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Gold is advancing again today, thanks to a combination of short covering, bargain hunting and safe haven buying…as of 7:30 am Pacific, bullion is up $13 an ounce at $1,250…it climbed as high as $1,261 overnight…last week’s high of $1,267 will be an important level for the bulls to overcome in order to build some upside momentum…Silver got above $19.50, lost all of its gains but is now up 17 cents at $19.25…Copper is off a nickel at $3.06…Crude Oil is down 20 cents at $102.94 while the U.S. Dollar Index has gained one-third of a point to 84.58…

Not surprisingly, due to a lull between buying seasons, government measures and a stronger rupee, Indian Gold imports declined sharply in June but many analysts expect them to pick up again, particularly as the country moves toward its key autumn buying season…according to news reports, an Indian government source said the country’s demand fell to 31.5 metric tons in June after a record 162 in May…the All India Gems and Jewelry Trade Federation reportedly estimated June imports at 37 to 40 tons…Indians’ appetite for Gold is deeply rooted in the country’s culture and is not about to stop, so investors shouldn’t read too much into that weak June number in our view…physical buying out of China is reportedly strong which is helping to offset the temporary slowdown in India…

Scotiabank analysts are the latest to revise their Gold-price forecasts…“Our 2013 Gold price assumption is adjusted to $1,400/oz from $1,550/oz…we have also decreased our 2014 to 2016 estimates to $1,300/oz (from $1,700/oz), $1,400/oz in 2015 (from $1,700/oz) and $1,500/oz in 2016 (from $1,600/oz)…our long-term Gold price is unchanged at $1,300/oz, which reflects normalized all-in costs in the industry,” said Scotia Capital in a report yesterday…”Short-term, the Gold price faces headwinds with the strengthening of the U.S. dollar…and more positive sentiment toward the global economic outlook,” said the analysts…“This has resulted in Gold’s role as a ‘safe haven’ changing somewhat, and outflows have been evident both in the Gold ETF’s and Comex positions…we believe this sentiment will continue into 2014…“We believe we are in a period similar to the 1970’s when the Gold price is expected to pause and the next move upward will be driven by inflationary expectations…with the recent decline in the Gold price, mine output is forecast to slow down and decline longer-term…this is due to lower grades being mined coupled with the deferral of the projects,” they stated…

Today’s Equity Markets

Asian markets were strong overnight with Japan’s Nikkei average surging 364 points or 2.6% to close at 14473…China’s Shanghai Composite was more subdued, adding just 7 points to finish at 1965…consumer prices in China were up 2.7% in June from a year ago, more than a Reuters forecast for a 2.5% gain…meanwhile, overcapacity issues led producer prices to fall for a 16th straight month…the country’s shadow banking system, however, remains the market’s short-term focus…European shares are up moderately in late trading overseas…meanwhile, the Dow is up 22 points through the first hour of trading…the TSX is off 5 points while the Venture is up 1 at 874…

Fission Uranium (FCU, TSX-V)

We expect the Saskatchewan uranium play to remain hot…last week, an excellent chart from John showed how Fission Uranium (FCU, TSX-V) at 70 cents was trading at channel support and poised to move higher which it has done…yesterday, it climbed 6 cents on nearly 2 million shares to close at 79 cents…below is an updated chart…as always, perform your own due diligence…FCU is off a penny at 78 cents as of 7:30 am Pacific…

GoldQuest Mining (GQC, TSX-V) Drills 269.35 Metres Grading 2.35 g/t Au & 0.56% Cu

An infill hole, but impressive nonetheless as the longest mineralized intercept to date at GoldQuest Mining’s (GQC, TSX-V) Romero discovery – 269.35 metres grading 2.35 g/t Au and 0.56% Cu…LTP-140 was located about 125 metres east of the original discovery (LTP-90), while another infill hole in the immediate vicinity (LTP-143) returned a 34-metre interval of 10.94 g/t Au and 1.87% Cu at a depth between 150 and 184 metres…a step-out hole collared 200 metres northwest of LTP-90 returned just 35 metres of 0.53 g/t Au and 0.05% Cu…Romero is more open to the south where there could be an important link with La Escandalosa…what we’re most looking forward to are drill results from the very promising Guama trend to the west of Romero…GQC gapped up to 44 cents this morning and got as high as 47 cents…after 1 hour of trading, it’s ahead 6 cents at 43 cents on volume of more than half a million shares…technically, a close above the opening price today would be very bullish…the chart is looking strong…

