Gold Seeker Closing Report: Gold and Silver Fall About 1% and 2%

	Close	Gain/Loss
Gold	$1102.70	-$9.55
Silver	$17.51	-$0.41
XAU	159.49	-4.66%
HUI	403.68	-4.44%
GDM	1206.36	-4.29%
JSE Gold	2332.84	-4.61
USD	78.38	UNCH
Euro	140.92	-0.09
Yen	110.55	+0.95
Oil	$76.08	-$1.66
10-Year	3.611%	-0.048
T-Bond	118.625	+0.65625
Dow	10389.88	-2.01%
Nasdaq	2265.70	-1.12%
S&P	1116.48	-1.89%

Gold saw slight gains in Asia and then fell about 1% to almost $1100 in London before it rebounded back towards unchanged in early New York trade and then fell back off to a new low of $1088.45 in late morning trade, but it then rallied back higher in the last couple of hours of trade and ended with a loss of just 0.86%. Silver followed a similar rollercoaster ride and ended over 1% from its midday low of $17.32 with a loss of 2.29%.

Euro gold fell to about €781, platinum lost $24 to $1592.50, and copper fell another 6 cents to about $3.29

Gold and silver equities fell over 3% by late morning and remained near their lows into the close.

Report	For	Reading	Expected	Previous
Initial Claims	1/16	482K	440K	446K
Leading Indicators	Dec	1.1%	0.7%	1.0%
Philadelphia Fed	Jan	15.2	18.0	22.5

Oil fell after the Energy Information Administration announced that crude inventories fell 400,000 barrels, gasoline inventories rose 3.9 million barrels, and distillates fell 3.3 million barrels.

The U.S. dollar index traded mostly slightly higher as traders digested economic reports and Obama’s plans for the banks.

Treasuries rose as the Dow, Nasdaq, and S&P fell over 1% more on poor earnings reports and worries over new bank rules proposed by President Obama.

Among the big names making news in the market today were Southwest Airlines, Union Pacific, UnitedHealth, Xerox, Continental, and Goldman Sachs.

“As Ted Butler said in commentary to his private subscribers yesterday... "There was nothing accidental about this move down in silver and gold". And as I, dear reader, have stated many times before [and earlier in this commentary], it's the concentrated short sellers that engineered this whole thing... mainly JPMorgan. There's no way of knowing how long this price decline will last, either. It will be over when 'da boyz' have covered as many shorts as they possibly can. That's why Butler has been screaming about position limits [and phony trading exemptions] in silver for more than 25 years. Maybe something will be decided when the CFTC has its meeting about this very thing in early March.

But, for the moment, JPMorgan et al are giving the 'driver's salute' to everyone... including CFTC chairman Gary Gensler. This a crime-in-progress in every sense of the word... and all we can do is sit and stew... while the police watch the goings-on with their hands in their pockets.”– From Ed Steer’s Gold & Silver Daily, read the full report here.

“U.S. Stock Market – I’m still standing by the door with my bags packed and my bear suit pressed. I continue to believe the “Happy” people can still get the DJIA to around 11,000 if not even somewhat higher. As many of you know, I’ve been looking for such a feat from last spring and said over and over again that the so-called rebounding economy can last to about mid-year 2010 before rolling over again. I believe the “Happy” crowd will try and run with the 4^th quarter GDP that I estimate can come in at 4%+. This should cause one last orgy of “happy days will be here again hype” and allow the market one last day (maybe even week or month) in the sun before my scenario of a Japanese-like era takes hold.

U.S. Dollar – The “countertrend” rally in the U.S. Dollar continues and my target of the 83 area on the U.S. Dollar Index remains. This is not some new-found love for the fundamentals of the United States but merely a corrective phase in a continuing secular dollar bear market. I’ll wait to see the dollar bull boat fill up before suggesting abandon ship (I also expect the gold perma-bears to be packing as many poor souls onto this boat with them).

