BullMarketRun.ca

Gold is down for the second straight day but continues to hold above major support at $1,350…an optimistic U.S. economic growth forecast from Federal Reserve Chairman Ben Bernanke yesterday was the catalyst for a sell-off in Gold with investors fearing that Bernanke may ease up on “QE” measures…not surprisingly, China has also taken additional steps to tighten its monetary policy as emerging markets continue to battle inflationary pressures…as of 8:20 am Pacific, the yellow metal is down another $16 for the day at $1,358…reports are that physical buying remains strong in Asia and that should help underpin prices…Silver is off 48 cents at $28.26 while the U.S. Dollar Index is essentially unchanged at 79.17…U.S. December retail sales rose 0.6%, less than the 0.8% analysts expected but sales for all of 2010 gained 6.65% after falling 6.5% in 2009…the annual gain is the largest since 1999…CPI numbers also came out this morning…December CPI rose 0.5%, the biggest increase since June, 2009, due to higher gasoline prices…the core CPI rose 0.1% for December which was in line with expectations…the CDNX is off sharply this morning, declining 21 points to 2268…technically, this is still a very healthy market and the winning strategy in our view continues to be to embrace any weakness…the TSX Gold Index has dropped below rising its 200-day moving average (SMA) for the first time since last summer…this has happened on only a handful of occasions over the last two years and each time it has presented an excellent buying opportunity with Gold hitting a bottom…Gold Bullion Development (GBB, TSX-V) is off three pennies at 76 cents after dropping as low as 71 cents…GBB is following a familiar and bullish technical pattern if you look closely at its chart over the last number of months…this kind of weakness has consistently represented an attractive opportunity…Seafield Resources (SFF, TSX-V), which has shown good strength in recent days, is off two pennies at 56 cents…the Seafield chart looks very positive as John outlined this morning…we’re keeping a close eye on Kent Exploration (KEX, TSX-V) which is firming up on a significant turnaround in its fortunes…Kent was a market laggard during the final six months of last year but we expect it will enjoy a much better first half of 2011…the financing for spin-off company Archean Star Resources has been completed and Archean Star is expected to be approved for trading very soon on the Venture Exchange…that represents a nice “dividend” for Kent shareholders…drilling is on-going at the Gnaweeda Gold Project in Western Australia where Kent (Archean Star) is following up on last spring’s impressive result of 18 metres grading 12.34 g/t Au at Bunara…the technicals are looking much more favorable now for Kent and the stock is currently up half a penny at 15.5 cents on relatively strong volume of over 500,000 shares…Currie Rose Resources (CUI, TSX-V) is trying to find its footing…CUI hit a low of 17 cents this morning but is currently unchanged at 18 cents on over three million shares…bargain hunters are definitely stepping as CUI tries to gain some traction out of oversold conditions…Abcourt Mines (ABI, TSX-V) is up a penny at 19 cents after some “gap-filling” yesterday…the chart and fundamentals with this one are extremely positive…