Gold has traded between $1,322 and $1,332 so far today…as of 10:00 am Pacific, bullion is down $5 an ounce at $1,322…Silver is off 23 cents at $18.88…Copper is flat at $2.10…Crude Oil has slid $1.25 a barrel to $45.04 while the U.S. Dollar Index has gained one-third of a point to 95.42…
RBC on Gold: “Of note is that we have not seen any significant sustained redemptions in Gold ETFs, with total holdings remaining steady despite the fluctuations in Gold price. We continue to believe strength into the year-end restocking period and in January ahead of Chinese New Year in early 2017 should provide support for a stronger Gold price in Q4/16.”
The prospect of a Fed rate next week appears dimmer than ever after yesterday’s rather dovish comments from Board Governor Lael Brainard, a close ally of Janet Yellen…the Fed should avoid removing support for the U.S. economy too quickly, Brainard said in a speech yesterday, solidifying the view that the central bank would leave rates unchanged at its September 20–21 meeting…
Wall Street Journal ace reporter Jon Hilsenrath had this to say in an article last night: “Federal Reserve officials, lacking a strong consensus for action a week before their next policy meeting, are leaning toward waiting until late in the year before raising short-term interest rates.
“It is a close call. But with inflation holding below the Fed’s 2% target and the unemployment rate little changed in recent months, senior officials feel little sense of urgency about moving and an inclination toward delay, according to their public comments and recent interviews.”
Market expectations for a Fed rate hike next week were 15% this morning, according to the CME Group’s FedWatch tool…
Equity Volatility Positive For Gold
Equity volatility is clearly on the increase, and that could soon have a positive impact on the Gold market…in a commentary published yesterday, Russ Koesterich, head of asset allocation for BlackRock’s Global Allocation team, said he likes Gold now for that very reason – the yellow metal is an effective hedge against equity volatility. “While there are several ways to mitigate the impact of rising volatility, historically Gold has been one of the more effective tools.”
Blackrock has been extremely bullish on Gold since the start of the year and consistently added to its holdings during the first half of 2016…
according to filings with the Securities and Exchange Commission, Blackrock increased its total exposure in SPDR Gold Shares – the world’s largest Gold backed EFT — by nearly 40%…
Oil Update
Oil prices are under pressure today, though one would have expected a more significant decline given a series of gloomy predictions on demand growth the last couple of days that suggest the global overhang of unused inventories may persist for longer than anticipated (unless there is a supply shock, of course)…
The International Energy Agency (EIA) said a sharp slowdown in global Oil demand growth, coupled with ballooning inventories and rising supply, means the Crude market will be oversupplied at least through the first 6 months of 2017…
This contrasts with the agency’s last forecast a month ago for supply and demand to be broadly in balance over the rest of this year and for inventories to fall swiftly…the IEA’s latest comments follow a surprisingly bearish outlook from OPEC yesterday…
“This a marked shift in outlook by the IEA, which not too long ago was contemplating a rebalancing of the market in 2016,” said Harry Tchilinguirian, head of commodity markets strategy at BNP Paribas SA in London. “OPEC’s long game got a little longer, implying the need for Oil prices to remain lower for longer to spur the necessary adjustments in supply.”
The IEA trimmed projections for global Oil demand next year by 200,000 barrels a day to 97.3 million a day…it also reduced growth estimates for this year by 100,000 barrels a day to 1.3 million a day, citing a “dramatic deceleration in China and India” this quarter coupled with “vanishing growth” in developed economies…
These updated projections on Crude demand will further complicate the Fed’s attempt at normalizing interest rates…
In Today’s Morning Musings…
1. The Gold stock that’s up 500% this year, has just raised $19 million, and has headed higher…
2. Unusual volume surge since last Thursday in Bonterra Resources (BTR, TSX-V)…
3. Arizona Mining (AZ, TSX) drills 23.1% Zn, 13.5% Pb, 0.10% Cu and 7.3 ounces per ton Silver on step-out hole at Taylor deposit…
4. Our favorite way to play Cape Ray!…
Plus more…click here to read the rest of today’s Morning Musings and all BMR exclusive content, through a risk-free Pro, Gold or Basic package, or login with your username and password…
Hello. Just wondering what has happened to ABN. Please fill us in on this and other Golden Triangle picks – EQT, GGI. Thanks.
Comment by JoeMichel — September 13, 2016 @ 10:27 am
huh,thought the us$ and gold would be doing the exact opposite after comments yesterday,one great big sucker trade?dont see this how this helps the us with a soaring buck….
Comment by Laddy — September 13, 2016 @ 10:44 am
gezz,as if there wasn’t enough layoffs in alberta as it is,but the ndp has imo just started another wave of layoffs to come,just kick em when there down hey!thats the ndp at work.
