-- Posted 3 March, 2010 | | Source: SilverSeek.com

The Metals:

Gold fell $4.35 to $1132.35 in Asia and saw a gain of $5.67 at $1142.37 in London before it fell back to see a slight loss at around 10AM EST in New York, but it then rose to a new session high of $1144.85 by about noon and ended near that high with a gain of 0.55%.  Silver fell 9 cents to $16.91 in Asia before it rose to as high as $17.34 by late morning in New York and ended with a gain of 1.47%.

Euro gold fell from yesterday’s new all-time high of €835 to about €833 on euro strength, platinum gained $4.50 to $1576, and copper gained another couple of cents to about $3.41.

Gold and silver equities rose about 2.5% by late morning before they fell back off a bit in afternoon trade, but they still ended with about 1.5% gains.

The Economy:

U.S. MBA Mortgage Applications Index Increased 15% Last Week  Bloomberg

The fed’s Beige Book noted that “economic conditions continued to expand since the last report, although severe snowstorms in early February held back activity in several districts.” 

Tomorrow at 8:30AM EST brings Initial Jobless Claims for 2/27 expected at 470,000, fourth quarter Productivity expected at 6.3%, and Unit Labor Costs expected at -4.5%.  At 10AM is the Factory Orders report for January expected at 1.8% and Pending Home Sales for January expected at 1.0%.

The Markets:

Charts Courtesy of http://finance.yahoo.com/

Oil rose near $81 a barrel despite the fact that the EIA reported that crude inventories rose a larger than expected 4.1 million barrels, gasoline inventories rose 700,000 barrels, and distillates fell 900,000 barrels.

The U.S. dollar index fell as the euro and pound rose after Greece announced plans to reduce its deficit.

Treasuries fell as the Dow, Nasdaq, and S&P rose for most of trade on relief over Greece’s plans to ease its debt crisis, but stocks turned slightly lower in afternoon trade and ended near unchanged after the Beige Book was released and Obama announced some changes to his health care bill.

Among the big names making news in the market today were BJ’s Wholesale, Walgreen, and Costco.

The Commentary:

“I was a bit surprised to see that gold open interest actually rose on Monday... 5,449 contracts to be exact.  I thought that was quite a bit considering the price action.  Volume, as I mentioned in my closing commentary yesterday, was light... only 139,772 contracts changed hands.  In silver, o.i. was up a smallish 438 contracts, with total volume traded shown as 27,675 contracts.

The reason that I was surprised at the increase in open interest was because the prices of both metals actually declined on Monday.  However, I must admit that I'm expecting a huge jump in open interest in both gold and silver when the CME posts the final numbers for Tuesday's trading on their website this morning... as these rallies are not going unopposed!  At the moment, it seems that these rallies are following the 'same old, same old' pattern... especially in gold.  But I'll reserve judgment on that until the end of the week.

The CME's Daily Delivery notice posted at their website yesterday evening showed that 123 silver and zero gold contracts are posted for delivery on Thursday.  The GLD ETF showed an increase of 146,894 ounces... and there was a minor reduction of 111,196 ounces in the SLV, which was probably a fee payment.  The good folks over at Switzerland's Zürcher Kantonalbank reported adding another 49,467 ounces of gold and 555,214 ounces of silver to their precious metals ETFs last week... and I thank Carol Loeb for those numbers.  The U.S. Mint reported a smallish sale of 2,000 one-ounce gold eagles yesterday... and nothing for silver eagles.  The Comex-approved depositories increased their silver inventories by 602,335 ounces on Monday.”– From Ed Steer’s Gold & Silver Daily, read the full report here.

“Dear CIGAs,

Greece will fail and be rescued is all that is discussed in the financial world. Here is the real skinny:

1. Greece getting bailed out means QE (printing of money) to infinity. That means gold would rise from here to $1650 by January of 2011, or as Martin Armstrong said, by June of 2011. The dollar would fall. Equities and commodities would rise.

2. Greece getting flushed means that would enrich the CDS OTC derivative tool. Immediately the next target currencies will be attacked by this tool. Currencies will fall like dominoes. At first the dollar will strengthen, equities will fall and gold will go lower. However, soon the recognition will come that a disaster has occurred that is more serious than the Lehman flushing. Confidence in currencies will fall everywhere. Gold will then rise not to $1650 by the same time in 2011 but to $5000 and perhaps beyond.

Either way both paved the road to a single virtual reserve currency and a single Central Bank (IMF) of Central Banks.

If Greece is bailed out it will take longer for the establishment of the single virtual reserve currency. If Greece is flushed it will happen so fast you will lose your breathe.

Either way I see gold as the only reliable fundamentally correct safe harbor. Gold will play a part at a very high price with the single virtual reserve currency in order to keep gold from being a competitor with it.

