Gold Seeker Weekly Wrap-Up: Gold and Silver Gain 1% Friday, but End Slightly Lower on the Week

	Close	Gain/Loss	On Week
Gold	$1104.45	+$11.95	-0.27%
Silver	$16.86	+$0.18	-0.82%
XAU	161.41	+1.96%	-2.76%
HUI	401.49	+2.18%	-3.60%
GDM	1205.90	+2.24%	-3.30%
JSE Gold	2175.64	-12.68	-2.49%
USD	81.56	-0.61	+1.02%
Euro	134.21	+1.46	-0.83%
Yen	108.11	+0.23	-2.09%
Oil	$80.00	-$0.53	-0.84%
10-Year	3.855%	-0.046	+4.56%
Bond	115.21875	+0.40625	-3.53%
Dow	10850.36	+0.08%	+1.01%
Nasdaq	2395.13	-0.10%	0.87%
S&P	1166.59	+0.07%	+0.58%

Gold rose in Asia and London to see a gain of $7.35 at $1099.85 by about 8AM EST before it fell to see a $1.35 loss at $1091.15 by about 10AM EST in New York, but it then shot to a new session high of $1106.02 by late morning and closed with a gain of 1.09%. Silver climbed 24 cents to $16.92 in London before it fell to see a 3 cent loss at $16.65 in early New York trade, but it then rose to a new session high of $16.955 by late morning and ended with a gain of 1.08%.

Euro gold rose to about €824, platinum lost $9 to $1594, and copper gained a couple of cents to about $3.39.

Gold and silver equities rose more than 2% by late morning before they fell back off a bit in afternoon trade and saw only about 1% gains by a little before 2PM EST, but they then rallied back higher in the last couple of hours of trade and ended with roughly 2% gains.

Report	For	Reading	Expected	Previous
GDP	Q4	5.6%	5.9%	5.9%
GDP Deflator	Q4	0.5%	0.4%	0.4%
Michigan Sentiment	Mar	73.6	73.0	72.5

Next week’s economic highlights include Personal Income and Spending and Core PCE Prices on Monday, the Case-Shiller 20-city Index and Consumer Confidence on Tuesday, ADP Employment, Chicago PMI, and Factory Orders on Wednesday, Initial Jobless Claims, Construction Spending, and the ISM Index on Thursday, and March’s jobs data on Friday. Markets will, however, be closed on Friday in observance of Good Friday.

Oil climbed higher in early trade on geopolitical worries, but it then fell back off and ended back at $80 a barrel after it was claimed that the sinking of a South Korean ship was not caused by an attack, but likely by an internal explosion.

The U.S. dollar index fell as the euro rose on news that euro zone leaders agreed on a safety net for Greece.

Treasuries rose as the Dow, Nasdaq, and S&P failed to hold on to their early gains in reaction to news of Greece’s aid package.

Among the big names making news in the market Friday were UBS, AIG, JPMorgan, Lehman Brothers, Wal-Mart, and Anheuser-Busch.

“We won't know for a while what the CFTC will do about position limits in the precious metals [if anything] for quite some time I would imagine. They know what the problem is, the bullion banks that are at the heart of it... and how to fix. But they still haven't dealt with the Ted Butler-instigated 18-month old silver price manipulation investigation that's still on-going... so we'll just have to twiddle our thumbs until they make a decision on all this. But the whole issue is now in the public domain for all to see... and that has to be a good thing, as they can't say they weren't warned when the silver situation finally blows up in their faces.

One of the most interesting stories to come out of yesterday's hearings was this "Deep Throat" trader out of London that I mentioned briefly yesterday. He warned the CFTC in a series of e-mails about an upcoming decline in the silver market that JPMorgan instigated. He wanted to speak at the CFTC hearings, but was denied. The series of e-mails he sent to the CFTC is contained in a GATA dispatch bearing the headline "A London trader walks the CFTC through a silver manipulation in advance". What's in these e-mails should be no surprise to anyone... as it pretty much describes what both Ted Butler and GATA have been saying for years about the actual process itself... and you've certainly seen me talk about it in this column on many occasions as well. Now we have solid confirmation that this is all true. This is a must read... and the link is here.”– From Ed Steer’s Gold & Silver Daily, read the full report here.

Gold is performing admirably given the extreme volatility in the currency markets. After yesterday’s drop lower in the Euro coming on the heels of Trichet’s comments about IMF involvement with Greece, gold held very steady as more and more it seems as if it has taken on a solid role as an alternative currency in the minds of Europeans. That cannot but help to steady it and provide a solid base of support beneath the market. As the Euro staged a sharp rally this morning, gold then shot higher recapturing the $1,100 level as startled bears ran for cover.

In terms of the Pound and the Euro, it is still holding above 700 and 800 respectively.

The Euro rally coming on a Friday after it has been lower all week and especially after breaking through a critical support level just under the 13500 level, is a bit difficult to read. It could be pre-weekend short covering as traders who were short book substantial profits or it could be the start of something more. Markets oftentimes tend to bottom when the bearish news seems to be the worst. We will need to see what occurs next week to get some additional insight.

