Gold is trying to bounce back today after yesterday’s $20 an ounce drop…as of 5:55 am Pacific, the yellow metal is up $9 an ounce at $1,576…Silver has climbed 23 cents to $27.04…Copper is flat at $3.41…Crude Oil is $1.17 a barrel higher at $85.08 while the U.S. Dollar Index is down over one-tenth of a point to 83.23…
Making sense of the action in Gold right now is actually quite easy as John outlines in the chart below…at some point over the short-term (this quarter), Gold will likely break out of its current trading range and make a decisive move in one direction or the other – we suspect that will be to the upside given seasonal and other factors including the favorable COT structure as we mentioned here yesterday…John’s 2.5-year weekly chart shows Gold is at RSI support at 42%…
Today’s Markets
Stock index futures in New York as of 5:55 am Pacific are pointing toward a slightly higher open on Wall Street…investors are looking ahead to the minutes of the June 20 Federal Reserve meeting (11:00 am Pacific) to find out how close the Fed was to delivering a third round of quantitative easing in addition to extending Operation Twist through to the end of 2012…second quarter earnings reports from bellwether’s Alcoa and Cummins over the last two days reconfirm the slowdown in the global economy, but how that works itself out is too early to tell…China is a key player and it has definitely put the pedal to the metal in terms of kick-starting economic growth with various monetary and fiscal moves…the U.S. is in a state of fiscal paralysis until November’s elections when hopefully Americans will re-discover their appetite for limited government and a regulatory and tax structure that inspires confidence in the private sector…
We thought it would be a good time to update the technical picture for China’s Shanghai Composite Index…it closed up 11 points today at a session-high 2176 after falling to an intra-day low of 2157, just 24 points above its 52-week low where there is strong support…the Index is in oversold territory as John shows below, and a rebound appears more likely now than a drop through 2133…
China To Court Foreign Hedge Funds
The Financial Times reports this morning that China has given foreign hedge funds permission to tap its wealthy citizens inside the country for funds to invest overseas…the move represents another important step by China to open its capital account – a process that involves dismantling regulations separating China from international markets…the pace of these reforms has picked up over the past year with a flurry of small initiatives, but the hedge fund move would be among the boldest…as well as creating a new channel for domestic capital to flow abroad, it would give Chinese institutions access to alternative investment strategies – from short positions to arbitrage – which they have lacked…
Venture Exchange
The CDNX went the way of the broader markets and Gold yesterday, reversing during the day…the risk of a test of support at 1154 has increased based on the last few days of trading activity which wouldn’t be such a bad thing if that were to help reinforce support…RSI(2) is in oversold territory but could drop a little more…
Good morning, do you gentlemen have any insight on the goings on recently at GBB? Substantial news on the counter-claim vs Genivar and the deep drill results. I have not noticed any comment recently (perhaps I missed it). Would appreciate your take on it. Thanks
Comment by pete — July 11, 2012 @ 5:24 am
Hello Pete
I am not a shareholder so what i state is solely to try to be of assistance. GBB may do
well with time, but you can be sure, when they enter the legal system, shareholders ù7
possible shareholders usually turn their backs,until at least the Judge rules. R !
Comment by Bert — July 11, 2012 @ 5:42 am
Correction
shareholders & possible shareholders usually etc etc
Comment by Bert — July 11, 2012 @ 5:43 am
Expect the index to test 1154 again lol – this is absolutely ridiculous
Ladies and gentlemen, the ventures are officially broken – beginning of the end if you will.
Unless there is a massive QE3, the enitre ventures will collapse back to their 2009-2009 lows. One in a 100 plays will hit, soar a few hundred percent, and fall right back down.
That’s a 1% chance of hitting, which is still better than a lottery ticket. Let the gambling begin…
Comment by alex — July 11, 2012 @ 7:40 am
RBW
It’s been a while waiting for the darn permits, but if they are not worth waiting for,
for an extended period of time, then they are not worth waiting for at all. The RBW crew,
have shown patience & while they were waiting, have prepared their drill, which is oiled
& ready to go, so give us the permits. Once the permits are in place & the drill starts
turning, the financing will come together, as well, RBW will lean on the promoters, who
drank their wine, ate their goodies & visited their properties. A perfect storm may be
in the works, which may have been wasted, if things had started earlier. A good company,
in a good market equals a good profit. Good luck ! R !
Comment by Bert — July 11, 2012 @ 7:57 am
I am still waiting for my GBB buy lot to be filled… hopefully, today I can load up more shares at a low price. Apparently, the 9 cents mark cannot stay too long…
Comment by Theodore — July 11, 2012 @ 8:07 am
todays smile.A deacon breaking bad news to his minister.Each sermon you preach is better than the next one
Comment by gil — July 11, 2012 @ 8:21 am
The 8.5 cents buy lot in GBB is getting bigger…. Let us see if someone will dump on it…. I hope so as I am there to catch my lot!
Comment by Theodore — July 11, 2012 @ 10:42 am
Hey Theodore, I hope the guys at BMR have big bids in at 8.5 so that after they get their stock they can start talking about GBB every single day for another year. I miss those days.
Comment by Mike — July 11, 2012 @ 11:31 am
No luck today! Maybe tomorrow… @Mike… those people holding a lot GBB may not dump until they are frustrated. Cutting lost for another 10-15% may be tough for them, therefore, when the buy lot at 9-10 cent accumulates, they will dump. However, I will not bid at 9.5 cents up as selling will be intense at 11 cents. There are quite a few stocks here I am really interested…. SFF and NAR…. Do not expect to see huge jumps for SFF but 30% profit is achievable in short term. NAR .. still have to wait a little bite but sixth sense tells me to collect more… it can double the value. I am not pushing anything to buy these stocks. Everyone has his own favorite stocks but I read all of them and do some dd.
Comment by Theodore — July 11, 2012 @ 12:08 pm
well, northern graphite was the only holding i had that i had any hope for….. so much for that, i give up!!!!!!!!!!!!!!
Comment by fred — July 11, 2012 @ 1:03 pm
Anyone…. have any idea on why Semafo drops a buck when their resource increases by 20%????? TIA
Comment by Jeremy — July 11, 2012 @ 1:23 pm
Jeremy same old story buy the rumour sell the news
Comment by gil — July 11, 2012 @ 1:49 pm
emailed RBW today repilied some news next week permits still in the works
Comment by brian — July 11, 2012 @ 2:33 pm
GBB may hit year low today…. (July 12)… I hold on to my Buy lot.
Comment by Theodore — July 12, 2012 @ 2:44 am
Gold’s getting hammered today. @BMR just wondered what happend to Currie Rose Resources (CUI). Do you have any idea what has gone wrong. I would appreciate your thoughts on this one, is there any activity at all? I mean around 1 in end of 2011 to 0,045 today?
Comment by Kalkan - Sweden — July 12, 2012 @ 4:47 am