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Gold remained near unchanged in early Asian trade, fell near $630 by the open in London, stayed in the low $630s until the open in New York, and then fell near $620 by midmorning in New York.  Gold rebounded to back above $630 by early afternoon trade, but it then fell back off into the close and ended with a loss of 2.3%.  Silver followed a similar pattern and lost 6%.

Euro gold fell near €490, platinum lost $69 to $1,219, palladium lost $13 to $335, and copper lost over 15 cents to near $3.40.

Gold and silver equities dropped about 4% at the open, but they then steadily climbed back upward throughout trade and ended just about 0.5% lower on the day.

From yesterday’s Midas report by Bill Murphy of LemetropoleCafe.com:

“You might like to know this paper was presented to a reserve accounting committee in the IMF the 2nd week of May. The findings and suggestions of that committee's meeting will be made public at the end of July. This reserve accounting issue of gold was one of the top discussion points at the meeting…

The ramifications of the IMF document are profound because the more people realize how The Gold Cartel and other central banks have squandered their gold at ridiculously low prices, the more the BIG MONEY, and foreign countries, will want to own it. There is no way now that future demand for gold can be satisfied except for the price to soar. Mine supply is going down, scrap supply will only pick up substantially if the price takes off in a major league way, and the central bank hoard is half, or less than half, of what it use to be.”

From The Hightower Report, Futures Analysis and Forecasting:

“The metals cascaded through a session that was fraught with outside market pressure and at times concerns of ongoing commodity fund liquidation. With the Dollar showing early signs of strength and oil prices soft that seemed to put the gold in a negative posture that it was unable to shed. With the US economic report slate weak we suspect that many traders were fearful of a slide in physical demand. The fact that oil prices recovery and the US equity market was generally strong simply failed to alter initial bearish sentiment in gold and with the headlines still carrying talk of the "big correction" the bear camp left the session in control over gold prices.

The silver market exhibited significant back and forth volatility and was certainly undermined by the gold, copper and platinum market. In fact, the magnitude of the breaks in copper and platinum at times during the session could easily have sparked a wholesale washout in silver. With the silver market forging a rough trading range of $1.03 per ounce it is clear that the silver market is having trouble settling on a definitive trend. In the near term, the silver might end up taking more direction from the copper and platinum markets as opposed to world equity markets.”

From Peter Grandich of the Grandich Letter:

“Grandich Letter Special Alert
June 1, 2006  - 9:15M EDT

Gold $621.00

I’ve been looking for gold to settle into a $625-$675 trading range before any new significant up move can occur. http://www.grandich.com/docs/mw_05-24-06.pdf We may need to shake out weak longs by testing $575-$600, but it’s absolutely critical to view any such move as a correction in a secular bull market – not the beginning of a bear market! Meanwhile, they rang the “top” bell for copper but not for silver, platinum, palladium and especially uranium.

I continue to expect the second half of 2006 to be a good one for the junior resource market and urge high-risk speculators to use any weakness near term strictly as a “golden” opportunity.”

Oil traded over a dollar lower ahead of inventory reports which showed crude inventories built 1.6 million barrels, gasoline inventories built 800,000 barrels, distillates built 1.8 million barrels, and natural gas tocks built 80 billion cubic feet.  Crude inventories built instead of an expected fall, but gasoline inventories and natural gas stocks built less than expected and signs of increasing demand and refinery problems added to the bull argument to pull all energy prices higher on the day.  Oil did fall back off into the close, however, as reassurances came that OPEC would not cut its production at the conclusion of its meeting currently taking place in Venezuela.

The U.S. dollar index found decent gains in overseas trade in further reaction to yesterday’s hawkish fed minutes, but it then began to fall off following some strong European data and continued to drop after weak U.S. data to end with only slight gains.

Treasuries found gains in reaction to poor economic data, but any advance was minor ahead of tomorrow’s jobs data.

The Dow, Nasdaq, and S&P rose throughout trade and found decent gains on good retail reports and on poor economic data the reduced the chances for further fed interest rate hikes.

Among the big names making news in the market today were AMD, Toyota, GM, DaimlerChrysler, Ford, Nissan, Schering-Plough, Heinz, Vonage, Sun Micro, and various retailers.

GATA Posts:

Another Chinese central banker advises buying gold and oil instead of dollars

Even a sneering wise guy begins to see some virtue in gold

Gold & Silver Stock News Update from GoldReview.com:

AngloGold Ashanti’s (AU) agreement with Bema Gold (BGO), Almaden’s (AAU) review of projects, Cardero’s (CDY) update, Kinross Gold’s (KGC) senior vice president appointment, Fronteer’s (FRG) closed $38.4 million bought deal financing, Richmont’s (RIC) closed $15.2 million bought deal financing, Sterling Mining’s (SRLM.PK) membership to the Silver Institute, and Silver Standard’s (SSRI) extended south ridge zone at Pitarrilla were among the big stories in the gold and silver mining industry making headlines today.

