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January 12, 2017

BMR Morning Market Musings…

Gold has traded between $1,196 and $1,208 so far today…as of 11:15 am Pacific, bullion is up $8 an ounce at $1,199…Silver has climbed 9 cents to $16.78…Copper has jumped 6 cents to $2.62…Nickel has rebounded 10 cents to $4.70…Crude Oil is up 76 cents a barrel to $53.50 while the U.S. Dollar Index has fallen nearly half a point to 101.21

Many traders were looking for clarity from President-elect Trump on economic plans yesterday and didn’t get it – hence the dollar, which has been riding a wave of euphoria approaching the January 20 inauguration, sold off yesterday as uncertainty grew over the incoming administration’s pro-growth agenda and how quickly and effectively those plans can be implemented…no incoming President in modern American history has faced such opposition and hostility from the mainstream media and even certain members of the politicized U.S. Intelligence Community, and the departing Obama has also done his best to lay land mines and plant seeds of rebellion against Trump…meanwhile, some of Trump’s cabinet picks are facing some grueling confirmation hearings on Capitol Hill…the President-elect has his work cut out for him and governing in the early going at least will not be easy…

Fiat Chrysler (FCAU, NYSE) shares fell by as much as 18% today (losses have but trimmed in half as of 11:15 am Pacific) after U.S. environmental regulators, days before the end of the Obama administration, accused the company of using software that allowed illegal emissions in diesel-powered vehicles, the latest broadside in an unprecedented government crackdown on auto makers for alleged pollution transgressions…the EPA claims the illegal software allowed 104,000 recent diesel-powered Jeep Grand Cherokee sport utilities and Ram pickup trucks to spew toxic emissions beyond legal limits…

Oil Update

Crude Oil prices are once again working their way higher on some positive demand news out of China while Saudi Energy Minister Khalid al-Falih said today that the kingdom had cut production to its lowest in almost 2 years, a move that would help accelerate a rebalancing of the global Oil market…Falih told a conference in Abu Dhabi that global demand for Oil would grow by well over 1 million barrels per day (bpd) in 2017 and the market would tighten in 2 to 3 years…meanwhile, Kuwaiti Oil Minister Essam Al-Marzouq told the conference that Kuwait had already cut its Oil output by more than it promised under the OPEC deal, without giving further details…

China posted record car sales in 2016 with a total of 28 million sold vehicles, up 13.7% from 2015…reflecting China’s growing fuel consumption, its net Crude imports will rise 5.3% to 396 million tons (around 8 million bpd) in 2017, state-owned China National Petroleum Corp. (CNPC) said today…China’s Crude demand will hit a record 594 million tons this year (around 12 million bpd) according to CNPC

Gold – “Dead Cat Bounce” Or Was The Post Election Slide Merely A “Head Fake”?

Some analysts have warned that Gold’s revival since mid-December is merely a “dead cat bounce” and that the dollar is likely to snap back with a vengeance once Trump moves forward with his economic plans…we’re not so sure…as we pointed out in a chart yesterday, there has been a significant loss of momentum in the greenback as demonstrated by a sharp divergence between RSI(14) and price during the recent run-up to a new 14-year high in the Dollar Index…a period of consolidation appears to be under way and that was also very evident yesterday when the dollar experienced a major intra-day reversal…

Food for thought:  What if Gold’s $200 slide immediately following the November 8 elections was merely a “head fake” prior to a big new wave to the upside in 2017 for reasons no one may fully be able to fathom at this time?…

We’ll examine a fascinating new Gold chart in today’s Morning Musings that should have a lot of investors questioning their assumptions…

In Today’s Morning Musings

1. Part 2 of BMR interview with Colorado President & CEO Adam Travis…

2. Precipitate Gold (PRG, TSX-V) update…

3. Pioneering Technology (PTE, TSX-V) hits new multi-year high…

4. Daniel’s Denthere are two types of alligators, which type are you?…

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…

12 Comments

  1. trump – way too much time dealing with personal stuff vs economic plans and world stuff. not a surprise and this isn’t going to change. Pres is a FT job, and the distractions he has are numerous. mkts not impressed, so far, which is good for gold ! yeah

    Comment by david — January 12, 2017 @ 11:43 am

  2. Cypress Development Corp. TSX. V : CYP had some decent news today, does any one have any thoughts about this one?

    http://www.cypressdevelopmentcorp.com/s/NewsReleases.asp?ReportID=775481&_Type=News-Releases&_Title=Cypress-Reports-on-Dean-Lithium-Claystone-Solubility-Results-in-Clayton-Val

    Comment by Bucky — January 12, 2017 @ 11:43 am

  3. if Stan Bharti and his pals couldn’t make a go out of Rodinia in the Clayton area, what’s different now ? The producing mine is old and antiquated, if I recall from talk last cycle that Li was hot, and they have had years to get more land during various cycles. CYP’s #’s appear nice, but I think that has been the case for most of the juniors surrounding the plant. Nice sniffs, hard to get follow thru

    Comment by david — January 12, 2017 @ 12:18 pm

  4. GGI. See Ya in May Secutor! Good news is you have less than 2mm shrs to hump out and the news flow should be flowing by then and we’ll be back into another financing by then for the summer programs

    Comment by david — January 12, 2017 @ 4:32 pm

  5. The precise number for Secutor, David, is actually 1,360,000 shares at 15 cents, a relatively small amount that is sure to be gobbled up quickly if Secutor wishes to sell when those shares are free trading by the 1st of May. PI took 473,000 shares and there was no “finder’s” fee for another 500,000 shares which means those probably went to management friends/associates.

    Comment by Jon - BMR — January 12, 2017 @ 7:22 pm

  6. Holding over a million shares of Cxo, I hope Adam pulls it off this year! GLTA here where ever they decide to invest. Cheers Jon and John

    Comment by Greg — January 12, 2017 @ 8:06 pm

  7. Greg, that’s awesome! Hope you make a ton of cash

    Comment by John — January 12, 2017 @ 9:53 pm

  8. Jon
    Looking for the NR on GGI and the financing with Secutor don’t see it on their website
    And why would they do a deal with Secutor? Aren’t they the ones that drove the share price down a year or two ago with all of their dumping of shares?

    Comment by Greg — January 13, 2017 @ 4:22 am

  9. It was announced Dec 30, Greg, and to your point, I guess that’s why they got limited to 1.3 million shares (can do no damage) vs. many more millions of shares previously.

    Comment by Jon - BMR — January 13, 2017 @ 6:45 am

  10. Thanks Jon

    Comment by Greg — January 13, 2017 @ 7:46 am

  11. I think it’s quite possible, Greg, that Secutor may have asked (pleaded for) a much bigger FT position but got flat-out denied for the reasons you stated…Regoci doesn’t need them anymore and they got reduced 75% from what they took before…

    Comment by Jon - BMR — January 13, 2017 @ 7:57 am

  12. GGI – thanks for the breakdown, It isn’t in the NR. No wts and 1.2MM to eat is ok, with news. Secutor is easy cash and GGI didn’t appear to want much, so that limits who will play with them. Hopefully they have raised enough to drill properly and the Hail Mary PP works so that GGI can do a proper one for a million or two one day and start working aggressively this year with posted results, in the Triangle and maybe even update Mexico or JV those ‘dud’ properties off that haven’t had a NR for over a year.

    Comment by david — January 13, 2017 @ 8:05 am

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