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Both Gold and Silver continue to look solid…as of 4:55 am Pacific, Gold is up $2 an ounce at $1,614…Silver has added 4 cents to $27.92…Copper is up 4 pennies to $3.43…Crude Oil, after a powerful move Friday, had added another 40 cents and is now at $92.60 while the U.S. Dollar Index is off one-fifth of a point at 82.13…the greenback bulls are fading as the Dollar Index hit a fresh four-week low this morning…

Gold is entering a period of seasonal strength, and the anticipation of action by the Federal Reserve and the ECB by September should underpin prices and allow for a breakout in the coming weeks through resistance between $1,620 and $1,640 an ounce…central banks continue to accumulate…last Wednesday, the South Korean central bank announced it had purchased 16 metric tonnes of Gold in July, the third in an an acquisition program for the country’s still small foreign exchange reserves…on Friday, Turkey reported July Gold imports of 35 tonnes, the third highest on record and 46% above June (much of this Gold is thought to be headed for Iran, whatever that means)…and over the weekend, Hong Kong reported June was another month of heavy net shipments of Gold to China…while shipments in June fell 10% from May, it was well above the year-ago level…in a note, Commerzbank said:  “In the first half year, China thus imported 382.79 tons of Gold from Hong Kong, following a figure of 64.95 tons in the same period last year”…

Today’s Markets

Canadian markets re-open after yesterday’s holiday with the Venture Exchange poised, in our view, for an important breakout this week as explained in our Saturday report (Week In Review And A Look Ahead)…overseas, Asian markets were higher overnight with China’s Shanghai Composite gaining another 3 points to finish at 2158, its highest close since July 20…the SSEC has bounced up from rock-solid support and has the potential of rallying strongly in the coming weeks (positive for the Venture as these two markets, for whatever reason, have similar trading patterns)…below is an updated 4-year weekly Shanghai Stock Exchange chart from John…

European shares are mostly slightly in the green this morning while stock index futures in New York are pointing toward a positive open on Wall Street after the Dow finished at a three-month high of 13,118 yesterday…

Rainbow Resources (RBW, TSX-V)

It’s shaping up to be a big week for Rainbow Resources (RBW, TSX-V) with drilling expected to commence at the company’s International Property near the historical silver mining community of Kaslo in southeast British Columbia…last night, we spoke briefly with President David W. Johnston who has arrived in Vancouver for a major interview after spending the weekend at the property where pre-drilling activity is apparently proceeding at a feverish pace…BMR will be attempting to corner him for a short interview later today…

Everton Resources (EVR, TSX-V)

Part 1 our interview with Everton Resources‘ (EVR, TSX-V) President and CEO Andre Audet was posted earlier this morning…the simple law of supply and demand tells us Everton should perform well over the second half of the year…many new eyes are now focused on the mineralization-rich Dominican Republic, and dominant land positions are held by only three juniors – GoldQuest Mining (GQC, TSX-V), Unigold Inc. (UGD, TSX-V) and Everton (EVR, TSX-V)…market caps for GoldQuest and Unigold have soared beyond $100 million each (GQC’s Romero discovery could ultimately send its market cap significantly higher) while EVR’s market cap is still a modest $10.6 million…we suspect Everton will cut a deal, potentially with a major, for further exploration of its APV Property contiguous to the Barrick-Goldcorp Pueblo-Viejo Project…EVR holds the maximum allowable land position in the DR of 30,000 hectares, all of it in the immediate vicinity of Pueblo-Viejo which is one of the world’s largest Gold deposits…below is 2.5-year weekly EVR chart from John that shows the stock likely recently bottomed out a nickel after a long decline that started in the spring of last year…volume picked up considerably last week…chart resistance at 10 cents should be relatively minor, after last week’s activity, with the next major resistance at the declining 300-day moving average (SMA) around 15 cents…

John has charts this morning on three other interesting situations…

Corvus Gold (KOR, TSX)

Corvus Gold (KOR, TSX) has been a solid play this year as it continues to make progress at its North Bullfrog Gold Property in Nevada…the stock broke through the $1 level last Friday for the second time this year, closing at $1.09 which is just 14 cents below the 52-week high…as John’s chart shows, KOR – while very promising – is now up against a resistance band and requires higher volume to break out…we’ll see what happens this week…we’ve been tracking KOR since February when it was trading in the 75 to 85 cent range…

Comstock Metals (CSL, TSX-V)

Comstock Metals (CSL, TSX-V) enjoyed a banner week last week as it gained 76% on strong volume following release of impressive trenching results from its QV Project in the heart of the White Gold District in the Yukon…the company has also just closed the second tranche of a financing (20 cents per flow-through share, 15 cents per NFT share)…some consolidation is now likely as RSI(2) appears to have peaked at 96%…waiting for a pullback, rather than chasing this around 30 cents, seems to make sense…

Strategic Metals Ltd. (SMD, TSX-V)…

If Spain is looking for a bailout, all it needs to do is call up Strategic Metals (SMD, TSX-V)…the company came out with news Friday regarding the sale of royalty interests that will add (assuming everything goes through) another $36 million to its already strong treasury that showed $75 million in cash and marketable securities as of March 31…the stock closed Friday at 81 cents for a total market cap of $73 million…SMD has a strong presence in the Yukon and the risk-reward ratio at current levels, for patient investors, appears to be quite attractive given the company’s cash position and exploration opportunities…the stock price has taken a bit of beating this year but as the saying goes, buy low and sell high…

Note: John, Jon and Terry do not hold positions in Corvus Gold, Comstock Metals or Strategic Metals.  John and Jon both hold share positions in Rainbow Resources and Everton Resources.