Gold has traded between $1,294 and $1,309 so far today, just hours before the Federal Reserve’s much anticipated policy statement (11:00 am Pacific) and a follow-up news conference (11:30 am Pacific) by Ben Bernanke…most pundits expect the Fed to begin to scale back its monthly bond buying program by at least $10 a billion, a move that has been well-telegraphed by the Fed going back to its meeting in May…as a result, investors have already driven up the yield on the 10-year Treasury bond about 1.2 percentage points beyond its level in late May when Bernanke first suggested that the Fed could slow its purchases by year’s end…as of 7:00 am Pacific, bullion is down $8 an ounce at $1,302 as it continues to languish prior to the Fed’s decision…in addition, reports overnight said India has raised its import tax on Gold jewelry to 15% from 10%…Silver is off 18 cents at $21.55…Copper is up 4 pennies at $3.23…Crude Oil is 46 cents higher at $105.88 while the U.S. Dollar Index is flat at 81.16…
Keep an eye on Gold’s Fibonacci support levels – $1,307 and $1,277 – on a closing basis today…as we’ve been stating, Gold may very well go up no matter what the Fed decides as tapering has already been factored into the bullion market…the real upside for Gold is if the Fed decides not to taper just yet, or begins to scale back by only $5 billion to $10 billion and wraps that decision in very dovish language and perhaps also changes its unemployment and inflation thresholds…keep in mind, the U.S. economy has sent very mixed signals in recent months and job growth is still far from robust…so the Fed will surely proceed cautiously…unemployment has fallen to 7.3%, but that’s in large part the product of a labor force participation rate stuck at a 35-year low…moreover, the rate remains well above the 6.5% level the Fed has targeted before it will begin raising rates…inflation, meanwhile, is barely 2% – below the Fed’s 2.5% target and indicative of an economy that is not clear of a potential deflationary problem…
The Fed will also unveil its 2016 economic forecasts today, and investors will be paying close attention to that and what the Fed will say about its Federal funds target rate in 2016…the rate influences a range of consumer and business loans, and the Fed has tried to assure markets it will not move short-term interest rates anytime soon…
One issue that been overlooked recently, due to all the focus on the Fed and the Syrian problem, is the U.S. debt ceiling…expect the media to quickly turn its attention to that once the Fed issue is out of the way today…Congress and the administration must come together on the debt ceiling very soon, but history tells us any deal will be a last-minute one…the government has been bumping against its $16.7 trillion debt ceiling limit since May…its spending authority is set to expire on September 30 while the Treasury is set to lose its borrowing authority by mid-October…Gold could benefit from this upcoming showdown which is likely to produce some overall market volatility…
Today’s Markets
Asian stocks were mostly higher overnight…Japan’s Nikkei average climbed 194 points to 14505…China’s Shanghai Composite added 6 points to close at 2192…average new home prices in 70 Chinese cities rose faster in August than at any time since January 2011 despite government measures to keep property prices in check…it was the 7th straight month of price increases compared with year-earlier levels, according to data released today by the National Bureau of Statistics…
European shares are modestly higher in late trading overseas…
The Dow is down 14 points after posting gains in 6 out of the last 7 sessions…the TSX is off 24 points while the Venture is up 2 points at 937…Mike England’s Caribou King Resources Ltd. (CKR, TSX-V) is the runaway volume leader so far this morning, hitting a new 52-week high of 10.5 cents on total volume (all exchanges) of nearly 5 million…graphite plays remain hot…CKR announced this morning that it has discovered graphitic marble and sulphidic blocks on its 100% owned Calumet graphite prospect contiguous to Canada Carbon Inc.’s (CCB, TSX-V) Miller Property…
Canada Carbon Inc.(CCB, TSX-V) Chart Update
