Gold is taking a hit on this morning on a better-than-expected U.S. jobs report that could either help get President Obama re-elected, or a month from now could just as easily surprise to the downside…as of 8:40 am Pacific, bullion is off $31 an ounce to $1,684…Silver has retreated 93 cents to $31.33…Copper is down a nickel to $3.50…Crude Oil is off $1.70 to $85.39 while the U.S. Dollar Index has broken through some resistance, shooting up to 80.53, its highest level in 7 weeks…however, as we’ve pointed out previously, the Index faces a very stiff resistance band between 81 and 81.50…physical buying, short covering and technical support levels should limit Gold’s downside from current levels, so the drop this morning is not a concern for us…traditionally, this is also Gold’s best month of the year…the Fibonacci support levels are 1670 and 1646…
Entering today (perhaps a bearish contrarian indicator), Gold traders were the most bullish in 10 weeks and investors were hoarding a record amount of bullion as central banks pledge to do more to spur economic growth…18 of 27 analysts surveyed by Bloomberg through yesterday expected prices to rise next week and five were bearish…a further four were neutral, making the proportion of bulls the highest since August 24…holdings in Gold-backed exchanged-traded products gained the past three months, the best run since August 2011 according to data compiled by Bloomberg…they reached a record 2,588.4 metric tons yesterday, valued at $142.1 billion…
The Bank of Japan expanded its asset-purchase program earlier this week for the second time in two months, increasing it by 11 trillion yen ($137 billion)…the Federal Reserve said last week it plans to continue buying bonds and central banks from Europe to China have pledged more action to boost economies…Gold rose 70% as the Fed bought $2.3 trillion of debt in two rounds of quantitative easing from December 2008 through June 2011…
With the U.S. elections on Tuesday, precious metal trader Sharps Pixley notes the current market chatter is that Gold prices may react negatively to a Mitt Romney presidential win and vice versa to a Barack Obama win…regardless of who wins, the firm says, “most analysts seem to think the longer-term fundamentals of negative real interest rates, global stimulus and the debasing of fiat currencies will be supportive of Gold price”…
U.S. Non-Farm Payrolls Climb 171,000
U.S. employers added 171,000 jobs in October while the unemployment rate inched up to 7.9%, according to the Labor Department this morning…economists polled by Thomson Reuters expected non-farm payrolls to rise by 125,000, an increase on September’s 114,000 gain…
Today’s Markets
Asian markets were higher overnight with China’s Shanghai Composite gaining 13 points to 1217 (see chart below)…European shares were mixed today while North American markets are off marginally across the board…as of 8:40 am Pacific, the Dow is down 27 points while the Venture Exchange is off 9 points at 1312…
Venture Exchange – Interesting Technical Developments
Yes, the Venture is down this morning but we continue to see some very encouraging technical signs...in fact, the Index as of closing yesterday (1321) was just slightly above a down trendline that has been in place since early 2011…we’ll see how the market holds up today and performs over the next several days, but the two charts below are interesting indeed…the fact the Venture is not getting hammered this morning in the face of a significant drop in Gold strongly suggests we’re in a different type of market now with the Venture, and it begins with a big capital “B” for bullish…patience is required, however, and support from 1250 to 1300 is very strong…a firm breakout above the down trendline on increased volume would be a strong clue that the Index is ready to move significantly higher…
CDNX – U.S. Dollar Index 5-Year Comparison
CDNX – Gold-CRB 2.5-Year Weekly Comparison
SantaCruz Silver Mining (SCZ, TSX-V)
A company certainly worthy of our readers’ due diligence is SantaCruz Mining (SCZ, TSX-V) which we like as it’s aiming to become a mid-tier Silver producer within the next 3 to 4 years…John likes it a lot right now from a technical perspective as SCZ is showing a classic bullish continuation pattern along with a “cup-and-handle”…SCZ closed at $2.39 yesterday and is down just a penny in early trading today…
Corvus Gold (KOR, TSX) Closes Financing
