Gold Seeker Closing Report: Gold and Silver Reverse Overnight Losses and End Only Slightly Lower

	Close	Gain/Loss
Gold	$1117.80	-$1.40
Silver	$16.02	-$0.05
XAU	165.29	+1.42%
HUI	414.80	+1.03%
GDM	1244.13	+0.96%
JSE Gold	2264.89	-46.00
USD	80.42	UNCH
Euro	136.14	+0.15
Yen	109.61	-0.01
Oil	$79.06	+$1.73
10-Year	3.803%	+0.061
T-Bond	116.1875	-0.625
Dow	10392.0	+0.81%
Nasdaq	224171	+0.69%
S&P	110675	+0.66%

Gold fell as much as $21.45 to $1097.75 in Asia before it climbed back higher in London and New York and rose to see a gain of $4.55 at as high as $1123.75 by about 11AM EST, but it then fell back off into the close and ended with a loss of 0.13%. Silver fell to $15.663 and rose to $16.253 before it also fell back off a bit in late trade and ended with a loss of 0.31%.

Euro gold rose to a new all-time high above €822, platinum lost $15 to $1516.50, and copper gained nearly 5 cents more to about $3.29.

Gold and silver equities rose over 2% by midmorning before they fell back near unchanged by early afternoon, but they then bounced back higher in the last few hours of trade and ended with about 1% gains.

Report	For	Reading	Expected	Previous
Initial Claims	2/13	473K	438K	442K
PPI	Jan	1.4%	0.8%	0.4%
Core PPI	Jan	0.3%	0.1%	0.0%
Leading Indicators	Jan	0.3%	0.5%	1.2%
Philadelphia Fed	Feb	17.6	17.0	15.2

Tomorrow at 8:30AM EST brings CPI for January expected at 0.1% and Core CPI expected at 0.1%.

Oil climbed back above $79 a barrel on news that distillate inventories surprisingly fell 2.9 million barrels, crude inventories rose 3.1 million barrels, and gasoline inventories rose 1.7 million barrels.

The U.S. dollar index remained near unchanged while treasuries fell on overall decent economic data that support higher interest rates sometime in the future.

The Dow, Nasdaq, and S&P rose almost 1% as traders ignored most of today’s rather disappointing economic reports and instead concentrated on the encouraging manufacturing data from the Philadelphia Fed.

Among the big names making news in the market today were MGM Mirage, Goodyear, Hormel, Wal-Mart, and Fairfax.

“I must admit that I'm really suspicious about the timing of these IMF gold 'sales'... if that's what they really are. Tuesday [at the close of trading] was the cut-off for Friday's Commitment of Traders report... and anything reported after that will have to wait until the following Friday's report. I believe that next Tuesday is options expiry for the March contract in both gold and silver. March is not a big delivery month for gold, but it certainly is for silver. The other thing that stinks to high heaven is the fact [that I mentioned yesterday] that both gold and silver had just broken through significant moving averages... the 50-day for gold... and the 200-day for silver. The HUI was looking pretty good too. Now this!

As you know, dear reader, the bullion banks are great at pulling these sorts of rabbits out of the hat... it's one of their favourites when there's a major change in direction in the precious metals market. I'm just wondering whether the bullion banks will use this opportunity to smash both metals one more time. The 200-day moving average in gold was never violated on this downside move... and a 'failure' of the above mentioned moving averages may just give them the opportunity to 'do the dirty' again. The 200-day moving average for gold is $1,025.

But unless we take out the previous lows that we had earlier this month, we won't see a lot of technical fund selling... so if this is the plan [and I'm only thinking out loud at the moment], we may have some more pain to endure before we're out of the woods to the downside.

I'd love to be wrong about all this, but after a decade of watching every twitch in the gold and silver market, I'm well aware that that possibility exists.”– From Ed Steer’s Gold & Silver Daily, read the full report here.

