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Gold has traded between $1,214 and $1,229 so far today…as of 8:30 am Pacific, bullion is down $8 an ounce at $1,217…Silver is off 54 cents at $17.98…Copper is flat at $3.12…Crude Oil is $1.09 a barrel lower at $91.98 while the U.S. Dollar Index is up nearly half a point to 84.70 en route to its 10th straight weekly advance…strong resistance exists around 85 on the Dollar Index, so a pullback from temporarily overbought conditions can be expected soon…

Bullion’s decline has kept its 14-day RSI(14) below 30 for 9 straight days, signaling oversold conditions and the growing likelihood of a near-term rebound…there are also signs of a pick-up in demand from China…volumes for the benchmark spot contract on the Shanghai Gold Exchange this week averaged nearly 50% more than the average this year, the latest data show…

The launch of the Shanghai Gold Exchange’s international bourse with yuan-denominated contracts this week is the first in a slew of bullion contracts expected in Asia, including Singapore and Hong Kong, before the end of the year as the region aims to have pricing power as the top consumer of the metal…China’s efforts have the best chance of success, say market players, as it has a huge home market…with imports of over 1,000 tonnes of Gold last year and local production of about 400 tonnes, China consumes over a third of global supply…a successful take-up of the exchange could see Gold priced and paid for in yuan rather than the U.S. dollar, challenging the traditional dominance of London and New York in trading…

On Silver: Tom Kendall, the head of commodities research at Credit Suisse in London, told Bloomberg, “The perception is that Silver will do well, and should outperform Gold as the economic recovery strengthens.  Belief in Silver’s dual properties, as a financial asset and also as an industrial metal, appears to remain strong.”

While money managers hold the least bullish bets on Silver since they were net short on June 10, demand for the metal from solar panel makers is seen rising to a record this year by CPM Group, a New York-based researcher…demand from jewelry and silverware makers will climb 4.3%, according to CPM…

Today’s Equity Markets

Asia

Japanese stocks rose overnight to their highest closing level in nearly 7 years, reacting positively to Scottish voters’ rejection of independence from the U.K., while the yen hit a fresh post-financial-crisis low against the dollar…

China’s Shanghai Composite jumped 13 points to close at 2329…more liquidity boosting measures from China…late yesterday, the PBOC cut the 14-day repo rate by 20 basis points to 3.5% to ease short-term borrowing costs for banks…traders also said the PBOC injected $1.3 billion into money markets this week…the move comes days after the PBOC was believed to have pumped $81 billion into China’s top five banks…

Europe

European markets were modestly higher today with investors breathing a sigh of relief that Scotland will remain part of the U.K. as secession opponents won 55% of the vote versus 45% who sought independence…

North America

The Dow has hit another new record high this morning…plenty of investor enthusiasm for Alibaba’s (BABA, NYSE) market debut after China’s e-commerce giant priced its initial public offering at $68 a share…it opens in just a few minutes and could pop out of the gate with an immediate gain of around 40%…

The TSX is off nearly 100 points through the first 2 hours of trading…the TSX Gold Index is down for the 6th straight session and has fallen in 11 out of 14 trading days so far this month – highly unusual for September…oversold conditions in the Index have clearly emerged…the Venture, meanwhile, is off 2 points at 964…

Cannabix Technologies Inc. (BLO, CSE) Update

Cannabix Technologies (BLO, CSE) is finishing another strong week on a positive note…what is crucial and has us particularly excited right now about BLO is that the American audience is just beginning to discover this story…the U.S. is where BLO is aiming for market penetration, in terms of both the equity side and the business model…and once the American media gets to know this company, watch out…

BLO’s patent-pending marijuana breathalyzer technology – rapidly proceeding to the prototype stage – is something the average person on the street,  even those who strongly support the legalization of marijuana, can understand, appreciate and rally behind…Cannabix is a first-mover in this space – no one else has what they’re developing – and law enforcement’s need for a roadside marijuana breathalyzer is obvious with more and more “drugged” drivers on the street…this cutting edge breath-analysis technology may also find high demand in certain workplace environments…

