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Gold has traded between $1,227 and $1,236 so far today…as of 11:30 am Pacific, bullion is down $2 an ounce at $1,233…Silver is off 3 pennies at $17.67…Copper has retreated slightly to $2.62…Nickel has eased off 3 pennies to $4.69…Crude Oil has slipped $1 a barrel to $52 while the U.S. Dollar Index has gained one-third of a point to 100.29…

The greenback rallied today as the euro came under pressure due to the biggest monthly drop in German industrial production in nearly 8 years in December…weaker output in manufacturing and construction dashed prospects for robust growth in the final quarter of 2016…it’s also not helping the euro that anti-establishment candidate Marine Le Pen is gaining momentum ahead of France’s presidential election in just over 2 months’ time…

China’s foreign exchange reserves are down again, falling below the closely watched $3 trillion level in January for the first time in nearly 6 years even as authorities tried to curb outflows by tightening capital controls…some analysts fear a heavy and sustained drain on reserves could prompt Beijing to devalue the currency – an event that surely would not go over well with the new Trump administration…the yuan fell 6.6% against the rising dollar in 2016, its biggest annual drop since 1994…for 2016 as a whole, China burned through nearly $320 billion of reserves, on top of a record drop of $513 billion in 2015…

Calendar Q4 earnings in the U.S. have mostly surprised analysts with more than 65% of firms reporting better-than-expected earnings according to data from The Earnings Scout…

Oil Update

Today’s jump in the U.S. dollar and concerns that rising U.S. shale Oil production may offset a move by major Oil producers to cut global supply put pressure on Crude today…however, it’s our view that markets haven’t yet factored in the risks associated with a rapidly deteriorating U.S.-Iran relationship that has risen to the top of the new Trump administration’s foreign policy challenges…there’s nothing like a Middle East “risk premium” to give Oil prices a big lift…in dealing with Iran, Trump will find an important ally in Saudi Arabia…

New support for WTI has formed at and just above $50 a barrel since December’s breakout after OPEC and other major producers agreed to cut output by almost 2% last November…unlike with past production cut deals, participating countries are (so far) sticking firmly to their output quotas…if fully implemented, the deal could wipe out about 1.8 million barrels a day from the global daily supply (1.5 million bpd has been taken out already) and theoretically push the market into a supply shortage as early as the 3rd quarter of this year…while there are many moving parts to the demand-supply equation, it’s hard not to be bullish on Oil…geopolitical dynamics (a U.S.-Iran confrontation) could really light a fire under Crude and easily send it into the $70’s or higher…

Investors, however, remain wary of rising output from countries outside the production cut deal, including the U.S., which could wipe out the gains made by OPEC’s supply action…

In the U.S., drillers put 17 more Oil rigs to work last week according to Baker Hughes, bringing the total to 583…

In Today’s Morning Musings…

1. LiCo Energy Metals (LIC, TSX-V) – the Lithium-Cobalt double play – surges to a new high…

2. Updates on Purepoint Uranium (PTU, TSX-V) and Tinka Resources (TK, TSX-V)…

3. A profitable Venture natural gas play under 6 cents…

4. RJX Explorations (RJX.A, TSX-V) shows promise at Maude, drilling 14 m @ 5.4 g/t Au near-surface…

5. Daniel’s Den – wearable technology and the stronger than ever case for Kopin…

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Check back later this morning for today’s BMR Morning Market Musings.

1. Gold touched $1,236 overnight and bargain hunters continue to step in on any pullbacks, limiting any downside action…as of 7:00 am Pacific bullion is off $5 an ounce at $1,230…holdings of Gold by physically backed exchange-traded funds rose again yesterday…ETFs are picking up the slack left by lackluster Chinese and Indian physical demand, adding a further +150,000  ounces yesterday on the heels of a similar increase Friday…

2. China’s Gold reserves were unchanged for a 3rd straight month in January at 59.24 million ounces, the central bank said today…that represents the longest period China has gone without adding to holdings since it started regularly updating its reserves data in mid-2015…meanwhile, China’s foreign exchange reserves unexpectedly fell below the closely watched $3 trillion level in January for the first time in nearly 6 years…concerns are swirling in global financial markets over the speed at which the country is depleting its ammunition to defend its currency and staunch capital outflows…

3. The Dow has hit a new record high while the Venture is quiet in early trading after a 7-point jump on strong volume yesterday, its 5th straight winning session…volume leaders as of 7:00 am Pacific include Reliq Health Technologies (RHT, TSX-V), which announced this morning that it has entered into an MOU with Invictus MD Strategies to develop a mobile application for cannabis patients and consumers and their clinical care teams, and Calibre Mining (CXB, TSX-V) which equaled last summer’s multi-year high at 27 cents…

