It should be leveling. If you've made a couple of Orange combines, and it still doesn't, it's time to see a GM. (Have the materials on you to conduct a few more Orange combines to make the case before you open the ticket.)
As for the Golden Rod, they're pretty easy for a Blacksmith to make. Hell, I even have a Smith that has the raw components on him at this moment to make about 40. He'd just need to walk to an anvil. I'd suggest you just ask a Blacksmith on the Trade channel to make you one (for a fee, or a guildie, if you have one with surficient skill on).