Gold has traded between $1,194 and $1,202 so far today as it continues to flirt with the psychologically and technically important $1,200 level…as of 7:45 am Pacific, bullion is down $3 an ounce at $1,198…Silver is off 2 cents at $16.64 after dipping briefly below $16.50…Copper is off a penny at $3.01…Crude Oil has fallen 50 cents to $73.59 ahead of tomorrow’s crucial OPEC meeting…prices reversed lower yesterday after a meeting among Saudi Arabia, Venezuela and non-OPEC members Russia and Mexico resulted in no agreement to cut Oil production…the U.S. Dollar Index has fallen one-fifth of a point to 87.63…the 88 level has served as key resistance…
How the combination of thin trading due to U.S. Thanksgiving tomorrow, and this weekend’s Swiss referendum, may impact the price of Gold Thursday and Friday will be interesting, to say the least…polls have consistently shown that Swiss voters will reject a proposal that would mandate the Swiss National Bank to hold 20% of its assets in Gold, among other measures…in the unlikely event that this referendum should pass, the central bank would have to purchase 1,500 metric tons of Gold over the next 5 years…
Did you know?…all the Gold in the world could be stored on an NFL football field, sideline to sideline and end zone to end zone, to a depth of 5.4 feet?…
TD Securities sees the potential for Gold pushing higher over the near-term in the event there’s a growing perception that economic weakness in the euro zone and Asia may begin to negatively impact the U.S. economy. “The market’s perception of global headwinds blowing against the U.S. economy should keep Treasury yields well contained and it is unlikely that the market will be bringing forward Fed funds rate increase expectations anytime soon,” TDS stated. “This suggests that, at least for the short while, we could again see specs again this week take on new longs and cover short positions. A move near $1,230/oz would not at all be surprising if we see unexpectedly poor U.S. data in the coming weeks.”
Silver Updated Chart
Though it has backed off slightly this morning, Silver is giving very positive signs of an imminent push higher…4 months of sell pressure, sometimes quite intense, has been replaced with buy pressure as shown by the CMF, RSI(14) has broken above resistance and has strong up momentum at 55%, while Silver has also climbed above its downtrend line in place since the early summer…in addition, there has been a bullish +DI crossover…today’s action and this week’s close will both be critical, but it appears Silver wants to test resistance at higher levels with $17.50 a key area…
Today’s Equity Markets
Asia
Chinese stocks rose to a new 3-year peak for the fourth consecutive session as cheer from the central bank’s interest rate cut on Friday continued to support sentiment…the Shanghai shot up 37 points to finish at 2605…Japan’s Nikkei average, meanwhile, slipped 24 points to close at 17384…
Europe
European markets are generally up slightly in late trading overseas…the German DAX is enjoying another strong day, however, and is set to post its 10th straight winning session…
Reuters reported today that ECB vice-president Vitor Constancio said the bank will be able to gauge in the first quarter of next year whether it needs to start buying sovereign bonds…
North America
The Dow is off 7 points as of 7:45 am Pacific after a deluge of mixed economic data this morning…the TSX has retreated 41 points while the Venture is down 4 points at 777 as of 7:45 am Pacific…
Balmoral Resources (BAR, TSX) reported new drill results this morning from its Grasset Ni-Cu-PGD discovery in Quebec…hole GR-14-57 returned a very broad Horizon 3 intercept of 57.88 m grading 1.85% Ni, 0.21% Cu, 0.40 g/t Pt and 0.97 g/t Pd, which includes a high-grade interval of 20.63 m grading 3.47% Ni, 0.40% Cu, 0.79 g/t Pt and 1.92 g/t Pd…results from an additional 8 holes are expected before year-end…
BAR climbed as high as $1.35 on the news, pulled back to $1.25 but is now unchanged at $1.30 where there is resistance as John’s chart showed the other day…
TSX Gold Index Updated Chart
Gold producers continue to recover from the nearly 40% sell-off in the TSX Gold Index from the beginning of September to early this month…keep in mind that weak Oil prices are of direct benefit to producers’ bottom lines as Oil forms such a significant part of a producer’s cost structure (25% to 40%)…
Below is a 6-month daily chart for the TSX Gold Index which is facing some temporary resistance at the declining 50-day moving average (SMA), currently 158…that’s where the Index closed at yesterday, and it has backed off slightly this morning…however, the posture of this chart is bullish, and the possibility of a strong push through the 160 area has to be considered high – a virtual certainty, one would think, if Gold were to gain traction above $1,200 an ounce…
Richmont Mines (RIC, TSX) Update
One of the best buys in the Gold sector in recent months has been Richmont Mines (RIC, TSX) which has been driven higher by old-fashioned basics – earnings momentum – and a 1 million ounce high-grade resource identified beneath existing workings at the company’s Island Gold Mine in Ontario…
Richmont jumped 25% last week alone after a breakout above resistance at $3 as you can see see on John’s chart…this week, there has been a confirmed breakout above the important $3.50 level which should now act as new support…this is a company with a very bright future, even in a volatile Gold price environment…
RIC is unchanged at $3.59 as of 7:45 am Pacific…
Eldorado Gold Corp. (ELD, TSX)
Eldorado has one of the lowest cost profiles in the industry…the company’s all-in sustaining cash costs averaged $735 per ounce in the the third quarter while cash operating costs averaged $488 an ounce (adjusted net earnings were $36 million or 5 cents a share)…the company expects to produce 790,000 ounces of Gold this year, slightly higher than original estimates…
Eldorado broke above a downtrend line in June and soared nearly 50% before retracing recently during the sector sell-off to base support just below $6…ELD would gain increased momentum if it were able to push above resistance at $8…
As of 7:45 am Pacific, ELD is down 18 cents at $7.81…
New Gold Inc. (NGD, TSX) Update
Interesting chart here – quite a powerful climb by New Gold (NGD, TSX) from its $3.85 intra-day low November 5…you’ll notice that the move above the short-term downtrend line was significant…like the TSX Gold Index, NGD is encountering resistance around its 50-day SMA ($5.13) but the trend is bullish…
NGD is down 14 cents at $5.11 as of 7:45 am Pacific…
Note: John, Terry and Jon do not hold share positions in BAR, RIC, ELD or NGD.
