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Gold has traded between $1,772 and $1,785 so far today, after touching a 7-month high yesterday…as of 6:05 am Pacific, the yellow metal is up $1 an ounce at $1,776…Silver is 6 cents higher at $34.71…Copper is up 2 pennies at $3.77…Crude Oil is up 22 cents at $92.70 while the U.S. Dollar Index is down over one-tenth of a point at 79.70…

Australia Cuts Rates, Bernanke Defends “QE Infinity”

Australia’s central bank cut rates today amid fears that the resources boom that has driven the economy was running out of steam more rapidly than expected, while consumers and other industries were failing to step into the breach…the Reserve Bank of Australia reduced interest rates by one-quarter of 1%, citing the slowdown in China and Europe’s recession in its decision to reduce rates to 3.25%…

Elsewhere on the central bank front, Ben Bernanke delivered a broad defense of the Fed’s controversial bond-buying stimulus plan yesterday but said nothing new…he insisted the Fed’s actions are necessary to support a flagging economic recovery…he pushed back against accusations that QE3 is laying the groundwork for inflation in the future or enabling the government to run large budget deficits…he said that while the country’s unusually weak economic performance had forced the Fed to resort to less conventional tools after bringing interest rates all the way down to effectively zero, the Fed’s goals of price stability and maximum sustainable employment have not changed…“These goals mean, basically, that we would like to see as many Americans as possible who want jobs to have jobs, and that we aim to keep the rate of increase in consumer prices low and stable,” Bernanke told the Economic Club of Indiana…

U.S. Manufacturing Bucks Global Trend In September

U.S. manufacturers bucked the global trend last month, expanding even as peers in Asia and Europe continued to suffer the effects of the slowing world economy…the American manufacturing sector expanded in September after three consecutive months of contraction, offering some support to the world’s largest economy as new orders and employment picked up…the recovery was not shared by manufacturers in other large economies, where activity continued to contract, albeit at a slower pace…the JP Morgan global manufacturing purchasing managers’ index, a compilation of manufacturing surveys in countries across the world, was 48.9 in September, slightly higher than August’s three-year low of 48.1, but still below the 50 level that distinguishes contraction from expansion…

Today’s Markets

Asian markets were mixed overnight (China’s Shanghai Index is closed for the week due to a holiday) after a surprising expansion in U.S. factory activity, reported yesterday, helped investors override concerns about weak overall global growth…European shares are higher this morning

European markets traded higher on Tuesday, led by Spanish stocks on increasing hopes that Spain will seek a full bailout, a move which would ease investors’ concerns over the euro zone debt crisis…a report by Reuters said that Spain was ready to request a bailout as early as next weekend, but Germany remained hesitant and said the country should hold off…stock index futures in New York as of 6:05 am Pacific are pointing toward a mildly positive open on Wall Street…

The Venture Exchange started strong yesterday but struggled to the finish line, posting just a 4-point gain to close at 1339 after climbing as high as 1349 early in the day – just below the resistance band which begins at 1350…

Euro vs. U.S. Dollar – Bullish For Gold & Stocks

Below is a revealing 2.5-year weekly euro chart from John that further illustrates the overall weakness in the U.S. dollar, and the greenback’s negative trend, which is bullish for Gold and the Venture Exchange…the euro, which no one wanted to hold up until a couple of months ago, is clearly on a new bullish track and has also broken out relative to the U.S. dollar…there is strong support for the euro around 128…it’s up slightly this morning to 1.2927…

Scorpio Mining (SPM, TSX) Chart Update

Scorpio Mining (SPM, TSX) has performed well since John’s latest chart, and has more than doubled since bottoming out around 50 cents over the summer…the stock climbed another 8 cents to close at $1.21 yesterday – its highest level since the end of March which reflects the strong turnaround in the junior miners…as John’s chart explains, $1.15 could become the new support for SPM – we’ll see what happens today…

Solvista Gold (SVV, TSX-V) and Carlisle Goldfields (CGJ, TSX)

Solvista Gold (SVV, TSX-V) and Carlisle Goldfields (CGJ, TSX) were both garnering attention at last week’s Cambridge Resource Show in Toronto, and are certainly worthy of our readers’ due diligence…Solvista has been getting strong results from its Caramanta Gold Project in Colombia which has the potential of hosting a series of Gold-Copper porphyry discoveries along a 3-kilometre
strike length…SVV, which is gradually unwinding a recent overbought condition, has fallen in 6 out of the last 7 sessions after hitting an all-time high of $1.29 a couple of weeks ago…this is definitely an interesting situation to look at, especially on any additional weakness which is possible based on John’s weekly chart below…

Solvista Gold (SVV, TSX-V)

Carlisle Goldfields (CGJ, TSX)

Bruce Reid’s Carlisle Goldfields (CGJ, TSX) continues to build on its resource base at its Lynn Lake camp in northern Manitoba, and should benefit as it adds more ounces in the months ahead against a backdrop of what will likely be even higher Gold prices…below is an 18-month weekly chart from John that shows CGJ is currently consolidating after a recent jump to 24.5 cents, and looks even better on any minor pullback from current levels (it closed yesterday at 20.5 cents)…there is strong support at 18 cents, slightly below the rising 200-day moving average (SMA) and just above the rising 50 and 100-day SMA’s…

Note: John, Jon and Terry do not hold positions in SPM, SVV or CGJ.