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Gold has traded between $1,375 and $1,394 an ounce so far today…as of 7:00 am Pacific, bullion is off $3 an ounce at $1,384…Silver is up 3 cents at $22.42…Copper has advanced 3 pennies to $3.31…Crude Oil is up $1.45 a barrel to $95.60 while the U.S. Dollar Index has gained one-fifth of a point to 83.87…

Euro Pacific Canada came out with an interesting report yesterday on Gold’s current COT structure…the smart-money commercials have reduced their net short position to the lowest level since the October, 2008, bottom, meaning this is the most bullish they’ve been on Gold since that time…their net position increased from a low of -269,270 contracts in October, 2012, to the latest reading of -84,122…in other words, commercials initiated new long positions and covered previous shorts which increased their total net position by just over 185,000 contracts…large traders, which include hedge funds, tend to have their largest net position at market tops and smallest net position at market bottoms…they are currently net-long 83,726 contracts – the most bearish reading since the October, 2008, bottom…this group is characterized as trend-followers and as a result they are typically the most bearish at market bottoms and the most bullish at market tops…the last remaining participants are the small traders…historically, they have been on the wrong side of the Gold market at key inflection points…this month, this group had a net position of -1,704 contracts, an extremely bearish position not seen since February, 2001, when the Gold market was about to embark on a decade long bull market run…the current dynamics between the three groups signal that a significant intermediate-term bottom is forming in the Gold market, according to Euro Pacific…”This does not necessarily mean that prices cannot head lower, but it does mean that prices are attracting commercial buying interest – the smart-money – at levels not seen since the financial crisis when Gold declined from $1,000/oz and hit a critical low at $700/oz,” Euro Pacific stated…

According to a report from Reuters this morning, retail demand for Gold in India is slowing down…”Many potential buyers made purchases earlier this month…now we are heading towards the lean demand season…unless we see a sharp fall in prices, say by 4 or 5%, demand will remain subdued,” said said a Mumbai-based jeweller…the Reserve Bank of India (RBI) restricted banks from consignment imports of Gold, except for jewellery exporters, after imports jumped more than 150% n April, despite a 50% hike in the import duty in January…the RBI said yesterday that banks would not be allowed to give loans against units of Gold exchange-traded funds (ETFs) and Gold mutual funds…the rupee, which is trading near its lowest level in more than eight months, plays an important role in determining the landed cost of the dollar-quoted yellow metal…

Today’s Markets

Asian markets were stronger overnight with Japan’s Nikkei average gaining 169 points to close at 14312…China’s Shanghai Composite climbed 28 points to finish at 2321…Goldman Sachs is bullish on the Chinese market for the rest of this year, and says investors are now focusing more on the pace of reforms in that country than on government stimulus…China is trying to rebalance away from an over-dependence on exports and investments to being more consumption-led…the bank wrote in a report yesterday that it expects reforms to accelerate further in the second half of the year which will boost investor sentiment…European shares are up significantly in late trading overseas…supportive central bank comments from around the globe and a strong U.S. housing report this morning have sent the Dow up sharply in early trading…as of 7:00 am Pacific, the Dow is up 178 points as it shoots for its 20th consecutive positive Tuesday…the TSX has gained 69 points to 12765…the TSX chart is looking healthy at the moment with the Index trading in a horizontal channel between 12600 and 12900, a level it hasn’t been above since late 2011…so that’s a key resistance area, and it would be a very bullish development if the TSX were able to overcome it…notice the strong up momentum in the RSI(14) as shown in John’s 6-month chart…another attempt to bust through 12900 appears to be in the cards…

The Venture is up 5 points at 953 through the first 30 minutes of trading…it’s threatening today to close above its 30-day moving average (SMA), currently at 948, for the first time since January – clearly a positive sign…we’re continuing to work on our Iskut River play feature and our new time frame for posting that is between tomorrow and next Tuesday as we investigate and build upon new material that has come in which has pushed back our original schedule…

Zenyatta Ventures ltd. (ZEN, TSX-V)

