Gold Seeker Closing Report: Gold Gains Nearly 2% and Silver Gains Over 11%

-- Posted Wednesday, 29 October 2008 | Digg This Article Digg It!

| | Source: GoldSeek.com

	Close	Gain/Loss
Gold	$753.55	+$13.10
Silver	$9.79	+$1.005
XAU	80.51	+10.71%
HUI	195.09	+12.97%
GDM	575.04	+12.84%
JSE Gold	1541.31	+135.69
USD	84.61	-2.10
Euro	129.46	+2.11
Yen	102.86	+0.58
Oil	$67.50	+$4.77
10-Year	3.874%	+0.054
T-Bond	115.078125	-1.28125
Dow	8990.96	-0.82%
Nasdaq	1657.21	+0.47%
S&P	930.09	-1.11%

Gold rose $16.50 to $756.95 in Asia and fell to see a $3.20 loss at $737.35 in London before it climbed to a new session high of $774.40 by late morning in New York and then fell back off into the close a bit, but it still ended with a gain of 1.77%. Silver rose $0.675 to $9.46 in Asia and fell to $9.01 in London before it climbed to a new session high of $10.148 by late morning in New York and then fell back off into the close a bit, but it still ended with an impressive gain of 11.44%.

Euro gold fell to about €586 on euro strength, platinum gained $14 to $807, and copper gained 23 cents to about $2.07.

Gold and silver equities rose over 12% by early afternoon and remained near their highs into the close.

Report	For	Reading	Expected	Previous
Durable Orders	Sep	0.8%	-1.0%	-5.5%
FOMC Policy Statement	10/29	1.0%	1.0%	1.5%

The fed noted that downside risks to growth remain despite the large rate cut and that indicates perhaps further rate cuts or at least remaining at 1% for some time ahead. Fed funds futures are already anticipating another 0.25% cut at the fed’s next meeting in December.

Tomorrow at 8:30AM EST brings Initial Jobless Claims for 10/25 expected at 473,000, third quarter GDP expected at -0.5%, and the Chain Deflator expected at 4.0%.

Oil rose markedly despite a rather bearish inventory report as the U.S. dollar index plummeted on the expectation and then follow through of the fed’s decision to cut interest rates by 50 basis points. The European Central Bank, the Bank of England, and perhaps even the Bank of Japan are also expected to cut interest rates as well in the coming weeks, but the dollar fell even further versus the yen after the fed’s rate cut was finally announced as some doubt that the Bank of Japan will actually follow through on their possible rate cut first rumored yesterday.

Treasuries ultimately fell on worries over future inflation while the Dow, Nasdaq, and S&P waffled on either side of unchanged both before and after the fed rate cut that met expectations. Stocks then climbed higher in late trade and saw about 2% gains at one point, but a late profit warning from GE brought the Dow and S&P back lower by the close while the Nasdaq escaped with a modest gain.

Among the big names making news in the market today were Apple, Qwest, VW and Porsche, Procter & Gamble, Kraft, Sony, Moody’s, Comcast, Newmont, and GM.

“December Gold closed up 13.5 at 754. This was 4.5 up from the low and 18.2 off the high.

December Silver finished up 1.015 at 9.805, 0.275 off the high and 0.235 up from the low.

Gold managed to reject initial weakness early Wednesday morning and by mid session the gold market had forged an impressive recovery bounce. Clearly the sharp slide in the Dollar, rising energy prices and gains in a host of physical commodity markets provided a short covering environment. While gold initially sagged in the wake of the Fed's 50 basis point rate cut, seeing the rate cut should continue to temper the deflationary mantra dominating the headlines. It is also possible that slightly better than expected headline readings in the US Durable goods report provided a lift to gold prices on Wednesday.

The silver market mounted a fairly impressive recovery bounce which some players might have attributed to technical short covering. However, with the stock market at times Wednesday adding to the gains from the prior trading session, it would seem like some of the severe deflationary environment was lifting and that in turn helped a number of physical commodity markets like silver rally. It is also likely that strength in gold and copper gave the silver bulls additional confidence during the trade today. Even a slight correction in the stock market after the FOMC rate cut decision failed to severely dent the strength in silver prices.”- The Hightower Report, Futures Analysis and Forecasting

Banro’s (BAA) assay results, Pacific Rim’s (PMU) asset sale, Newmont’s (NEM) third quarter profit, ITH’s (THM) resource estimate, Gold Fields’ (GFI) quarterly earnings, Kirkland’s (KGI.TO) letter of intent to expand gold production, Barrick’s (ABX) dividend, SilverCrest’s (SVL.V) drill results, and Avino’s (ASM.V) mining permits 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.

