Okay, I've got some extended research here. I've been able to determine a few things, and I've got some screenshot explainations below for each point.
The rules I've been able to determine are:
1) Undiscovered terrain doesn't seem to have an effect on blue circle placement.
2) Circle placement is recalculated AFTER each turn, so if you discover Iron Working one turn, you won't get accurate city placement suggestions until the next round.
3) You have to discover the tech first before the city placement suggestion is adjusted.
Here's my little experiment:
I started off with a random Civ and immediatly got three suggestions for my city. If you notice, two of them are away from what I can see, so it must be suggesting placement for resources I've yet to uncover in the fog.
I've now entered map mode to reveal that there is infact some resources that are outside the tiles I've been able to view, yet I'm still getting a suggestion for them. There are a few "future tech" resources nearby, but I'm not positive that the city placement is getting effected by this just yet. More on this later.
In this next shot, I've completely removed everything nearby and replaced it with flattened grassland, so terrain will have no effect on the city placement suggestion. I've placed four resources available at the start of the game at each of the four sides of my fat cross. I've also placed three resources that will get revealed shortly in the game to the north (copper, iron, horses) ... As well as three distant future resources to the west (aluminum, uranium, oil). If city placement is effected regardless of what techs I have, then I should get a suggestion much further to the north and west of where my settler is at currently.
I've returned to playing mode, and you can notice right away that the blue circles have not changed. I've used some explorers to help reveal a bit of the terrain. The circles are exactly where they were when I first entered the game.
I skip a turn with the settler and now the circles have readjusted. With nothing but the currect "game-start" resources showing (rice, sheep, dye, ivory), I only get a suggestion right where the settler is standing. The Iron/Copper/Horse is ignored to the north, as are the resources to the west.
I now grant myself all of the stone age and classical techs, which reveal the resources to the north. I skip a turn to get a new blue circle calculation. Notice below, how only the iron is revealed within the fog, yet the blue circle takes into account the other two resources to the north and suggests I build one square directly north. If it didn't take into account the fog-hidden copper and horses, it would of told me to build closer to the iron. It also still ignores the modern resources to the west.
I go back into the map editor and grant myself every technology. This reveals the entire map, but because I haven't advanced a turn yet, it still gives me the suggestion shown in the last screenshot.
I skip a turn, and now it reveals what we would expect if all resources were taken into account. The suggested circle is much closer to all the future resources, which may suggest that they get a bit of a preference over top of the older resources.