Gold Seeker Closing Report: Gold and Silver Fall Over 1% and 5%

	Close	Gain/Loss
Gold	$1168.10	-$14.30
Silver	$17.84	-$0.97
XAU	174.39	-1.23%
HUI	454.27	-0.81%
GDM	1367.46	-0.88%
JSE Gold	2408.96	+14.98
USD	83.32	+0.98
Euro	129.99	-1.91
Yen	105.81	+0.05
Oil	$82.74	-$3.45
10-Year	3.613%	-0.092
T-Bond	120.00	+1.28125
Dow	10926.77	-2.02%
Nasdaq	2424.25	-2.98%
S&P	1173.60	-2.38%

Gold saw slight losses in Asia before it rose in London to see an almost $10 gain at as high as $1192.08 by about 9AM EST, but it then fell off rather markedly for most of the rest of trade in New York and ended near its late session low of $1166.65 with a loss of 1.21%. Silver traded only slightly lower in Asia and London before it also fell off further in New York and ended near its late session low of $17.78 with a loss of 5.16%.

Euro gold rose to a new all-time high at €911.63 before it fell back off and closed near €898, platinum lost $47 to $1671.50, and copper fell over 11 cents to about $3.17.

Gold and silver equities dropped over 2% by late morning before they rebounded a bit in afternoon trade, but they still ended with about 1% losses.

Report	For	Reading	Expected	Previous
Factory Orders	Mar	1.3%	-0.2%	1.3%
Pending Home Sales	Mar	5.3%	5.0%	8.3%

Tomorrow at 8:15AM EST brings ADP Employment for April expected at 30,000 and at 10AM is the ISM Services report for April expected at 56.1.

Oil fell as the U.S. dollar index and treasuries rose on increased worries over sovereign debt in Europe that sent the Dow, Nasdaq, and S&P over 2% lower on the day.

Among the big names making news in the market today were ADM, MasterCard, Interactive Data, Merck, CVS Caremark, UBS, Pfizer, BP, Radian, JPMorgan, and Pimco.

Gold priced in Euro terms, or Euro Gold as I prefer to call it, notched a brand new all time high at today’s PM fix finally clearing the 900 level as it was fixed at €907.281. Yen gold also made another high at the PM Fix as did Sterling gold. This was prior to the selling barrage that swamped the commodity world in New York as the hedge funds were busily disengorging themselves of anything that was remotely tangible and rushing wildly into the safety of, (drum roll here), paper bonds. Yessiree Bob, that is what I call a nice, “let me sleep comfortably” trade. Uncle Sam is issuing these scraps of paper by the trillions and investors can’t get enough of them throwing away gold in the process. Exchanging gold for paper scraps whose yields are dropping off a cliff – excuse me while I shake my head as I marvel at this display of mental acumen by the boy wonders of the hedge fund world. One computer algorithm to rule them all.

Don’t let today’s blind selling panic shake your settled conviction concerning gold. Any setback in price is not going to last long as the causes behind the continued strength in gold are intensifying, not lessening. Investors rightly fear a contagion effect from Greece towards other weaker members of the Euro zone such as Spain and Portugal. Then there is Italy and perhaps some of the Eastern European nations bordering on the Euro zone.

This pales in comparison to what is occurring in the states here in the US but the financial press will have nothing to do with that – for now. German banks are stuck holding gobs of Greek debt but how would you feel holding gobs of California’s, or Illinois’s, or New York’s debt. What got the ball rolling downhill for Greece, even though everyone and their mother knew about it for a while, is the ratings downgrade by the rating agencies. Eventually those “way behind the curve” folks will get around to training their guns on the various US States. That is when things will get nasty.

With all this commodity related selling, copper is getting beaten with an ugly stick having lost .40 over the last month and has now surrendered all of its gains for the year. The weekly chart still shows a market in an uptrend however so this indicator has not completely rolled over as of yet. It would have to drop below $3.00 to have me concerned about a double top although price is approaching both the 40 week and 50 week moving averages. If it is going to hold, it will hold at either one of those two levels. That means copper bulls need to come up with some sort of convincing argument to justify a resumption of the uptrend sooner rather than later.