Cardero Resource Corp.: SRK Updates Preliminary Economic Assessment for Pampa de Pongo Iron Deposit - More
- October 29, 2008 | Item | E-mail

Bandolac Mining Company, Limited New Corporate Name - More
- October 29, 2008 | Item | E-mail

Raytec Metals Corp.: Uranium Drilling Update - More
- October 29, 2008 | Item | E-mail

Constitution Mining Receives More Positive Results From Its Cerro Amarillo Property, Mendoza Province, Argentina - More
- October 29, 2008 | Item | E-mail

Richfield mobilizes drill to Mouse Mountain - Quesnel Trough target - More
- October 29, 2008 | Item | E-mail

Romarco Expands Haile North Zone With New 83.5 M Intercept at 4.0 g/t Au - More
- October 29, 2008 | Item | E-mail

Zazu Hits More High Grade Zinc Intersections at Lik - More
- October 29, 2008 | Item | E-mail

Strait Gold Provides Corporate Update, Reviews Exploration Activity - More
- October 29, 2008 | Item | E-mail

Gold miners' earnings hurt by higher costs - "Two of the world's leading gold miners reported big drops in quarterly earnings on Wednesday as soaring costs for fuel and raw materials ate into margins already narrowed by a slumping gold price. Denver-based Newmont Mining Corp (NEM.N: Quote, Profile, Research, Stock Buzz), the world's second-largest gold producer, posted a steeper-than-expected 51 percent drop in third-quarter profit, due to decreased sales volumes and higher production costs." More
- October 29, 2008 | Item | E-mail

Klondike Gold Corp.: Irishman Drill Program Commences - More
- October 29, 2008 | Item | E-mail

FACTBOX-Mines and plants hurt by low prices, high costs - "The global financial crisis and sharp falls in metals prices have forced several companies to abandon or put on hold their plans to bring new mines on-stream.

Some existing producers also have shut down or curtailed their output at mines and plants as high costs and low prices bite. Below are details of the major projects and facilities which have been affected in recent months, as well as other related news." More
- October 29, 2008 | Item | E-mail

North American Palladium Announces Third Quarter 2008 Financial Results Conference Call - More
- October 29, 2008 | Item | E-mail

Barrick Gold Announces Dividend - "Barrick Gold Corporation (ABX - News)(Toronto:ABX.TO - News) today announced that its Board of Directors has declared a dividend of US20 cents per share, payable on December 15, 2008 to shareholders of record at the close of business on November 28, 2008. This dividend follows the US20 cents per share dividend paid on June 16, 2008." More
- October 29, 2008 | Item | E-mail

Gold Resource Corporation Intercepts 1.2M of 83.10 G/T Gold and 2340 G/T Silver Within 4.5M of 33.27 G/T Gold and 1105 G/T Silver at El Aguila Project - More
- October 29, 2008 | Item | E-mail

Stratabound Reports Captain Property Copper-Cobalt Resource Estimate - More
- October 29, 2008 | Item | E-mail

Advanced Explorations Inc. Focuses Plans on an Iron Nugget Plant - More
- October 29, 2008 | Item | E-mail

Inmet to proceed with Petaquilla project for now - More
- October 29, 2008 | Item | E-mail

SLAM Announces Trenching Results From TSN - More
- October 29, 2008 | Item | E-mail

Houston Lake Mining to Initiate 2000 Metre Drill Program on the Dubenski Gold Property - More
- October 29, 2008 | Item | E-mail

Baja Mining Delays Development of Boleo Project Pending Improved Market Environment - More
- October 29, 2008 | Item | E-mail

Nunavik Nickel Project Exploration Update: New Mineralized Zone Discovered; High-Grade Massive Sulphides Intersected at Kehoe - More
- October 29, 2008 | Item | E-mail

Yankee Hat Makes High Grade Tungsten Discovery; Kidlark Project, Yukon - More
- October 29, 2008 | Item | E-mail

Bear Lake Gold Issues Units for Debt - More
- October 29, 2008 | Item | E-mail

Hana Adds 1500 Meter Strike Length to New Discovery at Ghanzi, Botswana - More
- October 29, 2008 | Item | E-mail

High Desert Gold Responds to Unsolicited Take-Over Bid - More
- October 29, 2008 | Item | E-mail

China Shen Zhou Mining & Resources, Inc. CEO to Attend the Executive Board Conference of the China Fluorite Industry Association - More
- October 29, 2008 | Item | E-mail

Northland Resources Strengthens Its Nordic Identity - More
- October 29, 2008 | Item | E-mail

Altius Reports Iron Ore Drill Intercepts in Labrador - More
- October 29, 2008 | Item | E-mail

Castillian Provides Update; Discovers Massive Sulphide Mineralization at Kagera, Tanzania; Divests Macaubas Project; David Argyle Joins Castillian Board - More
- October 29, 2008 | Item | E-mail

