Gold has traded between $1,131 and $1,168 so far today…as of 8:15 am Pacific, bullion is up $23 an ounce at $1,164 thanks in part to a weaker than expected U.S. jobs report for October…Silver is up 25 cents to $15.67…Copper had added 2 pennies to $3.06…Crude Oil has gained $1.15 a barrel to $79.06 while the U.S. Dollar Index is down one-quarter of a point to 87.81…
Gold came under renewed pressure this week after falling below $1,180 last Friday – its lowest level reached during a 28% plunge last year…encouragingly, however, despite more strength in the greenback this week, and talk about an imminent “collapse” in Gold prices to $1,000 an ounce or lower, bullion managed to hold important support and took off to the upside this morning…if you’re a contrarian, another bullish indicator – SPDR Gold Trust, the world’s largest Gold-backed exchange-traded fund, said its holdings fell 0.41% to 732.83 tonnes yesterday – a new 6-year low…
Russia appears to be getting more aggressive again with Ukraine, a situation that could once again escalate and provide some support for Gold prices…according to a Reuters report on information received from the Kiev military, a column of 32 tanks, 16 howitzer artillery systems and trucks carrying ammunition and fighters has crossed into eastern Ukraine from Russia. “The deployment continues of military equipment and Russian mercenaries to the front lines,” spokesman Andriy Lysenko said in a televised briefing referring to yesterday’s cross-border incursion…Russia is also trying to show strength by increasing military flights close to NATO air space in Europe…
Russia’s rouble has hit a new all-time low against the dollar…it has lost more than 12% of its value in 7 days and has fallen 40% against the greenback since the start of the year…
Another geopolitical threat – ISIS – is certainly on the mind of Abdalla Salem el-Badri, the secretary general of OPEC, who made these comments to CNBC: “I’m not a politician, but ISIS is a problem, and this matter should be solved very quickly. This will affect existing production, it will affect investment, it will affect the behavior of people. It will affect the area tremendously,” el-Badri warned. “We (the West and the Arab countries) are in the same situation. Don’t tell me it is a Middle Eastern problem. It is a worldwide problem.”
Today’s Equity Markets
Asia
Markets were mixed in Asia overnight…China’s Shanghai Composite climbed as high as 2454 – levels not seen since February 2013 – before closing down 7 points at 2419…the Chinese central bank confirmed that it had pumped $125.91 billion U.S. (approximately 769.5 billion yuan) worth of 3-month loans into the financial system during September and October…
Japan’s Nikkei jumped 88 points to finish the week at 16880…
Europe
European markets are mixed in late trading overseas…some encouraging data out of Germany…exports there surged 5.5% in September, rebounding from a steep fall in August…
North America
The Dow is off 8 points as of 8:15 am Pacific while the S&P 500 is up a point at 2032…in Toronto, the TSX has jumped 121 points while the Venture has added 8 points to 760 – 2 straight days of gains after a 9-session losing skid…
The S&P has surged more than 10% to a new all-time since last month’s correction that took it down to 1821…what will be interesting now is how the S&P handles Fib. measured resistance at 2035…RSI(14) at 62% is showing diminishing up momentum and divergence with the index…the next several trading sessions should prove interesting…
U.S. Dollar Index Updated Chart
The U.S. Dollar Index may have temporarily run out of steam after slightly overshooting measured the measured Fib. resistance target at 88 yesterday…the RSI(14) divergence associated with the new high is also a clue that the greenback may need to pause and catch its breath for a while, allowing Gold to regain some luster…the Dollar Index should show strong support around the 85 level on any pullback to unwind overbought conditions…
U.S. Dollar vs. the Yen
The Japanese yen has hit a 7-year low vs. the U.S. dollar – but again, the greenback is clearly in overbought territory and at some point soon is going to have to retrace some of these gains…measured Fib. resistance at 116…
Garibaldi Resources Corp. (GGI, TSX-V) – GGI Goes Big At Rodadero
Garibaldi Resources‘ (GGI, TSX-V) most recent news on developments at Rodadero is carrying a lot more weight this morning with an announcement that the company has arranged a $1 million financing to rapidly accelerate its current drilling and exploration programs at this high-grade Silver-Gold Project in central Sonora State, Mexico…Rodadero has become a very compelling situation given the shallowness of the mineralization, the number of targets over a broad area and the interesting transition from high-grade Silver at Silver Eagle (drill results confirming the sampling) to a Silver-Gold and base metal environment (confirmed through sampling) moving toward the east and southeast…this system has legs to it – Rodadero North has targets stretching 10 km north-south and 5 km east-west…
Keep in mind that this same group, using hyperspectral technology and proprietary data generated from that, unlocked tremendous value for GGI shareholders out of the Temoris option in Mexico several years ago…utilizing the same technology, they may have a home run in the making at Rodadero…