Weakness in the base metals as well as platinum and palladium helped pull silver lower today.

Crude oil, another key commodity and forward looking indicator, is not escaping the selling wave today either but at this point is still trading higher than where it began this year. It too has a weekly chart which shows a market in an uptrend. I would have to see crude oil trading below $70 to say definitively that a longer term top is in. Crude could very well work in a broader trading range with a higher bias as it is entering a seasonally strong period. It spent the better part of February and March working between 83 and 78 before moving up to its current range between 87 and 80.

The equity markets have not been very kind to would-be shorts ( I should know) but today’s cascade into the abyss has created some serious technical chart damage. The S&P has been a one way trip north for three months now and it finally appears that the “nothing but blue skies” crowd has had a dose of reality. Soaring profits for the financial stocks has led many to conclude that the banking system is back on solid ground and given rise to hopes that lending would be picking up as the economy supposedly garnered strength on the willingness to borrow once again. The problem is that the banks are making money not by lending but more so by trading. Why take on risk when you can trade virtually risk free has been their motto. The higher the long bond moves in price, the tougher it is for them to play the interest rate differential game.

The S&P is now sitting squarely on its 50 day moving average on the daily chart. A breach of this level which cannot be recovered before the closing bell or additional downside action tomorrow that cannot recapture this level, is going to turn many technical indicators that the funds use to the sell side. The onus is now on the bulls to perform and see whether or not they can avoid handing control over the market to the shorts. They have proved quite adept at snatching victory out of the jaws of defeat this entire year. One thing working in the favor of the bulls is that the longer-term oriented weekly chart still shows the S&P in an uptrend with price well above the rising 40 week and 50 week moving average although a poor close by the end of this week will tend to confirm the bearish engulfing pattern shown on this same weekly chart. How this market closes Friday of this week is going to set the tone for some time.

The long bond took to the heavens today as it surged past my initial target near the 119 ^20 level moving all the way to 120 ^01 before setting back a tad. A strong finish to the week would set the bulls up for a decent shot at 121 ^10. About those higher yields on your bank savings accounts – forget about those for now.

Based solely on the price charts as of today, one would be hard pressed to find the “V” shaped recovery chatter having any credibility.

One last comment about the HUI – the mining shares continue to be on the receiving end of the hedge fund ratio trades. They got hit with a double whammy – talk of a 40% Australian tax yesterday plus today’s severe broad equity market sell off was too much for mining share bulls to handle. We will be watching to see when buying support emerges in this sector. The shares are no longer the indicator for gold as they once were, not with the advent of the gold ETF’s which have siphoned off a considerable amount of investment money that would otherwise be finding its way into the miners. Those who designed those infernal creations, knew what they were doing.”- Dan Norcini, More at JSMineset.com

COMEX Gold Trust (IAU) Total Tonnes in Trust: 78.61 - No change from yesterday’s data.

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

Newcrest’s (NCM.AX) takeover of Lihir (LIHR), South African miner profits, Tanzanian Royalty’s (TRE) drill results, Golden Mineral’s (AUMN) first quarter results, and Sabina’s (SBB.V) new gold discovery 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.

