Gold has traded between $1,241 and $1,257 so far today following yesterday’s intra-day reversal after bullion touched a 5-month low…as of 7:30 am Pacific, Gold is down $6 an ounce at $1,246…Silver is off 27 cents at $19.94…Copper is down a penny at $3.19…Crude Oil is up 9 cents at $94.18 while the U.S. Dollar Index is unchanged at 80.80…
The President Obama-inspired 6-nation deal with Iran over its nuclear program may actually have made the world a more dangerous place, not a safer place, so this could turn out to be long-term bullish for bullion…with Israel feeling further isolated and calling the deal an “historic mistake”, the likelihood that it may eventually take matters into its own hands with regard to Iran has surely increased…some of the wisest comments on the deal, in our view, came from Arizona Senator and former Presidential candidate John McCain who stated the following: “I am concerned this agreement could be a dangerous step that degrades our pressure on the Iranian regime without demonstrable actions on Iran’s part to end its pursuit of a nuclear weapons capability – a situation that would be reminiscent of our experience over two decades with North Korea” (our emphasis)…on the opposite end, Mohammed ElBaradei, Egypt’s pro-democracy leader and former director of the United Nations watchdog agency, welcomed the deal in a tweet on his official account: “After decade of failed policies, world better off w/ Iran deal. Equity, trust building, respect & dialogue R key to any conflict resolution”…what will be interesting to watch in the coming weeks is how the Obama administration, already badly damaged by the botched healthcare roll-out, will try to head off new congressional sanctions against Iran which could jeopardize this high-stakes deal…many in Congress are skeptical, if not outright hostile, to the agreement reached in Geneva – the first since Iran’s nuclear program came under scrutiny in 2003…
Today’s Markets
Asian markets were mixed overnight…China’s Shanghai Composite slid 3 points to close at 2181…the Wall Street Journal reported this morning that yields on Chinese government debt have soared to their highest levels in nearly nine years amid Beijing’s relentless drive to tighten the monetary spigots in the world’s second-largest economy…China’s tolerance for higher financing costs comes amid a broad effort to lessen the economy’s dependence on cheap credit and to rein in the riskiest types of lending…
Japan’s Nikkei average, meanwhile, fell 104 points to finish at 15515 after hitting its third consecutive six-month high yesterday…minutes from the Bank of Japan’s October meeting showed some members saw downside risks to the economy, underscoring pessimism within the board on achieving its 2% inflation target…
European shares were down modestly today…
In New York, the Dow is up 27 points through the first hour of trading…U.S. consumers’ confidence in the economy fell in November to the lowest level in seven months, as Americans expressed more concerns about hiring and pay increases in coming months…the Conference Board reported that its index of consumer confidence dropped to 70.4 in November from a revised October reading of 72.4 in November…confidence has now fallen for three straight months after reaching a five-year high of 82.1 in June…meanwhile, the permits for future U.S. home construction rose to their highest level in nearly five-and-a-half years in October, suggesting the housing market recovery remained intact despite recent signs of slowing down…the Commerce Department said this morning that building permits jumped 6.2% to a seasonally adjusted annual rate of 1.03 million units…that was the highest rate since June, 2008…permits increased 5.2% in September…
The TSX is down 44 points as of 7:30 am Pacific…the Venture, meanwhile, is off a point at 928…
“It takes courage, but this is the time to buy” Gold and Gold stocks, Adrian Day, founder and president of Adrian Day Asset Management, advised attendees at the Metals & Minerals Investment Conference in San Francisco yesterday as reported by Mineweb’s Dorothy Kosich this morning (www.mineweb.com)…right now, he observed, a “once in a decade opportunity” exists tobuy both physical Gold and Gold stocks…
Detour Gold (DGC, TSX) is down for the 7th day in a row…CEO and founder Gerald Panneton resigned yesterday after a weekend discussion with the company’s board of directors…Detour’s problem is quite simple – it has a massive deposit (Detour Lake) in northern Ontario (Canada’s biggest Gold mine), but it’s producing Gold at too high of a price…the company will continue to optimize the operation to reach nameplate capacity of 55,000 tonnes per day, but all-in sustaining costs for next year were recently projected to be between $1,150 and $1,250 per ounce (other companies of course face a similar problem)…at $3.50 as of 7:30 am Pacific, DGC has lost nearly 90% of its value this year…in May, billionaire investor John Paulson’s hedge fund put $153 million into the company…
Venture 3-Month Daily Chart
The Venture’s strong support was on display again yesterday as the Index held above 925 despite the early sell-off in Gold…below is a 3-month daily chart from John…the Slow Stochastics indicator (%K has broken above %D) suggests important support should hold this week, though volumes will drop off due to the U.S. Thanksgiving holiday Thursday…
LX Ventures Inc. (LXV, TSX-V) Update
