Gold has bounced between $1,301 and $1,317 so far today…as of 8:15 am Pacific, bullion is down $6 an ounce at $1,306…Silver is off 4 cents at $20.89…Copper is up another penny to $3.20…Crude Oil is down 22 cents at $104.37 while the U.S. Dollar Index has climbed nearly one-quarter of a point to 80.78 (see updated Dollar Index chart at bottom of today’s edition)…
Holdings of the SPDR Gold Trust, the world’s largest Gold-backed ETF, fell 1.8 tonnes to 803.34 tonnes on Monday…
Nice find…more than 13,500 Gold and Silver coins have been recovered off the coast of South Carolina as Odyssey Marine Exploration (OMEX, NYSE) continues its search of the SS Central America shipwreck site…according to historical records, the SS Central America was caught in a hurricane on Sept. 12, 1857 and sank 160 miles off the coast of South Carolina…the ship was carrying 425 passengers along with a large consignment of Gold from ingots to freshly minted coins…
Investors are buying metals from Zinc to Aluminum at the fastest pace since 2009, betting demand gains will tighten supply…ETF’s in the U.S. backed by base metals have taken in new money this year equal to nearly 20% of their market capitalization, more than any commodity group, data compiled by Bloomberg show…Zinc is at a 2-year high while Aluminum is at its highest level since February 2013…TD Securities says it sees the Zinc and Lead markets as those most likely in the base-metals complex to experience issues with mine supply growth in the upcoming years. “Large-scale mining project losses will be replaced by smaller mining projects, and at a rate that struggles to keep pace with the increasing consumption demands of a growing U.S. and China,” TDS stated. “Therefore, the deficit situations in these metals, along with current declining above-ground inventories, will be a boon to the price action.”
Hedge funds are the most bullish on Copper in at least eight years, after spending March and most of April betting prices would drop…the Bloomberg Industrial Metals Subindex is heading for its biggest annual gain since 2010…the biggest gains among 22 raw materials tracked by the Bloomberg Commodity Index since March have been Nickel, Zinc and Aluminum…
Today’s Equity Markets
Asia
China’s Shanghai Composite reached its highest level since June 16, climbing 21 points overnight to close at 2075 as geopolitical concerns eased…the market shook off an estimate from Standard Chartered Bank that China’s debt has soared to two-and-a half-times its economy, highlighting the difficulties Beijing faces in balancing growth with the risk of bubbles forming in its economy…total financial credit has surged to 251% of GDP from 147% at the end of 2008, the bank said. “The economy will continue to leverage up, and the market will remain concerned,” said Stephen Green, chief China economist at Standard Chartered…
Japan’s Nikkei average, closed yesterday for a public holiday, gained nearly 1% or 128 points overnight to close at 15373…
Europe
European markets were up significantly today…EU foreign ministers are meeting in Brussels to discuss possible new sanctions against Russia…we’ll see if they back up their rhetoric over Russia’s appalling behavior in Ukraine, and its obvious threat to international peace and security, with real action…
North America
The Dow is up 70 points as of 8:15 am Pacific, thanks to mostly better-than-expected earnings reports from a slew of companies…technology giants Apple and Microsoft will release earnings numbers after today’s close…
Consumer prices continued to rise in June but at a slower pace and driven largely by a surge in the cost of gasoline, the latest evidence of firming inflationary pressures across the U.S. economy…the CPI, a broad measure of what Americans pay for everything from breakfast cereal to haircuts, rose a seasonally adjusted 0.3% in June from a month earlier, the Labor Department reported this morning…excluding the often-volatile categories of food and energy, the core index rose 0.1% from May…on an annual basis, CPI was up 2.1% in June from a year earlier, unchanged from May’s year-over-year rise, although excluding food and energy it fell slightly in June on an annual basis to 1.9%…
Americans’ inflation-adjusted average weekly earnings were essentially unchanged in June from May, according to a separate Labor Department report…
Meanwhile, in a potentially crippling blow to Obamacare which has been a major contributing factor to a slow U.S. economic recovery, a federal appeals court declared this morning that government subsidies worth billions of dollars that helped 4.7 million people buy insurance on HealthCare.gov are illegal…
In Toronto, the TSX is up 69 points as of 8:15 am Pacific while the Venture has added a point to 1007…
