how all figures, market related, react in a trend. That is all.

9. Respectfully, this is gold so if you cannot stand the heat in the kitchen then you had better leave. Buying dollars here has no real fundamental basis other than a few days at best.

The MOPE (Management of Perspective Economics) accelerated two trading days ago is now rising to spiritual levels. The exception to this is at the US Labor Department. They suffered a major loss of standing when they went wild over the drop from 9.5% to 9.4% as the end of increasing unemployment.

I am interested in following the analysis of this number by paying attention to www.shadowstats.com.

We are certainly living in a strange world when the payroll numbers can induce comments such as the following from a market analyst at a major bank: “strong, strong, strong”. Excuse me – how does a number that shows the employment rate including the underemployment rate at 17.2% of the population rank as “strong”? Then again, I probably need an adjustment in my mind to allow me to see more clearly. Back when I was in school in what now seems ages ago, when nearly 1/5 of the population is either out of work or looking for full time work and cannot secure it or stuck in part time work unable to move to full time, that was not considered a healthy economy. It certainly would not have elicited the word, “strong”, thrice repeated.

Either way, in a reversal from the current psychology, traders bought the dollar instead of selling it as they moved away from risk trades which is another way of saying that the Dollar carry trade was suspended today. The new chatter is that the reading was so unexpectedly “strong”, that the Fed is going to have to rethink their current low interest rate strategy and will soon raise rates. Oh sure they will…

Gold saw a fair amount of long liquidation associated with the stronger dollar which generated selling across pretty much the entirety of the commodity complex. Even the grains were socked today.

Do not let days such as this rattle you. Keep in mind the old adage: “the trend is your friend”. Ignore all the rest of the day to day gyrations. Those are made for short term oriented traders who think that they can outrun the hedge fund black boxes. Good luck is all that I can say to that.

AS far as the Dollar rally goes, in looking over the charts, it would need a solid weekly close above the 76.50 level to generate some more buying enthusiasm from a technical perspective. Until it does that, rallies will attract selling.

Keep in mind that Central Banks are now buyers of gold and will not change their new philosophy because of a short term chart signal. That buying will undergird the gold market as it moves lower into technical support levels.

As far as those analysts ignorantly proclaiming that gold is in a bubble, they have no idea what a chart pattern of a market in a bubble looks like. Gold’s rise has been steady and strong with it picking up momentum only in the last month or so. The market is taking a well deserved rest, especially as we move towards year end and traders begin to square positions in front of the holidays. Besides, if gold is in a bubble, Central Banks such as India and China, who are looking to acquire more of the metal, must be dolts as well.

Nothing short of major changes to US deficit spending and US monetary policy which also deals with the structural problems of gargantuan indebtedness is going to cure what ails the Dollar. The US wants, nay, needs a weaker Dollar to enable to deal with its debt problems. Dollar strength will attract the attention of those nations looking to lighten up on their Dollar holdings and to do so in a matter which is least disruptive to the Foreign Exchange markets. Translation – Dollar strength will be sold.

Shortsightedness is the sickness that kills investors. Be wise and do not adopt the convictions of the short term one minute bar chart readers for they have none.”- Dan Norcini, More at JSMineset.com

COMEX Gold Trust (IAU) Total Tonnes in Trust: 82.99: +1.22 change from yesterday’s data.

Silver Trust (SLV) Total Tonnes in Trust: 9,514.35: +113.05 change from yesterday’s data.

ITH’s (THM) drill results, Golden Star’s (GSS) priced offering, Exeter’s (XRA) exercised over-allotment option, Barrick’s (ABX) blocked mine project, Gold Fields’ (GFI) filed 20-F, Eldorado’s (EGO) combination with Sino Gold Mining Limited, Silvermex’s (SMR.V) completed project acquisition, and Silver Standard’s (SSRI) commercial production achievement were among the big stories in the gold and silver mining industry making headlines Friday.

