BullMarketRun.ca

The underlying strength of the Gold market is on display again today…the yellow metal dropped as low as $1,352 overnight but has since rebounded above Friday’s close of $1,369…there is very significant dip-buying interest from the physical and investment sectors…as of 8:30 am Pacific, Gold is up $1 an ounce to $1,370…Silver fell below $24 but has also rebounded and is now up on the day as well…South Korea appears to be the latest country about to add to its Gold reserves…the head of the South Korean central bank, Kim Choong-Soo, says the country is considering accumulating more Gold to diversify its portfolio which is heavily weighted in U.S. dollars…the U.S. Dollar Index, which hit a 10-month low last week of 76.14, rallied for the second straight day today but faces very stiff technical resistance at the October 12 high of 77.93…the Index got as high as 77.65 this morning but bears have pounded it back down to 77.08…another test of the 76 level is likely and it’s quite possible the Index could crash through that level…Fed Chairman Ben Bernanke seems quite content with a lower U.S. Dollar as a “tool” for stimulating the American economy…he’s about to engage in a new round of mass money printing, otherwise known as “quantitative easing”, which is fraught with all sorts of risks…trashing paper currency is an insiduous tactic that governments the world over have repeatedly used to gain a trade advantage and when skyrocketing deficits and debt have threatened the collapse of their economies…the CDNX is powering higher today…the Index is currently at 1833, up 10 points for the day and just 3 points shy of last week’s new 52-week high…as John outlined in his article yesterday, the CDNX appears headed for a band of resistance between 1900 and 2000…the 200-week moving average sits at 1959…it’s always good to see takeovers which provide fresh fuel for the market…Antares Minerals Inc. (ANM, TSX-V) is up over $2 per share at $6.56 on First Quantam’s (FM, TSX) $460 million cash and share takeover announced this morning…Gold Bullion Development (GBB, TSX-V) is off a penny at 57 cents…we’re hoping GBB will announce the closing of its recently announced private placement this week…we’re keeping a close eye on Richfield Ventures (RVC, TSX-V) which is expected to release more drill results from Blackwater as early as tomorrow…RVC’s chart is looking very bullish and the stock has also largely unwound its overbought condition from September when it shot up to a high of $3.05…Richfield is currently up 4 cents at $2.84…GoldQuest Mining (GQC, TSX-V) has traded down to its rising 20-day moving average of 23 cents this morning…we view the pullback we’ve seen in GQC since last Wednesday as merely a correction within a powerful new long-term uptrend…Sidon International Resources (SD, TSX-V) is up half a penny to 10.5 cents…Canaco Resources (CAN, TSX-V) has been halted this morning, pending news, so that is worth watching closely…