Zenyatta Ventures (ZEN, TSX-V) has been a strong performer again recently, posting gains in 6 consecutive trading sessions following encouraging drilling and exploration news from its Albany graphite deposit in northeastern Ontario…Zenyatta hit an all-time high of $2.50 in early March and has been consolidating since then…below is a 6-month daily chart from John…ZEN closed yesterday at $2.13…strong support at $1.75, resistance at $2.28…

Alpha Minerals (AMW, TSX-V) Chart Update

Alpha Minerals (AMW, TSX-V) and Fission Uranium (FCU, TSX-V) reported more solid results from their Patterson Lake South Property (PLS) yesterday, including 20.5 metres at 8.57% U308 in PLS-13-059…many more results to come throughout the summer as a $7 million drill program continues…notice how AMW‘s 100-day moving average (SMA) has provided solid support during overall market turbulence the last couple of months…this is looking good…

Ashburton Ventures Ltd. (ABR, TSX-V)

Ashburton Ventures (ABR, TSX-V) has picked up more ground in northwestern B.C. as they have tied on to the eastern border of Doubleview Resources‘ (DBV, TSX-V) Hat Property, northwest of Telegraph Creek, where DBV is about to commence a drill program…this is quite a distance from Colorado Resources‘ (CXO, TSX-V) discovery but it’s in a very interesting area where Peter Bernier’s Prosper Gold (PGX.H, TSX-V) is expected to be very active this summer following approval of its qualifying transaction for the Copper Creek Property…the Hat Property adjoins the northeast corner of Copper Creek…

Seafield Resources (SFF, TSX-V) Makes Fresh Discovery Near Miraflores

Nice hole reported by Seafield this morning from its Quinchina Gold Project in Colombia…hole TS-DH-02, just 800 metres southeast of the company’s Miraflores deposit, has returned 384 metres grading 1.01 g/t Au…the Tesorito target was originally examined as a possible tailings site for Miraflores, but clearly it has mineral potential…the anomalous zone outlined by Gold in soils and high chargeability IP covers an area of 500 metres by 700 metres…hole TS-DH-01, also reported this morning, returned 268.5 metres grading 0.46 g/t Au…both holes intercepted porphyry style mineralization and alteration from surface to the final depth of each hole…more drilling is planned…SFF is the most active stock on the Venture in early trading, up a penny at 6 cents on volume (CDNX) of 2.4 million shares…

True Gold Mining Inc. (TGM, TSX-V) Update

True Gold Mining (TGM, TSX-V), which completed a $10 million financing with Teck Resources Ltd. (TCK, TSX) earlier this month, has reported impressive intervals of near-surface Gold mineralization from its advanced-staged Karma Project in Burkina Faso, West Africa…results from include one of the longest intersections of mineralization ever recorded at Karma – 110 metres grading 1.07 g/t Au…drilling at the Watinoma target intersected Gold mineralization in 6 of 9 holes holes over a distance of 550 metres, with mineralization open in all directions…True Gold will invest another $300,000 in ground geophysical surveying and 1,500 metres of diamond core drilling next month to further assess this target’s potential…

Huldra Silver (HDA, TSX-V) Update

Huldra Silver (HDA, TSX-V) provided a detailed update on its progress yesterday which we suggest investors check out…the company’s objective is to produce 1.4 million ounces of Silver, 5 million pounds of lead and 4 million pounds of zinc on an annualized basis from its high-grade Treasure Mountain deposit near Hope, B.C., beginning in July…commercial production started in March and has been steadily ramping up since then…Huldra’s stated goal is to have “one of the lowest operating costs for an underground mining company in the industry by utilizing its fully integrated structure”…technically, the stock is trapped in a downtrend at the moment but that will pass in due course…it needs to build a base, so be patient with it…there’s important support between 28 and 31 cents as John has pointed out…HDA closed yesterday at 33 cents, giving it a market cap of $17 million…

Note: John, Jon and Terry do not hold share positions in ZEN, AMW, ABR, SFF or HDA.