Winners & Losers tracks NYSE and AMEX listed gold and silver mining stocks that trade over $1.

Metalline and Dome Agree to Transaction Terms - More
- December 04, 2009 | Item | E-mail

Jazz closes private placement - More
- December 04, 2009 | Item | E-mail

Adventure Gold Private Placement Offering: Closing of First Tranche - More
- December 04, 2009 | Item | E-mail

Aldridge Comments on Unusual Market Activity - More
- December 04, 2009 | Item | E-mail

Chancery Resources Announces Operations update forecast and grow opportunities for 2009 - More
- December 04, 2009 | Item | E-mail

ITH's Coffee Dome Drilling Intersects Gold System 17 Kilometres East of Fort Knox Mine, Alaska - "International Tower Hill Mines Ltd. ("ITH" or "the Company") - (TSX:ITH - News)(AMEX:THM - News)(Frankfurt:IW9 - News) is pleased to announce the results from its fall 2009 drilling campaign at the Coffee Dome project, Alaska. Five core holes, totalling 1356 metres, were drilled testing two of the three priority target areas, UAF and Zesiger (Figure 1)." More
- December 04, 2009 | Item | E-mail

Chancery Resources Announces Operations update forecast and grow opportunities for 2009 - More
- December 04, 2009 | Item | E-mail

Conquest announces private placement financing of up to $4.0 million - More
- December 04, 2009 | Item | E-mail

SMW Gold Announces Assay Results for Gold Deposits in Egypt - More
- December 04, 2009 | Item | E-mail

Aurcana Closes Sale of Rosario Project - More
- December 04, 2009 | Item | E-mail

Compass Gold to Acquire Interest in Mali Gold Projects - More
- December 04, 2009 | Item | E-mail

Silvermex Completes Acquisition of Rosario Project - "Silvermex Resources Ltd. (TSX-V:SMR - News) (the "Company" or "Silvermex") is pleased to announce that it has completed the acquisition of all of the shares of Aurcana de Mexico S.A. de C.V. from Aurcana Corporation (TSX-V:AUN - News) and has thereby acquired the Rosario Project located in Sinaloa, Mexico." More
- December 04, 2009 | Item | E-mail

Lake Shore Gold Announces Closing of Private Placement Financing - More
- December 04, 2009 | Item | E-mail

Mantis Mineral Corp. is pleased to announce that the company is in the process of soliciting bids from drill contractors for a 2,500-meter diamond drill program - More
- December 04, 2009 | Item | E-mail

Eldorado Gold Corporation: Federal Court of Australia Approves Scheme of Arrangement - "Eldorado Gold Corporation ("Eldorado" or the "Company") (TSX:ELD - News)(NYSE:EGO - News) is pleased to announce that on December 4, 2009 the Federal Court of Australia has issued an order approving Eldorado's proposed combination with Sino Gold Mining Limited ("Sino Gold") pursuant to schemes of arrangement under Australian law (the "Transaction")." More
- December 04, 2009 | Item | E-mail

VHGI Gold Contracts for Treasure Gulch Development Work & Retains Stock Analyst; VHGI Clarifies Potential Asset Sale - More
- December 04, 2009 | Item | E-mail

Oroco Resource Corp. Announces Closing of Final Tranche of Private Placement - More
- December 04, 2009 | Item | E-mail

SNS Silver Announces $750,000 Flow Through Financing - More
- December 04, 2009 | Item | E-mail

Golden Heart Gold Deposit Updated Resource Estimate - Increased Grade - More
- December 04, 2009 | Item | E-mail

Avion Issues Correction to Production Update - More
- December 04, 2009 | Item | E-mail

Moneta completes $4.2 million non-brokered private placement - More
- December 04, 2009 | Item | E-mail

Gold-Silver-Copper prospects staked by Azimut expand the REX Property in Nunavik, Quebec - More
- December 04, 2009 | Item | E-mail