Precious Metals – I’ve been waiting for one more wash out before declaring in my mind the correction/consolidation is over in gold. I believe my wish came true today. While the risk still remains $1,050, the upside of several hundred dollars higher demands full bullishness again. Silver is also equally attractive while platinum and palladium are due for a correction/consolidation.

Base Metals – I expect them to at best match precious metals performance and continue to suggest over-weighting with precious metals-related investments.

U.S.

Bonds – I’m very bearish and believe one should avoid tying up large amounts of principle dollars at current rates for any length of time past a year or so.”- Peter Grandich, Grandich Letter

Due to the Republican victory in Massachusetts yesterday, the general commentary on F-TV is that the USA looks really good. The MOPE on Greece is going wild.

The dollar is no safe haven and will not guarantee the maintenance of buying power.

The large purchases by non US entities of US Treasuries in the TIC report smells like Limburger cheese. The US dollar economic recovery is nothing more than pixie dust.

To sustain a US economic recovery, there first needs to be an economic recovery to sustain.

The Fed is locked into QE and in all probability is supporting the US Treasury market via the Caymans and other countries internationally.

Buy the dollar and sell gold? You have to be kidding. That is the madness of the crowd and the actions of the Crimex in paper gold.”- Jim Sinclair, JSMineset.com

As you know by now, China announced last evening that they intended to tighten credit availability in an attempt to stave off “overheating” in their economy. The markets today interpreted this event as evidence that inflation fears are unwarranted. Thus the bids beneath the gold market evaporated, allowing the bears to push prices low enough to take out some of the downside sell stops.

While today’s markets have become the domain of the 3 minute bar chart traders with short term factors creating excessive volatility as the norm, as investors it still behooves one to try to understand the longer term macroeconomic picture.

The Chinese are more than concerned about the long term viability of the US Dollar due to the recklessness of its stewards here in the US. The recent TIC reports reveal Chinese net selling of US Treasuries. Having surpassed Japan as the largest holder of US Treasury debt, this is not insignificant as those actions speak to their suspicions about the Dollar’s fate and the effect on their reserves.

If you recall not that long ago, India surprised the entire gold market by scooping up some 200 tons or so of gold. That drove the gold price up through the $1,000 level – a level which it has not seen again. I believe that India’s actions caught China flatfooted as it is no secret that they are actively looking to acquire a larger percentage of gold in their reserves as they slowly move out of their lopsided holdings of US Dollar based debt.

Having been unable to secure gold at the price that India did, and having a desire to acquire more of the metal at a better price, it is my opinion that the Chinese authorities completely understood in advance the effect that their announcement would have on the commodity markets and on gold. China is still looking to secure stockpiles of strategic commodities as their long term growth strategy requires sufficient quantities of such to make them well supplied. The Chinese do not chase market prices higher – they buy stuff when no one wants it or when the hedge fund managers in the West are throwing it away.

Gold may well move lower from current levels but the Chinese will be there to greet its potential descent as will India, which also wants to own more of the metal. The amount that they are looking to acquire is not miniscule. Remember that when you hear chatter about the demise of gold.

Remember also that a growing number of US states are for all practical purposes, fiscally bankrupt, with rising pressure mounting in those states to receive some sort of Federal bailout. Unemployment levels that remain stubbornly high guarantee lower tax revenues for the Federal Government, and state governments in those cases which rely upon a state income tax as a primary means of revenue. Tighter credit restrictions here in the US, as lenders seek to cover their own rear ends, means that consumers will have more difficulty increasing purchases of larger ticket items. When you see stock analysts upgrade and then issue buy recommendations for McDonalds based on cash strapped consumers looking for food bargains who are bypassing more expensive, higher end restaurants, rest assured that disposable income is not exactly proliferating.