Garibaldi Resources (GGI, TSX-V) and Prosper Gold (PGX.H, TSX-V)

One of the “sweet spot” entry points in any stock from a technical perspective is when the 50-day moving average (SMA) reverses to the upside and has the ability to continue to gradually trend higher over the longer-term…that’s the case with Garibaldi Resources (GGI, TSX-V), which we like also for important fundamental reasons…what’s also highly significant about GGI technically at the moment is the fact that it has broken above long-term RSI(14) resistance as you can see in John’s chart below…folks, there’s a strong case for a powerful reversal in Garibaldi just based on what the technical picture is telling us…on the ground, GGI holds an attractive package of properties in Mexico but the likely catalyst for a potential sharp move higher in this stock is the company’s Grizzly Property in northern British Columbia, just northwest of Telegraph Creek and about 60 miles from Colorado Resources‘ (CXO, TSX-V) North ROK discovery…the Grizzly is BIG – 17,000 hectares – and contiguous to the western and southern boundaries of the advanced-staged Copper Creek Property which Pete Bernier’s Prosper Gold (PGX.H, TSX-V) has major immediate plans for…

There is no one who has established greater credibility in the junior resource sector over the last few years, in our view, than Bernier who took Richfield Ventures from pennies in 2009 to a $500 million buy-out by New Gold Inc. (NGD, TSX) in 2011…he then created Prosper Gold, looking for the right project to vend into it…after searching everywhere, they chose the Telegraph Creek area in early May…Bernier has the exact same team that allowed Richfield to execute so magnificently at Blackwater, including award-winning geologist Dirk Tempelman-Kluit…if you want to make money, follow those who have made it, still have it, and are growing it…we’re convinced there are historic opportunities on the Venture at the moment, but investors must focus on companies and individuals with proven track records and the ability to execute both on the ground and in the market…that’s the only way to avoid deception and the money-sucking “lifestyle” companies that have infested the Venture like rats in recent years…

While Prosper Gold remains halted pending approval of a very important transaction (option agreement for the Copper Creek Property), investors can get a head start on what promises to be a very hot exploration play with Bernier’s new deal this summer by taking a good look at Garibaldi…we did our due diligence which included a trip to the Iskut area, conversations with independent geologists and prospectors, and discussions as well with company management (Garibaldi and Prosper Gold)…Garibaldi’s Grizzly Property is of major strategic value in the context of Copper Creek…investors have slowly been catching on to this in recent weeks, which is why volume in Garibaldi has picked up considerably…with working capital of 8 cents per share as of the quarter ending April 30, Garibaldi is in a healthy financial position – unlike most juniors – and has a very reputable management team led by President and CEO Steve Rogoci…

Prosper Gold’s Game Plan And How Garibaldi Is Involved

Tempelman-Kluit believes the Copper Creek Property has immense potential as a major Copper-Gold porphyry system given historical data and the geology of the area (undiscovered belts)…that’s why Prosper Gold has optioned the 7,000-hectare property from Firesteel Resources (FTR, TSX-V) as its “qualifying transaction” currently under review by the Venture Exchange…Prosper Gold has the technical expertise to take Copper Creek to the next level – Firesteel doesn’t, as simple as that…Tempelman-Kluit is a genius at data compilation and interpretation…that’s why he discovered one of Canada’s biggest-ever Gold deposits at Blackwater…

Drill permits for Copper Creek are in hand and investors can expect the Prosper Gold team to hit the ground running very hard…Bernier made fortunes for many investors through Richfield…they will be lining up for a possible repeat performance with Prosper Gold…it’s important to note that Bernier’s team reviewed many possible projects since 2011 before settling on Copper Creek…in the words of one very well known British Columbia claim staker we spoke to, Copper Creek is “exceedingly good”…

