Gold Seeker Weekly Wrap-Up: Gold and Silver Gain For the Third Week in Four

	Close	Gain/Loss	On Week
Gold	$1153.15	+$10.80	+1.53%
Silver	$18.16	+$0.17	+2.89%
XAU	172.43	+1.10%	+2.23%
HUI	442.16	+1.72%	+3.31%
GDM	1328.12	1.73%	+3.35%
JSE Gold	2312.91	+35.53	+2.48%
USD	81.42	-0.24	+0.82%
Euro	133.69	+0.76	-1.01%
Yen	106.36	-0.68	-2.02%
Oil	$85.12	+$1.42	+2.43%
10-Year	3.817%	+0.035	+1.25%
Bond	117.09375	-0.40625	+0.62%
Dow	11204.28	+0.63%	+1.68%
Nasdaq	2530.15	+0.44%	+1.97%
S&P	1217.28	+0.71%	+2.11%

Gold traded modestly lower in Asia and London and fell to see a $7.27 loss as at low as $1135.08 by about 10AM EST, but it then exploded higher in the next hour and half of trade and ended near its late morning high of $1156.65 with a gain of 0.95%. Silver fell to $17.832 in early New York trade before it jumped to as high as $18.212 by early afternoon and ended with a gain of 0.94%.

Euro gold rose to about €863, platinum lost $3 to $1731.50, and copper rose a few cents to about $3.52.

Gold and silver equities fell over 1% at the open, but they rose to see roughly 1% gains by late morning and remained at about that level for the rest of the day.

Report	For	Reading	Expected	Previous
Durable Orders	Mar	-1.3%	0.1%	1.1%
Durable Orders ex trans.	Mar	2.8%	0.7%	1.7%
New Home Sales	Mar	411K	330K	324K

Next week’s economic highlights include the Case-Shiller 20-city Index and Consumer Confidence on Tuesday, the FOMC rate decision on Wednesday, Initial Jobless Claims on Thursday, and GDP, Chicago PMI, and Michigan Sentiment on Friday.

Oil rose as the U.S. dollar index and treasuries fell on Greece’s request for a bailout from the EU and the IMF that pushed the euro higher following support for the move by European leaders.

The Dow, Nasdaq, and S&P ended decently higher as better than expected home sales data overcame worries over Greece’s need for a bailout.

Among the big names making news in the market Friday were Travelers, Xerox, UBS, Exelon, United and Continental, and Nokia.

“The sovereign debt crisis is now a genie that cannot be put back in the bottle. As you read in the last Ambrose Evans-Pritchard offering, the credit markets went wild in Europe yesterday. The slippery slope to economic, financial and monetary Armageddon got a lot steeper yesterday... as things lurched from bad to worse... much worse.

As I've stated many times before. There are only three ways [or combinations thereof] that this whole thing will end. A deflationary implosion, a hyperinflationary depression... or a massive re-pricing of gold in order to bolster the asset side of central banks' balance sheets. With that in mind, it's no wonder that Russia is wolfing down internal gold production while the currencies they pay for it with are still worth something. Along with China, one has to wonder what other central banks are doing the same thing at the moment. James Turk's article on hyperinflation that I posted in this column yesterday, may prove prescient. If you wish to refresh your memory... click here.”– From Ed Steer’s Gold & Silver Daily, read the full report here.

What an impressive performance gold put in today! Having been knocked down overnight on continuing myopic fears concerning Greece and subsequent weakness in the Euro, it staged a powerful rally beginning near mid morning. The climb higher was steady signifying that not only a sizeable bout of short covering was occurring but also an influx of new buying was occurring.

During the run up from session lows, it was once again the 10 day moving average that initially served to cap the upward progress. Once buyers were able to eat through the offers appearing at that level, some of the shorts decided to get out. Their exit provided enough impetus to allow price to then push further past this tough resistance level with the result that the market is now on a firm enough footing to have a legitimate shot at testing the $1162 – $1165 level. The chart has clearly turned friendly with today’s push higher.

If gold can muster sufficient strength to clear $1165, the bears are in trouble as only $1175 stands between them and a swift run to $1200.

