Gold has traded between $1,284 and $1,296 so far today, and confirmation of a technical breakout through the $1,270’s appears likely…as of 7:45 am Pacific, bullion is up $3 an ounce at $1,294…Silver has added 11 cents to $20.35 ($20.50 is important resistance)…Copper is up 3 pennies at $3.26…Crude Oil has surged another $1.05 a barrel to $100.99 thanks to strong trade data out of China…the U.S. Dollar Index, meanwhile, is up modestly at 80.73…
India’s trade deficit has narrowed, raising optimism that authorities may relax bullion import restrictions, which would be supportive for Gold…India’s trade deficit narrowed to $9.9 billion in January from $10.1 billion in December…HSBC stated, “According to Reuters, the trade ministry has recommended an easing of the curbs placed on Gold imports given the rosier trade balance. If the authorities are less concerned with the economic ramification of a lower trade and current-account deficit, then it is possible that India’s trade restrictions on Gold imports will eventually be tempered or the tariff reduced, (and) then the increase in demand would be bullish for Gold, in our view.”
UBS analyst Joni Teves describes China’s physical demand for Gold since the Lunar New Year holiday as “robust” and surprisingly strong…“While historical seasonal patterns imply a slowdown post the Chinese New Year, interest this week seems to suggest otherwise,” she said. “Volumes on the Shanghai Gold Exchange were very strong Monday at 31 tons and this was corroborated by the demand we saw based on our own flows.” Turnover yesterday was lower at 19 tons, she added, while the premium fell to $8 from $10 the last couple of business days…
Today’s Markets
Asia
China’s Shanghai Composite gained 6 points overnight to close at 2110…the country’s exports jumped unexpectedly in January, a potentially positive sign for the world’s second-largest economy even though there are always some doubts about the reliability of data out of China…exports rose 10.6% compared with January last year, up from a 4.3% year-over-year rise in December…this is well ahead of the median 0.1% growth forecast by 11 economists polled by The Wall Street Journal and suggests a gradual recovery of demand in western economies is helping to boost China’s trade…exports to the European Union were up by more than 10%…that seems logical given improving conditions in the EU…
Europe
European shares are in positive territory in late trading overseas…the latest forecasts from the Bank of England (BOE) show that the British economy is poised to expand much faster than officials previously thought…the central bank now forecasts that the U.K. economy will grow by 3.4% this year, much quicker than the 2.8% forecast in November…the BOE also says it expects upcoming data will show the unemployment rate in the U.K. fell to 7% in January, more than two years earlier than officials predicted in August…in its quarterly inflation report, the BOE stepped away from tying a rise in its benchmark interest rate to progress on unemployment…
North America
The Dow is down 29 points as of 7:45 am Pacific…in testimony yesterday before a House Committee, Janet Yellen promised overall to press ahead with the policies of her predecessor as Fed chief, Ben Bernanke…“Let me emphasize,” she said, “I expect a great deal of continuity in the (Fed’s) approach to monetary policy. I served on the committee as we formulated our current policy strategy and I strongly support that strategy.”
House Republicans Cave In, U.S. Debt Ceiling Going Higher
The House yesterday approved a bill to extend the federal government’s borrowing authority with no strings attached, after Republican leaders dropped all policy demands to avoid a market-rattling confrontation in an election year…the measure, which would suspend the debt limit and allow the government to borrow until March 16, 2015, marked a retreat from efforts by House Speaker John Boehner to require any debt-ceiling increase to be paired with spending cuts of equal size or with other conservative policy demands – many of which were pushed by the Tea Party…the vote was 221 to 201, with 199 Republicans breaking with Boehner to oppose the debt-ceiling increase…only two Democrats voted against the bill…the Senate is expected to pass the measure, but the timing is unclear…by avoiding a cliff-hanging debt fight, Boehner’s strategy may advance a central Republican political goal ahead of the midterm elections: to keep the public focused on the disaster of Obamacare…
