Gold fell as low as $1,331 overnight but has reversed, thanks to weaker-than-expected U.S. economic data…as of 8:15 am Pacific, bullion is up $4 an ounce at $1,341…Silver is down 3 cents at $21.93…Copper has slid a penny to $3.23…Crude Oil has retreated $1.19 a barrel to $101.62 while the U.S. Dollar Index has fallen more than one-tenth of a point to 80.06…this is a somewhat abbreviated edition of Morning Musings due to the impact of an unusual late February snowstorm in Vancouver…
Holdings in the SPDR Gold Trust, the world’s largest Gold-backed exchange-traded fund, rose 0.41% to 801.61 tonnes yesterday from 798.31 tonnes on Friday…
Premiums for 99.99% purity Gold on the Shanghai Gold Exchange over cash Gold were about $1 an ounce today, down from a high around $11 last week, indicating at least a temporary softening in Chinese demand…
Good sign or bad sign?…sales of Gold coins by the U.S. Mint are heading for the worst month since September after Gold’s climb to a four-month high…volume so far this month stands at just 24,500 ounces, down sharply from January’s 91,500 ounces which was the highest since April…in February of last year, coin sales totaled 80,500 ounces…
Will Gold Get A Boost From Oil?
Interesting comments from Sean Hyman, editor of the Ultimate Wealth Report, who told CNBC Asia’s “Squawk Box” this morning that global demand is going to drive Crude Oil (WTIC) through critical resistance around $110 a barrel. “Oil has been consolidating for several years in a sideways pattern and I believe that global demand is picking up and that’s going to shoot it through the top of that range,” he stated. “Once it finally does, we will see it hit $140 faster than a lot of people’s heads can spin.”
Higher oil prices would certainly put an end to a deflationary trend in many parts of the world…the 10-year monthly WTIC suggests that “decision time” for Oil is drawing near – a major move, in one direction or the other, appears certain at some point in 2014…John’s 10-year monthly chart (see below), combined with the strength we’re seeing in the Venture, suggests to us that the break will be to the upside…
WTIC has been trading in an ascending triangle since 2010…at the very least, another test of resistance around $110 appears to be in the cards…
TSX Gold Index Chart Update
As soon as the TSX Gold Index broke above a downtrend line in early January, it was off to the races…the question now is, after a nearly 40% jump from its December low of 149, is the Gold Index about to pause, catch its breath and digest its recent gains, or is it gearing up to climb even higher and stage an important breakout through chart resistance at 210?…if only we had a crystal ball…
Below is an 18-month weekly TSX Gold chart from John…one thing seems certain – given certain technical indicators including the reversal to the upside in the 200-day moving average (SMA), the overall trend has to be considered very bullish…the 210 area is really critical – a confirmed breakout above 210 (this would likely be accompanied by a breakout in Gold above $1,350) could trigger a tsunami of buying in Gold stocks…the Gold Index is off a point at 204 as of 8:15 am Pacific…
Today’s Markets
Asia
Japan and China went in opposite directions overnight – the Nikkei surged 214 points or 1.4%, while the Shanghai Composite tumbled 42 points or 2% to close at 2034…we see no reason to be concerned by this week’s drop in the Shanghai – in fact, we’re quite encouraged by the “triple bottom” pattern…
Europe
European markets are down modestly in late trading overseas…
North America
The Dow is up 16 points as of 8:15 am Pacific…U.S. consumer confidence sagged in February as expectations worsened, according to a private sector report released this morning…the Conference Board, an industry group, said its index of consumer attitudes fell to 78.1 from a downwardly revised 79.4 in January…economists in a Reuters poll had expected 80.0…investors are looking ahead to Thursday when U.S. Federal Reserve Chair Janet Yellen speaks to the Senate Banking Committee in her semi-annual testimony about monetary policy…
The TSX is off 27 points as of 8:15 am Pacific while the Venture has declined 5 points to 1014…
NexGen Energy Ltd. (NXE, TSX-V)
A modest but healthy pullback in NexGen Energy (NXE, TSX-V) early this week after last week’s 130% gain and a bump a little higher (to 56 cents) in early trading yesterday…the company yesterday reported that it has discovered new zones of uranium mineralization within the first hole at its Arrow prospect (Rook 1 Project) in the southwest Athabasca basin…let’s hope this drilling success continues, and the grades turn out to be as good as the scintillometer readings suggest – all players in the area stand to benefit including of course Fission Uranium Corp. (FCU, TSX-V), the leader of the pack, which continues to report spectacular results from Patterson Lake South…FCU is up 3 pennies to $1.34 as of 8:15 am Pacific…
Below is a 9-month daily NXE chart…a minor consolidation is certainly possible with strong chart and Fib. support around 40 cents…NXE dropped as low as 45 cents this morning and is down 3 pennies at 49 cents as of 8:15 am Pacific…
Goldeye Explorations Ltd. (GGY, TSX-V)
Goldeye Explorations (GGY, TSX-V), which recently started drilling some high-grade Gold targets at its Weebigee Project in northwestern Ontario (230 km north of Red Lake), has caught our eye given increased trading activity and the geological merits of this project…we suggest investors check this one out as it clearly has discovery potential…we’ll have more on GGY in the coming days…
This 2-year GGY chart shows Fib. resistance at 11.5 cents and strong support at 10 cents…the RSI(14) trend is very encouraging, and the 50-day SMA (currently at 9 cents) is just now reversing to the upside…favorable conditions for a breakout – drilling and increasingly bullish technicals…GGY is unchanged at 11 cents as of 8:15 am Pacific…
Note: Jon holds a share position in GGY.
