Gold Seeker Closing Report: Gold Erases Early Losses and Silver Gains Almost 4%

	Close	Gain/Loss
Gold	$1760.00	+$5.10
Silver	$40.78	+$1.52
XAU	210.93	+1.66%
HUI	582.26	+1.97%
GDM	1693.31	+1.96%
JSE Gold	2623.96	+16.15
USD	74.22	+0.21
Euro	143.81	-0.35
Yen	129.06	-0.87
Oil	$85.30	+$0.14
10-Year	2.222%	-0.038
T-Bond	137.5625	+0.71875
Dow	11149.82	-1.51%
Nasdaq	2419.63	-1.95%
S&P	1159.27	-1.56%

Gold fell $51.95 to as low as $1702.95 by a little after 5AM EST, but it then rallied back higher in London and New York and ended near its late session high of $1767.24 with a gain of 0.29%. Silver dropped to as low as $38.685 before it surged to as high as $40.98 and ended with a gain of 3.87%. Both are rising to new highs in afterhours access trade as well.

Euro gold climbed back over €1224, platinum gained $7.25 to $1814.25, and copper gained 8 cents to about $4.08.

Gold and silver equities opened up with over 1% losses, but they then rose to see over 2% gains by early afternoon and remained near that level for the rest of the day.

Report	For	Reading	Expected	Previous
Initial Claims	8/20	417K	400K	412K

Tomorrow at 8:30AM EST brings second quarter GDP expected at 1.1% and the GDP Deflator expected at 2.3%. At 9:55 is Michigan Sentiment for August expected at 55.8.

Bernanke will also be speaking tomorrow morning in Jackson Hole, but an exact start time is unknown. Also on the horizon is an appearance by International Monetary Fund Managing Director Christine Lagarde on Saturday and Obama’s speech on the economy on September 6^th.

Oil ended slightly higher on worries about possible disruptions from Hurricane Irene over the weekend.

The U.S. dollar index rose on speculation about what Bernanke may say in his speech tomorrow in Jackson Hole.

Treasuries remained higher after today’s $29 billion 7-year note auction sold at a high yield of 1.58% with a bid to cover of 2.76.

The Dow, Nasdaq, and S&P fell on worries about the economy after this morning’s poor jobs report.

Among the big names making news in the market today were J.P. Morgan, Halliburton, BofA and Berkshire, Apple, AMD, and Bloomberg.

“With gold nearly touching $1,700 on the back of yet another margin hike, I fully suspect the lows of this latest correction is very near. In fact, we may have seen the low print just a few minutes ago at $1,702 (Although I would prefer as noted last night a test of the 50-Day M.A another $50 or so dollars lower).

I’m going to raise my maximum model allotment back to 50% on gold. Since neither I or anyone else know for certain, nervous nellies may want to use half of their buying power now and half if we do test the 50-Day M.A. By then, Tokyo Rose and company should once again have caused enough people to sell and end up missing the “mother” of all gold bull markets yet again.

And when we hit $2,000+, remember this point in time as we’ve all the other tops and bubble points along the way.”- Peter Grandich, Grandich Letter

From last night: “Watching this game being played by the shorts in the mining shares as they attempt to extricate themselves from their rather tenuous short positions in the shares is shaping up to be mighty entertaining.

On Monday of this week, the mining sector finally blasted through the stubborn line of resistance that has formed on its price chart near the 580 level. It ran right through the 600 level and almost as high as 610 before settling near the high of the session. All in all, very bullish chart action. Yesterday it moved lower along with the gold and silver markets but bounced off the 580 level confirming that former resistance level as the new support level even though it ended lower on the day. It kept itself above the low of Monday’s session as well. That too was friendly.

Today, the shares were mangled with the result that the index collapsed back through that same old 580 level and was unable to regain its footing above it before the close of the trading session. It did manage a decent bounce off the session low however.

Since the middle of June, the mining sector, while lagging the performance of gold (and silver to a certain extent), has been in a definite uptrend marked by a series of higher highs and higher lows. While the long suffering share holders have been distressed by their lack of upside activity, as long as the index stays above the uptrend line shown on the chart, it will still be in a bullish posture although it will have to clear 610 to get another strong leg to the upside.

