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

The Markets:

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

Oil fell markedly as crude inventories surprisingly rose a much more than expected 6.8 million barrels, gasoline inventories built 3.5 million barrels, and distillates rose 900,000 barrels.

The U.S. dollar index rose versus the yen as the Bank of Japan did not raise interest rates, but it fell versus the euro and ended slightly lower despite strong economic data that typically would give strength to the index.

Treasuries eventually rose despite stronger than expected economic data as interest rates retreated from 12 week highs.

The Dow, Nasdaq, and S&P fell despite lower oil as strong economic data reduced any hopes for a fed interest rate cut.

Among the big names making news in the market today were Associates Banc, Harley-Davidson, Bank of New York, Merrill Lynch, and Sallie Mae.

The Commentary:

“Once again, for the umpteenth time, I would like to stress that the key to understanding the gold market is to know what GATA knows. It is mostly about physical market buying overpowering the ability of The Gold Cartel to keep the price down. THAT’S IT!!!!

Yes, the price of oil, crises, inflation, the dollar etc., all have their own effect on the gold price, but they are secondary factors. Such short memories …. years ago it was said gold was "joined at the hip" of the dollar … that gold would only move up as the dollar went down. WRONG! After Gold Rush 21 in early August 2005, GATA’s conference in the Yukon, which was attended by Andrey Bykov, a key economic consultant to Russia’s President Putin, gold rallied from $436 to $730+ and the dollar barely budged.” - From yesterday’s Midas report by Bill Murphy of LemetropoleCafe.com

“February Gold finished down 5.2 at 628.1, 9.1 off the high and 0.7 up from the low.

March Silver closed down 0.205 at 12.685. This was 0.025 up from the low and 0.305 off the high.

Apparently the combination of sharply declining oil prices and periodic strength in the Dollar was too much for the gold market. With the gold market first making some critical levels on the charts before reversing ground and closing weak, the trade seems to have forged a key reversal. While the trade doesn't seem to have abandoned the idea that investment demand will continue to support gold prices, the market does seem to have downgraded the near term benefits from the theme. With the US economic numbers released during the session mostly as expected and in general providing the gold market with support the root of the selling wave certainly seems to have come from the energy complex. Surprisingly the platinum market was able to make some solid gains in the face of the sharp slide in gold and that would seem to suggest that the environment for precious metals hasn't completely soured.

While the silver market finished moderately lower it seemed to open softer than gold in a move that hinted at an ongoing profit taking mentality. March silver also managed to rise above the prior day's highs in the wake of the US economic numbers but like the gold market, overt weakness in the oil market, weakness in copper and equities just seemed to give the bear camp a measure of fresh confidence. In fact, massive declines in copper and energy prices could easily have fostered a deflationary psychology in the marketplace, if the US economic numbers released during the session weren't mostly upbeat.” - The Hightower Report, Futures Analysis and Forecasting

GATA Posts:

Young euro threatens dollar supremacy

The Statistics:

As of close of business: 1/17/2007

Global Gold ETF Holdings

[WGC Sponsored ETF’s]

 Note: Change in Total Tonnes from yesterday’s data: 3.08 tonnes were added to the trust.

COMEX Gold Trust (IAU)

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

Silver Trust (SLV)

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

The Stocks:

Taseko’s (TGB) increased bid for bcMetals, Anatolia’s (ANO.TO) resource estimate, Gold Fields’ (GFI) 95.6% interest in Western Areas, International Royalty’s (ROY) C$40 million financing, Queenstake’s (QEE) drill results, Ivanhoe’s (IVN) exploration discoveries, Yale’s (YLL.V) exploration programs, Palmarejo’s (PJO.V) drill results, Arian Silver’s (AGQ.V) exploration work, Minefinders’ (MFN) mine update, and Orko Silver’s (OK.V) drill results were among the big stories in the gold and silver mining industry making headlines today.

WINNERS

LOSERS

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

All of today's gold and silver stock news:

Taseko Increases bcMetals Bid to $1.25 - "Taseko Mines Limited ("Taseko" or the "Company") (TSX:TKO.TO - News)(AMEX:TGB - News) announces that on January 19, 2007 it will be mailing a Notice of Variation (No 3) to its take-over bid for bcMetals Corporation ("bcMetals") common shares and out-of-the money warrants, which variation reflects an increase in the bid price to $1.25 per bcMetals share. The other terms and conditions to the bid remain the same except for the expiry time which is extended to midnight, January 29th, 2007." More
- January 18, 2007 | Item | E-mail

North American Gem Inc. Acquires the Mosquito Gulch Uranium Property - More
- January 18, 2007 | Item | E-mail

Mansfield Minerals Inc.: Drilling Expands Lindero, NW Argentina - More
- January 18, 2007 | Item | E-mail

Aur Resources Completes the Purchase of an Additional 27% Interest in Its Andacollo Mine Property in Chile - More
- January 18, 2007 | Item | E-mail

Klondike Star Releases Final 2006 Drilling and Lone Star Project Mineralization Still