Gold is slightly firmer today, though it’s off from its high of the day ($1,602) thanks to a stronger-than-expected U.S. jobs report..as of 6:10 am Pacific, the yellow metal is up $3 an ounce at $1,591..Silver has gained 13 cents to $27.26…Copper is up slightly at $3.33…Crude Oil has gained just over $1 a barrel to $88.31 while the U.S. Dollar Index is down one-third of a point at 82.97…
HSBC Predicts $1.900+ Gold By Year-End
Gold could be one of the few assets to profit from the political and economic turbulence in the U.S. as the “fiscal cliff” approaches, potentially creating a rally in the precious metal later in 2012 for it to reach $1,900 per ounce by the end of the year, analysts at HSBC are saying…“Economic uncertainty, geopolitical tensions and the uncertainty of the U.S. November elections are theoretically Gold-bullish,” and Gold should perform better later in the year “when U.S. growth is poor and the dollar is weak,” a new HSBC report said…“We expect prices to rally to above $1,900/oz by the end of the year…patience is the most important commodity.”
Today’s Markets
Asian shares were mixed overnight while European markets are up strongly this morning, as much as 2.7%…stock index futures in New York as of 6:10 am Pacific are pointing to a very positive open on Wall Street – thanks in part to the just-released jobs report for July…the U.S. economy closed out an otherwise weak second quarter by creating more jobs than expected, with 163,000 new positions added, but the unemployment rate rose to 8.3%…June saw 80,000 new jobs while the expectation for July was about 90,000…as the country struggles to gain growth traction, the unemployment rate held above 8% for the 41st consecutive month…
Also due out this morning, at 7:00 am Pacific, is the Institute for Supply Management’s non-manufacturing index which tracks monthly changes in the services sector…economists polled by Briefing.com predict the index rose in July to 52.3, up from 52.1 in June…reading above 50 indicates expansion for the sector…in addition, JP Morgan will release its latest global services and global composite purchasing manufacturers’ indexes (PMI) at 8 am Pacific…
Canadian Markets Closed Monday
Don’t forget, Monday is a civic holiday in Canada and Canadian markets are closed…
Canadian Dollar Update
What we find particularly encouraging about commodities is how well the Canadian Dollar is holding up despite all the gloom-and-doom of pending economic armageddon…the Dollar is trading in an upsloping channel with very strong support at 99 cents (the EMA-20 and the 200-day SMA)…the loonie is showing the potential of gaining momentum during this third quarter…
Venture Exchange Chart Update
Despite yesterday’s 16-point decline to 1174, the outlook for the Venture Exchange continues to be more upbeat these days with the general belief that the Index is “crawling along a bottom” and just needs a catalyst or two to break out above 1200…we are seeing some technical progress…below is an updated chart from John that shows, among other things, a squeeze in the bollinger bands which typically precedes volatility..buying pressure is increasing and RSI is in sync with price support…patience is the key…
Northern Gold Mining (NGM, TSX-V)
A situation worth keeping an eye on, over both the short and longer-term, is Northern Gold Mining (NGD, TSX-V) which continues to show promise with its Garrison Gold Property (two deposits) 100 kilometres east of Timmins…below is a 2.5-year weekly chart from John…
Rainbow Resources (RBW, TSX-V) – The Waiting Game Is Over
The wait is over, and the sparks are ready to fly…Rainbow Resources (RBW, TSX-V) has received the much-anticipated drill permit for its highly prospective International Silver Property, the flagship of its Big Strike Project in the heart of the mineralization-rich West Kootenay region of southeast British Columbia…not only does it now have its drill permit, but Rainbow is wasting no time in launching a first-ever drill program at the International as the rig is being mobilized immediately as reported yesterday…drilling is expected to commence by the end of next week…
Drilling Into The “Honey Zone”
Rainbow will be starting with a shallow series of holes that will be taking direct aim at an impressive quartz-dominated structure that we’ve seen for our own eyes – an exposed wall of mineralization (disseminated to massive galena, pyrite and sphalerite) the length of nearly two hockey rinks and up to 8 feet high…historical reports suggest this high-grade mineralization could run…well, we’re about to find out…the drill rig is the “truth machine” but we’re confident Rainbow has an excellent chance of making a discovery given the quality of the property and the amount of work that has gone into selecting these drill targets…we don’t need to remind our readers that the last company we closely followed with property in British Columbia became a 10-bagger after we first introduced it and was taken out by New Gold Inc. (NGD, TSX) last year – Richfield Ventures made a major Gold-Silver discovery in the Blackwater District…GoldQuest Mining (GQC, TSX-V), meanwhile, another one of our favorites, has skyrocketed more than 20-fold since late May on a major discovery in the Dominican Republic…all an investor needs to make money is one BIG winner to more than make up for a few losers along the way in the volatile junior resource market… as we’ve been detailing over the past 8 months or so, Rainbow is a very legitimate “discovery play” and it has at least three kicks at the can this summer with its International, Gold Viking and Jewel Ridge properties…
There are many things to like about Rainbow including how well it has held up over the last several months during some of the worst market conditions investors have ever seen. RBW has significantly outperformed the CDNX and its chart looks explosive, plain and simple, as John outlined in this space yesterday…major moving averages are in bullish alignment with the 50-day SMA just now reversing to the upside – an indication that the recent trend to the upside could accelerate quickly…The company’s news yesterday was short, sweet and to the point…we suspect there’s much more to come by the end of next week, and of course we’ll be following events very closely…
Note: Both Jon and John hold share positions in RBW.