Coro Announces 64 Metres At 0.55% Copper From Drilling Program At Chacay Property - More
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Sona Releases New Blackdome Mine Resource Estimate - More
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Xtierra Plans New Drilling at Bilbao - More
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Santa Fe Gold Information to Be Available Through Standard & Poor's Market Access Program - More
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Southeast Asia Mining Closes $1,120,000 Private Placement - More
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Dia Bras Equity Rights Are Now Trading - More
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Aldrin Resources Joint Ventures With Universal Uranium on Brew Property - More
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Otis Gold Corp.: Kilgore Gold Project Update - More
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KWG Resources Inc., Spider Resources Inc. and Freewest Resources Canada Inc. report initial resource estimate for Big Daddy - More
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Victory Nickel Takes Significant Step Forward at Minago with Filing of EIS - More
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AMI Resources Inc. - Results & Recommendations - More
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Dia Bras Plans Major Geophysical Surveys at its Bolivar Property - More
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Millrock Announces Financing and Agreement for Exploration of Estelle Gold Property in Alaska - More
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Kilo Reports Initial Drill Results for Adumbi Target; Includes 3.3 g/t Over 7.9 Metres, Part of a Wide Mineralized Gold-Bearing Package - More
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Lake Shore Gold Advances Third Major Gold Target in Timmins West Complex, Confirms Presence of Large Gold-Bearing System Along Gold River Trend - More
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Sabina Gold & Silver Announces Significant New Gold Discovery at Back River Project, Nunavut - "A significant new gold discovery has been made at Llama Lake approximately 8 km northwest of the Goose deposit and 5 km northwest of the new Echo zone, discovered last year and are shown on Figure 1. Exploration was targeted on Llama based on its similar geophysical signatures with the Goose Deposit. This the first time this target has been drilled. The zones are part of the Company's 100% owned Back River Project that contains an indicated resource of 3.4 million tonnes at 10.9 g/t for 1.19 million ounces gold and an additional inferred resource of 3.6 million tonnes at 10.2 g/t for 1.16 million ounces gold." More
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St-Georges Platinum and Innus Historic Mining Exploration Agreement - More
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Litewave Corp and Innus Historic Mining Exploration Agreement - More
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Abacus Mining and KGHM Agree to Form Strategic Joint Venture to Advance the Afton-Ajax Copper-Gold Project Into Production - More
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Malbex Provides Fiscal 2010 Q2 Update - More
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Alix Obtains Approval for Rare Earth Properties in Quebec/Work Program to Begin Immediately - More
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Pershimco Resources: Corporate Update Q-1 2010 - More
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Rockcliff Resources Inc. Adopts Shareholders Rights Plan - More
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Mountain Boy Minerals Ltd.: 520.4 Grams per Tonne (g/t) Silver 3.23% Lead and 0.84% Zinc Over 3.05 Metres Intersected in the Silver Rich VMS Horizon on the BA C - More
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MDN: The Ikungu Project Continues to Show Good Gold Intersections and Continuity Over 2.5 km - More
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Brazil Gold Reports on Prospecting & Exploration Activities in Brazil - More
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Lateegra Acquires Additional Timmins Destor-Porcupine Fault Gold Property - More
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Bell Copper Corporation - Drilling commences at La Balsa Project - More
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EMC Metals Appoints Mr. George Putnam as Chief Executive Officer & President - More
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Grayd Reports Significantly Increased Gold Resource at La India - More
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Arianne Resources Inc./El Rey Property: 28.36 g/t Au and 245.78 g/t Ag over 3.5 meters - More
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Helio: Infill Diamond Drilling Intersects 79m grading 3.1g/t AU at the Porcupine Target, SMP Gold Project, Tanzania - More
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Coronado Resources Ltd. Ships 82.5 Metric Tons of Copper to Korea and Begins Gold Shipment to Kinross Plant in Washington, USA - More
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Calibre Announces Drilling Update at Borosi Gold-Copper Concessions, Nicaragua - More
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BacTech Gold Signs LOI to Option Gold/Antimony Mine in Guatemala - More
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Silver Falcon Mining, Inc.'s (SFMI) Diamond Creek Mill Facility Produces Gold/Silver for Sale on May 17, 2010 - More
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Universal Uranium JV's Property Next to White Gold in Yukon - More
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Golden Share Provides a First NI 43-101 Compliant Resource Estimate on Pistol Lake - More
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Gold Canyon Announces Last Two Holes End in Mineralization From Springpole Winter Program - More
