BullMarketRun.ca

After dropping as low as $1,443 yesterday, Gold is firmer today on bargain hunting…as of 8:30 am Pacific, the yellow metal is up $5 an ounce at $1,459…Silver remains above $40 at $40.64, a 53-cent increase over yesterday…crude oil, after getting smacked hard the last couple of days on a seemingly strange sell recommendation from Goldman Sachs, has climbed 94 cents to $107.19…the U.S. Dollar Index is flat at 74.83…Following Goldman Sachs’ negative call on crude prices which took the wind out of the commodities’ rally Monday, Bank of America Merrill Lynch is predicting a 30% chance that Brent crude could hit $160 a barrel in 2011…“Commodity prices should move broadly higher in 2011 on robust economic growth in emerging markets, despite relatively weaker growth in developed markets,” said Sabine Schels, a commodity strategist at Bank of America Merrill Lynch in London in a research note…sales at U.S. retailers rose slightly less than expected in March as rising gasoline prices pulled spending away from other segments and receipts from auto dealerships fell, a government report shows this morning, pointing to slower U.S. consumer spending in the first quarter…total retail sales increased 0.4 percent, a ninth straight month of gains, the Commerce Department said today…March’s reading was the weakest since June when sales fell 0.3 percent…the U.S. lacks a “credible strategy” to stabilize its mounting public debt, posing a small but significant risk of a new global economic crisis, says the International Monetary Fund…in an unusually stern rebuke to its largest shareholder, the IMF said the U.S. was the only advanced economy to be increasing its underlying budget deficit in 2011 at a time when its economy was growing fast enough to reduce borrowing…to meet the 2010 pledge by the Group of 20 countries for all advanced economies – except Japan – to halve their deficits by 2013, the U.S. would need to implement tougher austerity measures than in any two-year period since records began in 1960, the IMF said…expect House Republicans to keep President Obama’s feet to the fire regarding the debt ceiling, the deficit and the debt as these issues begin to really start coming into the spotlight…the CDNX is trying to bounce back after two very weak days…the Index dropped 85 points Monday and yesterday after touching nearly 2400 right after the opening bell Monday…the 20-day moving average (SMA), which just recently reversed to the upside which is a bullish development, is providing technical support at the 2300 level…this market has shown tremendous resiliency over the past month and with Gold remaining in an uptrend we continue to be optimistic as the last half of April approaches…as of 8:30 am Pacific, the CDNX is ahead 16 points to 2320…Everton Resources (EVR, TSX-V) hit a new 52-week high of 44 cents this morning after the company released results from 16 holes from the La Lechoza prospect at its APV Property adjacent to the Barrick-Goldcorp Pueblo Viejo deposit…hole #30 was impressive with a near-surface intersection of 10.50 metres (12.50 to 23 metres depth) grading 2.29 g/t Au, 65 g/t Ag, 0.64% Cu and 3.43% zinc…assay results are still pending for most of that hole (30.50 metres to 147.50 metres)…the deep drilling program at APV designed to test the theory of deep mineralization covered by a barren silica lithocap started three weeks ago…plenty of potential at this property for Everton with much work ahead…the stock has consistently run into resistance around the 40-cent level…we believe it’s just a matter of time before that is overcome…EVR has pulled back from its high this morning and is currently up 2.5 cents at 40 cents on volume of nearly 600,000 shares…patient investors have an excellent opportunity with that play in our view…the same applies with GoldQuest Mining (GQC, TSX-V) which has yet to release initial assays from drilling at its highly prospective La Escandalosa Project in the DR…we’re confident that project will deliver…GQC has been trading in the low 30’s recently, several pennies above its rising 300-day SMA which provides excellent support…Gold Bullion Development (GBB, TSX-V) is up three pennies to 53 cents after a successful test of the 50-cent level in yesterday’s market weakness…GBB’s announced planned spin-off of its Castle Silver Mine Property is a very positive development…Gold Canyon Resources (GCU, TSX-V), which we’ve mentioned quite frequently over the past month, staged a powerful intra-day reversal yesterday as it hit of low of $3.35 (strong support area) during the market “panic” and then rallied to close at $3.69…that was an 11-cent loss for the day but the turnaround was impressive and bullish from a technical standpoint…GCU is currently off 3 pennies at $3.66…the stock hit an all-time high of $4.22 last week…the 20% correction was normal corrective action in an ongoing overall uptrend that could take GCU much higher considering the 5+ million ounce potential of its Springpole Project, 110 kilometres northeast of the Red Lake mining camp…Visible Gold Mines (VGD, TSX-V) is off half a penny at 39 cents…mark our words – VGD is going to become one of the most exciting exploration plays in northwest Quebec this year…it is guided by strong management and an astute geological team led by Robert Sansfacon who played a key role in the discovery of Osisko’s (OSK, TSX) Canadian Malartic deposit…with $8 million in cash and over 20,000 hectares of land already under its control (drill programs at two properties are in progress), Visible Gold Mines is well positioned to make a significant discovery…we expect this aggressive company to pull the trigger on additional land acquisitions as well…White Tiger Mining (WTC, TSX-V) is quiet this morning, unchanged at 80 cents…the stock has strong technical support around the 70-cent level as demonstrated yesterday when it recovered after falling as low as 71 cents…if assay results turn out to be outstanding for holes RMZ-21 and RMZ-23, it still won’t be too late to get in on the party with this one…in the near future we’ll start to explore in more detail the opportunities we see in the exciting Blackwater Gold District where Richfield Ventures (RVC, TSX-V) has a major deposit on its hands with a buyout offer as well from New Gold Inc. (NGD, TSX)…it’s our intention to make a trip to the Blackwater area by early June…investors interested in holding a producer should do some serious due diligence on New Gold which is putting out very impressive numbers these days that are exceeding many analysts’ expectations…