Does anybody else get worried when you hear of these big bank analysts promoting gold?
Comment by Hugh — August 3, 2012 @ 5:16 am
me too hugh…. leading the lambs to slaughter????
Comment by Jeremy — August 3, 2012 @ 6:07 am
and a btw.. i posted yesterday that i am the great contrarian indicator… i sell ugd at 41…. just to lighten my losses:) its at 47 now:) but I own 4 of the 5 highest volume stocks on the cdnx… i bought can at 33….
Bert i am having doubts as to my contrarian abilities now…. hmmmmm
seems the 8.3% rate is a QE giveaway????
Comment by Jeremy — August 3, 2012 @ 6:37 am
gil – that was a good call on BGM! You’ll enjoy the long weekend. 🙂
Comment by Andrew — August 3, 2012 @ 6:51 am
RBW
We have stumbled & waited too long for the permits, now it’s a lack of confidence.
The buyers are just sitting there & seem to be in a lackluster mood & not ready to
move. Where are the RBW boys, their friends & neighbors. The market is pressing
RBW for something. Where’s the beef ? R !
Comment by Bert — August 3, 2012 @ 7:13 am
Bert im not sure what you were expecting from the permits. I don’t really see that as great stock moving news. later next week when core visuals are seen and talked about then u will see some volume and SP action. That being said, im calling a 22c close today
Comment by db — August 3, 2012 @ 8:16 am
Any comments on Richmont results?
Comment by Alexandre — August 3, 2012 @ 8:17 am
I bought NGM shares at 23 cents. Nice to finally see a breakout since the appointment of their new CEO, Greg Gibson. The drills are still turning and there is quite a few drill holes not included in the updated 43-101. Something tells me there is potentially something big coming down the pipe as we have had a steady price increase the past week.
Comment by Dan — August 3, 2012 @ 8:27 am
Grammar check………..there are quite a few drill holes not included.
Comment by Dan — August 3, 2012 @ 8:29 am
Hey Bert – if you’re not impressed, perhaps you should sell and move one – not sure what you’re expecting – 100% return on news that’s already expected. The news released yesterday was already assumed, so nothing groundbreaking here let’s not kid ourselves.
If you don’t have a ton of patinence, the ventures is not somewhere you should be anywhere near.
The beef surfaces once they release results – until then, don’t hold your breath.
Enjoy the weekend kids – my guess is RBW closes at 21 today and cracks 250k in volume.
Comment by alex — August 3, 2012 @ 8:33 am
DB – Bert im not sure what you were expecting from the permits.
Bert – Don’t tell me you didn’t expect a boost in stock price with the permit(s)in hand.
I wasn’t thinking a dollar, instead 0.05… Please be reminded, they wined, dined
a bunch & brought a bunch to their site, so i am stressing, it didn’t rub off.
Anyway, i will take your 0.02. R !
Comment by Bert — August 3, 2012 @ 8:40 am
Dan – NGM is similar in many ways to GBB but GBB looks to be bigger yet NGM is triple the Mcap. Even pre NGMs recent PEA they have never slumped to GBBs present level. Has anyone an idea why?
Comment by Rosco — August 3, 2012 @ 8:55 am
DB
Correction my post should have read 0.22 instead of 0.02.
Comment by Bert — August 3, 2012 @ 8:56 am
RBW will go up for sure…. one day will be a rocket move! The permit is now in place and therefore, real numbers will be coming up later. If you do not enter the play, you will miss it….. 20 cents now …. but will not stay any longer. Make up your mind… buy it or just watch the play! GQC as I predicted yesterday… it has gone up. Good show….
Comment by Theodore — August 3, 2012 @ 9:15 am
Simple Rosco. Management.
Comment by Dan — August 3, 2012 @ 9:33 am
Just heard through a source there’s “intense” activity up at the International this weekend, with the driller already on site and there right thru the long weekend. Johnston apparently is also showing up. Interesting – this may heat up on the ground sooner than we think.
Comment by Jon - BMR — August 3, 2012 @ 9:47 am
Excellent news Jon. My guess is those drills will be turning long before next weekend!