All of this translates to an economy that is moving along in that “L” shaped “recovery” that I have mentioned before. A plunge, followed by a long period of mediocre or subpar growth marked by high levels of unemployment and huge amounts of government deficit spending and massive QE by the Fed. How this quantifies a bull market in the Dollar eludes me.”- Dan Norcini, More at JSMineset.com

COMEX Gold Trust (IAU) Total Tonnes in Trust: 79.30 - No change from yesterday’s data.

Silver Trust (SLV) Total Tonnes in Trust: 9,339.19 - No change from yesterday’s data.

Royal Gold’s (RGLD) loan facility agreement, Rubicon’s (RBY) exploration agreement, Golden Star’s (GSS) gold sales, Nevsun’s (NSU) construction update, New Gold’s (NGD) mine update, Freeport’s (FCX) fourth quarter results, IAMGOLD’s (IAG) operating outlook, and Silver Dragon’s (SDRG.OB) property sales 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 Canyon Proposes Additional Private Placement for Up to $360,000 - More
- January 21, 2010 | Item | ShareThis

Royal Gold Enters into a New $100 Million Term Loan Facility Agreement - "Royal Gold, Inc. (NASDAQ:RGLD - News)(TSX:RGL - News), a leading precious metals royalty company, today announced that it has obtained a new $100 million secured term loan from HSBC Bank USA, National Association, which will be funded in conjunction with the closing of the Plan of Arrangement between Royal Gold and International Royalty Corporation (“IRC”), as announced on December 18, 2009, whereby Royal Gold would acquire all of the issued and outstanding shares of IRC. HSBC Securities (USA) Inc. acted as Sole Lead Arranger for the loan." More
- January 21, 2010 | Item | ShareThis

Rubicon and Lac Seul First Nation Sign Exploration Accommodation Agreement - "Rubicon Minerals Corporation ("Rubicon") (RMX.TSX: RBY.NYSE-AMEX) is pleased to announce that it has entered into an Exploration Accommodation Agreement ("EAA") with Lac Seul First Nation ("LSFN") covering Rubicon's exploration properties in lands considered by LSFN to be their traditional territory including Rubicon's flagship Phoenix Gold Project in Red Lake." More
- January 21, 2010 | Item | ShareThis

Philex Mining Corporation Acquires Additional Shares in FEC Resources Inc. - More
- January 21, 2010 | Item | ShareThis

Golden Star Reports Record Gold Sales for 2009 - "Golden Star is pleased to announce that it sold 409,902 ounces of gold in 2009, an increase of 38.5% over the gold sales of 2008. For 2009, the Wassa mine sold a total of 223,848 ounces, an increase of 78.5% over gold sales in 2008. At the Bogoso mine, 2009 gold sales totaled 186,054 ounces, an increase of 9.1% over gold sales in 2008. The costs associated with this production are subject to audit, and are in line with our previously released 2009 guidance of $565 per ounce for the year." More
- January 21, 2010 | Item | ShareThis

Aldrin Adds Flow-Through Shares to $6 Million Brokered Private Placement - More
- January 21, 2010 | Item | ShareThis

Solitaire Minerals Corp. Announces Private Placement - More
- January 21, 2010 | Item | ShareThis

AME BC's 2009 E.A. Scholz Award Recipients - More
- January 21, 2010 | Item | ShareThis

Eastmain Resources Inc. - Eau Claire Assays & Metallurgy Up to 12.07 g/t Au over 5.5 m 95.7 to 98.8% Gold recoveries - More
- January 21, 2010 | Item | ShareThis

Gold Standard Mining Corp. Engages Rodman & Renshaw, LLC as its Financial Advisor - More
- January 21, 2010 | Item | ShareThis

Solitaire Minerals Corp. Planning an Extensive Ground Program Bordering Imperial's Red Chris Project - More
- January 21, 2010 | Item | ShareThis

Red Hill Energy Inc. and Prophecy Resource Corp. Announce Business Combination, Consolidating Quality Advanced Projects - More
- January 21, 2010 | Item | ShareThis

