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Gold is under pressure again today…as of 8:00 am Pacific, bullion is off $19 an ounce at $1,267…strong Fibonacci support exists in the $1,270’s, so we’ll see if that can hold on a closing basis today…Silver is off 45 cents at $21.23…Copper is up penny at $3.24…Crude Oil is down $1.20 a barrel to $101.81 while the U.S. Dollar Index has slipped more than one-tenth of a point to 80.34…

European central banks have sold the lowest amount of Gold this year – 5-1 metric tonnes – since they agreed to limit sales in 1999, according to data from the World Gold Council…globally, central banks – which hold 18% of all the Gold ever mined – will add as much as 350 tons this year valued at about $15 billion, the Council estimates…“Central banks have lost their appetite for selling Gold,” said James Murray, a spokesman for the council. “Gold remains a hugely important part of their portfolios and this has been the case for the past few years.”

President Obama and House Republican leaders appear to be moving toward an agreement to extend the nation’s borrowing authority even as they remain at odds over terms for ending the partial government shutdown…they met for 90 minutes at the White House yesterday after House Speaker John Boehner said he would offer a measure to postpone a potential U.S. default to Nov. 22 from Oct. 17, a step back from the brink that was enough to trigger the biggest single-day jump in U.S. stocks in 9 months…

Only 18% of Americans are satisfied with the way the country is being governed according to a new Gallup poll released yesterday, the lowest satisfaction rating since Gallup started asking the question in 1971…the new low is down 14 percentage points from last month’s 32% rating recorded before the partial government shutdown began…the previous low of 19% was recorded in September 2011 shortly after DC lawmakers reached an agreement that prevented a government default…before 2011, the lowest satisfaction rating was 26%, recorded in September 1973 during the Watergate scandal…

Today’s Markets

Asian markets were strong overnight, following up on the strength in U.S. markets…Japan’s Nikkei average shot up 210 points while China’s Shanghai Composite hit a new two-and-a-half week high, climbing 37 points to close at 2278, after Premier Li Keqing hinted of a positive 3rd-quarter GDP report due October 18…sentiment also rose on news that Beijing has launched a currency swap deal with the euro zone in the country’s latest push to transform the yuan into a major world currency…meanwhile, China passed the United States last month as the world’s biggest net oil importer, driven by faster economic growth and strong auto sales, according to U.S. government data released this week…Chinese oil consumption outstripped production by 6.3 million barrels per day, which indicates the country had to import that much to fill the gap, the Energy Information Administration said this week…

European shares were modestly higher today…

In New York, Dow is up another 18 points as of 8:00 am Pacific…U.S. consumer sentiment has deteriorated in October to its weakest level in 9 months as the first federal government shutdown in 17 years undermined Americans’ outlook on the economy, a survey released this morning showed…the Thomson Reuters/University of Michigan’s preliminary reading on the overall index on consumer sentiment fell to 75.2 in October, down from 77.5 in September…this was the lowest figure since January…

In Toronto, the TSX is holding up well today despite weakness in commodities…the Index is down 12 points at 12882 after the first 90 minutes of trading…the TSX this year has repeatedly been trying to push through key resistance around 12900 and get above the 13000 level for the first time in 2 years…below is a 2.5-year weekly chart from John…the bulls would certainly take charge if the Index can overcome this hurdle at current levels…

Updated CDNX Chart

The Venture is off 6 points at 930 as of 8:00 am Pacific…it has found support this week at the 100-day moving average (SMA) of 928 which has flattened out after being in decline since early this year…the Venture is underpinned by strong support but also faces a stiff resistance band between 955 and 970…RSI(14) has been in the 40-80% range since mid-June and is currently at 45% (after yesterday’s close), bouncing off previous support…expect support and resistance levels to continue to be tested…the 50-day SMA is still rising gently which is encouraging…

North American Nickel Inc. (NAN, TSX-V)