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Votorantim Metals Canada Inc. finalizes Option/Joint Venture Agreement with El Nino Ventures and Xstrata Zinc - More
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Belmont Completes Phase One-5 Hole-Drilling Program at Lumby/Bufo Property Northeast of the Brett Resources Inc. Hammond Reef Deposit - More
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Tombstone Exploration Corporation to Begin Exploration of Porphyry Copper Targets - More
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Landore Resources Limited (AIM Ticker: LND.L) - Drilling Update - Junior Lake-Lamaune Gold Prospect - More
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Volta Receives New Positive Geophysical Results for the South Area at the Kiaka Gold Project - More
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Uranium Energy Corp Provides Project and Corporate Update - More
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Calibre Announces Drilling Update at Borosi Gold-Copper Concessions, Nicaragua - More
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Alexis Intersects High Grades at Lac Pelletier, Quebec Including 24.77 g/t Gold Over 6.2 Metres - More
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Tasman step out drilling discovers further thick REE intersections at Norra Karr, Sweden - More
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Cash Minerals Signs Heads of Agreement to Purchase 100% Interest of EAM Exploration LLC From East Asia Minerals Corporation - More
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Kivalliq Drilling at the Lac Cinquante Uranium Deposit - More
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Silver Dragon Resources Discovers Significant Tin Mineralization at Laopandao; Commissions 5,100m Drill Program and NI 43-101 Resource/Development Study - More
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Rochester Reports Third Quarter 2010 Operating Results - More
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Cameco Reports First Quarter Earnings - More
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Northern Shield Announces New Ontario Discovery of High Grade Mineralization at Wabassi; Drill Program Extended - More
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Minatura Gold Announces Expansion of Drilling with CRS-V RotoSonic Drills at Zaragoza Project - More
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Centurion Executes Agreements for Banda Raya and Halimon Gold Properties Located Directly North of the Miwah Discovery in Aceh, Sumatra - More
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Lara Options Its Corina Gold Property to Consorcio Minero Horizonte S.A., a Private Peruvian Gold Mining Company - More
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Franconia Minerals Increases Ownership at Birch Lake to 70% - More
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Champion Intersects 38.3% Iron Over 133.9 Metres on the Fire Lake North Claim Block, Fermont Iron Property - More
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Lower output to hit SAfrica gold miners' profits - "Africa's top three gold producers will see a big drop in their March quarter earnings largely due to lower production and rising costs against a marginal rise in the dollar and rand price of bullion." More
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Exploration and resource infill drilling ramping up at Nyota - More
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Orex Commences Drilling on the Coneto Gold-Silver Project - More
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Halo Announces Its Best Ever Intersection at Sherridon - More
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Quantum Acquires Large Niobium-Rare Earth Carbonatite Complex in Nebraska - More
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Rostock Ventures Corp.: Corporate Update - More
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StoneShield Signs Option to Acquire the Tabisco Gold/Silver Project, Mexico; Announces Private Placement of Units - More
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Vena and Gold Fields Begin Exploration at Amantina Gold Target - More
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Minera IRL Limited-Corihuarmi Gold Mine Production March Quarter, 2010 - More
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Orosur Mining Inc.: Iron Ore, Manganese Ore and Base Metals Farm Out - More
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Newcastle Options Its Carscallen Property to SGX Resources Inc. - More
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Stillwater Mining Reports Profit for First Quarter 2010 - More
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Tanzanian Royalty Confirms Initial Expectations of Significant Gold Discovery in Msonga Area at Kigosi Project - "The Company is pleased to announce that a Phase 1 Reverse Circulation (RC) drilling program has confirmed initial expectations of a significant gold discovery on its Msonga Prospect in northern Tanzanian. Msonga is situated on the north end of the Company’s Kigosi Gold Project which encompasses an area of approximately 815 square kilometres and consists of 31 prospecting licenses and applications." More
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Golden Minerals Reports First Quarter 2010 - "For the first quarter 2010, Golden Minerals recorded a net loss of $7.0 million, which included among other items, $2.3 million in revenue net of associated costs for management services and interest and other income of $0.7 million, more than offset by expenses including $3.2 million of exploration expense, $2.5 million of expense related to El Quevar feasibility study work and $2.3 million of administrative expense." More
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