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All of today's gold and silver stock news:

A Review of Almaden's Portfolio of Silver, Lead and Zinc Projects - "Almaden currently has 15 active joint ventures, including 11 in which other companies are carrying all costs in order to earn an interest in the related projects. Almaden will continue with its successful business model of creating new value by identifying exciting projects and managing risk by forming joint ventures in which partner companies explore and develop these projects." More
- June 01, 2006 | Item | E-mail

Guyana Goldfields Intersects 304.1 Metres of 4.85 g/t Au. - More
- June 01, 2006 | Item | E-mail

MGM Mineral Resources Expands Operations - More
- June 01, 2006 | Item | E-mail

Michigan Gold Releases Probable Lead (Pb) Reserves of the Anita Mine - More
- June 01, 2006 | Item | E-mail

St Andrew Announces Appointment of Chief Financial Officer and VP Finance and Administration - More
- June 01, 2006 | Item | E-mail

La Mancha Board of Directors Update - More
- June 01, 2006 | Item | E-mail

PGM Closes CDN$15 Million Dollar Private Placement and Announces Increase in Project Debt Facility with Investec Bank - More
- June 01, 2006 | Item | E-mail

Plexmar Finds Silver and Copper Associated With the Gold - More
- June 01, 2006 | Item | E-mail

Cardero Resource Corp.: Baja IOCG Update - "Cardero Resource Corp. wishes to announce that it has assumed 100% control of the newly discovered Baja California Norte Iron Oxide Copper Gold (IOCG) District, Mexico. Anglo American has elected to exit its joint exploration partnership leaving Cardero free to pursue its own aggressive exploration and drilling schedule and program. Cardero plans to recommence drill-testing at the high grade Picale Manto Copper Target by mid to late June." More
- June 01, 2006 | Item | E-mail

Northern Lion Acquires Nynasberget Gold Prospect - More
- June 01, 2006 | Item | E-mail

Kinross Announces Appointment of James Toccacelli as Senior Vice President, Communications - "James has a proven track record and will add a depth of knowledge in public relations at Kinross", said Tye Burt, President and Chief Executive Officer. "His multi-national expertise with globally recognized companies such as LS&CO, coupled with his experience in global business make him an excellent fit for the Kinross team." More
- June 01, 2006 | Item | E-mail

AngloGold, Bema Gold in Columbia exploration JV - "The new joint company's initial work will be focused on the prospective La Mina and El Pino targets. "AngloGold Ashanti has initially agreed to provide a minimum of eight exploration properties to the venture and Bema will provide or arrange a minimum $5 million in exploration funding," AngloGold said in a statement. The agreement envisages that the joint company will be listed within two years. AngloGold Ashanti said it had been exploring in Columbia since 1999." More
- June 01, 2006 | Item | E-mail

Intrepid Minerals-Paulsens Continues To Perform - More
- June 01, 2006 | Item | E-mail

Western Troy Defines Potential High Grade Resource at MacLeod Lake - More
- June 01, 2006 | Item | E-mail

AngloGold Ashanti Signs Agreement With Bema Gold Corporation - "AngloGold Ashanti is pleased to announce the signing of a Heads of Agreement with Bema Gold Corporation to form a New Company to jointly explore a select group of AngloGold Ashanti's mineral opportunities located in Northern Colombia. Newco's initial work will be focused on the prospective La Mina and El Pino targets." More
- June 01, 2006 | Item | E-mail

Vena Resources Expands Board of Directors - More
- June 01, 2006 | Item | E-mail

Sargold Resource Announces Appointment of George Paspalas as Chairman - More
- June 01, 2006 | Item | E-mail

YGC Resources Ltd. closes $ 8,250,000 in private placement - More
- June 01, 2006 | Item | E-mail

Rocmec Obtains a $2,000,000 Gold Loan - More
- June 01, 2006 | Item | E-mail

Rockgate Commences Drill Program at Ixtapan Gold Property in Mexico - More
- June 01, 2006 | Item | E-mail

Odyssey Resources Limited: Independent Resource Estimate Underway At Alous Copper-Silver Deposit In Morocco - More
- June 01, 2006 | Item | E-mail

Red Lake shareholders approve name change - More
- June 01, 2006 | Item | E-mail

Anatolia Files Feasibility Study for Copler Gold Project - More
- June 01, 2006 | Item | E-mail

Golden Goose Resumes Drilling at Magino Mine Following Successful Program - More
- June 01, 2006 | Item | E-mail

