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Gold has traded between $1,280 and $1,291 so far today…as of 7:00 am Pacific, bullion is up $1 an ounce at $1,288…Silver is flat at $20.74…Copper is down a penny at $3.16…Crude Oil is up slightly to $94.15 while the U.S. Dollar Index has fallen one-quarter of a point to 80.82 as it continues to have trouble with the 81 level…

Incoming Federal Reserve Chairman Janet Yellen on Gold during yesterday’s Senate confirmation hearings…“I don’t think anybody has a very good model of what makes Gold prices go up or down.  But, certainly, it is an asset that people want to hold when they are very fearful about (a) potential financial-market catastrophe or economic troubles and tail risks. And, when there is financial-market turbulence, often we see Gold prices rise as we see people flee into it.”

Yellen got it right about the “fear trade” but of course there’s the critical “love trade” component of Gold that is resulting in a huge shift in Gold holdings from western countries to eastern countries as pointed out in the latest quarterly report issued by the World Gold Council…this year’s Gold sell-off has moved bullion from weak hands into strong hands, and that has to be considered very bullish…Asians are generally long-term holders and have entirely different thinking regarding Gold than most North Americans…

Yellen signaled her determination yesterday to use bond buying to strengthen the economy and drive down the nation’s 7.3% unemployment rate, so don’t expect any Fed “tapering” until perhaps well into 2014…testifying before the Senate Banking Committee as U.S. equity hit new record highs, she sought to dispel concerns from senators that the central bank’s policy is pumping up the values of equities and housing to such an extent that it jeopardizes market stability…

“I don’t see evidence at this point, in major sectors of asset prices, misalignments,” she said yesterday…“Although there is limited evidence of reach for yield, we don’t see a broad buildup in leverage, where the development of risks that I think at this stage poses a risk to financial stability.”

At some point down the road – who know when that might be – one can’t help but think that this unprecedented intervention and money-printing by the Fed is going to end very, very badly, and that’s when Gold may take off in a parabolic move that will make the 2011 run seem like a tea party…

Today’s Markets

Asia

Asian equities rallied for a second straight session overnight as investors cheered comments from Yellen that U.S. monetary stimulus would remain in place for now…Japan’s Nikkei average closed above the 15000 level for the first time since May 23, surging 290 points or nearly 2% to finish the week at 15166…state media in China just reported a short while ago that the country will ease its decades-old “one-child” family planning policy as part of sweeping reforms agreed at the Communist Party’s Third Plenum meeting earlier this week…while a preliminary summary of the meeting released on Tuesday was vague, the more-detailed document just released sketches an ambitious reform program designed to address problems that China faces: maturing growth, rising worries about a wide wealth gap and endemic pollution, and increasingly vocal criticism of Beijing’s handling of a number of social issues…“More attention also needs to be paid to employment, income levels, social security and people’s health,” the document said…

Europe

European shares are slightly higher in late trading…the annual rate of inflation in the 28-member European Union fell to its lowest level in 4 years during October, adding to fears the bloc could be in danger of entering a damaging and prolonged period of falling prices…the EU’s official statistics agency said today that consumer prices rose 0.9% in the 12 months to October, a lower annual rate of inflation than the 1.3% recorded in September, and the lowest since October, 2009…

North America

In North America, the Dow has gained another 38 points as of 7:00 am Pacific as it approaches 16000…the TSX is up 37 points while the Venture is unchanged at 932 after posting a refreshing 6-point gain yesterday…

Probe Mines Ltd. (PRB, TSX-V) Update

Probe Mines (PRB, TSX-V) looks like it’s going to finish the year on a very positive note…we started sounding the alarm last spring regarding Probe when it fell to nearly $1 a share during the panic sell-off in Gold stocks…since then, Probe has doubled in value and assay results from an on-going drill program continue to show growth in the overall system at Borden Lake including the high-grade extension to the southeast of the original bulk tonnage deposit…last week, the company clinched the 2013 Ontario Prospector Award for its discovery at Borden, located near Chapleau, Ontario, about 160 km southwest of Timmins…according to the OPA, the Borden Lake deposit is unique in that it lies within the Kapuskasing Structural Zone, an area previously thought to be too high in metamorphic grade to contain significant Gold mineralization…however, Probe’s geologists persisted…

