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Gold is trying to get back to business as usual after yesterday’s sharp fall…as of 6:10 am Pacific, the yellow metal is up $12 an ounce at $1,709…throughout this decade-long bull market in Gold, sudden and dramatic moves to the downside like yesterday have always been buying opportunities and we have a chart to prove it…this time should be no different…the action in the Venture Exchange yesterday was particularly encouraging as the CDNX largely shrugged off the $90 drop in Gold by falling only 21 points to 1672…the CDNX, a reliable leading indicator, has been out-performing Gold this year (and generally in recent months) and that’s a very positive sign (when it’s the other way around, like we saw beginning in March of last year, that’s when we need to be concerned)…below is a chart showing how the CDNX, the TSX Gold Index, Gold, Silver, Copper, and the U.S. Dollar Index all performed during the first two months of this year…Silver, Copper and the CDNX led the way…

Now as far as Gold is concerned, we asked John to update the chart after yesterday’s plunge and what you’ll notice is that Gold has been strongly supported by the weekly SMA(40)…there is no reason to believe this won’t continue…

Comments by Federal Reserve Chairman Ben Bernanke yesterday on the opening day of his Congressional testimony (he speaks again this morning before the Senate Banking Committee) were the main factor in driving Gold down yesterday as the market interpreted that he was questioning the appropriateness of more aggressive easing through “QE3″…the fact, remains, however, that the Fed intends to keep rates low for a long time and that’s a very bullish scenario for Gold which always perform well in that kind of monetary environment…on top of that, the world as a whole has been flooded with liquidity from central banks in recent months…the bullish case for Gold doesn’t cease just because of a one-day plunge or even if it were to fall some more…this market has very strong overall technical and fundamental underpinnings…

The Venture Exchange found support at its 20-day moving average (SMA) yesterday…we’re expecting a strong month of March which means a breakout through the 1700 resistance area…support is solid from 1600 and higher with the rising 50 and 100-day moving averages just below 1600 at the moment…

Stock index futures as of 6:10 am Pacific are pointing toward a positive open on Wall Street…Silver is up 20 cents an ounce at $34.84…Copper has gained a nickel to $3.89…Crude Oil is 30 cents higher at $107.37 while the U.S. Dollar Index is flat at 78.84…

This is a slightly abbreviated edition of Morning Musings today as we prepare for PDAC in Toronto which means leaving tomorrow from Vancouver…this show should be busier than ever and we look forward to updating our readers on several important and exciting stories…we’re expecting major fireworks this month out of Rainbow Resources (RBW, TSX-V) as the company has signaled to the market that a period of strong news flow is imminent…we suspect that includes release of the 43-101 compliant report on the company’s Big Strike Project in the Kootenays…if the assessment report on the International Property that one of our readers discovered on the B.C. Energy and Mines web site is any indication, Rainbow is going to have a terrific story to tell…RBW’s market cap is still only a very modest $9 million…

In response to an inquiry from one of our readers, below is a chart from John on Triausmin (TOR, TSX)…the stock has broken out from an ascending triangle…it closed yesterday at 16 cents and from a technical perspective has a good chance this month of testing resistance at 22 cents…

Note: John, Jon and Terry do not positions in TOR.