Gold is steady so far today after hitting a 3-week low and testing strong support near $1,350 yesterday…as of 7:00 am Pacific, the yellow metal is up $1 an ounce at $1,365…Silver has added 19 cents to $23.16…Copper is up a penny at $3.25…China imported 388,000 metric tons of Copper and related products last month, which was a 6% decline compared to July…however, this was still firmly above the average monthly import levels of 350kt over the past 2 years…Crude Oil has added 28 cents to $107.67 while the U.S. Dollar Index is off one-fifth of a point at 81.62…
Easing fears of a potential imminent military strike on Syria drove Gold and Oil lower yesterday, but the way President Obama has handled this issue in our view has made him look weak on the international stage which ultimately may have bullish implications for bullion…last night, he asked Congress to postpone a vote endorsing a military strike – a vote he knows he’s likely to lose – on hopes that there could be diplomatic progress given talks between Russia and Syria that have the appearance of stalling tactics more than anything else…at a time when he should be focusing on the U.S. economy like a laser beam (“The economy, stupid,” was a successful phrase in Bill Clinton’s 1992 election victory), Obama has unnecessarily tangled himself up over a foreign domestic conflict (a civil war with 2 bad sides) that presents a no-win situation for the United States and the West…
On this the 12th anniversary of the terrorist attacks on the United States, a new Fox News national poll has found that nearly 4 voters in 10 (38%) feel the U.S. is less safe today than before 9/11…thatās up 5 percentage points from 2011 (the last time this question was asked), and is the highest number saying the country is less safe in any Fox News poll…
Gold prices could rise if the Fed does not trim its bond-buying program as much as market consensus expects, according to BofA Merrill Lynch Global Research…the firm says expectations are that the Fed will taper its monthly asset purchases by $10 billion to $15 billion…that view is already priced into the market…āIf the Fed is more dovish than that, i.e., tapers by less or delays tapering entirely, Gold prices could rally in the short term.”
Technically, Gold is showing solid support at the top of a previous resistance band between $1,320 and $1,350…there’s also an uptrend line in place at $1,350 that has developed this summer…within that previous resistance band (now very strong support) is also the rising 50-day moving average (SMA) around $1,327…
Despite the fact official Gold imports by India (how much bullion is being smuggled into the country now?) crashed 95% in August, to a meagre 2.5 tonnes as compared to 47.5 tonnes in July, the Indian government is reportedly looking to impose a fresh round of duty curbs on the import of precious metals…
China Leadership To Push Ahead With Reforms
China’s economy is stable, local government debts are under control and the leadership will push ahead with reforms, Premier Li Keqiang said today, according to a report from Reuters…Li also told government leaders and company executives at a forum in the northeastern port city of Dalian that the country will keep its monetary policy stable even if capital markets show volatility…“China is at a critical stage of restructuring and updating its economy. China’s economic fundamentals are good and economic operations are stable,” Li said…he reiterated that the Chinese government will safeguard the lower limits of growth and employment, without giving specific numbers…while protecting growth, China will also speed up reforms, including liberalizing interest rates and increasing efforts to boost consumption, he added…
Today’s Markets
Asian markets were relatively unchanged overnight…China’s Shanghai Composite finished 3 points higher at 2241…
European shares are mixed in late trading overseas…
The Dow, which has gained nearly 270 points the last 2 sessions, is up another 28 points as of 7:00 am Pacific…the TSX is off 27 points while the Venture is up a point at 944, just slightly above its rising 20-day SMA…the rising 50-day SMA is currently at 925, providing additional support…Caribou King Resources (CKR, TSX-V) is one of today’s early volume leaders, gaining 2 cents to 7.5 cents and a new 52-week high on total volume (all exchanges) so far of 3.4 million shares…CKR reported this morning that ground-based electromagnetics (EM) has identified 4 significant conductors on the company’s 100%-owned Mulloy Graphite Property, located 10 km west of Zenyatta Ventures‘ (ZEN, TSX-V) Albany Project…
Zenyatta Ventures Inc. (ZEN, TSX-V) Update
Zenyatta Ventures (ZEN, TSX-V) felt the need through a news release yesterday to address the current slump in its share price, saying it “has become aware of recent misleading and inaccurate commentary in the marketplace regarding the company’s 100-per-cent-owned Albany graphite deposit which has negatively affected the share price. Although the company would prefer to stay focused on continued development of its exciting graphite project, it feels a need, from time to time, to set the record straight from malicious attacks.”
