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Gold has traded between $1,085 and $1,095 so far today…as of 9:30 am Pacific, bullion is down $2 an ounce at $1,087…Silver is off 9 cents at $14.34…Copper is up a penny at $2.25…Crude Oil has shed more than $1 a barrel to $43.10 while the U.S. Dollar Index is relatively unchanged at 99.02…

There are signs of physical Gold demand picking up, according to two banks. “The drop below $1,100/oz has stimulated Indian buying, which has been very sluggish for weeks,” HSBC stated in a research note late yesterday.  “We also suspect demand is increasing from China and other emerging markets. The most recent data from China show deflationary trends persisting, but this should not impact the demand for Gold jewelry bars and coins noticeably, we believe.”

Meanwhile, Commerzbank stated today,  “Physical Gold demand in China still appears to be robust and indeed to be picking up, given that the premiums on the Shanghai Gold Exchange have risen to $4–5 per troy ounce as compared to world market prices.”

Platinum Purge

Investors have cut holdings in exchange-traded funds backed by Platinum for a record 13th day, with tumbling prices of the precious metal also driving shares of Lonmin, the world’s 3rd-largest producer, to an all-time low (the stock has lost 95% of its value over the past year)…the company employs 35,000 people and its survival is in question given its financial difficulties…

Holdings in Platinum ETFs have dropped 7.6% since October 21, according to data compiled by Bloomberg as of Monday, as Platinum bumps along around the lowest prices in 6 years…

Oil Update

WTIC is under pressure today after industry data showed an increase in U.S. stockpiles, as analysts said U.S. output had been surprisingly resilient in the face of lower prices…U.S. Crude stocks jumped by 6.3 million barrels in the week to November 6 to 486.1 million barrels, data from industry group the American Petroleum Institute showed late yesterday, compared with analysts’ estimates for an increase of 1 million barrels…the U.S. government’s Energy Information Administration will release official inventory data tomorrow morning due to Veterans Day…

A Long-Term Perspective On Gold

This long-term Gold chart shows the two major waves to the upside in bullion going back to 2001 – the nearly 300% price increase from around $260 to a high of $1,034 in 2008, and the second wave that took Gold from a low of just under $700 in late 2008 to an all-time high of $1,924 in September 2011 (a jump of 183%)…

Waves 2 and 4 to the downside produced declines of 34% in 2008 and 44% between 2011 and this past summer…Wave 4 is near its end, in our view, though it’s quite possible Gold may briefly have to touch the $1,000 level before Wave 5 commences…a Fib. level of note (a 50% retracement) is $1,028…Wave 5 has the potential to take bullion as high as nearly $3,000 an ounce (no timeline), a percentage move (176% from $1,000 to $2,760) that would be comparable to Wave 3…

Interestingly, sell pressure (CMF) in Gold at the moment, based on this long-term monthly chart, is the most intense it has been since 1982, just prior to when Gold skyrocketed from a low of $298 to a high of $520…RSI(14) is holding support close to 40%…

In today’s Morning Musings…

1.   After 5 straight losing sessions, chart shows strong support for TSX around 13400…

2.  Nearly 3-year high this week for Nemaska Lithium (NMX, TSX-V)

3.  Long-term chart shows powerful trajectory for Garibaldi Resources (GGI, TSX-V)

4.  Updates on Equitas Mining (EQT, TSX-V) and Gold Standard Ventures (GSV, TSX-V)…

Plus more…to view the rest of today’s Morning Musings, login with your username and password, or click here to gain full access to this and other exclusive BMR content and features…