Gold has traded between $1,243 and $1,259 so far today…as of 9:00 am Pacific, bullion is down $5 an ounce at $1,253 after yesterday’s Fed-inspired tumble of more than $20 an ounce…Silver is off 43 cents to $16.45…Copper has shed a penny to $2.08…Crude Oil has retraced $1.03 a barrel to $47.16 while the U.S. Dollar Index is up slightly but off its highs at 95.25…
Hawkishly construed minutes of the April FOMC meeting, released late in yesterday’s trading session, gave the greenback a boost and sent Gold to its lowest level in 3 weeks – an over-reaction in our view given Fed officials’ obvious lack of credibility…Commerzbank stated, “As the minutes reveal, a few FOMC members spoke out at the most recent meeting in favor of already implementing a rate hike in April. And apparently most of the meeting’s participants believe it would be appropriate to raise interest rates at the next meeting in June if the next set of data point to stronger economic growth in the 2nd quarter, further improvement on the labor market and an increase in inflation.”
Same old stuff from FOMC members, and the Gold market will call their bluff…keep in mind that Fed officials have repeatedly failed to match their rhetoric with actions which is one important reason bullion has moved the way it has this year…they have also consistently overestimated inflation…U.S. GDP growth continues to be weak under a horrible Obama economic program while the global economy is sputtering…furthermore, what are the odds of the Fed actually hiking interest rates next month when their meeting occurs just 1 week before Britain votes on whether or not to remain in the EU?…polls show the Brexit vote to be extremely close – it could go either way with many unknown consequences if Brits say NO to the EU…political uncertainty also extends to the United States…traders who believe the Fed will suddenly and magically muster the courage to initiate another rate hike next month are in for a rude awakening…this is setting up the next fall in the U.S. Dollar Index will which run into a wall around 96–97 on this rally…
By the way, an important headline index for a survey of manufacturers in the Philadelphia area saw some slowing momentum in May, showing a reading of –1.8, according to a report released this morning…the data was well below economists’ expectations and was the 8th negative reading in the last 9 months, signaling tenuous growth…
In today’s Morning Musings…
1. Updated Gold and Venture charts – stay the course…
2. Gold Standard Ventures (GSV,TSX-V) starts a 40,000 m drill program at Railroad/Pinion…
3. Graphite One Resources (GPH, TSX-V) remains halted, pending news…
4. Nemaska Lithium (NMX, TSX-V) hits new all-time high…
Plus more…click here to take advantage of our Spring Sizzler Subscription Special in effect for a limited time only, or login with your username and password to view the rest of today’s Morning Musings…
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Jon
the comments form Seabridge CEO are very encouraging,”historically high grade gold at Iskut”, hmmm wonder where else the high grade gold is going to show up close by??? CXO, GGI,?? I wish summer would hurry up and get here…
Comment by GREGH — May 19, 2016 @ 9:38 am
Quite simply, Gregh, there is high-grade over a lot of areas…even 1 ounce per tonne Au average over a vein extending 150 m at GGI’s King when there was some limited drilling in the late 1980’s…classic example of lack of follow-up but everything changed shortly after ’89 in terms of the political climate which killed exploration for a decade…
Comment by Jon - BMR — May 19, 2016 @ 11:05 am
Companies like MTS and ESK should avoid heavy dilution and make some sort of a deal. Monetize these great assets by maintaining a smaller ownership in the property,carried free until production,cash payment, shares and an NSR.
Same model TUO has used over the past yr(Finally).
unless of course they want to dilute shareholders to death.
Drilling is on its way this summer and any glimpse of high grade–The Triangle lights up like an xmas tree.
The deals are coming.
Comment by diesel — May 19, 2016 @ 11:24 am
Jon
re: CXO private placement, Eric Coffin says it was over subscribed WITHIN HOURS, he got some himself, should be announced soon and the fire sale will be over in his opinion.
Comment by GREG — May 19, 2016 @ 12:38 pm
Jon
question, it used to be as soon as I wrote a post and submitted it I could see it even though it had not been approved yet by BMR, how come we don’t see that anymore, I liked being able to see what I sent, now you do not see what was sent?
thanks
Comment by GREG — May 19, 2016 @ 12:40 pm
“Fire sale” at these prices is a good way of putting it, Greg, especially with drilling just around the corner.
Will look into your technical question re: comment section, Gregh.
Comment by Jon - BMR — May 19, 2016 @ 4:09 pm
Jon
did you see the NR from CXO they increased the amount of the private placement….
your thoughts?
thanks
Comment by GREGH — May 19, 2016 @ 4:30 pm
Yes, oversubscribed for CXO and wouldn’t surprise me if it were to become even more over-subscribed. Closing date May 31, then it’s on to drilling I suspect.
Comment by Jon - BMR — May 19, 2016 @ 4:51 pm
Jon
can we get an updated chart on GBB?
thanks
Comment by GREG — May 19, 2016 @ 9:45 pm
Hi Greg, do u have ESP?…we’ll be looking at GBB, CXO and GGI, among a couple others this morning, as all 3 charts are flashing very bullish signals.
Comment by Jon - BMR — May 20, 2016 @ 3:12 am
Hey Jon… can you do me/us a favor and review this NR from Sienna Resources??
http://finance.yahoo.com/news/sienna-resources-inc-acquires-clayton-074000023.html
Sienna used to be Brookemont I think or Habenaro Resources.. these guys are pumpers and the only peeps where they gave themselves some shares without a hold period some time back.
My issue with this NR is that they state that the claims were received by staking.. my thought is that if was a promising package it would have already been staked.. yes??
trying to figure out if these guys and this land package is legit.. or a scam continuation..??? thx in advance Jon – appreciated
Comment by Jeremy — May 20, 2016 @ 6:28 am
Another Jason G. deal, Jeremy…it’ll get promoted hard but keep your eyes open. The Clayton Valley area has been reviewed carefully for staking opportunities, so it would be interesting to hear why this ground had been passed up…from a market standpoint it may hold value but does it from a geological standpoint?…
Comment by Jon - BMR — May 20, 2016 @ 6:30 am
I know man.. got burned before… funny you mention Jason… boiler room expert!!:)
also mate – why is DEC on your top 50 list?? just asking.. must have missed it:)
Comment by Jeremy — May 20, 2016 @ 6:35 am
We added DEC because of their landholdings, Jeremy, and how we see things evolving in the Golden Triangle…spec should drive it higher over the summer…
Comment by Jon - BMR — May 20, 2016 @ 6:38 am
Impact silver is halted, maybe a take over offer in the works! It’s a small producer in Mexico.
Comment by simone — May 20, 2016 @ 7:08 am
Thx Jon – appreciated:)
Comment by Jeremy — May 20, 2016 @ 7:27 am