Gold is stabilizing after two days of sharp sell-offs…as of 6:10 am Pacific, the yellow metal is up $4 an ounce at $1,625…Silver has gained 7 cents to $31.43…Copper is flat at $3.79…Crude Oil is up 9 cents at $101.56 while the U.S. Dollar Index has climbed another one-third of a point to 80.08…
This is the final trading day of the week with Good Friday tomorrow…important U.S. jobs data still comes out tomorrow, however…BMR will be taking a four-day Easter break and we will return with our regular Morning Musings Tuesday though markets in both Canada and the United States are open Monday…
A fall to just below $1,600 an ounce might be enough to scare all the nervous nellies and allow Gold to put in an important bottom…below is John’s latest Gold chart…
Physical Gold demand from India has picked up this week in response to the sell-off in prices, even though a jewelers’ strike continues in the country, stated Edel Tully, precious-metals strategist with UBS…“Our physical sales to the region were the strongest since March 14,” she said…“The return of this demand source, after a few weeks of being largely absent, is positive for Gold…true, a price floor may be some distance away…but the presence of physical buying shouldn’t be under-estimated”…
A strike, in which Indian shops closed to protest higher taxes, has lasted longer than most expected, Tully said…”But the strong buying Wednesday suggests that many think a resolution may be near”.
Yesterday was a public holiday in India and presumably meant less demand…the upcoming Akshaya Tritiya festival on April 24 may be the catalyst that brings the strike to an early end, Tully said…this and the Dhanteras are two of the biggest Gold buying events on the Hindu calendar…”These are essential buying occasions that jewelers won’t want to miss – particularly after the strike-inflicted drop in revenues in March,” Tully stated…
The Venture Exchange is now off nearly 12% to the 1500 support area since its late February high with Gold declining nearly the same amount…the TSX Gold Index, meanwhile, has fallen from a high of 393 February 23 to a low of 311 yesterday, a loss of 21% in just 30 trading sessions…it’s a drop that’s very comparable to the late 2009-early 2010 sell-off in the Index…this is not the time to be running for the exits…there are some incredible opportunities in this market right now and we’ll be highlighting several of them Tuesday…
We’ll have some additional chart updates from John by tonight followed by Terry’s Easter Message…
Below is a chart update on Huldra Silver (HDA, TSX-V) which pulled back to an area of support after climbing as high as $1.63 March 13…HDA, which is focused on its Treasure Mountain Silver Property in the British Columbia interior, closed down a nickel at $1.35 yesterday…
Note: John, Jon and Terry do not hold positions in HDA.
HDA should be in production Q2. They bought out Craigmont holdings, a mill about 10km from their Treasure mtn property. They are doing necessary upgrades to mill and have filed for all appropiate permits…they are expecting 2mill oz Ag milled anually.
Comment by db — April 5, 2012 @ 6:12 am
Hi BMR,
What’s your thoughts regarding RBW? Still positive and enthusiastic?
Comment by Kalkan - Sweden — April 5, 2012 @ 8:44 am
Johnston hinted in a BMR interview last week that we would see news this week. Not looking like thats gunna happen. I agree with what someone posted last week, I think people are getting a lil too excited too fast with RBW. Until the drill hits the ground and we see some actual assays and not just grab samples, it will be a slow climb. Especially with the shape of the overall markets these days…
Comment by db — April 5, 2012 @ 8:48 am
RBW is actually doing pretty well despite the recent bloodshed. Stink bids are coming in and will continue as long as this “bad air” continues hanging over the markets. Either way, the ventures look like they will undergo one last washout at garbage volumes before it climbs again.
Too many bargains out there and just you wait until institutions buy in heaps. The mood is awful now and it’s hard to believe the ventures will recover in a hurry. But it’s going to happen, so position yourselves well today and don’t run to the exit door.
RBW is holding better than 95% of venture plays out there – nobody is going to sell at these levels, unless it’s a manipulation tactic.
Place your bids kids.
Comment by Alex — April 5, 2012 @ 9:14 am
todays smile .Two young brothers share the same bedroom the younger brother takes to prayiny out loud very loud .night after night he prays to the Lord please LORD I want a red wagon.this happens night after night.After a while the older brother says to his brother I LIKE that you pray every night but could you keep the volume down you know God is not deaf.the younger bother says Iknow but gramma is
Comment by gil — April 5, 2012 @ 9:26 am
I am not a negative person but we need to accept the fact… my comments in GBB current status since I sold – true down to now 13.5 cents. People telling me that they need to dump the stock for not losing too much. This will continue and it may hit 12 cents. The news…. may be one day shine only…. Let us see!
Comment by Theodore — April 5, 2012 @ 9:57 am