Timberline Resources Corp. [OTC-BB: TBLC] Upside Through Discovery • Record Revenues - Drilling Services

All of this week’s economic reports:

Next week’s economic highlights include Consumer Credit on Tuesday and Export and Import Prices, Initial Jobless Claims, the Trade Balance, and Wholesale Inventories on Thursday.

The Markets:

Charts Courtesy of http://finance.yahoo.com/

Oil rose on worries over militants in Nigeria that may be planning a new wave of attacks in oil producing parts of the nation.

The U.S. dollar index rose and treasuries fell on upward revisions to previous job reports that made it more likely that the fed will raise rates rather than lower rates.

The Dow, Nasdaq, and S&P opened briefly higher before they fell for the rest of trade and ended modestly lower on worries over higher interests rates and a rising oil price.

Among the big names making news in the market Friday were Caterpillar, Washington Post, Medco, and Microsoft and Novell.

The Commentary:

“December Gold finished up 1.4 at 629.2, 2.1 off the high and 9.7 up from the low.

December Silver closed down 0.015 at 12.635. This was 0.275 up from the low and 0.045 off the high.

The gold market took an initial negative reaction to strong US economic numbers this morning, but as the session progressed the market appeared to slough off the bearishness of the reports as it traded to new 8-week highs. The US unemployment rate fell to 4.4% in October, the lowest since May 2001, which had traders figuring that the Fed will tighten or hold rates steady. The fact that gold rallied in the face of a sharply higher Dollar suggests that the market may have found support from the demand side and from platinum prices trading $4.50 higher today. It probably also didn't hurt that crude oil prices were up as well after the US Government warned that militant group in Nigeria may have plans to attach oil facilities there.

The silver market's failure to follow through on an overnight move to new highs put the technical outlook under a cloud. Today's strong economic readings brought in some immediate selling, probably some profit taking on the notion that the Fed will not cut rates anytime soon. The market did work gradually higher after the initial break, but never made it though the overnight highs. It appears that the market is more worried about higher rates at the moment than being encouraged by evidence of a stronger economy.”- The Hightower Report, Futures Analysis and Forecasting

GATA Posts:

Democrats warn that U.S. debt could trigger crisis

Buy gold regularly, like clockwork, and it will treat you right

The Statistics:

As of close of business: 11/2/2006

Global Gold ETF Holdings

[WGC Sponsored ETF’s]

Note: Change in Total Tonnes from yesterday’s data:  The LSE added 4.36 tonnes and the ASX added 0.04 tonnes.

COMEX Gold Trust (IAU)

Note: Change in Total Tonnes from yesterday’s data: 0.01 tonnes were subtracted form the trust.

Silver Trust (SLV)

Note: No change in Total Tonnes from yesterday’s data.

The Stocks:

Quarterly reports from Pan American (PAAS), Silver Wheaton (SLW), and Kinross Gold (KGC), Banro’s (BAA) drill results, Cumberland’s (CLG) C$87 million equity financing, Pacific Rim’s (PMU) extended closing date for the Denton-Rawhide sale, Rio Narcea’s (RNO) project update, Eldorado’s (EGO) drill results, Imperial Metals’ (III.TO) extended hostile bid for bcMetals (C.V), and Great Panther’s (GPR.V) new exploration manager were among the big stories in the gold and silver mining industry making headlines Friday.

WINNERS

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