Gold is threatening to push through resistance around $1,275…as of 7:50 am Pacific, bullion is up $9 an ounce at $1,276…Silver is 18 cents higher at $20.18 (John has new Silver charts below)…Copper is off a penny at $3.25…Crude Oil is up 11 cents at $99.99 while the U.S. Dollar Index has slipped more than one-tenth of a point to 80.62…
Reuters reported this morning that China’s Gold consumption jumped 41% in 2013 to exceed 1,000 tonnes for the first time, according to the China Gold Association, as a sharp slide in prices attracted buyers for jewellery and bullion…the demand surge has helped China become the No. 1 Gold consumer and should support prices, which took a hit last year from expectations of a tapering of commodities-friendly economic stimulus by the Federal Reserve and a drop in demand from the other major buyer, India, due to government-imposed curbs…Gold consumption in China grew to 1,176.40 tonnes last year, with jewellery demand climbing 43% to 716.50 tonnes and bullion demand soaring 57% to 375.73 tonnes…
HSBC commodity analysts: “The reopen of China’s markets after being closed in celebration of Lunar New Year since 31 January is an encouraging sign for the bullion markets and may help support Gold prices,” said commodity analysts at HSBC. “The pick-up in emerging market demand, most notably from China, in reaction to cheaper bullion prices for 2013 was one of the most significant factors to providing a floor of support for Gold.”
Mexican pension funds have shown fresh interest in Gold after certain investment regulations were lifted, according to the World Gold Council…the WGC has been in contact with fund managers representing nearly $160 billion in assets, who have demonstrated interest in Gold investments now that Mexican legislation allows pension funds to invest in Gold and commodities…
Gold 10-Year Monthly Chart
We posted a bullish 9-month daily Gold chart yesterday as part of our Week In Review that shows bullion has an excellent opportunity to stage an immediate or near-term confirmed breakout through important resistance at $1,275…this morning, John provides a longer-term picture of Gold that is also very encouraging…
In this 10-year monthly chart, Gold has interestingly broken above an RSI(14) downtrend line – typically a bullish development…you can see the double bottom pattern which coincides with very strong Fib. support at the 38.2% retrace level…
Today’s Markets
Asia
China’s Shanghai Composite surged to a one-month high overnight, climbing 42 points to close at 2086…Japan’s Nikkei average rose 256 points to 14718…
Europe
European markets are mixed n late trading overseas…French President Francois Hollande begins his state visit to the U.S. today…
North America
The Dow is off 56 points as of 7:50 am Pacific at 15794…new Fed Chair Janet Yellen gets her first big test tomorrow before the House Financial Services Committee in a hearing ostensibly about monetary policy, but in reality about whatever members feel like discussing…she testifies again, before the Senate Banking Committee, on Wednesday…the House hearing will be Yellen’s first major public comments since taking over from Ben Bernanke and will undoubtedly draw extensive media coverage.
