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Gold came under pressure overnight in the Asian markets but is holding support around $1,700…as of 7:15 am Pacific, bullion is down $15 an ounce at $1,701 after dipping as low as $1,690…Silver is 54 cents lower at $33.12…Copper is up 2 pennies at $3.64…Crude Oil has retreated 91 cents to $88.18 while the U.S. Dollar Index has fallen nearly one-fifth of a point to 79.69…

According to UBS, Gold’s move overnight “was not influenced by external forces and was likely a reflection of some participants’ growing frustration that Gold has not managed to climb above $1,750 – long liquidation was amplified by sizeable stops and technical selling…while the downside move was violent, there are some differences from last week’s plummet during the U.S. time zone that are worth highlighting…most importantly, the selling occurred in the Asian time zone where liquidity is typically far from robust…it also happened around lunch time when many traders were off their desks…all these factors together served to intensify the liquidity issue…secondly, the volumes involved were relatively small at about one-fifth of the volumes traded during last week’s sell-off…and finally, there was no follow-through – the selling pressure dissipated quite quickly, with bids emerging just under $1,700, helped by a stronger euro and overall upbeat sentiment”…

Euro Chart Update

Despite Gold’s weakness this morning, a positive development for bullion is the strengthening bullish trend of the euro going into 2013 which also correlates with a struggling U.S. Dollar Index which recently couldn’t push through important resistance around 81.50…as John shows in the 2.5-year weekly chart below, the euro has formed a classic cup-with-handle pattern…this has to be considered bullish for Gold which generally has been following the euro in 2012…

Today’s Markets

Asian markets were mixed overnight, though China’s Shanghai Composite managed to post a 15-point gain to 1975…European markets edged mostly higher today while in North America, the Dow is up more than 50 points through the first 45 minutes of trading…the TSX is off 7 points while the Venture is down 6 points to 1202…

Bank of Canada Leaves Rate Unchanged, Predicts Pick-Up In Economic Growth

The Bank of Canada is keeping its trendsetting interest rate anchored at 1% for the remainder of the year while it also sent a message today that it still believes the cost of borrowing in Canada will go up at some point in the future…“In Canada, economic activity in the third quarter was weak, owing in part to transitory disruptions in the energy sector,” the Bank of Canada said in a statement at the end of its latest round of policy deliberations this morning…“Although underlying momentum appears slightly softer than previously anticipated, the pace of economic growth is expected to pick up through 2013″..this morning’s decision was the 18th consecutive time Mark Carney has kept the policy rate at 1% comprising over two years, the longest stretch of stability since the 1950’s…

Coruvs Gold (KOR, TSX)

Corvus Gold (KOR, TSX) announced this morning that it has expanded its North Bullfrog land package in Nevada by nearly 25 square kilometres or 52%…Phase I resource conversion and expansion drilling at the Jolly Jane deposit in the North Bullfrog area is underway with the program focused on resource conversion on private lands at Jolly Jane which the Company anticipates including in its Phase I mine development plan…the program is expected to be completed by year0-end and results available for inclusion into the company’s ongoing Phase I feasibility study scheduled for completion during the first quarter of next year…Corvus hit a new all-time high of $1.71 yesterday and is down slightly to $1.65 in early trading today…

Pilot Gold (PLG, TSX)

Pilot Gold Inc. (PLG, TSX) released assay results yesterday from eight new diamond drill holes from its program at the TV Tower Project in Turkey that returned long intervals of Gold, Silver and Copper mineralization with areas of exceptionally high grades…drill hole KCD-50 highlights the third consecutive set of strong assay results at the Kucukdag (KCD) target, returning 193 grams per tonne (g/t) Gold, 9.8 g/t Silver and 0.46% Copper over 12 metres…visible Gold was confirmed in several veins within this interval, which is located at a vertical depth of 100 metres from surface…approximately 8,400 metres in 45 holes at KCD have been completed with assays pending for 24 holes…drilling for the remainder of 2012 will continue to focus on infill and step-out drilling in the KCD target area, followed by systematic testing of other high-priority targets in early 2013…

ATAC Resources (ATC, TSX-V) Updated Chart

Yukon plays have been hit hard in recent weeks including stalwarts ATAC Resources (ATC, TSX-V) and Kaminak Gold (KAM, TSX-V)…this time of the year should be bargain-hunting time for Yukon Gold stocks (ATAC climbed by nearly 80% between mid-December and early February last year, while KAM jumped by over 50%)…below is an updated2.5-year weekly chart for ATC from John that shows a potential bottom ($1.74) and a basing pattern…