4. Nighthawk Gold (NHK, TSX-V) announced this morning that it has discovered a new mineralized quartz diorite intrusion similar to the Colomac and Goldcrest sills at its Colomac Project in the Northwest Territories…exploration activities focused on prospecting geophysical targets outlined from recent airborne and ground magnetic surveys, and culminated in the discovery of the Nice Lake sill located just 1.5 km east of the Colomac resource…the Nice Lake sill is a minimum of 4 km long with anomalous Gold mineralization over much of its length, lies parallel to the other 2 sills, and shares the same magnetic intensity and anomaly shape…

5. Evrim Resources (EVM, TSX-V) has signed an exclusivity agreement with Antofagasta on the 500+ sq. km Ball Creek Project in the Golden Triangle, east of Galore Creek and 60 km directly north of Eskay Creek…Antofagasta will have the exclusive right to complete due diligence and negotiate a definitive agreement to acquire up to a 70% interest in Ball Creek by spending up to $31 million (U.S.)…the project features Copper-Gold porphyry and epithermal Gold-Silver targets…meanwhile, more results are pending from Evrim’s Ermitano Gold Project in Sonora state, Mexico, where partner First Majestic Silver (AG, NYSE) drilled 18 m grading 11.4 g/t Au and 86 g/t Ag as reported January 17…

6. LiCo Energy Metals (LIC, TSX-V) is on the verge of a new high…the company is preparing to start an exploration program at its newly-acquired Lithium Project in Chile while LIC is also anchored by the Teledyne Cobalt Property near Cobalt, Ontario…Teledyne adjoins the past producing Agaunico mine (4.3 million pounds of Cobalt and 980,000 ounces of Silver between 1905 and 1961)…a significant portion of the Cobalt that was produced at Agaunico was located along structures that extended southward onto Teledyne…

7.  What’s Frank Basa up to?…Granada Gold Mine (GGM, TSX-V) has signed an LOI with the Temagami First Nation (TFN) and Teme-Augama Anishnabai (TAA) that would provide GGM the opportunity to evaluate brownfield sites on TFN/TAA’s traditional territory for the potential of redevelopment…the LOI will “allow the company to assess the technical, operation and financial feasibility of installing a mill for processing precious-metal-bearing ores within an existing brownfield site in close proximity to Temagami First Nation and Teme-Augama Anishnabai,” according to a news release issued by GGM this morning…the stock is up half a penny to 7 cents through the first 30 minutes of trading…

Gold has traded between $1,221 and $1,233 so far today…as of 11:00 am Pacific, bullion is up $12 an ounce at $1,232…Silver has jumped 20 cents to $17.69…Copper is up 3 pennies to $2.64…Nickel, benefitting from the permanent closure of more mines in the Philippines, has gained another 10 cents to $4.71…Crude Oil is off 84 cents a barrel to $52.99 while the U.S. Dollar Index has pulled back from its highs of the day, now up one-fifth of a point to 99.93 as the 100 level remains new resistance…

The latest trade data from the Commodity Futures Trading Commission show that hedge funds continue to build long positions in Gold and Silver amid increased global uncertainty…Gold’s net length jumped more than 16% from the previous week, its biggest jump so far this year, while Silver’s net length was up 14% and has increased for 5 consecutive weeks…money managers haven’t jumped on the bandwagon yet but that’s a positive contrarian sign in our view…plenty of potential buyers remain on the sidelines – soon enough they’ll be scrambling to get positioned…multiple technical indicators are flashing positive for Gold including its now rising 50-day moving average (SMA) and the fact the metal is now gaining traction above its 100-day SMA at $1,220…as John’s latest Gold chart showed Saturday in our Week In Review And A Look Ahead, a key Fib. resistance band on the 9-month chart stretches from $1,216 to $1,236…expect Gold to accelerate significantly once it pushes through the top of that band…

Any pick-up in buying from Asia would help Gold a lot…China’s net Gold imports in December, at 51.51 tons, were down 60% from December 2015…meanwhile, demand in India fell 21.2% in 2016 from the previous year to 675.5 tons as new rules such as those forcing customers to disclose their tax codes for purchases above 200,000 rupees (approx. $3,000 U.S.) dampened demand…