Corvus Gold Inc. (KOR, TSX) reported this morning that it has closed its $3.5 million financing announced in mid-October (3,250,000 shares at $1.07 per share)…the majority of the financing was taken by large existing shareholders such as Haywood Securities Inc. Chairman John Tognetti, Apogee Global Advisors, Inc. and Equity Management Associates as well as two individual investors…Corvus is set to complete a Phase I feasibility study as it continues to rapidly advance the high-grade exploration on its North Bullfrog project…the company’s February 2012 Preliminary Economic Assessment indicates the potential for an attractive new Nevada mining operation at North Bullfrog with excellent infrastructure in one of the best mining jurisdictions in the world…the stock closed yesterday at $1.65 and is currently down a nickel…
Temex Resources Corp. (TME, TSX-V)
Temex Resources (TME, TSX-V), which just recently completed an $8.3 million financing, continues to work hard at advancing an impressive portfolio of projects in the Gold belt of northeastern Ontario…it has made a nice move since the May-June period when the Venture, in our view, finally found a bottom…below is an updated 2.5-year weekly chart from John…the stock has excellent support around 27 cents as John shows, and that also coincides with the rising 50-day moving average (SMA)…the rising 100-day SMA is at 24 cents which would be the next major support level…this is an interesting opportunity, especially on any kind of a pullback…as of 8:40 am Pacific, TME is down 2 pennies at 28 cents…
Northern Gold Mining (NGM, TSX)
Another northeastern Ontario situation worthy of watching closely is Northern Gold Mining (NGM, TSX) which we’ve mentioned here before…a cup-and-handle pattern is being formed with NGM, so some minor additional weakness is possible over the near-term as the “handle” takes shape…as of 8:40 am Pacific, NGM is off half a penny at 37 cents…
Note: John, Jon and Terry do not hold positions in SCZ, TME, KOR or NGM…
db – already did, thanks. On ael im talking bout.
Comment by dave — November 2, 2012 @ 7:47 am
BMR – November is already looking atrocious – gold has wasted no time to tank $40, all major indices bleeding, incl. CDNX over 1%. And all this comes after “positive” news is released – hmmm headscratcher wouldn’t you say. Unless I’m missing something glaring, there are no catalysts that will drive gold prices higher. QE3 has proven to be nothing but a head fake – take a look at ATC, RIC GPR etc… they are all spitting distance from htting their 52-week lows – all of them.
As for the ventures, I can’t imagine what could drive it higher outside of colossal discoveries by juniors, something we see once every few months at best these days – that’s just a bad gamble I’m sure you can agree.
Too bad I’m tied into our very promising RBW venture play – can’t wait to get out to be honest but with a grand total volume of 0 today, this is going nowhere fast unless they make a significant discovery!! Scary stuff…
Comment by alex — November 2, 2012 @ 11:08 am
What’s going on with RBW and zero volume??? bad news coming perhaps?? Jon? you seem offly quiet right now…any thoughts?
Comment by Bill — November 2, 2012 @ 11:22 am
Bill, your comment is a little strange. There’s lots going on, everyone is waiting for news, and it seems RBW has 2 drill programs going at the same time at the moment with Gold Viking and Jewel Ridge. So what do you want me to say? The stock was quiet today with 44,000 shares traded but held steady at 22 cents and was up a penny for the week. Chart looks very good with tremendous support, so based on that I hardly think there’s “bad” news coming. Quite the contrary perhaps. This is a company that’s extremely active with some excellent projects, and not hiding its head in the sand during a challenging market environment like so many other companies. Great chance for a discovery. The “truth machine” will tell the tale.
Comment by Jon - BMR — November 2, 2012 @ 12:10 pm
gils portfolio down 13.65 percent from oct 1 starting date of portfolio I will be missing from action for a few days Iam going to have a operation and will be in the hospital Will return in about a week if the LORD is willing
Comment by gil — November 2, 2012 @ 12:29 pm
Low volume on RBW today. Everyone is sitting on the sidelines waiting for next week’s news. Here’s to hoping it is good. We all could use it I’m sure. It’s been a long wait.