A Fibonacci support band (retracement levels between 53 and 63 cents as outlined in John’s chart yesterday) was a valuable guide with LX Ventures (LXV, TSX-V) yesterday which dipped as low as 58 cents intra-day before reversing and finishing up 7 cents at 74 cents…as of 7:30 am Pacific, LXV is up another 6 cents at 80 cents – closing in on the second Fib. target level of 89 cents…below is an updated 2.5-year weekly LXV chart…
Global Cobalt Corp. (GCO, TSX-V) Update
Global Cobalt (GCO, TSX-V) continues to drill its Karakul Cobalt Project in Russia (a third rig was added just recently), while the stock continues to consolidate within a bullish ascending triangle…in the 3-month daily chart below, you can see how GCO has been testing the upsloping support line of the triangle…RSI(14) is now moving up from a bullish “W”, so this is looking very positive despite this morning’s minor weakness…as of 7:30 am Pacific, GCO is down a penny at 16.5 cents…
Brigus Gold Corp. (BRD, TSX)
Brigus Gold (BRD, TSX-V) continues to build a strong foundation in the immediate vicinity of 70 cents, setting the stage for what we believe could be a fresh move higher by year-end – especially with underground drilling continuing at the Black Fox Mine where a new zone of high grade is being outlined right below the existing resource…BRD is off 4 cents at 66 cents as of 7:30 am Pacific…below is a 3-year weekly chart from John…BRD has a rising 100-day moving average (SMA) not indicated on this chart at 62 cents which provides additional support during this consolidation period…
Note: John, Terry and Jon do not hold share positions in DGC, LXV, GCO or BRD…
The Venture seems doomed & to add to the despair
of it all, it’s been like this for years. A few
stocks seem to be doing ok., but everyone was not
fortunate enough to have been able to pick up those
stocks, when they became available. Take LXV for
example, i brought it to everyone’s attention, as
a very positive stock, had a position myself, but
because the Venture has trampled all over me in the
past, i sold too early. So i made a profit, but
making a profit, in many cases, will not take care
of losses. I appreciate Jon posting positive comments,
but i often take exception to what is expressed, for
example, he feels that we will see better times during
the last part of December. I hope he is correct, but I
disagree completely, because it is one of the slowest
times of the year, even in good times. The majority of
the stock market addicts take advantage of that period
of time to relax & celebrate the occasion, until at least
the New Year. Jon et al, would be considered experts,if
during the last couple of years, they had to use their
chart experience, to remind everyone that certain stocks
were about to fall, instead of about to or continue to rise.
If a chart is good to predict a positive future, surely the
components are there to predict the opposite. I mentioned last
night that I felt LXV would drop back today, according to the
candle formation it should have, but it was not meant to be. No
doubt the promoters are good, but i will sign off by stating, be
careful, it has been in overbought territory for such a long period
of time. I never did have a position in INT, but check out what
happened to that one, in fact, it may have caused one of this
stocks’ followers, who frequented this board, to throw in the
towel, if so, too bad ! R !
Comment by Bert — November 26, 2013 @ 8:28 am
Massive volume coming into the U.S. version of Timmins (TGD), lots of capitulation volume down here too
Comment by Justin — November 26, 2013 @ 9:02 am
ggi now off more than 50 percent from its high is it time to protect your capital
Comment by gil — November 26, 2013 @ 10:33 am
Excellent support on the long-term chart with rising moving averages, Gil. Plus drilling on 2 properties, and other factors in GGI’s favour. The type of situation that could really finish the year strong, and no worries over having to raise money like most companies.
Comment by Jon - BMR — November 26, 2013 @ 10:52 am
Inca One (v.io) featured in Caesars Report;
caesarsreport.com/reports/inca-one-resources-update-2/
Comment by Tony T — November 26, 2013 @ 12:17 pm
Just checking the chart on LXV & finally have the signal i was
waiting for, that is, the Stochastic %K has falling below the %D.,
after being O/B for an extended period of time. Anxious to find
out tomorrow if the signal is for real. R !
Bert
Comment by Bert — November 26, 2013 @ 3:31 pm
Hey, havent checked in for a while…thanks for GCO chart!!! And congrats Bert on LXV…very nice. It still dont really understand why yet…my wife always tells me im slow…well not always.
Comment by db — November 26, 2013 @ 4:35 pm
SFF bottoming out? Fingers crossed
Comment by dan — November 26, 2013 @ 7:46 pm
Anyone listen to GGI’s live presentation this evening? An update would be appreciated. Thanks,
Comment by Dan — November 26, 2013 @ 8:29 pm
Some upbeat news on GBB.
http://miningmarketwatch.net/gbb.htm
Comment by Alexandre — November 27, 2013 @ 4:43 am
@ dan – What I took out of it is that this company is very busy at the moment and delivering on what it has said it will do – drill, drill, drill. Drilling continues at Locust target. They got a nice sniff on the last hole. Could lead to even better things as they go a little deeper. Gibson sounds impressed with La Patilla. Short on details but GGI is targeting this one for possible gold extraction so they must see something they like there. They also unveiled a sneak preview of a short upcoming video – the first of 3 I think they said? – which was interesting. Grizzly update soon.
Comment by Bucky — November 27, 2013 @ 5:25 am