Gold Seeker Closing Report: Gold Climbs to a New Record High and Silver Gains 1.5%

	Close	Gain/Loss
Gold	$1243.05	+$5.15
Silver	$18.40	+$0.27
XAU	174.56	+1.34%
HUI	462.07	+1.13%
GDM	1400.35	+1.17%
JSE Gold	2568.49	+23.55
USD	88.25	-0.26
Euro	119.53	+0.38
Yen	109.43	-0.05
Oil	$71.99	+$0.55
10-Year	3.168%	-0.016
T-Bond	124.59375	+0.3125
Dow	9939.98	+1.26%
Nasdaq	2170.57	-0.15%
S&P	1062.00	+1.10%

Gold waffled near unchanged in Asia and rose in early London action to a new record intraday high of $1251.68 by a little before 6AM EST before it fell back to $1240.75 by just before 10AM EST in New York, but it then bounced back higher in the last few hours of trade and ended at new record closing high with a gain of 0.42%. Silver climbed to as high as $18.421 in London before it dropped back under $18.25 in early New York trade, but it then rose to a new session high of $18.461 in the last minutes of trade and ended with a gain of 1.49%.

Euro gold rose to a new record high at about €1040, platinum gained $7 to $1519, and copper rose slightly to about $2.77.

Gold and silver equities rose roughly 3% by early afternoon before they fell back off in the last few hours of trade, but they still ended with over 1% gains.

There were no major economic reports today. Tomorrow at 10AM EST brings Wholesale Inventories for April expected at 0.5% and at 2PM is the fed’s Beige Bok for June.

Oil rose as the U.S. dollar index fell after the euro bounced from yesterday’s new 4-year low on Fitch’s warning over the UK’s spending that send the pound lower.

Treasuries rose after today’s $36 billion 3-year note auction drew a yield of 1.18%.

The Dow and S&P rose over 1% on easing worries over the overall economy while the Nasdaq remained lower on concerns over technology growth.

Among the big names making news in the market today were McDonald’s, Microsoft, Apple, Canto, and General Motors.

A warning from rating agency Fitch concerning the state of the UK’s finances rekindled investor fears towards Europe and was the catalyst for a push into a new all time gold not only in US Dollar terms but also in terms of both the Euro and the British Pound. All three notched records at the PM fix in London today.

Last evening it appeared that happy talk from Chairman Bernanke about the US’s “moderate recovery” had relieved investor worries and given the markets a bit of relief from the pounding of late. That did not last long however. Two things dented the feel-good mode – Bernanke mentioned that unemployment is going to stay high for a while and then came Fitch.

The problem for the spinmeisters is that the very nature of the chronic debt-related issues that plague so many nations of the West simply cannot be talked away any more. They are too deep-seated to gloss over and while the monetary authorities and assorted politicians would hope that they are nothing more than a mere speed bump on the road towards a permanent prosperity, the reality is that a serious, long term plan to address them does not currently exist. Witness the all out war that New Jersey’s daring new governor is having with the Teacher’s Union to get public spending under control in that state and you can easily see why the task at hand has so few takers at the federal level. It is going to take leaders who are intent on doing the right thing regardless of the consequences if this insane and immoral spending spree is to cease. Failing that the indebtedness will continue to the point where the bulk of the yearly budget will be spent on servicing the interest alone. Then what?

Gold is reacting to all of this as instability (which is the best word that I know to describe the financial system at present) and is why it continues making all time highs even as there is a general weakness in the overall commodity sector. It is not currently moving higher on inflationary fears but is trading as a currency in its own right. This general feeling of unrest, unease, fear, caution, concern (pick whatever word one deems best) is moving investors and ordinary citizens to own something that they regard as “stable” versus everything else. Should the inflation genie get out of the bottle at some point, the metal will shoot sharply higher very quickly but for now, it is distrust of paper currencies and the debt associated with those which is moving it.

To the technical price charts – gold did push past the previous all time high but needs a close into new record high territory to keep the momentum crowd on the bid. As you can see on the chart (which I left pretty much unchanged from yesterday), it ran into resistance at the upsloping median line just above the horizontal blue line marked, “resistance”. Open interest from yesterday showed an increase but not to the extent I would have thought based on the price action. That tells me that we did have some significant short covering occurring yesterday among the weaker-handed shorts with the bullion banks attempting to dig in and further increase their shorts as they take the place of their “allies” who cut and ran.

