Gold Seeker Closing Report: Gold and Silver Soar Higher!

	Close	Gain/Loss
Gold	$1136.70	+$19.30
Silver	$17.00	+$0.57
XAU	167.96	+2.35%
HUI	421.99	+2.57%
GDM	1261.83	+2.36%
JSE Gold	2214.75	+47.55
USD	80.50	-0.24
Euro	136.07	+0.44
Yen	112.71	+0.53
Oil	$79.68	+$0.98
10-Year	3.614%	+0.008
T-Bond	118.84375	-0.125
Dow	10405.98	+0.02%
Nasdaq	2280.79	+0.32%
S&P	1118.31	+0.23%

Gold waffled near unchanged in Asia and rose to see modest gains in London before it climbed even higher in New York and ended near its late session high of $1137.50 with a gain of 1.73%. Silver followed a similar pattern and ended near its late session high of $17.062 with a gain of 3.47%.

Euro gold rose to a new all-time high at about €835, platinum gained $34 to $1571.50, and copper gained another 6 cents to about $3.39.

Gold and silver equities rose over 3% by early afternoon before they fell back off a bit in the last couple of hours of trade, but they still ended with about 2.5% gains.

There were no major economic reports today. Tomorrow at 8:15AM EST brings ADP Employment for February expected at -10,000. At 10AM is the ISM Services report for February expected at 51.0, and at 2PM is the fed’s Beige Book for March.

Oil as climbed back near $80 a barrel as the U.S. dollar index fell after the euro rose on hopes for a resolution to Greece’s problems.

Treasuries fell as the Dow, Nasdaq, and S&P traded mostly slightly higher on optimism over Greece and merger activity.

Among the big names making news in the market today were Ford, Subaru, GM, CF Industries and Terra, and Staples.

“Open interest for Friday's trading showed that gold o.i. fell 4,818 contracts. Volume was a very light 141,277 contracts. This drop was a surprise... just as much of a surprise [considering Friday's price action] as the 12,000+ increase in gold's open interest was on Thursday. Total gold o.i. currently sits at 467,387 contracts. It's still monstrously high, but not as bad as it was. Silver's open interest was down as well... this time by 869 contracts. This was even a bigger surprise [considering Friday's price action] than gold's o.i. numbers were. Volume was just OK at 35,643 contracts. Total silver o.i. is now down to 107,635 contracts. Like gold, silver's open interest is still high... but not as high as it was.

I suppose Friday's activity could be chalked up to short covering...as that would certainly account for a drop in open interest as prices were rising. If that's the case... then what accounted for Thursday's big out-of-nowhere rise in open interest? Just asking. We, dear reader, will just have to twiddle our thumbs until this Friday's COT report.”– From Ed Steer’s Gold & Silver Daily, read the full report here.

Gold continued its impressive performance from yesterday as it gathered more upside momentum enabling it to knife through the determined bullion bank selling near the $1,130 level that has held it in check for two weeks now. The move is all the more telling since it is occurring in the face of Dollar strength. As noted previously, the game in gold has changed thanks to what is occurring in Europe and the consequent one record high after another in both the Euro price of gold and the British Pound price of gold. That is proving too be a bridge too far for gold bears to deal with.

Euro gold was fixed €831.243 (another lifetime high) while British Pound gold came in at £752.857 (another lifetime high as well) at the afternoon London fix. Let me remind you that when we see these record high gold prices what we are actually observing is the degradation of the currency. The British Pound in particular is in serious trouble. The Swiss Franc is faring a wee bit better than the Euro and the Pound but all of Europe is pretty much being painted with the same brush right now as Swissie Gold is at levels not seen since January 1980!

This sort of thing begins to feed upon itself as fear begets more fear. If not checked, it is just a small slip from fear to outright panic. I would think that a move above €900 in Euro priced gold or a move above £800 in British Pound priced gold would spark more of what might be termed “panic buying” in gold out of Europe. Do you remember the media buzz when gold first breached the $1,000 level here in the US? Imagine the newspapers on the Continent when gold breaks above the €1,000 mark! Such events can happen with considerable speed so we cannot rule this out even though it may be a bit premature to be talking about €1,000 euro gold.

This brings me to another point – Asian Central Banks are in the process of diversifying their massive reserves. We know that some of the diversification included the selling of US Treasuries and the buying of European issued debt. That is now suddenly not looking like that wise of a move. Indeed, more and more Western issued debt is going to be coming under suspicion which makes the old barbarous relic (gold) look increasingly like the smart play. Put yourself in the place of the managers of this huge stash of reserves. You are sitting there watching European currencies plunging into a sink hole with that debt paying a meager yield so you turn to look at Treasuries. While the Dollar has stabilized out of default, its masters are managing it in reckless fashion by spending trillions that they do not have and have no way to ever repay, with yields also very low by any standard of historical comparison. What would you do??? Gold anyone?

