Gold Seeker Closing Report: Gold Climbs to New Record Highs and Silver Gains Almost 4%

	Close	Gain/Loss
Gold	$1219.25	+$19.35
Silver	$19.23	+$0.72
XAU	184.25	+4.28%
HUI	488.36	+6.00%
GDM	1465.85	+5.79%
JSE Gold	2511.50	+124.47
USD	84.52	+0.36
Euro	126.82	-0.99
Yen	107.83	+0.65
Oil	$76.03	-$0.77
10-Year	3.535%	-0.004
T-Bond	120.78125	-0.0625
Dow	10748.26	-0.34%
Nasdaq	2375.31	+0.03%
S&P	1155.79	-0.34%

Gold rose as much as $24.30 to as high as $1224.20 by about 10AM EST in New York before it fell back off a bit in the last few hours of trade, but it still made a new record closing high and ended with a gain of 1.61%. Silver climbed to as high as $19.322 by early afternoon in New York and ended with a gain of 3.89%.

After hours action – Gold has surpassed its previous record intraday high of $1226.40 set on December 3^rd, 2009 and has risen to as high as $1234.25 at the time of writing. Follow the action with our live charts here.

Euro gold rose to a new record high above €957, platinum gained $12.50 to $1694, and copper fell a couple of cents to about $3.20.

Gold and silver equities soared higher throughout most of trade and ended with roughly 5% gains.

Report	For	Reading	Expected	Previous
Wholesale Inventories	Mar	0.4%	0.5%	0.6%

Tomorrow at 8:30AM EST brings the Trade Balance for March expected at -$40.5 billion and at 2PM is the Treasury Budget for April expected at -$28.5 billion.

Oil fell and the U.S. dollar index rose as the euro dropped on uncertainty over Europe’s $1 trillion aid package.

Treasuries fell following today’s 3-year note auction that drew a high yield of 1.414% with a bid to cover of 3.27.

The Dow, Nasdaq, and S&P reversed early morning losses and saw modest gains midday, but they then fell back off into the close and ended mixed and near unchanged on worries over Europe.

Among the big names making news in the market today were Goldman Sachs, Toyota, and Fidelity.

Talk about letting the wind out of the sails of the Euro party boat – as mentioned yesterday, considering the fact that EURO-TARP was worth nearly $1 trillion, the fact that the Euro opened the Sunday-evening session on its high and then pretty much went lower from there, was a sign that the market was signaling the problems in Euro land are not going away anytime soon. When a currency gaps higher and then sells off from there, it is the same thing as the Forex markets collectively slapping the face of the monetary and political leaders of a nation.

The authorities may have bought themselves some time and served to prevent an immediate meltdown but the ugly truth is that for all the fanfare, the underlying disease that caused the symptoms has NOT been addressed. The problem – too many Euro zone countries have too many people living off the public dole and they can no longer afford it. Exactly how is Greece, or for that matter, some of the other weaker Euro Zone countries, going to pay off any loans or are we to believe that they can just roll the debt over and over indefinitely into the future without getting their fiscal houses in order? The slightest attempt to impose austerity measures or at the very least attempt to scale back spending, produces riots in the streets as the addicts cannot do without their fix. Yet, without such reforms, their bonds are still going to decline in value.

Keep in mind that it is many of the big European banks who own those IOU’s. Here we go again – perhaps we need a new bumper sticker to go next to that “Save the Whales” one. It could read, “Save the Banks”, and show a nasty, evil, vile speculator beating a poor, helpless, bruised and bandaged bank building with a big, giant, spiked club. That might engender some sympathy on the part of the hapless citizenry who will end up being the ones paying to bail out these fools who stuffed their coffers full of this debt in the first place and then had the temerity to complain to the governments about their losses. It seems that no matter what, the big banks end up fleecing the public.

