BullMarketRun.com

Gold is firmer this morning to begin the new week, climbing as high as $1,727...as of 4:30 am Pacific, bullion is up $10 an ounce at $1,724…Silver is up 39 cents to $32.70…Copper is 4 pennies higher at $3.49…Crude Oil has gained $1.01 a barrel to $87.93 while the U.S. Dollar Index has retreated over one-tenth of a point to 81.04…

Gold’s next significant resistance is around $1,740 which also coincides with the 50-day moving average (SMA)…it needs to bust through that area to give the bulls fresh momentum…the U.S. Mint has sold 56,000 ounces of Gold coins in November, according to data on the Mint’s web site…at that pace, total sales this month would be 106,900 ounces, up 161% from a year earlier…

Today’s Markets

Japan’s Nikkei Index climbed to a two-month high overnight as Asian stocks were stronger across the board, supported by hopes U.S. politicians can overcome an imminent fiscal crunch…the yen also fell to a 7-month low against the dollar on expectations that a new government chosen in next month’s election could pump large amounts of stimulus cash into the economy…the Bank of Japan is under more pressure for action ahead of announcing its policy decision tomorrow as polls suggest Japan’s main opposition party is headed for victory…a call by Liberal Democratic Party (LDP) leader Shinzo Abe for the Bank of Japan to further stimulate the ailing economy, including pushing interest rates to zero or below zero, has weakened the yen and boosted the shares of Japanese exporters…European markets are very strong this morning, up by more than 1.5%, while stock index futures in New York are pointing toward a bullish opening on Wall Street…it’s a shortened trading week in the United States with Thanksgiving on Thursday and a half-trading day Friday…the Venture Exchange begins the new week at 1235…it’s right in the middle of an important support band between 1215 and 1253…

Inflation Is China’s Main Long-Term Risk:  Central Bank Governor

Inflation is the main long-term risk for China as the economy makes a transition from a planned economy to a market-based one and deeper financial reforms are needed to complete the move, central bank governor Zhou Xiaochuan said Saturday…”There is a general tendency for overheating impulses during China’s economic transition process and we should always stress the need to control inflation,” Xiaochuan told a financial forum as reported by CNBC…”In most occasions, pressures from various sides is to loosen monetary policy to spur growth, but there is less push for preventing economic overheating and inflation,” he said…a main feature of China’s economic transition is that many entities, including local governments, are not subject to “soft constraints” which means they tend to spend more and fuel economic overheating, he added…China’s annual inflation eased to to 1.7% in October from 1.9% in September after a two-year fight by the central bank to bring it back under the government’s 4% target after the effects of a 2008-09 economic stimulus program lifted CPI to a three-year high of 6.5% in July, 2011…

Silver Headed Toward $50 An Ounce In 2013 – Thomas Reuters GFMS

A rebound in investment demand, as a result of continuing loose monetary policies around the world, is expected to drive Silver prices toward and possibly over $50 an ounce in 2013, said the consultancy Thomson Reuters GFMS in its interim Silver market review released last Friday…the report described investment demand as critical in filling what otherwise would be a gap between rising supplies and falling fabrication demand…the consultancy said investment interest in Silver has picked up since mid-August, highlighting growing interest in Gold and other precious metals, following a series of announcements on looser monetary policy from several major central banks…still, the new wave of investment may remain smaller than in early 2011, Thomson Reuters GFMS said…“We wouldn’t be surprised also if Silver’s gains outpaced Gold’s, not only as the usual result of lower liquidity but also as memories of early 2011’s painful losses (in silver) continue to fade,” said Philip Klapwijk, global head of metals analytics for Thomson Reuters GFMS…the consultancy said this would be further aided by some tentative improvement in the global economic outlook, which would portend improved prospects for industrial fabrication…“In the consultancy’s view, this and the growth expected, especially in value terms, of investment would be sufficient to drive the Silver price to around the $36 mark before end-2012, although the attainment of a level similar to or just above its all-time high is unlikely to take place until some way into 2013,” Thomson Reuters GFMS said…

Silver Short-Term Chart

Silver closed at its EMA(20) Friday which is now providing support at it has reversed to the upside after being in decline for almost the entire month of October…the next major resistance is $33.30 as shown in John’s 9-month daily chart below…

Silver Long-Term Chart

No change in Silver’s long-term technical outlook…the “Wave 3” move continues to progress well…RSI(2) may have found support at the 50 level and could be ready to move higher again…