Canada Carbon Inc. (CCB, TSX-V) continued to push higher in the opening minutes of trading today after busting through technical resistance yesterday at 30 cents…CCB hit a new 2-year high of 35 cents before being pushed back to 30.5 cents…as of 7:00 am Pacific, it’s down 2.5 cents at 31 cents…last week the company released preliminary airborne survey results that identified multiple anomalies over its 21 sq. km Miller hydrothermal lump/vein graphite property in Quebec…final data maps are expected by early next month which will allow CCB to prioritize a range of targets to model…momentum is in this stock’s favor at the moment but keep in mind there will be continued volatility with CCB as witnessed again this morning…we saw an attempt to test Fib. resistance at 36 cents…a re-test could certainly occur…RSI(14) was in overbought territory at 80% after yesterday’s close…as always, perform your own due diligence…this clearly remains highly speculative and more needs to be understood with regard to the property and its potential…below is a 3-year weekly CCB chart from John…
Teuton Resources Corp. (TUO, TSX-V)
Teuton Resources (TUO, TSX-V) recently staged a confirmed breakout above 15 cents which should now make that level strong new support…Teuton is a large landholder in B.C., and we initially brought this situation to our readers’ attention during the 1st half of last month when the stock was trading in the 8 to 10-cent range…the company has now completed a drill program at its High Property, immediately south of Pretium Resources‘ (PVG, TSX) Brucejack Property, and results are expected in about a month…in the meantime, the company released some high-grade grab samples yesterday from its King Tut zone where near-surface drilling was recently carried out…speculation could drive TUO further in the weeks ahead but those results will need to exceed expectations in order for the stock to sustain its current uptrend…another positive factor in TUO’s favor recently was the sale of its remaining interest in the Tennyson Property to Brigade Holdings Ltd. for $7 million (cash plus shares)…TUO is quiet so far this morning (no trading) after closing yesterday at 16 cents…
North American Nickel Inc. (NAN, TSX-V)
As expected, North American Nickel (NAN, TSX-V) is beginning to heat up in anticipation of assay results from its newly-named Imiak Hill conduit complex located on the northern part of the company’s 100% owned Maniitsoq Nickel-Copper-Cobalt and PGM project in southwest Greenland…NAN has reported impressive intercepts of sulphides from close to surface down to over 60 metres deep with the system open at depth…potential grades look very good given the sulphide percentages…the big question is how much tonnage could be in that system…NAN has been encountering resistance at 30 cents which it finally overcame yesterday as it closed at 31.5 cents…that breakout requires confirmation today as shown in John’s chart…buy pressure is increasing and RSI(14) is showing up momentum, so the outlook appears positive…as always, perform your own due diligence…this is an interesting story and the company has done an excellent job at identifying this early-stage discovery and tackling the property in a way others failed to do so in the past…the area offers plenty of untapped potential…as of 7:00 am Pacific, NAN is up 1.5 cents at 33 cents…
Note: John, Terry and Jon do not hold share positions in CCB, TUO or NAN.
Hi Jon,
Any luck with azc?
I think that you should feature it as a recommendation.
Comment by Frank — September 18, 2013 @ 6:44 am
Still working on it, Frank….
Comment by Jon - BMR — September 18, 2013 @ 7:01 am
Sure is quiet from PGX and GGI.Hearing any rumours about the PGX drilling,Jon?Anything from your end on DBV financing and camp setup,or GGI plans on the Grizzly?The trading volumes have all but dried up.It’s like the information outflow is in lockdown.
Comment by Jim Niles — September 18, 2013 @ 7:20 am
Money beginning to pile into NAN.v before possible drill results next week.Are we looking at the next Voisey Bay?You gotta like what’s going on here.Thanks for the chart this morning.I was going to ask for John to do another one with the Fib Resistance points.With results from three ares to report,we should blow right through those points,as we’ll be receiving them in steps.
Comment by Jim Niles — September 18, 2013 @ 7:30 am
Hi Jim
The FIB. Target level for NAN is at 51c. This will be shown on my next chart.
Comment by John (BMR) — September 18, 2013 @ 7:43 am
Thanks,John!
