Gold Seeker Closing Report: Gold and Silver Fall Roughly 1% and 2% More

	Close	Gain/Loss
Gold	$1102.95	-$10.05
Silver	$15.86	-$0.35
XAU	156.46	-3.42%
HUI	390.55	-3.61%
GDM	1172.17	-3.54%
JSE Gold	2177.00	-45.12
USD	80.92	+0.38
Euro	135.08	-0.93
Yen	110.88	+1.16
Oil	$78.86	-$1.45
10-Year	3.691%	-0.108
T-Bond	117.875	+1.50
Dow	10282.41	-0.97%
Nasdaq	2213.44	-1.28%
S&P	1094.60	-1.21%

Gold rose as much as $8.14 to $1121.14 in Asia, but it then fell back off for most of the rest of trade in London and New York and ended near its late session low of $1099.15 with a loss of 0.9%. Silver climbed 21 cents to $16.42 before it also fell back off and ended near its low of $15.77 with a loss of 2.16%.

Euro gold fell to about €815, platinum lost $14 to $1509, and copper fell nearly 10 cents to about $3.21.

Gold and silver equities fell nearly 4% by early afternoon and remained near their lows into the close.

Report	For	Reading	Expected	Previous
Case-Shiller 20-city Index	Dec	-3.08%	-3.1%	-5.34%
Consumer Confidence	Feb	46.0	55.0	56.5

Bernanke starts his two day “Humphrey-Hawkins” testimony at 10AM EST tomorrow before the House Financial Services Committee. He’ll be before the Senate Banking Committee on Thursday. Also at 10AM tomorrow is the New Home Sales report for January expected at 355,000.

Oil fell back below $80 on worries over demand after today’s surprisingly disappointing Consumer Confidence report sent the U.S. dollar index and treasuries higher on risk aversion, cash raising, and/or safe haven demand. Today’s $44 billion 2-year note auction drew a high yield of 0.895% with a bid to cover of 3.33.

Among the big names making news in the market today were Medco, Sears, Target, Macy’s, Warren Buffett, Home Depot, and Barnes & Noble.

“At the moment, all is calm in the precious metals arena. Today is options expiry...and one of the things that normally accompanies options expiry is big volume... and we haven't seen much of that in the last three or four days. Preliminary volume for Monday's trading is now posted at the CME website and it shows that gold traded a very light 148,336 contracts. Silver's volume was pretty decent at 58,109 contracts. But, as I said earlier, big volume in silver is to be expected, as March is the front month... and everything has to be settled by the end of trading on Thursday. I see in these preliminary numbers that the open interest in silver for March has fallen 3,222 contracts and is now down to 33,475 contracts. In order to get down to a realistic delivery number... silver's total open interest is going to have to drop close to 30,000 contracts in the next three business days [today included], or there's a chance that there may be delivery problems. Time will tell... so don't get out the party favors just yet. I'll be reporting on silver's open interest every day for the rest of this week.”– From Ed Steer’s Gold & Silver Daily, read the full report here.

The Conference Board released its index on US Consumer Confidence this morning and that sent a shot across the bow of the equity bulls’ parade boat. The index plunged more than 10 points to 46.0. The expectation had been closer to 55.5. That was all that was needed to send the “risk aversion” trades into high gear with algorithm selling hitting the broad equity markets and the commodity sector. On the Forex front, that means the Euro gets sold, and the Dollar and the Japanese Yen get bought. Bonds then get a bid and move higher.

This is the “deflation” trade which whenever it occurs, serves to bring pressure on the gold market. Additional proof that the deflation trade was on today was the sell off that hit copper and then crude oil. About the only commodities that I could see that were higher today were the beans. In such an environment, it is difficult for the bulls to keep gold levitating.