After the pit session trade had already closed for the day in New York, news came out that the IMF was planning on selling the remainder of 403.3 tons of gold, 191.3 to be exact, on the open market. Gold was immediately taken down hard in the thin trading conditions, dropping more than $14 on the day.

There are several things about this that should be noted. First is the timing – it comes on the heels of a resumption of the uptrend in gold with many technical indicators having moved into the buy mode. It also coincides with another brand new all time high in the price of Gold priced in Euro terms at the London PM Fix.

Those of us who have been around the gold market long enough know full well that the timing of this announcement is therefore no coincidence but was timed to attempt to derail the returning bullish sentiment in the yellow metal. Why announce the sale publicly which is guaranteed to receive a lower price for the metal than if the IMF had just quietly sold the metal into the market. This is reminiscent of then Prime Minister Gordon Brown’s announcement that England intended to sell its hoard of gold. That guaranteed that Britain would receive the lowest price possible.

Secondly, China was one-upped by India’s purchase of some 200 tons of gold late last year and got caught flat footed. The spin on this gold sale is that the IMF announcing that they would sell the gold into the open market means that Central Bank demand for gold is not as vibrant as the market was led to believe. That is an interesting tall tale. The simple truth is that Central Banks do not generally buy gold and announce their intentions to do so beforehand. Neither do they tend to buy when prices are moving higher as the momentum based hedge funds do. Time and time again we have seen that the CBs buy gold during episodes of price weakness. Once news hit the wire last year that India had bought 200 tons of gold, the price never looked back and shot straight to $1220+. Any Asian Central Bank that missed buying the gold as a result is certainly not going to panic and rush into the market to obtain it. They are waiting for lower prices where they will acquire the metal. To state therefore that Central Bank demand for gold must not be as robust as originally thought is quite shallow analysis.

My view is that this announcement means nothing in the longer term scheme but was rather a cheap trick to take the market lower. We have already seen this week how some noted elites were pooh-poohing gold and trash talking the metal all the while they were acquiring a position in it. Nothing ever changes in this gold market. It is still one of the least transparent markets on the planet and perhaps the most prone to official sector interference.

Do not be disturbed by the news. It is probably going to be a one or two day wonder and then that will be it. Gold will then go back to trading the currencies taking its cues from the action in the Dollar.

Incidentally, this sale is supposedly going to be phased in over an extended period of time. Rest assured, the IMF would love nothing better than to sell the whole 191 tons in one lump sum to another Asian Central Bank.

“I will wager $50,000 U.S. Dollars that gold closes above $1,200 before below $1,000 basis the Comex spot price. I challenge gold perma bears like Kaplan, Nadler and Soros to be the first to put their money up where my mouth is.

I welcome any and all media to make this offer known. It’s good for 48 hours from this post! This challenge was made at 11:10PM EST February 17, 2010

Short and to the point. This news does zilch to my outlook. In fact, it could actually speed up the move to not only nominal new highs, but to my target for 2010 of $1,300 to $1,500.

First, this is not new news. Second, even if this doesn’t lead to someone or group buying part or all of the proposed amount, it’s my understanding that the amount is going to be part of the already known agreed upon amount the Washington Accord group had in its powers to sell anyway. Third, their sales, which have been less than what many first thought they would be anyway, have become almost non factors.

Such shall be the case here only the sale removes one of the last bullets for the perma-bears.

While the perma-bears will fill the airwaves with their bearish assessments, don’t lose sight of how wrong they continue to be. A case in point is this gentleman named Leonard Kaplan. I publicly challenge Mr. Kaplan to show any significant period of time over the last decade when he was truly bullish on gold. Like another naysayer we know who has not even managed to match the performance of a broken clock in being on the right side of gold for the last decade (and has ducked all challenges to debate him in many different forums), these naysayers have been “the” best sources to bet against. This time won’t be any different.

Mark this time down. It will in the not-too-distant future be viewed as yet another buying opportunity in the “Mother” of all secular bull markets.

