Gold Seeker Weekly Wrap-Up: Gold and Silver Fall Over 2% on the Week

	Close	Gain/Loss	On Week
Gold	$1500.70	-$19.10	-2.40%
Silver	$34.73	-$0.34	-2.80%
XAU	191.89	-2.33%	+0.93%
HUI	500.96	-2.59%	+0.86%
GDM	1456.75	-2.59%	+1.01%
JSE Gold	2298.74	-10.40	-1.72%
USD	75.65	+0.35	+0.81%
Euro	141.76	-0.85	-0.92%
Yen	124.25	+0.10	-0.54%
Oil	$91.16	+$0.14	-1.99%
10-Year	2.871%	-0.038	-2.48%
Bond	126.59375	+0.15625	-0.47%
Dow	11934.73	-0.96%	-0.58%
Nasdaq	2652.89	-1.26%	+1.39%
S&P	1268.45	-1.17%	-0.24%

Gold traded mostly slightly higher in Asia and London, but it then dropped throughout most of trade in New York trade and ended near its late session low of $1498.41 with a loss of 1.26%. Silver fell to as low as $34.467 before it bounced back higher, but it still ended with a loss of 0.97%.

Euro gold fell to under €1058, platinum lost $16 to $1676.50, and copper gained almost 6 cents to about $4.10.

Gold and silver equities fell over 2% by early afternoon and remained near that level for the rest of the day.

Report	For	Reading	Expected	Previous
GDP	Q1	1.9%	1.8%	1.8%
GDP Deflator	Q1	2.0%	1.9%	1.9%
Durable Orders	May	1.9%	1.5%	-2.7%
Durable Orders -ex Trans.	May	0.6%	0.7%	-0.4%

Next week’s economic highlights include Core PCE Prices and Personal Income and Spending on Monday, the Case-Shiller 20-city Index and Consumer Confidence on Tuesday, Pending Home Sales on Wednesday, Initial Jobless Claims and Chicago PMI on Thursday, and Michigan Sentiment, the ISM Index, and Construction Spending on Friday.

The U.S. dollar index rose on renewed worries over Greece that sent the euro lower.

Treasuries rose as the Dow, Nasdaq, and S&P fell on poor earnings reports and worries over Greece.

Among the big names making news in the market Friday were Cumulus Media, Go Daddy, Micron, NYSE, Deutsche Boerse, and Google.

“Those of us who have nothing better to do with our lives than to sit in front of computer screens watching prices change have been watching the battle being waged between the forces of Deflation and the forces of Inflation ever since the credit crisis erupted back in the summer of 2008.

On the one hand is the relentless and merciless pressure from excessive Debt and all the issues arising from that; on the other hand has been the Federal Reserve and its monetary stimulus programs, aka, Quantitative Easing or QE for short. When the Fed has entered the Fray, the forces of deflation have been routed and run off the field. When the Fed withdraws, the opponents regather and send out their war parties to hack and slice once again.

This battle can be seen through the chart detailing the price action of the commodity sector as a whole, namely the Continuous Commodity Index or CCI. As the Fed wins ground, the index rises; as the Deflation forces triumph, this index falls. Right now it is falling and falling in a big way as once again it is threatening to put in a major top on its longer term weekly chart.

Take a look at the two red support levels shown on the chart. The upper red line was the previous bottom made in the index earlier in the year which was broken early last month as traders began suspecting that the Fed was going to indeed end the QE2 program at the end of June. However, they began second guessing that notion with the result that prices were able to rebound and move back above this level and push towards 660. However, as economic data continued to deteriorate and fears of an overall global slowdown increased, the index has now dropped lower through the upper line and are pressing into the lower red line confirming that a double top in indeed in place for the overall commodity sector. The price action is indicative of a market in which a "SELL THE RALLY" mentality has replaced one of BUYING DIPS. In other words, traders are looking for lower commodity prices ahead as they anticipate deflation and not inflation. Only if prices are able to immediately move back above the upper red line will one be able to say authoritatively that inflationary forces are rising in the minds of investors.

If you will also note the particular technical indicator I have chosen to overlay on this price chart, the Directional Movement Indicator, you will see that the solid black line, or ADX, which began rising in July 2010, and accompanied the rise in the index all through February of this year (indicating a STRONG TREND HIGHER) turned down at that point indicating a pause in the ongoing higher trend. The blue line or Positive Directional movement indicator has been trending lower since December of last year while the Negative Directional Movement Indicator, or red line, has begun trending higher since February of this year. What this indicator is telling us is the trend toward higher commodity prices is over for the time being. The upside crossover of the Negative Directional Indicator ABOVE the Positive Directional Indicator, is BEARISH. While the index has not yet fallen through the lower of the two red support lines on the chart, it is signaling that weakness in the sector lies ahead.