Gold’s role will be in the form of the Federal Reserve Gold Certificate Ratio, not tied to the dollar, but rather tied to the single virtual reserve currency in a ratio to a measure of world liquidity. There will be no interest rate automaticity to the new form for gold’s role in a monetary system. It will follow the many articles I have written on the FRGCR but not tied to the dollar but rather the single virtual reserve currency.

Gold will not be fixed or convertible but will trade within a market as a close band of the price gold is trading at when the single virtual reserve currency is created and will lend to this construct some real validity.

I do not favor any of this, but it will occur.

There is no other possibility to this unprecedented calamity at hand.

Respectfully,”- Jim Sinclair, JSMineset.com

“Dear CIGAs,

Another day, another new record high in both Euro gold and British pound gold at the PM Fix; €832.906 and £754.648 respectively. Swissie gold also is strong today and remains within striking distance of its all time high of 30 years ago. About mid-morning however, both the Euro and the Pound experienced a sharp short covering rally which while it put some pressure on gold priced in both of those currencies, it resulted in a strong move lower in the US Dollar, which provided added upside impetus for Dollar priced gold enabling it to follow through on yesterday’s break out of the trading range pattern as it moved further away from the former cap near $1,130.

The move higher in Dollar priced gold is a confirmation from a technical standpoint that the breakout above that level is legitimate. Funds will now target the $1,150 – $1,155 level. Judging from what I can see of the price action above the $1,140 level, the bullion banks are fighting like Banshees to keep that resistance level from being reached. Should they be able to break through the selling that will emerge near the level, they stand a good chance of taking gold back to its all time high above $1,200. Any retracement in price will need to hold above $1,110 to keep the bullish momentum alive.

It appears we are already seeing the early beginnings of funds rolling out of April gold and into the June contract. That will intensify as we move further into the month. The steady increase in open interest is healthy and shows that fresh money is flowing into the market.

The mining shares as evidenced by the HUI are putting in a stellar performance today as they too are following through on yesterday’s strong showing. The index is on target to put in its second consecutive close above the 40 day and 50 day moving averages as well as the horizontal resistance level near 420 which had held it in check for the last few weeks. Not only that but it has broken the downsloping trend line drawn off the December and January peaks. Technical indicators are also confirming the move higher.

I am trying to read the hedge fund ratio spreads and it does appear that those are being unwound which is the reason that the shares are outperforming the metal itself today. That is a good sign for the miners as these spreads have been supplying a large portion of the pressure on the mining shares. We’ll need to keep an eye on this to see what their next move is going to be. If you look at the chart here you can see how those spreads have leaned on the shares in general against the metal. If they begin to unwind in earnest, the shares will outperform the metal. Let’s see what occurs there.

Click here for today’s HUI-Gold Ratio chart with commentary from Trader Dan Norcini…

Technically, the Dollar looks very vulnerable here right now. It has still not taken out the critical support level near 79.70 and confirmed a top but those reoccurring bearish divergence signals in the technical oscillators are continuing to flash warning signal after warning signal. There are a tremendous amount of fund related sell stops sitting just beneath 79.70 on the USDX. Bears are going to be gunning for those. If they reach them, they stand a few good chances of inducing a large speculative long liquidation orgy. If the funds can defend that level, they are going to have to hope for more bad news out of Europe.

Any sign that Greece is going to be thrown under the bus and the Dollar will move higher as Jim explained yesterday. That will not be a sign of Dollar desirability as a safe haven but rather a move higher out of default. Gold in terms of those major European currencies would then continue to perform very well, just as it has been recently. That should shore up support under Dollar priced gold on any setbacks in price.

One more thing about the Dollar – should 79.70 give way on good volume, the last line of defense for the bulls will be near the 79.30 -79.15 level. Failure there and the Dollar will drop rapidly down towards 77.00 – 76.90.

The S&P 500 is floating higher and has pushed above its major moving averages with the 10 day now above the 40 and 50 day. That has the market on a bullish technical footing with bulls hoping to push price back up towards 1150. Such a move higher in the broad equity markets will help the mining shares.”- Dan Norcini, More at JSMineset.com

GATA Posts:

Gene Arensberg: ETF investors fancy silver in 2010

The Statistics:

Activity from: 3//2010

Global Gold ETF Holdings

[WGC Sponsored ETF’s]

Note: Change in Total Tonnes from yesterday’s data: SPDR added 4.569 tonnes and the LSE subtracted 0.32 tonnes.

COMEX Gold Trust (IAU) Total Tonnes in Trust: 77.57: +0.89 tonne change from yesterday’s data.

Silver Trust (SLV) Total Tonnes in Trust: 9,473.45: -3.46 tonne change from yesterday’s data.