The TSX is up 18 points as of 7:50 am Pacific…Bank of Canada senior deputy governor Tiff Macklem gave a lecture at Concordia University’s John Molson School of Business in Montreal Friday, speaking about “good” and “bad” disinflation…rising competition in the retail sector is an example of “good” disinflation…however, continued slack in the economy is an example of “bad” disinflation, he said…“With inflation persistently below target, we are more concerned about downside risks to inflation than upside ones,” he said…and of course it’s not just Canada that’s suffering from low inflation…Macklem said inflation has fallen by 1.5% in advanced economies during the last two years…he added that consumer prices in Canada are hovering around 1%, below the central bank’s target of 2%…
The Venture is up 2 points at 964 through the first 80 minutes of trading…
Venture Updated Charts
John has two fresh charts this morning on the Venture and both are painting quite a bullish picture…
The “Golden Cross”
Several readers and even Frank Holmes of U.S. Global Investors have commented on the Venture’s “Golden Cross” with the 50-day moving average (SMA) pushing above the 200-day (the last time we saw such a move was in late 2010 and that coincided with a powerful advance in the Index)…
Not every “Golden Cross” is necessarily bullish, but this one has to be considered bullish as it is confirmed by other indicators including a +DI/-DI crossover as shown below…
Venture 3-Year Weekly Chart
Below is John’s regular Monday morning updated 3-year weekly Venture chart…notice how the RSI(14) appears to have found support at the 50% level…strong accumulation in this market continues…
Probe Mines Ltd. (PRB, TSX-V) Drills 39 m of 16.3 g/t Au (Infill Hole) at Borden Lake, Ice Drilling Program Commences For HGZ Expansion
More great results from Probe Mines Ltd. (PRB, TSX-V) as 10 new Borden Lake infill holes were reported this morning…they continue to show the remarkable consistency of the high-grade zone (HGZ) with significant intersections of thick Gold mineralization…hole BL14-573 returned a 19.4-m interval grading 31.6 g/t Au with an even broader mineralized envelope of 39 m averaging 16.3 g/t Au…the importance of this intersection is further enhanced by its location – only 150 metres from the furthest drilled section of the deposit to the southeast, suggesting that the system is still very robust and has considerable potential for expansion…ice drilling on Borden Lake has commenced with four rigs…as of 7:50 am Pacific, PRB is up 31 cents at $2.88…
Oroco Resource Corp. (OCO, TSX-V)
Oroco Resource Corp. (OCO, TSX-V) enjoyed a big day Friday, climbing 7.5 cents to 11 cents on volume of nearly 20 million shares after winning a final court ruling in Mexico which secures its 100% ownership of the Xochipala Property along a prolific trend…technically, watch for a potential test of support around 7.5 cents, but the trend with this play has clearly changed – so keep a close eye on OCO…below is a 2.5-year weekly chart from John…OCO is off a penny at 10 cents as of 7:50 am Pacific…
Global Met Coal Corp. (GMZ, TSX-V) Updated Chart
Significant news recently from Global Met Coal Corp. (GMZ, TSX-V) which has, among other things, received its final permit for the Black Creek metallurgical coal project from the Alabama Department of Environmental Management…as promised, below is an updated GMZ chart from John – looking good, but GMZ needs to clear resistance at a nickel…
Silver Short-Term Chart
Silver’s immediate challenge is to overcome resistance around $20.50…
Silver Long-Term Chart
RSI(2) on the long-term chart certainly has room to move higher – it hasn’t been in overbought territory since last summer…
Note: Jon holds share positions in PRB and GMZ.
Darwin Resources up 35% to 13.5c…went as high as 15c….news imminent.
Comment by John BMR — February 10, 2014 @ 8:24 am
Looks like Bob Moriarty also into this play in BC: 321gold.com/editorials/moriarty/moriarty021014.html
Comment by STEVEN1 — February 10, 2014 @ 8:45 am
Just the beginning, I think Steven. Moriarty has covered GGI in the past and I have a hunch he’s going to like what he sees in the Sheslay Valley.
Comment by Jon - BMR — February 10, 2014 @ 8:48 am
Mike Swanson article: http://wallstreetwindow.com/node/9474
Comment by STEVEN1 — February 10, 2014 @ 9:22 am
Oh, before I head out, TSX Venture up almost 6 pts to 968 almost! Here we go again with that ‘970’ level! This time?
Comment by STEVEN1 — February 10, 2014 @ 9:48 am
Jon , i asked Al Korelin a couple of months ago to ask Bob if he was involved, covering, etc. GGI.? No!!
Comment by Greg J. — February 10, 2014 @ 10:18 am
I remember that, and that was then. What I do foresee happening over the next several months are some high-profile individuals on the newsletter scene getting onto the Sheslay story, not just GGI but others too. There is some interesting “chatter” at the moment.