If this index recaptures the 580 level within the next couple of days, the shorts are in trouble.

Silver was whacked along with gold in today's session as technical selling kicked in after the takedown began once it appeared that the run to $44 would fail to build on its gains. After $42 gave way, selling accelerated as down side stops were run which were helped along by the frontrunning High Frequency Trading club (also known as market parasites and general pond scum).

The market did bounce higher from the $39 level however and while it still looks heavy, the level from which it bounced is the confluence of three technical support levels on the chart. The first is horizontal support noted in heavy red which also is the former Fibonacci 38.2% retracement level which was a pivot level around which silver was trading for the better part of the last 5 weeks. You will also note a short term uptrendline which has been forming drawn off the last June lows and the early August swing low that comes in very near this level as well.

Ideally, we would like to see silver hold in this general region to prevent a deeper fall towards $37.00 - $36.50. I would feel a bit more confident about its immediate prospects if it could regain its footing back above the former 50% retracement level up near $41.25 - $41.50 on the price chart.

Volume was very heavy today indicating a great deal of panic type selling was taking place. Unlike the drop that occurred in silver back when it neared the $50 level in April, the Commitment of Traders report shows a relatively low level of speculative interest on the long side compared to past for the managed money or hedge fund category. They are currently about 11,000 contracts shy of their net long position size that they were holding back in April at the peak.

Also noteworthy is the fact that the Swap Dealers are barely net short while the Commercial net short exposure is also relatively small. The latter two categories rarely if ever sell into downward silver markets so if any selling is going to occur in silver, it is going to have to come from either additional long liquidation or fresh speculative side short selling.

In regards to the former - while the hedge funds are net longs, after today it is fairly easy to theorize that that long side exposure has been whittled away considerably. That begs the question - is this category of traders going to start aggressively moving to the short side? One would be rather challenged to build a fundamental case for that. In the meantime we will watch to see where chart support emerges and where the long liquidation will ease off.”- Dan Norcini, More at http://www.traderdannorcini.blogspot.com/

Note: Change in Total Tonnes from yesterday’s data: SPDR subtracted 27.255 tonnes.

COMEX Gold Trust (IAU) Total Tonnes in Trust: 168.11: -0.3 change from yesterday’s data.

Silver Trust (SLV) Total Tonnes in Trust: 9836.18: -60.6 change from yesterday’s data.

Gold Fields’ (GFI) fraudulent websites alert, Northgate’s (NXG) drill results, Midway’s (MDW) drill results, Gold Resource’s (GORO) dividend, and Impact Silver’s (IPT.V) optioned assets 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.

Augyva Takes Initiatives to Maximize the Value of the Company - More
- August 25, 2011 | Item | ShareThis

Benton Resources Corp.: Provincial Legislature Denies Ratification of San Jorge Environmental Impact Declaration - More
- August 25, 2011 | Item | ShareThis

Sage Extends High Grade Gold Mineralisation Below and East of Clavos Deposit - More
- August 25, 2011 | Item | ShareThis

Coro Mining Corp.: Provincial Legislature Denies Ratification of San Jorge Environmental Impact Declaration - More
- August 25, 2011 | Item | ShareThis

Second Drill Hole at Dragoon Verifies Widespread Porphyry System for Southern Silver - More
- August 25, 2011 | Item | ShareThis

Aurvista Gold Corporation Provides Update on Activities - More
- August 25, 2011 | Item | ShareThis

Northaven Completes Airborne Geophysical Program at Allco Property - More
- August 25, 2011 | Item | ShareThis

Golden Phoenix Engages Telesto Nevada to Prepare Vanderbilt Silver and Gold Project for Exploratory Drilling Program - More
- August 25, 2011 | Item | ShareThis

Auriga Gold Commences Preliminary Economic Assessment on the Maverick Gold Project, Flin Flon, Manitoba - More
- August 25, 2011 | Item | ShareThis

Avanti Intersects 395.1 Meters Averaging 0.088% Molybdenum at Kitsault - More
- August 25, 2011 | Item | ShareThis

Update on Coronet's Yanamina Gold Project and Additional Acquisitions - More
- August 25, 2011 | Item | ShareThis