As confidence is such an ephemeral substance, it is challenging trying to get a read on it, but it is not hard to understand that when jobs are relatively scarce and consumers are worried about bills, confidence is going to evaporate like the morning mist. Needless to say, folks who are worried about the future do not spend as freely as those who are not. This is also the reason that so much of today’s financial “news” is spun by the official sector and many of the talking heads on GET-TV– they cannot lay things out as they are lest they create more fear, concerns or worries on the part of the consumer. It is also the reason for the volatility in the markets – you are witnessing a clash between reality and spin in the pits.

The HUI was on the receiving end of more of those ratio spreads again. The fact that the HUI could not push through the 40 and 50 day moving averages generated technical selling. It was smashed lower violating both the 10 day and the 20 day moving averages which had been turning higher. The sell off gives the bears the short term advantage again. There is some chart support near the 390 level which is pretty much where the session low has been thus far. If that cannot entice some buyers to come back in, the miners could move back down towards the 375 region to test that strong buying region. We will have to wait and see how the chart shapes up in the next couple of sessions. A ranging trade would be a moral victory for the bulls but the HUI will need to bounce soon to set up that possibility.

The bond market obliterated the recent shorts as it soared up through the 40 and 50 day moving averages all the way to last week’s high. We will keep an eye on this market to see what bond traders are voting for next, lower or higher rates. It still appears to me like the bonds are worried about supply issues but also concerned about the moribund economy. Generally this sort of thing leads to a range trade with neither side gaining a clear cut advantage.

Back to gold for a bit – the $1,100 level is serving as buying support and is thus far attracting dip buyers. I would like to see it climb back above the $1,110 level to feel a bit more comfortable with a potential range trade rather than a move down towards $1,080.

Open interest was down yesterday. Fresh longs were obviously quite fickle and decided not to challenge the sellers up at yesterday’s highs. We will need to see the bulls continue to move into gold rather than liquidating to generate enough force to push price through the bullion banks’ line of defense near the $1,130 level.

As a side note, both Euro-gold continues to hold above the 800 level and British Pound-gold is not far off its all time high coming in at 716 at today’s PM Fix.”- Dan Norcini, More at JSMineset.com

Note: Change in Total Tonnes from yesterday’s data: SPDR added 0.305 tonnes and the JSE added 0.23 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.

Nevsun’s (NSU) project update, Randgold’s (GOLD) restricted stock awards, Gold Fields’ (GFI) revised guidance, Freeport’s (FCX) needed permit in Indonesia, and Scorpio’s (SPM.TO) mine production 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.

Darnley Bay Resources Updates 2010 Exploration and Drilling Plans - More
- February 23, 2010 | Item | ShareThis

Big Red Diamond Discovers Unreported Gold Occurrences on Bristol Gold Project, West Timmins - More
- February 23, 2010 | Item | ShareThis

Solitaire Minerals Corp. and Ashburton Ventures Inc. Commence Drilling at the Chukuni Property in Red Lake, Ontario - More
- February 23, 2010 | Item | ShareThis

Northern Star Announces Management Changes - More
- February 23, 2010 | Item | ShareThis

Wallbridge Mining Drills Second Cut Through New Sulphide Zone on Parkin Offset Property in Sudbury - More
- February 23, 2010 | Item | ShareThis

Ashburton Commences Drilling at Red Lake - More
- February 23, 2010 | Item | ShareThis

Strathmore Grants Stock Options - More
- February 23, 2010 | Item | ShareThis

SRA Appoints Senior Management and Director - More
- February 23, 2010 | Item | ShareThis

Gold Resource Corporation Accelerates Exploration Adding Second Core Drill at Its Aguila Project - More
- February 23, 2010 | Item | ShareThis

Zoro Mining Corp. Announces Agreement to Acquire Gold Exploration Property in Peru - More
- February 23, 2010 | Item | ShareThis

Pacific Copper Corp.: Amendment to San Enrique Mineral Property Acquisition Agreement and Termination of Yerbas Buenas Letter of Intent - More
- February 23, 2010 | Item | ShareThis

