Gold has traded between $1,170 and $1,192 so far today…as of 10:40 am Pacific, bullion is down $14 an ounce at $1,174…Silver is off 17 cents at $16.45…Copper has added a nickel to $2.62…Nickel is up 3 cents at $5.01…Crude Oil has surged $4.07 a barrel to $49.30 while the U.S. Dollar Index has jumped half a point to 101.55…
OPEC has reached a deal among all 14 member countries to curtail Oil production for the first time since 2008, the Oil-producing cartel announced from its headquarters in Vienna this morning…OPEC ministers confirmed the group had secured a cut in its production from 33.8 million barrels a day to 32.5 million b/d in an effort to prop up prices which have fallen by more than half since mid-2014 due in large part to global oversupply…more below on today’s big story in Oil…
November has been one of the worst months in terms of Gold ETF outflows in the last 3 years as GLD reserves have dropped by nearly 60 tonnes with the heaviest selling occurring immediately after Donald Trump’s November 8 election win (DO NOT interpret that, however, as a sign that Gold is not going to perform well under a Trump Presidency)…despite the heavy selling since early November, GLD reserves are still up for the year by more than 240 tonnes given the unprecedented demand during the first half of 2016…
Global Gold ETF outflows continued for a 13th straight session yesterday while Commerzbank noted this morning that it expects Gold demand in India to decline sharply over the next few months…
The Dow and S&P 500 hit new all-time highs this morning as the Trump rally marches on…
Equity markets are giving a thumbs-up to Trump’s pro-growth economic agenda.
President-elect Trump continues to frustrate the left-wing mainstream media and other critics by building a star-studded team of commerce titans for his cabinet that puts to shame the cabinets of such messed-up jurisdictions as Ontario and Alberta…the Trump movement is going to transform government in the United States, a fact that’s also going to put pressure on America’s largest trading partner and the federal Liberals to “up their game” when it comes to a wide array of economic issues…the implications for investors in both countries will be significant…
Steven Mnuchin, a very successful financier with deep roots on Wall Street and in Hollywood but no government experience, has been selected as Trump’s Treasury Secretary…Mnuchin, the son of a Goldman Sachs partner, joined the firm after graduating from Yale University…he worked there for 17 years, rising to oversee trading in government securities and mortgage bonds…after leaving Goldman in 2002, he founded Dune Capital Management, a hedge fund named after the dunes near his beach house in the Hamptons…he played an important behind-the-scenes roll in Trump’s election, helping oversee the creation of a network of small donors that let the campaign compete successfully against the better-funded Hillary Clinton operation…
If confirmed, Mnuchin would play a critical role in carrying out Trump’s promised economic policy changes including the enactment of a large package of tax cuts, regulatory overhauls, sweeping changes to foreign trade agreements and the fulfillment of a huge new infrastructure spending program…he could also help lead any efforts to roll back President Obama’s bizarre nuclear deal with Iran and the administration’s opening to Cuba by reimposing sanctions on Tehran and Havana…
Mnuchin said this morning on CNBC’s “Squawk Box” that he believes the U.S. economy can grow at a sustained rate of 3% to 4%…he added that tax reform is going to be a major driver of that growth with the administration bringing a lot of money back into the U.S. by cutting the corporate tax rate to 15%…he also said he believes interest rates will remain low…
“The Art Of The Deal”: Carrier Stays In Indianapolis
Trump has already fulfilled a campaign election promise before even being sworn in – air conditioning company Carrier said yesterday that it had reached an agreement with Trump and Vice-President elect Mike Pence that would keep 1,000 jobs in Indianapolis…in February, Carrier said it would shutter its Indianapolis plant employing 1,400 workers and move its manufacturing to Mexico…Trump tweeted last night, “I will be going to Indiana on Thursday to make a major announcement concerning Carrier A.C. staying in Indianapolis. Great deal for workers!”…
Keystone Revival + Kellyanne Conway To Visit Alberta…
Meanwhile, here’s some refreshing news after years of Obama demonizing the Canadian Oil industry…Fox News reports that advisers to Trump are exploring ways he can green light the Keystone XL pipeline on the day he is sworn into office, including by rescinding a 48-year-old Presidential order…in addition, one of Trump’s most influential advisers will tour Alberta’s Oil sands the week before Trump is sworn in to office, a visit serving both as a chance to pitch his administration on the province’s energy industry and as a fundraiser for local conservatives…Kellyanne Conway, Trump’s campaign manager, is scheduled to visit Fort McMurray and “hold talks with Alberta business leaders” at a private fundraising dinner January 12, according to a statement released by the Alberta Prosperity Fund…
Trudeau Approves Two Pipelines – Will He Stand Up To Civil Disobedience?