The last line of defense will be the rising 50 week moving average what comes in near the 600 level. This level now takes on increasing significance as we move forward. You will note how it held back in April/May 2010 when talk began surfacing that the Fed was going to come up with some sort of additional stimulus to take the place of the then expiring QE1 program. Once that QE2 was announced, the index accelerated higher. Now that the end of QE2 is here and there yet appears to be no improvement in the overall economy nor any concrete steps for a QE3 or some further stimulus from the Fed, the index is breaking down once again. Should it move towards 600 and fail there, we will be entering a deflationary period.

Mr. Bernanke left the door open for further stimulus from the Fed should the economy not respond and economic data continue to reflect deterioration. One suspects that the market is going to force the hand of the Fed sooner rather than later. Again, this Fed has signaled clearly that it is deathly afraid of deflation and will do whatever is necessary to stave it off.

Additional proof of the deflationary mindset taking hold has been the relentless move higher in the bond market which is moving in a manner suggestive of global slowdown fears. While the Fed enjoys the lower long term interest rates (as does the US government which is keeping its exorbitant borrowing costs lower), they do not want a rally in the bond market of the nature that would see money exiting stocks and other assets.”- Dan Norcini, More at http://www.traderdannorcini.blogspot.com/

COMEX Gold Trust (IAU) Total Tonnes in Trust: 142.79: +0.30 change from yesterday’s data.

Silver Trust (SLV) Total Tonnes in Trust: 9,588.19: +28.81 change from yesterday’s data.

Randgold’s (GOLD) stock award, Northgate’s (NXG) project update, Comstock’s (LODE) annual meeting, and Golden Minerals’ (AUMN) merger of equals with ECU Silver (ECU.TO) 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.

Manicouagan Minerals Reports Transfer of Shares and Acquisition of Warrants by Insider - More
- June 24, 2011 | Item | ShareThis

Continental Precious Minerals Enters Into Land Lease at Its MMS Viken Licence in Sweden - More
- June 24, 2011 | Item | ShareThis

Bearing Resources to Conduct $5 Million Private Placement Financing - More
- June 24, 2011 | Item | ShareThis

Golden Minerals Company and ECU Silver Mining Inc. Announce Merger of Equals Creating a New Growing Silver Mining Company - "Golden Minerals Company (AMEX:AUMN - News) (TSX:AUM - News) ("Golden Minerals") and ECU Silver Mining Inc. (TSX:ECU - News) ("ECU") are pleased to announce that they have entered into a definitive agreement to combine the two companies creating a new leading junior silver mining company with a portfolio of growth projects, primarily in Mexico and Argentina. The combined company will retain the Golden Minerals name and remain headquartered in Golden, Colorado. The combination of Golden Minerals and ECU (the "Transaction"), which represents a merger of equals, has been unanimously agreed to by the boards of directors of Golden Minerals and ECU, and both boards of directors will be recommending that their respective shareholders vote in favor of the proposed Transaction." More
- June 24, 2011 | Item | ShareThis

International Montoro Resources Inc.: Work Program Commences at "Chuchinka" Rare Earth Prospect - More
- June 24, 2011 | Item | ShareThis

Aldrin Reports on Trench Expansion at IND Project-Reacquires 100% Interest in Brew Project - More
- June 24, 2011 | Item | ShareThis

Silver Pursuit Resources Ltd.: Drilling Commences at Luz Project, Mexico - More
- June 24, 2011 | Item | ShareThis

Olympus Successfully Pours First Gold Dore at Phuoc Son - More
- June 24, 2011 | Item | ShareThis

Randgold Resources Limited: Restricted stock award: non-executive - "Randgold Resources Limited announces that in terms of the company's remuneration for non-executive directors approved by shareholders at the Annual General Meeting on 3 May 2011, an award of 1 200 restricted shares was made to each non-executive director and 3 600 to the chairman on 23 June 2011. One third of the restricted shares will vest on 1 January 2012, the second third on 1 January 2013 and the final third of 1 January 2014." More
- June 24, 2011 | Item | ShareThis

