BMR Morning Market Musings…

Well, it appears Cliffs Natural Resources (CLF, NYSE) and Freewest Resources (FWR, TSX-V) agreed with our post over the weekend about Noront Resources (NOT, TSX-V) winning the public relations battle in the Freewest sweepstakes…Noront smartly didn’t come out with any news this morning, likely expecting an attack from Cliffs which is exactly what they got…now the ball is back in Noront’s court, and we expect they will fire back with a torpedo…Cliffs’ release a short while ago, which we’re still trying to digest, was nothing more than an attempt to drive down the Noront share price which they’ve succeeded to do to some degree…but only for now…this war is getting ugly, and now we wait to see what Noront delivers in terms of a counter-attack…gold is holding up above a key support level at $1,035…there are two other major support levels on gold that investors need to keep in mind…$1,090-$1,100…and right around $1,030…we believe gold is in a consolidation phase at the moment, which could last for a few weeks, so selling into strength and buying into weakness will be the key for traders in the days ahead…