Gold has traded in a range between $1,304 and $1,315 so far today after yesterday’s sharp move to the upside thanks in part to short-covering, a weaker U.S. Dollar Index, and encouraging economic data of out China…a close today above this week’s high of $1,320 would certainly set a bullish tone entering next week…as of 6:55 am Pacific, bullion is off $3 an ounce at $1,309…Silver, which closed at a 2-week high yesterday, has gained another nickel to $20.30…Copper, which staged an important move yesterday through resistance above an ascending triangle at $3.20, is up another 3 cents at $3.27…we’ll see how Copper finishes today – confirmation of yesterday’s rally is required – and we’ll possibly have an updated chart over the weekend or Monday at the latest…Copper’s June high was $3.41 and could be ready to test that level in the near future…Crude Oil has gained $1.34 a barrel to $104.76 while the U.S. Dollar Index is up slightly at 81.12…
June figures for South Africa, released by the government yesterday, show that Gold production in that country continues to fall – it was down 14% year-on-year in June 2012, and is now only South Africa’s 4th most important mined metal by value, having been overtaken by iron ore…coal remains the most important metal or mineral by sales value, followed by platinum…
Tracking the Euro Chart For Insights Into Gold
The euro has been trading in a horizontal channel since February between 127.5 and 134…over the last 5 sessions it has moved from the bottom of the channel to the top, and is also facing resistance from a down trendline, as you can see in John’s 2-year weekly chart…the reason we’re presenting this chart is that the euro is at a decisive point, and it’s correlation with Gold has been increasing…a breakout about the horizontal channel and the down trendline would be very significant for the euro, and potentially for Gold as well if the correlation continues…the euro is off very slight at the moment at 1.3355…RSI(14) has bounced off support 3 times and is showing up momentum…next week should be interesting…
More Encouraging Economic Data Out of China: Power Production Stages Biggest Jump In 2.5 Years
China’s economy appears to have stabilized amid fears that one of the world’s most important growth engines is close to stalling…a series of small targeted measures from Chinese policy makers in recent months seems to have at least temporarily reversed a growth slowdown, if we can trust the numbers, with factory production, investment and real estate construction all picking up in July, according to official data released today…this is after encouraging export/import statistics yesterday…most economists had expected the July figures to show stabilization in the world’s second-largest economy, which has decelerated in 9 of the past 10 quarters, but some numbers surprised on the upside, suggesting fears of an imminent collapse are unfounded…the composition of the mild rebound, however, appears to rely heavily on construction and investment and undermines Beijing’s stated goal of rebalancing the economy more towards consumption and services…
Industrial production at large enterprises, a closely watched measure that usually tracks China’s gross domestic product, increased 9.7% from a year earlier in July, sharply up from 8.9% growth in June and the fastest pace since February…the unexpectedly strong performance was driven mostly by rebounding production of steel, cement, power and nonferrous metals, underscoring the fact that China’s growth remains disproportionately reliant on credit-fuelled infrastructure and property construction…in contrast, growth in retail sales slipped slightly in July, increasing 13.2% from a year earlier compared with 13.3% growth in June…fixed asset investment, a key driver of China’s investment-led economy, stabilized in July with a 20.1% rise in the first 7 months from a year earlier, the same pace as in the 6 months to the end of June, following 4 consecutive months of deceleration…growth in real estate investment sped up in July, jumping 20.5% in the first 7 months, compared with 20.3 per cent growth in the first 6 months…power production, another closely watched indicator, increased 8.1% in July from a year earlier, up from 6% growth in June and the fastest increase since December 2011…On a less bright note, consumer prices were unchanged from the previous month and producer prices fell at an annual rate of 2.3%…
Today’s Markets
China’s Shanghai Composite gained 7 points overnight to close at 2052…Japan’s Nikkei average was virtually unchanged to finish the week at 13616…European shares are mixed in late trading overseas…
In New York, the Dow is down 16 points through the first 30 minutes after snapping a 3-day slide yesterday…the Dow and S&P 500 have not fallen 4 sessions in a row all year…a total of 28 companies have raised $5.2bn from U.S. initial public offerings since July, which marks the fastest rate of activity and amount raised in the same period since 2007, according to data from Dealogic…a further further 6 companies are looking to price deals and begin trading by the end of this week…IPO’s this year have gained an average of 13.2% on their first day of public trading and are up on average just over 30% from their listing price, Dealogic said…new listing activity has been most prolific around the biotechnology sector, which has seen companies raising money at the fastest rate since the dotcom boom amid a wave of growing investor interest…