We still have the same problem with the gold shares that we have had for some time now – the hedgies are leaning on them with those infernal ratio trades where they buy the bullion and short the share market. The HUI is well off its recent high from last month near 502 and quite a bit lower than the December 2009 high above 516. That is not to say that the HUI chart is not constructive; it is, as all the major moving averages are trending higher again but until it can clear 500 on two consecutive trading sessions, it is going to leave many holders frustrated. I wish I could say when this will change – it will at some point but as to when, I do not know. That spread trade of the hedge funds has worked out very well for them so they will continue attempting to work it until it stops working. That is not much of a keen insight into the alchemy of the mining share world but at least it is an accurate description of what is going on. I will maintain until proven otherwise, that the ETF, GLD, has siphoned off a large amount of money that in time past would have otherwise flowed into the mining shares and this is what allows the spread trade to work so effectively for the hedge funds.

That spike below $65 in crude oil looks to have been a bottom but that will not be confirmed until it can push back above $75 and close there. Given the instability in the world markets, a ranging trade between $65 and $75 might be the norm until something convincingly changes on the world scene.

The Dollar looks like it is resting above 88 on the USDX. It would have to fall below 86 to spook the bulls.”- Dan Norcini, More at JSMineset.com

COMEX Gold Trust (IAU) Total Tonnes in Trust: 84.19 - No change from yesterday’s data.

Silver Trust (SLV) Total Tonnes in Trust: 9208.83 - No change from yesterday’s data.

Almaden’s (AAU) optioned project, Goldcorp’s (GG) completed sale of the Escobal silver deposit, LGL’s (LIHR) merger update, Great Panther’s (GPR.TO) progress report, Minco’s (MSV.TO) received repayment, and Silver Standard’s (SSRI) progress report 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.