The Miners:

SEMAFO’s (SMF.TO) plant expansion, Seabridge’s (SA) closed offering, Keegan’s (KGN) drilling, and Endeavour’s (EXK) updated NI 43-101 reserve and resource estimates were among the big stories in the gold and silver mining industry making headlines today.

WINNERS

LOSERS

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

All of today's gold and silver stock news:

Fancamp Exploration Ltd.: Update of Activities - More
- March 03, 2010 | Item | ShareThis

Waymar Resources Announces Property Acquistion - More
- March 03, 2010 | Item | ShareThis

Pershimco Announces 90 Day Extension to Its Due Diligence Period and Receives Notification of an Extension to the Environmental Management Plan - More
- March 03, 2010 | Item | ShareThis

Levon Enters Into Agreement to Acquire 100% of Las Mesas Au, Ag, Pb, Zn Project From La Cuesta International - More
- March 03, 2010 | Item | ShareThis

Lincoln Mining Grants Stock Options - More
- March 03, 2010 | Item | ShareThis

Nevada Copper Intersects 4.18% Copper Over 29.7 Meters (97.5 ft) - More
- March 03, 2010 | Item | ShareThis

Ecometals Announces Further Delay in Proposed Sale of Condor Gold Project - More
- March 03, 2010 | Item | ShareThis

Terra Ventures Inc.: Hathor Intersects 81.5 m of 1.59% U3O8 at Roughrider Zone East, Including a 13.5 m Interval of 6.52% U3O8 With Assays as High as 68.1% U3O8 - More
- March 03, 2010 | Item | ShareThis

Trelawney Intersects 107.11 Metres of 8.20 g/t Gold Including 313.55 g/t Gold Over 2.56 Metres - More
- March 03, 2010 | Item | ShareThis

ValGold Completes Restructuring and Subscription Receipts Offering - More
- March 03, 2010 | Item | ShareThis

B2Gold Corp. Corporate Update - More
- March 03, 2010 | Item | ShareThis

Oro Gold Drills 11.9 g/t Gold Over 41 Metres Increasing Size of High Grade Zone at Trinidad Project, Mexico - More
- March 03, 2010 | Item | ShareThis

All 2009 Till Results for Credit Lake Received-Compelling Geochemical Responses Cause Geophysical Targets to Be Upgraded to Very High Priority Drill Targets - More
- March 03, 2010 | Item | ShareThis

Globex Reports on Russian Kid (Rocmec 1) Gold Resource - More
- March 03, 2010 | Item | ShareThis

Guinness Exploration Completes First Nantawa Project Payment Ahead of Schedule - More
- March 03, 2010 | Item | ShareThis

Rio Alto Mining Limited: Additional Mining Concessions Acquired at La Arena - More
- March 03, 2010 | Item | ShareThis

Adex Announces Pilot Plant Testing of Processing Options for Its Mount Pleasant Property - More
- March 03, 2010 | Item | ShareThis

Red Metal Resources to Exhibit at PDAC 2010 - More
- March 03, 2010 | Item | ShareThis

Bayswater Arranges $25 Million Financing for Reno Creek Acquisition - More
- March 03, 2010 | Item | ShareThis

Teryl Resources Corp. Hires Certified Geologist to Evaluate the Gil J/V Gold Prospect - More
- March 03, 2010 | Item | ShareThis

Tombstone Exploration Corporation Begins Preliminary Work for 2010 Drill Program - More
- March 03, 2010 | Item | ShareThis

New Global to Acquire Gold Project in Historic Angostura-California Gold District in Colombia - More
- March 03, 2010 | Item | ShareThis

Midland Exploration Option its Rare Earth Ytterby Project to Japan Oil, Gas and Metals National Corporation - More
- March 03, 2010 | Item | ShareThis

Cartier Acquires Lac Landron Copper-Gold Prospect - More
- March 03, 2010 | Item | ShareThis

VHGI Subsidiary VHGI Gold With Its New Partner Western Sierra Together Have Entered Into Negotiations to Further Expand on Their Current Gold Portfolio - More
- March 03, 2010 | Item | ShareThis

General Metals Awarded Key Water Rights for Independence Mine Operation - More
- March 03, 2010 | Item | ShareThis

Newcastle Begins Historical Compilation of Its Pickle Lake Property - More
- March 03, 2010 | Item | ShareThis

Wolverine Announces Results of 2009 Exploration Program - More
- March 03, 2010 | Item | ShareThis

Metanor Drills 2.71 g/t Au Over 18.85m and 5.55 g/t Au Over 12m on the Main Zone at Barry - More
- March 03, 2010 | Item | ShareThis

Crescent Resources Announces Final Results From 2009 Field Season - More
- March 03, 2010 | Item | ShareThis

Halo Announces Additional Board Members - More
- March 03, 2010 | Item | ShareThis

Western Copper Completes Carmacks Project Public Hearing - More
- March 03, 2010 | Item | ShareThis

