Gold has traded between $1,573 and $1,589 so far today…as of 5:55 am Pacific, the yellow metal is unchanged at at $1,577…Silver is 6 cents lower at $28.60…Copper is flat at $3.55…Crude Oil is 30 cents higher at $93.14 while the U.S. Dollar Index is up slightly at 81.43 after briefly touching 81.50…
Investors need to keep a close eye on the Dollar Index as it tests resistance around 81.50…this is an important “awareness issue”…the weekly chart of the Dollar Index shows a long-term head and shoulders reversal pattern which has developed over the past 12 months as you can see in John’s chart below…the left shoulder developed in January, 2012…the head developed last summer (July)…the right shoulder developed in November…the neckline of the pattern connects the March 2012 low, the September 2012 low and the late January/early February low…this head and shoulder pattern is invalidated by a sustained rally and move above 81.5 which the Index is quickly approaching…Gold and the Dollar Index don’t always move in tandem but often do…equity markets also tend to fare better when the Index is struggling…a break below the neckline could precipitate a major tumble in the Index…
Mixed Signals From The Fed
The Federal Reserve’s “very aggressive” easy money policy is going to stay that way for a “long time,” St. Louis Fed President James Bullard told CNBC this morning…”This is a monetary policy that packs a punch,” said Bullard, who’s a voting member on the Federal Open Market Committee (FOMC)…uncertainty about the future of the central bank’s bond buying program has weighed on the stock market and Gold in recent days…on Wednesday, the FOMC released minutes of its January meeting, which said “many participants” expressed concerns about “potential costs and risks arising from further asset purchases”…
Today’s Markets
Asian markets were mixed overnight…China’s Shanghai Composite fell 12 points to 2314…European shares are up significantly this morning as markets there got a boost from a better than expected reading of Germany’s business sentiment…stock index futures as of 6:00 am Pacific are pointing toward a strong opening on Wall Street…
The Venture Exchange fell as low as 1124 intra-day yesterday (4 points above support) but rebounded to close up 3 points for the day at 1134…on the daily chart, RSI(14) and the CMF (Chaiken Money Flow) hit their lowest points Wednesday since May, so a relief rally at the very least appears to be in the cards…
GoldQuest Mining (GQC, TSX-V)
GoldQuest Mining (GQC, TSX-V) reported fresh results this morning – assays from 3 new holes – from its Romero discovery in the Dominican Republic…the best intersection was 138 metres grading 1.0 g/t Au and 0.20% Cu from 134 to 272 metres in LTP-123 (infill hole at Romero North)…this included a 68-metre interval grading 1.76 g/t Au and 0.23% Cu…LTP-122 tested the area between the Romero North and South trends and returned 99 metres grading 0.41 g/t Au and 0.12% Cu while LTP-124 (eastern end of Romero North) included a 48-metre interval grading 1.21 g/t Au and 1.02% Cu…GoldQuest stated these are the last results from the phase of drilling targeting the shallow Induced Polarization (“IP”) interpretation that discovered the Romero mineralization…future drilling will be guided by new, ongoing deep geophysical data…
Probe Mines (PRB, TSX-V)
Amazingly, Probe Mines (PRB, TSX-V) declined for 9 consecutive sessions (it found support just above its rising 200-day moving average) before rebounding yesterday on more positive drill results from its Borden Lake Property which continue to improve grade in the southeast…PRB climbed 21 cents yesterday to close at $1.75…below is an updated 6-month daily chart from John…as always, perform your own due diligence…
Zenyatta Ventures (ZEN, TSX-V) Updated Chart
Note: John., Jon and Terry do not hold positions in GQC, PRB or ZEN.
Does the market know anything about RBW that we at BMR do not know?
Comment by Alexandre — February 22, 2013 @ 8:33 am
Gold starting to bottom here IMHO, could get to 1525 but I think this wash-out is done, Euro printing presses heating up.