What makes the move higher in gold more convincing is that it is being confirmed by the mining shares. The HUI finally broke through the sellers’ blockade at 420 pushing above the 50 day moving average in the process. It is currently sitting right on the downsloping trendline drawn off the December 2009 and January peaks. Another day of strength with a strong finish could see some of those hedge fund ratio spreads begin to lift and take more of the pressure off of these things. The bulls have to prove their mettle first however and put in a spirited finish to end today’s session. So far, the price action is very impressive.

The Dollar continues to push above the 81 level on the USDX but is having trouble maintaining a foothold above it. Each day it has climbed above that level it has slowly faded and moved down as sellers have entered the fray. Again, it is not that the Dollar is strong (this is a clue to the clueless talking heads at CNBC) it is rather that Europe is so weak. Remember the Dollar’s value on the Forex markets is set against the other currencies out there. The real key to understanding the value of the Dollar is to view the gold price and not its levels on the Forex markets.

On the technical front – gold’s break above the $1,130 level takes it outside of the recent range trade and could constitute an upside breakout and the beginning of a trending move. I say “could” because while the major moving averages are all now pointed higher, I would like to see one more day of trading above $1,130 with preferably a test of that level that sees price rebound higher. That accomplished we would then have one more resistance level to deal with. That level is centered between $1,152 and $1,155. A strong push through this level and there is very little in the way of chart resistance until $1,200.

There is a band of decent support near the $1,100 – $1,104 level. Below that is $1,088 – $1,092.

Open interest in gold had a nice jump of 5440 yesterday revealing the influx of fresh managed money which is exactly what this market needs to take it higher.

Crude oil broke through the $80 barrel level this morning. That has been a tough nut to crack. A push through $81 would set it up for a test of $84. Higher crude prices, while not necessary to a move higher in gold, certainly do not hurt gold’s cause any.

Copper is strongly higher today as well. Continued strength there is associated with both the Chilean earthquake and possible supply disruptions as well as general metal buying by commodity index funds.”- Dan Norcini, More at JSMineset.com

Note: Change in Total Tonnes from yesterday’s data: The LSE subtracted 0.24tonnes and the JSE subtracted 0.98 tonnes.

COMEX Gold Trust (IAU) Total Tonnes in Trust: 76.68 - No change from yesterday’s data.

Silver Trust (SLV) Total Tonnes in Trust: 9,476.91 - No change from yesterday’s data.

Gold Fields’ (GFI) strike avoidance, Freeport’s (FCX) redemption of notes, and Scorpio’s (SPM.TO) board appointment 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.

