April 27, 2010
The U.S. dollar is very strong this morning but interestingly Gold is down just $1 an ounce to $1,151 as of 7:15 am Pacific time…the overall strength of Gold given the much higher U.S. dollar since the beginning of the year is another extremely bullish sign we believe for precious metals…the CDNX is down 3 points to 1670…the current strength in Gold Bullion Development (GBB, TSX-V) was clearly on display first thing this morning as buyers immediately stepped in on some weakness that took the stock to 38.5 cents, Jordan Capital being one of the buyers which is significant…the fundamentals support a much higher GBB stock price and we have no doubt that’s going to occur, but some consoldiation at the moment in GBB is normal and healthy from a technical standpoint…John, BMR’s technical analyst, says there is strong Fibonnaci support for Gold Bullion at 37 cents…any weakness is considered a buying opportunity…the stock was unable to get through resistance at 42 cents yesterday but it’s just a matter of time in our view, and John’s view, before that barrier is broken…