Copper Creek & Grizzly – 240 Sq. Km Of Prime Geological Real Estate

What most investors and brokers are unaware of is the geological connection between Garibaldi’s Grizzly Property and Copper Creek…the Grizzly, though certainly less advanced as an exploration target, is more than twice the size (17,000 hectares vs. 7,000), and is contiguous to the western and southern boundaries of Copper Creek…over the last year, Teck Resources (TCK.B, TSX) has staked ground right up to the southern border of the Grizzly…if you read the latest technical report on the Grizzly on Garibaldi’s web site, it’s not difficult to come to the conclusion that Copper Creek-Grizzly could be one giant mineralized system…some geologists we’ve spoken to believe the “heat engine” source for the entire area is in the northwest corner of the Grizzly Property (we’ve posted a 3-D map of this)…that’s why we believe the Grizzly holds huge strategic value for Prosper Gold, geologically and also for potential industrial/infrastructure reasons (read our July 2 Morning Musings for additional geological details)…

Garibaldi not only holds 100% of the Grizzly Property, but they also have significant exploration assets in Mexico…it’s a year-round play which adds to its attractiveness…the company has been focusing almost entirely on its Mexican properties, which has helped to hide this opportunity with the Grizzly…but they are keenly aware of the quality and importance of the Grizzly Property, and our sense is that Garibaldi will bring the Grizzly out of “hibernation” very shortly…it’s in their strategic interest to do so with Bernier ready to unleash an aggressive exploration program immediately to the north…

Bernier and his team WILL EXECUTE, in our view, and this means investors could prosper tremendously – not just through Prosper Gold, but also through Garibaldi…Firesteel is also a good option, and other juniors may enter the picture as well…of course Doubleview Capital Corp. (DBV, TSX-V) has recently completed 6 holes at the Hat Property with assays pending…

Happy Creek Minerals (HPY, TSX-V) and Magor Communications (MCC, TSX-V)

Two other interesting situations we suggest our readers perform fresh due diligence on – Happy Creek Minerals (HPY, TSX-V) and Magor Corp. (MCC, TSX-V)…we’ve mentioned these plays before, but not for a while…they are worth revisiting right now…

It’s hard not be bullish on Tungsten, a strategic metal that has obviously been performing much better than Gold…Happy Creek is expected to commence a new phase of drilling any day now at its Fox Tungsten Property north of 100 Mile House where previous drilling has intersected top-tier Tungsten grade and thickness at or in a near-surface setting…this upcoming program will test the extent and grade of the mineralized zone with a view to outlining an initial resource…investors will be Happy this summer if HPY can bust through a downsloping channel in place for the past year…the Fox Property looks very good and it’s yet another British Columbia exploration story that could really up over the next couple of months…HPY closed a penny higher yesterday at 16 cents…it hasn’t traded yet this morning…below is a 2.5-year weekly chart from John…

Magor Corp. (MCC, TSX-V)

We initially brought our readers’ attention to Magor Corp. (MCC, TSX-V) the day it started trading on the Venture several months ago after completing its QT and raising gross proceeds of nearly $6 million…what excites us about Magor are powerful individuals involved (eg: Terry Matthews, Mike Pascoe) and the fact this is one of only 2 companies in the world that is changing the landscape of video conferencing and collaboration…we’ve seen this system in action and it’s a game-changer in our view…Magor has been gradually gaining clients and revenues are expected to ramp up considerably during the second half of this year…their latest quarterly financials will be coming out shortly – something to watch for…MCC has been a thin trader so far but investors will jump in once they see revenue momentum and the earnings potential for this company’s high-margin products…at just 42 cents, MCC could be a major winner for patient investors over the next 12 months…we’ll have more on MCC in the coming weeks…in the meantime, we highly recommend our readers look into this situation…below is a chart from John on MCC’s first 4 months…

Note: John and Terry do not hold share positions in FCU, GQC, GGI, HPY or MCC.  Jon holds share positions in GQC, GGI, HPY and MCC.

The BMR team is taking its annual short summer break from tomorrow through Sunday, July 14.  Morning Musings returns Monday, July 15.