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Gold held on to its gains today from the end of last week which was particularly encouraging given a significant bounce in the U.S. Dollar Index from Friday’s 4-month low…

In evening trading, as of 10:00 pm Pacific, Gold is down $3 an ounce at $1,222…Silver has retreated 18 cents to $17.50…Copper is off slightly at $2.89 while Crude Oil is flat at $59.42…

This is an abbreviated special evening edition of BMR Musings on this Victoria Day holiday in Canada…Canadian markets were closed today, while the Dow and S&P 500 both hit new record highs…regular BMR Morning Musings will resume Wednesday as most of our crew takes an extended long weekend break in preparation for what we believe could be a busy and exciting finish to the 1st half of the year over the next 6 weeks…

With heightened concerns regarding the Middle East, a potential near-term default event by Greece (it’s like a horse with 3 broken legs at the moment, who’s going to shoot it?), and an American economy that’s performing below expectations, Gold has an excellent chance this week to push through stiff resistance in the $1,220’s…what we could see over the coming weeks is another attempt by bullion to push above a downsloping channel that has been in place since 2013 as shown in John’s 2.5-year weekly chart…this chart, which we updated last Thursday, has served as an extraordinarily helpful guide…a confirmed breakout above the top of this channel would really put momentum on Gold’s side and force the bears into retreat…however, such an event would require a major catalyst…the top of that downsloping channel – it’s cutting through the $1,270’s at the moment – has obviously acted as an impenetrable wall against bullion for more than 2 years…

U.S. Dollar Index Updated Chart

What served as great support for the Dollar Index from last summer to just recently – an uptrend line along with the 50-day moving average (SMA) – now represents resistance on any rallies…the primary trend over the next several months is expected to be bearish based on this 9-month daily chart featuring a double top pattern that formed in March and April…ultimately, a test of Fib. resistance at 88 seems likely and that’s a significant drop from current levels – enough to give commodities and the Venture a nice lift…technical deterioration in the Dollar Index intensified near the end of last month as it started to become increasingly clear that 1st quarter weakness in the U.S. economy was due to more than just bad weather and a West Coast port strike…

Economic numbers in focus this week will include housing starts (Tuesday), existing home sales (Thursday) and the CPI (Friday)…the Fed’s meeting minutes, due to be released Wednesday, will also be closely scrutinized…

Equity Markets

Asia

Asian markets are surging in early Tuesday trading…China’s benchmark Shanghai Composite has gained 117 points or nearly 3% with infrastructure-related companies leading the way, while Japan’s Nikkei is back above the 20000 level…

Europe

European markets finished mostly higher today despite growing concerns about the future of cash-strapped Greece…

North America

The Dow set a record today for the 5th time in 2015, climbing 26 points to finish at a new closing high of 18299…the S&P 500, meanwhile, closed at a record high for the 3rd day in a row, gaining 6 points to 2129…

Canadian markets re-open Tuesday morning with the TSX aiming for its 3rd straight daily advance while the Venture begins the new week just 5 points shy of 700…

Venture 3-Year Weekly Chart

The Venture will take the path of least resistance in the not-too-distant future, and that’s likely to be above 700 given the posture of this 3-year weekly chart…

RSI(14), currently at 41%, is following an uptrend and is expected to continue its gradual rise to at least 50% where it’s likely to meet strong resistance, at least temporarily…this could coincide with the 745 level on the Venture, the next target area once 707 is cleared…

Fairmont Resources Inc. (FMR, TSX-V) Update

As Fairmont Resources (FMR, TSX-V) edges closer to generating cash flow from its Buttercup Project, John’s updated 2-year chart confirms the strong possibility of a breakout this week – so this is one situation we’ll be keeping a close eye on given fundamental and technical developments…the outlook for the industrial minerals sector in Quebec is looking increasingly attractive, and Fairmont is extremely well-positioned with a project fully permitted for high-grade titano-magnetite aggregate production and a growing list of potential buyers (at PDAC, some impressive dimensional stone samples from the Buttercup were also attracting considerable curiosity – this could be another product line from the Buttercup and a very valuable one)…

Technically, FMR is threatening to break out above a downsloping channel that has been in place since the 4th quarter of last year – not surprising given the very attractive share structure (only 18.5 million O/S) and an advanced project like the Buttercup…all things considered, a $2.5 million market cap makes this an unusual opportunity in our view…

Antibe Therapeutics Inc. (ATE, TSX-V) Update

In the non-resource space, Antibe Therapeutics (ATE, TSX-V) appears to be back on track after resuming development of its lead drug, ATB-346…

We like the possibilities here, just from a technical standpoint…Fib. resistance at 22 cents is a key level to watch – ATE closed half a penny above that on Friday, and RSI(14) has formed a bullish “W“…the SS indicator is showing strong up momentum while excellent support (Fib. and the rising 50-day SMA) exists at 18 cents…

Note:  Jon holds a share position in FMR.  John holds a share position in ATE.