Gold has backed off from an overnight high of $1,224…as of 8:30 am Pacific, bullion is down $5 an ounce at $1,209…Silver is off a dime at $16.47…Copper is a penny lower at $2.68…Crude Oil has reversed and added 90 cents to $50.70 while the U.S. Dollar Index is essentially unchanged at 95.46…
Near-term, Gold is facing resistance at its 20-day SMA at $1,225…critical support on the long-term monthly chart held in February as we show in 1 of our charts this morning…
Gold-backed exchange-traded products continued to attract investors in February, albeit at a slower pace compared to January when global inflows were the strongest since November 2012…Data compiled by SPDR Gold Shares, the world’s largest ETP, shows that Gold held in trust grew by 4.5 tonnes last month, down compared to inflows of 49.35 tonnes recorded in January…
China Further Loosens Monetary Policy
A surprise interest-rate cut by China’s central bank underscores concerns about growth in the world’s second-largest economy…the People’s Bank of China said it would cut a quarter of a percentage point off benchmark lending and deposit rates, less than 4 months after the last reduction…the central bank pointed to looming deflation as a trigger for the move…
China’s move is believed to be the 18th rate reduction by global central banks already this year…the world remains awash in accommodative monetary policy, and whether that ultimately translates into a pick-up in economic growth and inflation later this year remains to be seen…
Israeli Prime Minister Arrives In U.S.
This will be interesting to watch – a showdown this week between the White House and Israeli Prime Minister Benjamin Netanyahu, another critical bilateral relationship President Obama has fumbled…if a President can’t act wisely with America’s staunchest friends, such as Israel and Canada (Obama has limited interest in the U.S.-Canadian relationship), how he can be trusted to deal effectively with American’s adversaries?…
Netanyahu arrived in the U.S. yesterday, 2 days before a scheduled speech before Congress which has rankled the Obama administration…the visit has far-reaching implications for developments in the Middle East, specifically as they relate to Iran which the President oddly and dangerously has been trying to cozy up to…the Republican-controlled Congress can be expected to greet Netanyahu with great enthusiasm and this will no doubt put the President on the defensive and elevate the role of Congress in the critical debate over Iran…
Events In Russia
The strongest and most unambiguous statement from a foreign leader on the murder of Russian opposition leader Boris Nemtsov came not from the American President, but Canadian Prime Minister Harper:
“Mr. Nemtsov will be remembered as a fearless advocate of democracy, human rights and the rule of law in Russia. A leader unafraid to voice essential truths, even in the face of violent intimidation, he was also a prominent opponent of Russia’s aggression in Ukraine and the illegal occupation of Crimea.
“On behalf of Canadians, I extend my profound condolences to Mr. Nemtsov’s family, friends and associates. Those responsible for this brazen crime must be held to account in a swift, transparent and independent investigation.
“In this shameful act of violence, the Russian people have lost an important voice in their country’s political debate.
“Tonight, Canada honours Mr. Nemtsov’s courage and his dedication to building a free, just and open society in Russia. His example will undoubtedly continue to inspire others in his homeland and around the world.”
PDAC 2015
Mining legend Robert Friedland opened the 4-day PDAC conference by telling a commodities outlook seminar that “the ladies and gentlemen that go out and look for mineral deposits are the good guys.”
Friedland’s comments were an obvious swipe at the environmentalist extremists running amok around the globe, including some of them who “greeted” PDAC attendees near the front of the Metro Toronto Convention Centre yesterday as captured in this BMR photo…
PDAC protestors in front of the Toronto Convention Centre yesterday.