One can argue that ZEN is being a little bit over-sensitive as critics have their role to play, just as ZEN’s allies do…from a purely technical standpoint, the recent share price action in Zenyatta has really been quite normal as the stock unwinds a temporarily heavy overbought condition that had emerged during the last couple of months as you can see in John’s 6-month daily chart…interestingly, ZEN also touched its still-rising 100-day SMA yesterday where it has found consistent support since its big move started last year…as of 7:00 am Pacific, ZEN is unchanged at $3.25…
Teuton Resources Corp. (TUO, TSX-V) Update
Last month, we wrote about several different potential catalysts for Teuton Resources (TUO, TSX-V) when it was trading below 10 cents a share…TUO has been around for a long time and holds a large amount of ground in strategic areas around northwest British Columbia…it’s also currently drilling the interesting King Tut zone, 150 metres south of the border between its High Property and Pretium Resources‘ (PVG, TSX) Brucejack-Snowfield Project approximately 60 km north of Stewart…yesterday, TUO announced that it has sold its remaining interest in the Tennyston Property to Brigade Holdings Ltd., a Hunter Dickinson company, for $7 million, being $500,000 plus $6.5 million in subscription receipt units (shares and warrants) of Brigade…
Teuton hit an 8-month intra-day high yesterday of 19 cents before pulling back and closing up a penny-and-a-half at its 15-cent resistance level…if and when this resistance area will be overcome is anyone’s guess, but we do like the odds of that occurring at some point – sooner or later – given the overall technical posture of the stock as shown in the 15-month weekly chart below from John…as always, perform your own due diligence…TUO is up a penny at 16 cents through the first 30 minutes of trading…
Dolly Varden Silver Corp. (DV, TSX-V) Releases Assays From 1st Holes Of Summer Drill Program
Dolly Varden Silver Corp. (DV, TSX-V) has released assay results from the 1st several holes of the company’s 3,063-metre (14-hole) summer exploration program targeting extensions of the historically mined Torbrit deposit at its 64 sq. km Dolly Varden Property in northwestern B.C., 120 km SSE of the historic Eskay Creek mine…DV’s drilling is focused on confirmation and extension of mineralization from the Torbrit Mine, one of 2 historically mined high-grade Silver deposits on the property…TB13-03 provided the best intercept – 17.1 metres grading 509 g/t Ag (14.0 oz/ton)…the program this summer, according to DV, shows evidence that the Silver mineralization at the property was introduced in more than 1 phase, with a later native Silver rich phase adding significantly to the overall Silver grade…this is an interesting property with attractive potential and a strong geological team overseeing it…DV opened 2 cents higher at 19 cents this morning…after 30 minutes of trading, it has backed off and is now unchanged at 17 cents…
Ginguro Exploration Inc. (GEG, TSX-V)
We’ve avoided the temptation to get overly excited about recent channel sample results released by Ginguro Exploration Inc. (GEG, TSX-V) as GEG’s Pardo Property near Sudbury is far from being fully understood, and the company is also trying to complete financings at 10 cents and 15 cents…in situations like this, once the money is in the company’s till, it’s like someone taking their foot off the accelerator – the share price often retreats rather significantly, at least temporarily…
GEG’s 2.5-year weekly chart provides ample warning to investors who wish to chase this thing right now…GEG, which shot up as high as 40 cents Monday, is technically very overbought and prone to additional weakness after falling the last couple of days…it needs to consolidate and form a base…and of course the company needs to wrap up its financings…as of 7:00 am Pacific, GEG is down 1.5 cents at 30 cents…
Note: John, Terry and Jon do not hold share positions in TUO, DV, ZEN or GEG.
Hi Jon, can you comment on the drop in GGI lately? Seems odd for a company who is supposedly preparing to jump on the bandwagon in the Shesley area.
Comment by Dan — September 11, 2013 @ 6:21 am
CKR! GREAT NEWS!
Comment by STEVEN — September 11, 2013 @ 6:36 am
LAN! GREAT NEWS!
Comment by STEVEN — September 11, 2013 @ 6:36 am
Dan, no concerns whatsoever re: GGI, things are extremely busy behind the scenes there I suspect and we’ll be hearing from them shortly as Regoci indicated…what we’ve seen in the last several trading sessions is normal technical behavior in the stock which is perfectly healthy…the short-term chart shows quite oversold conditions, and the long-term chart as John has shown is very bullish…the houses that have been accumulating over the last couple of months continue to accumulate, and I’m happy to have added more myself at these levels…have faith in the geology of this play, both GGI and PGX, and in the top-notch people behind it, as they know what they’re doing in all areas…this has all the makings of a major geological success and a big market story…it will ramp up in due course very soon I’m sure…
Comment by Jon - BMR — September 11, 2013 @ 6:45 am
Jon – The way President Obama has handled this issue in our
view has made him look weak on the international stage .
