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Gold traded as low as $1,311 overnight but has rebounded to $1,319 as of 7:30 am Pacific for a gain of $3 an ounce…Silver is off a nickel at $21.82… Copper is under some pressure, down 4 cents to $3.24…Crude Oil is relatively unchanged at $94.71 while the U.S. Dollar Index, after nearly touching resistance at 81 overnight, has backed off to 80.60…

China’s net Gold imports from Hong Kong declined marginally in September but overall are considered strong, with one investment bank citing this as an example of the continued shift toward more demand in Eastern nations than in the West…shipments to China from Hong Kong were 116.3 metric tons in September, with exports to Hong Kong of 6.9…this left net imports of 109.4 metric tons, down 0.7% from 110.2 the prior month, according to news reports…however, September was China’s 5th consecutive month of net imports in excess of 100 tons (more than 800 tons through the first 9 months of this year, double the first 9 months of last year)…the high import figure, which is well ahead of a supply deficit, could be due to purchases by the central bank, analysts said…China does not publish Gold trade data and the numbers from Hong Kong, a main conduit for Gold into China, give the best picture of the country’s trade of the precious metal…China’s central bank is planning to increase the number of firms allowed to import and export Gold and also ease restrictions on individual buyers of the precious metal, according to a draft policy document…Commerzbank said Chinese imports so far have exceeded the outflows from global Gold exchange-traded products, which it lists at just shy of 703 metric tons in the first nine months of the year…“This is further evidence that Gold demand is shifting from West to East,” Commerzbank said…

Fed’s Bullard:  “What’s The Hurry” To Taper QE?

Some interesting comments from St. Louis Fed President James Bullard in an interview on CNBC this morning…“85 billion dollars is a torrid pace, I will give you that. And a trillion dollars a year is a torrid pace,” he acknowledged. “I’d rather get out it if we can, but I’d like to meet our goals”…he said he also sees “room on the balance sheet,” which is approaching $4 trillion, for continued buying. “If you look at the size of the balance sheet relative to GDP, who’s got the biggest one, Japan, Europe, U.K., U.S.?  We’re fourth out of those guys,” he continued. “If something bad is going to happen…with the balance sheet, these other central banks should have passed that and already had that experience and they haven’t.”

Speaking at a conference in Sydney, Australia, today, Dallas Fed President Dallas Richard Fisher said a “fiscally irresponsible” U.S. government counteracted the effects of accommodative Fed policy (source: CNBC)…he also added that he didn’t expect the central bank’s bond-buying program to increase or go on indefinitely…

Today’s Markets

China’s Shanghai Composite was unchanged overnight, closing at 2150…markets in Japan and India were closed for public holidays…

European shares were modestly higher today…

In North America, the Dow is up 15 points through the first 1 hour of trading…the TSX has gained 5 points while the Venture is up 4 points at 959 as of 7:30 am Pacific…

CDNX 1-Year Weekly Chart Shows Underlying Technical Strength

Below is a revealing 1-year weekly chart from John that shows how the Venture has been progressing, albeit slowly, from its late June low of 859 which coincided with Gold’s low of $1,179…the overall uptrend at the moment is clear to see – RSI(14), at just 46%, continues to climb an uptrend line, the CMF shows steady accumulation, while the Index itself is now supported at 2 levels – between roughly 950 (the rising 50-day SMA) and 955, and also around 930 in the immediate vicinity of the rising 100-day SMA…the 930 area also corresponds with an uptrend support line…the “squeeze” is on, so to speak, as John has pointed out in this chart…given the accumulation signals, these rising moving averages and the uptrend lines, the balance of probabilities in our view is that it’s just a matter of time before the Venture overcomes stiff resistance around 970…a very gently rising market like we’ve seen in the last several months builds a strong foundation of support and is preferable to the sharp rallies over short periods (6 weeks to 2 months) witnessed in late 2011, early 2012 and mid-2012 that weren’t sustainable…

If the current trend continues, the outlook for first half of 2014 has to be considered bullish…

Abcourt Mines Inc. (ABI, TSX-V)

Bottom-fishers may wish to keep an eye on Abcourt Mines (ABI, TSX-V) which, in difficult markets over the past couple of years, has done an admirable job of bringing its Elder Mine near Rouyn-Noranda into production…the first Gold bar was poured last month and full production capacity is expected during the 1st quarter of next year…4,839 tonnes of Gold mineralization were processed from Oct. 1 to Oct. 11…at least 30,000 more tonnes are expected to be processed by the end of December…ABI stated that the average mill head grade and recovery rates were “close” to the estimates made by Roche Ltd. Consulting Group in their November, 2012, PEA (5.48 g/t Au and 94%, respectively)…milling results will be used to validate resources and recovery rates in preparation for a feasibility study expected to be completed early next year…we visited the Elder Mine site in early 2011…Abcourt has an attractive asset with strong exploration upside as well…revenues from Gold sales should allow the company to keep further share dilution to a minimum (currently there are approximately 180 million shares outstanding)…

Abcourt will keep on ticking…below is a 10-year monthly chart…note the very strong support at 5.5 cents, and resistance at 10 cents…given an improvement in the fundamentals, it’s reasonable to expect that ABI will finally break above its long-term down trendline at some point next year…worth keeping on the radar screen…as always, perform your own due diligence…ABI is off half a penny at 7.5 cents as of 7:30 am Pacific…

Gold Standard Ventures Corp. (GSV, TSX-V) Chart Update

From a technical standpoint, Gold Standard Ventures (GSV, TSX-V) is a great example of what happens when a stock breaks above a long-term down trendline…this occurred with GSV in early October, as John pointed out at the time, following the release of positive drill results from their Railroad Project in Nevada…GSV made an immediate powerful move to the $1 level…since then, it has been consolidating…GSV is heading into what should be a much more positive 2014…next resistance levels are 96 cents and $1.20 as John shows in this 2.5-year weekly chart…GSV is up a penny at 93 cents as of 7:30 am Pacific…

Brigus Gold Corp. (BRD, TSX)

Brigus Gold (BRD, TSX) reported another impressive high-grade intersection last week (18.09 g/t Au over 37.8 m) from underground drilling at its Black Fox Mine in Timmins, Ontario…the 3rd hole is now in progress, and the company expects to drill another dozen or so holes in this current phase…these thick, high-grade intersections directly below current mining operations are very positive – if they continue, Brigus should be able to expand resources at Black Fox significantly…technically, some consolidation in the stock is now occurring which is healthy – look for support around the down trendline which was previous resistance…as of 7:30 am Pacific, BRD is off 1 cent at 75 cents…

Updated Silver Charts

6-Month Daily Chart

Silver met short-term resistance last week at $23…the Fib. 38.2% support at $21.40 is strong, so that’s the range Silver is in at the moment until it breaks one way or the other…

Long-Term Silver Chart

Below is an updated 13-year monthly chart that shows that Silver has likely completed a 3-wave corrective phase…very strong long-term support exists at $20…Silver should have a much better 2014…

Note: John, Terry and Jon do not hold share positions in ABI, GSV or BRD.