Gold 20-Year Monthly Chart
After a blistering January, Gold fell $70 an ounce in February but still held critical support on the long-term monthly chart between $1,180 and $1,200…an uptrend support line going back to 2001 intersects through this area which is also highlighted by the Fib. 61.8% retracement level ($1,185)…
Interestingly, both RSI(14) and Slow Stochastics have broken out above their downtrend lines…Gold’s generally bearish technical posture over the last few years has clearly weakened, but the integrity of this monthly chart must remain intact…in other words, a breakdown below the long-term support line would embolden the bears…
Today’s Equity Markets
Asia
China’s Shanghai Composite got a boost overnight from the PBOC’s rate cut and advanced 26 points to finish at 3336…meanwhile, HSBC’s final reading of China’s manufacturing sector in February came in at 50.7, much higher than the flash reading of 50.1 and the official February reading announced over the weekend, which showed a second straight month of contraction due to unsteady exports and slowing investment…
Japan’s Nikkei average edged higher…sentiment was helped by news that the country’s trillion-dollar public pension fund bought a more-than-expected $15 billion worth of domestic shares in the Q4…
Europe
European markets finished slightly lower today…
North America
The Dow has surged more than 100 points through the first 2 hours of trading while the Nasdaq has touched the 5000 level for the first time in 15 years…the early gains extend last month’s rally into March…in February, major benchmarks posted their biggest monthly percentage gains in more than 2 years…the Dow advanced 5.6%, its best month since January 2013 while the S&P gained 5.5%, marking its strongest performance since October 2011…
The pace of U.S. manufacturing growth fell in February to its slowest in 13 months, according to an industry report released this morning…the Institute for Supply Management (ISM) said its index of national factory activity fell to 52.9 from 53.5 the month before…the reading was shy of expectations of 53.1, according to a Reuters’ poll of economists, and was the lowest reading since January 2014…
In Toronto, the TSX has gained 39 points as of 8:30 am Pacific…the Venture, meanwhile, is off 2 points at 705 after closing at important resistance (707) Friday…
Venture 2-Month Daily Chart Update
The Venture has technical momentum at the moment…what’s encouraging is that as the Index flirts with resistance, indicators are far from overbought – this enhances the probability of a breakout above 707…back-to-back daily closes above 707 would confirm the breakout with the next major resistance at 750 as shown on this 2-month daily chart…
Cannabix Technologies Inc. (BLO, CSE, BLOZF, OTC) Update
Cannabix Technologies (BLO, CSE), our favorite non-resource play since it made its debut on the CSE last summer, has kicked off March on a powerful note with the announcement this morning that it has completed an alpha version of the Cannabix marijuana breathalyzer prototype…fabrication of prototype parts, creation of firmware, circuit boards, electronics and detection modules are all completed in the Alpha version which has been developed in concert with KLN Klein Product Development Inc. of Vancouver…
Cannabix will now begin testing the device internally with medical marijuana users…in addition, the company is continuing to work with consultants and scientists to maximize THC sensitivity, detection and reliability of the device for use as a roadside and workplace drug impairment tool…
The excitement around this product is only going to intensify in the weeks and months ahead…technically, BLO appears poised to break out of a pennant formation as shown in John’s chart posted Friday…
BLO is up 6 cents at 57 cents on the CSE as of 8:30 am Pacific…
Garibaldi Resources Corp. (GGI, TSX-V) Updated Chart
To use a baseball analogy, Garibaldi Resources (GGI, TSX-V) has pulled off an exciting triple play – Rodadero, La Patilla and the Grizzly…in this business, a company is lucky if it has 1 project that’s successful…GGI is in the enviable position of advancing 3 projects in a cost-effective manner – and at least 2 of them (Rodadero and the Grizzly) have the kind of scale and geological potential/power that could ultimately lead to a buy-out of this company by a major…
After news regarding La Patilla last Wednesday, GGI is expected to provide a major exploration update this week on Rodadero where the company has outlined an intriguing system of high-grade targets over a 10-km long NW/SE trending corridor…if just some of these targets start to connect, watch out as the Silver Eagle discovery at Rodadero could be but a corner of a very big picture at this project…
Technically, a confirmed breakout has occurred in GGI above the 50-day SMA and a downtrend line in place since early last fall…buy pressure/volume are increasing rapidly and the ADX indicator shows a bullish crossover…
GGI is up a penny at 19.5 cents as of 8:30 am Pacific…
Cadillac Trend Update
We’ll have much more on our Cadillac Trend visit in the week ahead as we put our information together, and that includes more excerpts from our discussion with Gold Bullion Development Corp. (GBB, TSX-V) President and CEO Frank Basa…