PC Gold Hits High Grade Gold at Pickle Crow Gold Mine; Deepest Hole Ever Drilled on Property Intersects Visible Gold, Assays Pending - More
- October 29, 2008 | Item | E-mail

VMS Ventures Inc.: Drill Hole RD-08-65 Intersects 99.32 Metres of 1.08% Copper, at Reed Lake Discovery Zone, Snow Lake, Manitoba - More
- October 29, 2008 | Item | E-mail

A Leading Canadian Geological Specialist Joins Nirek - More
- October 29, 2008 | Item | E-mail

Banro intercepts further significant gold mineralization in feasibility drilling at its Twangiza project - "Assay results have been received for an additional 42 core holes drilled at the Twangiza North and Twangiza Main deposits since the last drilling update in July 2008. These 42 core holes, which were drilled as part of the Company's full feasibility study, were not included in the mineral resource estimates that were used for the Twangiza pre-feasibility study announced on July 7, 2008." More
- October 29, 2008 | Item | E-mail

Pacific Rim Mining Divests Denton-Rawhide; Bolsters Balance Sheet - "Pacific Rim Mining Corp. ("Pacific Rim" or "the Company") (Toronto:PMU.TO - News)(NYSE-A: PMU) has accepted an offer from its Denton-Rawhide joint venture partner Kennecott Rawhide Mining Company to purchase the assets the Company holds through its 49% interest in the joint venture. Total compensation for these assets includes US $3.1 million plus the free cash flow from 49% of all gold and silver production from the Denton-Rawhide operation through to December 31, 2008." More
- October 29, 2008 | Item | E-mail

Newmont 3Q profits fall 51 percent on higher costs - "Newmont Mining Corp., one of the world's largest gold producers, said Wednesday its third-quarter net income dropped by 51 percent, blaming higher production costs and one-time gains recorded in the year-ago quarter." More
- October 29, 2008 | Item | E-mail

SilverCrest Reports Final Phase II Drilling; Santa Elena Project, Mexico - "The 17 core holes reported in the table and text below (to view attached drill plan please click on the following link: http://media3.marketwire.com/docs/Silvercrest.pdf) are the final holes of the Phase II drill program that was designed to up-grade and expand current gold and silver reserves and resources for the project. The most notable intercepts of this series of holes were encountered in hole SE08-95 which intercepted 9.6 metres (31.4 feet) grading 2.32 gpt gold and 73.9 gpt silver and hole GT08-01 with 7.6 metres (24.9 feet) grading 5.22 gpt gold and 114.7 gpt silver." More
- October 29, 2008 | Item | E-mail

Avino Receives Mining Permits - "Avino Silver & Gold Mines Ltd. (TSX VENTURE:ASM - News; OTCBB:ASGMF - News; BERLIN:GV6 - News; FRANKFURT:GV6 - News; the "Company") is pleased to report significant progress has been made this year. All permits needed to mine the San Gonzalo deposit have been received. A Reclamation Plan together with its associated costs to implement for the newly disturbed ground have been requested and stipulated in the Environmental Permit granted by SEMARNAT. This plan is now being developed and addressed for submission." More
- October 29, 2008 | Item | E-mail

ITH Doubles Gold Resource at Livengood Project, Alaska - "International Tower Hill Mines Ltd. ("ITH" or "the Company") (CDNX:ITH.V - News)(NYSE-A: THM)(Frankfurt:IW9.F - News) is pleased to announce the results of its independently prepared mid-year mineral resource estimate for the Money Knob deposit at its Livengood gold project near Fairbanks, Alaska. The independent study incorporates approximately half the drilling that has been completed on the property in 2008." More
- October 29, 2008 | Item | E-mail

Short Term Earnings Reduced by Safety Related Measures at the South African Operations - "In US dollar terms normalised earnings excluding gains and losses on foreign exchange, financial instruments, exceptional items, share of loss of associates after taxation and discontinued operations for the September 2008 quarter were US$16 million, compared with earnings of US$123 million and US$58 million in the June 2008 and the September 2007 quarters respectively." More
- October 29, 2008 | Item | E-mail

Kirkland Lake Gold Announces J.S. Redpath Signs Letter of Intent to Expand Gold Production - "Kirkland Lake Gold Inc. (TSX:KGI - News; AIM:KGI) is pleased to announce it has signed a Letter of Intent with J.S. Redpath Limited of North Bay, Ontario to bring the high grade South Mine Complex into production on a seven day a week basis at an initial rate of 425 tons per day. The Company's existing mining crews and contract miners will continue to mine ore stopes and undertake additional stope development in the Main Break, with gold production from both areas under the plan targeted to reach 100,000 ounces annually." More
- October 29, 2008 | Item | E-mail

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