Gold has traded between $1,316 and $1,329 so far today…as of 10:00 am Pacific, bullion has come under some mild pressure and is down $3 an ounce at $1,317 after a strong rebound in shares of troubled Deutsche Bank…Silver is off its highs but still up 9 cents at $19.19…Copper has added a penny to $2.20…Crude Oil is up 27 cents at $48.10 while the U.S. Dollar Index is flat at 95.54…
UBS remains upbeat on Gold even if the Federal Reserve hikes interest rates yet this year, commenting that the key is “real” rates rather than nominal rates…real rates, of course, refer to the percentage return a saver or investor receives after allowing for inflation…
“In our view, what ultimately matters for Gold are real rather than nominal yields,” UBS says. “Inflation, inflation expectations and the market’s perception on whether the Fed is behind or ahead of the curve therefore need to be taken into account. While we expect the Fed to hike rates in December, we continue to think U.S. long-end real yields have room to fall further, supporting our positive Gold view.”
Economic Data Disappoints
U.S. consumer spending in August turned in the weakest performance in 5 months, reflecting a drop in spending on autos…income growth also slowed in August as wages and salary gains were smaller following 4 strong months…the Commerce Department said this morning that consumer spending was unchanged last month after solid gains of 0.4% in July and 0.3% in June…it was the poorest showing since a flat reading in March…meanwhile, personal incomes rose just 0.2% last month, just half the gain in July…that was the weakest income performance since a 0.1% drop in February…wages and salaries, the biggest income category, were up just 0.1% after 2 months of 0.5% increases…ideal conditions for a Fed hike?…not exactly…
Oil Update
It’s hard not to be bullish about Oil when the Saudis decide it’s time to put the brakes on some production in order to support prices, while the chart shows a classic bullish inverted head-and-shoulders pattern…
High quality Oil stocks are one way to play a potential 50% jump in Oil prices over the next 12 months (after a breakout above the neckline on this chart, Crude could easily find its way into the $70’s)…
Over the past year, our ETF recommended trades have been 100% accurate and it will soon be time to get positioned again in the HOU…stay tuned for that…
In Today’s Morning Musings…
1. One of the best-financed Oil stocks on the planet that should be in everyone’s portfolio as it nears a breakout…
2. Cannabix Technologies (BLO, CSE) enjoys another powerful Friday and hits a new 5-month high…
3. Daniel’s Den – Orca Gold (ORG, TSX-V) is about to market itself much more aggressively…
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…
So rumors of Deutsche Bank saving a few billion trumps weak economic data? knocking $15 off Gold. Atlanta Fed lowered Q3 GDP to 2.4%. Down from a high of 3.8%.
Comment by Daniel — September 30, 2016 @ 9:33 am
Jon I know you have said a recession is possible in 2017 and I definately agree. But what are the charts showing and what is your outlook on US equities in Q4?
Comment by Sameer — September 30, 2016 @ 9:39 am
So what are some stock prospects for us at this point over the next 3 to 6 months? Hard to keep track.
thanks
Comment by omega — September 30, 2016 @ 11:06 am
EFR – interesting to see that the bd, which is big Cdn pockets incl a lot of the Dundee group went to the US to finance that, below market and with 5 year wts, which shouldn’t be allowed (particularly in this case). Be interested to see who took it down, but we wont likely see who as they hide in the US accounts.
Comment by david — September 30, 2016 @ 12:43 pm
I bought 52,000 shares of CLE at .07 today thinking it must be close to bottom and realizing it will likely be a 3 – 6 month hold.
Comment by Danny — September 30, 2016 @ 1:05 pm
Hello guys,
Wonder what you guys think of Bayhorse Silver.
In my humble opinion it is one of the most promising opportunities
Right know. Massive amounts of Silver, neartime production,
Unbelievable exploration upside, very tightly held and at a
Market cap to laugh at. Anyone care to share their thoughts!
Comment by Tran — September 30, 2016 @ 11:05 pm
Jon have you sold your shares in GGI?
Comment by DavidW — October 1, 2016 @ 4:50 am
No, DavidW, I’ve maintained my position in GGI this year and added some more recently at 7.5.
Comment by Jon - BMR — October 1, 2016 @ 5:47 am
Tran, I like Bayhorse and own it, of course the price of silver will have a lot to do with how it does.
Comment by Danny — October 1, 2016 @ 8:03 am
Thanks Dan. It’s a matter of time before the price of Silver Will skyrocket.
Listened to an interview with Pierre Lasonde at KWN. He pinpointed the
Catalysts gold and Silver Will have ( US elections, Italian stand of and the ever
Returning Greeks) . Perfect storm If you ask me!!!
Comment by Tran — October 1, 2016 @ 10:37 am
That makes me feel better Jon
Comment by DavidW — October 1, 2016 @ 2:44 pm
I strongly suspect we’re going to see some action this month, DavidW, because the properties are simply too good. Something is going to click, and soon.
Comment by Jon - BMR — October 1, 2016 @ 3:03 pm
CLE – the bids finally started to build at .06. It went 2 weeks with no bid support. RSI approaching 30, one to watch for a rebound here.
MOX – eye on her, may make a new high this week.
BHS is an excellent choice and I also like AAN
If anyone is into the buy low, sell high game, you can look at OX, SHL, GDM, and SEK, although SEK management has not been up front with some things. just a couple possibles for the second inning of the bull market.
Comment by dave — October 1, 2016 @ 6:20 pm