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Gold hit a low of $1,395 overnight but is now back above $1,400…as of 7:00 am Pacific, bullion is up $3 an ounce at $1,405…Silver is 8 cents higher at $22.63…Copper is up 2 pennies at $3.37…Crude Oil is 52 cents higher at $93.83 while the U.S. Dollar Index has fallen one-tenthof a point to 82.75…

Key for Gold bulls over the near-term is to keep prices above the $1,400 level and push through last week’s high of $1,422…technically, Gold is looking healthier these days as John’s charts have shown but the bulls still have some heavy lifting to do…Bank of America Merrill Lynch recently just switched its bearish outlook and is now more neutral on Gold prices…in April, after the major correction, the firm expected prices to hit $1,200 in the second half of the year…however, because of Gold’s recent consolidation period, the analysts have updated their forecast and they now expect prices to average the year around $1,478…”Despite the rather gloomy picture, it is worth nothing that some demand strength persists, which may ultimately prevent a complete meltdown in Gold and Silver prices,” they stated in a research note published May 28…

China’s Gold imports from Hong Kong slumped in April from a record as banks failed to get quotas fast enough to meet surging demand from mainland buyers keen to purchase bullion at reduced levels…mainland buyers purchased 126,135 kilograms, including scrap, compared with 223,519 kilograms in March, according to Hong Kong government data today…net imports, after deducting flows from China into Hong Kong, were 75,891 kilograms, from 130,038 kilograms a month earlier, according to Bloomberg calculations…“Some qualified banks used up their Gold import quota in the first 3 months and weren’t able to get the paperwork done fast enough to bring in bullion in April,” said Tian Rui, vice president of the precious metals division at INTL FCStone Trading Co…“We might see higher imports in May because demand surged after the rout”…

ADP/Moody’s:  U.S. Private Sector Job Creation Weaker Than Expected In May

Private-sector job creation was weaker than expected in May, as the economy struggles to break free of what appears to be a summer slowdown on the horizon…ADP and Moody’s Analytics reported just 135,000 new positions for the month, below expectations of 165,000…the poor showing sets the stage for a possibly weak non-farm payrolls report on Friday, when the Labor Department had been expected to show 169,000 new jobs…economists sometimes will use the ADP numbers to adjust their estimates for the government account, even though the private sector count has been a historically unreliable gauge…

CRB Index-U.S. Dollar Comparative Chart

The Venture Exchange performs best when the CRB Index is in an uptrend, and right now the CRB Index is looking quite positive…below is an encouraging 5-year weekly chart from John…note the “W” formation in the RSI(14) and a possible double bottom reversal pattern…significant room for an upside move over the summer which would support the Venture immensely…

Today’s Markets

Japan’s Nikkei average tumbled another 3.8% overnight, losing over 500 points to close at 13014…Prime Minister Shinzo Abe’s third “Abenomics” arrow failed to impress investors…he outlined measures such as setting up special economic zones to attract investment and raising incomes by 3% annually but failed to address reforms surrounding the labor market and corporate taxes, which resulted in a late-afternoon sell-off.…China’s Shanghai Composite closed relatively unchanged…European shares are weak in late trading overseas, while in New York the Dow is down 50 points as of 7:00 am Pacific…the TSX has slipped 88 points while the Venture is up half a point at 959.48…

Bellhaven Copper (BHV, TSX-V) Hits At La Garrucha

About 3 weeks ago (May 17), we alerted readers to Bellhaven Copper (BHV, TSX) which was trading at 6 cents as drilling started at the company’s highly prospective La Garrucha Gold-Copper target at its La Mina concession in Colombia…La Garrucha is near the eastern edge of the property with the La Mina concession already featuring an inferred resource of 1.6 million ounces of Gold and 419 million pounds of Copper…the company was drilling right into the heart of a large magnetic anomaly and this morning reported a significant discovery with an intercept of 217 metres grading 1.31 g/t Au, 0.15% Cu and 5.6 g/t Ag in the first hole (previous drilling at La Garrucha was restricted to the western fringe of the anomaly because of ownership issues)…as stated by the company in this morning’s news, given these results together with the large size of the core of the magnetic anomaly (350 m by 250 m), Bellhaven believes it now has made an important discovery less than 1 km away from its La Cantera and Middle Zone prospects…BHV also believes that the discovery at La Garrucha confirms that clusters of high-grade Gold-Copper porphyry deposits occur at La Mina and as such, the concession holds the potential to form a new and significant Gold-porphyry district in the Middle Cauca Belt of Colombia…