CDNX 3-Year Weekly Chart
Our trusted 3-year weekly Venture chart (with Gold comparative) shows RSI(14) for the CDNX having retreated to the uptrend line in place for over a year…this coincides with very strong support at the 1000 level – another reason to believe that a near-term reversal is at hand…
Venture 5-Year Weekly Chart
The Venture 5-year weekly chart illustrates the exceptional secondary support between 970 and the rising 200-day moving average (MA-40 on this weekly chart) at 982…the ADX trend indicator remains bullish…the 1150 area is first major resistance on a breakout through the March high of 1050…
Discovery Ventures Inc. (DVN, TSX-V) Update
Discovery Ventures (DVN, TSX-V), advancing the promising Willa-MAX Gold-Silver-Copper Project in southeast British Columbia, has completed the second tranche of a financing, raising a total of $2.4 million which is impressive in these markets…what has no doubt caught the attention of investors are the grades at the Willa deposit, the synergy between the deposit and the Max mine and mill facilities DVN has smartly secured 135 km away, and the highly encouraging Preliminary Economic Assessment for the project (based on measured and indicated resources, not reserves) released by the company at the end of May…though the figures are preliminary, and not based on reserves, the potential economics of Willa-MAX are very robust…
The confirmed breakout in DVN above the triangle resistance at 23 cents just over a month ago that John pointed out was extremely important from a technical standpoint…DVN climbed as high as 31.5 cents following the breakout and then, not surprisingly, retracted to unwind moderately overbought conditions…the 23-cent area held as support on the retrace, and momentum has once again picked up with DVN closing yesterday at 27 cents…it’s up a penny at 28 cents as of 8:15 am Pacific…
A reminder that Fib. measured resistance does not constitute a price target, rather it’s a theoretical level based on Fib. and technical analysis…
Balmoral Resources (BAR, TSX)
This 1-year weekly chart for Balmoral Resources (BAR, TSX) shows how overbought RSI(14) conditions in a stock can remain in place for an extended period, but at some point there is always an unwinding of that…we’ve been following BAR since an important breakout above the 90-cent level and it has climbed steadily higher, now hovering around measured Fib. resistance at $1.68…geologically, this is a very compelling story with the Martinere and Grasset projects showing strong exploration upside as President and CEO Darin Wagner pointed out in a July 8 news release…
“With drilling now under way at Martiniere, our shareholders have results from two of the more exciting exploration projects in Canada to look forward to over the weeks and months ahead,” stated Wagner. “As well, we have plans to drill test two or three new targets within our 700-square-kilometre Detour Gold trend project this summer, including one of the most promising Gold targets we have identified to date.”
BAR is off 2 cents at $1.67 as of 8:15 am Pacific…
U.S. Dollar Index “Awareness” Chart
There is a growing bullish tone to the U.S. Dollar Index, and what a potential “breakout” in the Dollar Index may mean for the broader markets is a good question…
Since February, the Dollar Index has remained in a horizontal channel between strong support at 79 and resistance at 81…it has recently broken above an RSI(14) downtrend line as well as the 50 and 200-day SMA’s, with the 50-day now rising briskly as you can see in John’s 2.5-year weekly chart…
The Dollar Index needs to be watched closely as the potential exists – technically and fundamentally – for a spike higher at some point during the third or fourth quarters…rising geopolitical tensions tend to make the greenback a favored currency – the best of a bad bunch…
Note: Jon holds a share position in DVN.
There is a possibility that the US Dollar will rise alongside gold and silver. At the end of the day it’s still the reserve currency, and that gives it a semblance of safety.
Comment by chris — July 22, 2014 @ 8:01 am
Certainly possible, Chris, this has occurred before…
Comment by Jon - BMR — July 22, 2014 @ 8:07 am
When do you expect PGX and DBV to release their results? I am pretty sure they have some results by now. Could be wrong, though.
Comment by Chris — July 22, 2014 @ 9:21 am
Phoenix Gold Resources{PXA.v} up to .09-.095 on the day with volume staying high.In accumulation mode.First hole results should be this week.Economic grades and this is going to .15-.20 on the first hole.8 hole program in a prove it up and sell to Newmont is the plan.Battle Mountain area,Nevada.Less than 10 million shares in the float.Website is Phoenixgoldresources.com.
