Gold has traded between $1,374 and $1,386 so far today…as of 8:15 am Pacific, bullion is down $2 an ounce at $1,380…Silver is off 7 cents at $21.39…Copper, after a hard sell-off last week, is flat at $2.94…Crude Oil is 76 cents lower at $98.13 while the U.S. Dollar Index is off one-tenth of a point at 79.34…
Gold is clearly being underpinned by developments in the Crimean peninsula…Russia gave its clearest signal yet today that it plans to move fast to annex Crimea, defying U.S. and European threats of sanctions a day after a referendum in the breakaway Ukrainian region to secede passed overwhelmingly…Russian President Vladimir Putin will address a joint session of parliament tomorrow on the issue…the Kremlin didn’t immediately specify what Putin’s message would be, but the official ITAR-Tass news agency said the address would cover “accepting Crimea into the Russian Federation”.
President Barack Obama this morning has imposed sanctions against seven Russian officials in retaliation for Ukraine’s Crimea region voting to join Russia, including several members of Putin’s inner circle, with the European Union also announcing similar penalties…the White House’s sanctions would target the assets of the listed Russian officials and bar them from entering the United States…Ronald Reagan and Margaret Thatcher knew how to deal with the Russians, Obama seemingly does not…
Mineweb’s Lawrence Williams reports this morning (www.mineweb.com): “Royal Bank of Canada Capital Markets analysts Dan Rollins in Toronto and Jonathan Guy in London have come up with a detailed analysis of the Gold market over the next few years comparing it with the big ETF driven Gold price rally of 2005-2008. Over this period, Gold doubled in price from $450 to $900, and while the analysts are not putting exact price predictions into their prognostications, nor coming up with a precise timescale, the implication is there in their research that this could lead to a big Gold price increase in the medium to long term.”
New money continues to flowing into Gold-backed ETF’s…holdings in SPDR Gold Trust, the world’s largest Gold-backed ETF, rose 3.29 tonnes to 816.59 tonnes on Friday…hedge funds and money managers raised their bullish bets in Gold futures and options for a fifth consecutive week to the most “bullish” levels since mid-December 2012, according to Friday data from the Commodity Futures Trading Commission…
Updated Gold Chart
Below is a 2-year weekly Gold chart from John…RSI(14) at 63% is showing increased up momentum, but note that the metal on Friday closed at long-term trendline resistance…there is also significant chart resistance at $1,400 followed by Fib. resistance at $1,429…buy pressure has increased from late last year, and a bullish +DI/-DI crossover occurred last month…it seems likely that the resistance band between $1,400 into the $1,420’s will be tested in the near future…
Gold Producers
This is interesting and certainly bodes well in terms of the overall outlook for Gold prices as the year progresses…John has examined the charts of several Gold producers, and not only have they completed their “cup-with-handle” patterns but they have broken out to the upside…they are ahead of the metal…one example is Agnico Eagle Mines Ltd. (AEM, TSX)…
Today’s Markets
Asia
China’s Shanghai Composite gained 19 points overnight to close at 2024…news over the weekend that Beijing is planning an expansion of its transport networks and urban infrastructure lifted cement producers… meanwhile, Bloomberg is reporting this morning that a closely held Chinese real estate developer with 3.5 billion yuan ($566.6 million) of debt has collapsed and its largest shareholder has been detained…Zhejiang Xingrun Real Estate Co. doesn’t have enough cash to repay creditors that include more than 15 banks, with China Construction Bank Corp. (939) holding more than 1 billion yuan of its debt, according to government officials…the collapse of the company, in the eastern town of Fenghua, adds to concern of strains in China’s real estate sector…the property market in smaller Chinese cities faces “true risks of a sharp correction” due to oversupply and investors may have underestimated the risk, Nomura Holdings Inc. economists said in a March 14 report…
Europe
European markets are up significantly today… the euro zone’s annual rate of inflation was lower in February (up 0.7% on an annual basis) than first estimated, and fell back to the level reached in October 2013 that prompted the European Central Bank’s last effort to stimulate growth…
North America
