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Gold has traded between $1,321 and $1,328 so far today as it inches closer to a potential significant breakout…as of 7:45 am Pacific, bullion is up $5 an ounce at $1,325…Silver has climbed 7 cents to $21.09…Copper is up a penny at $3.24…Crude Oil, which has had its longest losing skid since December 2009, is down 93 cents to 102.47 (see updated WTIC chart below)…Libya’s largest Oil field is ramping up production much faster than expected and may reach two-thirds of its output capacity by the end of today, according to a report in the Wall Street Journal…the U.S. Dollar Index is down one-tenth of a point to 80.04…

Editor’s Note:  BMR is on special assignment travel over the next four days and regular postings after today resume Monday morning…in the meantime, the comments section will remain open, and we will be posting in the event of any major breaking developments…we appreciate your understanding…

Assets in the SPDR Gold Trust, the metal’s biggest ETP that counts billionaire John Paulson as its largest holder, have erased this year’s decline…bullion’s 2014 rally is outpacing equities, Treasuries and bonds, defying bearish forecasts from several quarters including of course Goldman Sachs…

Yesterday, SPDR holdings rose 2.09 metric tons to 800.28 tons…they are now up 0.3% this year after falling as much as 2.7% through May 21 to the lowest since December 2008…last year, assets tumbled 552.6 tons, or 41%, as futures plunged 28%, the most in three decades…in an interview with Bloomberg’s Debarati Roy, Jeff Sica, who helps oversee $1 billion at Sica Wealth Management in Morristown, New Jersey, stated:  “People are seeing the need for Gold again.  Geopolitical unrest across the globe is imploding, and people are realizing that they need to start hedging against future inflation.”

Peter Schiff, CEO of Euro Pacific Capital and a well-known Gold bull and dollar bear, told Bloombeg, “There is still a lot of skepticism in the market, but once we see gold go above $1,400, we will see more buyers come out.  At some point, the fear of Gold going to $1,000 will be replaced by ‘I don’t want to miss out’.”

Today’s Equity Markets

Asia

China’s consumer-price index rose 2.3% in June from a year ago moderating from a 2.5% year-over-year increase in May and slightly below than the 2.4% gain projected in separate Dow Jones News Wires and Reuters surveys of economists. Meanwhile, the producer-price index dropped 1.1% from a year earlier, compared with a 1.4% decline in May…Bank of China, one of the country’s biggest state-owned banks, led the broad decline in the banking sector with a nearly 3% loss after China’s state broadcaster accused the bank of assisting in money-laundering and fraudulent transactions…

Europe

European markets are mixed in late trading overseas…

North America

The Dow is up 47 points as of 7:45 am Pacific…investors are anxiously awaiting minutes from the Federal Reserve’s Open Market Committee later in the day…in particular, traders will be looking for comments about inflation in the minutes from the June 18 meeting, after Fed Chair Janet Yellen said in a post-meeting press briefing that the pick-up in CPI was just “noise”…

The TSX has gained 39 points while the Venture is off a point at 1027 as of 7:45 am Pacific…

Updated Crude Oil (WTIC) Chart

The slide in Crude Oil prices since near the end of June should be viewed as a very normal pullback with the primary uptrend still very much intact as you can see in this 2-year weekly chart…there are three levels of key support – $102.50, the bottom of the current upsloping channel that will likely prevent WTIC from falling below $100, while the rising 200-day moving average (SMA) at $95.66 can be expected to continue to provide formidable support in the event Crude were to dip below $100…RSI(14) is at 53% and should hold at the 50% level, limiting the potential of any further declines…

Venture Relative To Gold

This is one of the most important charts for readers to grasp as it really puts into clear perspective where the Venture is at in its current cycle and what that means for Gold…

Over the past year, there has been an important pattern change in the relationship between the Venture Exchange and Gold…historically, the Venture has proven to be an exceedingly reliable leading indicator of the future direction of Gold prices – a great recent example being the Venture’s breakdown months before Gold peaked at just over $1,900 an ounce in September, 2011…this leading indicator pattern goes right back to the days of the Venture’s predecessor, the old Vancouver Stock Exchange…

Since late last year, we’ve repeatedly shown charts – a plethora of technical evidence – demonstrating that the Venture bear market ended in late June of last year when the Index touched 859…in October, the Index broke above a long-term downtrend line and then repeatedly tested that downtrend line as new support until late December when it finally took the path of least resistance and headed north…after hitting some headwinds at 1050 in mid-March, the Venture – not unexpectedly – retreated to a “comfort zone” where it has been testing a very strong support band in the immediate vicinity of 970 which was critical resistance for many months last year…

