Nevgold Resource announced that the drill rig will be turning on its Cordero gold project in Nevada. The junior is targeting high-grade feeders at around 450 meters depth. Nevgold ended the day unchanged at C$0.15.

The Evolving Gold story continued to evolve. The junior mobilized a fourth core drill rig to its Rattlesnake Hills property in Wyoming. Evolving Gold closed at C$1.29, for a C$0.18 gain.

The markets appear to be at a pivotal turning point with signs that an economic recovery is at hand driving buyers back into equities. We shall see what Monday trading has in store.

Source: Resource Stock Roundup:Monday, July 27, 2009

China’s copper imports are slowing after record purchases, likely ending an 81% price rally this year, according to Sumitomo Metal Mining Co., Japan’s second-largest smelter of the red metal.

“Excessive imports mean much of the purchased metal was just stored, raising the risk that they may sell it back to the market and depress prices,” said Koichi Kaku, general manager at Sumitomo. “Imports may have exceeded manufacturing demand by as much as 1.3 million metric tons in the first half,” he continued.

Still, a few folks remain bullish on copper’s short-term prospects. One such analyst is Jim Lennon with Macquarie in London, who recently told Reuters:

“From a stocking perspective China is not going to be as big a factor but actually from a real consumption perspective… it’s going to be a lot stronger. We don’t see an easing up in Chinese demand.”

Time will tell who is correct, but we’re betting on a short- to medium-term downward correction followed by a huge run-up when inflation kicks in.

Source: Base Metals Higher

“The debate between whether the market should focus on green shoots or current weak demand and over supply goes on,” said Phil Flynn, vice president at futures trading and research firm PFG BEST Research.

“The green shooters have had the upper hand this week, but the real test will be next week,” Flynn added.

“Although we cannot discount further gains, we are somewhat wary about jumping in on the long side at this late stage,” said Edward Meir, analyst at MF Global.

“The stock market advance, in particular, looks somewhat overextended,” Meir added.

Source: Crude Continues to Climb

The Munich-based Ifo Institute’s July German business climate index rose for the fourth-consecutive month in July, posting a reading of 87.3. Economists had forecast a rise to 86.5 from 85.9 in June.

Also, the preliminary Markit euro-zone composite purchasing managers’ index for July increased more than forecast.

The euro saw a modest jump versus the dollar after the data.

“All positive, but let’s not get carried away,” wrote strategists at Brown Brothers Harriman. “Germany’s Ifo index … is on the rise … but remains very low on a historical basis and Germany’s economy is still on track to contract by at least 5% this year.”

In economic news, U.S. consumer sentiment fell in July, according to a survey released yesterday by the University of Michigan and Reuters.

Sentiment rose to a revised 66.0 from a reading of 64.6 in early July, but was down from the June reading of 70.8.

Analysts said the report highlights depressed levels of confidence as well as likely slow growth ahead.

“The July drop-back in confidence at still-depressed levels highlights the anemic pace of growth that appears likely as we enter the early quarters of the recovery,” wrote Mike Englund of Action Economics.

“While off the lows that were recorded when panic and paralysis were the order of the day, this measure of consumer sentiment nonetheless remains severely depressed,” wrote Joshua Shapiro, chief U.S. economist of MFR, Inc.

Source: Dollar Moves Lower

Silver developed the gentlest of upward trends early in London and rode that trend through the Globex, ending just off its intraday high at $13.87/oz., up 17 cents. For the week, silver is up 3.4%. (Click here for charts)

Although profit-taking kept gold from staging a big rally this week, the yellow metal should be well supported at current levels because of dollar weakness and inflation fears, analysts said.

“We are still up here in quite a high range. We don’t see any physical buying coming in at these levels, but what is supporting it is the dollar,” said Andrey Kryuchenkov, an analyst at VTB Capital.

“The dollar’s weakness and the idea that inflation expectations are on the rise are holding gold here,” Kryuchenkov added.

In company specific news, Mineweb reported that Kinross Gold (NYSE:KGC) has recently assumed stock price leadership of the loosely-defined Tier 1 global gold stocks sector, which includes 12 companies with an aggregate market value of just under $200 billion. Kinross’s stock price fluctuated between a 52-week low of $6.85 and high of $20.98 a share, with current trades around the $20.28 mark.

Barrick, the world’s biggest gold miner by value and production, is trading nearly 25% off its 52-week high. Kinross was one gold stock chosen for investment this year by US hedge fund Paulson & Co Inc., which famously scored gains of nearly $4 billion betting against banks in 2007 and 2008.

In the past several years, Kinross has transformed itself from a stodgy, higher cost gold producer to one that increasingly reports lower costs, along with a highly convincing longer-term growth profile.

