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Gold fell as low as $1,638 overnight but has rebounded to $1,648 (essentially unchanged for the day) as of 6:05 am Pacific…Silver is off 6 pennies at $30.89…Copper is up 2 cents at $3.72…Crude Oil is 51 cents higher at $97.54 while the U.S. Dollar Index is off slightly at 80.23…this week’s holiday in China has perhaps eroded some of the physical demand for Gold which may explain bullion’s weakness yesterday as it declined by more than 1%…markets have reopened in Japan and South Korea but remain closed in China, Singapore, Hong Kong, Malaysia and Taiwan…

G-7 Rhetoric On Exchange Rates

The world’s largest developed nations reaffirmed their “commitment” not to target exchange rates in a statement today aimed at addressing concerns over a fresh round of global currency wars… in a move widely seen as an attempt to defuse tensions over recent rapid moves in the currency market, the Group of Seven countries – comprising the U.S., Canada, the UK, France, Germany, Italy and Japan – said they would “consult closely” on any action in foreign exchange markets…“We reaffirm that our fiscal and monetary policies have been and will remain oriented towards meeting our respective domestic objectives using domestic instruments, and that we will not target exchange rates,” the ministers and governors said…the G7 statement, which comes ahead of a meeting of Group of 20 finance ministers and central bankers in Moscow on Friday, avoided any direct comment with regard to Japan which has been engaging in a deliberate policy of weakening the yen…

Euro Chart Update

The bullish trend for the euro continues which is not good news for the U.S. Dollar Index which has been strengthening recently but faces stiff overhead resistance…below is a 2.5-year weekly euro chart update from John…the breakout from the cup-with-handle pattern was significant…this is a classic example of how bottoms are formed in markets, and the Venture Exchange is no different…sentiment toward the euro was incredibly negative last summer but that was exactly the time to be a buyer…

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Updated Gold Chart

Below is an interesting 9-month daily chart from John that shows Gold’s strong support band between $1,626 and $1,640, the top portion of which was tested overnight…note how the down trendline is providing resistance…a “squeeze” is developing, however, between this down trendline and the support band which means that the next month or so is a critical time for bullion…the upside fundamentals for Gold remain firmly intact but “momentum traders” have left this market for now…undoubtedly, they will return as they have in the past…

OPEC Lifts World Oil Demand Growth Forecast

World oil demand will grow faster than previously thought in 2013, OPEC said in its monthly report today, citing signs of a recovery in the world economy…consumption of Oil will expand by 840,000 barrels per day (bpd) this year, 80,000 bpd more than previously expected…

Today’s Markets

Many Asian markets remain closed for the Lunar New Year holidays but Japan re-opened with a gain of 216 points to close at 11369, just over 100 points shy of last Wednesday’s 33-month high…according to Reuters, a U.S. Treasury official voiced support for Japan’s aggressive policies to combat deflation and bolster growth…European shares are mostly higher while stock index futures in New York as of 6:05 am Pacific are pointing toward a flat to slightly negative open on Wall Street ahead of President Obama’s State of the Union address this evening…

Venture Exchange Chart Update

The Venture Exchange has declined in 11 out of the last 13 sessions and closed below the 1200 level yesterday (1196) for the first time since December 27…the support zone that now must hold is 1166 to 1190 as John shows in the 3-month daily chart below…

Big North Graphite Corp. (NRT, TSX-V)

Another graphite play for our readers’ due diligence is Big North Graphite (NRT, TSX-V) which climbed a penny-and-a-half yesterday on its highest volume day in over two months…important resistance is at 10 cents, so watch for a potential breakout above that level…the company just came out with positive news this morning (pre-market) from its Mexican graphite project which includes the Nuevo San Pedro mine…

Prophecy Platinum Corp. (NKL, TSX-V)

Below is a 6-month daily chart for Prophecy Platinum (NKL, TSX-V) which has been moving in the opposite direction of the Venture Exchange in recent sessions, gaining 16 cents yesterday to close at $1.15…the chart also compares NKL with the the platinum price…

Note: John, Jon and Terry do not hold share positions in NKL or NRT.