Baffinland Reports Impressive Assay Results From the 2009 Drill Program and Details Plans for 2010 Deposit No. 5 Strike Length Expanded to Almost 6 Kilometres - More
- January 21, 2010 | Item | ShareThis

Copper Ridge Appoints new CFO and Corporate Secretary - More
- January 21, 2010 | Item | ShareThis

Golden Predator Options Eureka, Panorama, and three other Yukon Properties - More
- January 21, 2010 | Item | ShareThis

Australia to rejig mine tax, boost revenue-report - "Australia may rejig the way it taxes mining operations to raise more money under sweeping tax reforms, a newspaper report said on Thursday, hitting mining shares in London." More
- January 21, 2010 | Item | ShareThis

Nevsun Resources Ltd.: Bisha Update - "The construction of the Bisha mine is progressing well and is overall approaching fifty percent (50%) completion. Pictures of construction progress can be found on our Nevsun web site at http://www.nevsun.com/properties/photo_gallery/." More
- January 21, 2010 | Item | ShareThis

Imperial Metals Corporation: Supreme Court of Canada Ruling - More
- January 21, 2010 | Item | ShareThis

Drilling to Begin in March on Kiska's Whistler Project, Alaska - More
- January 21, 2010 | Item | ShareThis

Dia Bras Initiates Regional Gold Exploration Programs on Six Projects Covering 164,618 Hectares - More
- January 21, 2010 | Item | ShareThis

SEMAFO Initiates Feasibility Study of Wona Mineralization at Depth - More
- January 21, 2010 | Item | ShareThis

Rochester Resources Ltd.: President's Letter to Shareholders - More
- January 21, 2010 | Item | ShareThis

Yankee Hat Announces Operations Plan for Its Gold, Rare Earths and Tungsten Properties - More
- January 21, 2010 | Item | ShareThis

Gryphon Gold Responds to Announcement by Bolero Resources - More
- January 21, 2010 | Item | ShareThis

Regal Resources Inc. to Acquire Arizona Copper-Molybdenum Project - More
- January 21, 2010 | Item | ShareThis

Minera IRL Limited: Corihuarmi Gold Mine Exceeds Expectations in 2009 - More
- January 21, 2010 | Item | ShareThis

Moneta commences a 30,000 metre exploration program in its centenary year - More
- January 21, 2010 | Item | ShareThis

Vanstar Acquires Rare-Earth Element Properties - More
- January 21, 2010 | Item | ShareThis

Yorbeau Initiates 2010 Drilling Program With Two Drill Rigs - More
- January 21, 2010 | Item | ShareThis

SNL releases more drilling results on Dansey Project - More
- January 21, 2010 | Item | ShareThis

SNS Silver Intercepts Wide Spread Mineralization in First Three Holes at Emerald Lake Gold Project - More
- January 21, 2010 | Item | ShareThis

Duncastle Reports on 2009 Yankee-Dundee Results and Plans 2010 - More
- January 21, 2010 | Item | ShareThis

Metals Creek Resources Corp. Extends Mineralization to Depth at Thomas Ogden Zone in Timmins, Ontario - More
- January 21, 2010 | Item | ShareThis

Medoro Announces Changes to its Board of Directors - More
- January 21, 2010 | Item | ShareThis

Copper Fox awards feasibility study on Schaft Creek project - More
- January 21, 2010 | Item | ShareThis

Geologix Aquires 100% Interest in Peruvian Properties - More
- January 21, 2010 | Item | ShareThis

Tara Minerals Discovers New Vein Grading 622 g/t Silver, 26.02% Zinc, and 9.56% Lead - More
- January 21, 2010 | Item | ShareThis

INV Provides 2010 Outlook - More
- January 21, 2010 | Item | ShareThis

Farallon Announces Fourth Quarter 2009 Operating Results - More
- January 21, 2010 | Item | ShareThis

