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Gold has traded between $1,672 and $1,683 so far today…as of 5:25 am Pacific, the yellow metal is up $2 an ounce at $1,676…Silver is 14 cents higher at $31.90…Copper is flat at $3.74…Crude Oil is up 65 cents at $96.82 while the U.S. Dollar Index has climbed slightly to 79.62…Gold gave encouraging signs yesterday with an intra-day reversal despite strength in the greenback and weakness in the Oil market…

Today’s Markets

Asian markets were mostly significantly lower overnight, though China’s Shanghai Composite bucked the trend with a slight gain to close at 2433…China’s central bank pumped a record amount into money markets today in an attempt to satisfy demand for cash before next week’s Chinese New Year holiday…the liquidity injection is only short term in nature and does not constitute a shift in monetary policy, but analysts said it underscores how the central bank has honed its use of open market operations in recent months to ensure a more stable funding backdrop for banks, investors and companies…European shares are higher today as investor confidence was boosted by a series of earnings releases and positive business activity data in the euro zone, helping stocks to recover from losses yesterday…troubles are certainly not over in the euro zone, though…Spain is tackling a corruption scandal, as Prime Minister Mariano Rajoy denied allegations that he received secret cash payments…in Italy, there is growing uncertainty over the outcome of the upcoming elections with former Prime Minister Silvio Berlusconi gaining ground…there are also fresh concerns over the health of the Italian banking system…stock index futures in New York are pointing toward a positive open on Wall Street after yesterday’s 130-point drop in the Dow…the Venture Exchange fell 12 points yesterday to 1217, slightly above the 50-day moving average which has provided support since early January…

Below is an updated Dow chart from John which shows the RSI(2) extreme overbought condition is beginning to unwind…more near-term consolidation can be expected as the Dow digests its impressive gains since late November…

Rainbow Resources (RBW, TSX-V)

Rainbow Resources (RBW, TSX-V) is off to a good start at its Jewel Ridge Gold-Silver Project in Nevada with a high-grade Silver discovery so close to surface, you could almost shovel it out of the ground…RBW intersected 601 g/t Ag over a 3-metre interval from 15.2 to 18.2 metres in hole JR-12-04…this argillic zone also included 1.1 g/t Au and 13.5% combined lead and zinc…Silver mineralization was continuous from surface to nearly 50 metres, grading 45.6 g/t…where there is one of these argillic zones, there is often a cluster of them…Greencastle’s 2004 drilling, surprisingly, did not assay for anything other than Gold…RBW cut wide envelopes of low grade Gold and Silver mineralization in four out of the six holes drilled at Jewel Ridge, which is exactly what they had to do…the grades are consistent with what’s expected in the area and what can potentially be mined economically…the Silver discovery throws an interesting twist into Jewel Ridge as a lot of Silver was mined historically in the area…it appears Rainbow has two deposit types at Jewel Ridge – a sediment hosted Gold system with Silver values, and a polymetallic replacement system featuring higher grade Silver plus lead and zinc…it’ll be interesting to see how this plays out with further exploration…a conceptual geological model is being prepared for Jewel Ridge which will be another important step forward for this project…Rainbow is the first company to compile all of the available historical data on Jewel Ridge into one data base…combined with the fresh drilling data, Rainbow should be able to very effectively pinpoint the best locations for Phase 2 drilling…more results are expected soon from Jewel Ridge (rock sampling plus perhaps some historical data) while final assays are also pending from Gold Viking where Rainbow has made a Gold-Silver discovery in the southern part of the property…

Blackwater – 25 Million Ounces?

Some interesting comments from New Gold Inc. (NGD, TSX) director Pierre Lassonde who apparently told reporters following a speech at last week’s Roundup mining conference in Vancouver that “There is a 50/50 chance that it (Blackwater) will be a 25 million ounce camp“…Blackwater currently hosts a Gold resource of just over 10 million ounces…Lassonde said his projections are based not only on indicated and inferred resources in the Blackwater zone, but also on additional discoveries on nearby ground including the Capoose Property…”In between,” he said, “there is a lot of interesting geochemistry”…Lassonde’s prediction bodes well for several juniors in the area including one of our favorites, Parlane Resource Corp. (PPP, TSX-V), which just recently made a drilling discovery at its Big Bear Property in a hole that’s right on strike between Blackwater and Capoose…geologically and for infrastructure purposes, it makes perfect sense for New Gold to take out Parlane which is gearing up for a second round of drilling at Big Bear in the spring…

Cap-Ex Ventures (CEV, TSX-V)

Cap-Ex Ventures (CEV, TSX-V) released a stellar maiden resource estimate for its Block 103 iron ore property yesterday, and the stock climbed as high as 50 cents before closing at 47 cents for a gain of 2 pennies on total volume (all exchanges) of 1.7 million shares…below is an updated chart from John…note the 52-cent Fibonacci level where stiff resistance can be expected…

Mart Resources (MMT, TSX-V) Chart Update

Mart Resources (MMT, TSX-V) continues to be a terrific performer and has remained in an upsloping channel since late 2011…

Note: John and Jon hold share positions in RBW.