Rodadero is in a prolific neighborhood which – along with the very promising results to date – helps explain the interest in the project from a leading international Silver and Gold producer and a privately-held Chinese company as disclosed by GGI a couple of weeks ago…may that have something to do with this morning’s news?…
GGI is up 1.5 cents at 20.5 cents as of 8:15 am Pacific…we’ll have more regarding GGI over the weekend…
HGD Updated Chart
The double leveraged HGD is a TSX-listed bear ETF that essentially gives us an inverse look at the TSX Gold Index…
John pointed this out in a previous chart last month – the HGD was looking bullish, pushing up against the top of a downsloping channel and threatening to break out…that’s exactly what occurred, and then it pulled back yesterday after meeting resistance Wednesday just above $24…
A move through $24 resistance by the HGD would certainly be a bearish development for Gold stocks…for now, the bullish trend in the HGD appears to have peaked as shown by the ADX indicator…
TSX Gold Index Long-Term Monthly Chart
Below is an updated long-term monthly TSX Gold Index chart…so far, critical support around 135 is holding…interesting, the Gold Index shot up about 40% at the beginning of the year and then decided to give back 40% on a sell-off down to this week’s low of 128.54 – a level not seen in more than a dozen years…
The Gold Index is up 7 points at 142 as of 8:15 am Pacific…
WANTED Technologies (WAN, TSX-V) Update
We’ve mentioned this one on several occasions, and the company continues to progress…as reported October 23, WANTED Technologies (WAN, TSX-V) had a 39% year-over-year increase in revenues and record net income of $2,634,753 or 11 cents per share for fiscal 2014 – the best results in the company’s history…
Since 2005, WANTED has stored more than 1 billion detailed records on hiring activity throughout the U.S. and Canada…this proprietary database contains more than 100 billion data elements which are used for analytical applications throughout multiple business sectors…the company’s most recent significant license agreement is one of many applications of WANTED’s “big data” for the employment sector…the challenge for WANTED will be to remain innovative while pursuing its growth in a relatively new and competitive field…new players, new alliances and new technological solutions may very well emerge in this market…
John’s updated 2.5-year weekly chart for WAN shows increasing buy pressure and RSI(14) approaching the top of a downtrend line…a breakout above that downtrend line would be significant…
WAN is up 4 cents at $1.19 as of 8:15 am Pacific…
Note: John and Jon both hold share positions in GGI.
Three days ago I said once oil put in its bottom the whole commodity sector will follow suit. That’s what we are seeing. Gold/silver are having a good day… but would like to see some follow-through next week. The dollar entered that 88-89 zone and turned around quickly. I don’t see it breaking that zone this year. That will happen next year…
I don’t own GGI, but those who hold the stock, congratulations. Good things are happening on the ground. Once I unload several positions in the coming month I will buy the stock pronto.
Comment by chris — November 7, 2014 @ 9:22 am
Looks like the venture has formed another “hammer” candle on the weekly chart. But, it also formed a hammer for the week of Oct 14th and the venture continued to plummet. So Let’s see how this hammer plays out in the coming weeks. Fingers and toes are crossed for a positive turn.
Comment by Tony T — November 7, 2014 @ 11:34 am
further to my post, venture closes 1pt lower than its high of the week. It actually finished even for the first time in 10 WEEKS. Let’s see what next week brings us. Have a great weekend everyone!
Comment by Tony T — November 7, 2014 @ 1:02 pm
Jon/ John BLO looking good selling has stopped and buy pressure has started to increase. Any more words from BLO CEO? Everything still on track here?
Comment by Ed — November 7, 2014 @ 1:24 pm
I think it’s looking exceptionally good with BLO, Ed, technically and fundamentally…..spoke with Rav just recently, he seemed very pleased with how everything is progressing, so I believe they are right on track…..we should hear something soon I suspect….
Comment by Jon - BMR — November 7, 2014 @ 1:34 pm
I hope BLO has the prototype ready for the upcoming conference.
Comment by chris — November 7, 2014 @ 1:51 pm
I think the Las Vegas conference is next week is that corret?
Comment by brian — November 7, 2014 @ 3:58 pm
Brian, Nov. 12-14 in Las Vegas, next Wednesday thru Friday. Based on that, expect some news next week from BLO.
Comment by Jon - BMR — November 7, 2014 @ 4:19 pm
Yes, Brian. November 12-14.
Comment by chris — November 7, 2014 @ 4:22 pm
EXCELLENT CLOSES ON TSX-V, GOLD/SILVER,ETC….URANIUM SECTOR SUPER HOT TODAY!!!!
Comment by STEVEN1 — November 7, 2014 @ 5:43 pm
Why was uranium so hot on Friday? UWE, EUU and YEL were a few on the venture that ripped to the upside.
Comment by Anonymous001 — November 8, 2014 @ 6:48 pm
Cameco had a big day as well, helped lead the charge. Overlooked a little in the Gold jump was that uranium prices shot up after Japan cleared the way for restart of the first of the nuclear reactors shut after the March 2011 earthquake and tsunami. Interesting, that accident occurred I think the same day the Venture bear market started. Other factors appear to be at play as well which are giving Uranium a lift, up significantly since the summer. Let’s hope this has some sustainability to it.
Comment by Jon - BMR — November 8, 2014 @ 8:03 pm
Good observation, thanks for the info Jon.
Comment by anonymous001 — November 9, 2014 @ 4:43 pm