What appears to be happening, and this might just be wishful thinking on my part, is that slowly, and almost reluctantly, investors are becoming awakened to the awful realization of the gargantuan sums of indebtedness that the West is piling up. They are still reflexively running into US Treasury debt when crises arise but it is inevitable that at some point, the same sort of scrutiny is going to be turned onto the US’s increasingly untenable debt situation. The unfortunate by-product of this flight to “safety” in US Treasuries is that it beguiles Washington politicians into thinking that there are ZERO consequences to spending money that the government does not have and thus it keeps putting off dealing with the profligate spending habits of the political class until another day. Sooner rather than later, “the other day”, will arrive with a fury of its own.

While I am pleased to see gold moving higher I am also keenly aware that its move higher is signaling that the unpleasant fallout from years of excess is going to be arriving on our own shores as well. That troubles me greatly as a father whose children will reap the pain from the aftermath of the folly of our current leadership. Again, that is the reason that we own gold – we are attempting to protect that which we have spent a lifetime in procuring from the depradations of the parasitical banking class and their cronies in positions of power. My own view is simple – banks that make poor investment choices or take on risky trades that go south should be allowed to fail. Make no mistake about it – that is what EURO TARP is all about – bailing out the banks whose coffers are full of the sovereign debt of countries such as Greece, Spain, Portugal and Italy and who are concerned that those are the next dominoes to fall.

This would eliminate moral hazard completely. Those banks that are wise, thrifty, cautious and frugal, can then buy up any of their remaining assets that have quality and the show can then go on. Taxpayers, or as is currently the case, future generations, should not unwillingly, with no say so, be forced to pay for the poor decisions of greedy fools. Saddling a future generation with debt that they did not create is not only immoral, it is wicked.

Back to gold – you can notch up yet another new all time high in the Euro gold and British Pound gold price at today’s PM Fix. Euro gold is rapidly climbing through the €900’s coming in at £960.405 with British pound gold at £824.065. By the way, Dollar priced gold also set a new lifetime high at the London PM Fix today of $1,222.50, eclipsing the all time high fix of December 2, 2009. What this tells us is frighteningly terse – investors are losing confidence in the paper currencies of the West which is another way of saying that they have no confidence in both the ruling class and the monetary overlords.

Incidentally, for you silver buffs out there, silver priced in Euro terms set a new all time high today at the Fix coming in at 1451.54. It certainly appears that those in Europe who cannot afford €900+ gold are moving some of their wealth into silver. I don’t know whether or not silver is moving higher in response to an official investigation into that market or whether it is moving higher on the back of gold or a combination of both, but its chart looks very strong. It is pushing right up against the December 2009 on the weekly chart and should it finish strong this Friday, has a real shot at moving up past $20 and taking on the March 2008 high above $21. Anecdotally, in speaking with acquaintances about where to put their money during this time of uncertainty, I am finding that many look at the price of gold and say, “I cannot afford that”. They do want to own something however so silver looks good to them as it is affordable for the average person out there. It is this role of silver as “poor man’s gold”, which is really coming into play right now especially if you look at the other alternatives such as platinum and palladium which are at $1700 and $530 respectively. Neither of those can be considered affordable for the cash strapped citizen out there but silver certainly is.

On the technical charts, today’s session high in gold is the last barrier between it and a push into a new all time high at the Comex. Rising open interest is a good sign as managed money is still moving into gold with of course, the usual suspects on the sell side. The August contract will soon be front and center as traders roll out of the June. Guys who want to break the back of the bullion banks should stand for delivery and force these paper pushers to come up with the metal. I am still amazed that this is not done especially by those seeking larger amounts of gold. The physical market has it easily within its power to end the charade at the Comex. It could well be that some actually are grateful for the wasted effort of the bullion banks’ gold capping caper as it has made gold much cheaper to own than it would have been otherwise had the price been allowed to rise without all this official sector pressure.

As I noted on the chart, I am going to keep the support lines drawn at the same locations as yesterday in order to give the market a bit of room to move due to the increasing volatility. There is however, light buying support that should come in near the $1197 level. Should upside resistance be taken out at today’s high, the market should quickly push to the all time high. There are a large number of buy stops up there but I am unsure whether there are also lurking sell orders from the bullion banks. I suspect that there are since they too can read technical price charts. Bulls will have to eat through those with conviction to keep upside momentum in their favor.

