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Gold has cracked the $1,600 level this morning, hitting another new all-time high…as of 9:00 am Pacific, the yellow metal is up $10 an ounce to $1,604 after hitting a high of $1,608…Gold is shooting for a record 11 straight daily advances…Silver, trying to push through resistance at $40 an ounce, is $1.10 higher at $40.37…Copper is unchanged at $4.39 a pound, Crude Oil is off $1.70 to $95.54 while the U.S. Dollar Index has gained one-half of a point to 75.66…U.S. Treasury Secretary Tim Geithner told CNBC this morning that he is certain that congressional leaders will strike a deal to raise the federal debt ceiling prior to the August deadline to avoid default…he’s likely correct but the political dynamics in Washington right now are such that that the U.S. deficit and debt problems are probably not going to be effectively addressed (bullish for Gold) until after the 2012 elections when the American electorate will hopefully come to its senses and toss President Obama out of office for being the most incompetent President since Jimmy Carter…first and foremost, the U.S. has a spending problem…in fact, never before has the U.S. government consumed so much of the private sector’s wealth creation…this is what needs to be addressed but it’s unlikely to happen under the current President who is a self-described “community organizer” with a seemingly limited understanding of how a properly functioning free enterprise economy needs to operate…according to the U.S. Chamber of Commerce, 64% of small businesses will not hire any new employees over the next year while 79% state that taxation, regulation and legislation make it harder for them to hire more employees…as far as potential budget cuts are concerned, the Heritage Foundation has identified about 90 programs that can be reduced or eliminated entirely at a savings of $343 billion annually…Obama’s insistence on raising taxes on the “wealthiest” of Americans ignores the truism that higher taxes kill jobs, investment and wealth creation, not to mention the fact that Washington’s problem right now is not a revenue issue but a spending disease…starving this money-sucking monster of its food supply – taxes – is the only way to address the deficit and debt and create a smaller, leaner and more efficient government that does less and spends less…that’s not an ideological position, it’s a statement of fact…Obama came into office with the goal of increasing the role of government in American society…ironically, his actions have built an even stronger case for the biggest “sizing down” of government in American history and that will be his legacy…in all fairness, Obama is obviously not the only one at fault here…every member of Congress, Democrat and Republican, needs to understand that Americans and the world can no longer afford the current size and scope of the U.S. government and a revolutionary shift is required…action will come but not likely for another year-and-a-half when the U.S. is even deeper in debt…aided by Gold’s move to $1,600, the CDNX climbed as high as 2019 in early trading but has since pulled back in sympathy with the broader markets as the Dow is down over 1%…as of 9:00 am Pacific, the Venture is off 1 point at 2006…there is resistance around 2050, so the CDNX may not push through that area on its first attempt…there’s strong support at 1980 where the 10-day and 50-day SMA’s converge…the TSX Gold Index is on the move this morning…it has broken out above 400 and its 200-day moving average (SMA)…while it could still run a little higher over the immediate future, technical indicators show the Index is in overbought territory at the moment and some consolidation can be expected before another potential big push to the upside as John outlines in the chart below…

Back to the CDNX…Silver Quest Resources (SQI, TSX-V) continues to look very strong from a technical perspective and it’s underpinned by powerful fundamentals…SQI got as high as $1.19 in early trading…it’s currently unchanged at $1.14…RSI(14) and Slow Stochastics are nicely positioned to allow SQI to move higher immediately or over the near-term…Golden Predator (GPD, TSX-V), with the advantage of considerable infrastructure at its Brewery Creek Project, is another Yukon play we like a lot…the technicals with GPD are also very favorable at the moment…the company announced this morning that it has commenced sonic drilling into the existing heap leach pad at Brewery Creek…this program is in addition to GPD’s aggressive ongoing exploration program at Brewery Creek which is delineating the recently discovered Bohemian-Schooner Zone as well as exploring other high priority targets across the expansive project area…Brewery Creek was the site of a heap-leach Gold mine that operated from 1996 to 2002 and produced 279,541 ounces of Gold…recovery rates were approximately 65%, leaving a significant amount of Gold in the reclaimed heap leach pad…the Company has started testing the viability of recovering contained Gold in the heap…GPD is currently up a penny at $1.11…Kaminak Gold (KAM, TSX-V) is off a nickel at $4.32, Ethos Capital (ECC, TSX-V) is down 2 pennies at $1.27 while Pacific Ridge Exploration (PEX, TSX-V), which John highlighted in a chart Friday morning, is looking good and is unchanged at 44 cents after a 6.5-cent jump Friday…across the country, in northwest Quebec, we’re keeping close watch on a number of plays…Richmont Mines (RIC, TSX), which should report absolutely stellar second quarter earnings in a few weeks, is up 19 cents at $8.23…we’re of the opinion the company’s growing Wasamac deposit, 15 kilometres west of Rouyn-Noranda, has the potential to develop into a much bigger resource than what has already been outlined in the measured, indicated and inferred categories (1.4 million ounces)…we’ll be exploring Wasamac in more detail in the coming weeks…Visible Gold Mines (VGD, TSX-V), which is working on claims in the immediate vicinityof Wasamac, is up 2 pennies at 31 cents…VGD’s 10 and 20-day moving averages (SMA) are rising sharply together for the first time this year…the company is aggressively exploring the Wild West of the Cadillac Trend (ground to the west of Rouyn-Noranda, parts of which have never been drilled before) and will also be launching a major drill program at its highly prospective Joutel Project 150 kilometres north of Rouyn-Noranda…the eastern leg of the Joutel property has geological signatures similar to Agnico-Eagle’s (AEM, TSX) previously mined deposits (Telbel, Eagle and Eagle West) a few kilometres to the west-northwest…Adventure Gold (AGE, TSX-V) is unchanged at 56 cents…AGE is advancing several quality projects at the moment and the one we believe has the most potential to drive shareholder value over the summer is Pascalis-Colombiere, site of the former L.C. Beliveau Mine operated by Cambior…drilling continues at the property as AGE attempts to confirm the continuity of grade and structure, but Pascalis-Colombiere is looking extremely promising given results to date…this could truly be a company-building project that has the potential of taking AGE to a whole new level…Gold Bullion Development (GBB, TSX-V) is unchanged at 42 cents…other situations to be watching closely include Currie Rose Resources (CUI, TSX-V), which is a penny at 18 cents this morning, and Seafield Resources (SFF, TSX-V) which has been moving higher on increased volume over the last five weeks…