The Dow is 155 points higher as of 8:15 am Pacific…U.S. manufacturing output rebounded more than expected in February and recorded its largest increase in six months, in the latest sign that economic activity is gaining momentum after being dampened by severe weather…factory production increased 0.8% last month, its largest increase since August, the Federal Reserve stated today…
The Fed meets tomorrow and Wednesday…the tricky part is that while most expect the Fed to taper quantitative easing by another $10 billion, the outlook for guidance on the federal funds rate is significantly cloudier…Janet Yellen will give her first news conference as Fed Chair following Wednesday’s policy statement at 11:00 am Pacific…
The TSX is up 20 points as of 8:15 am Pacific…
Venture Update
The Venture continues to look strong and is up 5 points at 1039 after nearly two hours of trading to begin the new week…below is John’s updated 3-year weekly Venture chart showing Gold as well…it’s reasonable to expect that RSI(14) may move well into overbought territory above 70% before a consolidation sets in…next major Venture chart resistance is 1150…a very strong support band exists between the 970’s and 1000…
Fission Uranium Corp. (FCU, TSX-V) has released results from eight new holes at its PLS property in Saskatchewan’s Athabasca basin…five of the holes returned considerable off-scale mineralization…significantly, hole PLS14-177 has closed the gap between the R390E and R585E high-grade zones to create one much larger zone, now referred to as the R390E zone…FCU is up 3 pennies at $1.62 as of 8:15 am Pacific…
Goldeye Explorations Ltd. (GGY, TSX-V), which we pointed out to our readers in late February when it was trading around 11 cents, released more encouraging high-grade drill results this morning from 7 more holes at its Weebigee Project in northwestern Ontario…drilling continues for at least one more week…results from the Knoll zone included 8.59 g/t Au over 6.83 m…interestingly, at the RvG4 zone, 500 m to the northwest of Knoll, GGY intersected 23.15 g/t Au over 3.97 m in hole BK14-18…the relationship between these two zones is not yet known, however alteration, quartz veining, and host lithologies are similar…not surprisingly, GGY is responding well to the news and is up 2 pennies at 16 cents as of 8:15 am Pacific…we’ll have an updated chart tomorrow…
Garibaldi Resources Corp. (GGI, TSX-V) Updated Chart
John will update the charts on all the Sheslay Valley plays this week…below is a 3.5-year weekly for Garibaldi Resources (GGI, TSX-V) which is showing renewed strength after recently testing support at the rising 50-day moving average (SMA) which also coincided with Fib. support (17.5 cents) and (interestingly) the 1,000-day moving average (SMA)…this chart speaks volumes about the “Big Picture” outlook for GGI and how the Sheslay Valley play could literally explode over the spring and summer…
Colorado Resources Ltd. (CXO, TSX-V) Update
It’s no coincidence that the turnaround in Colorado Resources‘ (CXO, TSX-V) came in late December when the company announced that it had assembled a 300 sq. km land package – the “KSP Property” – 15 km along strike to the southeast of the past-producing Snip mine which, from 1991 to 1999, produced over 1 million ounces of Gold at a recovered head grade of 24.5 g/t Au…this is in the prolific Eskay Creek area north of Stewart…we expect CXO to be very active in this district over the summer…it’s an under-explored area offering excellent opportunities for new high-grade discoveries…CXO is unchanged at 29.5 cents as of 8:15 am Pacific…
North Country Gold Corp. (NCG, TSX-V)
One of our readers asked us for a chart on North Country Gold (NCG, TSX-V) which is certainly a company worthy of investors’ due diligence as it controls some key exploration areas (high-grade Gold targets) along an under-explored greenstone belt in Nunavut…NCG’s Three Bluffs Project also has a NI-43-101 resource (4.3 Mt at 4.9 g/t Au for 678,000 oz (indicated) and 4.5 Mt at 5.7 g/t Au for 829,000 oz (inferred)…the company has 122 million shares outstanding after recently raising $500,000 at a nickel…NCG is off a penny at 10 cents as of 8:15 am Pacific…
Short-Term Silver Chart
What’s significant about this short-term Silver chart is the unconfirmed breakout Friday above a downsloping flag…if Silver reverses today with a confirmation of that breakout, this could be a strong week for the metal…
Silver Long-Term Chart
The long-term Silver chart confirms that the metal has exceptional support just below $20…sell pressure has been dominant since early last year but is weak…if and when Silver breaks above the main downtrend line, watch out…RSI(2) at 81% remains in overbought territory – given historical patterns, it could remain there for a while longer before a short-term correction sets in to unwind that condition…
Note: John and Jon both hold share positions in GGI.