Ensurge, Inc. Provides Update of Rodui Gold Project in Brazil - More
- June 24, 2011 | Item | ShareThis

Shamika2Gold, Inc. Appoints Renowned Mining Expert to Board of Directors - More
- June 24, 2011 | Item | ShareThis

Erdene Announces Highlights of AGM - More
- June 24, 2011 | Item | ShareThis

Woulfe Mining Reports Final Drill Results for Phase 1 Feasibility Drilling Program - More
- June 24, 2011 | Item | ShareThis

Marifil Receives $100,000 Property Payment for San Roque & Completes Purchase of San Roque Claims - More
- June 24, 2011 | Item | ShareThis

Mega Precious Metals Inc. Announces Grant of Options - More
- June 24, 2011 | Item | ShareThis

Northgate Minerals Provides Update on Construction and Exploration Activities at Young-Davidson - "Our employees and contractors at Young-Davidson continue to put in hard work and dedication to all of the activities underway on site", said Ken Stowe, President and CEO. "Due to their great efforts, the project continues to advance on schedule and on budget. In addition, we are very pleased with the results from the YD West Zone and the new exploration program set to begin this month, potentially adding to our 2.8 million ounces of reserves and 650,000 ounces of resources." More
- June 24, 2011 | Item | ShareThis

B2Gold Reports Fatality at the Limon Mine in Nicaragua - More
- June 24, 2011 | Item | ShareThis

Orvana Announces Prefeasibility Study Results for Copperwood Project, Upper Peninsula, Michigan, USA - More
- June 24, 2011 | Item | ShareThis

Chesstown Capital Inc. Provides Update on Annual and Special Meeting Due to Canadian Postal Disruption - More
- June 24, 2011 | Item | ShareThis

Unigold Announces Initiation of IP Survey and the Acquisition of a Strategic Concession in the Dominican Republic - More
- June 24, 2011 | Item | ShareThis

Concordia Resource Corp. & Renaissance Gold Inc. Announce Commencement of Baza Drill Program - More
- June 24, 2011 | Item | ShareThis

Focus Gold Corp. Continues Extensive Mapping With Further Evidence of Copper Gold Porphyry System - More
- June 24, 2011 | Item | ShareThis

Quantum CEO Sees China's Rare Earth Restrictions as Opening for Obama to Act - More
- June 24, 2011 | Item | ShareThis

Comstock Mining Holds Annual Meeting of Shareholders - "Comstock Mining Inc. (the "Company") (NYSE Amex: LODE) announced today that it held its annual meeting of shareholders in Gold Hill, Nevada. The shareholders elected all five board-recommended nominees for director including first-time nominees, Corrado DeGasperis and, new Chairman, John V. Winfield. Mr. Nance will continue to serve as a director for the Company. Former Director Robert Faber did not stand for re-election and continues as the Company's Chief Accounting Officer." More
- June 24, 2011 | Item | ShareThis

Cayden Adds to Its Board of Directors - More
- June 24, 2011 | Item | ShareThis

RX Exploration Announces ISS Recommendation That Shareholders Vote FOR the RXE Nominees on the BLUE Proxy - More
- June 24, 2011 | Item | ShareThis

American Manganese Inc. to Receive Fourth Contribution Through NRC-IRAP - More
- June 24, 2011 | Item | ShareThis

- Would you like to receive the Free Daily Gold Seeker Report in your e-mail? Click here

Note: This article may be reproduced provided the article, in full, is used and mention to Gold-Seeker.com is given.

Disclosure: The owner, editor, writer and publisher and their associates are not responsible for errors or omissions. The author of this report is not a registered financial advisor. Readers should not view this material as offering investment related advice. Gold-Seeker.com has taken precautions to ensure accuracy of information provided. Information collected and presented are from what is perceived as reliable sources, but since the information source(s) are beyond Gold-Seeker.com’s control, no representation or guarantee is made that it is complete or accurate. The reader accepts information on the condition that errors or omissions shall not be made the basis for any claim, demand or cause for action. Past results are not necessarily indicative of future results. Any statements non-factual in nature constitute only current opinions, which are subject to change. Nothing contained herein constitutes a representation by the publisher, nor a solicitation for the purchase or sale of securities & therefore information, nor opinions expressed, shall be construed as a solicitation to buy or sell any stock, futures or options contract mentioned herein. Investors are advised to obtain the advice of a qualified financial & investment advisor before entering any financial transaction.