I want to continue emphasizing that the rally in the Dollar has NOTHING to do with any set of bullish fundamental factors. Rather the greenback has been trading more as the "anti-Euro" or should I say a bit more accurately, "the anti-Europe" currency. The Dollar’s fundamentals remain abysmal with no end in sight to fiscal budget deficits of a magnitude that are terrifying in their implications. Bernanke’s testimony yesterday was more or less a regurgitation of low interest rates for some time which is what put the fire under the equity markets in the earlier part of the day. All the stock market knows is that it has a low interest rate environment and that is enough for the bulls to become giddy especially with the financials making all that money.

Here’s the problem – once it appears as if interest rates are headed higher, the equity markets are going to get much more concerned about such things as job growth and profits but not just profits that have come from cutting expenses but rather profits coming from increases in sales. That is going to be a tall order for expectations to be exceeded especially as richly as some of these stocks have become valued. Record home foreclosures, mortgage delinquencies, states’ budgetary woes, continued job losses and high levels of underemployment remain strong headwinds to any sustainable economic improvement especially if monetary accommodation were to abate.

Back to gold – the market has refused to break down even with the Dollar moving up through a tough resistance level signifying that the buying down near $1,088 – $1,090 has been substantial.

The push back above the $1,100 level and back into the former trading range between $1,130 on the top and $1,100 on the bottom is friendly as it indicates that bears were either unable or unwilling to press the market down much lower after it moved into the $1088 region. No doubt strong physical market buying thwarted their intentions. We will now have to watch to see if the bulls can keep price above this $1,100 level. As I write this and the Euro fades somewhat off its highs, gold is moving lower alongside of it surrendering its best levels of the session.

I still believe that the Central Banks of both China and India are interested in acquiring more physical gold for their reserve diversification process and will be active if they feel price is at an attractive level. Consider their plight – they were moving from Dollar denominated paper to increasing holdings in Euro denominated debt – what did that gain them with the collapse in the Euro? Move to British Pound denominated debt? Sure – why not if you are a glutton for punishment. Gold just keeps looking more and more attractive in this environment.

The HUI needs to get back above 405 and maintain that level to make me feel more comfortable. Support has emerged just above 390 near the 392 level indicating that the mining stocks are also attracting buying near current levels but there is not yet enough momentum to the upside to take the index baack above 420 which is where it needs to move to force out some shorts and attract additional allies to the bullish cause.

Those of you who have been watching or viewing the CFTC meetings on the metals markets will understand when I give a public heart-felt thank you to my friend Bill Murphy and his sidekick Chris Powell for all the hard work and dedication that they have provided to the cause. They and GATA have been ridiculed and pooh-poohed by many "analysts" in the metals markets and derogatorically dismissed as "tin-foiled hat" conspiracy theory advocates, and yet they have persisted and now, come what may, they have had a chance to make their case heard openly at the highest levels of enforcement within our futures markets. The CFTC does not invite ninnies to testify. Hats off to you both guys! Your critics owe you a deep apology but somehow I doubt you will see that based on the character of some of those who have condescendingly ridiculed you. Your facts and evidence were never disputed by these bomb-throwers – their entire case consisted of ad hominum attacks.

As I have said many times, I have traded the markets for a long, long time and have never seen any other markets trade as strangely, counterintuitively and even perversely as the metals. Traders are not particularly unbiased folks since we all must have a "view" in order to make money but even the most disinterested observer of long experience has to notice the odd behavior of the gold market especially on major report days. When one sits here day after day after day observing every single tick all day long, before long you get a "feel" for things and instinctively realize when something is out of whack.

A brief word on the long bond- if they take out this week’s low on strong volume, Katie bar the door especially if the yield on the 10 year rises into the 4.25% range. You can then kiss any recovery in the real estate market goodbye.

One last thing – the torpedoing of a South Korean Naval ship apparently by North Korea needs to be watched for signs of reprisals or an increasing of tensions in the region. Even the equity bulls could not ignore any escalations of conflict that might occur.”- Dan Norcini, More at JSMineset.com

Note: Change in Total Tonnes from yesterday’s data: SPDR added 4.568 tonnes and the LSE subtracted 0.78 tonnes.

COMEX Gold Trust (IAU) Total Tonnes in Trust: 76.96 - No change from yesterday’s data.

Silver Trust (SLV) Total Tonnes in Trust: 9,278.18 - No change from yesterday’s data.

Gold Fields’ (GFI) third quarter production, IAMGOLD’s (IAG) credit facility, Buenaventura’s (BVN) mine strikes, and MAG Silver’s (MVG) assay results were among the big stories in the gold and silver mining industry making headlines Friday.