Note: Change in Total Tonnes from Tuesday’s data: SPDR added 3.046 tonnes and the LSE subtracted 0.62 tonnes.

COMEX Gold Trust (IAU) Total Tonnes in Trust: 77.44 - No change from yesterday’s data.

Silver Trust (SLV) Total Tonnes in Trust: 9,446.40 - No change from yesterday’s data.

Barrick’s fourth quarter results and spin off plans, Golden Star’s (GSS) increased mineral reserves, Exeter’s (XRA) update on its proposed spin-out, Fronteer’s (FRG) drill results, Silvermex’s (SMR.V) closed private placement, ECU Silver’s (ECU.TO) operations update, and Silver Standard’s (SSRI) closed public offering 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.

UEX Receives West Bear Preliminary Feasibility Study Reporting Probable Reserves Containing 1,492,261 Pounds U(3)O(8) at a Grade of 0.94% U(3)O(8) - More
- February 18, 2010 | Item | ShareThis

Evolving Gold Completes 100% Acquisition of Rattlesnake Hills, WY Project - More
- February 18, 2010 | Item | ShareThis

La Ronge Gold Project Receives Federal Environmental Screening Report Approval - More
- February 18, 2010 | Item | ShareThis

Gryphon Gold Closes C$1.85M Private Placement - More
- February 18, 2010 | Item | ShareThis

Pro Minerals Inc.: Exploration Program Initiated on the Discovery Lake Project - More
- February 18, 2010 | Item | ShareThis

Anglo Aluminum Discovers New Bauxite at Koumbia, Guinea - More
- February 18, 2010 | Item | ShareThis

First Point Discovers Nickel-Iron Alloy on the Klow Property, Central BC - More
- February 18, 2010 | Item | ShareThis

New Island Resources Inc.: Notice of Arbitration - More
- February 18, 2010 | Item | ShareThis

PAW Intercepts High Grade Tantalum Mineralisation From Initial Drilling Program in Mozambique - More
- February 18, 2010 | Item | ShareThis

Conquest Starts Phase Two Drilling at Alexander Property, Red Lake, Ontario - More
- February 18, 2010 | Item | ShareThis

Silvermex Resources Ltd. Closes $6,901,056 in Private Placement Financing - "Silvermex Resources Ltd. (TSX-V:SMR - News) (the "Company") is pleased to announce that further to its news releases dated February 2, 2010 and February 8, 2010, it has closed its private placement of 15,335,680 units ("Units") at a price of $0.45 per Unit for gross proceeds of $6,901,056. Each Unit consists of one common share and one share purchase warrant. Each warrant ("Warrant") will entitle the holder to purchase an additional common share for a period of 24 months from closing at a price of $0.65 per share. A portion of the private placement (4,500,000 Units representing $2,025,000 of the gross proceeds) were placed on a brokered basis through Canaccord Financial Ltd. (the "Agent")." More
- February 18, 2010 | Item | ShareThis

LGL Dividend Payment - More
- February 18, 2010 | Item | ShareThis

Dorato Resources Inc.: Minera Afrodita's Drill Program Illegally Suspended by Peruvian Authorities-Grounds for the Suspension Fall Outside of the Established Pe - More
- February 18, 2010 | Item | ShareThis

Romarco drills 35.1 meters of 2.9 g/t gold in condemnation hole - More
- February 18, 2010 | Item | ShareThis

New Guinea Gold re-starts exploration at Sinivit and Imwauna - More
- February 18, 2010 | Item | ShareThis

Ansell Capital Corp. Signs Pires Property Letter of Intent With Entourage Mining - More
- February 18, 2010 | Item | ShareThis

Azimut stakes a large Copper-Cobalt-Rare Earth Element exploration target in Nunavik, Quebec - More
- February 18, 2010 | Item | ShareThis

Barrick spins off African assets, reports profit - "Barrick Gold Corp (ABX.TO) said on Thursday it will spin off its African gold assets into a new publicly traded company, and will also spend $475 million to buy an additional 25 percent of the massive Cerro Casale copper-gold project in Chile from partner Kinross Gold (K.TO).