Animas Resources Plans Drilling Program on the Tigre Skarn - More
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Champion Announces Grant of Stock Options - More
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Golden Eagle's Chief Operating Officer Appointed as Executive Mining Advisor, Nevada Operations, for Klondex Mines Ltd. - More
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Plexmar Resources Inc.: Malin Plant at 80% Completion - More
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General Metals Drills 15 Feet (4.6 Meters) Grading 1.019 opt (38.51 g/T) Gold Within 295 Foot (70.1 Meter) Interval Averaging 0.079 opt (3.14 g/T) Gold - More
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Klondex Builds Management with Two Strategic Hires - More
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Selwyn Updates Progress on Joint Venture Transaction With Yunnan Chihong Zinc & Germanium Co. Ltd. - More
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Lincoln Mining announces successful Pine Grove drill results - More
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Cronus Resources Ltd. Provides Update on Proposed Reverse Take-Over - More
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Canadian Mining Drilling Under Way at Bullard Pass Gold Project - More
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Golden Chalice Resources Inc. Commissions NI 43-101 Report on Radio Hill Iron-Ore Project; Completes Drilling on South Porcupine - More
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Melkior Resources Inc.: Ground Work Starts in Preparation for Drilling Eldorado - More
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Geodex Announces Advisory Board Appointment - More
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San Anton Announces US$260M Net Cash Flow Base Case for Cerro Del Gallo Gold Heap Leach/Cil Project - More
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Golden Predator announces Gold Medal Yukon Geological Staff for 2010 - More
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VMS Project Drives La Mancha's Resources Higher in 2009 - More
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StoneShield Welcomes Mr. George Cole to the Board of Directors - More
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Eaglecrest Confirms That San Simon's Buriti and Paititi Gold Zones Are Connected - More
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Dia Bras Develops More High-Grade Rock at Bolivar - More
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Garibaldi Provides Corporate Update-Retains Grandich Publications to Enhance Investor Relations Strategy - More
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Minera IRL Limited Appoints Napoleon Valdez as Non-Executive Director - More
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Petro Horizon Energy Corp. - Brazil Lake Lithium and Rare Earth Metals Project - Rubidium ("Rb") Beryllium and Tantalum and drill results - More
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Sona Gears Up for Growth: Appoints John P. Thompson as President and CEO; Nick Ferris Moves Up to Chairman of the Board - More
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Pershimco Announces Extension of Due Diligence Period for Proposed Cerro Quema Project Acquisition in Panama - More
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Premier Gold to showcase Hardrock resource in virtual reality lab at PDAC - More
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Globex's NI 43-101 Report on Talc-Magnesite Deposit Confirms Positive Outlook for Property - More
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MERCATOR GOLD plc: Heads of Agreement - More
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Uracan announces commencement of winter drilling program - More
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Gladstone Pacific Nickel Limited - ACN 104 261 887 - Notice of General Meeting - More
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Arianne Resources: Drilling Start at Our Au/Ag Property in Mexico - More
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Avion Exploration Update - More
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Gold Bullion Drills Best-Ever Results at Granada - More
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Atna Provides NI-43-101 Resource Estimate for Cecil R Project - More
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Volta intersects 82.10 meters at 2.27 g/t gold from its Kiaka Gold Project in Burkina Faso - More
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Magellan Commences Drill Program at Coringa Gold Project, Brazil - More
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Empire Mining Prepares for Drilling at Its Bulqiza Chromite Project, Albania - More
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Goldstake Drilling on Gold, Copper, Silver Project - More
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Columbus Silver Corporation: Drilling Update, Mogollon Silver-Gold Project, New Mexico - More
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East Asia Drills 3.28 g/t Gold Over 61 Metres Within 116 Metres Grading 2.18 g/t Gold; Zone Opened Further North and to Underlying Stratiform Alteration - More
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Rocmec Reports an 80% Increase in Gold Resources for the Boucher Structure at its Rocmec 1 Gold Property - More
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U3O8 Corp. Shares Resume Trading - More
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Yukon-Nevada Gold Corp. signs a letter of engagement with BNP Paribas - More
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Aquila Drilling Outlines Additional Near Surface Gold And Silver Second Drill Rig Added - More
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Cream Minerals Reports Initial Assay Results From Roca Mines Phase One Drill Program at the Nuevo Milenio Silver-Gold Project - More
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Western Pacific Enters into Agreement with Newmont Mining - More
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Abitex Reports Indicated Resources of 3,900,000 Pounds eU3O8 and Inferred Resources of 9,260,000 Pounds eU3O8 on the Lavoie Property - More
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Avanti Mining satisfies final conditions for purchase of contiguous mineral tenures at Kitsault - More
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Bralorne Gold Mines Ltd.: Western BK Raise Averaged 35.23 g/T Au Over a Length of 36.5 Meters With a True Width of 0.79 Meters - More
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Honey Badger and Entree Gold to Drill Copper-Molybdenum Targets on Blackjack Property in Nevada, Q2 - More
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Capstone Announces Increased Mineral Resources Estimates for the Cozamin Copper Mine, Mexico - More
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Rainy River Announces Updated Resource Estimate of 2.37 Moz Indicated and 2.66 Moz Inferred Gold - More
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Sunergy Granted Extension for 2 Year Renewable Prospecting License for Its 150 sq. km. Nyinahin Mining Concession in Ghana, West Africa - More
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Geordie Lake Drilling Includes 16 m grading 0.86% Cu, 1.54 g/t PGM Au and 7.1 g/t Ag - More
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Fjordland Exploration Inc.: Gold Fields Doubles Drilling Plans at Woodjam North, B.C. - More
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Halo Exercises Options to Acquire 100% Interest in the Jungle Deposit and FUD Claims - More
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Orosur Mining Inc. Announces Results for Updated Resource Estimate Of Arenal Deeps of 2.05Mt @ 3.68g/t (using a 1.5g/t cutoff) - More
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NUM Withdraws Strike Notice on Gold Fields - "Gold Fields Limited (Gold Fields) (JSE, NYSE, NASDAQ Dubai: GFI) today received notice from the National Union of Mineworkers (NUM) that it is withdrawing its notice to embark on strike action across all Gold Fields' operations in South Africa." More
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Scorpio Appoints Pierre Lacombe, Eng., to the Board - "Scorpio Mining Corporation (TSX:SPM - News) is pleased to announce that Mr. Pierre Lacombe has accepted a position on the Board of Scorpio Mining Corporation. Mr. Lacombe's appointment is effective as of March 1, 2010." More
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Freeport-McMoRan Copper & Gold Inc. Announces Redemption of its Senior Floating Rate Notes due 2015 - "Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX - News) announced today that it has issued a notice to redeem all of its outstanding Senior Floating Rate Notes due 2015 (“Notes”) on April 1, 2010. There is $1 billion in outstanding aggregate principal amount of the Notes." More
- March 02, 2010 | Item | ShareThis

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