It looks like those hedge fund ratio trades finally blew up in the face of the hedgies – as I write this the HUI is up nearly 6% on the day versus a gain of 1.5% for Comex gold. That tells us all we need to know about that trade which has now gone south. It looks as if they overstayed their welcome. There appeared to be some unwinding of those yesterday but today there is a wholesale lifting of the positions. We will continue to monitor this to see if further unwinding is in store. If so, look for the gold shares to outperform bullion on a percentage basis until those trades are lifted and the hedge funds take their losses on the short leg. I would not be surprised to see them take the long side of a new ratio trade where they get long the miners and short the broader equities if the problems with Euroland persist. If that trade were to come into vogue, the HUI will easily surpass its all time highs above 500. Let’s see how this progresses.

Crude oil is succumbing to the stronger dollar and natural gas is weak right now so there is not much help on the energy inflation front just yet.

Bonds are down slightly but have not fallen out of bed even though the stock market is higher. It would seem that there are many who do not trust this recent rally in the equities. I want to try to get you an updated chart of the Gold/Bonds ratio chart of mine to see how gold is performing as a safe haven against the US long bond later on today.”- Dan Norcini, More at JSMineset.com

Note: SPDR added 3.652 tonnes to a new record high holding, the LSE added 1.46 tonnes, and the JSE subtracted 0.49 tonnes.

COMEX Gold Trust (IAU) Total Tonnes in Trust: 80.87:+0.76 change from yesterday’s data.

Silver Trust (SLV) Total Tonnes in Trust: 9,087.72 - No change from yesterday’s data.

Apollo’s (AGT) first quarter results, Entree’s (EGI) reserves, Ivanhoe’s (IVN) development plan, Northgate’s (NXG) first quarter results, ITH’s (THM) drill results, Gold Fields’ (GFI) and Buenaventura’s (BVN) discovery, U.S. Silver’s (USA.V) 2009 results, and Silvermex’s (SMR.V) trench assays 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.

Minera Andes Reports Net Income of $1.3 Million for First Quarter 2010 - More
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Dia Bras Announces First Quarter 2010 Interim Results - More
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Mill City proposes amendments to share purchase warrants - More
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Argentex appoints Stephen Hanson as a Director - More
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Far West Mining Ltd: Santo Domingo Drilling Confirms Grades and Extends Mineralization - More
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Buenaventura, Gold Fields make major Peru gold find - "Buenaventura (BVN.LM) (BVN.N) and Gold Fields Limited GFJ.J have found a major gold deposit in their Chucapaca project in southern Peru, near the border with Chile, the companies said on Tuesday.