Rio Cristal Resources Extends Period for Early Exercise of Warrants - More
- February 23, 2010 | Item | ShareThis

Brionor Resources Inc.: Drill Program Initiated on Pitt Gold - More
- February 23, 2010 | Item | ShareThis

Barkerville's 2010 Drilling Program Underway - More
- February 23, 2010 | Item | ShareThis

Nevsun Reports Increased Cash Flow Projections for 2011 - "Nevsun Resources Ltd. (TSX:NSU - News)(AMEX:NSU - News) is pleased to provide a brief update on the gold/copper/zinc Bisha Project in Eritrea. As a result of the recent financing, there have been considerable improvements to the project's economics." More
- February 23, 2010 | Item | ShareThis

Riverstone Reports Additional High Grade Gold Results at Nami Gold Discovery Zone - More
- February 23, 2010 | Item | ShareThis

Golden Phoenix Reports That Scorpio Gold's Surface Exploration on the Mineral Ridge Gold Project Prompts Additional Staking - More
- February 23, 2010 | Item | ShareThis

ValGold Reports Additional Drill Results for the Garrcon Area, Garrison Gold Property, Ontario - More
- February 23, 2010 | Item | ShareThis

DPM Enters Into Letter of Intent to Sell Its Molybdenum and Remaining Gold and Copper Projects in Serbia to Queensland Minerals Ltd. - More
- February 23, 2010 | Item | ShareThis

Northern Gold Hits 84.2 Metres of 1.49 g/t Gold Including 37.2 Metres of 2.03 g/t and 1.0 Metre of 16.29 g/t on the Garrison Property East of Timmins - More
- February 23, 2010 | Item | ShareThis

Christopher James Gold Corp. Signs Agreement on the Sinter Epithermal Gold-Silver Project in Nevada - More
- February 23, 2010 | Item | ShareThis

Sona Resources Corp.: Positive Results from Blackdome Tailings Metallurgy Tests - More
- February 23, 2010 | Item | ShareThis

Galahad Metals Aquires New Claims at Regcourt - More
- February 23, 2010 | Item | ShareThis

Definitive Eden Lake Rare-Earth Property Agreement Completed by Rare Element and Medallion - More
- February 23, 2010 | Item | ShareThis

Azimut signs a Letter of Intent for the Diana Property (Copper-Cobalt-Rare Earth Elements), Nunavik, Quebec - More
- February 23, 2010 | Item | ShareThis

MDN Appoints Serge Bureau as CEO - More
- February 23, 2010 | Item | ShareThis

Tombstone Exploration Corporation Provides Exploration Update for 2010 - More
- February 23, 2010 | Item | ShareThis

Tara Minerals Announces Production Decision From Its San Felipe Gold & Silver Project - More
- February 23, 2010 | Item | ShareThis

Crosshair Joins the "AGORACOM 100" and Launches Online IR and Marketing Program - More
- February 23, 2010 | Item | ShareThis

Rye Patch Gold Extends Upper Oxide Zone at Wilco - More
- February 23, 2010 | Item | ShareThis

Duran Ventures Announces 396.0 Metres of 0.69% Copper and 0.042% Molybdenum (0.98% CuEq) in Drill Hole 10AGD016 - More
- February 23, 2010 | Item | ShareThis

Daulton Capital Corp. Acquires Strategic Gold Property in the Yukon - More
- February 23, 2010 | Item | ShareThis

Nord Resources Receives Extension on Continued Listing Review - More
- February 23, 2010 | Item | ShareThis

Rockcliff Increases VMS Land Position at Snow Lake - Second Drill Mobilized to Test Buried Conductor at Reed Property - More
- February 23, 2010 | Item | ShareThis

PolyMet Updates NorthMet Environmental Review Progress - More
- February 23, 2010 | Item | ShareThis

