Gold has traded between $1,185 and $1,200 so far today after closing at its highest level yesterday since last June…as of 11:30 am Pacific, bullion is up $5 an ounce at $1,194…Silver is flat at $15.29…Copper has slipped 4 cents to $2.04…Crude Oil has tumbled by nearly $1.50 a barrel to $28.26 on an expected U.S. Crude build while the U.S. Dollar Index is off three-quarters of a point to 95.94…
Gold prices posted the biggest single-day gain in more than 14 months yesterday as the continued turmoil in global financial markets boosted the metal’s lure as a haven asset…fresh energy came into the Gold market last week, thanks in part to the worst day in 7 years for the U.S. Dollar Index, and that has attracted new investors to the marketplace including momentum-chasing large speculators who are adding to net long positioning in greater size…
Gold has risen 13% since the start of the year amid turmoil in global markets, weak economic data signals (particularly from China), and uncertainty over whether the world’s central banks can offer the support they once did…bullion is also benefiting from the fact that some of the hottest trades on Wall Street have gone ice-cold…bets on financial shares and the technology sector have cost investors dearly, as have those against the Japanese yen and wagers on the U.S. dollar…
George Gero, Vice President of RBC Capital Markets, wrote: “There are enough compelling reasons for haven seekers to return to Gold, especially in view of Gold being liquid, portable, convertible to any currency and without political allegiance.”
China Keeps Adding To Gold Reserves
China’s central bank continues to diversify into Gold as it continues to purchase the precious metal on a monthly basis in the midst of falling total foreign exchange reserves…according to media reports, the People’s Bank of China (PBOC) added 580,000 ounces of Gold to its official reserves last month…the bank now holds a total of 57.18 million ounces of Gold, an increase of 0.9% from December…the news of China’s latest Gold purchases follows more data from the PBOC showing total foreign exchange reserves fell $99.5 billion to $3.23 trillion in January, the lowest level since May 2012…it was also the second biggest monthly drop in reserves, just behind December’s considerable $108 billion decline…
Updated Gold Chart
This 3-month Gold chart explains why we don’t believe is Gold is ready just yet for a major breakout above $1,200, though it’s possible that momentum could lift bullion a little higher beyond $1,200 temporarily in the days ahead before a healthy pullback sets in…
RSI(14) is now well into overbought territory at 80% with the next measured Fib. resistance at $1,212…so we do expect some excitement above $1,200 for a brief period, and that’s when the opportunity will arise to lock in profits and position oneself to benefit from a near-term correction…
In today’s Morning Musings…
1. The U.S. Dollar Index trend suggests the greenback will continue to struggle during this 1st half of 2016 after last week’s key sell-off…
2. Updates on the HGU, the HGD and the GDXJ…
3. Impressive overall uptrend for Walker River Resources (WRR, TSX-V)…
Plus more…to view the rest of today’s Morning Musings, login with your username and password, or click here to gain full access to this and other exclusive BMR content and features…
I guess Regoci has a different view of expected shortly, very soon, as soon as possible, and imminent with imminent being the last change on the presentation I am thinking so he has no other word to use unless he tells us the assays are hours away.
Comment by Dan1 — February 9, 2016 @ 1:23 pm
Jumped into HGD yesterday at 5.96 as it looked to good to pass up after golds latest run. Hope I didn’t jump the gun as you guys(BMR)recommend waiting to see what gold does here first, plus the fact that your Gold ETF calls have been stellar so far. So far so good on it anyway. Curious though as to why you recommend the HGD over DUST. Is it a leverage thing, or just something specific to each ETF concerning their holdings? I am not an expert, but making a US dollar pays more than making a Canadian dollar, does it not? Especially when you get the trend right, as you guys have been doing so far.
Comment by DBReese — February 9, 2016 @ 1:51 pm
I suspect by imminent, Dan, that means this week…so I’m anticipating tomorrow or Thursday…
Comment by Jon - BMR — February 9, 2016 @ 1:56 pm
That’s what I was thinking as well. Imminent means sometime this week. We are all anxious to find out if what they have uncovered is truly unique and how valuable it is. The tonnage seems to be there, the question is what is the grade of this mystery deposit.
Comment by Dan1 — February 9, 2016 @ 2:06 pm
I would like to see how many times I checked GGI the last couple months lol. I agree with Jon…news wed or Thurs…I’m guessing tomorrow. Let’s hope there is value to all that tonnage.
Comment by weatheritout — February 9, 2016 @ 2:08 pm
Once again the Venture gets its head above the 50 DMA and alone again it turns down , let’s hope it isn’t going to make a lower low but consolidates and moves higher.
