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Gold is stronger this morning but the yellow metal is now trading in an area of short-term resistance between $1,740 and $1,750…as of 5:45 am Pacific, Gold is up $10 an ounce at $1,747 after reaching a high of $1,754…Silver is 72 cents higher at $33.85…Copper has gained a nickel to $3.84…Crude Oil is 26 cents higher at $98.74 while the U.S. Dollar Index is off half a penny at 78.83…

Stock index futures in New York are pointing toward a strong opening…European markets are up over 1% today as better-than-expected manufacturing data came out of Germany and the UK…

S&P 500 – Best January In 15 Years

The S&P 500, which posted its best January since 1997, caught traders’ attention yesterday when it triggered a “golden cross”, meaning its 50-day moving average (SMA) rose above its 200-day SMA…that’s seen as the signal of an uptrend but some analysts see it more as a psychological positive, confirming a move, rather than as a major signal…

China’s PMI Rises

China’s factory sector expanded slightly in January, confounding many analysts’ expectations for a contraction and supporting hopes the world’s second-largest economy will avoid a hard landing, a government purchasing managers’ index showed…a similar HSBC survey showed the sector contracting the least in three months, further backing the view that a downturn in manufacturing may be bottoming out as the government adopts modest measures to support growth…the official PMI rose to 50.5 in January from 50.3 in December, beating market expectations of 49.5 as new orders rose to a three-month high…a level of 50 demarcates expansion from contraction…”This suggests that the manufacturing sector has stabilized somewhat due to supportive fiscal and monetary policies,” said Li-Gang Liu, China economist at ANZ in Hong Kong…”Indeed, the stronger-than-expected PMI supports our baseline scenario of a soft landing”…

TSX Gold Index And Venture Exchange

The TSX Gold Index gained 8% in January, closing yesterday at 389…that was slightly below the 9.9% jump posted by the Venture Exchange…below is John’s updated chart for the Gold Index which is looking quite positive after a major plunge in December…

The CDNX appears determined to challenge resistance in the near future around 1675 where it was turned back in November…the Index has much more underlying strength right now so if it doesn’t make it through 1675 on its first attempt, it’s just a matter of time before it does given the bullish new dynamics…

Canaco Resources Rebounds

The chart for Canaco Resources (CAN, TSX-V) reveals how sentiment has changed on the Venture Exchange…Canaco was in a steady decline since hitting an all-time high of $6.45 nearly a year ago with the stock bottoming out at $1.07 in December…yesterday, it gained 25 cents to close at $1.70 on 2.7 million shares (all exchanges)…the company has drilled over 400 holes (110,000 metres) since 2009 at its Handeni Project in Tanzania, and an initial NI-43-101 resource estimate is expected by the end of this first quarter…a Preliminary Economic Assessment (PEA) will follow later in the year…the company is drilling 10,000 metres per month at Handeni with nine diamond drill rigs and one RC rig…some drilling is taking place outside of the Magambazi discovery area with the objective of making a new grassroots discovery in the Handeni region…technically, CAN is looking a lot healthier these days – take a look at the triple bottom and the increase in buying pressure…

Note: John, Jon and Terry do not hold positions in CAN.

Gold Canyon Reports Solid Assays, Updated Resource Estimate Delayed

Gold Canyon Resources (GCU, TSX-V) has delivered more impressive drill results from its Springpole Project in Ontario…hole SP11-106 intersected 127.5 metres of 3.51 g/t Au (418 feet at 0.102 opt) including 50.0 metres of 7.73 g/t Au…meanwhile, hole SP11-107 cut 130 metres of 0.72 g/t Au…SP11-106 tested deeper parts of the mid-section of the Portage zone and the high-grade intercept falls approximately 170 metres beneath the area where a near-surface vertical hole (SP11-040) last year (March 15) intersected 100.5 metres of 7.23 g/t Au…this newly recognized high-grade chute remains open at depth as does the entire Portage zone…that was the good news from GCU yesterday…the not-so-good news was that the company’s much-anticipated updated NI-43-101 resource estimate for Springpole has been delayed once again and won’t be released in January as indicated by GCU in December…technically, GCU’s 50-day moving average (SMA) has reversed to the upside which is positive but the stock certainly faces resistance around the $3 level at the moment as John showed in a recent chart…

RoxGold Resources (ROG, TSX-V)

RoxGold Resources (ROG, TSX-V) which is developing three major projects in West Africa, has a fascinating chart as the stock absolutely defied last year’s market weakness…one of our readers mentioned this company yesterday, so below is a chart from John…he’s somewhat cautious regarding ROG from a technical standpoint – how long can the upsloping wedge remain intact? – but the company is sitting on piles of cash and has been delivering very good results…in addition, of course, the overall market has turned positive…

Note: John, Jon and Terry do not hold positions in ROG.