Gold Bullion Development (GBB, TSX-V)

Gold Bullion Development’s (GBB, TSX-V) LONG Bars Zone at the Granada Gold Property is finally starting to flex its muscles as GBB released an updated resource calculation last Thursday that outlined a Gold resource of 2,638,000 ounces (47,475,000 tonnes grading 1.05 g/t Au in the measured and indicated categories, and 29,975,000 tonnes grading 1.07 g/t Au in the inferred category, at a cut-off of 0.40 g/t Au)…with an estimated Gold recovery of 94%, and the mineralized system still open in ALL directions, the LONG Bars Zone still offers plenty of upside…GBB seems to have the right technical group to handle the project, SGS Canada Inc., after a disappointing engagement with GENIVAR that slowed the project down…while the share price didn’t budge on Thursday’s news, we encourage investors to remain patient as we believe GBB has finally found its footing with this resource estimate after a rocky period that began nearly two years ago (coinciding with the beginning of a bear market)…technically, as John showed in a recent chart, GBB’s long-term direction appears to have swung positive…it’s important to note that the 100-day moving average (SMA) reversed to the upside in September which ended a long decline…some dilutive financings have created some overhead resistance but that’s something the market can sort out in the coming months…if Frank Basa can come out swinging as 2013 begins, happy days may return again for GBB shareholders…

Rainbow Resources (RBW, TSX-V)

Markets were rocky last week and as a result, Rainbow Resources (RBW, TSX-V) – like most stocks – was like a ship in the sea getting tossed around by high winds and powerful waves…the reality was different, however, on the ground where Rainbow continued to tackle the Jewel Ridge Property in Nevada after completing drill programs at the International and Gold Viking properties in the West Kootenays…while there’s never a “sure thing” in exploration, we’re as confident as ever with Rainbow as far as the big picture is concerned given the latest news, the geological merits of each property and the skill of Moose Mountain senior geologist Bob Morris…he’s highly respected in the industry and one of the key reasons we put our faith in Rainbow a year ago…few companies have been as aggressive as Rainbow in recent months, in terms of drilling different properties, and that kind of perseverance – coupled with some geological smarts – is often rewarded…we see a very interesting situation unfolding in Nevada and the possibility of a discovery in southeast British Columbia…the market, as we reminded investors in our Week In Review yesterday, is ruled by fear and greed…fear was in control last week and took many stocks to extreme oversold conditions based on RSI and other indicators, including RBW where the RSI(2) fell to its lowest level of the year…

Happy Creek Minerals (HPY, TSX-V)

Happy Creek Minerals (HPY, TSX-V) is a play we haven’t mentioned in a long time, but we suggest our readers take a serious look at it as part of their due diligence…HPY has made good progress this year with a portfolio of six 100%-owned properties in British Columbia…most recently, the company reported continued positive results from its Fox Tungsten-Moly Property 75 kilometres northeast of 100 Mile House…the scale and grades of this discovery are thought to be comparable with some of the best tungsten mines or advanced-stage projects worldwide…the near-surface, potentially open-pit configuration and nearby infrastructure are additional positive aspects of this project…HPY closed at 23.5 cents Friday, giving it a market cap of approximately $13 million…technically, the key development to look for is a breakout above the down trendline that has been in place for a couple of years…this is critically important for confirmation of a potential “Wave 3” as John outlines in the chart below…

Spur Ventures (SVU, TSX-V)

Spur Ventures (SVU, TSX-V) has caught our eye given the fact it’s sitting on piles of cash ($30 million) and is trading at a 25% discount to that cash…this is usually a situation that demands investor patience as a company determines its best course of action, but Spur certainly has a great opportunity in the current market environment to pull off a game-changing property acquisition given its strong treasury and apparent desire to make something happen…at Friday’s 38-cent close, the company’s current market cap is only 23 million…SVU named John Morgan, a geologist with a 35-year career as a mining executive, as its new President and CEO last April and assigned him the responsibility of “executing the company’s strategy to pursue potential acquisitions in Gold, base metals or other mineral assets or businesses that are in more advanced stages of development where the balance of technical and geopolitical risk is intended to result in increased value to Spur’s shareholders within a relatively short time frame (April 11, 2012 news release)…John likes the chart given the “saucer pattern” and some other positive indicators as described below…the 300-day SMA, at 34 cents, is also slowly reversing to the upside…

Note: John and Jon hold share positions in RBW while Terry holds a share position in GBB.