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Gold seems ready to finish the month of May on a very bullish note…the yellow metal is breaking out above resistance at $1,530 this morning…a move to new highs next month seems likely given the “feel” of this market right now and the strong technicals…the turnaround in the CDNX also suggests something is brewing in Gold…as of 7:15 am Pacific, Gold is up $15 an ounce at $1,534…Silver is 81 cents higher at $38.00 while crude oil has gained 69 cents to $100.92…Goldman Sachs’ reversal on its outlook for oil prices over the next six months is bizarre – they’ve gone from bearish to bullish in just six weeks, making one wonder why they made their April call in the first place…the U.S. Dollar Index is off over one-third of a penny to 75.11…real action on the U.S. deficit problem is unlikely until the 2012 presidential election, a stalemate that is helping make the stock market a better bet for investors than Treasurys, Pimco’s Bill Gross told CNBC this morning…G-8 leaders say a strengthening global economy will pave the way to cuts in the debt built up during the recession that followed the 2008 financial crisis…Europe vowed to fight its fiscal woes with “determination” while President Barack Obama promised a “clear and credible” U.S. deficit-reduction strategy…Japan was allowed to put off savings measures until its economy rebounds from the March earthquake and tsunami…“The global recovery is gaining strength and is becoming more self-sustained,” according to a statement after the two-day summit in Deauville, France…without mapping out binding targets, the leaders pledged to “remain focused on the action required to enhance the sustainability of public finances”…the G-8 also stated, ““The sharp increase in commodity prices and their excessive volatility pose a significant headwind to the recovery”…the truth, of course, is that the greatest underlying threat to the economic system across the developed world is government which has also grown insanely too big…a loss of confidence in government is clearly one of the factors driving Gold and even commodities in general…last weekend, we predicted the strong probability of a major reversal in the CDNX and indeed that has been confirmed after three trading days this week with the Index closing at 2072 yesterday, a 6% gain from last week’s important low of 1957 which was the bottom of a 20.6% correction that lasted 51 trading days…that correction was almost identical to the one in 2005…the early days of this reversal are also very similar so far to the recovery pattern in 2005…from its May low through the end of December in 2005, the CDNX climbed a whopping 40%…whether we see that this time remains to be seen but clearly the bulls are back in control for now and June is shaping up to be a very positive month…John’s updated chart this morning shows 2100 as the next level to watch in this new uptrend…

The CDNX is up another 14 points to 2086 through the first 45 minutes of trading this morning…yesterday we gave a list of quality situations for our readers’ due diligence, stocks outside the BMR model portfolio that have strong potential to be market leaders in the days and weeks ahead…those include Silver Quest Resources (SQI, TSX-V) which broke out yesterday on 3.6 million shares to close at 92 cents, a gain of 14%…it’s up another 6 pennies at the moment to 97 cents…Silver Quest holds 25% of the northern portion of Richfield Ventures’ (RVC, TSX-V) Blackwater deposit, a project we have followed closely and have been very bullish about since late 2009 (Richfield has gained nearly 900% since we introduced it to BMR readers in December, 2009)…Currie Rose Resources (CUI, TSX-V), which we started covering when it was around a dime last September, is one of our top picks in the under-20 cent category going into the month of June…the company’s Sekenke Project in Tanzania runs in between and surrounds two former producing high-grade mines and offers exceptional exploration potential which Currie Rose is soon going to test with a 5,000 metre Phase 1 drill program…we have studied Sekenke in detail and it’s one of our favorite properties – a significant discovery at this project this summer is clearly within the reach of CUI’s geological team headed by Michael Griffiths from Australia…we’ve spoken with Griffiths and he’s like a kid in a candy store when he looks at Sekenke…so the fundamentals are in place here – what about the technicals on the stock?…that’s where it gets even more interesting…John, our wizard of charts, was bang-on with the CDNX reversal and he sees patterns (including heavy accumulation since the end of March) that suggest Currie Rose is gearing up for a major breakout…it’s 50-day SMA is also just now beginning to reverse and that’s a sure sign of fresh bullishness coming into this stock…

As of 7:15 am Pacific, Currie Rose is up a penny at 18 cents on strong volume…Osisko Mining (OSK, TSX-V) has taken an interest in Threegold Resources‘ (THG, TSX-V) Adanac Project which should be a huge wake-up call for Gold Bullion Development (GBB, TSX-V) investors…Adanac is on strike with the LONG Bars Zone and the fact Osisko has cut a deal to earn as much as a 70% interest in Adanac suggests they are keeping a very close eye on developments at Granada…OSK has acquired a 9.2% stake in THG by buying shares on the open market, and a potential OSK takeover of both THG and GBB down the road cannot be ruled out…GBB is off half a penny at 41 cents – time to back up the truck and load up on GBB again…Richmont Mines (RIC, TSX), which is looking very strong both technically and fundamentally, is up another 28 cents this morning to $8.50…Richmont is turning into an earnings machine and we wouldn’t be surprised to see RIC reach new all-time highs as early as next month…iSignMedia Solutions (ISD, TSX-V) continues to trade in a bullish symmetrical triangle and is currently up a penny at 46 cents…Spanish Mountain Gold (SPA, TSX-V) is moving (up a nickel at 64 cents) and Gold Canyon Resources (GCU, TSX-V) is looking strong as well, up 3 pennies at $3.23…