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

The Markets:

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

Oil traded on either side of unchanged and ended slightly lower on hopes that the U.K.-Iran hostage situation will be resolved over the weekend.

The U.S. dollar index initially rose on mostly positive economic data, but it then fell and ended lower after Secretary of Commerce Carlos Gutierrez announced plans for tariffs on imports from China that may result in reduced trade from China and a drop in demand for U.S. dollar based assets.

Treasuries fell on economic data that came in mostly better than expected, but losses were limited as geopolitical worries encouraged some safe haven buying.

The Dow, Nasdaq, and S&P opened higher before they fell dramatically on worries over Chinese trade sanctions, but all three indices eventually rebounded and ended near unchanged as those worries eased.

Among the big names making news in the market Friday were Chrysler, Ford, Bank of America, H&R Block, Dell, Tribune, and Amaranth.

The Commentary:

“June Gold finished up 1.4 at 669, 4.8 off the high and 2.2 up from the low.

May Silver closed up 0.11 at 13.45. This was 0.12 up from the low and 0.02 off the high.

Gold prices firmed after the Dollar weakened on news the White House is reversing a long standing policy that will no longer exempt Chinese companies from US anti-subsidy laws. A US move toward protectionism is certainly negative for Dollar investments. While the China news is weighing on the US stock market, firmer action in the Euro currency seems to be underpinning gold prices. Escalating tensions between the UK and Iran over captured sailors is another factor providing gold with safe haven buying interest. The gold market is also being supported by some good economic news which showed stronger Midwest business activity this month and stronger than expected construction spending last month. However, the higher than expected gain in the annual core PCE price index does raise inflation worries and supports the bull case for gold.

The silver market traded firmer on Friday supported by strength in both the gold and copper markets. The economic news was surprisingly strong showing a healthy expansion in Midwest business activity this month and a higher inflation reading last month which supports silver on an industrial metal basis and as an inflation hedge. The US decision to start applying tariffs on imports of certain products from China is also raising concerns for a trade war and the silver market appears to be garnering support from a weaker Dollar while shaking off weakness in the stock market. Of course, the escalation in political tensions with Iran continues to be a solid base of support and with no progress toward freeing the UK sailors, safe haven buying continues to underpin the silver market as well.”- The Hightower Report, Futures Analysis and Forecasting

GATA Posts:

GoldSeek's Spina gets MarketWatch to quote him subversively

Ron Struthers: Gold market will beat central banks before reporting rules do

The Statistics:

As of close of business: 3/29/2007

Global Gold ETF Holdings

[WGC Sponsored ETF’s]

Note: Change in Total Tonnes from yesterday’s data:  The NYSE added 4.62 tonnes.

COMEX Gold Trust (IAU)

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

Silver Trust (SLV)

Note: Change in Total Tonnes from yesterday’s data: 30.96 tonnes were added to the trust.

The Stocks:

Newmont’s (NEM) investments in Indonesia, Queenstake’s (QEE) measured and indicated resources and fourth quarter and 2006 results, Silver Eagle’s (SEG.TO) drill results, and ECU Silver’s (ECU.V) news assays were among the big stories in the gold and silver mining industry making headlines Friday.

WINNERS