Comment by Jon - BMR — February 10, 2014 @ 10:32 am
Jon, i thought the Sheslay would have have caught the attention of Kaiser,Jay Taylor,McCoach,Cook, etc.etc!!These guys are asleep,IMO. Kudos to you guys at BMR
Comment by Greg J. — February 10, 2014 @ 12:14 pm
They will wake up, Greg, but I’m actually hoping it won’t all happen at once, that it’s spread out. These are great accumulation levels for DBV, GGI and PGX, ABR and some others perhaps too before the masses start jumping in and the high profile newsletter guys climb on board.
Comment by Jon - BMR — February 10, 2014 @ 12:21 pm
Another half decent day on the Venture. Some of my predictions
didn’t quite work out, but KAM did, up 0.07. I notice Raymond
James, on Feb 03/14., gave a target price of $1.50 &
that pleases me. I sold a few more of GGI today, i just can’t
seem to hold onto possible winners, but it takes guys like me,
to give guys like you, a chance to buy shares of GGI @ 0.23….. R !
Comment by Bert — February 10, 2014 @ 1:55 pm
Bert, profits are a good thing!! ” Guys like you”?? Bought my position months ago..have not added and have not sold.
Comment by Greg J. — February 10, 2014 @ 2:37 pm
GregJ
Way to go Greg ! I may never know if i made a good move or not by
selling. Being an active trader, i keep forgetting which stock i put
my new money in. If the truth has to be known, it hurts if i find that
after i sell, a stock goes up, but that’s part of life isn’t it… R !
Comment by Bert — February 10, 2014 @ 3:50 pm
What bugs me about GGI, is how long it takes to release drilling results. If they are not so good, release them anyway and get on with it- talking about mexico drilling Yes, the Sheslay will be and is their flagship property so I don’t see a big SP movement until the drills are on the ground on that property. Potential is huge on the Sheslay.
Comment by Dan — February 10, 2014 @ 5:25 pm
Good news so far tonight, after 2 hours of trading, Gold is up $8.80.
If it continues, Gold will have the momentum to continue over $1,300.00
in short order. Friends ! everything seems to be coming together. R !
Comment by Bert — February 10, 2014 @ 5:33 pm
Shorts should be getting very nervous about right now. Short positions in Gold are still very high, so this could get explosive in a hurry.
Comment by Jon - BMR — February 10, 2014 @ 6:23 pm
Good morning everyone. Should be another good day
on the markets, Gold over $10.00, now trading $1,285.00,
as it ploughed through resistance & hopefully, on its way
to $1,300.00, plus….As long as i have one stock trading
up i am okay & as it happens, i have more than one. Anyone,
who have completed due dilligence on KAM, would know it’s
in the Yukon & may i add, one of the better parts of the
Yukon, as a mighty river flows past it’s property & drilling
can be completed much earlier than most parts of the territory.
They have completed a 43-101, which in itself is an expensive
move & i do feel they will eventually be taken over, but
realizing my make up, i doubt if i will hang around for that
long, time will tell. By the way, not only is Gold shining so
far this morning, but the futures are up & the European markets
are all in the green. I realize things can change, but for now
it pleases me. R !
Comment by Bert — February 11, 2014 @ 4:42 am
1/2 an hour before market opens & Gold has dropped
off on Ms. Yellins testimony. She stated that she
will continue Bernanke’s policy. Gold now up $5.00,
but i feel it will continue up again later. Overall,
we should have another good day as some stocks slowly
but surely move up. R !
Comment by Bert — February 11, 2014 @ 6:07 am
We’ll see if we get a test now of $1,275…
Comment by Jon - BMR — February 11, 2014 @ 6:11 am
seems we got the test.. so far… the cdnx HAS SORTA CONFIRMED ITSELF AS A LEADING INDICATOR AGAIN.. SO FAR… sorry:) volumes, golden cross, adx line, and Bert… what a winning combo!!:)
Comment by Jeremy — February 11, 2014 @ 6:42 am