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Gold is shooting higher today…as of 6:00 am Pacific, the yellow metal is up $17 an ounce at $1,634…Silver is 84 cents higher at $29.37…Copper is up 3 pennies at $3.37…Crude Oil is off its high of the day but has gained 43 cents to $84.72 while the U.S. Dollar Index is flat at 82.79…as John has shown in a couple of recent charts, the Dollar Index has stiff resistance to overcome between 83 and 83.56 – so it could back off and consolidate for a period of time which is bullish for precious metals…

Silver

The technical set-up for Silver right now is looking VERY bullish which bodes well for many of the Silver plays we like including, of course, Rainbow Resources (RBW, TSX-V) which will soon be drilling into known high-grade massive galena at its International Property in the West Kootenays, and potential high-grade Silver mineralization at Gold Viking – two former producers never previously drilled…the geological models are as favorable for Rainbow as they were for GoldQuest…

John’s 6-month daily chart below shows how Silver bottomed out in mid-May, and how the RSI and CMF are both pointing toward an attempt at a near-term breakout…this could be a sizzling summer for Silver, especially if the central banks around the world do what we think they will do and that’s print money faster than rabbits can make bunnies…

WildCat Silver (WS, TSX)

On the topic of Silver, intense selling pressure in Wildcat Silver (WS, TSX) since February has dissipated and a May bottom likely occurred in the stock at 78 cents as outlined in John’s chart below…not shown in this chart, and what’s very interesting, is that WS’s 1,000-day rising moving average (SMA) at 80 cents provided support…Wildcat is working on a very promising Silver project in Arizona (Hermosa) and both traders and longer-term investors will want to examine this chart closely as part of their due diligence…

Today’s Markets

Asian markets were up strongly overnight with the exception of China’s Shanghai Composite which was weighed down by property shares and fell 2 points to 2310…Europe is higher this morning while stock index futures in New York are pointing toward a positive open on Wall Street…

The European Central Bank left interest rates at 1%t today, not surprising since most market observers were expecting the ECB to save its ammunition for July – following the June 17 Greek election and the European leaders’ summit at the end of the month…the ECB pledged this morning, however, to extend some of its liquidity providing operations to help financial markets cope with the effects of the euro zone’s debt crisis…

Fed watchers await the words of Fed Vice Chair Janet Yellen, who speaks in Boston tonight, and Fed Chairman Ben Bernanke who testifies tomorrow morning before the Congressional  Joint Economic Committee…

Wisconsin Governor Survives Recall Vote

In a victory for fiscal conservatives, which will likely have implications for the November presidential race, Wisconsin Governor Scott Walker – on a strong austerity push – successfully overcame a recall vote that would have removed him from office…this provides hope there is still an appetite among Americans to embrace traditional American values of limited government and sound fiscal management…

By the way, the most pessimistic economic assumptions from the Congressional Budget Office (CBO) yesterday show that America’s debt could hit 2.5 times GDP in 2035 which creates an economic scenario so dire that the CBO’s forecasting model actually breaks down…

Probe Mines (PRB, TSX-V) and Kirkland Lake Gold (KGI, TSX)

Two more charts from John show how May also likely marked important bottoms for Probe Mines (PRB, TSX-V)  and Kirkland Lake Gold (KGI, TSX)…

We’re expecting a flurry of M&A activity in the mining sector over the next year or two, and Probe Mines could certainly be a target with its multi-million ounce Borden Lake deposit…

Probe Mines (PRB, TSX-V)

Kirkland lake Gold (KGI, TSX)

Note: John, Jon and Terry do not hold positions in WS, PRB or KGI.