Bert – My view is that if he looks weak, it’s the weaklings
who see him that way. No one, on this side of the Arab world,
except France, were willing to support him with anything but
words. Who wants a war anyway, haven’t we had enough killing
already. If a war is what it takes to give Gold a boost, i say
shame ! because any buying Gold out of fear, will show us who
the real weaklings are. No matter what some may think of the
President’s moves. it may have prevented another war & that
pleases me, Who wants someone to show up at a soldiers door
to say that one’s son or daughter has been killed. There are
some, who will never give the President credit, no matter what
& often, it’s not for valid reasons, they just can’t find it
within themselves to give credit where credit is due. R !
Comment by Bert — September 11, 2013 @ 7:26 am
did you post the greencastle interviews yet? Did I miss them?
Comment by Hugh — September 11, 2013 @ 8:07 am
Bert,
what great things has this President done to warrant all of this credit you speak of? Do you live here in the US of A,? he has made a joke of this country in the world’s eyes and his Obamacare is going to destroy the middle class completely. I have a lot of friends that have small businesses that are very very concerned how they are going to implement this Obamacare or even survive, some are talking about totally shutting down, and it’s just not people I know, I am hearing this everywhere, this past week everyone started receiving in the mail the Obamacare regulations for their businesses and also the insurance companies started sending out letters to their customers as well as we recieved ours. This is the biggest nightmare ever. So please tell me what great things this president has done that I should be giving him all of this credit for…
Comment by Greg — September 11, 2013 @ 8:13 am
Morning BMR. Any plans on releasing any more of the interview on VGN?
Comment by Chris — September 11, 2013 @ 8:38 am
More coming soon.
Comment by Jon - BMR — September 11, 2013 @ 9:10 am
Greg
One do not have to be an American to admire it’s President.
I will make this short, because your mind is already made
up & it is not my intention to try to convince you. It
appears that the Republicans have done their job in
convincing some that this President is just no good, no
matter what. I will conclude that you have your opinion
and i have mine & because i am a Canadian, don’t mean that
i don’t follow American politics & that i don’t have know
what really is going on.
Comment by Bert — September 11, 2013 @ 9:26 am
Hey Greg. Switch off FOX news and put on CBC.
Comment by Mike — September 11, 2013 @ 9:31 am
Greg
ps – President Obama won 2 elections & that tells me
how the American people felt & by the way, he won the
last election with Obamacare as part of his platform.
R !
Comment by Bert — September 11, 2013 @ 9:41 am
Bert
I am not some blinded, kool aid drinking Republican, I personally think most all politicians are a bunch of liars and will say and do anything to get elected regardless of which side of the aisle you happen to be on. You say this President gets no credit for anything, I just asked what has he done that he deserves credit for? I happen to agree with him on attacking Syria, but I sure do not agree with the way he went about trying to do it. If you are going to attack someone you do it when they least expect it, you don’t announce to the world that you are going to do it. I agree with him that we have a moral obligation to stop any country from using chemical weapons period, regardless of who they are using them against. If these middle east countries are using chemical weapons and no one steps in and does anything about it, it is just a matter of time before those chemical weapons will be used against us here in the USA. It is going to take another 9/11 for people to realize that those middle east/ Islam countries hate THE USA, I sincerely hope and pray it does not. They are raised to hate us and their goal in life is to see us dead. We americans have gotten way too soft, this younger generation only cares about one thing, and that is themselves, as long as it does not hurt or effect them then stay out of it. They have no idea the sacrifices that were made so they can have the freedoms that they enjoy. We live in a very naĆÆve country today, very sad imo.
Comment by Greg — September 11, 2013 @ 10:06 am
Mike
what channels carry CBC here in the US?
Comment by Greg — September 11, 2013 @ 10:12 am
Bert
Obama did not get re elected because of Obamacare, he got re elected for his views on killing unborn babies, his views on same sex marriage, and his views on taking from the rich and giving to the poor. That is what got him re elected PERIOD!. Must be nice to sit up there in Canada and give your personal views and opinions on the USA and yet not be directly effected by any of its policies. As much as you whine about every little drop in the gold price or the stocks you own, I can only imagine how much you would be whining and crying if you had Obamacare coming at you and directly effecting your pocket book.
Enough said..
Comment by Greg — September 11, 2013 @ 10:31 am
Greg
Why do you think they hate your country ? I don’t
have to go back that far, only to Iraq & Afghanistan.
This President is trying to do it right, no more killing
my friend, but don’t push him. By the way, you don’t
know about our CBC, yet i know everything about your
Fox news, so there you go. This will be my last word
directed your way, regarding this subject. Back to the
stock market. R !
