Gold has traded between $1,274 and $1,288 so far today…as of 11:50 am Pacific, the yellow metal has retreated $7 an ounce to $1,282…Silver is off 10 cents at $18.15…Copper is down slightly at $2.50…Nickel is up 2 cents to $4.22 after a 5% drop yesterday…Crude Oil is under pressure, down $2 a barrel to $50.36 while the U.S. Dollar Index has rallied one-fifth of a point to 99.73…
The U.S. economy expanded at a modest-to-moderate pace between mid-February and the end of March, but inflation pressures remained in check despite more difficulties in attracting and retaining workers, the Federal Reserve said today…
Copper prices are at their lowest levels since early January, weighed down by concerns over Chinese demand and gridlock in Washington where the Trump administration is having difficulty pushing through its legislative agenda…however, the metal has strong technical support in the upper $2.40’s after confirming an important breakout on long-term charts last year…
According to this week’s fresh assessment from Citigroup, commodities are forecast to have a bumper year in 2017 – this would be consistent with how the Venture has been trading – with Oil prices expected to rally to at least the mid-$60’s during Q4…Citigroup’s outlook assumes a continuation of the OPEC/non-OPEC producer deal in the 2nd half of this year and the expected associated inventory drawdown…today the secretary-general of OPEC said the group is committed to restoring market balance by bringing global inventories down to the industry’s 5-year average…
WTI prices, however, took a dive late this morning after U.S. data showed a smaller-than-expected decline in overall Crude inventories coupled with another rise in production, hindering OPEC’s efforts to reduce the global surplus…
Record Number Of Investors Say U.S. Stocks Are Overvalued
More than 4 out of 5 professional investors believe U.S. stocks are overvalued, and they’re fleeing to other parts of the world to compensate, according to a survey released today…the monthly Bank of America Merrill Lynch Fund Manager report found 83% of respondents saying that domestic stocks are too expensive, a record number for data that reach back to 1999…consequently, portfolio managers are increasingly eyeing overseas markets with allocations to emerging markets hitting a 5-year high while Europe is also hot…the S&P 500 now trades at about 17.5 times expected earnings over the next 12 months, the highest level since 2002…
Communist Has Nearly 20% Support In France
The race for the French Presidency has centrist Emmanuel Macron locked in a duel with National Front leader Marine Le Pen at the top of the polls for the first round of voting Sunday…what’s surprising, though, is that communist candidate Jean-Luc Mélenchon is surging in the polls and has drawn even with Republican François Fillon in 3rd place, within just 4 points of Macron…
Melenchon says he would introduce a 100% tax on income above 400,000 euros ($425,000 U.S.), 20 times higher than France’s average wage…the top rate of income tax is currently an already high 45%…boosting that to 100% would effectively cap earnings at 400,000 euros…President Francois Hollande proposed a 75% top tax rate in 2012, but the proposal was rejected by the French courts…high taxes have contributed to an exodus of millionaires from France (10,000 in 2015 followed by another 12,000 last year according to New World Wealth), and how can that possibly be good for the country?…Melenchon’s response? – “I believe that there is a limit to the accumulation (of wealth). If there are any who want to go abroad, well, goodbye!” We’ll gladly take their money in North America…
In Today’s Morning Musings….
1. A classic example of the potential leverage junior resource stocks provide…
2. Gold and the geopolitical backdrop…
3. A “Quantum leap” on the way?…
4. Daniel’s Den – the biggest Natural Gas find in a decade?…
Did you know that for as little as just over $2 a day, you can be a BMR subscriber and tap into the best analysis and picks for the junior resource sector that you’ll find anywhere? Last year’s BMR Top 50 List returned a whopping 118% and we are delivering market-trouncing returns again in 2017. BMR was the first to call the new bull market in the Venture in early 2016, and our coverage of the commodities space gives you valuable daily insights into price movements and critical trends. BMR is daily information that puts you ahead of the crowd!
We also give first-time subscribers an industry-leading 100% money-back satisfaction guarantee. If you don’t believe BMR has helped you make money for your first 6-month subscription period, we’ll refund your subscription fee in full – no questions asked!
To read the rest of today’s Morning Musings, sign up NOWor login as a current subscriber with your username and password.