The Canahuire deposit, which is inside the Chucapaca project area, has a mineral resource estimate of 5.6 million gold equivalent ounces, Buenaventura said in a media release." More
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Harvest Gold Retains Progressive IR as Investor Relations Consultants - More
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U.S. Silver Reports 2009 Financial Results - “2009 was a year of achievements in mine operations, productivity and profitability. With renewed infrastructure and equipment, a highly skilled work force and the rebuilt Galena shaft we are now positioned for the future.” More
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Amarok Resources Inc.: Work Begins on Rodeo Creek Project - More
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Apollo Gold Reports Financial Results for the First Quarter of 2010 - "Apollo Gold Corporation (“Apollo” or the “Company”) (TSX: APG - News) (NYSE Amex: AGT) reports net income of approximately $6.45 million and operating income of approximately $1.79 million for the first quarter ended March 31, 2010 (“Q1 2010”). All dollars reported in this news release are in U.S. currency, unless otherwise noted." More
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Southern Silver Exploration Corp.: Dragoon Project Update - More
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Auriga Gold to Acquire Past-Producing Puffy Lake Gold Mine, Manitoba and Enters Into a Brokered $10 Million Financing With Sandfire Securities - More
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San Anton Announces Revised Terms for Business Combination With Kings Minerals and $3.9 Million Rights Offering - More
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Solid Appoints Kirsten Schwarz as Chief Financial Officer - More
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NWT Uranium Corp.: Niger Uranium New Board Composition - More
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Gold Fields and Buenaventura Announce Major Gold Discovery in Southern Peru - "Chucapaca's joint venture partners, Gold Fields Limited (51%) (Gold Fields) (JSE, NYSE, NASDAQ Dubai: GFI) and Compania de Minas Buenaventura S.A.A. (49%) (Buenaventura, NYSE: BVN), are pleased to announce the discovery of a major gold-copper-silver deposit in their Chucapaca project area (CPA) in southern Peru." More
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Hornby Bay Receives Statement of Claim - More
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Orex Exploration Announces Additional Drilling Results Including 4.07 g/t Au Over 35.5 Meters - More
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Lounor drills 7.49 g/t Au over 2.46 m at Harker - More
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Corex Adds Second Drill to Santana Property - More
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Notice of Ivernia Annual & Special Meeting of Shareholders and First Quarter 2010 Results - More
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Dia Bras Confirms High-Grade Mineralization at San Patricio Property - More
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Update: Tres-Or Gold Exploration in Quebec - More
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Chariot Resources Limited Announces Mailing of Proxy Material - More
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Adex Announces Bench Scale Testwork to Produce Molybdenum Oxide - More
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Emgold Appoints New Chief Executive Officer - More
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Miranda Gold and Ramelius Sign Agreement for Exploration on Big Blue - More
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B2Gold Corp. Corporate Update - More
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Northern Freegold Initiates Resource Expansion Program on Major Gold and Copper Target With 10,000 m Phase 1 Drill Program at Freegold Mountain Project, Yukon - More
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Universal Appoints Bert Jeffries to Board of Directors - More
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Bolero Acquires Additional Contigious Acerage - More
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Quadra Announces Modifications to Proposed Rights Plan - More
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Diamonds North Completes Land Acquisition at Amaruk and Defines Two Gold Bearing Districts - More
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Capella Resources Updates Drill Results on Its Lajitas Project in Chile - More
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Arco Settles Lawsuit Against Mayan Minerals - More
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FNX Mining Company Announces Recommendations from RiskMetrics and Glass, Lewis & Co. That Their Clients Vote FOR the Arrangement Resolution - More
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Canadian Orebodies Completes Sale of 100% Interest in Ring of Fire Properties - More
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North American Palladium Announces First Quarter 2010 Results - More
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Silver America, Inc. Secures $7.5 Million Equity Financing Agreement - More
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Bayfield Expands its Rainy River Gold Drill Program to 20,000 Metres in NW Ontario - More
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Geo Minerals Completes Geophysical Surveys at the Red Hills and Middle Mountain Porphyry Copper Projects, Arizona - More
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Mercator Reports Improving Recoveries and Costs at Mineral Park and Completion of Refinancing Package - More
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Element92 Closes 28% Stake in Gold Trading Company - More
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First Point Announces Adoption of Shareholder Rights Plan - More
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Advanced Explorations Inc. Announces Expanded Program - More
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Update on Newcastle's Pickle Lake Property - More