North American Nickel (NAN, TSX-V) yesterday reported significant intersections of high-grade Nickel from 3 drill holes at its Imiak Hill discovery in Greenland… the company is finding stronger grades and widths at depth, and assays are still pending from the deepest hole drilled (MQ-13-028, below MQ-13-026) this year…not surprisingly, trading was volatile yesterday with NAN opening higher at 43 cents before pulling back to an intra-day low of 33 cents…the stock then rallied at the end of the day, closing 1.5 cents higher at 39 cents (just above its rising 20-day SMA which has been providing excellent support) on total volume (all exchanges) of 3.3 million shares…

Below is an updated 2.5-year weekly chart from John…note the pennant formation…a breakout above the pennant would be a very bullish development…as of 8:00 am Pacific, NAN is off 3 cents at 36 cents on volume of over 1 million shares…it opened at 40 cents on a big bid…clearly there is strong interest in this play, but continued volatility can be expected…

Garibaldi Resources (GGI, TSX-V) Update

As NAN has shown over the past couple of months, discovery plays offer tremendous leverage, even in sideways or negative markets, and when you have a company like Garibaldi Resources (GGI, TSX-V) with immediate discovery potential in 2 jurisdictions – northwest B.C. and Mexico – along with a healthy working capital position ($4 million), management and geological expertise, outstanding projects, and the drive to succeed both on the ground and in the market, you typically have the right recipe for success…in a situation like this, when the current market cap is barely above working capital, you back up the truck and load up because the bandwagon jumpers will be clamoring for your inventory in due course…that’s how you make money on the Venture – always stay ahead of the crowd, don’t follow the crowd…

Mark our words – there’s a Big Show coming up in the Sheslay Valley in northwest B.C. because the geology is telling us that, and the audience for this is going to grow exponentially in our view…Pete Bernier and Dr. Dirk Tempelman-Kluit have done it before, and we predict they will do it again with Prosper Gold (PGX, TSX-V), but the junior with by far the largest land position in the Sheslay Valley – right in the heart of it – is Garibaldi where multiple targets have been identified over a distance of 15 km from Grizzly West to Grizzly Central…the scale of this is important to understand…more results are pending from current exploration…GGI is focusing on the northwest part of the property where alteration in some parts has been described in technical reports as “spectacular“…

We’ll have more on GGI in the coming days (on both B.C. and Mexico) with President and CEO Steve Regoci, but below are 3 additional excerpts from our interview that our readers will find useful as part of their own due diligence which we always encourage…

As GGI announced September 30, the preliminary interpretation from a recently completed airborne survey over northwestern portions of the Grizzly is highly encouraging, and Regoci is eagerly anticipating additional results (click on the forward arrow to listen to this one-and-a-half minute excerpt – requires Adobe Flash Player version 9 or above):

[audio:https://bullmarketrun.com/wp-content/uploads/2013/10/Regocci-Clip-3.mp3|titles=Regocci Clip 3]

Regoci on the Kaketsa pluton, an important Sheslay Valley geological feature – a potential “heat engine” that may have impacted much of the area:

[audio:https://bullmarketrun.com/wp-content/uploads/2013/10/Regocci-Clip-4.mp3|titles=Regocci Clip 4]

Regoci on the original acquisition of the Grizzly claims in 2006:

[audio:https://bullmarketrun.com/wp-content/uploads/2013/10/Regocci-Clip-5.mp3|titles=Regocci Clip 5]

Critical Elements Corp. (CRE, TSX-V) Updated Chart

Critical Elements (CRE, TSX-V) has backed off from the low-20’s, as expected, as a “cup with handle” pattern starts to take shape…keep an eye on this one as the “accumulation” zone, as John sees it, is between 16 and 19 cents…the rising 100-day SMA is currently at 14.5 cents, providing additional support…between late June and late September, CRE more than doubled from a dime to 23 cents…a normal retracement is now occurring with the Fib. support levels between 16 and 19 cents…

Note: John and Jon both hold share positions in GGI.  Jon also holds share positions in NAN and PGX.