Gold enjoyed its biggest single-day jump in 2-and-a-half years yesterday, hitting a new 52-week high and closing up about $50 an ounce at $1,246. The breakout through the $1,200 resistance was indeed very powerful.
So far today, bullion has traded between $1,232 and $1,237. As of 6:15 am, it’s down $9 an ounce at $1,237 on some normal profit-taking. There are a multitude of factors that are positively impacting Gold at the moment, and indeed a new bull market may have started last month as we were speculating.
Technically, it’s reasonable to expect a test of the $1,200 area as potential new support. This is easier to show on a longer-term chart which we’ll have as part of today’s Morning Musings.
Gold 4-Month Daily Chart
On the short-term daily chart, there’s no question Gold is in overbought territory at the moment with RSI(14) at 87% through yesterday (this will have to unwind sooner or later, but not necessarily on a big drop in price). The weekly chart, which of course removes the daily “noise”, shows something very interesting and bullish which we’ll detail later this morning.
Note the two measured Fib. resistance levels on this chart – $1,212 and $1,316. It would be very healthy for Gold to retrace to the $1,200 area at some point and find strong new support there, followed by a fresh climb higher.
We expect a lot of analysts to up their 2016 Gold price estimates in the next week or two because right now, the minimum level we see Gold reaching this year is $1,316.
Hi Jon, any thoughts on Lester’s comment from yesterday?
36.Jon , not to mention the DBV results from hole #24 and #25 . An update as to what’s happening on site at the Hat would help clear things up.
Comment by Lester — February 11, 2016 @ 1:57 pm
Comment by ChetBaker — February 12, 2016 @ 6:27 am
Jon, do you have a price point in mind for GGI? I have extra cash on hand and want to add more GGI. How low do you think it will go today?
Comment by Dan1 — February 12, 2016 @ 6:42 am
Jon, what Regoci needs to do now is after the market close today if they have some nice looking core from Rodadero post them on their website over the weekend. With the long weekend coming and markets closed on Monday it would make the sellers sweat a bit.
Comment by Dan1 — February 12, 2016 @ 6:55 am
That would almost be funny if it happened, Dan1…but he should have even better bullets to fire from down there. As the market gets educated about the GGI discovery, plus the news starts flowing out of Mexico very soon, things are going to look a lot different than they do this morning. So the knee-jerk sellers will look as silly as they did with WRR.
Comment by Jon - BMR — February 12, 2016 @ 7:18 am
I feel silly holding GGI instead of listening to Dave and selling.
Comment by George — February 12, 2016 @ 7:26 am
Scandium info
Two robust growth markets await a reliable and expanded supply of scandium. These are defined as markets that would be able to utilize 2 – 5 times their current onsumption, if only the supply sources were there to offer scandium at prices that could be absorbed into the product. In each case, the end product is a game – changer, and the cost of the new material comes with performance offsets that pay for the higher expense. These two markets are:
1.Solid Oxide Fuel Cells (SOFC’s), and
2.Scandium – alloyed Aluminum alloys (Al-Sc alloys)
from Kaiser… thx to those who jogged my memory!!:)
Comment by Jeremy — February 12, 2016 @ 7:31 am
Anonymous is swallowing up a lot this morning
Comment by weatheritout — February 12, 2016 @ 7:36 am
Look at CFO – wow
PHM, looks like we got the triple bottom after all.
Comment by dave — February 12, 2016 @ 7:43 am
CFO – that’s First Mining being aggressive again in this environment, good to see.
Comment by Jon - BMR — February 12, 2016 @ 7:45 am
Looks like the inmates are running the GGI asylum.Jon is right, they will look silly just like with WRR.
Comment by pole — February 12, 2016 @ 8:00 am
PHM – bids can change but look at the bid at .40 – yup, this may be the triple bottom. We will know next week if she breaks below or not.
Comment by dave — February 12, 2016 @ 8:01 am
Weatheritout – anonymous is selling and buying. Share price still down 30%. Can’t seem to catch a break.
Comment by George — February 12, 2016 @ 8:02 am
to all you nervous stock owners out there. the stock market is a game. Some are in for the long run, some are in for collecting any profit, even the smallest. there are too many ‘I should have listen to…’. There have been plenty of oppurtunities to make monney. Both in ggi and wrr for example. I’m using bmr as guidance. Buy, sell, hold but never blame others for your own investments. I dont know what some was hoping for. I liked the news, I’ve been in and out couples of times in ggi. There are some interesting things going on here. This should move up smoothly from here I believe. Have a great weekend, all of you! Regards, Kalkan from a very cold Sweden
Comment by Kalkan — February 12, 2016 @ 8:15 am
Boy o boy, relax, maybe I could interest some with the cheese stocks to go with that whine.
Comment by Laddy — February 12, 2016 @ 8:33 am
ChetBaker , I’m just hoping for an increase in the gold and copper content of holes # 23,24,25 especially gold . This is what I’ve perceived from the conference call. They can’t restart drilling soon enough for me . If Pat McAndless can produce another hole like the one he drilled while at Red Chris I’d be tickled pink , never mind the black stuff .
Comment by Lester — February 12, 2016 @ 8:44 am
Sorry,not my intent to offend anyone, but I agree with charleybarley, this puts way more eyes on ggi, this could very well double or triple by the end of this month.
Comment by Laddy — February 12, 2016 @ 9:11 am
GGI – today is a tremendous opportunity in GGI. This is way undervalued under .10
I am a buyer today. Yes, I now join the GGI clan. I think the magnesium numbers are going to take people by surprise. I think the news on Mexico next week or whenever is going to get some attention. Look at the past releases on Mexico. Look what CLG did. This is just too great an opportunity here to make money.