We see tremendous opportunities in this part of northwest Quebec in 2015…
GBB is nearing the production stage at Granada where the LONG Bars Zone has as much growth potential as ever…meanwhile, up the road a little to the north is Abcourt Mines (ABI, TSX-V) Elder mine where production continues…some fresh drilling will also commence there soon as part of a 1,500-m drill program that Abcourt has initiated on 3 of its properties in the region…
This 10-year Abcourt chart speaks volumes…ABI’s turnaround will come when it’s able to break out above the downtrend line in place since 2006 on this monthly chart…a low bullish cross in the SS offers encouragement…
Silver Short-Term Chart
Silver has been trading within a downsloping channel since near the end of January…support at the bottom of the channel is just below $16…resistance at the top of the channel is $17…
The metal reacted in January at $18.50 (almost exactly at chart and Fib. resistance) and has been consolidating in recent weeks within this downsloping channel…a move outside of that channel – either up or down – would be technically very significant…
RSI(14) has bounced off previous support but needs to find its way back above the 50% level to restore some bullishness in the market…
In December, Silver finally staged a definitive breakout above a downtrend line that was in place since the summer (note how the downtrend line became new support in early December)…
The December 1 dramatic move from an intra-day low of $14.15 to a close above $16 was technically highly significant…as expected, superb support was demonstrated at $15 and is also evident around $15.60…
Silver Short-Term Chart
This 34-year monthly chart continues to give hope that Silver could be in the very early stages of a powerful “Wave 5” move to the upside, though we caution that this could take some time to play out (if indeed this theory is correct)…the reasons for such a move are also not clear…
RSI(14) has bounced off previous long-term support which will need to hold along with key price support in the immediate vicinity of $15…
One note of concern on this chart is the sell pressure that has prevailed since the beginning of 2013, after a decade-long period of buy pressure…based on historical patterns, sell pressure could persist for a considerable time yet – though that doesn’t necessarily mean that the price can’t still trend higher…nonetheless, it would be encouraging to see this sell pressure begin to abate…it has eased off only slightly in recent months…
Note: John and Jon both hold share positions in BLO and GGI.
Good to see BLO moving forward. Shouldn’t take long to know the results of the initial tests. Wait until the media starts covering them more consistently…now that they have a working prototype and results on the way.
GGI is moving up nicely…good luck to those who hold it.
Comment by chris — March 2, 2015 @ 8:44 am
Jon – This will be interesting to watch – a showdown this week between the White House and Israeli Prime Minister Benjamin Netanyahu, another critical bilateral relationship President Obama has fumbled…if a President can’t even get along with America’s staunchest friends, such as Israel and Canada (Obama has limited interest in the U.S.-Canadian relationship), how he can be trusted to deal effectively with American’s adversaries?
Bert – I thought this was a stock site, instead, i see it as a Right wing propaganda tool… Shame !!!
Comment by Bert — March 2, 2015 @ 8:52 am
Jon – Mining legend Robert Friedland opened the 4-day PDAC conference by telling
a commodities outlook seminar that “the ladies and gentlemen that go out and look
for mineral deposits are the good guys.”
BMR -Friedland’s comments were an obvious swipe at the environmentalist extremists running
amok around the globe, including some of them who “greeted” PDAC attendees near the
front of the Metro Toronto Convention Centre yesterday
Bert – I don’t see a thing wrong with protecting the environment. Left alone,
some mining companies would poison the earth. Have you noticed the vast changes
in the weather pattern world wide. There’s only one way to do anything & that
is the RIGHT way. Kick me off if you like, but i am pro, the first American Black
President & i am for, each & every one of us doing our part, to make things better
for our grandchildren & their grandchildren.
Comment by Bert — March 2, 2015 @ 9:07 am
Bert, You piggy back off the works of someone else, free at that, with all your postings. This is there site, I would rather see what their thinking is,right or wrong instead of having to worry about what us free loaders think. At least they are willing to put out there thoughts. In stating what you did, you yourself are guilty of the same thing.
Comment by David — March 2, 2015 @ 9:17 am
Andrew Maguire latest interview revealing a new physical market in China. Apparently this new exchange would allow Miners to directly deposit the refined product into their system.
If successful this should add competition to the bullion banks.
Comment by Paul — March 2, 2015 @ 9:23 am
Boys, boys…settle down. No need argue about such matters. We all have different views regarding certain situations. All views carry the same weight… none of us have all the answers.