Below is an updated 10-year monthly chart from John that shows how the Venture’s out-performance vs. Gold is a bullish indicator for both…on the chart below, you’ll see three uptrend lines – one that’s currently in progress – and two downtrend lines…the best time to be invested in the Venture (and Gold for that matter) is when the Index (the black line on this chart) is out-performing the yellow metal as it is now…this Venture uptrend vs. Gold has been established since the second quarter of last year and should continue for an extended period, during which time we also expect Gold to ultimately push higher…

Venture 3-Year Weekly Updated Chart

John’s 3-year weekly Venture chart has been so incredibly valuable over the last year as it has given the primary direction of this market…still plenty of upside with RSI(14) at only 59%…buy pressure remains strong and we’re now in the most extended period of buy pressure in three years…note last year’s double bottom reversal pattern…

Pure Gold Mining Inc. (PGM, TSX-V)

We suggest readers perform their due diligence on Pure Gold Mining (PGM, TSX-V), formerly Laurentian Goldfields…Pure Gold recently consoldiated its position in the prolific Red Lake district with the acquisitions of the Madsen Property and the adjacent Newman-Madsen Property…together, these properties make up a 50 sq. km land package of contiguous, primarily patented ground, collectively known as the Madsen Gold Project…Pure Gold now holds the third largest land package in the Red Lake region which includes two past-producing mines, existing mine infrastructure, current mineral resources, and multiple highly prospective exploration targets in a geological setting analogous to other modern high-grade discoveries in the Red Lake region…more on this interesting play next week…PGM is well-funded and yesterday announced the start of its 2014 exploration program…PGM is off a penny at 41 cents as of 7:45 am Pacific…it has 97 million shares outstanding…

Calibre Mining (CXB, TSX-V) Update

Calibre Mining (CXB, TSX-V) is very active with excellent geological prospects in Nicaragua including the Eastern Borosi Project which was recently optioned by Iamgold Corp. (IMG, TSX)…Eastern Borosi hosts Gold-Silver resources in two deposits and a series of well-defined low-sulphidation epithermal Gold-Silver targets…a 3,400-m drill program was recently announced and will commence shortly…

Yesterday, CXB provided an encouraging update with regard to its Minnesota Gold Project JV in Nicaragua with B2Gold Corp. (BTO, TSX)…

Technically, John recently noted how CXB broke out above a 2-year downtrend channel – a very bullish development…sure enough, CXB has been gaining strength and closed a penny higher yesterday at 7 cents on total volume (all exchanges) of 1.8 million shares…it’s unchanged through the first 75 minutes of trading today…

Cypress Development Corp. (CYP, TSX-V) Update 

We like the primary direction of Zinc and Silver prices – a good reason to continue to keep an eye on Cypress Development (CYP, TSX-V) which announced plans June 25 for a Phase 2 drill program to follow up on strong Phase 1 results at its 100%-owned Gunman Zinc-Silver oxide project in Nevada…the 1,140-acre property is located directly west of Barrick Gold’s (ABX, TSX) Bald Mountain Gold mine complex on the southern Carlin mineral trend in White Pine County…

On June 12, CYP reported results from a Phase 1 program that included RC hole GMRC-9 which returned a 175-foot downhole interval of 12% Zn  and 121 g/t Ag, and hole GMRC-5 which returned a 55-foot section of 21% Zn and 147 g/t Ag…

There has been a substantial increase in volume in CYP recently and the stock has also overcome resistance at 3 cents as you can see in this 10-year monthly chart…

CYP is unchanged at 4 cents as of 7:45 am Pacific…

Canamex Resources Corp. (CSQ, TSX-V)

Nice results the other day from Canamex Resources (CSQ, TSX-V) from RC drilling at its Bruner Gold Project in Nevada…B-1425, drilled into the East zone at the historic resource area, intersected 145 feet (44.2 m) grading 0.20 opt Au (6.97 g/t Au) from 40 to 185 feet (12.2 to 56.4 m) depth…within this zone is a high-grade interval from 60 to 85 feet (18.3 to 25.9 m) that graded 0.81 opt (27.91 g/t Au) Gold and 9.55 opt (327.3 g/t) Ag…

Technically, CSQ faces measured Fib. resistance at 19 cents…it’s up 2.5 cents at 18.5 cents as of 7:45 am Pacific…

Note:  John, Terry and Jon do not hold share positions in PGM, CXB, CYP or CSQ.