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Gold is taking a hit this morning after yesterday’s Fed meeting and Bernanke news conference, but investors should be using this to look for opportunities, not to run away in fear…as of 7:10 am Pacific, bullion is down $56 an ounce to $1,295 – the lowest Gold has traded at since September, 2010…(check further below for an updated chart from John)…Silver has plummeted to just below $20, losing $1.36 an ounce…Copper is down 6 pennies to $3.08…Crude Oil is off $2.44 a barrel to $95.80 while the U.S. Dollar Index did find support around 80.50 early yesterday and is up another three-quarters of a point to 82.13…

Gold plunged after Fed Chairman Ben Bernanke said yesterday that the U.S. economy was expanding strongly enough for the central bank to begin slowing the pace of its bond-buying stimulus later this year…Gold’s fall picked up momentum after it broke through its April low at $1,321 an ounce and fell almost another $40 an ounce to an intra-day low this morning of $1,285…Swiss bank UBS today cut its Gold price forecasts for the next 3 years to $1,440 from $1,600 for this year, to $1,325 from $1,625 in 2014 and to $1,200 from $1,500 in 2015, citing the Fed’s move…”This creates an increasingly difficult environment for Gold,” UBS stated…”Slowing Fed asset purchases, with the end now potentially in sight, higher yields, a stronger dollar and continued improvements in the economy are significant obstacles that perpetuate an already very weak investor sentiment”…

Silver prices are now down by nearly a third this year…the Gold/Silver ratio, which measures the number of Silver ounces needed to buy an ounce of Gold, has climbed to its highest since August, 2010, at 64.41…

It’s never wise to blindly follow the crowd which has been avoiding Gold and Silver like the plague for months, and you can be sure the Chinese (among others) are smiling this morning as they continue to build their bullion stockpiles…

So we’re not flinching with today’s sell-off, and situations like this create opportunities if you’re selective and focus on the right situations…we just completed an incredibly valuable trip to the Iskut River region of northwest British Columbia where a dynamic, old-fashioned B.C. area play is still in its very early stages and has the potential to absolutely explode this summer…Colorado Resources (CXO, TSX-V) came out with more great news yesterday after the close…companies like Victory Ventures (VVN, TSX-V), West Cirque Resources (WCQ, TSX-V) and others in that area have performed exceedingly well over the past 6 weeks despite shaky overall markets, and all have the potential to be even bigger winners during the upcoming quarter…few investors are aware of what’s emerging some 60 miles west of Colorado’s North ROK discovery, immediately northwest of Telegraph Creek, where Pete Bernier’s Prosper Gold (PGX.H, TSX-V) will soon be hitting the ground hard at the highly prospective Copper Creek Property…from all that we’ve learned, the mineralized system at Copper Creek extends right onto Garibaldi Resources‘ (GGI, TSX-V) Grizzly Property and GGI is trading at cash value at a mere 6 cents…what do you think is going to happen when Prosper Gold starts drilling Copper Creek like Swiss cheese?…the greatest opportunities emerge in bear markets like this when most investors just aren’t paying attention and aren’t doing their homework…

Probe Mines Ltd. (PRB, TSX-V)

When Gold plunged in April, we were highlighting the opportunity in Probe Mines (PRB, TSX-V) which has climbed more than 50% since then…again, Gold has plunged at the same time that Probe has come out with even better results from its Borden Lake Project in northeastern Ontario…in fact, so remarkable are the latest results that the company is re-classifying the Borden deposit as a more traditional high-grade, Archean lode Gold system, amenable to underground recovery, which is also bounded by ancillary lower-grade mineralization, the latter ideally suited for potential open-pit mining…no wonder Agnico Eagle (AEM, TSX-V) took a nearly 10% position in Probe last month…PRB has extended the high-grade Gold zone at Borden by an additional 200 metres to the southeast and it’s showing improving grade in that direction with intercepts such as 27.2 metres grading 6.4 g/t Au (BL13-402)…the deposit remains open to the northwest and southeast along strike…4 drill rigs have been mobilized to the high-grade southeast area to begin work on expansion and infill drilling…Borden Lake has gone from being a grassroots discovery to a continuous Gold horizon over 3 km in strike length in under 3 years…PRB is a great candidate for a takeover, and Agnico Eagle appears to have positioned itself to carry that out…below is an updated PRB chart from John…PRB climbed 7 cents yesterday to close at $1.78…it fell as low as $1.63 in early trading this morning but has recovered to $1.69 as of 7:10 am Pacific…