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

San Gold reports fourth quarter and year-end 2009 financial results - More
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Champion Minerals Amends Option and Joint Venture Agreements - More
- March 26, 2010 | Item | ShareThis

Vault Minerals Confirms Mailing of Meeting Notice and Circular for its Proposed Amalgamation with Queenston - More
- March 26, 2010 | Item | ShareThis

Lounor drills 9.7 g/t Au at Harker - More
- March 26, 2010 | Item | ShareThis

Starcore International Mines Ltd.: New Chairman Appointed - More
- March 26, 2010 | Item | ShareThis

Duncastle Closes Private Placements - More
- March 26, 2010 | Item | ShareThis

Nirek Resources Inc. and Guardians of Gold Inc. Exchange Offer for 20% of Silver Dragon Resources Inc. - More
- March 26, 2010 | Item | ShareThis

GoldSpring Solicits Consent for Reverse Stock Split in Connection With its Strategic Plan - More
- March 26, 2010 | Item | ShareThis

Induced Potential and Enzyme Leach Surveys Planned at Lluvia de Oro - La Jojoba Project - More
- March 26, 2010 | Item | ShareThis

Adroit Resources Inc.: Six New Permits Granted in Central Italy and Expropriation Appeal Hearing Date - More
- March 26, 2010 | Item | ShareThis

Q3 F2010 Production in Line With Guidance - "Gold Fields Limited (Gold Fields) (JSE, NYSE, NASDAQ Dubai: GFI) today announced that attributable Group production for Q3 F2010 is expected to be approximately 800koz, in line with the revised guidance issued on 23 February 2010." More
- March 26, 2010 | Item | ShareThis

Dutch Gold Subsidiary, Aultra Gold, Inc., Closes Merger With Shamika Gold, Inc., Taking Position in Emerging Junior Gold Miner in the DRC - More
- March 26, 2010 | Item | ShareThis

Cantex presents Nevada drill program - More
- March 26, 2010 | Item | ShareThis

Corporate Update: Kent Commences IP Survey on Alexander River Gold Project - More
- March 26, 2010 | Item | ShareThis

Fortune Minerals releases 2009 annual results - More
- March 26, 2010 | Item | ShareThis

Atna Resources Reports Fourth Quarter and Year End 2009 Results - More
- March 26, 2010 | Item | ShareThis

United Mines, Inc. Board Clarifies Stock Dividend Program - More
- March 26, 2010 | Item | ShareThis

First Liberty Power Corp. Appoints Geologist John Rud as V.P. Exploration and Special Advisor to Board of Directors - More
- March 26, 2010 | Item | ShareThis

Goldstone Announces New V.P. Exploration - More
- March 26, 2010 | Item | ShareThis

Nord Resources Receives Further Extension from the TSX on Listing Review - More
- March 26, 2010 | Item | ShareThis

MetalCORP Limited Completes First Hole at Hemlo East Project & Expands Program at Pickle Lake - More
- March 26, 2010 | Item | ShareThis

Glass Earth's WKP Joint Venture With Newmont Commences Drilling - More
- March 26, 2010 | Item | ShareThis

Yukon-Nevada Gold Corp. announces private placement - More
- March 26, 2010 | Item | ShareThis

Western Copper Initiates Drilling at Casino - More
- March 26, 2010 | Item | ShareThis

Ecometals Announces Analytical Results of First Two Diamond Drill Holes, Preliminary Results of Third Drill Hole, and Consequent Plans to Continue Drilling - More
- March 26, 2010 | Item | ShareThis

Canadian Zinc Files Environmental Assessment Report for Prairie Creek Mine - More
- March 26, 2010 | Item | ShareThis

DOT Announces Amendment to Proposed Financing - More
- March 26, 2010 | Item | ShareThis

Goldrea Announces Private Placement With Chinese Investment Firm - More
- March 26, 2010 | Item | ShareThis

MAG Silver Extends Molybdenum-Gold Zone at Cinco De Mayo - "MAG Silver Corp. (TSX:MAG - News)(AMEX:MVG - News) ("MAG") announces gold and molybdenum ("moly") assay results from on-going drilling (12 reverse circulation holes and 21 diamond drill holes) of the Pozo Seco moly-gold discovery on its 100% owned Cinco de Mayo (or "Cinco") property in northern Chihuahua State, Mexico." More
- March 26, 2010 | Item | ShareThis

IAMGOLD Announces US$350 Million Unsecured Credit Facility; Plus Additional Credit Availability of US$50 Million in Letters of Credit - "IAMGOLD Corporation ("IAMGOLD" or "the Company") (TSX:IMG - News)(NYSE:IAG - News)(BOTSWANA: IAMGOLD) announced today that it has increased its US$140 million secured, revolving credit facility to a US$350 million unsecured, revolving credit facility. Additionally, the Company will enter into a US$50M facility ("LC Facility"), supported by Export Development Canada ("EDC"), for the issuance of letters of credit." More
- March 26, 2010 | Item | ShareThis

Strikes getting underway at Peru's Buenaventura mine -union - "Buenaventura (BVN.LM) (BVN.N) workers would down tools early on Friday at the Antapite gold mine, Luis Castillo, head of the country's largest federation of mine workers, said late on Thursday." More
- March 26, 2010 | Item | ShareThis

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