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October 20, 2016

BMR Morning Market Musings…

Gold has traded between $1,264 and $1,275 so far today…as of 10:30 am Pacific, bullion is down $2 an ounce at $1,267…Silver has slid 13 cents to $17.52…Copper is off a penny to $2.10…Crude Oil has retreated $1.10 a barrel to $50.50 after hitting a 15-month high while the U.S. Dollar Index has jumped one-third of a point to 98.20

Industry officials say that India’s overseas purchases of Gold likely hit a 9-month high in October as a flip in domestic prices to a premium prompted banks and refiners to resume imports ahead of the festival season…

Meanwhile, Swiss Gold exports to China hit their highest since January last month, Swiss customs data showed today, though a sharp drop in shipments to Hong Kong meant exports to the two combined were sharply lower than a year earlier. “Significantly more Gold was shipped directly to China,” Commerzbank said in a note.  “What is more, Swiss Gold exports to India climbed to their highest level since January, which points to demand recovering there.”

As expected, the European Central Bank left interest ranges unchanged today and maintained the parameters of its 1.74 trillion euro ($1.95 trillion) asset buying scheme…despite question after question from reporters in a Q&A session following the announcement, ECB President Mario Draghi continued to affirm there had been “no discussion” regarding the question of when the bank’s bond-buying program would be extended or even wound down (it was set up to continue to March 2017)…

BHP Billiton Talks About “Gender” Targets

BHP Billiton (BHP, NYSE) wants women to account for half of its workforce by 2025 as the world’s top miner seeks to change the gender balance in an industry dominated by men…

The company isn’t “as inclusive or diverse as we could be,” CEO Andrew Mackenzie said in a statement today…BHP has a workforce of about 65,000, including contractors, of which 18% are female…based on these numbers, its target would mean an additional 21,000 women employed by the middle of the next decade including both its own staff and contractors, according to Bloomberg calculations…

Debates Over, Election Less Than 3 Weeks Away

Chris Wallace of Fox News put in a star performance as last night’s debate moderator, keeping Hillary Clinton and Donald Trump focused on the substantive issues of the November 8th election, though it boggles the mind that the very last question of the 3 debates was on the U.S. national debt…few people seem to care anymore if governments rack up debt (rising interest rates over time would change the national conversation dramatically), and we also have great examples of that in Canada…

Trump, the consummate anti-politician, generally handled himself well against the tightly scripted and very polished Hillary Clinton last night but nonetheless failed to expand his base…strangely, he also opened a can of worms and gave the mainstream media the headline for the evening when he refused to commit to accepting the outcome of the election – then he actually doubled down on that mistake morning…a win for Clinton is now clearly predicted by the polls and her many allies in the media, and it’s hard to imagine even what the unpredictable Trump can do to alter the dynamics over the next 19 days…elections are like stocks and commodities, and Trump’s momentum has eroded since the first debate when he had his best chance to make a powerful impression with the voters…

If Clinton wins big, which seems increasingly likely, it’s possible she may also take the Senate and the House with her – a scenario that would likely be very Gold-bullish as it was when Obama completed a sweep in 2008 (and Jimmy Carter previously in 1976)…

In the midst of a disgusting campaign, pulled into the gutter by much of the liberal media aiming to distract the voters from the real issues facing America, it’s time for a lighthearted moment (and perhaps a Scotties’ tissue)…

Below is a billboard ad we saw yesterday in Vancouver…

hillary-donald

Gold Short-Term Chart

For momentum purposes, the first key area Gold needs to push into is the $1,270’s which would put the metal above both Fib. resistance ($1,268) and its 200-day moving average (SMA) at $1,265…RSI(14) has emerged out of oversold conditions after strong support held at $1,242

It’s obvious that physical buying has picked up to support prices, and it seems to us that the physical market would prevent Gold from dropping below $1,200 should that key level be tested…there’s also no evidence in the Venture’s behavior that Gold is in any danger of falling through the $1,200 floor, let alone the low $1,240’s support…

That makes this an attractive time to be “picking away” at high quality beaten-down Gold and Silver stocks…

gold-oct-20

In Today’s Morning Musings

1. The ebb and flow of BLO

2. Three opportunities under a nickel – plant the seeds!…

3. The coming Cobalt rush…

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…

7 Comments

  1. Jon, don’t always agree with your political comments but totally agree with your comments about debt. It is mind boggling that it was the last question. I guess it’s not a sexy enough issue for the media but at some point it will grab people’s attention and grab it very hard unfortunately.

    Comment by Danny — October 20, 2016 @ 11:02 am

  2. Debt will eventually become a sexy issue, Danny, when all hell breaks loose, which is why it’s so important to hold some physical Gold and/or Gold/Silver stocks. No matter who wins November 8, U.S. deficits and debt are both going up——a Democratic controlled Congress makes it even worse, like a flame to gasoline with all their spending initiatives and Sanders and others pulling the party to the far left, but the Republicans have certainly contributed their share of this problem over the years (and Trump calls himself the King of Debt)…what a bloody mess the U.S. is in, and we’re not any better in Canada…

    Comment by Jon - BMR — October 20, 2016 @ 1:16 pm

  3. This is what can happen when u trigger an acceleration clause on warrants…

    DYNACERT CORPORATE UPDATE

    DynaCERT Inc. wishes to confirm that the company’s management is unaware of any material change in the company’s operations that would account for the recent increase in market activity and drop in share price.

    Notification was given to all warrantholders that an acceleration clause was triggered upon the share price of DynaCERT trading at 30 cents and 50 cents or above for 10 days. This affects two sets of warrants, one being exercisable at a price of 15 cents and the other at 25 cents per common share. The company, as of this date, has received $595,823 in gross proceeds upon exercise of 3,972,150 warrants.

    The reception and luncheon were held at the Queen’s Park Ontario Legislature Building yesterday, where the company unveiled its innovative HydraGen unit. The event was well received by the members of provincial parliament (MPPs), including several ministers, investment advisers and bankers who were present. The company is pleased to have been supported by Dr. Qaadri, MPP, who was also present at the event.

    We seek Safe Harbor.

    Comment by Jon - BMR — October 20, 2016 @ 1:23 pm

  4. #2. Regarding the national debt.. HC said last night .. she won’t increase the national debt.. not even ONE..penny!!! She promised!!!!!

    Comment by GregJ. — October 20, 2016 @ 2:34 pm

  5. Yes, we all know about Hillary…also sounds like JT and his $10 billion deficit limit promise that totally blew up. Funny how those things happen. Anyway, one thing we will all be thankful at some point—-the actions of these politicians will ultimately spark Gold higher than we can imagine. Through the roof.

    Comment by Jon - BMR — October 20, 2016 @ 2:49 pm

  6. According to Barclays, companies are on track to spend a record $1 trillion dollars on share buybacks and dividends in 2016. This is what is driving the market along with monetary policy (both of which are completely unsustainable). This is a recipe for disaster.

    Comment by Sameer — October 21, 2016 @ 6:27 am

  7. mms.v news out today on the move

    Comment by kelly — October 21, 2016 @ 6:51 am

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