Pretium Resources (PVG, TSX), our favorite emerging producer, is challenging key Fib. resistance in the $15.50’s today with a strong gain of more than $1 per share…last week the company announced it’s accelerating the commissioning of the high-grade Brucejack Gold mine by 2–3 months, meaning commercial production is nicely on track for 2017 as planned…based on an updated forecast, economics are robust as internal rates of return and payback have improved marginally in comparison with the project economics from a year ago, even though capital costs have increased 16% from the February 2016 estimate…base case post-tax NPV (5% discount) is $1.53 billion (U.S.) while post-tax IRR is 28.5%…Pretium anchors one of the most geologically prospective Gold-Silver-Copper districts in the entire world where the first magmatic Nickel-Copper-rich massive sulphide system with PGE’s, Gold and Cobalt has also been confirmed, just 11 miles west of Eskay Creek…

B2Gold (BTO, TSX) this morning reported record Gold production of 550,423 ounces, achieving revised production guidance while full-year all-in sustaining costs (AISC) are expected to be near the low end of the reduced guidance range between $780 and $810 per ounce (U.S.)…

In Today’s Morning Musings…

1. LiCo Energy Metals (LIC, TSX-V) – the Lithium-Cobalt double play…

2. Volume surges in Metal Creek Resources (MEK, TSX-V) and Manitou Gold (MTU, TSX-V)…

3. Strong clues as to how high the Venture will climb by PDAC…

4. Daniel’s Den – a 3-cent gem, and what are Glencore’s plans for Polymet Mining (PLM, NYSE) and its large resource including Cobalt?…

SAVE 25% on a BMR subscription with our Winter Special, extended for a few more days to accommodate reader requests…subscribe risk-free to a BMR Basic, Gold or Pro Subscription TODAY – and we’ll show you our proprietary strategies that have delivered unbeatable documented triple-digit returns…

New subscribers receive an industry-leading 100% money back satisfaction guarantee, so try us out and super-charge your portfolio with the best speculative picks and commodity analysis you’ll find anywhere!…

Sign up NOW or login as a current subscriber with your username and password…

Check back later this morning for today’s BMR Morning Market Musings.

1. Gold climbed to $1,231 overnight, a new 2-and-a-half month high…as of 7:00 am Pacific bullion is holding most of its gains, up $7 an ounce at $1,226 as it begins the new week on a strong note with more safe haven buying despite a rebound in the greenback today…the Dollar Index has pushed back up above 100 with a gain of more than one-third of a point…

2. Crude Oil prices are steady this morning…OPEC supply cuts and rising tensions between the United States and Iran are, for now, being balanced off by ample inventories and signs that higher prices will revive U.S. output…the Trump administration’s new sanctions against Iran, though not affecting Oil output, have raised the possibility of further developments that could hinder export growth in OPEC’s 3rd-largest producer…John’s latest WTI chart and Venture trading patterns suggest Crude could make a significant jump this month…

3. The Venture, aiming for its 7th straight weekly advance, has jumped out of the gate strongly this morning with a gain of 6 points to 825 as of 7:00 am Pacific…this puts the Index within just 23 points of last summer’s high…

4.  The incredible leverage the speculative Venture can offer, especially in a bull market!…Pyng Medical (PYT, TSX-V) has soared nearly 400% this morning on a cash buyout at 30.2 cents (U.S.) from Teleflex Medical Canada Inc., a wholly owned indirect subsidiary of Teleflex…

5. Accumulation continues in Cobalt stocks…LiCo Energy Metals (LIC, TSX-V), which has exposure to both Cobalt and Lithium through advanced properties in northern Ontario and Chile, is up a penny at 18 cents as of 7:00 am Pacific…technical breakouts occurred last week in Cobalt juniors Castle Silver Mines (CSR, TSV-V), CobalTech Mining (CSK, TSX-V) and Cruz Capital (CUZ, TSX-V)…

6. Tinka Resources (TK, TSX-V) has hit a new 52-week high in early trading, touching 39 cents – it’s best level in nearly 2 years…the company is gearing up for a major drill program at its 100%-owned Ayawilca Zinc Project in the heart of the richly mineralized Silver-Lead-Zinc belt of Central Peru…

7. A couple of significant bought deals announced this morning…Osisko Mining (OSK, TSX) is raising $30 million at $3.40 a share while Aphria (APH, TSX-V) is raising $50 million at $5.00 a share…APH has also received conditional approve to move from the Venture to the TSX.  Vic Neueld, APH CEO, stated, “Graduating to the TSX represents yet another important milestone for Aphria as we continue our successful journey as one of Canada’s leading cannabis companies. This achievement comes on the heels of many other important milestones we’ve reached: first public licensed producer to report consecutive positive quarterly operating results; first public LP to report consecutive quarters with net profits; first public LP to license its cultivation intellectual property; diversification with non-cultivation assets; low-cost producer status.”

