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Gold has traded between $1,292 and $1,306 so far today…as of 8:00 am Pacific, bullion is down $10 an ounce at $1,294…along with events in the Ukraine, some of the data Gold investors will plug into this week include the monthly jobs report, first-quarter U.S. GDP and the latest word out of the Federal Reserve which meets tomorrow and Wednesday…Silver is off 21 cents at $19.52 (John has updated Silver charts at the bottom of today’s Morning Musings)…Copper is up a penny at $3.08…Crude Oil is is relatively unchanged at $100.74 while the U.S. Dollar Index is off slightly at 79.69…

China’s Gold imports from Hong Kong dropped in March as local prices fell below the international benchmark in London for the first time in more than a year…net imports totaled 80.6 metric tons last month, compared with 111.4 tons in February and a record 130 tons a year earlier, according to calculations by Bloomberg News based on data from the Hong Kong Census and Statistics Department today…exports to Hong Kong from China rose to 25.3 tons in March from 15.8 tons in February…mainland China doesn’t publish such data…bullion for immediate delivery on the Shanghai Gold Exchange was $1.02 an ounce below the price in London on a monthly average basis in March, the first time that has occurred since September 2012, according to data tracked by Bloomberg…

Keep in mind that China, as Mineweb reported last week, has started to allow Gold imports through its capital Beijing, in a move that would help keep purchases by the world’s top bullion buyer more discreet at a time when it might be boosting official reserves…the opening of a third import point after Shenzhen and Shanghai could also threaten Hong Kong’s pole position in China’s Gold trade, as the mainland can get more of the metal it wants directly rather than through a route (Hong Kong) that discloses how much it is buying…

Rising Chinese Jewelry Consumption

As you can see in the chart below from www.usfunds.com, since 2004 the volume of Gold jewelry consumed in China has tripled…what’s more, China surpassed India as the world’s largest consumer and manufacturer of jewelry in 2013…according to a recent Reuters’ article, Gold jewelry sales in India slowed by 10% since import restrictions were imposed on the country last year – a likely factor placing China in the top spot…

Updated 5-Year Weekly Gold Chart

Below is an updated 5-year weekly Gold chart from John…note the overall rising trend in RSI(14) since late June last year and what could develop as new support around the 50 level…buy pressure is also trending higher…since early 2013, Gold has traded in a horizontal channel essentially between $1,200 and $1,400, so a move outside of that channel would be significant in terms of momentum…the 200-day moving average (SMA) is flattening out after being in decline since the second quarter of last year…there are many reasons to believe (including how the Venture has behaved) that the bottom in Gold was reached last June at just below $1,200…

U.S. Money Supply Growth

More insight from www.usfunds.com…signs that inflation has likely bottomed are now showing up and should stoke inflation expectations in support of Gold…the Federal Reserve’s M2 money supply growth is running at an annualized rate of 7%, a multiple of Gold’s long-term supply growth of around 2% annually…similarly, U.S. bank loans have accelerated to levels not seen since 2007, with commercial and industrial loans rising at a 16.1% rate over the past 18 weeks…similarly, average hourly earnings for American workers now run consistently above a 2% annual growth rate…

Today’s Equity Markets

Asia

China’s Shanghai Composite fell for the fourth straight session, losing 33 points overnight to close at 2003…that’s the lowest level on the Shanghai since March 20…President Xi Jinping stated Friday that current fiscal and monetary policy would remain unchanged, according to state media reports…

Europe

European shares were up moderately today, boosted by M&A activity, but bullish sentiment was kept in check due to ongoing concerns regarding Ukraine…

North America

The Dow has gained 115 points through the first 90 minutes of trading…the TSX is 14 points higher while the Venture is flat at 1014 after touching a high in early trading of 1021…

Heating Up In Mexico:  Garibaldi Resources Corp. (GGI, TSX-V) Update

Two “Perfect Storms” are now brewing for Garibaldi Resources Corp. (GGI, TSX-V), one in Mexico where drilling continues and the other in the Sheslay Valley, northwest B.C., where a very “pregnant” Cu-Au porphyry district could soon attract national attention…no wonder the Garibaldi multi-year chart is looking so attractive…the fundamentals are quickly lining up, especially after the news regarding La Patilla at the end of last week…

It’s important to remember that in Mexico, GGI has a track record of delivering value for shareholders…in 2009, GGI sold its Temoris option in a significant deal that has allowed the company not to have to carry out a financing since that time…few companies on the Venture can lay claim to the fact that they haven’t diluted their stock in the last five years…that’s a hugely important factor for Garibaldi and its shareholders entering this summer given the intense market activity that could easily emerge over the Sheslay Valley (not to mention Mexico)…there is little paper “overhang” that can hold GGI back on one or more catalysts…