Comment by Bev — November 2, 2012 @ 1:30 pm
God speed Gil
Comment by Jeremy — November 2, 2012 @ 3:02 pm
Next week some good news from rbw would be nice. I have a small position in a brewery stock. RB.V .05cents per share, a pie in the sky gamble. They have hooked up with a rep in China to sell their beer in Asia. Not sure but think that these shares came on the market at $1.00can. Time will tell. I like the nevada stocks, kor,bar, rbw etc. richard l
Comment by richard l — November 2, 2012 @ 3:24 pm
My sixth sense report card for this week:
————– Forecast ————————————–Actual————————————————–
RBW.. Low 21 cents High 55 cents, Close at 49 cents ** Low 20 cents, High 22.5 cents, Close 22 cents … still waiting
GQC.. Low $0.79, High $0.92, Close at $0.83 ———- Low 67 cents, High 90 cents, Close 79 cents … declining state
GBB.. Low 10 cents, High 12 cents, Close at 12 cents ** Low 10 cents, High 12 cents, Close 11 cents … still weak
EVR.. Low 7.5 cents, High 8.5 cents, Close at 8 cents .. Low 6.5 cents, High 8 cents, Close 7 cents … can be ignored
SFF.. Low 14 cents, High 15.5 cents, Close at 15.5 cents ** Low 13 cents, High 14.5 cents, Close 14 cents … will go up
SF .. Low 2 cents, High 2 cents, Close at 2 cents ** Low 1 cent, High 1.5 cents, Close 1.5 cents … hold on
TYP.. Low 15 cents, High 17 cents, Close at 17 cents** Low 14 cents, High 17 cents, Close 14.5 cents … scoop at 15 cents
NAR.. Low 4 cents, High 4.5 cents, Close at 4 cents ** Low 3.5 cents, High 4.5 cents, Close 4 cents … scoop at 4 cents
** hold a portfolio
Comment by Theodore — November 2, 2012 @ 4:13 pm
Hopefully RBW management is keeping their mouths shut on the drill results, whether they are good or bad, I think that would show alot of credibility in my eyes, regardless of the outcome. When you think about it most of these venture stocks always seem to have volume one way or another before the news comes out. I hope RBW news is really good and surprises everyone to the upside, with no notice in volume before they release it. That would say alot about RBW management imo.
Comment by GREG — November 2, 2012 @ 5:35 pm
Any idea what MR. Johnston is giving out for Halloween this year. Will it be pieces of silver laden rock or is he going the Charlie Brown route and giving out lumps of coal? Comment by Paul
While I Still don’t know for sure what our Mr Johnston was up to this Halloween I couldn’t help but wonder could it have been…..nah
While accompanying a young one this Halloween we came upon an elderly gentleman checking his mailbox.On the mailbox read the name D. Johnston with no middle initial.
Upon seeing us the grey bearded gentleman quickly scampered up the porch and into his home. Even with us hot on his heels he still managed to enter the house and shut the door before we could formally introduce our incognito selves.
After rapping profusely and not so gently on his chamber door and thinking the man must be no more the door opened, a man appeared only minus the grey beard. Even though dressed better than the elderly gentleman I judged him to be the servant. He said his name was Pierre and seemed quite eager to be of assistance.
When asked how he might help us young one retorted “trick or treat smell my feet give me something good to eat”. Pierre said he was sorry but all candy had already been given away and that having worked for his current employer for many months he had become accustomed to smelly feet.
Perhaps influenced by the sad look on young ones grotesquely made up face Pierre said he had something that was sweeter than candy.
Pierre left and soon returned with a silver colored object about the size of a bowling ball. the object appeared to be quite heavy as Pierre struggled to place it in young ones bag of treats. The heaviness becoming apparent the moment it left Pierre’s fingertips as the object tore through young ones candy sack and made a large hole as it went through the floor of the porch. As we walked away I thought to myself ‘poor young one such a tender age to have experienced that empty kind of feeling one gets in the pit of their tummy after they have just become ….A BAG HOLDER’.
Comment by Rick — November 2, 2012 @ 6:11 pm
@Greg … I am raising my sell price of RBW… not 55 cents anymore… 70 cents…
Comment by Theodore — November 2, 2012 @ 6:42 pm