Comment by Dan — August 3, 2012 @ 9:51 am
Encouraging to hear that things are moving quickly, the long weekend is a working weekend at the International!
Comment by Jon - BMR — August 3, 2012 @ 9:55 am
About RIC from a different site. Not validated by this poster.
CEO Carmel bought 10,000 shares at 5.72 on the open market according to canadianinsider.com. “onepunishaa” was correct in pointing out that it was the new CEO Carmel NOT Chairman Chamandy. Canadian Insider also lists as acquisitions by “grant of options” far larger numbers of shares at prices ranging from 6.57 to 11.51 for Chairman Chamandy, Director Scherkus and CEO Carmel.
Comment by Alexandre — August 3, 2012 @ 10:23 am
Making up for lost time….i like it!
Comment by db — August 3, 2012 @ 10:30 am
Something just didn’t seem right about RBW today. With the assistance of a friend,
we have come to the conclusion, that some of the selling MAY indicate, someone could
be gathering in some cash, to participate in the financing. Stranger things happen. I
am right some of the time. R !
Comment by Bert — August 3, 2012 @ 12:21 pm
Be positive, Bert, it was a banner day for RBW on big volume which indicates more interest. I suspect volume will reach even higher levels next week. You are indeed right some of the time, but who knows in this case…I saw that Canaccord was an aggressive seller today, and I made some inquiries about that as I haven’t noticed them that much in the market recently…no one had any clue who it might be, and didn’t seem concerned…a person has one reason to buy – the stock is going up, and a multitude of reasons to sell…at some point in August I’m sure RBW will be raising a little more money – we can count on that as they have lots to do – but they also have some very well off backers in Alberta who don’t need to sell stock to partake in a financing….I think more likely this was just someone who wanted to free up some cash for whatever…kind of a stupid time to do that IMHO with drilling starting next week….I added another 15K or so to my total today between .20 and .205…the volume was great and when you have that kind of activity, offers will come into the market….what was impressive is that they were all taken up gradually…this is poised for a breakout next week…
Comment by Jon - BMR — August 3, 2012 @ 12:43 pm
Strong buy GQC … closed at $1.61. World Class hole ! For sure, there are a lot of work to be done but this share will continue to shine for another breakthrough.
RBW closed at 21 cents representing a 7.7% rise with increased volume. (My expectation is 10% rise) Keep up the good work and you will see over a million shares turnover anytime! GBB … do not look at it now. Hold you buy order now and I do not mean that I will not look at it again. Not the right moment now. If you really want to buy, try SFF… this one is 25% lower than I expected… means 18 cents will be a more reasonable value.
Comment by Theodore — August 3, 2012 @ 12:47 pm
“kind of a stupid time” to raise cash? It is always best to sell when other people are buying. Rbw is a long shot at this point. Could hit, could not, even in the “honey” zone
Comment by Alvin — August 3, 2012 @ 3:42 pm
Jon – Be positive, Bert, it was a banner day for RBW on big volume which indicates more interest.
Bert – I can’t be positive for the sake of being positive, your readers will jump all over me.
I suppose i don’t have to post, but why should i stop doing something i like. I quit
twice but here i am…I will give you my promise though, that i will be positive when
the stock is positive. It appears you look at trading a little different than me, a big
volume day with very little uptick, tells me the sellers had control for most of the
day. Although the stock closed at 0.21, the closing offer was 0.205.. I am positive
over the longer term, but for now, i must wait for whomever, to do their thing. Have
a good weekend. R !
Comment by Bert — August 3, 2012 @ 4:03 pm
AOX- had a good day. Low Volume but up 5.5c (23.9%). Im hearing there is a board member meeting in about 2 weeks at the potential JV property in Nevada. Things could get interesting later in the month…
Comment by db — August 3, 2012 @ 6:46 pm
I have a large position in rbw but I donot see this as a big volume day less than 80000 dollars was traded I think a million shares or over would be a big volume day for this stock.Just my thoughts
Comment by gil — August 3, 2012 @ 7:38 pm
New Brunswick: Rated # 1 mining jurisdiction, puts spotlight on Great Atlantic Resources (TSXV: GR) – a promising exploration play: http://tsxv.net/display.php?M=1138169&C=d1e203445815f6582edf749597c72c70&S=978&L=119&N=918
Comment by Andrew — August 4, 2012 @ 3:50 am
Alvin is correct to say that they may not hit even in the “honey zone”. It is normal to commence exploration drilling in exposed mineralisation and often the results disappoint. I’m not being negative, just realistic. In the current market conditions we have seen that it takes excellent results to generate any degree of volume and SP gain. The sampling by MMT was not anything special, so really we are relying on historical data.
Comment by Andrew — August 4, 2012 @ 7:18 am
I would agree, Gil. The big volume hasn’t even started yet.
Comment by Jon - BMR — August 4, 2012 @ 8:16 am