In Toronto, the TSX is off 23 points as of 6:55 am Pacific…Canada’s labor market continued to exhibit signs of weakness last month as the economy shed a surprisingly high 39,400 net jobs nationally, with public sector workers and youth taking on the biggest share of the losses…not surprisingly, Quebec suffered the highest number of job losses (30,400) while Alberta posted the largest gain…overall, Canada’s unemployment rate edged up slightly to 7.2%…the Venture is off a point at 914 in early trading…
TSX Chart Update
Could a big move be coming in the TSX?…there are indications of that, based on John’s chart below…the TSX found support this week in the immediate vicinity of its rising 200 and 300-day moving averages, and at the Fibonacci 61.8% level before yesterday’s 140-point jump…Fib. analysis gives a target of 13319 which of course would mean an important breakout above significant resistance at 12900…
TMX Group released its July trading statistics yesterday…TSX trading volume rose 10% to 6.3 billion shares last month, up from 5.7 billion in July of last year…the dollar value of trading also rose, to $98.5 billion from $87.2-billion in July 2012…volume on the Venture rose as well to 2.8 billion shares, up from 2.5 billion the year earlier…the dollar value of trading, however, dropped significantly to $847-million, down from $1.2-billion in July 2012 which reflects the 25% drop in the Index since then…Alpha trading slipped hard, handling only 1.2 billion shares, a 46% drop from July 2012…when it comes to listings, the TSX welcomed 8 in July, bringing its 2013 total to 61, down from 77 at this time last year…the Venture welcomed 5 new listings, bringing its 2013 total to 44, down from 107 last year…around half the 1,800 or so juniors on the Venture have less than $200,000 in working capital, according to Kaiser Research…
Fission Uranium (FCU, TSX-V) Updated Chart
Looking very good, as simple as that…results of 4 more holes were released yesterday from Patterson Lake South, and Fission Uranium (FCU, TSX-V) climbed as high as $1.06 intra-day before closing at $1.01 on heavy volume of more than 6 million shares (all exchanges) while partner Alpha Minerals (AMW, TSX-V) added 4 pennies to $5.50…
If and when resistance on FCU is overcome at $1.10, the next Fib. level is $1.38…that’s not a price target, just a level for guidance and our readers’ due diligence based on Fib. theory and analysis…as of 6:55 am Pacific, FCU is up a penny at $1.02…
Copper Fox Minerals (CUU, TSX-V)
With exploration interest in parts of B.C. on the upswing, we’ve been keeping a close eye on Copper Fox Minerals (CUU, TSX-V) and watched with interest as it suddenly jumped from the 50’s into the 80’s on strong volume July 17 when the company announced a revamped JV with Teck Resources (TCK. B, TSX) on the massive Schaft Creek Project in the northwestern part of the province, 100 km southeast of Prosper Gold’s (PGX.H, TSX-V) Sheslay Project and Garibaldi Resources‘ (GGI, TSX-V) Grizzly Property…
We weren’t interested in chasing CUU in the 80’s but patiently waited for a potential re-test of support after that sudden spike higher, which is exactly what has occurred…CUU appears to be forming a base between 49 and 53 cents as John outlines in a 6-month daily chart below…a Phase 1, 10,000-metre drill program aimed at increasing the value of the Schaft Creek Project was slated to begin by the end of July…as of 6:55 am Pacific, CUU is down a penny at 49 cents…
Note: John, Terry and Jon do not hold share positions in FCU or CUU.
Colorado Resources to drill 5,000 m at North Rok already 2 months and nothing pretty much means they found nothing
sell
Comment by bob — August 9, 2013 @ 10:37 am
Bob, your conclusion could prove to be correct (who knows, the drill rig is the truth machine), but your REASON for coming to that conclusion is INCORRECT.
Colorado gave the market guidance when this 2nd phase of drilling started in June that the market shouldn’t expect the first batch of assays until sometime in August. So the fact we haven’t seen assays up to this point doesn’t concern me at all, as CXO is still well within the guidance window. It was important for Colorado to get the market away from the idea of expecting results 1, 2 or 3 holes at a time, especially when you’re drilling a porphyry deposit and sometimes you’re just going to miss and hit a barren hole. In the last couple of years of its drilling at Red Chris, 25% of Imperial Metals’ holes returned insignificant values. But of course they’ve got a major resource and robust economics with that project which is going into production next year. So the best strategy is to try to release results in batches of 6 to 8 or so, and then you can provide investors with some proper perspective. It’s going to take hundreds of holes for CXO to drill this thing off and come up with a final resource. These are the very early stages. Personally, given the excellent targets they’ve been drilling into (based on geophysics and soil sampling), I’m expecting good results from this round of drilling and perhaps a couple of holes that are really outstanding. We’ll see. And next week might be the time. After a couple months of hard work, I’m sure they’re starting to learn a lot more about North ROK now and will soon be able to provide investors with a much better appreciation of the potential of this discovery.