TSX Venture Exchange and Gold

The Venture has reeled off 6 straight weekly gains since its December 20 correction low of 711 as this fresh uptrend in an ongoing bull market begins to accelerate.

It’s certainly not too late to ride this bull – still early in the game in terms of the “Big Picture”.  Today’s report features valuable information to profit from immediately including exclusive BMR research that reveals the potential for some startling near-term gains in key sectors and stocks.

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Gold has traded between $1,206 and $1,222 so far today…as of 11:00 am Pacific, bullion is up $2 an ounce at $1,217…Silver is off slightly at $17.38…Copper has slipped a few pennies to $2.61…Nickel, which has enjoyed a strong week, has retreated modestly to $4.64…Crude Oil is is up 12 cents at $53.66 a barrel while the U.S. Dollar Index is flat at 99.85…

Holdings of the world’s largest Gold-backed exchange-traded fund, SPDR Gold Shares, rose for a second straight day yesterday, up 1.5 tonnes to 811.22 tonnes…however, MKS noted that interest in Gold in major consumer Asia was muted overnight despite the return of Chinese buyers to the market after the Lunar New Year holiday…

Despite a lackluster finish to 2016, the World Gold Council saw the past year as a good example of Gold’s role as an important diversifier in a global marketplace…in its year-end review, the WGC noted that Gold demand grew 2% in 2016 to 4,308 tonnes, its highest level in 3 years…the increased Gold consumption was completely driven by investor demand as Gold-backed exchange-traded products saw their second strongest year on record, only behind inflows recorded in 2009…sets the stage for a very interesting 2017!…

U.S. Dollar Index Update

John noticed some potential near-term trouble for the U.S. Dollar Index in December given the RSI(14) negative divergence with price, a classic “topping signal”, though mainstream commentators continued to push the narrative that the greenback was headed much higher in 2017 while Gold would come under further pressure…

As it turned out, John’s chart was bang-on and the greenback experienced its worst January in 3 decades while Gold bounced back up over $1,200 an ounce…

President Trump, concerned about how an overly strong dollar could negatively impact trade balances, has done his bit to help push down the currency…his efforts are appreciated because a dollar breakout above 104 would have been problematic for the resource sector…maybe he was reading John’s charts!…

The behavior of the Venture so far this year suggests the dollar should head lower this quarter, perhaps testing its rising 200-day moving average (SMA) around 97…in any event, the Dollar Index is clearly now constrained below major resistance at 104 and that’s very bullish for the Venture (expect the current Venture trend to intensify)…

When the Dollar Index 50-day SMA begins to turn lower, as it has just done, that’s a green light for the Venture and commodities to push higher…

Cobalt Update

At BMR, we’ve been bullish on Cobalt since early last year and now the metal’s uptrend is accelerating with more investors beginning to get positioned in the sector…

Note on the multi-year chart how Cobalt is now trading around $17 a pound (U.S.), breaking out above the $15 resistance from late 2011…next stop should be $20 and that’s going to wake up a lot of investors…

Check out Daniels’s article on Cobalt from the other day…

Capitalizing On Cobalt

Cobalt stocks on the move today include eCobalt Solutions (ESC, TSX-V), up 3 cents at 88 cents, CobaltTech Mining (CSK, TSX-V), up a penny at 25.5 cents, Castle Silver Mines (CSR, TSX-V) and Cruz Capital (CUZ, TSX-V)…more this weekend on Cobalt stocks in our Sunday Sizzler for Pro subscribers…

In Today’s Morning Musings…

1. Checking up on our favorite Gold producers/emerging producer…

2. ESK…essential (E) stock (S) to keep (K)…

3. Golden Valley Mines (GZZ, TSX-V) accelerates…

4. Daniel’s Den – Friday Footnotes, 3 stocks (including GGI) and 1 astute observation…

SAVE 25% on a BMR subscription with our Winter Special, extended for a few more days to accommodate reader requests…subscribe risk-free to a BMR Basic, Gold or Pro Subscription TODAY – and we’ll show you our proprietary strategies that have delivered unbeatable documented triple-digit returns…

New subscribers receive an industry-leading 100% money back satisfaction guarantee, so try us out and super-charge your portfolio with the best speculative picks and commodity analysis you’ll find anywhere!…

Sign up NOW or login as a current subscriber with your username and password…