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1. Gold has traded between $1,278 and $1,287 so far today…as of 7:00 am Pacific, Gold is down $6 an ounce at $1,279 as a minor pullback continues…in its 2019 forecast, Scotiabank’s analysts see Gold prices averaging the year around $1,300 as prices are caught in a $150 range with the peak coming in at $1,350 an ounce…according to Gold’s technical picture, Scotiabank says “a floor at $1,200 is both confirmed and respected”…a weaker U.S. dollar will be a major factor in Gold’s potential, the bank believes, with the Dollar Index averaging 89.4 this year, down significantly from its current level…“Peak dollar is simply behind us.  The U.S. twin deficit is a core reason for expected weakness and the thinking that the Fed will be handcuffed from raising rates too high,” the analysts concluded…Silver is off 2 cents at $15.29…very strong new support exists at $15…Copper is steady at $2.69…Nickel, on a nice run recently, is up 6 cents at $5.28 while Zinc is 2 cents higher at $1.19…Crude Oil has gained 19 cents a barrel to $53.20 while the U.S. Dollar Index is flat at 96.30…Chinese finance ministry officials today said the government would step up fiscal spending this year, focusing on further cuts in taxes and fees for small firms, to support its economy which last year registered its lowest growth rate since 1990…it’s believed China will also take additional measures during its annual parliamentary meeting in March…meanwhile, the Bank of Japan says it’ll maintain its ultra-easy monetary settings which have been running since 2013…this comes after the country reported that its December 2018 exports fell by 3.8%, the most in more than 2 years, dragged down as weak global demand and U.S.-China trade frictions took their toll on the trade-reliant economy…as much as President Trump wants to complete a new trade pact with China, it’s clear that he will not soften his position – nor should he – that Beijing must make real structural reforms, including how it handles intellectual property…

2. Russia should not unleash an Oil price war against the U.S. but rather stick with output cuts even at the cost of losing market share in the medium term, one of the main Russian architects of a production pact with OPEC said today at the World Economic Forum in Davos…since 2017, Russia and OPEC have cut Oil production jointly for the first time in an effort to boost the price of Crude…following their supply pact, Oil has traded mostly in the $50 and $60’s, well above the 2016 lows…“For U.S. shale production to go down, you need Oil prices at $40 per barrel and below.  That is not healthy for the Russian economy,” stated Kirill Dmitriev, head of the state-backed Russian Direct Investment Fund…“We should not take competitive action to destroy U.S. shale production”…

3. Rex Murphy, one of Canada’s most respected commentators and authors, was keynote speaker at the Vancouver Resource Investment Conference (VRIC) Sunday-Monday and hit the nail on the head in terms of how government in Canada is the biggest threat to the resource sector…“The key colonels of any of the 21st century civilizations is energy and minerals.  Without energy and minerals, there is nothing.  Every modern convenience, every miracle of the new Internet, everything that we have in an integrated 21st century computer society, depends upon sources of energy and sources of minerals.  If any other country in the world had the bounty that Canada has in both, we would have every government saying thanks Providence or thank God, and we would not be building impediments and always making the most essential industries the ones that have to prove themselves…we would be concentrating on what we have, making jobs out of it, and protecting those industries,” stated Murphy in an interview with Kitco’s Daniela Cambone at the VRIC…

4. The Loony Left in the media and elsewhere have really gone off the deep end in recent days, from last week’s false Buzzfeed report regarding Trump to the “ambush” of Christian high school students wearing MAGA caps at a pro-life rally in Washington, DC, to Vancouver City Council – seemingly with nothing better to do – declaring a Climate Change Emergency…now, hot on the heels of Democratic congresswoman Alexandria Ocasio-Cortez claiming the world is going to end in 12 years due to climate change, Svend Robinson (another socialist) has made a return to the Canadian federal political scene with a goal to destroy the Oil and gas industry in this country with help from his friends in the media…“We have to recognize that fossil fuels and any new pipelines, any new infrastructure is taking us down a road to climate disaster,” Robinson stated in an interview on CTV’s Power Play…“This is an industry which we have to recognize is on its way out.  We’ve got to leave most of the Oil and gas in the ground and we’ve got to move to the renewable energy.  That means no new infrastructure, no new Oil and gas, and most importantly respecting hereditary Indigenous people – for example the Wet’suwet’en – who are saying we don’t want this,” he went on…in other words, Robinson wants to give First Nations in Canada – many of whom can’t even manage their own affairs – VETO power over the Canadian resource sector, which in turn would hurt those First Nations groups who are entrepreneurial and want to see major resource projects move ahead in order to generate much-needed jobs and prosperity for their people…on Saturday, Robinson was nominated as the federal NDP candidate for Burnaby North-Seymour, the Vancouver-area riding where the Trans Mountain pipeline’s products are loaded onto ships…the crowd erupted into cheers when Robinson advocated “the path of socialism, democratic socialism”…David Suzuki was also in attendance…