Discovery Ventures (DVN, TSX-V)

One of the most impressive stocks on the Venture this quarter has been Discovery Ventures (DVN, TSX-V) which is working toward putting the Willa deposit (Au, Cu Ag) in the Slocan Valley into production…considerable historical development work has gone into the Willa which is situated approximately 8 miles north of Rainbow Resources‘ (RBW, TSX-V) recently drilled Gold Viking Property…DVN has shown excellent liquidity and gained another 3 pennies yesterday to 34 cents on total volume of nearly 1.4 million shares…below is another DVN chart from John…as always, perform your own due diligence…

Note: John, Jon and Terry do not hold positions in KOR, PLG, ATC or DVN…

Gold has traded in a range between $1,713 and $1,723 so far today…as of 6:45 am Pacific, bullion is flat at $1,715…Silver is 20 cents higher at $33.64…Copper is off a penny at $3.61…Crude Oil has gained $1.32 to $90.23 while the U.S. Dollar Index is hurting, down one-fifth of a point to 79.96…

China’s Economic Recovery Gaining Traction

The mainstream media is so focused on scaring Americans with the so-called “Fiscal Cliff”, it’s missing an important good news story unfolding in China…the pace of China’s manufacturing activity quickened for the first time in 13 months in November, with the final reading for the HSBC Purchasing Managers’ Survey (PMI) rising to 50.5 after seven quarters of slowing economic growth…China’s economic health has improved since September, with an array of indicators from factory output to retail sales and investment showing Beijing’s pro-growth policies are starting to gain traction…analysts said the end of a destocking cycle and a greater pace of investment would keep driving up domestic demand, and  extend the recovery trend into the final quarter of this year…smaller and private firms, however, are still pleading for greater access to credit and investment incentives, which have gone disproportionately to the state sector, particularly since the financial crisis of 2008-2009…

China’s National Development and Reform Commission (NDRC) approved new metro rail and railway projects amounting to Rmb 160 billion in November, after approving metro rail projects of Rmb 843 billion in September…those projects will be able to support fixed asset investment growth for the years to follow…China’s premier-in-waiting, Li Keqiang, stated the other day that his government’s priorities going forward will be urbanization and modernization of infrastructure which will drive GDP and the construction, materials, property and consumptions sectors…

Codelco, the world’s largest Copper producer, said there has been “sound and solid” interest from Chinese customers amid signs the country’s growth outlook is improving… “There’s a lot of optimism regarding Copper demand going forward,” Chief Executive Officer Thomas Keller stated in an interview from Shanghai…

Silver Update – Short-Term & Long-Term Charts

Silver is looking strong and continues to outperform Gold – it actually gained 21 cents last week while Gold fell $37 an ounce or 2%…the $33.50 area has proven to be strong support for Silver recently (it has two other very strong support bands between $30 and $32), and $33.50 is also just above the rising EMA-20 which is currently sitting at $33.21…below is a 9-month daily chart from John…after some strong selling pressure most of October and into early November, buying pressure has been increasing significantly recently…at 56%, RSI(14) is currently in decline but has a good chance of finding support at or just above the 50 level…next major resistance is $35.50…

Silver – Long-Term Chart

Based on historical trends, there’s an excellent chance that RSI(2) could once again climb into overbought territory for an extended period in the near future, so this bodes well for a potential Silver rally through the end of the year and into the first quarter of 2013…”Wave 5″ continues to progress well and the ultimate Fibonacci target (no timeline) is $78 an ounce…

Today’s Markets

Asian markets were mixed overnight…Japan’s Nikkei share average edged up to a seven-month closing high, helped by futures buying as a weaker yen and improved Chinese manufacturing data encouraged investors…China’s Shanghai Composite fell another 20 points to close near a four-year low at 1958…European markets are strong this morning while the Dow is up 47 points through the first 15 minutes of trading…the TSX and the Venture Exchange are both off slightly…

Discovery Ventures (DVN, TSX-V)

Discovery Ventures (DVN, TSX-V) has performed exceedingly well in a challenging market environment over the past couple of months, gaining more than 50% since the beginning of October on a massive increase in volume…the company’s go-to project is in the heart of the Slocan Valley in southeast British Columbia, about 8 miles north of Rainbow Resources‘ Gold Viking Property, where it has inked a deal to acquire the Willa deposit (Au, Cu, Ag) with the intention of fast-tracking production…and DVN isn’t wasting any time in moving forward…the company very quickly closed $2 million in financing at 25 cents last week, and then this morning announced it has added another 1.7 million units ($250,000) to that financing…this is certainly a situation for our readers to watch closely going into 2013…if Rainbow is able to make some sort of a discovery at Gold Viking, this will only add to the growing interest in this area with the possibility of the Willa (which has plenty of mining infrastructure) going into production…below is an updated DVN chart from John…as always, perform your own due diligence…DVN is off a penny at 30 cents as of 6:45 am Pacific…