A point of interest – gold priced in Euro terms is less than 2 euros off its all time record high at today’s PM Fix. Clearly the yellow metal is performing incredibly well when priced in terms of the various European currencies. That is one of the reasons that the Comex bears cannot break it down technically and why it continues to attract buying on dips in price.

I want to repeat for what seems like the umpteenth time – those Elliot Wavers who keep calling for gold’s demise are misguided because their view of the metal is too “Dollar-priced” centered. This is the fatal flaw in their “analysis” and their incessant bearish gold calls. They treat the metal as if it was a common commodity not understanding its role as a CURRENCY. Any analysis that does not grasp this simple fact is doomed to failure for we are not talking about soybeans here or cocoa but a metal that has had an historic role as a currency and a store of value for thousands of years. The failure to see the price of gold in various other currency terms leads to erroneous conclusions. Any market that is going on to make all new lifetime highs is not bearish. It really is that simple and arguments to the contrary are based more on hope and wishing than solid, objective analysis.

The HUI finally cleared the 10 day moving average today as well which has been a roadblock in its path higher. It has some resistance centered near 445 on its chart before it encounters much stronger resistance near 450 – 452. Some of the shorter term oriented technical indicators are generating buy signals as a result of today’s price action. We’ll need to see how they close.

Interestingly enough, crude oil has a chart that for the last month has been rather closely resembling that of gold. If that linkage continues, further strength in the energy markets will translate to further buying in the metal. Logically that continues to make sense as higher energy costs will feed through the entire commodity working to push up prices on just about everything. A closing push through $86 will set crude on a path to challenge $90. If that occurs, get ready for the cacophony of complaints about rising gasoline prices. Seasonally, Memorial Day marks the kick off of the summer driving season so it is difficult to see sustained weakness in energy prices as we move into this period. It would take some sort of bearish supply news or horrific news on the economic front for any sharp sells to fail to meet with buying.

I am still watching to see if the CCI (Continuous Commodity Index) can mount a charge to 500. Weakness in the grain complex today is not helping it much but even at that, its price chart shows that it has been able to keep its footing ABOVE the 50% Fibonacci retracement level drawn off the 2008 high and the 2008 low on its monthly chart. The longer it can do so, the more likely the stage is being set for a push through that 500 level. Some analysts are fretting about the commodity complex based on the continued strength in the Dollar, but for the most part, the sector has been able to shrug off concerns about that and seems to be trading more on the individual supply and demand merits of its components. Managed money is flowing to this sector and as long as it does, the trend is higher. We will be monitoring this index for future clues to commodity prices in general as a higher trend works to the benefit of gold.”- Dan Norcini, More at JSMineset.com

Note: Change in Total Tonnes from yesterday’s data: SPDR subtracted 0.913 tonnes.

COMEX Gold Trust (IAU) Total Tonnes in Trust: 76.78: +0.30 change from yesterday’s data.

Silver Trust (SLV) Total Tonnes in Trust: 8,912.94 - No change from yesterday’s data.

Newmont’s (NEM) sold joint venture interest, Minco Silver’s (MSV.TO) expected repayment, and Excellon’s (EXN.TO) property addition 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.

Golden Phoenix Forms Top Echelon Advisory Committee to Assist Expansion of Corporate Mine Portfolio - More
- April 23, 2010 | Item | ShareThis

Gryphon Gold Corporation Appoints Steven Craig as VP Exploration - More
- April 23, 2010 | Item | ShareThis

Newmont Receives Three Million Shares of Lydian International Inc. as Consideration for the Sale of Its JV Interest in the Amulsar Gold Project - "Newmont Mining Corporation (NYSE:NEM - News) ("Newmont" or the "Company") announced today that its wholly-owned subsidiary, Newmont Overseas Exploration Limited ("NOEL"), has sold its joint venture interest in the Amulsar Gold Project to its joint venture partner Lydian International Inc. ("Lydian") (TSX:LYD.to - News). On closing of the transaction, NOEL was issued three million ordinary shares of Lydian and received the first installment of future cash payments in accordance with the purchase agreement." More
- April 23, 2010 | Item | ShareThis

Philex Gold Receives Court Approval for Plan of Arrangement - More
- April 23, 2010 | Item | ShareThis