Below is an updated BHV chart after the stock closed yesterday at 7.5 cents…the stock has taken a beating since last September when it climbed as high as 30 cents…for some serious new bullishness to kick in, BHV needs to bust out (on a closing basis) above the downsloping channel (10 cents) which it has been in place for nearly a year…it gapped up to 11 cents this morning, traded as high as 12 cents and then tested what could be new support at 10 cents…through the first 30 minutes of trading, BHV is up 4 cents at 11.5 cents on strong volume…it’ll be interesting to see how this finishes today…so far this morning, it’s looking very good and the market will have plenty to speculate on going forward with more results to come…

Fission Uranium Corp. (FCU, TSX-V), Alpha Minerals Inc. (AMW, TSX-V) Report Remaining Results From Winter Drilling Program

Fission Uranium and 50% joint venture partner Alpha Minerals (AMW, TSX-V) released assay results this morning from the remaining 17 drill holes from their winter program at Patterson Lake South (PLS)…nothing earth-shattering in the new results, but they do show continuous areas of broad uranium mineralization at shallow depth in all three PLS zones…of particular note is hole PLS13-066 which returned an interval of 63.5 metes at 1.15% U3O8, including 2 metres at 9.51%…the summer exploration program continues…

Huldra Silver (HDA, TSX-V)

Capitulation moment?…Huldra Silver (HDA, TSX-V) set an all-time single-day volume record yesterday as it traded 711,000 shares and hit a fresh 3-year closing low of 29 cents…we suspect this was more of the institutional selling that has plagued HDA in recent months due mostly to overall market conditions, and it should be winding down…keep in mind that at 29 cents, HDA’s market cap is only $15 million for a company that expects to produce 1.4 million ounces of Silver, 5 million pounds of lead and 4 million pounds of zinc on an annualized basis by July 1…commercial production at the company’s high-grade Treasure Mountain mine started at the end of March and continues to ramp up…Huldra has some debt issues but nothing in our view that is not manageable…the company also has significant assets on its books – $30 million in property, plant and equipment, exclusive of the mineral rights and permitted mines, as of Dec. 31, 2012…

Technically, HDA is currently trading within a strong support band between 28 and 31 cents…note the very extreme RSI(2) oversold conditions on John’s 3.5-year weekly chart…the company announced last Friday that it has arranged a non-brokered financing consisting of up to 3.3 million non-flow-through units at 30 cents per unit and 7.5 million flow-through units at 40 cents per unit to raise about $4 million in total…it’s unfortunate they have to do a financing at these levels, especially the flow-through as that stock will likely be thrown back into the market later this year…

Nevada Sunrise Gold Corp. (NEV, TSX-V)

A situation to keep an eye on is Nevada Sunrise (NEV, TSX-V) which is a partner with Pilot Gold (PLG, TSX) on the Kinsley Mountain Project in northeast Nevada…PLG has proposed a $5.2 million exploration budget for 2013 which would include 22,000 metres of drilling…NEV holds a 35% participating interest in the project, and subject to finalization of the joint venture agreement expects that it will provide its proportional share of projected exploration expenditures at quarterly intervals through the rest of the year…NEV, which had working capital of nearly $750,000 at the end of March, has been hovering around a nickel over the past couple of months…it has 97 million shares outstanding…

Note: John, Jon and Terry do not hold share positions in BHV, HDA or NEV.