Comment by chris — March 2, 2015 @ 9:29 am
Paul, I am not a big fan of Maguire…but if what he says is true, then things will get interesting very soon. I think it’s about time we had an honest precious metals market. Time will tell. I believe there is one more washout left…then it’s up from there…I think the big move will come later this year…2016 is the year gold will see some big moves, imo
Comment by chris — March 2, 2015 @ 9:36 am
David
No doubt, it’s their site, but they have solicited our imput.
and here i am…I don’t know what you mean by piggy back off the
works of someone else, i put forward what they write, along with
my response, to enable others to see at one glance, where i am
coming from. Now for my final thought, you have a choice, read
me or not ! My intention is to keep posting until they, the owners,
cut me off & they alone, will decide what is appropriate or not.
Sorry, but i have not always fought back in the past, when other(s)
have offended me, i will in the future.
PS – Very simple, OVERLOOK my posts..
Comment by Bert — March 2, 2015 @ 9:37 am
Bert,
It’s not that I don’t enjoy your posts, but to put in your comments Shame!!!. Really?
Comment by David — March 2, 2015 @ 10:00 am
Chris – Maybe gold won’t go parabolic for a while. But there are many gold stocks that have doubled or more this year already.
Comment by dave — March 2, 2015 @ 10:16 am
David – It’s not that I don’t enjoy your posts, but to put in your comments Shame!!!. Really?
Bert – I realize you know the meaning of shame, but my meaning of shame may be different. It also
means, regret, painful, saddened. If i were to state that it was a “shame” that you replied
to my posts the way you did…Would you say “really” to that statement ? Anyway, i am
satisfied in your last response.
Comment by Bert — March 2, 2015 @ 10:36 am
VGD – MACD turning to the positive, white candle, we may get a run here.
Comment by dave — March 2, 2015 @ 10:50 am
if this keeps up we’ll have to change the site to Bert market run.
Comment by kc — March 2, 2015 @ 11:56 am
ELO still moving up…..up approx 17%. Low outsanding shares and low float is a great thing when a stock is under accumulation. Today’s buying is being done by an insider again as every time broker 80 buys it apears as insider buying…..
Comment by d4 — March 2, 2015 @ 12:10 pm
KC – If this keeps up we’ll have to change the site to Bert market run.
Bert – A poster has to do what a poster has to do. Can’t blame me for
that can you ? Smiling as i post…
Comment by Bert — March 2, 2015 @ 1:01 pm
Dave
VGD is looking good. I have 28K shares & watching it closely. Good luck !
I can be good when i want to, can’t i DaVE ?
Comment by Bert — March 2, 2015 @ 1:03 pm
Garibaldi announcing something about their Red Lion property could be interesting. Maybe Teck wants a piece of that action too.
“The Red Lion Property, situated in a prolific area of north central British Columbia approximately 300 km southeast of the Grizzly Project, is contiguous to the northern border of Kiska Metals’ Kliyul Cu-Au Porphyry Project.
Kliyul is under option to Teck Resources Ltd. and has yield exciting results from drilling including 76 m of 1.16 g/t Au and 0.33% Cu, and 218 m of 0.52 g/t Au and 0.23% Cu.
Comment by Carl — March 2, 2015 @ 1:04 pm
kc….now THAT was funny!
Comment by Steve A. — March 2, 2015 @ 1:11 pm
cheers Bert. I was smiling to. Just be careful not to bite the hand that feeds you.even though its only been frogs and squirrels lately. Hopefully boiled cod heads soon.
Comment by kc — March 2, 2015 @ 1:36 pm
GGI’s exploration update tomorrow?- I hope GGI’s exploration update includes a drilling program on the Grizzly. Hopefully Rodadero will rock, but if not they will need another property to keep investors buying. Investors have waited long enough for activity at the Grizzly. Time to walk the talk.
Comment by Dan — March 2, 2015 @ 2:38 pm
Nice to see DBV in the green today, albeit on very low volume. Curious to see if PDAC will boost any interest in Farshad’s hard work to date…the cores definitely tell a story, let’s hope more buy in.
Comment by Steve A. — March 2, 2015 @ 3:23 pm
PS – Very simple, OVERLOOK my posts..
Comment by Bert — March 2, 2015 @ 9:37 am
TomUK – best comment you have made Bert. Laughing as I post. 🙂
Comment by Tom UK — March 2, 2015 @ 5:21 pm
Just a few words before i retire for the night.
