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1. Gold has traded between $1,290 and $1,300 so far today on fresh equity market jitters…as of 7:00 am Pacific, the yellow metal is up $7 an ounce at $1,296 as it prepares for its first monthly gain since January…Silver is flat at $14.50…Copper is steady at $2.63…Nickel has slipped 7 cents to $5.42 while Zinc is off 2 pennies at $1.21…Cobalt is unchanged at $15.42…Crude Oil has come under pressure again on global growth concerns, down $1.80 a barrel to $54.79…Oil is on track for its biggest monthly drop in 6 months…market players are focused more on demand worries than current supply tightness…the U.S. Dollar Index has fallen one-fifth of a point to 97.98 as it continues to struggle to gain traction above the key 98 level…
2. Commerzbank on Gold’s move yesterday: “Gold might also be supported by vice Fed chairman Richard Clarida stating yesterday that if inflation remained low, global growth remained weak and/or the financial markets became strained, the Fed would rethink its monetary policy. The market is now factoring in 3 Fed rate cuts totaling 75 basis points by the end of 2020. If it does come to this, the U.S. dollar would no doubt also suffer accordingly. From this point of view, we see considerable scope for Gold gains”…
3. Trump’s tariff gamble: President Trump announced on Twitter yesterday that the U.S. will impose a 5% tariff on all Mexican imports from June 10, ramping up to 25% by October, if Mexico does not take action to “reduce or eliminate the number of illegal aliens” crossing the border into the United States…there’s no question that Mexico has not respected the border it shares with the U.S., but Trump has to be careful that another tariff flap doesn’t have unintended consequences…ironically, the warning came as Trade Representative Robert Lighthizer sent a letter to congressional leaders to kick-start the process of approving updates to the North American Free Trade Agreement (USMCA)…meanwhile, on that note, Vice-President Mike Pence was in Ottawa yesterday as Canada prepares to ratify the USMCA…Pence could not have been impressed with Prime Minister Trudeau who foolishly decided to lecture on women’s rights (ironic in light of the ouster of 2 high profile Liberal female cabinet ministers) and abortion during a press conference with the pro-life Vice-President…it was another desperate attempt by Trudeau to distract and divide Canadians by trying to make abortion a wedge issue in this fall’s election…
4. The Trudeau economy continues to grossly underperform the Trump economy…Canada’s economy expanded at an annualized and less-than-expected pace of just 0.4% in the first 3 months of the year, giving the country its weakest back-to-back quarters of growth since 2015…the real GDP reading for Q1 was followed a revised growth number of just 0.3% in the previous quarter, Statistics Canada said in a new report this morning…it was the slowest 2-quarter stretch of growth since an Oil price plunge caused the economy to shrink over the 1st half of 2015…economists had expected growth at an annualized rate of 0.7% for Q1…the Stats Can report said downward pressure on Q1 growth was driven by weakness in net trade as imports increased 1.9% and export volumes dropped 1% for their 1st quarterly decrease since 2017…Canada also saw a substantial contraction of 9.5% in its exports of farm and fishing products as well as a 2.8% drop in Crude-Oil shipments…Canada is a resource country, but try to explain that to Trudeau…
5. Enthusiast Gaming Holdings (EGLX, TSX-V) announced this morning that it’s merging with J55 Capital (FIVE, TSX-V) and Aquilini GameCo, a private Canadian company, to form the leading publicly traded esports and gaming media organization in North America…Menashe Kestenbaum, CEO of Enthusiast Gaming commented, “Our vision has always been to build the largest, vertically integrated esports and gaming company in the world. The merger with Aquilini GameCo and Luminosity was a strategic decision that positions us as a dominant player in the gaming industry and unlocks access to Luminosity’s 50 million dedicated esports fans and one of the largest esports franchises. Through our successful monetization strategy, we will gain extremely valuable knowledge and information on the demographic that will revolutionize the advertising opportunities we can offer to brands and sponsors”…EGLX is up 10 cents at $1.85 through the first 30 minutes of trading…watch for more companies to enter this space and list on the Venture and the CSE during the 2nd half of the year…
6. The Dow, headed for its 6th consecutive weekly loss, is down 270 points through the first 30 minutes of trading…the Dow, S&P 500 and NASDAQ will post their first monthly declines of 2019…in Toronto, the TSX is 111 points lower in early trading…Gold stocks are performing well, cushioning the blow from another bad day on Wall Street…Charlotte’s Web (CWEB, TSX) has commenced trading on the TSX in conjunction with a voluntary delisting from the CSE…the Venture has retreated 4 points to 599…with the Rare Earth sector heating up, Defense Metals (DEFN, TSX-V) has arranged a $1 million financing evenly split between hard dollars ($500,000 @ 15 cents with a full 12-month warrant exercisable at 30 cents) and flow-through ($500,000 @ 20 cents with no warrant)…funds will be used to carry out a summer drill program at the company’s Wicheeda REE Property, which features an Inferred resource, northeast of Prince George…DEFN enters this financing with just 23.7 million shares outstanding for a market cap of only $5 million…
7. Voleo Trading Systems (TRAD, TSX-V) launched on the Venture this morning…Voleo is a mobile fintech company focused on transforming the retail investing space through a collaborative investing platform…Voleo’s near-term efforts are focused around marketing to U.S. consumers, where planned campaigns will drive installs and users as a precursor to material business-to-consumer (B2C) revenue…the company also plans to launch new product features that will expand its offering in the coming quarter…as a part of the successful closing of the recent reverse takeover transaction, Voleo is now well positioned to work towards building strong relationships with banks and credit unions (B2B) who are looking for tools to engage their customers and members, amass deposits and cross-sell products…Mark Morabito, Executive Chairman, commented, “Voleo is fit to serve a critical gap in market as traditional investing methods are no longer meeting consumer needs. We stand to see the biggest wealth transfer in history as the baby boomer generation ages, and millennials begin to drive how they approach their finances. With an estimated 50 million person market in the U.S. alone and 67% of millennials reported to be unhappy with how they currently invest, Voleo’s cutting-edge mobile technology is well-positioned to meet that opportunity and revolutionize a new way for people to invest”…
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