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Visit the BMR comments section throughout the day for updates and helpful information. Daniel’s Den returns Friday.

1. Gold, enjoying its 5th straight winning session, is now testing key resistance…bullion is up $13 an ounce at $1,354 as of 7:00 am Pacific, thanks to a plunging greenback, while Silver has jumped 37 cents to $17.40…on the base metal front, Copper has added 8 cents to $3.20…Nickel, rapidly closing in on the critical $6 level, has surged 13 cents to $5.93 while Zinc is steady at $1.57…Crude Oil is 13 cents higher at $64.60 while the U.S. Dollar Index is taking the path of least resistance, as we predicted, falling below key support at 90…it’s currently down three-quarters of a point at 89.28…look out below…the 87 level is uptrend support going back to the 2011 lows on BMR’s long-term monthly Dollar Index chart…

2. The Trump administration has favored a lower dollar since assuming power a year ago and that policy was very much evident again today, contributing to this latest plunge in the currency…speaking at a press conference at the World Economic Forum in Davos this morning, Treasury Secretary Steven Mnuchin had to know that his comments regarding the dollar would be perceived negatively by traders, pushing the Dollar Index below a key level.  “Obviously a weaker dollar is good for us as it relates to trade and opportunities,” Mnuchin told reporters in Davos, according to Bloomberg, adding that the currency’s short term value is “not a concern of ours at all (our emphasis).  Longer term, the strength of the dollar is a reflection of the strength of the U.S. economy and the fact that it is and will continue to be the primary currency in terms of the reserve currency,” he stated…Mnuchin’s comments added to the greenback’s immediate woes and rippled across global markets today, boosting the price of metals and emerging market assets, halting the rally in European and Japanese shares, and pushing currencies like the British pound and euro higher…

3. Holdings of Gold by global exchange-traded funds have hit the highest level in nearly 5 years, according to SP Angel, with the total known holdings in bullion-backed ETFs rising to 2,254 tonnes as of yesterday, the best since May 2013…yesterday marked the 6th daily inflow in a row…

4. 2018 is looking great for commodities, according to Jeffrey Currie, global head of commodities for Goldman Sachs…one of Currie’s last great calls was on Gold in early 2013…now, he’s pointing out that the macro environment is ideally positioned to push the commodities complex higher, though he missed the first leg in 2016.  “For the first time in years we have a positive carry to own commodities more broadly,” Currie told CNBC yesterday…he describes the positive macro backdrop as the “best in decades for owning commodities”, thanks to the three “R’s” – reflation, reconvergence of global growth, and relveraging.  “You put those three together, they create a positive macro backdrop, the best since 2004.”  Goldman Sachs commodities chief explained that inflation is projected to run at a quicker pace as global economies continue to grow and borrowing rises…Currie is particularly bullish on the base metals complex where “you have a lot of potential price upside”…

5. If only Canada’s sense of urgency at getting pot to market was matched by the same sense of urgency at expanding Oil pipeline capacity…Western Canadian Select (WSC), the Canadian benchmark, traded near $33 yesterday after losing about $8 in 2 days, while WTI hit nearly $65, up more than a dollar per barrel over the same period…Canada exports approximately 3.2 million barrels of Oil a day to the United States of different qualities…the discount means a daily loss of tens of millions in revenue, taxes and royalties for Canadian producers and governments, and a corresponding gain for their counterparts in the U.S., its only export market…the latest scare to push down Canadian Oil prices came from Canadian Pacific Railway Ltd. late last week, which said it has no interest in carrying big quantities of Western Canadian Oil while producers wait for pipelines to get built…Canadians are getting what they asked for…federal and provincial anti-energy policies, packaged by naive globalists in this country as an attempt to “save the planet“, have done nothing to move the needle on “climate change”…what they have done, though, is transferred wealth to other countries…

6. Stronger than expected earnings results have pushed U.S. equity markets to new record highs this morning…the Dow is up 156 points through the first 30 minutes of trading…J.P. Morgan chief Jamie Dimond told CNBC this morning that the Trump tax cuts will drive wages higher and spark an economic boom.  “I think it’s possible you’re going to hit 4% some time this year,” Dimon said in an interview at the World Economic Forum in Davos, Switzerland. “I promise you, we are going to be sitting here in a year and you all will be worrying about inflation and wages going up too high.”  The Venture has added 5 points to 905 while the TSX is down 11 points…some representatives of the Canadian auto industry slammed Canada’s decision to sign a revised Trans-Pacific Partnership yesterday, calling the deal harmful to the auto sector and warning that it undermines Canada’s position in NAFTA negotiations…Cannabix Technologies (BLO, CSE) is up another 15 cents at $3.38 following positive news yesterday regarding development of its marijuana breathalyzer…more impressive high-grade results from Arizona Mining (AZ, TSX) from its Hermosa Project, including 31 feet assaying 40.9% combined Zinc-Lead and 11.7 ounces per ton Silver in drill hole HDS-497 which successfully targeted the northwest extension of the Taylor Deeps Zone…

7. Aurora Cannabis (ACB, TSX) and Cannimed Therapeutics (CMED, TSX) have kissed and made up…the two have finally agreed on terms of an Aurora buyout…under the new offer, CanniMed shareholders will receive 3.40 Aurora shares or a combination of cash and shares at the election of each CanniMed shareholder, with the maximum aggregate cash consideration of $140 million…based on an implied Aurora share price of $12.65 and the 3.40 exchange ratio, the new offer would equate to $43.00, representing a 181% premium over the closing price of CanniMed Shares on November 14, 2017, the last day prior to the public disclosure of Aurora’s intention to pursue a combination with CanniMed, and a 79% increase to the previous offer cap price of $24…CMED is up $6 a share at $43.50 as of 7:00 am Pacific…

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