5. Prime Minister Justin Trudeau is on track to spend more on federal government programs than any Prime Minister before him, according to a new study from the Fraser Institute…Trudeau’s government will have spent about $8,600 per Canadian on programming for the 2018-19 financial year…that’s about 50% more than average spending during the last long-haul Liberal tenure under Jean Chrétien and Paul Martin…according to numbers released in November’s fiscal update, the deficit for this financial year alone is projected to be $18.1 billion, and debt is expected to rise by $96.7 billion over the next 5 years to $765 billion in total…in fact, according to a December report from the federal Finance Department, the federal deficit won’t be erased until 2040 based on current trends, despite Trudeau’s election promise that a deficit under the Liberals would only be “temporary” and “limited” before books were balanced by the end of his first term later this year…

6. Canada’s economy may soon endure something it hasn’t faced in 68 years – a recession without the U.S. in the same boat…that’s the view of Jim Mylonas, global macro strategist at BCA Research Inc. in Montreal, a firm that’s been making calls on markets and economies since 1949…Mylonas says the surge in household debt combined with rising interest rates will push the Canadian economy into recession, even while the U.S. economy continues to grow…“If the U.S. economy is doing relatively well and the Fed is raising rates, it’s very hard for the Bank of Canada to just sit on hold and not follow the Fed,” Mylonas said…“We’re now at the point where the Bank of Canada is going to be flirting with triggering the next recession if it hasn’t already”…if Mylonas is right, it would be the first time since 1951 that Canada slipped into a recession without the U.S. also contracting…a serious downturn in the Canadian economy is by no means a consensus view at the moment…on Monday the International Monetary Fund predicted 1.9% growth for Canada this year, down slightly from is previous estimate of 2%, while the Bank of Canada sees an expansion of 1.7%…BOC Governor Stephen Poloz, at the World Economic Forum in Switzerland, told Bloomberg Television today that the Canadian economy is in “good shape”, although low Oil prices are delivering “a material shock” that would cut growth this year…

7. The Dow has jumped 271 points through the first 30 minutes of trading after United Technologies and Procter & Gamble reported better than expected earnings…in Toronto, the TSX has rebounded slightly after its 12-session winning streak was snapped yesterday…the Venture, meanwhile, is flat at 593…if you like investing in Guyana, Goldsource Mines (GXS, TSX-V) has something for you…GXS is the early leader in trading after confirming a high-grade Gold discovery with the first 2 diamond core holes at its Eagle Mountain Project…they included EMD18–053 with 40 m (est. true width) grading 6.5 g/t Au, and EMD18–052 with 17 m (est. true width) grading 2.8 g/t Au…results from these near-surface drill holes show high-grade mineralization below the previously announced surface trench, TRBS18–002, which returned 123 m (horizontal width) grading 1.92 g/t Au…GXS has over 200 million shares outstanding…Amex Exploration (AMX, TSX-V) has launched its 2019 diamond drill program on the Perron Property Eastern Gold zone after intersecting 393.3 g/t Au over 1.70 m in hole PE2019–22 at a vertical depth of 170 m, as announced this morning…this hole was planned to test the high-grade vein interval previously reported in hole PE2018–17 (269.2 g/t Au over 1.35 m) at a vertical distance of 25 m above it, starting from the same collar location…the Perron Property is located approximately 110 km north of the town of Rouyn-Noranda…AMX has pulled back 7 cents to 38.5 cents after a run-up yesterday…Giga Metals (GIGA, TSX-V) was halted pre-market, followed by news that the company has appointed Robert Morris, a former senior executive with Vale SA, the largest Nickel producer in the world, to its board of directors…Giga will have to do a lot better than than to convince the market that it’s low-grade Nickel-Cobalt play in northern B.C. has serious potential…

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