Comment by Bert — September 11, 2013 @ 10:41 am
Greg – . As much as you whine about every little drop in the gold price or the stocks you own, I can only imagine how much you would be whining and crying if you had Obamacare coming at you and directly effecting your pocket book.
Bert – Finally we are reading the real Greg. Sorry i had to bring
that out. R !
Comment by Bert — September 11, 2013 @ 10:43 am
Greg, sorry things are not going your way down there. Please feel free to move to Canada so that you can be free of Obama’s evil socialist policies. You will then be able to access CBC as well. Be warned we also have gay marriage, abortions, a social welfare system, and gun control, so on second thought, maybe start work on your time machine so that you can find a world that better reflects your value system. Say hi to President Eisenhower for me.
Comment by Mike — September 11, 2013 @ 11:23 am
GBB at .07! It would be nice for BMR to resume commenting on this story.
Comment by Mike — September 11, 2013 @ 11:25 am
Mike
Thanks !!!
Comment by Bert — September 11, 2013 @ 12:00 pm
any news on Gbb strength?
Comment by andre — September 11, 2013 @ 12:08 pm
viddler.com/v/15c6db2f
North American Nickel Anticipates Assays.
Comment by MrChi — September 11, 2013 @ 12:14 pm
GMZ up a penny on decent volume today.Maybe to do with the permits??
Comment by Greg J. — September 11, 2013 @ 1:05 pm
Greg
You have offended me & i have to live up to a Newfoundland tradition,
that is, to challenge you to a dual. Because i was offended, i get to
choose the weapons.
Stand by til i take a look at my arsenal.
Here we are, DARTS at 1000 yards.
Comment by Bert — September 11, 2013 @ 1:42 pm
Jon,
Any news on more of the interview with Pete B. over at Prosper Gold?
I heard that the drilling will continue into october, then a break until june.
Comment by Frank — September 11, 2013 @ 6:12 pm
Frank, yes, indeed, we have more with Bernier in the coming days, and obviously much more on the entire Sheslay River Valley play with PGX and GGI as the month continues. Expect GGI to speak up very shortly as Regoci indicated. We’re also working on the possibility of a site visit (both the Sheslay and the Grizzly) toward the end of this month/early October, and from the sounds of it, this visit could involve more than just us. Prosper Gold’s plans, I’m sure, will very much depend on the results of this initial round of drilling and we’ll hear from them at the appropriate time next month when they indicated results of the first several holes will be released. Do they have the ability to run a winter drill program in this area? Absolutely, which is one reason they selected this property. It’s important to note that during winter, there is considerably less snow in this particular area as opposed to even 40 km to the south because of the mountain “rain shadow” effect as described in technical reports. At Blackwater, they added more rigs and ran a winter camp during their second year (the winter of 2010 into 2011). It’s safe to assume a similiar strategy will be followed at the Sheslay – again, results dependent. In our interview with Bernier, he did not rule out the possibility of drilling this winter but that would depend entirely on how these first holes look. It’s going to be very interesting. If they hit a glory hole, which is certainly possible, obviously they will be assessing their options. So it’s premature to assume anything until we all see how they do with these first several holes. They will drill deeper than Firesteel ever did – they will be the first ones to test this system at depth – and they will drill even more effectively given the quality of their geological team. So as we’ve stated, we like the odds of a potential big discovery here – even as early as next month – given the players involved and the geology of the area. That’s why we’ve been pushing this story so hard with our readers. We see a very distinct possibility of a world class discovery. Can you imagine what that would do to PGX’s share price, especially with so few shares free trading given so much tied up currently in escrow, the PP, and the amount held by management and insiders? And the impact on GGI as well?
We’re going with the geology and the top-notch teams who are behind this. There are never any guarantees in this business as you know. But in this case, if those odds are even 50-50, those are fantastic odds that you only see in a limited number of situations. Geologically, this is a very important part of the Stikine Arch that up until now has not only been under-explored but hasn’t had the right group conducting a drill program, plain and simple. So the possibilities with the Bernier group are huge, and GGI will also be ramping things up on their end with a very high quality team. They have no intention, from my DD, of just riding PGX’s coattails. They’ve got a great property on their hands and they need to figure that property out. This whole story (Sheslay River Valley) could have serious legs for years to come. And it’s highly likely that a considerable degree of speculation will kick in very soon, regarding PGX’s drilling as well as the Grizzly. That just makes sense. A lot more investors are going to become aware of this discovery opportunity in the coming weeks. This is just the beginning of another exciting chapter in B.C. exploration history IMHO.