Ironwood Gold Announces Appointment of Keith P. Brill to Board of Directors - More
- August 25, 2011 | Item | ShareThis

Sono Closes Acquisition of Remaining Interest to Hold 100% Ownership in the Bonnyridge Copper/Silver Exploration License Blocks in Botswana, Africa - More
- August 25, 2011 | Item | ShareThis

Bison Gold Resources Inc. Announces Appointment of Director - More
- August 25, 2011 | Item | ShareThis

Merrex Releases Bambadinka Trend Auger Drilling Update - More
- August 25, 2011 | Item | ShareThis

Sandspring Resources Ltd. Extends Resource Envelope by 500 Metres Along Strike and Reports Drilling Results That Include 117 m of 1.49 g/t Gold - More
- August 25, 2011 | Item | ShareThis

Maya Starts Geophysical Survey on Permit 233263 - More
- August 25, 2011 | Item | ShareThis

Kirrin Progresses Uranium and Rare Earth Elements Exploration and Files Q2 2011 Results and Operating Highlights - More
- August 25, 2011 | Item | ShareThis

Riverstone Announces New Director - More
- August 25, 2011 | Item | ShareThis

Magellan Minerals Drills 5.5m @ 6.49g/t Gold in Step Out Hole at Demetrio Zone, Coringa Project, Brazil - More
- August 25, 2011 | Item | ShareThis

Northland Obtains Final Approval to Operate an Iron Ore Terminal in Narvik - More
- August 25, 2011 | Item | ShareThis

Fire River Gold Update on Progress of the Nixon Fork Mine Start Up - More
- August 25, 2011 | Item | ShareThis

Bearing Resources Begins Drilling at the Zymo Copper-Gold Project in British Columbia - More
- August 25, 2011 | Item | ShareThis

Toro Resources Granted Permit for 27 Drill Sites - More
- August 25, 2011 | Item | ShareThis

BE Resources Announces Changes to Management Team - More
- August 25, 2011 | Item | ShareThis

Force Energy Corp. Announces Exploration Program Update - More
- August 25, 2011 | Item | ShareThis

Gold Bullion reports 6,476 g/t Ag over 3.09m at Castle Silver Mine, Gowganda - More
- August 25, 2011 | Item | ShareThis

Commerce Resources Corp. Updates Rare Earth Element Exploration at Eldor Project, Quebec - More
- August 25, 2011 | Item | ShareThis

TerraX completes first drill hole at Stewart Gold-Copper Property; intersects extensive porphyry style alteration zone with significant sulphide. - More
- August 25, 2011 | Item | ShareThis

NMC Resource Announces 64% Revenue Increase to $2.7 Million in Second Quarter of 2011 - More
- August 25, 2011 | Item | ShareThis

Galantas Reports Results for Second Quarter 2011 - More
- August 25, 2011 | Item | ShareThis

Critical Elements Corporation: Blue Note Extends High Grade Gold West of Croinor and Hits Gold Mineralization Down to 650m at Depth - More
- August 25, 2011 | Item | ShareThis

Prodigy Receives Geotechnical Report on Magino: Steeper Pit Walls Possible - More
- August 25, 2011 | Item | ShareThis

Pan American Goldfields announces the appointment of Hernan Celorrio as advisor to the Board and director of the company's Argentine subsidiary - More
- August 25, 2011 | Item | ShareThis

Gold Standard Takes Steps to Increase Drill Productivity at Carlin Railroad Project and Expands Land Holdings - More
- August 25, 2011 | Item | ShareThis

Mariana Files NI 43-101 Technical Report on Las Calandrias Project - More
- August 25, 2011 | Item | ShareThis

Sulliden Initiates Diamond Drilling in the North Corridor Following Positive Exploration Results - More
- August 25, 2011 | Item | ShareThis

NQ Hits 16 Metres Grading 93.1 g/t Ag at Surface on Its Carheil Project - More
- August 25, 2011 | Item | ShareThis

Discovery of New Gold-Bearing Vein Indicates More On-Strike Potential SW of Leprechaun Deposit at Valentine Lake Joint Venture, Newfoundland - More
- August 25, 2011 | Item | ShareThis

Willow Creek Completes Phase One: 20 Hole Drill Program at Hercules Gold & Silver Property, Nevada - More
- August 25, 2011 | Item | ShareThis