Changes to Centamin Egypt Board - More
- March 03, 2010 | Item | ShareThis

Alexandria Continues to Delineate Gold Mineralization at Akasaba - More
- March 03, 2010 | Item | ShareThis

Oro Silver Commences Deep Drilling for High-Grade Silver at the El Compas Project, Zacatecas, Mexico - More
- March 03, 2010 | Item | ShareThis

Drilling Extends High Grade Copper-Gold Massive Sulphides at Rail - DPEM Survey Indicates Untested Extension of Massive Sulphides Continues for over One Kilomet - More
- March 03, 2010 | Item | ShareThis

BCGold Corp. Sampling Returns High-Grade Gold Values at Engineer Mine Property - More
- March 03, 2010 | Item | ShareThis

Fjordland Acquires Eight Gold-Copper Properties - More
- March 03, 2010 | Item | ShareThis

MacDonald Mines Conducting Gravity Survey for Chrome Targets in The Ring of Fire, James Bay - More
- March 03, 2010 | Item | ShareThis

Nemaska Commissions NI 43-101 Mineral Resource Estimate on Whabouchi - More
- March 03, 2010 | Item | ShareThis

Goldeye Options Claims to Creso Resources in Shining Tree Area - More
- March 03, 2010 | Item | ShareThis

Hathor Intersects 81.5 m of 1.59% U3O8 at Roughrider Zone East, Including a 13.5 m Interval of 6.52% U3O8 With Assays as High as 68.1% U3O8 - More
- March 03, 2010 | Item | ShareThis

Franconia Minerals Begins New Drill Program at Its Birch Lake Project, Duluth Complex - More
- March 03, 2010 | Item | ShareThis

Mandalay Resources Corporation announces appointment of corporate secretary - More
- March 03, 2010 | Item | ShareThis

Brazauro Files 2010 Preliminary Economic Assessment For Tocantinzinho Property - More
- March 03, 2010 | Item | ShareThis

Black Hawk Exploration Positive Surface Sampling Findings From Dun Glen Warrant Additional Exploratory Trenching - More
- March 03, 2010 | Item | ShareThis

Cadan Commences Testing Phase Of Its T'Boli Gold Plant - More
- March 03, 2010 | Item | ShareThis

Barkerville Gold to Begin Mining Ore at QR Gold Mine - More
- March 03, 2010 | Item | ShareThis

Regional Soil Sampling Results from King Solomon Project Confirm Prospectivity and Set Stage for Upcoming Core Drill Program on Key Targets - More
- March 03, 2010 | Item | ShareThis

Endeavour Silver Grows Its Reserves/Resources for 5th Consecutive Year, 2009 Silver Reserves Up 113%, Gold Reserves Up 87% Compared to 2008 - "We are gratified to see our combined reserves and resources rise once again to a record high last year, notwithstanding our 5th consecutive year of growing production. The numbers speak to the ability and success of our exploration team at discovering new, high grade silver-gold deposits year after year within these historic Mexican silver districts." More
- March 03, 2010 | Item | ShareThis

SEMAFO Successfully Completes Phase I of Mana Plant Expansion - "SEMAFO (TSX: SMF - News) today announced that phase I of the Mana plant expansion program aimed at increasing plant capacity to up to 6,000 tonnes per day in saprolite ore (softrock) has been completed on schedule and on budget." More
- March 03, 2010 | Item | ShareThis

Seabridge Gold Announces Closing of US$65.8 Million Offering - "Seabridge Gold Inc. (TSX:SEA - News)(AMEX:SA - News) ("Seabridge" or the "Company") is pleased to report the closing of its previously announced public offering of common shares and the closing of the exercise in full of the over-allotment option granted to the underwriters in connection with the offering (the "Offering"). Pursuant to the Offering, the Company today issued 2,875,000 common shares at a price of US$22.90 per share, for aggregate gross proceeds of approximately US$65.8 million. Dahlman Rose & Company, LLC and Nomura Securities International, Inc. acted as joint book-running managers for the Offering, and CI Capital Markets Inc. acted as underwriter for the Offering in Canada." More
- March 03, 2010 | Item | ShareThis

Keegan Resources Inc.: Drilling to Commence at Asumura Gold Property - "Keegan (TSX:KGN - News)(AMEX:KGN - News) is pleased to announce that drilling is set to commence at its 280 square km Asumura gold property in southwest Ghana in the second half of March. In the past year, Keegan has been integrating all of its recently obtained geophysical and geochemical information in order to develop specific target models that place past prospective intercepts into a coherent model. Keegan plans to drill a minimum 4000 meters of core holes focusing on five primary target areas. Please see www.keeganresources.com for further details of the proposed program." More
- March 03, 2010 | Item | ShareThis

- Chris Mullen, Gold Seeker Report

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