Barrick announced the moves as it unveiled a doubling of fourth-quarter operating profit, driven by gold prices that soared to record levels in the final three months of 2009." More
- February 18, 2010 | Item | ShareThis

Laurentian Goldfields Ltd. Provides Shareholder Update - More
- February 18, 2010 | Item | ShareThis

UC Resources Ltd. Receives Loan Facility From FIFOMI - More
- February 18, 2010 | Item | ShareThis

Mercator Gold plc: Copper Flat Update - More
- February 18, 2010 | Item | ShareThis

Teryl Resources Corp. Receives $704,200 From Exercise of Warrants - More
- February 18, 2010 | Item | ShareThis

Globex Options Stake in Duquesne West Gold Property - More
- February 18, 2010 | Item | ShareThis

DIOS Hotish Uranium Project: GODZILA Showing Returns Up to 0.66% U3O8 Over One Meter True Width - More
- February 18, 2010 | Item | ShareThis

Pacific North West Capital Corp. Phase I Drilling Final Results Confirm Continuity of the DAC Deposit at the Destiny Gold Project, Québec - More
- February 18, 2010 | Item | ShareThis

Alto Ventures Ltd.: Phase 1 Drilling Final Results Confirm Continuity of the DAC Deposit at the Destiny Gold Project, Quebec - More
- February 18, 2010 | Item | ShareThis

SearchGold Accelerates US$150,000 Cash Payments and Completes Drilling Program on Arae-Gassel in Burkina Faso - More
- February 18, 2010 | Item | ShareThis

Solitaire Minerals Corp. Adds to Land Package Surrounding Imperial's Red Chris Project - More
- February 18, 2010 | Item | ShareThis

Midland Begins Its First Drilling Program With Agnico-Eagle on Its James Bay Gold Project - More
- February 18, 2010 | Item | ShareThis

African Gold Group, Inc., Drilling at Kobada, Mali Focused on Surpassing 1,000,000 oz Gold Threshold - More
- February 18, 2010 | Item | ShareThis

Touchdown Acquires Additional Claims at Argyle Gold Project - More
- February 18, 2010 | Item | ShareThis

Apoquindo Intersects 177m of 0.74% Cu and 0.19 g/t Au From the Zafranal Copper-Gold Porphyry, Peru - More
- February 18, 2010 | Item | ShareThis

Cadillac Ventures Inc. Obtains Gold and Base Metals Values from Samples on Several Properties in Spain - More
- February 18, 2010 | Item | ShareThis

Centurion Minerals Appoints Mr. Simon Meldrum as Consulting Geologist Responsible for Indonesian Exploration Programs - More
- February 18, 2010 | Item | ShareThis

Miranda Stakes Pediment Play Near Its Red Canyon Project - More
- February 18, 2010 | Item | ShareThis

Virginia Mines Inc.: Update on Eleonore Gold Deposit Royalty - More
- February 18, 2010 | Item | ShareThis

MDN: Tulawaka Mine Produced 94,180 Ounces of Gold in 2009 - More
- February 18, 2010 | Item | ShareThis

Osisko and Clifton Star Report 2009 Drill Results From the Duparquet Project - More
- February 18, 2010 | Item | ShareThis

Entourage Mining Signs Pires Property Letter of Intent with Ansell Capital Corp. - More
- February 18, 2010 | Item | ShareThis

Puget Purchases 100% Interest in Rex Lake Property, Increasing Ownership Stake of Its Lands in Werner Lake Belt to 100% - More
- February 18, 2010 | Item | ShareThis

DOT Announces Proposed Financing - More
- February 18, 2010 | Item | ShareThis

VMS Reports Drilling Has Commenced at Its Super Zone Properties, Near Snow Lake, Manitoba - More
- February 18, 2010 | Item | ShareThis