Comment by Jon - BMR — September 11, 2013 @ 7:02 pm
GBB; insiders purchased 880,000 shares on the open market over the past 2 months.
Comment by Alexandre — September 11, 2013 @ 9:35 pm
Toronto Resource Investment Conference; Probe and Colorado are exhibiting, and Prosper, Rainbow, Gold Bullion, and GGI are not exhibiting.
Comment by Alexandre — September 11, 2013 @ 9:38 pm
GQC is also exhibiting.
Comment by Alexandre — September 11, 2013 @ 9:42 pm
Toronto show is quite a bit smaller than Vancouver, and way smaller than PDAC. Never hurts to have a presence, particularly if a company is able to combine it with meetings with major brokers/investors, and perhaps financing discussions, but a lot of companies have more important things to do or more effective ways to spend shareholders’ money.
Comment by Jon - BMR — September 11, 2013 @ 10:01 pm
Gold has broken through the 1350 support. At 730 a.m. Nfld time, it is trading at 1342,
so there you go.
Comment by Bert — September 12, 2013 @ 2:08 am
Bert, what matters actually is the closing price, and $1,350 is one line of defence – from $1,320 to $1,350 is a support band, as John’s charts have shown, with the rising 50-day SMA also in the high $1,320’s. Silver’s support is within the $22 to $23 range, the former resistance band.
Comment by Jon - BMR — September 12, 2013 @ 3:03 am
Remember though that PGX & GGI is a copper-gold property, not gold-copper. Price of gold yes has some effect but copper is a base metal and demand will always be there as long as the economy keeps chugging along.
Comment by Dan — September 12, 2013 @ 3:13 am
Jon – What matters actually is the closing price,
Bert – I understand completely, but a guy has to have something to write
about, otherwise this site would look dead. The one negative thing is
that some do consider some of my posts as being whining in nature, but i
disagree, often i just post what’s out there for everyone to see. I
have learned though, that one can’t please all the people all the time.
I have turned very positive on GGI, but it may take a little time… R !
Comment by Bert — September 12, 2013 @ 3:41 am
Agreed, Bert, that’s why I replied…today will be an interesting day…it’s healthy to have a serious test of that $1,350 level so a day like today has the potential to turn into a reversal day, but of course we won’t know until later and we see where Gold closes…how the Venture behaves will be interesting as well…it is underpinned by a few levels of support…
Comment by Jon - BMR — September 12, 2013 @ 3:43 am
What made you turn from whatever to very bullish on GGI?
Comment by Ivan — September 12, 2013 @ 5:43 am
read this jobs report… also the 25 dollar smackdown in 20 seconds… fake info, fake trading, fake government… no regulation.= manipulation = very aggresive prive management… makes ya sick
The number of applications for U.S. jobless benefits fell below 300,000 for the first time since 2006, but the government attributed the surprising plunge to computer-related delays instead of a sudden improvement in the labor market.
ECONOMY AND POLITICS | @MKTWEconomics
Job cuts at record low, but workers arenāt happy
See the charts that show layoffs and firings are at a record low, but workers still have plenty of cause for concern.
Initial claims sank by 31,000 to a seasonally adjusted 292,000 in the week ended Sept. 7, the Labor Department said Thursday. Yet a government official said two states made changes to their computer systems that resulted in some claims not being processed in time.
The Labor Day holiday may have also skewed the level of claims.
āI donāt necessarily think this is a change in labor market conditions,ā the Labor official said.
Before the report came out, economists polled by MarketWatch had expected claims to rise to 330,000 from an unrevised 323,000 in the last week of August.
Treasurys pared gains and the dollar index rose after the data. Stock-index futures were little changed.
Bloomberg Enlarge Image
Job seekers wait to interview with company representatives in El Segundo, California.
Most of the drop in claims is likely to be reversed in the following week as states catch up in processing new applications for unemployment benefits.
Meanwhile, the average of new claims over the past month, a more reliable gauge than the volatile weekly number, fell by 7,500 to 321,250. Thatās the lowest level since October 2007.
The government also said continuing claims decreased by 73,000 to a seasonally adjusted 2.87 million in the week ended Aug. 31. Continuing claims reflect the number of people already receiving benefits.
Comment by JeremY — September 12, 2013 @ 5:54 am
You’re right, Jeremy, the jobs picture isn’t nearly as bright as it might appear to some…
Comment by Jon - BMR — September 12, 2013 @ 6:12 am
smoke and mirrors Jon… one wonders how the cdn gov does the same…. too bad Wallin had to sell her manhattan condo eh!!
Comment by JeremY — September 12, 2013 @ 6:25 am