Fortune River Grants Stock Options - More
- April 23, 2010 | Item | ShareThis

DIOS: Airborne Geophysical Survey Starting Today on Shipshaw Carbonatite Complex - More
- April 23, 2010 | Item | ShareThis

Augusta Closes $43 Million Loan Facility and Copper Off-take Agreement with Red Kite - More
- April 23, 2010 | Item | ShareThis

SIRIOS Resources: Grant of Incentive Stock Options - More
- April 23, 2010 | Item | ShareThis

Majestic Gold Greatly Increases Resources at Its Songjiagou Project - More
- April 23, 2010 | Item | ShareThis

Riverstone Announces Financial Advisor, Stock Options - More
- April 23, 2010 | Item | ShareThis

Gold Canyon Holds Annual General Meeting of Shareholders - More
- April 23, 2010 | Item | ShareThis

Lydian International Limited Completes Closing on Its Purchase of 100% Interest in Amulsar Gold Project - More
- April 23, 2010 | Item | ShareThis

Minco Silver Expects to Receive the Repayment of All Investments Made to Sterling As a Result of Its Unsuccessful Bid to Acquire the Sterling Mining Company - "Minco Silver Corporation (the "Company" or "Minco Silver") (TSX:MSV - News) announces that the Company was unsuccessful in its bid to acquire 100% of the shares of Sterling Mining Company ("Sterling") during a bankruptcy auction held on April 21, 2010. As a result, the Company expects to receive the repayment of all amounts advanced and incurred on the Sterling matter, with interest, in the aggregate amount of approximately US$11.76 million, secured by all assets of Sterling." More
- April 23, 2010 | Item | ShareThis

Marifil Regains 100% Interest in Its Las Aguilas Copper-Nickel-PGE Property, Argentina - More
- April 23, 2010 | Item | ShareThis

Excellon Announces Property Addition at Platosa - "Excellon Resources Inc. (TSX:EXN - News) is pleased to announce that it has staked an 18,000 ha (45,000 acres) mineral concession over ground recently released by the Mexican Geological Service (SGM). The area, immediately adjoining the south portion of the Platosa property is shown on the map below." More
- April 23, 2010 | Item | ShareThis

Inmet Announces Closing of Private Placement of $500 Million of Subscription Receipts to Wholly-Owned Subsidiary of Temasek Holdings - More
- April 23, 2010 | Item | ShareThis

Blackstone Director Resigns - More
- April 23, 2010 | Item | ShareThis

Source Announces $551,250 Financing - More
- April 23, 2010 | Item | ShareThis

Gold Bullion Outlines Large Mineralized System at Granada - More
- April 23, 2010 | Item | ShareThis

NWM Mining Corporation receives permits for mining - More
- April 23, 2010 | Item | ShareThis

Quest Uranium Corporation Changes Name to Quest Rare Minerals Ltd. - More
- April 23, 2010 | Item | ShareThis

UraStar Energy Inc. Appoints Charles W. (Bill) Reed to Board of Directors - More
- April 23, 2010 | Item | ShareThis

Loncor reports initial gold assay results from its Yindi prospect at Ngayu Project - More
- April 23, 2010 | Item | ShareThis

Argentex drills 4.03 meters of 297.4 g/t silver at Pinguino; another new gold vein discovered - More
- April 23, 2010 | Item | ShareThis

First Gold Closes a Private Placement for $2,000,000 - More
- April 23, 2010 | Item | ShareThis

Nord Resources Granted Extension of Forbearance Agreement by Nedbank - More
- April 23, 2010 | Item | ShareThis

Moly Mines Welcomes Hanlong as Major Shareholder - More
- April 23, 2010 | Item | ShareThis

Castillian Provides Corporate Update - More
- April 23, 2010 | Item | ShareThis

Nevada Copper Drills Over 650 Feet Of Greater Than 0.70% Copper In Three Separate Intervals Including 126.5 Feet Of 1.38% Copper - More
- April 23, 2010 | Item | ShareThis

Gold miners set to shine on gold price, M&A pick up - "Gold mining shares are set to exceed gains from last year, fueled by a bullish outlook for gold prices and a pick-up in merger and acquisition activity, potentially giving the sector an edge over other miners." More
- April 23, 2010 | Item | ShareThis

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