Hi John and Jon:
Remember V.CSL? Have you noticed that it is starting to wake up? Chart signalling a positive change -early but good to keep a watch. Nice property in the Yukon with encouraging results last year…….F
Comment by Frank — March 17, 2014 @ 9:25 am
Jon what do you figure is going on with gold? Pullback or heading back down?
Comment by Hs — March 17, 2014 @ 6:23 pm
Hs, my guess is, just a temporary pullback as I believe the case is solid that we’ll see a test of resistance between $1,400 into the $1,420’s as John’s latest chart indicated. Support obviously around $1,350; Gold closed Friday at resistance of a long-term trendline as shown…we’ll see how the battle works out between support and resistance…
Comment by Jon - BMR — March 17, 2014 @ 7:10 pm
Jon. Do you have in interview with Steve from Ggi coming out?
Also looks like I might get a chance to grab some Dbv after all. Looked like either some manipulation going on to push it down in order to load up or possibly more warrants? I suspect if Ggi Dbv Pgx are going to be as good as you suspect then others are onto it as well and some games will almost definitely be played before they run to scare off weak hands
Comment by Hs — March 17, 2014 @ 7:45 pm
Hs, yes, we do have a GGI interview coming out (first part today). Strong support on DBV at the EMA-20 (25 cents) as a chart from John will show this morning.
Comment by Jon - BMR — March 18, 2014 @ 3:53 am
Gold dropping like a rock!!
Comment by Hs — March 18, 2014 @ 4:59 am
Doubleview Capital Corp. Announces Drilling contract and Drill Mobilization
07:00 EDT Tuesday, March 18, 2014
Comment by d4 — March 18, 2014 @ 5:08 am
DBV had a person dump approx 340k shares yesterday and they are out of shares so expect the price to move up….this was a great buying opportnity as now asks will be thin….
Comment by d4 — March 18, 2014 @ 5:22 am
D4. How do you know they are out if shares?
Comment by Hs — March 18, 2014 @ 5:33 am
Because I know what happened, why they sold and how many shares they had. It has nothing to do with something negative about the company or its potential……its actually a good thing!
Comment by d4 — March 18, 2014 @ 6:03 am
D4. In lieu of evidence it’s just noise. Thanks thiugh
Comment by Hs — March 18, 2014 @ 6:28 am
Evidence should be filed soon.
Comment by d4 — March 18, 2014 @ 7:10 am
Hs, call the company and then you will realize its not just nois. d4’s info is accurate
Comment by Paul — March 18, 2014 @ 7:20 am
His info may be accurate, I never said it wasn’t but anyone that takes the info of anon on public forum for gospel would be a fool no? Doesn’t matter anyway Dbv has impressed me with their speed and positive news flow. Combine that with drilling to start in couple weeks and you have a potential winner. Just waiting for my entry point.
Comment by Hs — March 18, 2014 @ 7:57 am
Good luck with the entry point!
Comment by Paul — March 18, 2014 @ 8:45 am
Hs- “Combine that with drilling to start in couple weeks and you have a potential winner”
DBV will be drilling very shortly and not in a few weeks. According to the PR this monring…..the equipment/drills are being mobilized as we speak.
Imo, the longer one waits the higher the entry point due to speculation, especially once the drills are turning. The weakness we are seeing is the result of one person dumping which is still being felt even though they are done selling. It spooked some weak hands but this will clear up soon!
Comment by d4 — March 18, 2014 @ 8:51 am
Hs, if you don’t like the information being offered on these “public forums” then maybe it’s best you don’t get involved in the conversation. Just my opinion. Looking forward to exciting times ahead for DBV…Farshad has done all he can from his end – now we let the drill bits tell the rest of the story.
Comment by Steve — March 18, 2014 @ 8:55 am