Equinox Preliminary Lumwana Production Results for 4th Quarter and Full Year 2009 - More
- January 21, 2010 | Item | ShareThis

Nevada Copper Intersects 31.1 Meters of 2.45% Copper - More
- January 21, 2010 | Item | ShareThis

Bridgeport Announces Commencement of Exploration on Its Rosario Copper-Gold Property - More
- January 21, 2010 | Item | ShareThis

PC Gold Inc.: Conduit Continues to Deliver High Grade Gold Values Near Surface and First Hole of Winter Exploration Program Discovers a New Vein - More
- January 21, 2010 | Item | ShareThis

Amazon Mining Completes First Drill Program at Cerrado Verde Project - More
- January 21, 2010 | Item | ShareThis

White Mountain Test Work Succeeds in Recovery of Feldspar From Rutile Flotation Tailings - More
- January 21, 2010 | Item | ShareThis

Bannerman Releases Quarterly Activities Report For the Period Ended 31 December 2009 - More
- January 21, 2010 | Item | ShareThis

ENCORE RENAISSANCE Encounters New Vein and Adds a Second Shift at Mine - More
- January 21, 2010 | Item | ShareThis

Medusa Mining Limited: Quarterly Activities Report Period Ended 31 December 2009 - More
- January 21, 2010 | Item | ShareThis

Greystar Resources Announces Drill Results From the Los Laches Area at Angostura; 86 Metres Grading 2.92 Grams/Tonne Gold - More
- January 21, 2010 | Item | ShareThis

Kinti Mining (KMLD) Updates Shareholders - More
- January 21, 2010 | Item | ShareThis

Silver Dragon's Sino-Top Joint Venture Signs Definitive Agreement to Sell Saihanaobao and Liangdi Properties to Chinese State-Owned Entities for US$4.2 Million - "Silver Dragon Resources Inc. (OTCBB:SDRG - News) is pleased to announce the sale of its Saihanaobao and Liangdi properties for total consideration of RMB28.5 million, or US$4.2 million. Saihanaobao and Liangdi were sold by Sanhe Sino-Top Resources & Technologies, Ltd. ("Sino-Top"), a Chinese entity in which Silver Dragon has a 40% equity interest. Sino-Top was recently awarded the prestigious Prospector/Explorer of the Year Award at the 2009 China Mining Congress & Expo for its Dadi Silver Polymetallic Project (see press release dated October 22, 2009)." More
- January 21, 2010 | Item | ShareThis

New Gold Provides Update on Cerro San Pedro - "New Gold Inc. ("New Gold") (TSX and NYSE AMEX-NGD) today provides an update on its Cerro San Pedro mine and the upcoming hearing dates related to the appeals filed at various courts by the company resulting from a Mexican Federal Court's September 21, 2009 ruling that nullified the Environmental Impact Statement for the company's Cerro San Pedro mine." More
- January 21, 2010 | Item | ShareThis

Freeport-McMoRan Copper & Gold Inc. Reports Fourth-Quarter and Year Ended December 31, 2009 Results - "Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX - News) reported fourth-quarter 2009 net income attributable to common stock of $971 million, $2.15 per share, compared with a net loss of $13.9 billion, $36.78 per share, for the fourth quarter of 2008. After adjusting for special items totaling $14.0 billion, $36.84 per share, fourth-quarter 2008 adjusted net income totaled $23 million, $0.06 per share." More
- January 21, 2010 | Item | ShareThis

IAMGOLD Delivers on 2009 Guidance; Provides 2010 Operating Outlook - "IAMGOLD Corporation (TSX:IMG - News)(NYSE:IAG - News)(BOTSWANA: IAMGOLD) ("IAMGOLD" or "the Company") today announced 2009 gold production of 939,000 ounces in line with guidance. IAMGOLD also provided its operating outlook for 2010 including production, cash cost(1) and capital expenditure guidance." More
- January 21, 2010 | Item | ShareThis

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