There is an updated video on the GGI website called Rodadero Rocks!
Watch at Garibaldi Resources Website
Comment by Dan — November 26, 2014 @ 1:33 pm
GGI NR… heres some of it
Two immediate drill holes will test for continuity of mineralization to depths of less than 100 meters at the new surface discovery north of SE-14-01. All five channel samples from a shallow pit returned significant silver grades – 881 g/t (28.3 oz/tonne), 771 g/t, 763 g/t, 452 g/t and 87 g/t. Widths ranged from 1.4 to 1.9 meters. The average grade was 604 g/t Ag over an average width of 1.6 meters.
Comment by Jeremy — November 26, 2014 @ 2:32 pm
Interesting, confirms the visuals GGI reported at end of October from this area. So a 150 meter step-out coming north of the discovery hole, and they’ve been hitting to the south. Great opportunity to build volume. I’m not sure they were expecting this to the north, so it’s a pleasant surprise. High-grade traced for 3 km directly south, then there’s everything to the east yet including the Gold component.
Comment by Jon - BMR — November 26, 2014 @ 3:06 pm
Looks great, results they say first half of dec. Jon, this is really close to the agm. What do you think, results befour or after the agm, also, will you be attending the agm.?? Thx.
Comment by Tombc — November 26, 2014 @ 3:29 pm
Come on Dec 24 2014.
Comment by tony t — November 26, 2014 @ 3:47 pm
Maybe they’ll be popping some bubbly at the AGM, Tom. Or handing out Silver bars from Silver Eagle. Generally, I try to stay away from AGM’s, they’re rather boring, but this one might pack a little extra excitement. I just like the fact they’re staying on course here with what appears to be a growing deposit with a lot of growth potential when you consider the 45 sq. km and the 11 targets. Would like to see some more detailed geological maps but I’m sure they’re working on that. Structurally, how this might all link up would be fascinating to examine. You have high grade Silver running down the western side and then the mineralization changes into high grade gold, silver and base metals trending to the east and southeast. Probably some interesting faulting that has gone on here.
Comment by Jon - BMR — November 26, 2014 @ 4:08 pm
nice to see some news but have to admit a little disappointed with just more grab samples…not sure about the wisdom of releasing news on the eve of Thanksgiving in the States…is it wise to ignore our investor friends from the south?
Bryan
Comment by bryan — November 26, 2014 @ 4:14 pm
Those aren’t grab samples, Bryan, those are channel samples—there’s a major difference between the two.
Comment by Jon - BMR — November 26, 2014 @ 4:30 pm
Yes, the agm May last till Christmas, everything looking quite nice moving foreword here, also regoci seemed to have a little, skip to his jump,in the video.
Comment by Tombc — November 26, 2014 @ 4:33 pm
thanks for the NGD update! Things are looking good!
Comment by Cam — November 26, 2014 @ 4:37 pm
ok thanks for clarifying…
Comment by bryan — November 26, 2014 @ 4:41 pm
Of course the drill rig is the ultimate truth machine, Bryan, but the channel sampling (as opposed to just ordinary grab samples off the ground) gives them a known high-grade structure to drill right into. The big picture significance of this is that the area north of the discovery hole is now appearing more prospective than it was previously. Perhaps this can stretch even further to the north, who knows. For now, these 2 holes will prove interesting. Major step-out in that direction. Our American friends can chew on this with their turkey dinner tomorrow night and come into the market on Friday or Monday. Other companies came out with news as well today including Balmoral.
Comment by Jon - BMR — November 26, 2014 @ 4:56 pm
I am one of your American friends. I will be home alone tomorrow and without turkey. But I am sure Jon will think that I am one the way that I comment on some of his picks. However, despite the bashing that this site has recieved in the past, I have always defended Jon. I have always been a volume swing trader type of guy and voiced my opinion about long term investing in penny stocks on the TSX.V – But if Jon remembers long ago, I credited him with many of his picks that DID go up from the time he recommended them. People had plenty of time to sell out and take the profit. GGI is no different – light volume or not, it is up from the time he brought it to this board. To any American friends on this board, I wish you a happy thanksgiving. To Jon, I say to you that I will be taking a position tomorrow. Yes, the brokerage house I use here trades straight thru to Cannacord. They have to have one broker that works to send the online only trades through. I like the way GGI is shaping up Jon. Oh, and looking forward to when the volume comes.
Comment by dave — November 26, 2014 @ 5:19 pm
More interest in ggi,the better, where ever you are.
Comment by Tombc — November 26, 2014 @ 5:48 pm
so much for getting in GGI today. I put an online order in at .20 at the open and it did not go through. guess the guy that has to transmit the orders through to Canada didn’t show up yet. I have traded before on Thanksgiving, this is frutrating.
Comment by dave — November 27, 2014 @ 6:38 am