Below is an updated 2.5-year weekly PRB chart from John…significantly, the stock has broken above resistance this week at $2.20…through the first 30 minutes of trading today, PRB is up a nickel at $2.34…

Garibaldi Resources Corp. (GGI, TSX-V) Update

Garibaldi Resources (GGI, TSX-V) has certain dynamics going for it – beyond just the outstanding potential of the Grizzly Property in the Sheslay Valley – that make this company stand out among the crowd of struggling juniors at the moment…not only is GGI expected to drill 2 properties before year-end – a situation that could ignite this stock at any point – but with a few million dollars in working capital, the company is in the very fortunate position of not having to worry about raising money anytime soon…in addition, it’s generating monthly royalty income from a pilot coal program at the Tonichi Project where drilling is also currently following up on a very interesting Au-Cu intercept in the last hole completed at the Locust target…GGI also has high-grade Gold and Silver opportunities elsewhere in Mexico…they’ve been busy prioritizing targets over a massive 1,000 sq. km land package…having its own drill rig also helps GGI carry out exploration very cost-effectively in Mexico…

Technically, the “big picture” remains so very positive with GGI despite the recent mild pullback in the share price…the rising 200-day moving average at 9 cents is providing strong support…a +DI/-DI crossover in the ADX indicator occurred mid-year which is very positive…sell pressure that was dominant from early 2011 has turned into buy pressure which could intensify substantially in the coming months given the fundamentals on the ground…GGI is in that category of 10% of Venture companies that is exceedingly well-run and actually doing something at the moment…below is a 10-year GGI monthly chart from John…

A lot of Venture companies’ share prices are hurting due to cheap financing stock that’s entering the market as investors dump PP paper and simply “ride” the warrants…GGI doesn’t have that problem as they haven’t carried out a major financing in nearly 5 years…

Fission Uranium Inc. (FCU, TSX-V) Updated Chart

Important support has held the last few weeks, and Fission Uranium (FCU, TSX-V) is now clearly regaining technical momentum…strong fundamentals and improving technicals make for a good mix…below is a 6-month daily chart from John…FCU is up 3 pennies at $1.15 as of 7:00 am Pacific…

Arianne Phosphate Inc. (DAN, TSX-V) Update

Like with Fission, we see a good possibility of a bigger fish swallowing Arianne Phosphate (DAN, TSX-V) sometime in 2014 given the feasibility study it released just recently on its Lac a Paul Project in Quebec…the economics are strong with an IRR of 20.7% and an initial payback period of 4.4 years (26-year mine life) before taxes and mining duties…the all-in cost on board the ship in the Port of Saguenay is estimated at $93.70 per tonne life of mine (that is, FOB Port of Saguenay) yielding an operating margin of 56% with an average selling price of $213 per tonne at the port…as always, perform your own due diligence…

Technically, DAN staged an important breakout recently above a horizontal channel (the top of which was around $1.45) that had been in place since late 2011…DAN is up a penny at $1.55 as of 7:00 am Pacific…

Alix Resources Corp. (AIX, TSX-V) Update

It has been an interesting week for Alix Resources Corp. (AIX, TSX-V) which appears to be the first junior exploration company to try to tap into the bitcoin market…how this is all going to play out is anyone’s guess, but President and CEO Mike England has clearly caught the imagination of some investors and the skepticism of others…AIX was halted late yesterday, pending news…John’s 4-year weekly chart shows the potential for a substantial move if AIX can overcome resistance at 5 cents…it’s a waiting game now for more news to see how this starts to unfold…

Note: John and Jon both hold share positions in GGI.