Comment by Jon - BMR — August 9, 2013 @ 6:30 pm
where was the aug news reported don’t see it in any news releases
Comment by bob — August 10, 2013 @ 6:34 am
Bob, it is still August….August 10th today….sometime in August, as per their guidance, expect a North ROK update from CXO…I know that results can never come fast enough for investors, who are often impatient…I remember, back in the hey days of late 2010, everyone assumed Seafield had poor results from Miraflores because it was taking so long for assays to come out – in fact, in that case, it went beyond the window of guidance they had provided….then, of course, in early December 2010, they came out with a very strong hole and the stock rocketed from about 20 cents to 80 cents in one day on 100+ million shares…..typically, in this industry, good news travels fast, bad news travels by carrier pigeon…but we’re also in the kind of market right now where companies – at least the smart ones, and admittedly that’s a minority – are very careful about putting out news and want to make sure that when they do put it out, it’s going to be meaningful and hopefully exceed expectations…..in the case of CXO, it’s very reasonable to give them a couple of months since they started Phase 2 drilling in June in order to accumulate data and start to put the pieces of this puzzle together properly for investors….there’s an incredible amount of work involved here….I’m very excited about the prospects for North ROK….I expect them to be able to show they are advancing this system very nicely, even if they do report a couple of dud holes which should be expected and certainly not out of character with how things progressed at the Red Chris…
Comment by Jon - BMR — August 10, 2013 @ 6:47 am
Gents,
Found this News release on Garibaldi’s website. Found no info whether or not Equinox has completed their commitments. My hope is that the property reverted back to Garibaldi. Any intel?
March 18, 2009
Garibaldi Deals Grizzly Claims to Equinox and Adds New Director
Grizzly Property
Garibaldi Resources Corp. (“Garibaldi”), is pleased to announce that it has entered into an option agreement with Equinox Exploration Corp. (formerly Consolidated Dencam Development Corporation) (“Equinox”) whereby Equinox can acquire up to a 70% interest in the Garibaldi””s Grizzly Property (the “Property”) consisting of 51 mineral claims covering approximately 15,500 hectares located in the Telegraph Creek area of British Columbia. The Grizzly Property is an early stage Alkalic copper/gold porphyry target similar to Nova Gold””s Galore Creek deposit 120 kilometres to the south.
The agreement provides for Equinox to earn a 50% interest in the Property by completing $300,000 of expenditures on the Property by February 26, 2012, of which $100,000 must be incurred by February 26, 2010. Upon earning a 50% interest, Equinox has been granted a second option to earn an additional 20% interest in the Property by issuing 1,000,000 common shares in its capital to Garibaldi and completing a further $700,000 in expenditures on the Property by February 26, 2013. On Equinox earning an interest in the Property, the parties have agreed to enter into a joint venture for the further exploration and development of the Property. The agreement is subject to acceptance for filing by the TSX Venture Exchange.
With Garibaldi””s extensive property holdings, management is now well positioned to continue to add value and increase deal flow with generative transactions.
Additional Director
Garibaldi is also pleased to announce that Rafael Hinojosa, Operations Manager, Mexico, was appointed a director of Garibaldi at the last Annual General Meeting. Mr. Hinojosa joined Garibaldi Resources in 2007. He obtained a Bachelor Degree in Business Administration from the Tecnológico de Monterrey in Monterrey, México. He is a corporate administrator with experience in management and development of start-up companies in México, his native country. Mr. Hinojosa is responsible for overseeing all administrative activities related to exploration undertaken on Garibaldi””s projects in the Sierra Madre Region of México.
GARIBALDI RESOURCES CORP.
per: “Steve Regoci” Steve Regoci, President
Comment by Joe Hrupp — August 10, 2013 @ 1:27 pm
Joe, I can assure you, Grizzly is 100% Garibaldi owned. Equinox did a minor amount of work a few years ago, though some of it was important, and then they picked up their own projects elsewhere as they got their company going after the QT. They didn’t fulfill their commitment to earn an interest. Check Sedar filings and other info, including technical reports, for your own confirmation.
Comment by Jon - BMR — August 10, 2013 @ 3:09 pm
Thank for the feedback and info Jon.
Comment by Joe Hrupp — August 11, 2013 @ 8:15 pm