Bema Signs Agreement with AngloGold Ashanti for Colombia Exploration Properties - "Bema Gold Corporation is pleased to announce the signing of a heads of agreement with AngloGold Ashanti, to form a New Company to jointly explore mineral opportunities within a 120,000 square kilometre area of northern Colombia. Under the HOA, Newco shall have the right to earn a 51% interest in any property which AGA chooses to farm out within the area of interest, by executing a minimum of 3000 metres of exploration drilling and matching prior AGA exploration expenditures." More
- June 01, 2006 | Item | E-mail

Fronteer Closes $38.4 Million Bought Deal Financing - "Fronteer Development Group Inc. is pleased to announce that it has closed its "bought deal" short form prospectus offering pursuant to which the Company sold 6,000,000 common shares at a price of $6.40 per common share for aggregate gross proceeds of $38,400,000. The net proceeds of the offering shall be used by the Company to advance its exploration programs in Turkey, the Yukon and Mexico, for future acquisitions and for general working capital." More
- June 01, 2006 | Item | E-mail

Sterling Mining Becomes the Newest Member of the Silver Institute - "The Silver Institute is pleased that Sterling Mining Company has become a member", stated Michael DiRienzo, Executive Director of the Silver Institute. "What makes the Silver Institute successful is the commitment of its members and leaders to building a stronger silver industry and a better market for our product. The addition of Sterling Mining Company to our roster of members is much valued, and will certainly assist in that regard." More
- June 01, 2006 | Item | E-mail

Cusac Gold Mines Ltd.: $5.75 Million Production/Exploration Financing Closed - More
- June 01, 2006 | Item | E-mail

Searchlight Minerals Corp. resumes drilling at Clarkdale Slag Reclamation Project - More
- June 01, 2006 | Item | E-mail

Quinto Receives Financial Support in Quebec - More
- June 01, 2006 | Item | E-mail

Phase III Drilling Expands Toruel Deposit - More
- June 01, 2006 | Item | E-mail

Revett Minerals Retains Renmark Financial as Investor Relations Agent - More
- June 01, 2006 | Item | E-mail

Golden China Announces Delay in Holding Golden China Shareholder Meeting - More
- June 01, 2006 | Item | E-mail

Norsemont Mining to host corporate update conference call on Friday June 2nd, 2006, 10:00 AM Pacific Time - More
- June 01, 2006 | Item | E-mail

Golden Phoenix's Ashdown Molybdenum Project Enters Final Review Period Prior to Start of Full-Scale Mining - More
- June 01, 2006 | Item | E-mail

Apogee Minerals Ltd.: New Bolivian Mining Code Draft Proposes Fiscal and Tax Stability - More
- June 01, 2006 | Item | E-mail

Pan American Gold Corporation Begins Work on the Huicicila Property - More
- June 01, 2006 | Item | E-mail

Osisko Cuts 166m @ 1.10 g/t Au At Canadian Malartic - More
- June 01, 2006 | Item | E-mail

Alhambra announces commercial operations at Uzboy - More
- June 01, 2006 | Item | E-mail

Pan African Mining Corp. Commences Core Drilling at Mountain of Gold - More
- June 01, 2006 | Item | E-mail

Magnus International Resources Completes Initial Geophysics Program and Plans Drilling Commencement for Late June 2006 - More
- June 01, 2006 | Item | E-mail

Richmont Mines Inc. Announces the Closing of a Bought Deal of Common Shares - "Richmont Mines Inc. has today closed its previously announced bought deal of 3,100,000 common shares at a price of $4.90 per common share, for gross proceeds of approximately $15.2 million. The offering was underwritten by a syndicate led by Desjardins Securities Inc., and included Blackmont Capital Inc. and BMO Nesbitt Burns Inc." More
- June 01, 2006 | Item | E-mail

Silver Standard Extends South Ridge Zone by 250 Meters at Pitarrilla Silver Project in Mexico - "In this latest set of drill results, step-out drilling has again expanded the South Ridge Zone 250 meters to the north of its previous drill-defined margin; and one of the new South Ridge holes intersected base metal mineralization at depth." More
- June 01, 2006 | Item | E-mail

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- Written by Chris Mullen

Winners & Losers tracks NYSE and AMEX listed stocks that trade over $1.

The Gold Seeker Closing Report is a free edition providing a daily wrap-up of gold & gold-related news.  For more in-depth analysis of the gold markets, subscribe to The Gold Forecaster.

All sources are given within the report and most articles can be found as they are released at http://www.capitalupdates.com/, http://www.goldseek.com/, http://www.silverseek.com/, and http://www.goldreview.com/.

© Gold Seeker 2006

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-- Posted Thursday, 1 June 2006 | Digg This Article