Colorado Resources (CXO, TSX-V) and Victory Ventures (VVN, TSX-V) Updates

Colorado Resources (CXO, TSX-V) confirmed after yesterday’s close that a 5,000-metre drill program has commenced at North ROK…they’ll be focusing on a continuous and strong magnetic high core that is 300 to 400 metres wide and 1200 metres long, trending southeast from holes #1 and #4 …CXO also reported updated information on an IP chargeability anomaly 1 km north of the original discovery hole in an area of limited outcrop…preliminary modelling of the recently completed geophysics indicates that this new IP chargeability anomaly measures 500 to 800 metres wide and 1,400 metres long…ground magnetic surveys conducted over the same area revealed two anomalies flanking the IP chargeability anomaly and one anomaly in the core of the IP anomaly…the magnetic anomalies flanking the IP anomaly measure approximately 300 by 750 metres and 200 by 700 metres…the magnetic anomaly in the core of the IP chargeability anomaly measures approximately 500 by 700 metres…Colorado could easily have one main and large Cu-Au porphyry deposit at North ROK in addition to a cluster of other Cu-Au porphyry deposits…

Colorado has enjoyed great success at discovering mineralization through coincident magnetic and IP anomalies…to the east, this is exactly what Victory Ventures (VVN, TSX-V) is attempting to do…of course not all anomalies are the result of mineralization, but what gives the Copau Property an edge is that it lies at the intersection of 2 major regional faults which have created pressure, heat and fracturing…that’s a great recipe to “cook up” the rocks…what Victory’s geologists are dealing with is a syenite body…intrusions come up in zones of weakness, and that’s exactly what appears to have occurred at Copau as the 2 faults represent a zone of weakness…this controls the intrusion…mineralization could occur in the intrusion or adjacent to it…while Colorado is currently focusing on a magnetic high core, so too is Victory – the one at Copau is at least 800 metres in length and 200 to 300 metres in width…it’s also coincident with an IP chargeability anomaly…limited outcropping but some showings as the B.C. Geological Survey first discovered in 1994…Victory has an excellent opportunity to drill into mineralization in this kind of a geological environment…

West Cirque Resources (WCQ, TSX-V) Chart Update

Liquidity is picking up in West Cirque Resources (WCQ, TSX-V) which has also jumped more than 50% since we introduced it to our readers recently as one of the top (and overlooked) plays in the Iskut area…with a partner like Freeport McMoRan Corp. of Canada investing up to $8 million in WCQ’s Castle, Tanzilla and Pliny Properties (Castle is the one we like the best), there’s no question WCQ will be fascinating to watch this summer…it climbed as high as 45 cents yesterday before settling unchanged at 40 cents…below is an updated chart from John…in doing your due diligence on WCQ, note that it has other properties of strong merit in British Columbia…

Today’s Markets

It’s definitely a negative day across the markets, thanks to fears regarding an unwinding of QE beginning and weak economic numbers out of China…the Dow is off 181 points as of 7:10 am Pacific…the number of Americans filing new claims for unemployment benefits rose more than expected last week, but not enough to signal a material shift from the recent pace of moderate job growth…initial claims for state unemployment benefits increased 18,000 to a seasonally adjusted 354,000, the Labor Department said this morning…claims for the prior week were revised to show 2,000 more applications received than previously reported…the TSX has fallen nearly 200 points through the first 40 minutes of trading…the Venture has hit a new multi-year low, down 19 points at 905…

Updated Gold Chart

Gold has broken through the $1,320 – $1,350 support band, and it’ll be interesting and important to see where it closes today…there is chart support at $1,309 but the likely worst-case scenario for the current downside move (even lower prices could come later) is around $1,230 as shown in John’s 4-year monthly chart…at those levels, of course, that’s what it’s costing many companies to mine the metal…

Long-Term WTIC Chart

Yesterday, we showed a short-term chart for WTIC – this morning, John has a longer-term view which adds some perspective…Crude has been trying to break above the resistance line of the 4-year symmetrical triangle but has so far failed to do so…in April, as you can see, it successfully tested support…Crude is definitely quickly approaching “decision time” when it will either decisively breakout above the triangle, or collapse below it…

Mart Resources (MMT, TSX-V) Chart Update

Below is a technical update from John on Mart Resources (MMT, TSX-V)…important support is at $1.40 – that’s a key level to watch…MMT is off a penny at $1.51 in early trading today…