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Gold has bounced off a low of $1,337 today…as of 8:10 am Pacific, the yellow metal is now down just $2 for the day at $1,346…Silver, which broke below support at $28 yesterday, hit nearly $27 this morning but has since recovered and is now in slightly positive territory for the day at $27.54…the U.S. Dollar Index has hit a fresh two-month low and is currently off more than half a point to 78.27…the CDNX is performing very well, currently ahead 13 points at 2260 despite the shakiness in the precious metals markets and that’s a positive sign…the overall trading action and performance of the CDNX in recent weeks clearly suggests that Gold’s current weakness is temporary and a bottom is likely quite near at hand if one hasn’t been put in already…investors also must keep in mind that big money frequently likes to engage in “chart painting” and sometimes crashes important chart support levels to shake out traders before a sudden reversal to the upside…the fundamentals driving Gold remain solidly intact and the overall long-term technical view also remains extremely bullish…John’s chart last weekend (“The Big Golden Picture”) was very effective in pointing that out…the New York Times is not our favorite source of information but there was an interesting article in it this morning…U.S. policy makers are apparently working behind the scenes to come up with a way to let states declare bankruptcy and get out from their crushing debts, including the pensions they have promised to retired public workers…along with retirees, however, investors in a state’s bonds could suffer, possibly ending up at the back of the line as unsecured creditors…some 100 major U.S. cities and states are in severe financial stress…this will likely become a much more prominent issue as the year progresses and is just another bullish factor for Gold…Gold Bullion Development (GBB, TSX-V) has come out with news this morning with the stock currently ahead 2 pennies at 76 cents…Phase 2 and Phase 3 drilling have intersected new mineralized structures throughout the LONG Bars Zone…an exploration update including fresh assay results are expected in the “very near future”…this is a strong signal from GBB that all’s well at Granada…in a bit of surprising but positive news, Gold Bullion has announced that a 6,000 metre Phase 1 drill program is set to begin shortly at its Castle Silver Mine near Gowganda in northeast Ontario…Castle is a former producer of silver and cobalt and could possibly end up becoming a “dividend” spin-off for GBB shareholders…speaking of spin-offs, the Venture Exchange has approved Kent Exploration’s (KEX, TSX-V) plan of arrangement regarding Archean Star Resources…a date of record has been established (Jan. 28) for Kent shareholders to participate in the spin-off and be able to receive one share in Archean Star for every four shares held in Kent at that time…trading is brisk in Kent today with the stock currently up 2.5 pennies at 17.5 cents…we alerted readers to this situation over a week ago when the stock was sitting at 13 cents…Kent will also own a substantial percentage of Archean which will be developing the Gnaweeda Gold Property in western Australia…Kent is definitely on the rebound after going through some struggles most of last year beginning in the spring…for those who missed the opportunity in December, it has re-surfaced again with Cadillac Mining (CQX, TSX-V) which dropped as low as 26 cents this morning where there is very strong technical support…the recent weakness in CQX has truly been amazing as the fundamentals with this have actually improved significantly recently…some investors, unfortunately, can’t see beyond tomorrow, nor apparently can they read a chart properly…CQX is starting to snap back and is currently unchanged at 29 cents, giving it a market cap of only $7.25 million…this remains one of the best situations we’ve seen in many months…the company holds very strategic and prospective land packages along the Cadillac Trend, mostly west of Rouyn-Noranda, and just recently announced a very astute acquisition in southern Utah as it secured an entire former mining camp by negotiating with individual landholders…Cadillac has a tight share structure and is led by a strong management team that is determined to move this company forward…technically, the stock remains in a powerful long-term uptrend…BMR will be attending the Vancouver Resource Investment Conference January 23 and 24 (Sunday and Monday)…there are numerous companies and opportunities we’ll be checking on, so we’ll be following up on that with our readers next week…