Chrysos Completes Drilling at Jubilee Zinc Project - More
- February 23, 2010 | Item | ShareThis

Altius to Receive Proceeds Worth Approximately $61.8 Million - More
- February 23, 2010 | Item | ShareThis

Anooraq Announces Ivanhoe Nickel & Platinum Dispute Settled & Extended Joint Venture Agreed Between Parties - More
- February 23, 2010 | Item | ShareThis

Castillian Resources Acquires Gold Claims in Yukon - More
- February 23, 2010 | Item | ShareThis

Crocodile Gold Receives Proceeds of C$32 Million From Accelerated Expiry of Warrants - More
- February 23, 2010 | Item | ShareThis

Canstar Signs Mining Option Agreement with On-Strike Gold Inc. on Mineral Claims Adjacent to Mary March Property - More
- February 23, 2010 | Item | ShareThis

Michel David Joins Radisson Mining as President and CEO - More
- February 23, 2010 | Item | ShareThis

Orvana Announces Correction and Re-Filing of Its Annual Report - More
- February 23, 2010 | Item | ShareThis

Alto Group Moves Ahead With Plans in Ghana - More
- February 23, 2010 | Item | ShareThis

Redstar Provides Update on the Richmond Summit Project, Carlin Trend, Nevada - More
- February 23, 2010 | Item | ShareThis

Augusta Announces $32.5 Million Share Offering - More
- February 23, 2010 | Item | ShareThis

AuEx Ventures, Inc.: Sinter Agreement Signed With Christopher James Gold - More
- February 23, 2010 | Item | ShareThis

Rodinia Minerals Inc. Provides Operational Update on Clayton Valley and Diablillos - More
- February 23, 2010 | Item | ShareThis

CanAlaska Uranium Ltd. - Change in auditor - More
- February 23, 2010 | Item | ShareThis

Greystar Resources Appoints Steve Kesler President and CEO - More
- February 23, 2010 | Item | ShareThis

Solid Resources announces Joerg Schuetz as C.E.O. - More
- February 23, 2010 | Item | ShareThis

Randgold Resources Ld - Restricted stock award: non executive directors - "Randgold Resources Limitedannounces that in terms of the Company's remuneration for non-executivedirectors approved by shareholders at the Annual General Meeting on 5May 2009, an award of 1 200 restricted shares is made each year toeach non-executive director. The price of the 2010 restricted stockcalculation was the Nasdaq Global Select Market closing price on 4January 2010, being USD82.25." More
- February 23, 2010 | Item | ShareThis

Scorpio Boosts Q4 2009 Metal Output and Presents Overview of First Year of Commercial Production - "The fourth quarter mine production and mill throughput is another record quarterly performance for the Company since we declared commercial production at the Nuestra Senora mine in January 2009. The Company continues to ramp up operations for 2010 with the Q1 2010 mill throughput scheduled for 30,000 tonnes per month. It has been a great first year with the team, mine and mill facility out-performing all targets set for each quarter. As the Platte River Gold acquisition nears completion, the Company continues to look forward to increased production and a planned mill expansion for 2010." More
- February 23, 2010 | Item | ShareThis

Gold Fields Revises Guidance for Q3 F2010 on the Back of Safety Interventions at Kloof Gold Mine - "Gold Fields Limited (Gold Fields) (JSE, NYSE, NASDAQ Dubai: GFI) today announced that Q3 F2010 production for the Group will be approximately five percent below the previous guidance of 850,000 ounces provided on 4 February 2010. It is expected that the lower production will negatively impact cash costs and NCE on a per ounce basis." More
- February 23, 2010 | Item | ShareThis

Indonesia asks Freeport to submit forest permit - "Indonesia's forestry ministry has asked Freeport McMoRan Copper & Gold Inc (FCX.N) to submit a request to use land in a protected forest area, a ministry official said on Tuesday." More
- February 23, 2010 | Item | ShareThis

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