Jon, how’s part 2 on Doubleview coming?
Comment by Paul — February 25, 2014 @ 2:25 pm
Hi guys ! what is happening with EVR ??? Is anybody knowing something ???
Comment by Sylvain — February 25, 2014 @ 2:36 pm
Jon, did my post asking about Doubleviews part 2 article not pass the sniff test, I see its been removed.
Comment by paul — February 25, 2014 @ 3:47 pm
Sorry, my bad…too mant shots after work!
Comment by paul — February 25, 2014 @ 3:48 pm
Hi Paul, not sure what you’re talking about – we haven’t yet completed the DBV Part 2 article. There are a lot of moving parts with research on this important story (Sheslay Valley) that’s giving us new information each day, so we’re close to posting Part 2 but not quite there yet. Be patient. It’ll be worth the wait!
Comment by Jon - BMR — February 25, 2014 @ 7:52 pm
Lol sorry Jon, just want the world to know what is happening.
Comment by Paul — February 25, 2014 @ 8:52 pm
What is happening, Paul, is that this whole thing is becoming rather mind-boggling when u start to connect all the dots and review all the evidence, historical and current, which in part is why this second version re: DBV is taking longer than expected. If you look at the DBV video they just put out, the 3D modelling of the drilling and potential deposit tells a thousand words. There are also some very interesting things going on in the southeastern part of the property, right along the border with Ashburton. On the GGI side, we’re seeing an even broader picture emerging as well. President and CEO Steve Reogci has agreed to an interview with us Monday at PDAC and I have a hunch that could be a “breakthrough” interview with regard to the entire Sheslay Valley, not just GGI’s portion. We’ll be speaking with Farshad as well. I see some serious fireworks coming with this play in the coming days. Keep an eye on AIX too – take them very seriously with the ground they just picked up which covers the entire northern border of the Sheslay and parts of the NW border of the Grizzly. Game-changer for AIX.
Comment by Jon - BMR — February 25, 2014 @ 10:08 pm
Fireworks coming with Ggi Jon?!
Comment by John s. — February 25, 2014 @ 10:16 pm
I believe the scale of what is unfolding in the entire Sheslay Valley is going to become even more evident and more recognized very quickly. That means fireworks all over.
Comment by Jon - BMR — February 25, 2014 @ 10:21 pm
I’m looking forward to it. Although disappointed Iv not heard back from Ggi
Comment by John s. — February 25, 2014 @ 10:30 pm
Sylvain- a reverse split for EVR- 1 for 5. BVA, – 1 for 10 on thur or fri.
Comment by Greg J. — February 26, 2014 @ 6:27 am
You know it’s winter & although drilling is taking
place in some parts of the world, the labs should
not be that busy, yet we waited for GGI to produce
results for an extended period of time & after some
concerns were raised, we found out that they had
changed labs. Now that they have changed labs, time
is again passing & we are still looking for them to
to produce results. Also, our cyber friend Mickey, got
to talk to the president recently, which leads to
believe that they may have a compliment of a one person
office. Dan is on record of showing concerns for some
time now & he should be listened to.. Some may not
like my negative posts, but i aim to protect my cash,
& the only ones who are concerned about my family &
me, are my family & me. R !
Comment by Bert — February 26, 2014 @ 7:02 am