BullMarketRun.com

Precious metals are weak this morning but Gold is edging closer to a bottom in our view…as of 11:10 am Pacific, the yellow metal is down $8 an ounce at $1,326 after dropping to a three-month low of $1,321…Silver is off 18 cents at 26.77 while U.S. Dollar Index is up slightly at 78.05…a drop in the UK’s gross domestic product for the 4th quarter (a 0.5% contraction vs. an anticipated 0.5% expansion) took investors by surprise this morning…the UK is the first country in the G-7 to release economic growth figures for the final quarter of 2010…the weak number will limit the central bank’s ability to fight inflation…single-family home prices fell for the 5th straight month in the United States in November, and a double-dip in house prices there is a growing possibility…the American economic recovery is by no means on solid footing which is why we expect the Fed to be as accommodating as possible for as long as possible in terms of its monetary policy…this is bullish for Gold…today marks the start of the 2-day FOMC meeting…Obama delivers his State-of-the-Union address this evening and more U.S. economic data is coming out this week…with weakness in Gold and month-end upon us, the CDNX is off 36 points at 2213…very strong support exists at 2200…another indication that we’re very close to a bottom in Gold, if we haven’t hit it already this morning, is that the TSX Gold Index has touched its 300-day moving average (SMA) for only the third time in the past year…the other two occasions were in February and late July when Gold also bottomed out…this is the time to be very bullish on Gold, not bearish…Richfield Ventures (RVC, TSX-V) has delivered another outstanding drill result from its Blackwater Project in central British Columbia…BW-106 returned 205 metres grading 2.04 g/t Au including 81 metres of 4.33 g/t Au…this hole was was collared 70 metres northeast of previously reported BW-76 and 111 metres northeast of BW-78 which also returned excellent values over considerable widths…together the three holes outline an area of about 7,000 square metres of near-surface high grade…Richfield is currently ahead 18 cents to $3.98…also out with news this morning is Currie Rose Resources (CUI, TSX-V)…CUI has optioned its Jubilee Reef Gold Project in northwest Tanzania to Australian-based Liontown Resources…the move makes sense as Currie Rose can focus on its high priority Sekenke and Mabale Hills Projects…the JV with Liontown will give Currie Rose a minimum of 23,000 metres of drilling on its properties this year which includes the 8,000 metres underway at the Scadding Gold Project near Sudbury through an option with Trueclaim Exploration (TRM, TSX-V)…Currie Rose is up a penny at 17 cents…Sidon International (SD, TSX-V) is weak this morning as it broke technical support at 16.5 cents…the stock is off 2 pennies to 14 cents…it fell as low as 13.5 cents, just slightly below its rising 100-day SMA…it’s important to point out that the last time Sidon broke below its 100-day in October, the stock held support at its 200-day and then more than doubled in value  by early December…the primary trend is still up with Sidon, based on all technical indicators, and that’s what’s important…Gold Bullion Development (GBB, TSX-V) is quiet, off a penny at 74 cents on relatively light volume…more results from the LONG Bars Zone are due soon but everything seems to be on track at Granada based on GBB’s news release last Friday…Abcourt Mines (ABI, TSX-V) is up half a penny at 17.5 cents…there is a very strong zone of technical support for ABI between 15.5 cents (the 100-day SMA) and 17 cents…ABI is also underpinned by very strong fundamentals with 43-101 resources and resources at two different properties…Cadillac Mining is up half a cent at 31 cents…it’s important to note that Richmont Mines (RIC, TSX-V) stated in a news release this morning that new drill results and an updated resource estimate for its Wasamac Property are expected by mid-February…this will have important ramifications for Cadillac as the principal structure hosting Gold mineralization at Wasamac plunges north onto CQX’s ground…we expect a major upward revision in Wasamac 43-101 resources after 20,000 metres of successful drilling by Richmont last year…GoldQuest Mining (GQC, TSX-V) is showing impressive strength and seems to be on the verge of a potential breakout…after opening down 2 pennies at 37 cents this morning, GQC is now ahead 1 penny at 40 cents, just 2.5 cents below its 52-week high…this has been the best performing stock in the BMR “group” this month…the fact GQC held its ground so well over the past month despite an acceleration in the warrant expiry date from a financing last April demonstrates perfectly the underlying fundamental and technical strength of this play…if it pushes through its 52-week high on strong volume, the next major resistance for GoldQuest will be in the low 50’s…this company has major discovery potential in the DR and a very promising Zinc-Lead-Silver project in Spain…we see big things in store for GQC in 2011…