Benton Starts Drilling in Heart of Timmins Gold Camp - More
- December 04, 2009 | Item | E-mail

Acme Resources announces change of name and share consolidation - More
- December 04, 2009 | Item | E-mail

JOURDAN Appoints Marcel Bergeron to the Board of Directors - More
- December 04, 2009 | Item | E-mail

Kria Resources Announces $3 Million Private Placement Financing - More
- December 04, 2009 | Item | E-mail

Lara and Sprott Agree Asset Swap and $1 Million Private Placement - More
- December 04, 2009 | Item | E-mail

Largo Resources Provides Corporate Update to Shareholders - More
- December 04, 2009 | Item | E-mail

Galway announces start of drilling at its California gold project in Colombia - More
- December 04, 2009 | Item | E-mail

Red Metal Resources Announces Farellon Drill Results: Highlights Include 2.57% Copper and 4.16 g/t Gold over 5 Metres - More
- December 04, 2009 | Item | E-mail

Golden Star Announces Pricing of US$75 million Common Share Offering - "Golden Star Resources Ltd. ("Golden Star" or the "Company") (TSX:GSC - News)(AMEX:GSS - News)(GSE: GSR) today announced that it has priced an offering (the "Offering") of 20,000,000 common shares at a price of US$3.75 per share for gross proceeds of US$75,000,000. The Company has granted the underwriters an option, exercisable for a period of 30 days following the closing of the Offering, to purchase up to 3,000,000 additional common shares at a price of US$3.75 per share for additional gross proceeds of US$11,250,000, to cover over-allotments, if any." More
- December 04, 2009 | Item | E-mail

Exeter Resource Corporation - Over-allotment option exercised in full from recent equity financing - "Exeter Resource Corporation (AMEX:XRA, TSX:XRC, Frankfurt: EXB or the "Company") is pleased to announce that the syndicate of underwriters in its recently announced equity financing that closed on November 26, 2009 has exercised the over-allotment option (the "Option") granted to them. Pursuant to the Option, the syndicate has acquired an additional 1,282,500 common shares of the Company (the "Shares") for gross proceeds to the Company of $7,502,625 bringing the aggregate gross proceeds of the equity financing to $57,520,125." More
- December 04, 2009 | Item | E-mail

Barrick Gold Corporation: Appeals Court Remands Decision to District Court on Cortez Hills Project - "Barrick Gold Corporation (NYSE:ABX - News)(TSX:ABX - News) announced that the United States Court of Appeals for the Ninth Circuit released an opinion on December 3, 2009, with respect to the U.S. Bureau of Land Management (BLM) approval of Barrick's Cortez Hills project in Nevada. The Appeals Court ruled that the order of the District Court denying preliminary injunctive relief and permitting construction of the project is affirmed in part and reversed in part. The Company is currently evaluating the decision and considering its legal options." More
- December 04, 2009 | Item | E-mail

Fronteer Development Group Inc./Independent Study: Michelin Uranium Project to Generate Regional Benefits of $2.9B in Income, $1.82B in Tax Revenues - More
- December 04, 2009 | Item | E-mail

Silver Standard Resources Inc.: Pirquitas Silver Mine Achieves Commercial Production - "The mill is processing oxide and transitional ore which to date is exceeding the company's expectations for this material. Silver recoveries are exceeding 50% and silver concentrate grading in excess of 22 kilograms of silver per tonne is being produced. The mine is operating as planned and the mill will operate on oxide and transitional ore until the sulphide ore currently being exposed from the open pit is processed in the first quarter of 2010." More
- December 04, 2009 | Item | E-mail

Gold Fields Announces Form 20-F Filing - "Gold Fields Limited (Gold Fields) (JSE, NYSE, NASDAQ Dubai: GFI) announces that it has filed its annual report on Form 20-F for the year ended 30 June 2009 with the U.S. Securities and Exchange Commission." More
- December 04, 2009 | Item | E-mail

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