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Midlands Confirms Northern Extension of the Sian Gold Deposit-Ghana - More
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Peregrine Provides Updates on the Field Programme and Preliminary Economic Assessment, Altar Porphyry Copper-Gold Deposit, Argentina - More
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Wahgoshig First Nation and Detour Gold Sign Agreement in Principle for Completion of Impact Benefit Agreement - More
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Everton Resources Inc.: Update on Exploration Activities on the Ampliacion Pueblo Viejo Project, Central Dominican Republic - More
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Paget Minerals and Richfield Ventures Commence Fieldwork in the Nechako Basin - More
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Mineral Deposits Limited: Share Purchase Plan Extension - More
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Silver Shield signs exclusive agreement - More
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First Mineral Reserves for Entree's Hugo North Extension Included in Initial Underground Mining at Oyu Tolgoi, Mongolia - "Entree Gold Inc. (TSX:ETG; NYSE AMEX:EGI; Frankfurt:EKA - "Entree" or the "Company") is pleased to report the first ore reserves defined under NI 43-101 criteria on the Hugo North Extension deposit in Mongolia." More
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Katanga Announces 2010 First Quarter Results - More
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Erin Signs Serbian Boron Joint Venture Agreement - More
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Ivanhoe Mines Releases New Integrated Development Plan For Oyu Tolgoi Copper-Gold Mining Complex in Mongolia - "A new, independent Integrated Development Plan confirms that Ivanhoe Mines' Oyu Tolgoi Project in southern Mongolia has the mineral resources to become one of the world's top three copper-gold producers and an industry model of responsible, environmentally-sound mineral development, Ivanhoe's Executive Chairman Robert Friedland and President and Chief Executive Officer John Macken announced today." More
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Rusoro Receives Pre-Feasibility Report on the SREP Project - More
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Eskay Mining Announces Proposed Flow-Through Offering of Up to $2,520,000 and Working Capital Offering of Up to $1,500,000 - More
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Energizer Resources Inc. Announces Initial NI 43-101 Compliant Resource Estimate for Its Green Giant Vanadium Project - More
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MGOL Announces Anorí Project and Joint Venture - More
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Eurasian Minerals Inc. Announces Appointment of Dr. M. Stephen Enders as Executive Chairman of the Board and Granting of Incentive Stock Options - More
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Dynacor Reports Net Earnings for Q1 2010 - More
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Cadan Releases Updated NI 43-101 Technical Report for T'Boli Gold Silver Mine - More
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Paladin Energy Ltd-Share Register Movement Second Update - More
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Element 21 Announces Name Change to Reflect Its Expansion of Its Rare Earths & Materials Business - More
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General Metals Releases Additional Independence Drill Results - More
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Goldrea Resources Corp.: Special Meeting of Shareholders-Voting Results - More
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Carpathian Intersects 208 m of 1.13 g/t Au & 0.19% Cu in Romania, & Extends Au-Cu Mineralization 300 m Below Previous Drilling - More
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Big Bear Mining Corp. Receives $1,000,000 From Financing Agreement and Commences Data Collection on Red Lake Property - More
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Silvermex Reports High-Grade Trench Sampling Assays. Highlights Include: 9.70 m of 520.9 g/t Ag, and 1.75 m of 1,770 g/t Ag - "Silvermex Resources Ltd. ("Silvermex") (TSX VENTURE:SMR - News) announces the latest results of its surface trenching program on its optioned San Marcial Property in southern Sinaloa, Mexico. This successful trenching program provided numerous high grade results, 18 of the samples assayed over 300 g/t silver. Highlights include 520.9 g/t silver across 9.70 meters and 1,770 g/t silver over 1.75 meters." More
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Northgate Minerals Reports Solid First Quarter Results - "We are pleased to report solid first quarter production from our three operating mines of 73,362 ounces of gold, highlighted by production at Stawell and Kemess South, which both met their production forecasts. We also continued to generate strong cash flow from operations of $16.3 million, following on the record annual cash flow generated in 2009." More
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International Tower Hill Continues to Grow New High-Grade SW Zone, Livengood Project, Alaska - "International Tower Hill Mines Ltd. ("ITH" or the "Company") is pleased to announce the results for 9 additional holes from the SW Zone and 2 holes from the Sunshine Zone (to view Figure 1, please click on the following link: http://media3.marketwire.com/docs/ith510.pdf). The new results continue to expand and confirm higher grade mineralization in the SW Zone." More
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Gold Fields and Buenaventura Announce Major Gold Discovery in Southern Peru - "Chucapaca's joint venture partners, Gold Fields Limited (51%) (Gold Fields) (JSE, NYSE, NASDAQ Dubai: GFI) and Compania de Minas Buenaventura S.A.A. (49%) (Buenaventura, BVN), are pleased to announce the discovery of a major gold-copper-silver deposit in their Chucapaca project area (CPA) in southern Peru." More
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