Comment by Laddy — September 13, 2016 @ 11:37 am
ABN, which we introduced at just 7 cents, has pulled back significantly from its early August highs, as a number of stocks have, JoeMichel, but with a market cap of only about $3 million and the land package they have assembled in the Heart of Gold Camp, it’s just in the beginning stages of what we see as a continuing major advance over the next 12 months that will make the 34-cent high look cheap…they’re on the Forrest Kerr Project now, carrying out work, so there should be quite a bit of news flow in Q4…clean share structure, only 20 million O/S – exactly the kind of stock that will do terrific in this new Venture bull market…I wouldn’t be surprised if they also add to their project portfolio to give them year-round exploration opportunities…GGI – there’s no way those properties they have won’t deliver some very good news in short order, so keep the faith on that one and it’s in a strong support area between 7 and 8 cents (many investors often get the most negative at exactly the wrong time, GGI will be a lot of fun to watch before the year is out)…on EQT we stressed it was a terrific buy and trading opportunity at 5 to 7 cents in the spring, that it would have a near-term run and it did…it’s now back at 6.5 cents where it will prepare for its next move up…they are making progress at Cajueiro and we’re in a Gold bull market, so that does well for the project which has both a production and exploration component…these stocks are all volatile and a long-term buy and hold strategy is never wise.
Comment by Jon - BMR — September 13, 2016 @ 12:41 pm
Guess I should elaborate on Alberta, in case you missed it, raising minimum wage in a declining provincial economy, not going to work.
Comment by Laddy — September 13, 2016 @ 2:10 pm
Speaking of snow yesterday, the entire state of montana had snow either yesterday or today. It won’t be long for the golden triangle to turn white.
Comment by dave — September 13, 2016 @ 2:14 pm
The Golden Triangle spans a massive area, Dave, and the worst area for snow is Stewart. In terms of the Heart of Gold Camp, Skeena is in the best position to drill into the winter given the lower relief advantages of the Snip. First drill results from the Snip should be any day now.
Comment by Jon - BMR — September 13, 2016 @ 3:14 pm
SNOW ! excellent – how many juniors are still thinking about working on the area in the nxt 2 weeks! one in particular is a good grief story
Comment by david — September 13, 2016 @ 3:15 pm
for anyone who isn’t already aware… new district in Yukon?
http://www.goldstrikeresources.com/files/pdf/newsSept13FinalDraft.pdf
Comment by DINGO — September 13, 2016 @ 3:16 pm
Another nice move by special situation Harvest Natural Resources (HNR, NYSE) today, especially in a down overall market – up 17 cents to 85 cents on 2.7 million shares. 40% gain since Daniel’s Sept. 1 call (“Sell The News When It Comes“).
Comment by Jon - BMR — September 13, 2016 @ 5:06 pm
Thanks so much Jon for your reply. I agree with and appreciate your feedback. I was not planning on a long-term buy and hold strategy but it’s becoming a little more that way on some of the picks. Not the best time to sell now.
Comment by JoeMichel — September 13, 2016 @ 5:59 pm
An area that I’m particularly excited about for Aben, JoeMichel, is the “Arctic Zone” in the northern part (southeast of Galore Creek) of their newly-acquired Forrest Kerr Project. Amazingly, until now, there has been no follow-up on the ground from when construction crews built a road through the Arctic zone claims (from Highway 37) to extend to the Galore Creek deposit in 2007-2008. We’ve done a fair bit of research on this.
The road cut exposed interesting structures and mineralization that requires extensive follow-up (that’s happening now as crews are there), but it was ignored at the time and then forgotten about due to the onset of the financial crisis in 2008.
There are many targets throughout that entire 40-km belt that ABN has, so it’s going to be very interesting to see what they come up with – from the Arctic zone and elsewhere – in terms of new surface discoveries and compilation of historical data into one database for the first time. It’s a high-quality package, one that’s going to figure prominently in this Camp in the years ahead and have a profound impact on the stock IMHO.
ABN also has a share structure that makes it easy to add a property in a southern climate for year-round exploration, so watch for the possibility of that. I would recommend a core position and a trading position.
Comment by Jon - BMR — September 13, 2016 @ 7:28 pm
There is no need to worry about the snow in the triangle, the activity will be so hot and heavy there shortly, it’s just going to melt away.
Comment by Laddy — September 13, 2016 @ 7:46 pm
great coverage of Prosper gold
http://www.pinnacledigest.com/articles/550-million-buyout-paves-way-prosper-gold
Comment by Jeremy — September 14, 2016 @ 3:53 am
just curious are ox and rex the same company or a sub?
Comment by Laddy — September 14, 2016 @ 6:30 am
Different companies, Laddy.
Comment by Jon - BMR — September 14, 2016 @ 6:32 am
thanks jon,looks like the $ and gold are reversing in our favor today,,good..
Comment by Laddy — September 14, 2016 @ 6:36 am
All’s well, Laddy – my hunch is we’re going to get a nice push higher in the final week to 10 days of September, in Gold and the Venture, and there’s no reason it won’t be a strong Q4. The Venture has been going thru some healthy consolidation the last month and that will pave the way for higher prices. There will be no Fed rate hike.
Comment by Jon - BMR — September 14, 2016 @ 6:39 am
CXO – recent company update by SECUTOR Capital Mgmt. http://files.constantcontact.com/dabd1823301/b523d8de-d79d-445c-9fe3-1baa07dd19ec.pdf
Comment by Vepper — September 14, 2016 @ 6:59 am
Leede is hungry for SKE; stepped in with a nice bid this morning. Initial results imminent from Snip. Will be fascinating to see what new tricks this old mine can still perform.
NRN is firming ahead of Ian Bliss’ presentation this afternoon at Precious Metals Summit in Colorado.
Comment by Jon - BMR — September 14, 2016 @ 7:07 am