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Gold continues to push higher, hitting the Fibonacci 50% target ($1,453) on a rebound as John charted last weekend…if this level is surpassed on a closing basis in the near future, and the chances are good in our view that it will be, then the next resistance area is $1,484…as of 7:10 am Pacific, bullion is up $20 an ounce at $1,451…Silver is 62 cents higher at $23.78…Copper has added 8 pennies to $3.24…Crude Oil has gained 13 cents to $91.56 while the U.S. Dollar Index is off its lows of the day but still down over one-tenth of a point at 82.77…

Short-covering, weakness in the U.S. dollar, the prospect of a rate cut by the ECB next week, and reports of continued increased physical buying are all factors contributing to Gold’s rebound this week as bullion emerges from temporarily deeply oversold conditions…traders are also citing support from central bank buying after International Monetary Fund data showed that Russia, Kazakhstan and Turkey had continued to add to their holdings in March…

Below is an updated 6-month TSX Gold Index chart which has formed a bottom, for the time being, at 183…a strong bullish candle formed yesterday, accompanied by impressive volume…as we mentioned Tuesday, the best way for speculative investors to play this rebound is through the HGU (Horizons Bull Plus ETF for the S&P/TSX Global Gold Index) which was a particularly attractive buying opportunity Tuesday when it pulled back into the $2.80’s…it jumped 13% yesterday as the TSX Gold Index climbed nearly 7%…John has a chart for the HGU below the Gold Index chart…these are very good “awareness” charts as they clearly show where strong resistance is on both…the previous support band between 225 and 240 is going to be the problematic area for the Gold Index, while the HGU should be expected to run out of steam if and when it approaches the previous channel support where it broke down from earlier this month…bullion, of course, will face stiff resistance at and immediately below $1,500…the Gold Index is currently up 3 points at 207 (there should be support now at 200) while the HGU has climbed another 12 cents to $3.38…

TSX Gold Index 6-Month Daily Chart

HGU 1-Year Daily Chart

Today’s Equity Markets

Asian markets were mixed overnight with China’s Shanghai Composite falling 19 points to 2199 while Japan’s Nikkei Average gained 83 points to 13926…investors will be watching Bank of Japan chief Haruhiko Kuroda tomorrow for signs of any further stimulus as the central bank meets for the first time after unveiling a blockbuster easing program earlier this month…European shares are flat in late trading overseas, while North American markets are up slightly through the first hour of trading today…as of 7:10 am Pacific, the Dow is 39 points higher at 14716…a batch of better-than-expected earnings came out this morning along with an upbeat jobless claims report…the TSX has added another 40 points while the Venture is up 2 points at 954…

Probe Mines (PRB, TSX-V)

A very interesting situation at the moment is Probe Mines (PRB, TSX-V) which is down almost 30% this month, thanks to the plunge in Gold…as luck would have it, Probe issued an important news release Friday, April 9, when Gold started its dramatic plunge…Probe, blessed with $30 million in its treasury as of January 31, reported a series of drill results from its Borden Lake Project in Ontario April 9 that featured a high-grade step-out intercept of 25 metres grading 4.6 g/t Au 500 metres along strike from the previous limits of the deposit (southeast area, interval depth between 358 and 383 metres)….the company also expanded near-surface mineralization elsewhere…the deposit remains open in all directions, and the latest resource estimate showed 3.7 million ounces in the indicated category (112.8 million tonnes grading 1.02 g/t Au) and 625,000 ounces in the inferred category (18 million tonnes grading 1.08 g/t Au) at a cut-off grade of 0.5 g/t Au…the scope of this project is changing significantly with a focus toward high-grade resources that may persist for a considerable distance along strike, as Probe reported April 9 and earlier…more results from winter drilling are on the way…at yesterday’s closing price of $1.16, Probe’s market value is a modest $78 million…the company not only has an open-pit resource, but a good chance of pulling together a high-grade underground opportunity…this is shaping up to be a world class deposit, and it’s surrounded by all the necessary infrastructure in a safe jurisdiction…technically, Probe appears to have found support in the immediate vicinity of its 1000-day moving average (SMA), currently at $1.20, as it did last year at 90 cents and in 2010 around 30 cents…once resistance around the 10-day SMA ($1.25) is overcome, this could move north again in a hurry – particularly if the Gold price continues to rebound…as always, perform your own due diligence…PRB opened 4 cents higher at $1.20 this morning and is currently up 6 cents at $1.22…

Rainbow Resources (RBW, TSX-V)

Given current market conditions, it’s encouraging to see that Rainbow Resources (RBW, TSX-V) has completed the first tranche ($345,000) of its recently announced private placement as the company prepares to resume exploration at the Gold Viking and Jewel Ridge properties where promising discoveries were made last last year…like almost every other junior resource stock, RBW has been under pressure recently…the company, however, is determined to push ahead and the quality of its land packages in B.C. and Nevada provide a strong foundation for future success…below is an updated RBW chart from John which provides some clear encouragement after the stock dipped to a nickel…

Note: John and Jon both hold share positions in RBW while Jon also holds a share position in PRB.