Comment by Jim Niles — September 18, 2013 @ 7:51 am
I would suggest we are grasping for straws when trying to determine
why Gold is being sold off. First i heard it was the Syria turmoil,
the next thing i heard it was possible tapering, now i have read it
may be India, which has raised it’s import tax on Gold. I’m not
suggesting it’s BMR, who are grasping for straws, after all they are
only bringing forward what they hear or read. As for India, although
a few percentage point increase will irritate the dealers, it will not
deter them, otherwise they go out of business, so whatever it may
be, i would suggest that something crooked is going on. Call me
suspicious if you want, but every single day, there is someone out
there, trying to find a way to scam you. Gone are the days when
folks bend over backwards to help others. There are only 2 honest
foks left, Jon & me, but i have my doubts about Jon. (the last
sentence was written with joking in mind, so forgive me Joh, if
your name was the first to come to mind) . R !
Comment by Bert — September 18, 2013 @ 9:29 am
How wrong were the masses, NO TAPERING
Comment by Bert — September 18, 2013 @ 10:02 am
No taper, good news for gold and silver
Comment by Greg — September 18, 2013 @ 10:03 am
Total manipulation by fed and JPMorgan over the past week to keep the gold price down, they knew they would not taper and wanted gold price down before they announced, gold should be over 1500 bucks right now easy.. all the experts I read keep saying that the fed and the banks cannot keep manipulating the gold and silver price, sure would be nice to see that in my lifetime, lol
Comment by Greg — September 18, 2013 @ 10:14 am
NO TAPERING!!! CCB, CKR, AND NOW ‘DGO’ JOINS THE ACTION! DGO IS THE TIGHTEST STOCK OUT THERE! WAS ROLLED BACK 20 TO 1 SO, NO RESISTANCE OUT THERE!
Comment by STEVEN — September 18, 2013 @ 10:19 am
stockwatch.com/News/Item.aspx?bid=Z-C%3aPGX-2106668&symbol=PGX®ion=C
Comment by Frank — September 18, 2013 @ 10:23 am
Jon, any comment regarding the news release from v.PGX today? I am quite excited to see what those assay results will be.
Comment by Steven — September 18, 2013 @ 10:48 am
FED UPDATE BY BMR WOULD BE NICE TONITE!!!
Comment by STEVEN — September 18, 2013 @ 11:13 am
Good news for our markets. The news from pgx was interesting. I of course don’t understand the meaning etc. of rock encountered but wait for Jons news on that. A couple of things I did find interesting. They started drilling early on, they did the heli survey over all of the claims that they have plus adjacent, could that be over some ggi claims. They also said that they will be drilling all found areas in 2014. Could that mean that they will wait out snow season and do their due diligence over winter months. After all they have not yet stated that drilling will carry on over winter months. Also not a peep out og ggi. A couple of possible red flags. Just my opinion. Richard l
Comment by richard l — September 18, 2013 @ 12:41 pm
I think we all can believe Jim Sinclair,as he has been saying for a while now that it is QE to infinity. Any talk of taper is put out there on purpose to try and keep the gold price down and from the stock market really getting crazy and running away to the upside and creating a huge bubble. After today it is evident that the Fed will never, or should I say CANNOT stop QE. If Janet Yellen is announced as the next Fed Chair, gold will really take off as she is even more dovish than Bernanke according to the people who know her and her policies.
I hope to see gold follow up over the days to come with a move higher back over 1425. However you never know what JPMorgan et al will do….
Comment by Greg — September 18, 2013 @ 1:04 pm
Maybe GGI is going to release the NR tomorrow, it jumps 3 cents right before the close?