This will be a winner.Don’t say you weren’t warned.IR CEO has personally bought into the drill PP.
Comment by Jim Niles — July 22, 2014 @ 9:34 am
jon, how’s this for a trend with ggi,all but one of their last seven nr’s have been on a thursday.still being patient.thursday??
Comment by tom-bc. — July 22, 2014 @ 10:00 am
Lack of news is getting the stockprice
Of GGI under pressure!
Comment by Tran — July 22, 2014 @ 10:36 am
Maybe some results have leaked out or is it more nervous Nellie selling on GGI?
Comment by Greg — July 22, 2014 @ 10:45 am
DBV,v not lookin 2 healthy
MUST hold this level
Comment by ChartTrader — July 22, 2014 @ 10:47 am
Greg, you need to look at today’s GGI seller – QTrade. For the last 10 days or so they’ve had an offer popping in and out for just over 100,000 shares. Today they decided to hit the bid which is a good sign. Their pattern of selling has put them on the “dumb money” side with GGI over the last 6-9 months—they sell but the stock keeps moving higher. Minor player and the paper is running out.
Comment by Jon - BMR — July 22, 2014 @ 10:56 am
yes jon ,as soon as i seen that, it didn’t concern me.should just read,(dumb).
Comment by tom-bc. — July 22, 2014 @ 11:21 am
Jon
Im actually hoping it goes a little lower before news as I want to add some more to my position, I have been very patient, but it doesn’t not look like I will be able to pick any up below 25 cents, might have to bite the bullet here today..
Comment by Greg — July 22, 2014 @ 11:22 am
Boys,if you want a winner,and the best is yet to come,check out the chart for v.PXA,which is now on Stockcharts.Volume has hit new highs again and the price has closed at a new high also.And the results of hole 1 are supposed to come out this week.Go to Phoenixgoldresources.com.This could be the play of the summer and a very fast runner.
Comment by Jim Niles — July 22, 2014 @ 12:21 pm
Jim, what happened to SL I thought that was the runner??
Comment by Jessie — July 22, 2014 @ 1:26 pm
@Jessie: I own Supreme Pharmaceuticals. The stock will run, and run hard, once it gets its licenses. Don’t expect too much before that.
Comment by chris — July 22, 2014 @ 2:43 pm
Jon, very interesting NR today from NAN regarding gravity highs, coincident with past drilling results and some new gravity highs in and around their discoveries at Imiak Hill and Spotty Hill. Also, interesting gravity high at Fossilik 1.5 x 2.5km gravity high with historical and NAN drilling at the western edge. Comments?
Comment by Dan — July 22, 2014 @ 3:45 pm
Found out on youtube, DBV like presentation for Prosper gold https://m.youtube.com/watch?v=oMhj4GSdOGk
Comment by Martin — July 22, 2014 @ 4:13 pm
Jessie,SL would have run hard but management and PP holders kept dumping shares into the run.No stock can run when it’s not being supported by the company.Why they did it when they could have sold much higher for much greater profits,I’ll never know.I agree with Chris.Once the licences come in the stock will run.In the meantime,they are planning a r/s.So I wouldn’t touch it until it splits and drops some.
Comment by Jim Niles — July 23, 2014 @ 2:59 am
Any chance of an updated chart for Prosper Gold? Your last chart showed support at around 45c but the stock has traded below this slightly, but still appears to be supported.
Comment by Tom — July 23, 2014 @ 4:42 am
Yes, thanks for the reminder, Tom. Looks very well supported and we’ll do an update this week.
Comment by Jon - BMR — July 23, 2014 @ 4:45 am
Dan, thanks for pointing that out, keeping a close eye on NAN but missed that until later yesterday…NAN has done an excellent job getting a handle on this project and they are using a variety of tools to do so…they could be on to something very big—–continued drilling will obviously provide more answers…off a little this morning but in an area of support as previously outlined…
Comment by Jon - BMR — July 23, 2014 @ 7:27 am
Agree on the NAN.V- it looks like something really big coming along-
Also own shares in IMT.V another nickel play which looks promising-
Comment by Brian — July 26, 2014 @ 6:11 am