Cascadero Copper (CCD, TSX-V)

We’ve been keeping a close eye on Cascadero Copper (CCD, TSX-V) in recent months as we’re impressed with the company’s assets in Argentina…a sharp increase in volume is often an early indicator of an impending move, and we’ve seen record volume in CCD recently including two days (Oct. 18 and Nov. 19) when it traded nearly 5 million shares each day…in our view, “smart money” has been loading up on this play which is also evident from private placements the company has recently completed…below is an updated chart 2.5-year weekly chart from John after CCD closed Friday at 14 cents…as always, perform your own due diligence…

Richmont Mines (RIC, TSX)

Not surprisingly, Richmont Mines (RIC, TSX) took a pounding Friday when it announced the closure of its Francoeur Mine and a winding down of exploration at Wasamac…that was investors looking at their rear-view mirrors…in our view the worst is behind Richmont and those tough decisions show that CEO Paul Carmel has the smarts and the boldness to do what’s necessary to move this company forward…Richmont still has two operating mines and it’s book value exceeds $3 a share…below is a chart from John that shows two important support levels – $2.80, and a band between $1.90 and $2.30…the stock closed Friday at $2.82 and is off 4 pennies in early trading this morning at $2.78…

Note: John, Jon and Terry do not hold positions in DVN, CCD or RIC…

Ben’s Friend:  QE IV Is Coming!

By Charles Goyette, Money and Markets

Quantitative Easing III, the much-talked-about “QE-Infinity” initiative announced in September, is still so new that it barely shows up as a blip on a chart of the Federal Reserve’s monetary base.

This $40-billion-a-month, mortgage-backed-securities-buying program is not yet a pimple compared to the metastasized monetary malignancies that were QE I and QE II.

And yet, it looks like QE IV is already on the agenda at the central bank’s monetary policy-making arm, the Federal Open Market Committee. After all, the Fed’s “Operation Twist” — the $45 billion-a-month swapping of short-term securities for longer-term debt — is set to go away at year-end.

As Bush White House economic adviser Lawrence Lindsey said, “At $85 billion a month in purchases, the Fed is buying the entire deficit.”

What would happen if we “just” went back to the Fed buying $40 billion in securities a month? According to the man who many say has a direct pipeline to the inside thinking at the Fed, we might not have a chance to find out.

The Wall Street Journal’s chief economics correspondent, Jon Hilsenrath, is thought by many to have a pretty good pipeline to Ben Bernanke and others at the Fed.

In July — weeks before QE III was announced —Stephen Roach, Yale professor and former chairman of Morgan Stanley Asia, assured Bloomberg TV viewers that it was coming, quipping,

“They [The Fed] have gone about their usual pre-FOMC leak frenzy where they talk to this reporter and that reporter. Jon Hilsenrath is actually the chairman of the Fed. When he writes something in the Wall Street Journal, Bernanke has no choice but to deliver on what he wrote.

“…The point is, when they plant a story in the Wall Street Journal, and this story has been planted. Jon Hilsenrath is the weed that grows … the guy has a perfect track record …”

Now in a Nov. 28 piece headlined, “Fed Stimulus Likely in 2013: Bond Buying Is Expected to Continue in Effort to Spur Slow-Growing Economy,” the Fed’s go-to journalist suggests that the central bank intends to kick its money-printing machinery into overdrive in 2013 with QE IV.

The column can be read to telegraph that a “go” decision could be made at the Fed’s next meeting on Dec. 11-12, with Hilsenrath describing it as a “critical issue” on the agenda for the meeting:

“The most pressing (issue) is whether to move forward with bond-buying programs in which the Fed is accumulating immense stockpiles of long-term mortgage-backed securities and Treasury bonds. The bond-purchase programs are meant to drive down borrowing costs, and in turn boost the prices of assets like stocks and homes, and stimulate hiring, spending and investment.

“The Fed signaled strongly in September that it was inclined to sustain these programs. And markets have anticipated some combination of bond purchases will continue next year. Several Fed policy-makers have suggested in recent interviews and public speeches that they support more bond-buying. At their meeting next month, officials will debate extending the programs and hear staff presentations on their impact.”