Centurion Closes $6.2 Million Private Placement Financing - More
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Adriana Announces Commencement of 2010 Exploration Program to Increase and Upgrade Resources at Lac Otelnuk Property in Quebec - More
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Jasper Mining Corporation appoints TerraLogic Exploration as exploration consultant - More
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Fortress Announces Letter of Intent Signed for Disposition of Svetloye Gold Project, Far East Russia - More
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Lincoln Mining Grants Stock Options - More
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Catalyst Copper Corp. - 2010 exploration program commences - More
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BCM Resources Corp.: Good-Grade Gold and Silver at Lorne Property; Additional Claims Acquired - More
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Energy Fuels Provides Project Update and Corporate Status Review - More
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Almaden Minerals Ltd.: Merit Gold Project Optioned - "Almaden Minerals Ltd. (TSX:AMM - News)(AMEX:AAU - News) is pleased to announce that it has formed an option agreement on its wholly owned Merit Gold Prospect in the Spences Bridge Gold Belt, British Columbia with Sunburst Explorations Inc. ("Sunburst"), a private company, which can earn up to a 60% interest in the property by spending $C3MM on exploration, and issuing Almaden 700,000 shares of Sunburst shares within five years from the listing of the stock on the TSX Venture Exchange (TSX-V)." More
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Augen Gold reports on results and 2010 gold exploration program - More
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Amarok Corporate Update - More
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Far West Engages BMO Capital Markets to Advise on Financial and Strategic Matters - More
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Great Panther Updates Los Pozos and Santa Margarita Development, Plus Rayas Deep Drilling Program at Guanajuato - "GREAT PANTHER SILVER LIMITED (TSX:GPR - News) (the "Company") is pleased to report on the progress of underground development at the Los Pozos and Santa Margarita Zones, as well as the underground drilling program in the Rayas area of the Guanajuato mine." More
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Breakwater Resources Ltd. Receives Shareholder Approval to Consolidate Shares Ten Old for One New - More
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Energizer Provides Clarification of June 7, 2010 Press Release: Energizer Continues Exploration to Expand Resource on Green Giant Vanadium Project in Madagascar - More
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Network announces non-brokered private placement for proceeds up to $630,000 - More
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Tombstone Exploration Corporation Acquires Acreage South Of Current Holdings - More
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Quantum Bolsters Board of Directors - More
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Galantas Raises CDN$1,050,000 for Drilling and Working Capital - More
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Tahoe Resources Inc. Announces Closing of Initial Public Offering and Acquisition of Escobal Project - More
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Pure Nickel Starts Drilling MAN Alaska; Update on Summer Programs - More
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Bell Copper Corporation - New Chief Financial Officer - More
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TintinaGold Begins Drilling The Kugruk, Alaska, Copper-Iron Project - More
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Puma Exploration Inc.: Exploration Target of 7-10 million Tonnes of 1.0%-1.5% Cu at Turgeon - More
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Apoquindo Minerals Intersects 200m of 0.63% Cu and 0.15 g/t Au at Zafranal - More
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Uracan continues to discover new uranium mineralization on Costebelle claims - More
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Aldrin Begins Drilling Keystone Gold Project - More
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High River Gold Announces the Beginning of the Bankruptcy Procedures of Prognoz Silver LLC - More
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Magellan Drills 136.2m at 0.91g/t Gold and Extends Central Zone at Cuiu Cuiu by 230m - More
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High Desert Gold Announces the Start of Drilling at the Gold Springs Project - More
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Alto Announces a Private Placement of up to $1,100,000 - More
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Panoro Appoints Kallpa Securities SAB as Sponsor for Listing on Lima Stock Exchange, Peru - More
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Teryl Resources Announces Two Drills Working on the Gil Joint Venture - More
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Update on Frontino Gold Mines asset acquisition - More
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Niblack Mineral Development and Heatherdale Achieve Major Milestone - More
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Heatherdale Achieves Major Milestone - More
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Richfield Ventures advances the Blackwater bulk gold project; encounters 2.09 g/t gold over 38 metres within interval of 1.10 g/t gold over 123 metres - More
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Iberian Minerals Announces Private Placement of Convertible Debentures - More
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Uranium One to Acquire Two More Kazakh Mines from ARMZ and To Pay Special Dividend to Minority Shareholders of at least US$ 1.06 per Share - More
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Tasman's phase 1 drilling continues to discover thick heavy rare earth intervals at Norra Karr, Sweden - More
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Nemaska Proves Continuity of Lithium Mineralisation at Depth With 1.61% Li2O Over 79.2m on Whabouchi - More
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Interest Payment on Katanga Notes - More
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Mercator Reports Record Month at Mineral Park - More
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Qiao Xing Universal Appoints Mining Veteran to Executive Team - More
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Capstone Provides Information for Minto Copper-Gold Mine Expansion Permit Application - More
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Probe Mines Provides Exploration Update - More
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Purepoint Uranium Group Inc: New Targets Defined on Henday Block by VTEM Airborne Survey - More
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Honey Badger Commences Drill Program on Blackjack Property in Nevada - More
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Wallbridge Mining Announces Miocene Metals Appointments - More
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Champion Minerals Completes Earn-In to Acquire 65% Undivided Interest in Fermont Property; Receives $1,251,250 Through the Exercise of Warrants - More
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Duluth Metals annual and special meeting to be held at the Toronto Board of Trade - More
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Dynacor Gold Mines Closes $1.0 Million Debt Financing to Increase Custom Milling at Acari - More
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Centamin Egypt Limited Sukari Gold Project Resource Upgrade - More
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RockBridge Completes Compilation Report on Cross Hills Rare Earth Property - More
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Orosur Mining Inc.: Gold Production for 2010 Financial Year - More
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Goldcorp Completes Sale of Escobal Silver Deposit - "GOLDCORP INC. (TSX:G - News)(NYSE:GG - News) announced today the completion of its sale of the Escobal silver deposit in Guatemala to Tahoe Resources Inc. ("Tahoe").

Pursuant to the terms of the transaction, Goldcorp received an aggregate of 43,686,667 common shares of Tahoe, representing 40% of Tahoe's issued and outstanding common shares on a fully-diluted basis and $253 million in cash." More
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Minco Silver Received the Repayment of All Investments Made to Sterling - "Minco Silver Corporation (the "Company" or "Minco Silver") (TSX:MSV - News) announces that, as outlined in the news release dated April 23, 2010, the Company has received US$11,675,522.20 from Sterling Mining Company ("Sterling"). This amount represents the repayment of all the investments made to Sterling by the Company." More
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Silver Standard Resources Inc.: Pirquitas Mine and Exploration Project Update - "Silver Standard Resources Inc. (TSX:SSO - News)(NASDAQ:SSRI - News) (the "Company") is pleased to report on the ramp-up progress at its wholly-owned Pirquitas Mine in Argentina, which is on track to produce seven million ounces of silver as forecasted for 2010." More
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LGL Merger Update - "Lihir Gold Ltd (LGL) (TSX:LGG - News)(ASX:LGL - News)(NASDAQ:LIHR - News) notes today's announcement by Newcrest Mining Ltd that it has completed its due diligence of LGL and that Newcrest is satisfied with the outcome of the process." More
- June 08, 2010 | Item |

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