Comment by Greg — September 18, 2013 @ 1:09 pm
VERY significant NR from PGX today, we’ll go into some detail tomorrow. And some phenomenal core photos. 22 altogether. What today’s news confirms is that mineralization at the Sheslay extends well beyond the deepest hole ever drilled at this property. All holes drilled so far at the Sheslay have intersected “highly altered, strongly veined and pervasively mineralized (pyrite, chalcopyrite and magnetite) medium-grained hornblende monzonite and andesite.” In layman’s terms, expect some very good – and perhaps STELLAR – results during the first half of October when initial assays are due. Knowing how this group operated with Richfield during the Blackwater discovery, they would not put out this type of news release – and post nearly 2 dozen core photos – unless they were very confident in what they have. More tomorrow.
Comment by Jon - BMR — September 18, 2013 @ 2:35 pm
If it ain’t one thing, it’s another. We can forget Syria, we can forget India & we
don’t have to worry about tapering for awhile. We now concentrate on the U.S. debt
ceiling & Obamacare & it appears the 2 parties are preparing for the fight of their lives.
Whatever, we did have a good day today & gives us an idea of what can happen in a short
period of time. Bernanke spoke at 3:30 Nfld time & in 2 hours, the gold shorts covered
& we rose by over 50 pts. How about the Venture, it gained over 17 pts. in the same period
of time & with any luck, we should have a good day tomorrow.. R !
Comment by Bert — September 18, 2013 @ 3:03 pm
Did I just read a positive comment from Bert? Stoked to see how things react tomorrow.
Comment by cam — September 18, 2013 @ 4:43 pm
Jon
do you know how many holes PGX is going to drill in this first phase, it says 6 so far on this target and it sounds like the other targets will be drilled in 2014. Just trying to fiqure out if they will be able to keep NR’s coming thru out the winter or not?
thanks
Comment by Greg — September 18, 2013 @ 5:02 pm
What we do know, Greg, is what they reported today which is exactly what we were hoping for (and expecting). Initial assays will be out during the first half of next month, as PGX had already indicated. Given the detailed drill core descriptions and the look of the core on the PGX web site (rather stunning I must say), a significant discovery is shaping up at the Sheslay IMHO. As I stated in my earlier post, the fact PGX would put this out in the manner they did today, which included nearly 2 dozen drill core photos, strongly suggests they have a high level of confidence in what they’re seeing. This is a very smart group. They wouldn’t set themselves up to look foolish a few weeks from now. As for GGI, they are clearly gearing up for something significant – one of our readers pointed this out the other day, there are changes every day now on the GGI web site. And this afternoon I noticed pictures from the Grizzly – first time I’ve seen any on their site – including what clearly looks like impressive outcropping copper mineralization. So things are happening on their end and news must be very imminent. I don’t believe for a minute that they are just going to sit back and ride PGX’s coattails. My prediction – they will get aggressive and attack the Grizzly. We have said this all along – this story is going to heat up in a major way. And if PGX hits a glory hole, look out – both PGX and GGI will explode like crazy, especially given this improved market.
Comment by Jon - BMR — September 18, 2013 @ 6:04 pm
Thanks Jon
Comment by Greg — September 18, 2013 @ 8:02 pm
Cam – Did I just read a positive comment from Bert?
Bert – Yes you di, but be advised, i won’t be positive, just for the
sake of being positive. I notice that i differ from some. I post
no matter what & it is a good way to rid oneself of whatever makes
one frustrated. I have noticed you can tell, when we are having a
bad day, by the lack of postings, so the difference between some
of us is, i come forward & others stay away. As i type, 2 hours
before markets open, i notice Gold is up $58.00. Hopefully this
will be the start we have been waiting for & those who stay away
during hard times, will show their enthusiasm on a daily basis. R !
Comment by Bert — September 19, 2013 @ 3:25 am
Well, another week gone and no news from DYG and their permits. With the .02 ask now sitting over one million, I am assuming other shareholders are tired of waiting too. Oh well, maybe they’ll get their sh*t together for next spring (which will give us time to accumulate this stock at .01 or even .005 cents).
Comment by Tony T — September 19, 2013 @ 5:08 am