That’s pretty definitive in the view of experienced Wall Street hands like Dr. Ed Yardeni, the president of Yardeni Research, who was among the first to correctly identify it as QE IV.

His reaction to the WSJ column noted that, despite the Fiscal Cliff, Washington will continue to run “insane” deficits and that “the Fed and other central banks will continue to enable this insanity by purchasing lots of U.S. Treasuries.”

Consider the historical blow-off inflations from France during the Reign of Terror, to Weimar Germany, and the more-recent episodes in banana republics.

Those who have studied them have often wondered how a little inflation … just a bit of money-printing … only a modest amount of debt monetization … ever gets out of hand and becomes a currency-collapsing event.

In such episodes, it generally turns out that the monetary authorities have believed … until it’s far too late … that they could rein in the destructive forces they unleashed.

They can’t.

Can the Fed Ever Return the Monetary Genie to the Bottle?

The results of money-printing binges can be delayed. A reckoning can sometimes be put off for a while. But it is magical thinking to believe that the Fed can buy $900 billion of toxic mortgage securities from the influential banks and $1 trillion in U.S. government bonds, with money it has created of thin air, and that there will be no economic consequences.

Only in Washington — and in certain Princeton and other academic economic circles — can such fantasies be entertained.

Speaking of Washington, now that we know about the monetary authorities’ magical thinking, what about the fiscal authorities and their fantasies?

I’m sorry to report that they are every bit as dangerously unhinged from reality.

Exhibit A would be Tim Geithner. The Treasury secretary recently appeared on Bloomberg TV urging that the statutory ceiling on federal debt be eliminated entirely.

“The sooner the better,” said Geithner.

Oh, my!

Got gold?

Yours for Wealth and Liberty,

Charles

Source: http://www.moneyandmarkets.com

TSX Venture Exchange and Gold

The Venture was under pressure again last week but managed to hold above the 1200 level and closed Friday at 1221, a 38-point loss for the week.  This is generally a sluggish time of the year at best for the Venture with tax-loss selling pressures and not much in the way of exploration or news.  The situation is compounded this year with the fiscal uncertainties in Washington.  But if one examines the overall trading behavior of the Index since the May-June lows, the action that has occurred since then – including the basing – is a bullish sign going into 2013.  Critical support for the Venture is at 1165, and we’d be very surprised if that doesn’t hold this move.  If it does hold, market psychology could change dramatically just before Christmas with the idea that the low in this cycle has been put in.  The reversal during this fourth quarter in the 1,000-day moving average (SMA) tellus us the low has been put in, and a change in the long-term trend is indeed underway.  Investor patience is key.  Rather than succumbing to mainstream media-inspired fear over the next two to three weeks, with regard to the so-called “Fiscal Cliff” and whatever else these fear-peddlers can dream up, now is when it’s critical as an investor to be unemotional, patient and the look-out for opportunities.  Below is John’s updated chart for the Venture.  The Index started to rebound when it touched 1201 intra-day Wednesday and hit an RSI(2) extreme low.

Gold

It was a strange week for Gold as bullion gave up almost all of its gains from the previous week when it pushed through resistance at $1,740 and climbed above its 50-day SMA.  Gold closed Friday at $1,715, a $37 loss for the week after a $38 gain the week before.  One has to wonder if there weren’t some “market games” being played.  One trader is believed to have sold as many as 15,000 futures contracts (worth 100 ounces each) almost immediately after the opening of the Comex futures market Wednesday morning, leading to a $20+ drop in Gold without any news that would justify such a move.  Rumor has it, a large number of put options were purchased the day before. For the past 17 sessions, Gold has traded between strong support at $1,700 (central bank buying is believed to be underpinning the market at this level) and resistance at $1,760.  This trend may continue for a while longer, but a decisive move in one direction or the other should occur within the next month.  The long-term chart and the underlying fundamentals remain very bullish, so our expectation is for a breakout through $1,800 during Q1 or even before (the mid-December Fed meeting could be critical).  Below is a 6-month daily chart from John.

Silver continues to outperform Gold.  It actually gained 21 cents last week to close at $33.44 (John will have updated short and long-term Silver charts as part of Monday’s Morning Musings).  Copper hit a 5-week high with its biggest weekly gain in more than 2 months (11 cents to $3.62), thanks to bullish demand-supply dynamics and increased confidence that a rebound in China’s economy is well underway.  Crude Oil added 63 cents to $88.91 while the U.S. Dollar Index was relatively unchanged at 80.23.

