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Gold has traded between $1,239 and $1,249 so far today…as of 8:30 am Pacific, bullion is up $1 an ounce at $1,245 as it tries to snap a 5-session losing skid…Silver is up 2 cents at $18.78…Copper is down 3 pennies at $3.15…Crude Oil is up 22 cents at $102.69 while the U.S. Dollar Index is off one-tenth of a point at 80.54…

U.S. Mint sales of Gold bullion coins fell in May but sales of Silver coins were higher…combined sales of American Eagle and Buffalo coins last month were 48,000 ounces…this was down from 56,000 in April and 82,500 in May of 2013…however, the larger fall in the year-on-year comparison can be explained at least in part by the “buying frenzy” that unfolded at this time last year after Gold prices tumbled in the wake of the Cyprus crisis and hedge-fund selling…meanwhile, American Eagle Silver coin sales in May came to 3,988,500 ounces…this was up from 3,569,000 in April and 3,458,500 in May 2013…

With an ECB decision looming and a U.S. jobs report due Friday, volatility in Gold is likely to increase later in the week…technically oversold conditions have emerged with a strong support band between $1,220 and $1,240…historically, over the past couple of decades at least, June is Gold’s worst month of the year – so an important low could occur anytime over the next few weeks before a Q3 upswing…

Today’s Equity Markets

Asia

After Monday’s holiday, China’s Shanghai Composite finished 1 point lower overnight at 2038…China’s factory sector put in its best performance in four months in May as export orders rebounded although activity remained in contraction territory, according to an HSBC survey released today…the final reading of the HSBC/Markit PMI rose to 49.4 in May from 48.1 in April but was below an initial estimate of 49.7…Japanese shares hit a two-month peak for the second straight session, climbing 98 points to finish just above the 15000 level…

Europe

European markets were down modestly today…euro-area inflation slowed more than economists forecast in May, cranking up pressure on the European Central Bank to deploy measures as soon as this week to kindle prices and drive growth (the ECB meets Thursday)…the rate fell to 0.5% from 0.7% in April, the European Union’s statistics office in Luxembourg said today…the median forecast in a Bloomberg News survey of 38 economists was for a decline to 0.6%…the rate has been less than half the ECB’s target for eight months…unemployment in the EU was also reported today, coming in at 11.7% in April from 11.8% in March…

European stocks are at a six-year high, while the euro is sitting near a three-month low versus the dollar and nearly a four-month low against the Japanese yen…traders are positioned for further euro weakness ahead with the possibility of imminent action by the ECB…hedge funds and other large speculators built up a net $2.8 billion short bet against the euro last week, nearly doubling their bets against the currency from the previous week, according to Commodities Futures Trading Commission data…will this turn out to be a classic case of “selling the rumor” and “buying the fact”?…quite possibly, which means we could be in for some interesting volatility in the currency and Gold markets at the end of the week with the ECB decision Thursday and U.S. non-farm payrolls Friday…

North America

The Dow is down 37 points as of 8:30 am Pacific…the TSX is 28 points higher while the Venture has added 3 points to 981…

Venture-CRB-Gold Comparative Chart

Yesterday, we posted an important chart showing in very striking fashion how a new “uptrend” is well underway (started last year) in terms of the Venture’s out-performance vs. Gold, and you can see it again in a different way in this chart with the dotted line (CDNX relative to Gold)…

What’s also interesting at the moment is that the Venture has some catching up to do with the CRB Index…relative to the CRB, the Venture is at the same level it was at the end of the Crash in 2008…that relative performance peaked at the end of 2010 and has recently flattened or “bottomed” out…

Doubleview Capital Corp. (DBV, TSX-V) Update

Important and strong support at 15 cents has held in Doubleview Capital (DBV, TSX-V) which is gearing up for more drilling at the Hat Property…despite the sharp recent drop from an all-time high of 40 cents, keep in mind – from a long-term technical perspective – that DBV merely corrected to an area of exceptional support, just above rising 200 and 300-day moving averages (SMA’s)…geologically, drilling to date at the Hat has demonstrated large tonnage potential in the newly-named Lisle Zone…the key now for DBV is to deliver some higher grades and the potential for that clearly exists within the recently recognized Sheslay “Red Stock”…each of DBV’s three drill programs so far have moved this project forward, so we expect that pattern to continue with the upcoming fourth round…

DBV is off half a penny at 19.5 cents on light volume through the first two hours of trading…

Edge Resources Inc. (EDE, TSX-V) Update

Edge Resources (EDE, TSX-V), an Alberta-Saskatchewan energy play we started following when it was in the high teens, continues to gather steam…if you haven’t performed your due diligence on this one, we suggest we do – and a good place to start would be the company web site where Edge has posted a short but very informative/effective corporate video…EDE last month broke out of a basing channel between 10 and 16 cents, thanks to a turnaround in the company’s performance including its first million-dollar revenue month in February…so improving fundamentals (production increases, much stronger revenue and cash flow, higher reserves) are at work here along with bullish overall technicals…this low cost producer is becoming self-funding on the basis of a successful multi-well drilling program, so EDE is quickly developing into a very compelling story…

A long-term downtrend line currently intersects with Fib. resistance at 25 cents…it’s only a question of when, not if, EDE will break out above the downtrend line in our view…this looks very promising for both the near-term and the second half of 2014…

Petromanas Energy Inc., (PMI, TSX-V) Updated Chart

Petromanas Energy (PMI, TSX-V) is unwinding from a technically overbought condition after reaching Fib. resistance at 38 cents (it actually got as high as 40 cents intra-day May 25)…keep an eye on the rising 50-day moving average (SMA) which currently coincides with Fib. support at 27 cents…the 50-day has been a closely supporting SMA for PMI since December…

PMI is up 1.5 cents at 34.5 cents as of 8:30 am Pacific…

Discovery Ventures Inc. (DVN, TSX-V) Update

The recent uptick in Discovery Ventures (DVN, TSX-V) comes as no surprise, given the company’s very robust Preliminary Economic Assessment (PEA) released last week (interesting numbers, check them out) for its WillaMAX Project in the heartland of southeast B.C.’s Slocan Mining District…with an agreement to acquire the modern 500-tonne-per-day MAX mine and mill facility, located 135 km from the Willa Au-Cu deposit, the high net present value (NPV) and internal rate of return (IRR) and low CAPEX of $12.8-million, DVN should be on every investor’s radar screen as there is some real value here in our view…we’re confident DVN will secure the debt financing it requires to put the Willa into production, especially given the very positive PEA…

Below is a 2.5-year DVN chart from John…note the increasing buy pressure and the bullish trend reversal that occurred early this year…we’ll have more on DVN and its potential with the Willa deposit and the MAX mine and mill facility next week…as of 8:30 am Pacific, DVN is off half a penny at 18 cents…

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