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Gold continues to hover around $1,700 an ounce with strong chart support between $1,660 and $1,680, and resistance around $1,720…as of 5:50 am Pacific, the yellow metal is off $14 an ounce at $1,687…Silver is down 30 cents to $33.31…Copper has gained 4 pennies to $3.88…Crude Oil is 44 cents higher at $106.77 while the U.S. Dollar Index is up one-third of a point to 80.15…

Nothing dramatic is expected from today’s FMOC meeting as it’s widely believed the Fed will “stay the course” and say nothing new…April’s meeting could be more interesting as that’s when the Fed will be issuing a new economic forecast…U.S. jobs data is looking encouraging but the American economy continues to face headwinds including “fiscal drag” from budget cuts…governments around the world are constrained in their ability to provide “stimulus”, which is actually a good thing as the days of Big Government need to come to an end, so stimulating economic activity has been left to the central bankers which is why there have been more than 75 easing moves globally over the last six months…that trend is likely to continue which creates a bullish environment for commodities and the stock market as a whole…particularly noteworthy is the easing mode that China is in right now, and in the case of the Chinese they also have a government that’s sitting on mountains of cash…

Today’s Markets

Asian markets were up overnight with China’s Shanghai Index advancing 21 points to 2456…European markets are up by about 1% as investors cheered solid economic data from Germany…

Stock index futures as of 5:50 am Pacific are pointing toward a positive open on Wall Street…U.S. retail sales rose 1.1% in February, in line with expectations, to a five-month high…

The Venture Exchange fell 14 points yesterday on low volume to close at 1636…this is an interesting level on the Venture because it’s just above the rising 100-day moving average (SMA) and right at the 1,000 day SMA…the 1,000-day has been in decline since the fall of 2008 but it will likely reverse to the upside later this year which is very bullish for the CDNX…this long-term moving average was resistance last November at 1675 but now it seems to be providing support, another clue that this is the right time to be a buyer in this market…

Meanwhile, the Volatility Index (VIX), which of course has an inverse relationship to the CDNX, has broken previous support which gives additional credence to the view that the CDNX hit an important low March 6 (1596) and will strengthen in the days ahead…

Prodigy Gold (PDG, TSX-V)

Prodigy Gold (PDG, TSX-V) has discovered a significant thick zone of high-grade mineralization in the footwall of the main Magino deposit…drill hole MA-11-205 intersected 10 metres (83 to 93 metres) grading 8.55 g/t Au within a thicker zone of 24 metres grading 4.22 g/t Au (82 to 106 metres)…interestingly, the drill intercept correlates with a district scale zone of higher grade Gold mineralization that extends from hole #205 through the main Magino deposit and continues to the east to the Island zone being mined by Richmont Mines (RIC, TSX) east of the Magino Property….Prodigy will drill deeper along the structure discovered in hole #205, below the currently proposed open pit operation, in an effort to find significant volumes of high grade Gold mineralization similar to the deep high grade zones at the adjacent Island Mine…

Orko Silver (OK, TSX-V)

As BMR readers know, we’re very bullish on Silver and another company to watch closely in this space is Orko Silver (OK, TSX-V) which is developing one of the world’s largest primary Silver deposits, La Preciosa, near the city of Durango in Durango State, Mexico…OK and joint venture partner Pan American Silver (PAA, TSX) released a Preliminary Economic Assessment for La Preciosa last August…Orko is looking at ways to improve the project economics and has contracted a company to complete a new independent PEA to be delivered by the middle of this year…the new PEA will also include an updated resource estimate which is expected by the end of this month…meanwhile, Pan American continues to be active in advancing Preciosa on different fronts including finalization of an Environmental Impact Study…Orko jumped 33 cents yesterday on strong volume to close at$2.46…previous resistance at $2.12 is now the new support as John shows in the chart below…

Note: John, Jon and Terry do not hold positions in OK.

Armistice Resources (AZ, TSX)

John has one more chart to share this morning and it shows a “textbook” buying opportunity…Armistice Resources (AZ, TSX), which we first brought to our readers’ attention a little while back when it was in the low 20’s, got as high as 30 cents in early February and has fallen back to its now-rising 100-day moving average (SMA)…it closed yesterday at 23 cents…RSI has declined to previous support and Slow Stochastics (not shown) indicates oversold conditions…Armistice has been hoisting and stockpiling ore from its McGarry Mine at Kirkland lake since December and has just signed a custom milling contract with SMC (Canada) for processing 30,000 tons of Gold-bearing ore from McGarry…the contract with SMC will meet Armistice’s requirements for the start-up phase and is open for extension if the processing of the first 30,000 tons meets all expectations…

Note: John, Jon and Terry do not hold positions in AZ.