I feel we are on a level playing field here, BMR owns the site & we,
the followers, own the comments, that is, if we meet BMR standards,
if not, we don’t get to read what was written. If BMR writes something
that i disagree with, it is, as a member, my prerogative to respond &
is directed towards them only & no other poster. If this irritates
some, you all know my name & my posts should be overlooked, because
it irritates me, that some will take exception to my freedom on this
site, that is to write my opinion. Again i repeat, if at any time, i
am out of line, you will not get to read what i wrote. I enjoy posting,
but in the past, i have been somewhat sensitive to some responses i have
received & as a result, walked away, but no more. It’s okay to be a
good guy, but it don’t seem to work on some. I always showed that i
respected each & every poster by signing off with R ! (Respectfully),
but some still complained. In fact, in one case, raw comments
accidentally got through & i surely realized at that time, what
someone being bullied felt like. Good night ! R !
Comment by Bert — March 2, 2015 @ 5:45 pm
bert – if that is a few words, i hate to see what many are. Yes, bert regarding vgd, you can be good when you want too.
Comment by dave — March 2, 2015 @ 6:06 pm
Hey Bert, well said. I don’t think anyone here is questioning your right to free speech, perhaps just the frequency of your responses. A quotes comes to mind, “If you always have something to say, people will stop listening”. jmho. Take care.
Comment by Steve A. — March 2, 2015 @ 6:48 pm
No problem Bert, say whatever you like, doesn’t bother me one bit, we live in a democracy rite,I have more important things to worrie about than someone else’s opinion about something, have at err!!..
Comment by Tombc — March 2, 2015 @ 7:19 pm
whats the ‘atmosphere’ out at PDAC? anybody including BMR guys? thanks…
Comment by STEVEN1 — March 2, 2015 @ 8:58 pm
Busier yesterday than Sunday, Steven. Quite busy, in fact, and I would describe the mood as cautiously optimistic. I would say there’s a general feeling, anticipation, among attendees that the market is truly going to turn in 2015. Some bigger companies looking for opportunities with quality juniors. Interesting, “water access” in B.C. cited by one major as a significant reason they’re looking for good projects to invest in there – they have issues with water access elsewhere. Also, B.C. regarded as a safe jurisdiction. On that note, rumors from reliable sources regarding ESK – we’ve mentioned this one numerous times over the last year. New Gold, for one, could be looking at this. Good play to hold for 2015 – great land package near Pretium/Seabridge in the Eskay Creek mine area. A bigger fish could swallow ESK up (I don’t hold any at the moment BTW but I like it a lot). That’s probably why the stock has held up so well over the last 6 months. I wouldn’t chase it but smart accumulation would make sense.
Comment by Jon - BMR — March 3, 2015 @ 3:51 am
ESK – Wish I would have known that in Dec. when it was .05
Speaking of which – WRR is at .05 and VGD was at .03 last March. Yes, I’m hinting.
Comment by dave — March 3, 2015 @ 6:26 am
Thanks ! Most of my posts, which some may consider off topic, are
usually directed at BMR/Jon. Although he has let it be known that
they have thick skin, i feel i am addressing his topic in particular
& not the person. Anyway, i don’t want to offend anyone & will try to
overlook Jon’s point of view, so Jon please take it easy on your buddy !
I mentioned that i sell 5k shares at a time, when a stock starts
moving & if it moves back & i believe, i will buy back 5k at a time.
If it keeps moving up & i get out of shares, i will either quit or
if i still believe, i will buy again at the higher price, after all,
it is just another position. Have a good day..
Comment by Bert — March 3, 2015 @ 6:29 am
Of all the stocks i am following, it appears that the VGD crew
are the only one’s impressing those attending the PDAC. We shall
see…
Comment by Bert — March 3, 2015 @ 6:38 am
Steve A
I appreciate your post, but as for the frequency of mine, in order
to keep BMR going, one has to ensure it is well greased. R !
Comment by Bert — March 3, 2015 @ 6:56 am
VGD – Looking good. A lot of room to run before it gets oversold.
Comment by dave — March 3, 2015 @ 8:14 am
Dave
If i may & with all due respect, didn’t you mean overbought ?
Comment by Bert — March 3, 2015 @ 8:24 am
Bert 12 posts, rest of world 22 posts. No additional comments necessary.
Comment by mike — March 3, 2015 @ 9:54 am
Bert – Yes, overbought. Brain Fart
Comment by dave — March 3, 2015 @ 10:17 am