Gold has traded between $1,636 and $1,650 so far today…as of 6:00 am Pacific, the yellow metal is down $11 an ounce at $1,638…a modest pullback is no surprise given the fact Gold has enjoyed its biggest two-week rise in two months…Silver is off 48 cents at 29.77…Copper is down 2 cents at $3.61…Crude Oil is up 37 cents at $99.47 after taking a hit yesterday on reports the European Union’s possible embargo of Iranian imports would be delayed by up to 6 months…the U.S. Dollar Index, meanwhile, is up more than one-third of a point to 81.22…
Hope in the Euro Zone
The European Central Bank said today there were “tentative” signs of economic stabilization in the euro zone as successful Spanish and Italian government bond auctions also pointed to at least a temporary easing of the region’s debt crisis…although Mario Draghi, ECB president, tempered his cautiously optimistic tone by saying that financial market tensions continued to hit euro zone economic activity, markets reacted positively to his comments and the bond auctions…the euro gained almost 1% against the greenback…the ECB’s provision last month of 489 billion euros in three-year loans to euro zone banks had, meanwhile, averted liquidity shortages in the financial system and reduced the risk of a “credit crunch” significantly, Draghi stated…
Italy’s three-year debt costs fell below 5% at the country’s first longer-term bond sale of the year today, though demand failed to live up to the success of a Spanish sale the previous day which points to challenges ahead as Rome tackles a heavy refinancing load in the next few months…
Encouraging Signs In China
Despite a 30-point drop today on profit-taking, it has been a good week for China’s Shangahi Composite Index which is up 5% from its January 6 low of 2133…after falling over 60% since its peak in 2007 (a similar drop to that of the Venture Exchange), the Chinese market could be on the rebound after the country’s premier and securities regulator sought to boost confidence in equities this week and pledged to enact a fresh round of reforms…investors have also been emboldened by speculation that Beijing will allow money and credit growth to accelerate in the coming months, giving rise to a wave of liquidity that could impact the stock market…using standard valuation metrics, China shares are already cheap…the Shanghai Composite Index is trading at a one-year forward price-to-earnings ratio of about 9.3, a whisker above its record low…it’ll be important to keep a close eye on developments in China over the coming weeks…
North American Markets
Dow futures are pointing toward a slightly negative open this morning…the Venture Exchange has posted gains in 7 out of the first 8 sessions this year and closed yesterday at 1540.50, just above its still-declining 50-day moving average (SMA)…there’s strong resistance at 1575 and solid support around 1500…
Gold Bullion Development (GBB, TSX-V) enjoyed a powerful day yesterday, jumping 3.5 cents on total volume (all exchanges) of 1.7 million shares…it appears GBB finally bottomed out at 13 cents in December and if that’s the case, a turnaround in GBB we would argue is also a sign that the Venture Exchange may start to flex its muscles again later this quarter…GBB has been quite a reliable “leading indicator” of the direction of the CDNX over the last couple of years…with a new geological consultant in place (SGS Canada) and a NI-43-101 resource estimate for the LONG Bars Zone due sometime this quarter, 2012 is off to a promising start for Gold Bullion…
John has two charts this morning that provide additional encouragement regarding the “big picture” outlook for Gold stocks…in the first chart, you’ll see how Yamana Gold (YRI, TSX) broke out of an ascending triangle yesterday on high volume…
U.S. Gold Corp. (UXG, TSX) has been in a downtrend since last April but that trend could be in the process of reversing as John shows in this morning’s second chart…
John: FMS.V chart looks interesting – do I correctly see a flagpole and a breakout to the upside in the making? Thanks
Comment by Andrew — January 13, 2012 @ 8:24 am
Andrew
Looking at the trading in CEV today, in particular at the end, i would suggest that the
financing has been completed, but they feel monday may be a better time to release the
news. Whatever, something positive is in the wind. R !
Comment by bert — January 13, 2012 @ 1:21 pm
Cap-Ex completes second, final tranche for $6.8-million
2012-01-13 15:30 PT – News Release
Mr. Francois Laurin reports
CAP-EX VENTURES CLOSES SECOND TRANCHE OF FINANCING TOTALLING $10,211,248.90 FOR BOTH TRANCHES
Cap-Ex Ventures Ltd. has closed the second and final tranche of its private placement financing first announced on Dec. 2, 2011.
The Second Tranche was comprised of 8,097,424 non flow-through units (the “Units”) for total gross proceeds of $6,882,810.40. The Private Placement was completed in full and total proceeds raised from the first and second tranches was $10,211,248.90.
Each Unit was comprised of one common share (the “Shares”) and one share purchase warrant (the “Warrants”) exercisable for a period of two years at an exercise price of
.95 per share. Each Unit was sold for
.85 per Unit.
The Company intends to use the proceeds of the Private Placement for further exploration and development of the Company’s Labrador properties and for general working capital purposes.
The Shares comprising part of the Units and any common shares issued upon exercise of the Warrants are subject to statutory hold periods such that they cannot be traded or resold prior to May 14, 2012.
Francois Laurin, the President and Chief Executive Officer of Cap-Ex, stated, “With the closing of the Second Tranche of this private placement, Cap-Ex has the financial capacity to proceed with its aggressive 2012 exploration program with the objective of identifying an initial mineral resource estimate.”
For additional information please visit the Company’s website at cap-ex.ca.
We seek Safe Harbor.
Comment by bert — January 13, 2012 @ 4:47 pm
Thanks, Bert – watching the trading in the closing minutes was exciting, with TD’s single bid of 185k at .91 and then soaring up to .96! I guessed it indicated that news was imminent. So now we look forward to the drill results perhaps next week.
Comment by Andrew — January 13, 2012 @ 6:50 pm
Andrew
There will be a FMS chart posted tomorrow.
Comment by John - BMR — January 14, 2012 @ 1:23 pm
Thanks, John – I shall look forward to it and your TA! Enjoy the weekend.
Comment by Andrew — January 14, 2012 @ 2:09 pm
john take a look at tor venture exchange walter
Comment by walter emond — January 15, 2012 @ 3:45 am