Comment by Hugh — February 22, 2013 @ 8:43 am
lol,ya body language,how about a cartoon with johnston lying on the floor in the fetel position and a wack of investors standind around him in a circle with edward sissorhands in the backround,,sorry bmr but i just couldn’t help myself..i know its not a nice thing to say but im trying to stay upbeat,i hope rainbow is not going to wait till march at the shack show to release news on gold viking,unless there has been some big mistake,keep positive folks,i know im trying very hard to and i know its tough,dont panic……
Comment by tom — February 22, 2013 @ 9:06 am
IAm surprised that there was no interest in the stock I was researching check out feb 14 posting probably one of the lowest risk junior mining stocks with a good upside potential Has cash flow low p.e. great land holdings 12 million in the bank up 70 percent in 2012 when most stocks down 50 percent or more good projected growth very low stock count
Comment by gil — February 22, 2013 @ 1:32 pm
A VERY INTERESTING STOCK TO WATCH ON MONDAY IS BGMZF BGM CAME OUR WITH A REPORT SEVERAL MONTHS AGO STATING THAT THEY HAD DISCOVERED 10 MILLION OUNCES OF HIGH GRADE GOLD ON THERE PROPERTY AND THE POTENTIAL OF UP TO 90 MILLION OUNCES STILL TO BE DISCOVERED THIS WOULD MAKE IT ONE OF THE LARGEST MINES IN THE WORLD THE CTO THOUGHT THIS WAS JUST TO GOOD TO BE TRUE AND PUT A CEASE TRADE ON BGM .BGM WAS FORCED TO BRING IN ANOTHER COMPANY TO VERIFY THE RESULTS THE RESULTS ARE STILL PENDING BUT MAY BE OUT VERY SOON.BGMZF IS TRADING IN THE US BUT WE CANT TRADE IT .IT WAS UP 39 PERCENT TODAY PLUS ANOTHER 11 PERCENT AFTER HOURS.IF THE NUMBERS COME OUT GOOD IT MAY TAKE A WHILE FOR THE CEASE TRADE TO BE LIFTED FOR THOSE WHO WANT TO GET EARLY MAY WANT TO CONSIDER BUYING LG WHICH OWNS A MILLION SHARES OF BGM OR GCC.H WHICH OWNS 2 MILLION OF BGM
Comment by gil — February 22, 2013 @ 5:11 pm
V.LG
Comment by gil — February 22, 2013 @ 5:25 pm
SORRY THE ABOVE POST SHOULD READ THE B.C.SECURITIES COMMISSION DID NOT BELIEVE THE RESULTS AND PLACED A CTO ON BGM
Comment by gil — February 22, 2013 @ 7:27 pm
Gil I gave u the benefit of the doubt up till now but your spam is getting rediculous. 90 million ounces!! Why stop there? Why don’t you say they have 500 billion ounces!! By far the funniest post iv ever read here. Bravo my friend, when it comes to over the top far fetched nonsense you have win first prize. Can’t wait to hear your next yarn, very entertaining indeed
Comment by Heath — February 23, 2013 @ 8:01 pm
MY FRIEND HEATH PLEASE GOOGLE BARKERVILLE 90 MILLION OUNCES AND SEE WHAT COMES UP .PLEASE LET ME KNOW WHAT YOU FIND.I TRY NOT TO SPAM OLNY THE FACTS I DID SAY THE RESULTS SEEMED TO BE TO GOOD TO BE TRUE.NO HUMOUR INTENDED IN MY LAST POST
Comment by gil — February 23, 2013 @ 10:16 pm
@heath 90 million oz. was what speculation put it.Who is to say at this point. They are actually pouring gold bars at one of the sites. This is a vast area and prbably holds quite a lot of gold it is a question of infil drilling. check ou tthe website of ian gordon, an alalyst shareholder, believer. I own cariboo gold shares. just for a pssible trade. I also bought more rbw on thurs. gold will go up, the banks need it and Geo. Soros has shorted the euro. He sold a lot of his gold hldings awhile back, shorted the japanese yen and made 2 billion dollars. The last time that he shorted the euro, gold climbed to a high of $88approx. there is creditable speculation that his action years ago caused the spike in gold. Richard L
Comment by richard l — February 23, 2013 @ 10:18 pm
What’s everyone complaining about with RBW? A few weeks ago BMR said that the near-term follow-up drilling creates “sweet spot” conditions for investors. So things got a little sweeter than expected is that any reason to be so sourer?
Comment by Rick — February 24, 2013 @ 9:01 am
Sorry for the dis-jointed blog. Gold was in the 800 area not \\\488 after soros. i would expect, finally, some news out of RBW this coming week. richard l
Comment by richard l — February 24, 2013 @ 9:14 am
Gold Mines (BGM:CVE) much anticipated 43-101 technical report, made available late Monday night, shows the total potential of the Island-Cow-Barkerville Mountain Trend containing up 40 to 90 million ounces of gold.
Comment by gil — February 24, 2013 @ 8:27 pm
SORRY IAM NOT GOOD AT COPY AND PASTING THE LAST POST IS PART OF A NEWS REPORT MADE SEVERAL MONTHS AGO
Comment by gil — February 24, 2013 @ 8:33 pm
@Rick
I believe there are many who entered rbw somewhere between .20-.25. My average is 0.195. And I feel those. It’s not fun to see your investment decline 40-60%. That’s why I think some are frustrated. Let´s hope this is a “sweet spot” as you say and that it has bottomed out.
Comment by Kalkan - Sweden — February 25, 2013 @ 1:19 am