Black Hawk Exploration's Wholly Owned Subsidiary Blue Lithium Energy Engages Boart Longyear for Clayton Valley Lithium Drill Program - More
- February 18, 2010 | Item | ShareThis

Canaco Drills 30 Metres Grading 3.46 Grams Gold Per Tonne at Magambazi North 800 Metres North of Magambazi Main Zone - More
- February 18, 2010 | Item | ShareThis

Lake Shore Gold Announces Major Extensions to Timmins Mine Mineralization, Thunder Creek Rusk Horizon - More
- February 18, 2010 | Item | ShareThis

Dundee Precious Metals Reports Fourth Quarter 2009 And Year-End Results - More
- February 18, 2010 | Item | ShareThis

ECU Silver Reports on Gold and Silver Operations for January 2010 - "In January, the Company generated (see Table 1), a total of 472 ounces of gold and 26,470 ounces of silver from its oxide mill and also generated 245 ounces of gold and 20,326 ounces of silver contained in concentrates from the sulphide mill. Using the current silver-to-gold ratio of 70 to one (base metals not included as equivalents), ECU generated 59,510 ounces of silver equivalents from its oxide mill and 37,476 ounces of silver equivalents from its sulphide mill." More
- February 18, 2010 | Item | ShareThis

Golden Star Increases Mineral Reserves 14% in 2009 - "Mineral Reserves, net of mining depletion, increased by 450,000 ounces or 14%, during 2009 to 48.3 million tonnes grading 2.40 grams per tonne (g/t) for contained gold of 3.73 million ounces at year end. The increase was a result of successful exploration efforts, cost reduction and other engineering changes, and gold price increase. Mining depletion totaled 470,000 ounces and therefore the total reserve addition was 920,000 ounces of gold or a 28% increase over the Mineral Reserves at December 31, 2008. Mineral Reserves at Bogoso/Prestea net of depletion increased 17% due primarily to changed engineering parameters and an increased gold price. Mineral Reserves at Wassa net of depletion increased 9% due primarily to successful exploration efforts and an increased gold price." More
- February 18, 2010 | Item | ShareThis

Exeter provides update on proposed spin-out to create two independent companies - "Exeter Resource Corporation (NYSE-AMEX: XRA, TSX: XRC, and Frankfurt: EXB) ("Exeter" or the "Company") has mailed a detailed information circular (the "Circular") describing the business to be conducted at its special meeting of shareholders to be held March 11, 2010 at 3:00 pm at the Company's offices in Vancouver, British Columbia with respect to the spin-out of its Argentine assets into Extorre Gold Mines Limited ("Extorre") by plan of arrangement (the "Arrangement")." More
- February 18, 2010 | Item | ShareThis

Silver Standard Announces Closing of Public Offering of Common Shares - "Silver Standard Resources Inc. (TSX:SSO - News)(NASDAQ:SSRI - News) (the "Company") reports the closing of its previously announced public offering of common shares and exercise in part of the overallotment option (the "Offering"). Pursuant to the Offering, the Company today issued 6,728,755 common shares at a price of US$17.00 per share, for aggregate net proceeds of approximately US$108.7 million after underwriting commissions." More
- February 18, 2010 | Item | ShareThis

Fronteer: Drilling Further Defines High-Grade Gold at Northumberland Deposit, Nevada - "Fronteer (TSX:FRG - News)(AMEX:FRG - News) announces today that a recent drill program, testing a new target concept, has further defined and extended high-grade gold mineralization at the company's 100% owned Northumberland deposit in Nevada." More
- February 18, 2010 | Item | ShareThis

Barrick Reports Q4 2009 Financial and Operating Results - "Adjusted Q4 net income rose 118% to a record $604 million ($0.61 per share)(1) from $277 million ($0.32 per share) in Q4 2008. Adjusted operating cash flow rose 110% to a record $921 million(1) from $439 million in the same prior year period." More
- February 18, 2010 | Item | ShareThis

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