The TSX has climbed 55 points as of 7:45 am Pacific while the Venture – on the verge of a confirmed technical breakout which could come today – has added 4 points to 984…volume shot up significantly yesterday and is strong again this morning, though that is due in part to activity in Renegade Petroleum Ltd. (RPL, TSX-V) and Alexander Energy Ltd. (ALX, TSX-V) which have announced a merger…Castle Mountain Mining Company Ltd. (CMM, TSX-V), which John featured with a chart January 20 when it trading in the 60’s, has hit a multi-year high of 95 cents during the first 75 minutes of trading today…
The 5 Most Shorted TSX Gold Stocks
Five Gold stocks were among the top 20 shorted TSX companies based on data as of January 31 – Osisko Mining Corp. (OSK, TSX, 43 million shares shorted), Kinross Gold Corp. (K, TSX, 38.5 million), New Gold Inc. (NGD, TSX, 37.3 million), Detour Gold Corp. (DGC, TSX, 26 million) and Yamana Gold Inc. (YRI, TSX, 22.6 million)…all stocks are up since the end of January with Detour (up 28%) and Kinross (up 15%) jumping the most…some short-covering has likely been occurring…
Paramount Gold & Silver Corp. (PZG, TSX)
Though it’s off slightly in early trading today, pausing after three straight days of advances, a confirmed technical breakout has occurred in Paramount Gold & Silver (PZG, TSX & AMEX) which may have significant implications for Garibaldi Resources Corp. (GGI, TSX) which held 1.8 million PZG shares as per its latest quarterly financials ending October 31…what’s driving Paramount is not only firmer Gold and Silver prices, but high grades recently reported from continued diamond drilling at its San Miguel Project in northern Mexico…
The Don Ese area, which forms part of the Temoris option that GGI advanced and then sold to Paramount several years ago, is now returning grades that are well in excess of what the Don Ese resource model predicted…the latest results included infill drill hole DS-13-040 that intersected 23.9 metres grading 5 g/t Au and 336 g/t Ag including individual intercepts up to 59 g/t Au and 2,793 g/t Ag (over 80 oz/ton)…meanwhile, step-out hole DS-13-42, drilled about 140 metres downdip from DS-13-040, returned 24.3 metres of 4.82 g/t Au and 312 g/t Ag…drilling continues…
On John’s 2-year weekly chart using trading on the AMEX, you can see how PZG has now broken out of a downtrend line in place since 2012…confirmation of this breakout occurred yesterday as PZG closed at $1.39 on the AMEX ($1.52 on the TSX)…the next chart resistance after $1.40 on the AMEX is $1.90…
Venture Updated Chart
A long-awaited confirmed technical breakout by the Venture could come as early as today (will depend of course on the close) with the Index now beginning to gain traction on increased volume above importance resistance…this 6-month chart says it all – shaping up to be a strong finish to the week with a confirmed breakout very likely in our view in the coming days…
Cordoba Minerals Corp. (CDB, TSX-V) Begins Drilling At San Matias Project
Keep an eye on Simon Ridgway’s Cordoba Minerals (CDB, TSX-V) which reported this morning that it has mobilized a RAB (rotary air blast) drill rig at its Montiel prospect within the company’s San Matias Project in Cordoba, Colombia, where previously reported diamond drilling included 101.1 m grading 1% Cu and 0.65 g/t Au (2.37 g/t AuEq)…Cordoba has signed a binding agreement to consolidate the 260 sq. km San Matias project, with closing anticipated in the near future…the Montiel prospect is composed of a large (more than 1 km in diameter) and robust Copper/Gold in-soil anomaly, associated with a cluster of outcropping mineralized porphyry Cu-Au intrusive centres…extensive shallow artisanal mining activity and associated alluvial Gold mining is sourced from the Montiel porphyry cluster…as of 7:45 am Pacific, CDB is down a penny at 59 cents…
Doubleview Capital Corp. (DBV, TSX-V) Update
Later today, BMR will be interviewing Doubleview Capital Corp. (DBV, TSX-V) consulting geologist Erik Ostensoe in preparation for Part 2 later this week in our continuing series of reports on DBV and its recent drilling discovery at the Hat Property in the Sheslay Valley…Ostensoe and Tom Lisle, P.Eng., acquired their Hat land position in 1994 and finally decided to option it in 2011 to Doubleview…in a NI-43-101 Technical Report dated February 27, 2012, Ostensoe wrote, “The 2011 program of MMI soil geochemical sampling and analyses confirms previous observations that the Hat Property is highly prospective for the discovery of one or more important mineral zones possibly including (1) a porphyry-style Copper-Gold deposit, (2) an epithermal Gold-multi-metal deposit and (3) a shear-hosted Gold deposit.”