The “Big Picture” View Of Gold

As Frank Holmes so effectively illustrates at www.usfunds.com, Gold is being driven by both the Fear Trade and the Love Trade.  The transfer of wealth from west to east, and the accumulation of wealth particularly in China and India, is having a huge impact on Gold.

The fundamental case for Gold remains incredibly strong – currency instability and an overall lack of confidence in fiat currencies, governments and world leaders in general, an environment of historically low interest rates and negative real interest rates that won’t end anytime soon (inflation is greater than the nominal interest rate even in parts of the world where rates are increasing), money supply growth, massive government debt from the United States to Europe, central bank buying, flat mine supply, physical demand, investment demand, emerging market growth, geopolitical unrest and conflicts, and inflation concerns…the list goes on.  QE3 has arrived, and massive central bank intervention is now taking place to prevent a breakup of the euro zone and to kick-start the global economy.  It’s hard to imagine Gold not performing well in this environment.

Welcome to our site, or at least the initial version of it!  BMR has been online for three years and strictly through word-of-mouth we have built a loyal following. 

We’re continuing with our plans to ultimately build a very unique investment and money-management resource site that goes considerably beyond what we have now.  While we focus a great deal on the Gold and Silver markets and trends in the global economy, and of course the technical health of the TSX Venture Exchange (CDNX), an important component of this site will always be original research on undiscovered junior exploration companies or small producers, mostly in the Gold and Silver exploration space, that offer very real and significant upside potential. We are extremely selective in the companies we feature and put forward to investors – we prefer quality over quantity.  However, investors must understand that these are still highly speculative situations and entail considerable risk, volatility and unpredictability.  Our stock coverage is for informational and entertainment purposes only and must not be viewed or interpreted as “buy”, “sell” or “hold” recommendations. We are not Registered Securities Advisers. Our opinions can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Adviser operating in accordance with the appropriate regulations in your area of jurisdiction. Always perform your own due diligence and please read our disclaimer at the bottom.

We use a combination of fundamental and technical factors in determining the value and potential of a stock.  In terms of fundamentals we look for a company with a superb project supported by strong management.  Management must possess integrity, solid ethics and a determination to succeed and build shareholder value.

At BullMarketRun (BMR) we approach the handling of money from a biblical perspective and this is an important topic we will be sharing with our readers (and listeners) as the site continues to develop. The Bible teaches so much about money and how to handle it and invest it –  there are literally thousands of verses on how we should handle the money and possessions that God entrusts us with.  By examining the life of Jesus and reading the Word of God, we can all become fully equipped to be successful investors and handle money wisely.  If it’s the other way around –  if you’re a slave to money by being in debt for instance, or if you don’t respect the value of money and spend it foolishly –  you’re in trouble and you’ll never be blessed financially.  We have a God who thinks big – He created the universe – and He wants us to think big  in every area of our lives.  When we handle money from a Biblical perpective (His money that we have been given stewardship of) He will bless our financial decisions and an increase of tenfold or a hundredfold is always possible.  This all begins, of course, with a personal relationship with Jesus Christ by accepting Him as your Lord and Savior and putting Him at the throne of your life.  It is the most important decision you’ll ever make.

God Bless,

Terry Dyer

Owner/Publisher, www.BullMarketRun.com

Disclaimer:

BullMarketRun.com (BMR) is completely independent from any companies it covers.  BMR accepts no compensation of any kind from any groups, individuals or corporations for coverage of any company mentioned on this site.  We accept no advertising either.  Our stock coverage is for informational and entertainment purposes only and must not be viewed or interpreted as “buy”, “sell” or “hold” recommendations. No investment opinion or other advice is being rendered on any stock or company. We strongly recommend that you consult with a qualified investment adviser, one licensed by appropriate regulatory agencies in your legal jurisdiction, and do your own due diligence and research before making any investment decisions. The stocks we cover, by definition, are highly speculative and potentially very volatile. Investors are cautioned that they may lose all or a portion of their investment if they make a purchase or short sale in these speculative stocks.  We are not Registered Securities Advisers. Our opinions can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Adviser operating in accordance with the appropriate regulations in your area of jurisdiction. It should be assumed that BMR personnel, writers and their associates may hold or dispose of or trade in positions in any securities mentioned herein at any time.  Owner/Publisher of BullMarketRun.com is Terry Dyer of Langley, British Columbia.

Forward Looking Statements:

All statements in BMR’s reports, other than statements of historical fact, may be forward-looking statements. These statements relate to future events or future performance. Forward-looking statements are often but not always identified by the use of words such as “seek”, “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “predict”, “potential”, “targeting”, “intend”, “could”, “might”, “should”, “believe” and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements.