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Gold has traded between $1,309 and $1,323 so far today…as of 7:45 am Pacific, bullion is up $6 an ounce at $1,318…Silver is 17 cents higher at $21.88…Copper has added a penny to $3.25…Crude Oil has rebounded by more than $1 a barrel to $94.51 after touching a 5-month low…WTI had lost 5.4% in the past 7 trading days…its 14-day RSI fell to 25.9 yesterday, the lowest reading since June, 2012…the U.S. Dollar Index is off one-quarter of a point to 80.42…

Mineweb reported this morning that it was told by Finance Ministry officials in India told that the government’s many steps to contain Gold imports are working as expected…“Though imports of Gold and Silver had slid over 80% to $0.8 billion in September, India received over $9.6 billion from two foreign schemes, which were announced in September, to attract foreign funds and help the country bridge the current account deficit.  Moreover, healthy growth was witnessed in housing loans to individuals by public sector banks, with an increase of 42% in the first quarter and 61% increase in the second quarter.  Jewellers hope these positive signals would bring an end to India’s Gold curbs,” Mineweb’s Shivam Seth reported from Mumbai…

Traders would be limited in the positions they can hold in oil, wheat, Gold and other commodities under a proposal approved by the U.S. Commodity Futures Trading Commission yesterday (a federal judge rejected an earlier version from the CFTC on grounds that the agency failed to show why the limits were needed)…the CFTC proposal, which will be open for public comment for 60 days, would cap the number of futures contracts a company can hold in 28 commodities…the limits were sought by Congress after airlines, trucking firms and consumer groups blamed speculators for surging fuel prices in 2008…

Today’s Markets

The Dow hit a new intra-day all-time high this morning and is up 89 points as of 7:45 am Pacific…the TSX has gained 41 points while the Venture is up 1 point at 947…the Venture has declined, albeit rather gently, for 6 consecutive sessions with RSI(2) hitting its lowest point yesterday since late June…this market has plenty of support around current levels as we showed in charts the past couple of days…

Discovery Ventures (DVN, TSX-V) is the Venture volume leader so far today after announcing it has entered into an agreement with Roca Mines for an exclusive option to acquire 100% of FortyTwo Metals Inc., a wholly owned subsidiary of Roca…FortyTwo Metals holds, among other assets, the past producing Max Mine and associated claims, mining leases, and infrastructure near Trout Lake – approximately 135 km north of Discovery’s Willa Project in the heart of the Slocan Mining District…one of Discovery’s aims here, obviously, is to be able to truck material from Willa north for processing…other projects in the Willa area could also potentially benefit…it’ll be interesting to see if they can pull this off as the price tag includes a cash payment of $5 million…DVN is up half a penny at 23.5 cents on volume (all exchanges) of nearly 6 million shares through the first 75 minutes of trading…

Graphite One Resources (GPH, TSX-V) continues to edge higher…it’s the third most active Venture stock as of 7:45 am Pacific, up half a penny at 18.5 cents on total volume (all exchanges) of 1.7 million shares…it faces resistance at 19.5 cents…

European, Asian Markets

European shares were up modestly today in advance of a rate decision tomorrow by the ECB…the European Commission says it expects the euro zone economy to shrink this year by 0.4% before recovering to grow by 1.1% in 2014…that rather gloomy forecast has bolstered expectations for the ECB to cut interest rates, but that may not happen at this next meeting…last Thursday, the EU reported that inflation for October dropped to 0.7% year-over-year – the lowest inflation reading since November, 2009…this is well below the central bank’s inflation target of 2% and may ultimately force the ECB to cut interest rates…this in turn may hurt the euro (a stronger euro is generally positive for Gold)…

Retail sales in the 17 countries that share the euro fell in September, as consumer spending remained fragile in the face of high unemployment and slow wage growth…the decline in retail sales will likely add to mounting pressure from financial markets and governments on the ECB to take steps to steer the euro zone away from excessively low inflation and prolonged stagnation…

Asian markets were mixed overnight…Japan’s Nikkei average climbed 112 points, though China’s Shanghai Composite declined 18 points to close at 2140…

Shanghai Composite Updated Chart

John’s updated 6-month daily chart for the Shanghai, through the end of trading yesterday, shows a market that touched a low of 1850 in late June, climbed 23% to a high of 2270 in September, and now is trying to hold support within a Fib. band (50% to 61.8%) between 2100 and 2137, just slightly above today’s close…the correction of roughly 7% after the powerful move from late June to mid-September is very normal…it’s possible the Index could retrace to the Fib. 38.2% target (2055) but it would be important for support to hold there…the Shanghai usually correlates well with the Venture and the CRB Index, so a healthy market in China is good to see…

True Gold Mining Inc. (TGM, TSX-V)

True Gold Mining (TGM, TSX-V) released drill hole results Monday that have significantly expanded the footprint of one of its five deposits (Kao) at its 856 sq. km Karma project in Burkino Fasco…this large project, which includes four other closely spaced deposits – Goulagou I, Goulagou II, Rambo and Nami – with a proposed central processing facility is currently undergoing a feasibility study, which remains on schedule for release by the end this quarter…results released Monday extended Gold mineralization with significant widths and grades by an additional 2,000 metres from the northern edge of the Kao deposit, doubling the size of the Gold footprint at Kao…metallurgical test results indicate strong, rapid recoveries for oxide material at the Kao deposit…

Below is a 2.5-year weekly TGM chart…note the very strong technical support in the low 30’s…as of 7:45 am Pacific, TGM is up half a penny at 34 cents…

Madalena Energy Inc. (MVN, TSX-V)

Madalena Energy (MVN, TSX-V) appears to be consolidating after hitting a new 52-week high of 60 cents last week following the breakout above the 50-cent area…MVN has been somewhat volatile but overall has shown steady progression this year with strong liquidity, so it has been one of the top-performing Venture plays and will likely continue to be given the company’s fundamentals and the technical posture of the stock…below is an updated 2.5-year weekly chart from John…there is solid support at 50 cents which is also just a few pennies above the rising 50-day moving average (SMA) – even stronger support in the low 40’s…MVN is up a penny at 55 cents as of 7:45 am Pacific…

Brigus Gold Corp. (BRD, TSX-V)

We continue to keep a close eye on Brigus Gold (BRD, TSX) as underground drilling continues at its Black Fox Mine where some interesting high-grade intersections have been hit below existing resources…from a technical standpoint, the downtrend line which was previously resistance should now serve as support as the stock continues to consolidate after surging from the low 50’s to a high of 80 cents in less than 3 weeks…BRD is down a penny at 72 cents as of 7:45 am Pacific…