Gold is challenging the $1,250 level again this morning as it attempts a breakout above a bullish pennant as you can see in our updated 6-month daily chart this morning (refer to Sunday’s Week In Review And A Look Ahead for more a more detailed analysis of what’s driving this 2016 move in bullion).
Technically, there has been impressive support at $1,200 for Gold, as expected, and the money flow into bullion is unlike anything we’ve seen in quite some time (note the strong buy pressure as shown by the CMF).
RSI(14), which has unwound from above 80% earlier this month, has formed a bullish “W” which supports the contention that Gold has an excellent chance of reaching the next measured Fib. resistance level at $1,288 very soon.
As of 6:30 am Pacific, Gold is up $19 an ounce at $1,244 – now above the pennant – despite a stronger U.S. Dollar Index this morning.
The TSX Gold Index has gapped up to 188 at the open and appears ready to test the 200 level for the first time since 2014.
Hopefully the bullish move in gold will drive GGI when the drill starts turning on the Rambo property. Picked up some at 10 cents this morning.
Comment by Dan1 — February 24, 2016 @ 6:49 am
GGI – we should be getting results any day now on the metallurgical Magnesium testing plus news on commencement of drilling at the Rambo property.
Comment by Dan1 — February 24, 2016 @ 6:54 am
What about gold stocks? Are they overbought at this point, they are hitting new 52 week highs again today. Should we wait for a pullback?
Comment by George — February 24, 2016 @ 7:45 am
The recent DBV court decision and slow slide of the share price (.075) is starting to concern me. I’m wondering if Farshad will be able to recover from this one – no updates on direction from the company, no money to drill and no results(yet)from previously drilled holes certainly don’t give me a good feeling. Can anyone talk me off the ledge or do we have some legitimate concerns going forward?
Comment by ChetBaker — February 24, 2016 @ 7:48 am
Well I knew I should have sold GGI taken the loss and bought SGN.V. oh well. GGI missing all the fun.
Comment by George — February 24, 2016 @ 8:08 am
ChetBaker – The DBV court decision is weighing on the GGI share price as well. No updates from Regoci or Farshad on where things stand with the Tahltan. We’re all in the same sinking boat.
Comment by ConcernedCitizen — February 24, 2016 @ 8:26 am
You may not be saying that if GGI drills into high-grade gold at Rambo next week, George…the Gold market is looking very strong and a lot of money is going to be flowing into the juniors…
Comment by Jon - BMR — February 24, 2016 @ 8:29 am
Just wondering what your thoughts are on DBV at the moment Jon?
Comment by pole — February 24, 2016 @ 8:36 am
I agree Jon, that was the reason I decided to hold on a little longer.
Comment by George — February 24, 2016 @ 8:41 am
The court case has put an extra burden on Farshad which means he has to be in more than one place at the same time , it is impossible to be at the Hat and in court at same time. Man I wish he would issue a NR about the progress with the new drilling equipment and financing .
Comment by Lester — February 24, 2016 @ 8:44 am
Wow, don’t look now but CLZ is breaking out again today. What a pick. Boy am I glad I bought into that one. Must be more good news on the way.
Comment by Dan1 — February 24, 2016 @ 8:54 am
Not surprised, as the news circulates it will keep going, Dan1.
Comment by Jon - BMR — February 24, 2016 @ 9:00 am
CLZ , just goes to show , the best time to have bought it was when no one wanted it at 6 cents . Right now people are selling DBV and GGI to buy the latest hot stock , unbelievable. Farshad Shiravni will never give up the advancement of DBV with continued drilling and GGI is about to start drilling , and nobody wants
their stock , unbelievable.
Comment by Lester — February 24, 2016 @ 9:12 am
I second Pole’s question Jon…what are your thoughts on DBV at the moment?
Comment by ChetBaker — February 24, 2016 @ 9:28 am
My thoughts are it would be nice to get a corporate update, ChetBaker, given how there was so much going on according to what was unveiled by some DBV shareholders from that Jan. 14 conference call…
Comment by Jon - BMR — February 24, 2016 @ 9:41 am