As always, perform your own due diligence…we see a management team that is highly capable, careful, prudent and market savvy…

Technically, BLO has broken out of a 2-month downtrend that started shortly after its powerful debut on the CSE in late June…strong support has formed in the mid-teens…

BLO is up a penny at 18 cents as of 8:30 am Pacific…

Calibre Mining Corp. (CXB, TSX-V) Update

We’ve been bullish on the prospects for Cailbre Mining (CXB, TSX-V) since the early summer when John noted an important breakout above 6 cents and a 2-year downtrend channel…on Wednesday, the company announced a strategic $2 million private placement (25 million units at 8 cents per unit) with Franco-Nevada Corp. (FNV, NYSE) chairman Pierre Lassonde which will give him an 11.2% equity stake in Calibre on an undiluted basis (in July, B2Gold increased its equity ownership in CXB by exercising common share purchase warrants for proceeds to Calibre of $500,000)…

Calibre is very active with excellent geological prospects in Nicaragua including the Eastern Borosi Project which was recently optioned by Iamgold Corp. (IMG, TSX)…drilling continues; encouraging initial Phase 1 drill results were released a couple of weeks ago…Eastern Borosi hosts Gold-Silver resources in two deposits and a series of well-defined low-sulphidation epithermal Gold-Silver targets…approximately 3,000 m of diamond drilling in this program will test approximately 3 km of strike length of previously identified Gold-Silver-bearing structures in this prolific district…

Below is an updated 2.5-year weekly CXB chart…next major resistance is 15 cents…

CXB is off half a penny at 13 cents as of 8:30 am Pacific…

Great Lakes Graphite Inc. (GLK, TSX-V) Update 

This was purely a technical observation the other day – Great Lakes Graphite (GLK, TSX-V) was looking very bullish at the 9-cent level, and immediately took off to the upside on impressive volume…today’s close will be important as it may (or may not) confirm a breakout above resistance at 12 cents…RSI(14) at 58% on this 2+ year weekly chart is showing strong up momentum…as always, perform your own due diligence…

GLK is off 1.5 cents at 11.5 cents as of 8:30 am Pacific…

Falco Resources Ltd. (FPC, TSX-V) Update

We’ve been keeping an eye on Falco Resources (FPC, TSX-V) for several months now, in part due to our familiarity with the Rouyn-Noranda area where FPC is very active with a lot of promising ground…as we mentioned Tuesday, if you’re looking for a quality play in the junior resource sector, this certainly fits into the top 10% elite category…

As always, perform your own due diligence…obviously Sean Roosen has, and he likes what he sees…last Friday, Falco appointed Roosen as a director and chairman of the board…the appointment followed an announcement by Osisko Gold Royalties Ltd. (OR, TSX) late last month that it intends to increase its ownership interest in Falco to 14.99%…

John’s Tuesday chart on FPC showed the good possibility of a retracement into the 60’s following a sharp move higher Monday when the stock hit 78 cents…note the uptrend line, the rising and supporting 200-day SMA and the gap support in the mid-60’s…the primary trend is bullish, so any pullback should be viewed as an opportunity here…

FPC is down 2 pennies at 64 cents as of 8:30 am Pacific…

Balmoral Resources Ltd. (BAR, TSX) Update

Balmoral Resources (BAR, TSX), which has had a good week, has been one of the few bright stars on the exploration front this year…however, it was just a matter of time before an extended overbought RSI(14) condition started to unwind which is what began late last month…

BAR’s rising 100-day SMA, just below $1.50, is providing support (beneath that, the Fib. $1.29 level) with measured Fib. resistance and the 50-day SMA in the high $1.60’s…news will determine if BAR can push past resistance and climb to a new all-time high…lots of drill results to come from the company’s Grasset nickel discovery, where drilling continues, and the Martiniere Gold Property where a 20-hole summer program was recently completed…

BAR is off 6 cents at $1.59 as of 8:30 am Pacific…

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