Source: Gold Pushes Through $950

Potash Corp. of Saskatchewan (NYSE:POT), the world’s largest fertilizer producer by market value, saw second quarter profits fall by 79% to $187.1 million or $0.62 per share. Stripping out a one-time gain of $115.3 million from previously impaired securities and the profit tallied $0.32 per share. The company also announced that 2009 earnings will be less than previously forecast as demand from farmers declined. This did not dismay investors as Potash ended the session up C$7.09 at C$104.59.

Brett Resources tabled an updated inferred resource of 155 million metric tons grading 1.04 gram gold per metric ton for its Hammond Reef deposit in Ontario. Brett ended the day up C$0.03 at C$0.89.

The appetite for resource related equities appears to be insatiable right now with the bigger producers receiving most of the interest. We shall see what Friday trading has in store.

Source: Resource Stock Roundup:Friday, July 24th, 2009

“The overall sentiment in the metals market has improved a lot,” said Yingxi Yu, an analyst at Barclays Capital. “It has not much to do with the dollar, but follows stock markets closely, as the second quarter’s corporate earnings were broadly better than expected, improving outlook on the economy.”

Copper supply concerns also underpinned the bullish sentiment. Violence was reported near Freeport-McMoRan’s massive Grasberg mine in Indonesia, and a power problem occurred at Anglo American’s Chilean Collahuasi copper mine, but so far neither has reported serious production disruptions.

But with copper near nine-month highs some analysts and market participants warn not to get your hopes up too much just yet.

“Despite these supply-side concerns, we find it hard to make the case for anything approaching a runaway bull market in copper (or any of the metals for that matter) given the still sluggish rate of growth noted in most economies,” said analyst Edward Meir at MF Global.

“I don’t think copper prices climbed because of a dramatic improvement in supply-demand conditions,” said Koichi Kaku, general manager of Japan’s second-largest smelter of the red metal, Sumitomo Metal Mining Co. “I’m skeptical about a strong recovery in the market.”

Meanwhile, LME copper stockpiles rose again on Thursday, up 3,225 metric tons to a one-month high of 271,725 metric tons.

Source: Base Metals Mixed

“Home sales blew the market away,” said Phil Flynn, vice president at futures trading and research firm PFG BEST Research. “Oil wants to go lower but the surge in stocks pushed it up.”

“Demand is still weak and supplies still high yet the market keeps driving us higher,” he added.

Crude has risen in six of the recent seven sessions. The rally came even after petroleum data continued to show weak demand and rising inventories.

Total inventories of crude, gasoline and other petroleum products in the U.S. rose 1.9 million barrels in the week ended July 17, up for a sixth straight week to the highest level since September 1990, data released by the Energy Information Administration showed.

Source: Crude Continues to Rally

Meanwhile, the inventory of unsold homes on the market fell 0.7% to 3.82 million in June. This is reportedly a 9.4-month supply at the June sales pace, down from 9.8 months in May.

“The housing market appears to be healing,” said Lawrence Yun, the NAR’s chief economist. Yun said that inventories would have to be at a seven-month supply to get price stabilization. He said prices could stabilize “around the end of the year.”

The NAR report sparked a debate about whether the housing market has really turned a corner.

Some say yes, some say no, and some are on the fence.

“Housing may no longer be the weakest link,” said Joel Naroff, president of Naroff Economic Advisors.

“The economy is still losing jobs, credit is still tight, mortgage rates are a bit higher than they were in the second quarter, and the tax credit for first time homebuyers, which is boosting sales, expires at the end of November,” said Patrick Newport, U.S. economist at IHS Global Insight.

“The acid test is whether sales can push on beyond the pre-Lehman trend of just under five million over the next few months,” said Ian Shepherdson, chief U.S. economist at High Frequency Economics.

Source: Dollar Inches Up on Euro

Silver traded flat most of the day, as a gentle rise and fall in London and the same in New York canceled each other out perfectly. The metal finished exactly where it started at $13.70/oz., up/down 0 cents. Overnight, silver is trending higher. (Click here for charts)

Despite big gains in oil yesterday, which is usually gold supportive, the yellow metal fell as it took its cue from rising equities and a slightly stronger dollar.

“We have a tug of war here between those who dare to buy at these levels and people who got in at previous levels. If it breaches $960 [an ounce] it might make a quick run to $975, or it might swing back to the lower end,” said Jon Nadler, senior analyst at Kitco Metals Inc.

If Treasury auctions or GDP data coming next week prove dollar supportive, “it would bring gold down to the $930s at a minimum,” Nadler continued.

While Peter Grant, a senior metals analyst at USAGOLD – Centennial Precious Metals, Inc., believes inflation to be a “legitimate risk,” Nadler calls the jury very much out. “Right now we’re still grappling with deflation if anything.”

In reality, we’ve already had massive inflation (meaning expansion of the monetary base), but it hasn’t manifested in prices yet because the banks are holding the funds in reserve rather than lending them out. Once that money hits the market, however, (and there’s no telling when that will be exactly) you can and should expect huge price inflation to follow. This will be extremely positive for gold.

Source: Gold Takes a Step Back