Ok Kalkan, this from a very cold Atlanta, Ga. Brrrrr
Comment by dave — February 12, 2016 @ 9:14 am
Great to hear you are on board Dave. I wish all us GGI shareholders luck and gains in the hopefully near future.
Comment by George — February 12, 2016 @ 9:19 am
GGI – .08 is extremely strong support. Anything between .08 and .10 is a steal. By the way, Scandium is going to be the metal of 2016, just watch. Not to mention gold and silver. I have held my tongue long enough on GGI, today is time for action. Watch next week as this firms up.
Comment by dave — February 12, 2016 @ 9:21 am
Yes, good move Dave. There will be news next week on Mexico.
Comment by Dan1 — February 12, 2016 @ 9:23 am
There is no way this is going to double or triple by the end of this month what in the world would make that happen as slow as Regoci moves it will be next year before then even begin to figure out what they have at the grizzly and as far as Mexico goes nobody cares this is dead money and so is DBV it will never re cover from the Chad day Fiasco ….Spin it all you want this is dead and lost money for most of us here time to
Move onto stocks that are going to go up with gold and silver going up
Good luck to all here you are going to need it
Comment by GREGH — February 12, 2016 @ 9:25 am
GGI – here we go, the offers are getting smaller. Maybe sinking in to some.
Comment by dave — February 12, 2016 @ 9:46 am
Greg, gold and silver is hot right now. Just look at REX. It moved big time on a silver hit. I heard we will get compelling news next week on Mexico.
Comment by Dan1 — February 12, 2016 @ 9:55 am
GREGH – re-read news release carefully as I did 3 times. Pay attention to the part on the magnesium. With all do respect sir. This is not a pump, this is common sense.
Comment by dave — February 12, 2016 @ 9:57 am
GREGH – yesterday in your were hoping for good news out of Mexico that will move the share price and now you are saying nobody cares about Mexico…?
Comment by George — February 12, 2016 @ 10:03 am
Ok then GREGH, bye bye.
Comment by Laddy — February 12, 2016 @ 10:04 am
GREGH , the CD incident has been put to rest and DBV is about to restart drilling with results pending from holes # 23 ,24,25 and they will continue drilling to greater depth on #25 that has gold/ copper mineralization. Yes the CD incident has hurt them but they are far from dead . If anyone is waiting with inticipation for pending results they should pay attention to DBV as every hole they have drilled has increased it’s gold copper content . Good luck in your trading as there are opportunities everywhere.
Comment by Lester — February 12, 2016 @ 10:32 am
Lester, thanks for taking the time to reply…I too cannot wait for results. Not much interest in replying to DBV questions on this board so I’ll ask you directly – was there any word (from what you gathered on the conference call) as to when they anticipated results on the outstanding holes?
Comment by ChetBaker — February 12, 2016 @ 10:48 am
Your absoulutely right Lester better opportunities elsewhere! R
Comment by GREGH — February 12, 2016 @ 11:03 am
ChetBaker , from what I gathered , as soon as the had the funds they would proceed .
Comment by Lester — February 12, 2016 @ 11:28 am
ChetBaker , I assume the results to be as good as or better than prior holes as they plan on the continuation of #25 to much a greater depth. As of the conference call they were waiting for funds which was the hold up on everything and I’m thinking they should have it in place by now as it’s been about a month since the conference call. Hang on to your Hat .
Comment by Lester — February 12, 2016 @ 11:38 am
SSP – their assay results are what I would call average. Look at what it is doing. There are many out there for sure that are starting to pop. I still have one that I am waiting on the right time to move on. Anyone that took advantage of GGI knee jerk today, kudo’s to ya.
Comment by dave — February 12, 2016 @ 11:59 am
Thanks for the informative responses regarding DBV, Lester.
Good move by Regoci, in retrospect, to raise that 850k at 0.16 was it.
Comment by ConcernedCitizen — February 12, 2016 @ 12:17 pm
TCK – looks like Teck completed a reverse head and shoulders pattern>?
Comment by George — February 12, 2016 @ 12:36 pm
Well, I was hoping to start my long family day weekend here in Ontario a little better than this but it is what it is…cheers
Comment by George — February 12, 2016 @ 1:00 pm
Hang in there George…look at GGI’s past stock chart. Lots of spikes into the .30 or .50 range, even .90
Sell during one of those spikes…not now…when they will come we don’t exactly know.
Comment by weatheritout — February 12, 2016 @ 1:58 pm
But I hear Ya…it can be frustrating. Enjoy that family weekend George.
Comment by weatheritout — February 12, 2016 @ 2:00 pm
Thanks weatheritout. Same.
Comment by George — February 12, 2016 @ 3:24 pm
George,imo,the selloff today had more to do with this being Friday heading into a long weekend than investors not liking the story.
Yes,the stock did drop on some selloff,but the volume was a whole lot lower than could have been expected.I take that as no one even knows GGI put out a PR other than here on BMR.
They have to get this out on the Stockhouse site,where all the investment world will see this news.This has become a closed site,where there is limited viewership.
Promotion will have to be upped significantly.Potential is huge,but Stockhouse has to be used as the main driver.It’s where the majority of investors congregate everyday.
If they can get this out to more viewers,the stock has a big opportunity to make a run.This should have been paid to put on the front page on Stockhouse if that is required.There is nothing and there are no posts,so the word hasn’t reached the masses yet.
Let’s see if that changes over the weekend.If this story gets front page recognition on Stockhouse this weekend,next week this will begin to run.
BMR has done a great job on the Sheslay,but it is limited in who and how many it reaches.
Comment by robinandthe7hoods — February 12, 2016 @ 4:21 pm