Comment by Lester — February 9, 2016 @ 2:14 pm
This is an occasion where a search function would be helpful … bmr have you ever profiled or looked at glh, Golden Leaf Holdings? If so, I’m wondering how you think it stacks up compared to Canopy Growth or Aphria? tia
Comment by Treb — February 9, 2016 @ 3:40 pm
I agree Dan1, Jon. I will be very disappointed if GGI does not have news this week. Imminent does not mean sometime this month. I doubt they would release good news on a Friday (hoping it’s good), therefore Wednesday or Thursday seems probable.
Comment by Danny — February 9, 2016 @ 3:42 pm
Some clean up of shares at DBV over the last couple of days , now has the ask at .12 . We might be seeing some on site work at the Hat starting , it’s taking me them long enough to get mobile. They have a lot of holes to drill according to their conference call .
Comment by Lester — February 9, 2016 @ 9:37 pm
Holiday Closure for Family Day and Washington’s Birthday
Please note that on Monday, February 15, 2016, the Canadian exchanges will be closed for Family Day and the U.S. exchanges will be closed for Washington’s Birthday. As a result, there will be no settlement of Canadian or U.S. securities.
Additionally, the Canadian bond markets will close early on Friday, February 12 at 1:00 pm (ET). Although the U.S. bond markets will be open for regular trading hours, there will be no access to the U.S. bond markets after 1:00 pm (ET).
Comment by John - BMR — February 10, 2016 @ 3:08 am
Well Jon it Wednesday and still no results from GGI. The frustration level is starting to peak again the closer we get to the end of this week. They are the slowest bunch I ever witnessed. Just hope the wait will be worth it.
Comment by Dan1 — February 10, 2016 @ 6:44 am
Dan1, my wager is on tomorrow as GGI has put out more news on Thursdays than on any other day of the week. We’ll see.
Comment by Jon - BMR — February 10, 2016 @ 7:05 am
If they do release news tomorrow I hope they halt before end of day today. That’s not Regoci’s style but if it is significant enough they should in my opinion.
Comment by Dan1 — February 10, 2016 @ 7:24 am
I hope we don’t see a halt, Dan1, because that’s not usually something that works for most companies, even if results are spectacular…be careful what you wish for, halts rarely help…
Comment by Jon - BMR — February 10, 2016 @ 7:34 am
Trading halts usually occur when a publicly traded company is going to release significant news about itself
I hope they halt…the only time halts don’t work out is when the news is not significant. I’m hoping in GIG’s case they feel the need for a halt.
Comment by weatheritout — February 10, 2016 @ 7:38 am
NXE has consistently been releasing world class Uranium drill results without halting, weatheriout…on the other end of the scale, you have Mike England who will halt simply for an option agreement or promising visuals…one of the major problems with a halt is that the time of dissemination to trading is so limited, investors don’t have a proper chance to absorb the news…even worse than a halt is what WRR did early last week when they put out great results in the middle of a trading session…there was NO time for investors to absorb the news…they would have been better off halting or putting the news out well before market open or after market close…if you look at the history (post 2011) of companies who do a trading halt on “significant” news, because they think it will give them some promotional value, the results aren’t good…those are the facts…whatever decision Regoci makes, I’m confident he’ll make the right one…
Comment by Jon - BMR — February 10, 2016 @ 7:50 am
Either way….I’m just hoping that the results are significant
Comment by weatheritout — February 10, 2016 @ 7:57 am
I’ll agree with that, weatheriout…I think what has occurred with trading halts is that they have been abused by too many CEO’s looking for a “promotional” kick, so they almost have a bad connotation…GGI easily could have halted their stock in May 2014 on the Rodadero discovery (65 oz/ton Ag) but didn’t, and the stock pushed higher afterward…halts are overblown and sometimes dangerous to shareholder interests IMHO…
Comment by Jon - BMR — February 10, 2016 @ 8:02 am
I have to agree with Dan…I really hope results are out this week. If not, I’ll be dumbfounded.
Comment by weatheritout — February 10, 2016 @ 8:03 am
Dave , you buying PHM at these levels? Looks like I good trade here.
Comment by George — February 10, 2016 @ 8:09 am
Jon, glh?
Comment by Treb — February 10, 2016 @ 8:12 am
GGI is in a cup’n’handle formation basically on the weekly chart,actually coming out of a deep v-formation,and just looking for a reason to power forward.It just needs the volume,and a catalyst.
Comment by robinandthe7hoods — February 10, 2016 @ 8:28 am