As most readers know, we just recently returned from a Sheslay area visit…the scale and potential of this district are truly enormous…we’ve seen it from the air and the ground…the Sheslay district is breathtaking in its scope and we believe it’s going to produce the most exciting area play British Columbia has witnessed in many years, perhaps since the days of Eskay Creek…we continue to compile information for special report coverage in May…every company in the area offers something unique and exciting…Garibaldi’s distinct advantage (besides share structure) is that it controls more than half of the mineralized “corridor” identified to date as it begins to ramp up toward first-ever drilling…

In the meantime, things are getting HOT for GGI in Mexico…

Drilling Discovery At La Patilla – 10.4 g/t Au over 8.5 m in LP-14

When a Gold property is drilled for the first time, and returns thick intercepts of mineralization near-surface including some high-grade, this demands attention…five holes out of six “hit” within 40-50 meters of surface in first-pass drilling at the La Patilla vein system, and the intercepts closely approximate true width (important) along a strike length of 75 meters…one can easily see how a modest deposit, but potentially quite significant for a junior such as Garibaldi, could come together at La Patilla if the next phase of drilling builds on the tonnage that is already evident…

Besides LP-14, other intercepts included 38.9 m @ 0.8 g/t Au (LP-03); 31.6 m @ 0.8 g/t Au (LP-10); 13.7 m @ 0.9 g/t Au (LP-02); and 10.8 m @ 1.9 g/t Au (LP-12)…these results represent a highly encouraging start for Garibaldi at La Patilla…they have something to build on and an important trail to follow…

Is there a deeper, even higher-grade source for this near-surface mineralization?…that’s an unanswered question at the moment but Garibaldi is anxious to find out…that’s one reason why La Patilla is being quickly moved along to the Phase 2 drill stage (Rodadero and Iris are also being drilled for the first time, Rodadero right now)…

Based on these initial results, with first-pass metallurgical testing now in progress, Garibaldi is clearly on track with its goals for La Patilla but market expectations will be higher for the next phase…keep in mind that this property features easy access and relatively flat terrain at low elevations and is surrounded by excellent infrastructure in an established mining district…Garibaldi has also negotiated a long-term agreement with the local community to allow for any potential future metal extraction on the property by the company…

A drilling discovery has been confirmed at La Patilla…this appears to be a stockwork vein system and it’s currently open in all directions for expansion…between developments in both Mexico and the Sheslay Valley, there is now some serious action in GGI that’s likely going to continue non-stop for the foreseeable future…as always, perform your own due diligence…

GGI Updated Chart

This 10-year monthly GGI chart is really quite phenomenal as it paints the “Big Picture” so clearly…RSI(14) is climbing an uptrend and at 53% has plenty of room to move higher…note the uptrend support line on the chart and the now-rising 500-day SMA (the MA-17 on this chart)…while past results are no guarantee of future performance, the last time GGI’s 500-day reversed to the upside, the stock ran from current levels to a high of nearly 60 cents in early 2011… the ADX indicator shows a bullish main trend in place since the middle of last year…GGI is half a penny higher at 17 cents as of 8:00 am Pacific…

Doubleview Capital Corp. (DBV, TSX-V) Updated Chart

Important support held on the recent pullback in Doubleview Capital (DBV, TSX-V) – much of that weakness attributed to warrant selling pressure as DBV pulled the trigger on an acceleration clause related to warrants issued in December 2012 (those warrants have now either been exercised or have expired)…the stock firmed up at the end of last week and is trying to hold at or above the 50-day SMA at 24 cents…a very strong support band exists between 15 and 20 cents while there is measured Fib. resistance at 34 cents…the overbought RSI(14) condition that persisted for a couple of months through the early part of March has largely unwound…DBV is off half a penny at 24 cents as of 8:00 am Pacific…

TNR Gold Corp. (TNR, TSX-V)

Readers may wish to perform due diligence on TNR Gold Corp. (TNR, TSX-V) as John has spotted some interesting technical behavior…for whatever reason, there has been growing accumulation in this play since late last year with the stock basing in a channel between 2.5 cents and 4 cents…RSI(14) is climbing an uptrend and is above 50…what potentially could occur here, given the technical clues, is a breakout above the downsloping channel in place since late 2012/early 2013…a short-term trading strategy for some investors would be to accumulate below the downsloping channel and then sell on the breakout…in any event, it’s an interesting chart…TNR closed Friday at 4 cents…

Silver Short-Term Chart Update

Importantly, Silver found support last week below just below $19 at the top of the downtrend line as predicted…RSI(2) became quite oversold and has since recovered to 31%…Silver’s support band ranges from $17.50 to $19.50 while the next major chart resistance is $22…

Silver Long-Term Chart Update

This 11-year monthly chart confirms that the metal has exceptional support just below $20…sell pressure has been dominant since early last year but is weak…if and when Silver breaks above the main downtrend line, watch out (there are two downtrend lines to take note of)…RSI(2) has unwound from above 80% to 37%…

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