Full credit to Prime Minister Justin Trudeau for granting federal government approval yesterday to two critical pipeline projects, despite fierce opposition from radical environmentalists…however, disappointingly, he also rejected Northern Gateway and moved to formalize a ban on Oil tankers along B.C.’s northern coast, but at least Trans Mountain and Line 3 are a go…
The approval of the Trans Mountain expansion, in particular, was a courageous step for Trudeau as he stood firm against dogged opponents in the Vancouver area (including a couple of Liberal MP’s) and elsewhere, arguing he won’t be swayed by political argument…he also approved Line 3, a replacement and expansion of Enbridge’s 1960’s-era pipeline from Alberta to Wisconsin…the $7.5 billion project, which faces local opposition but has garnered little national attention, is expected to increase Oil exports from 390,000 barrels per day to 760,000…
The nutcases on the left are up in arms today regarding the Kinder Morgan (Trans Mountain) approval…nothing is acceptable to the Elizabeth May-David Suzuki-Gregor Robertson Oil-hater types other than the very “un-Canadian” thing of not exploiting our Oil resources at all…extracting Oil is one economic activity Canada excels at, and God has blessed our nation with an abundance of this critical resource, but the globalist anti-fossil fuel crowd wants nothing to do with it…
“I’m absolutely gobsmacked,” said Suzuki who personally lobbied Trudeau against the Trans Mountain Project…he said the pipeline approvals – and Oil sands expansion they will facilitate – represent a long-term commitment to bitumen production, and will make it impossible for Canada to meet its international climate-change commitments…May, leader of the federal Green Party, vows to engage in civil disobedience to stop the project and “isn’t afraid to go to jail”…get ready for a major uprising…
WTIC 15-Month Weekly Chart
Weakness in recent days in Crude Oil was consistent with chart progression – no reason to turn bearish…
Since July, and more frequently since late October, WTIC has repeatedly tested strong support at its now rising 200-day moving average (SMA) while RSI(14) has been hugging the 50% level…
The broader picture shows a bullish inverted head-and-shoulders pattern (right shoulder continues to build)…this should ultimately lead to a powerful breakout above the “neckline” around $50…
It’s believed that the Saudis and other OPEC countries want a higher trading range for Crude, between $50 and $60 as opposed to the $40 to $50 range that has prevailed since May…however, once Crude starts pushing into the low-to-mid-$50’s, momentum traders will jump on the bandwagon given a major technical breakout (above the “neckline”)…that sets up the possibility for a move as high as the low-to-mid-$70’s next year before fundamental factors (increased supply) could force a correction…
The demand side of the equation is expected to improve in 2017 which is another reason to believe prices may pop into the $70’s…President-elect Trump’s economic agenda will spur U.S. growth – the only question is how quickly…meanwhile, China appears to have stabilized…if Trump can wake up the Europeans, then Oil demand could get a better-than-expected boost…
We maintain our bullish call on the HOU (WTIC double bull ETF on the TSX) which is up $1.22 at $7.90 as of 10:40 am Pacific…
In Today’s Morning Musings…
1. Rich Eskay Camp (Heart of Gold) attracts interest of Nickel experts as GGI’s E&L shows extensive massive sulphide potential…
2. Three Zinc plays breaking out…
3. Aphria closes $40 million financing, interest in “weed” stocks remains high…
4. A comparative chart that helps confirm the Venture bull market…
5. Daniel’s Den – Mitek takes its “Mobile Verify” solution to Europe…
Plus more…click here to read the rest of today’s Morning Musings and all BMR exclusive content, through a risk-free Pro, Gold or Basic package, or login with your username and password…
Check out volume on NRN
Comment by Dan1 — November 30, 2016 @ 12:52 pm
Yes, looks good, potential breakout above that key .16 area with the last 30 minutes of trading…leaks???
Comment by Jon - BMR — November 30, 2016 @ 1:26 pm
I couldn’t help but notice the volume on NRN, all seemed to happen in the last couple hours of trading, a lot of it in big chunks. I don’t own NRN but I do own CLE so hopefully good things are happening.
Comment by Danny — November 30, 2016 @ 2:36 pm