DBV is unchanged at 24 cents in early trading today – there is strong Fib. support at 23 cents…
Garibaldi Resources Corp. (GGI, TSX-V) Updated Chart
John’s latest Garibaldi Resources Corp. (GGI, TSX-V) chart shows increasing buy pressure and a growing likelihood of an immediate to near-term test of Fib. resistance at 24 cents…after 24 cents, the next Fib. resistance is at 35 cents…not shown on this chart is the 1,000-day moving average (SMA) at 17.5 cents which appears poised to reverse to the upside in the very near future after being in decline since late 2008…that would be a highly significant technical development, suggesting that 2014 indeed could be a banner year for GGI…
GoldQuest Mining Corp. (GQC, TSX-V)
We expect 2014 to be a strong year for GoldQuest Mining Corp. (GQC, TSX-V) which has ample cash to ramp up exploration at some very prospective areas in the vicinity of its Romero discovery and deposit (Romero and Romero South) in the Dominican Republic…GQC has pushed above its 200-day moving average (SMA) for the first time since late 2012 with the 200-day now beginning to reverse to the upside, so an important turnaround is definitely underway here…below is a 2.5-year chart from John showing that weak buy pressure has replaced sell pressure which had been been dominant since late 2012…there is a resistance band between 40 and 48 cents…GoldQuest has a history of sudden and explosive moves – it wouldn’t be surprising to see another one at some point in 2014 as drill results come in…
Note: John and Jon both hold share positions in GGI. Jon also holds a share position in DBV.
“there are always some doubts about the reliability of data out of China…” Yes , you are right – as for the US, we all know that their published statistics are certainly not worth a dime anymore.
Comment by LHM — February 12, 2014 @ 8:25 am
BMR – To keep the public focus on the disaster of Obamacare…
Bert – I have read & heard of many ordinary folks, who are thankful
for Obamcare. Finally they have the same chance as the rich, that
is to ensure they remain healthy, by taking care of their health
problems. I would never repeat i would never, side with the Insurance companies, who, if they had their way, would never ever provide care
for the weak & the poorest amongst us. God help those who find it
difficult to help themselves. That brings us back to the markets,
most of those large companies are driven by the borrom line, to ensure
those, who have invested, are looked after, shame !!!
Comment by Bert — February 12, 2014 @ 8:33 am
Bert a healthy business climate is good for all . profits mean more taxes are being paid ,more are working investors get rewarded for the risk they take . Profit is not a four letter word Business expands more materials are needed good for mining and forestry etc
Comment by gil — February 12, 2014 @ 12:23 pm
Gil
I agree with your line of thinking, that is, if the poor are looked
after. I am tiring of reading/hearing from those, who are anti Obama,
no matter what. I would never vote for PM Harper, but i am willing
to give him credit, where credit is due. R !
Comment by Bert — February 12, 2014 @ 1:13 pm
Starcore is sitting right at the breakout level now, took above average volume last 2 days.
Comment by Justin — February 12, 2014 @ 4:16 pm
Gil
I responded to your post, but it appears that it may have
been deemed unsuitable, not that it contained anything
negative towards you, but for the subject at hand, i didn’t
guard my words. Anyway, to make this post a post & for
information purposes, please be advised that Agoracom has
a hub on GGI & presented an interesting interview, which
i listened to tonight. After removing my headset i quietly
whispered, i want my shares back. Good night ! R !
Comment by Bert — February 12, 2014 @ 6:46 pm
Bob Moriarty sees it as it is, the truth on Obamacare
”
TGR: How have they done that?
BM: First, people can’t save money. If you save money at 0.25%, you’re insane; inflation robs you of your real wealth. Second, taxes have increased. There are something like 48 separate taxes in Obamacare that have nothing to do with healthcare.
The Affordable Care Act, Obamacare, is the nail in the coffin of the middle class. It is a giant payoff to the insurance companies. The insurance companies are protected under law. They are allowed to collude and do things no other industry can. As a result, the U.S. has one of the least effective healthcare systems in the world and the most expensive. We need to burn the healthcare system down and start all over again. The insurance companies have the American public’s throats in a death grip and they’re killing us.”
Comment by Greg — February 12, 2014 @ 10:49 pm
Gotta love Bob…
Comment by Greg J. — February 13, 2014 @ 12:07 am
I solemnly swear, that in the future, i will not respond to any
comments, regarding American politics. My aim is to use this board,
to try to help others & hopefully, others will help me take money
from the market to be transferred to my account. I made one other
promise already. After bringing a stock forward several times, i made
a promise that i would not bring it forward again, until it is taken
out, we are getting there. Commodities & in fact, the overall market,
seems to be under some pressure this morning. Although Gold & the
Venture was up yesterday, it seemed that we were in the doldrums
again. Although i have sold half my position in GGI, just to cover
myself, i do believe in the company. Not that they will eventually
have a mine, but how determined they will be tell their story as
they move along. I notice there are several story tellers carrying
them already. Have a good day. R !
Comment by Bert — February 13, 2014 @ 4:37 am
Bert, who are the story tellers you are referring to, and regards to the potential takeover stock you promised yourself… iam very curious,could you at least give me the first letter of its trading symbol,…would it be I.. Thanks, buddy!!!
Comment by Greg J. — February 13, 2014 @ 11:48 am