China Gold International Announces a 443% Increase in the Measured and Indicated Resource at its Jiama Copper Gold Mine and Will Proceed With Planning - More
- August 25, 2011 | Item | ShareThis

Goldrea Increases Claims at Wigwam Iron/Magnetite Project - More
- August 25, 2011 | Item | ShareThis

Allied Gold Mining PLC: INVESTOR PRESENTATION - More
- August 25, 2011 | Item | ShareThis

Li3 Energy Teams With One of The World's Largest Steel Manufacturers for Lithium Exploration - More
- August 25, 2011 | Item | ShareThis

Pan American Goldfields Announces the Appointment of Hernan Celorrio as Advisor to the Board and Director of the Company's Argentine Subsidiary - More
- August 25, 2011 | Item | ShareThis

CuOro Grants Stock Options - More
- August 25, 2011 | Item | ShareThis

Great Quest Appoints Corporate Secretary, Grants Stock Options - More
- August 25, 2011 | Item | ShareThis

Peru mining companies agree to windfall tax - "Peru's Cabinet chief says mining companies operating in the Andean nation have agreed to the terms of a windfall tax that will give the government more than $1 billion in annual revenues.

The tax was a top campaign promise of President Ollanta Humala. The center-leftist took office a month ago and presented his Cabinet to Congress on Thursday." More
- August 25, 2011 | Item | ShareThis

IMPACT Silver Corp. Options Zacatecas Assets to Defiance Silver Corp. - "IMPACT Silver Corp. ("IMPACT") (TSX-V: IPT.V - News) is pleased to announce the signing of an agreement with Defiance Silver Corp. ("Defiance") (TSX-V: DEF.V - News) to option its Veta Grande Project assets in Zacatecas, Mexico in exchange for a major shareholding in Defiance." More
- August 25, 2011 | Item | ShareThis

Fraudulent Gold Fields Websites - "Gold Fields Limited (Gold Fields) (JSE, NYSE, NASDAQ Dubai: GFI) wants to alert shareholders and other interested parties about a number of websites that use Gold Fields branding and purport to be investment vehicles on behalf of the company." More
- August 25, 2011 | Item | ShareThis

Northgate Minerals Intersects Two Major Intervals in the YD West Zone at Young-Davidson - "Northgate Minerals Corporation (TSX:NGX.to - News) (NYSE Amex: NXG) is pleased to report that Hole YD11-242 in the YD West zone intersected 5.30 grams per tonne ("g/t") gold over 44.1 metres (m) (estimated true thickness is 30.0 m), including 6.49 g/t over 27.5 m. Hole YD11-240A, an oblique hole drilled at an approximate 45°angle to the zone, returned 2.67 g/t over 193.0 m (estimated true thickness is 48.3 m). The YD West zone is located just west of the currently known 2.8 million ounce reserve1 at Young-Davidson in northern Ontario. Production of the Young-Davidson mine is scheduled to commence in 2012." More
- August 25, 2011 | Item | ShareThis

Midway Reports Long Gold Intercepts at Spring Valley Project, Nevada - "Midway Gold Corp. ("Midway" or the "Company") (MDW:TSX-V; MDW:NYSE-AMEX) announces second quarter results calculated from data provided by Barrick Gold Exploration Inc. (“Barrick”), who is earning into Midway’s Spring Valley Project, Nevada. Drill results are from holes that test the northern extent of the known resource and holes that test the area acquired late last year that is to the south of the known resource. The drilling reported in this press release shows gold assays extend the gold zone at least 1.7 kilometers to the southwest of the previously known resource area over a width of approximately 0.5 kilometers." More
- August 25, 2011 | Item | ShareThis

Gold Resource Corporation Increases and Institutes Monthly Dividend Policy - "Gold Resource Corporation (AMEX: GORO - News) is pleased to announce it has increased its monthly dividend declared for August to $0.05 per common share payable on September 23, 2011 to shareholders of record as of September 12, 2011. The Company has now instituted a regular monthly dividend policy to replace its special dividend policy. Gold Resource Corporation is a low-cost gold producer with operations in southern Mexico." More
- August 25, 2011 | Item | ShareThis

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