Check back later today for Daniel’s Den and visit the BMR comments section throughout the day for updates and helpful information.
1. Gold has traded between $1,309 and $1,319 so far today ahead of the start of a Fed meeting tomorrow…as of 7:00 am Pacific, bullion is down $7 an ounce at $1,312…nearest support levels are $1,320 and $1,300…the pullback is not surprising after a terror attack in London, another North Korean missile launch and some disappointing U.S. economic data weren’t able to push Gold higher Friday…in addition, some technical selling was encouraged on a drop below $1,320 which represents support on an upsloping channel going back to mid-July…either the yellow metal reclaims that area by the end of the trading day or soon tests $1,300…Silver has slid 20 cents to $17.34 but should find strong support between $17 and $16.50…Copper is up slightly at $2.94…Nickel has added 4 cents to $5.06…Crude Oil is off 17 cents at $49.72 while the U.S. Dollar Index has fallen one-tenth of a point to 91.85…the U.S. Ambassador to the United Nations, Nikki Haley, said yesterday that the U.N. Security Council has run out of options in terms of containing North Korea’s nuclear program and the United States may have to turn the matter over to the Pentagon…President Trump addresses the U.N. tomorrow…
2. Global debt may be under-reported by around $13 trillion because traditional accounting practices exclude foreign exchange derivatives used to hedge international trade and foreign currency bonds, Bank for International Settlements researches said yesterday…they added it was hard to assess the risk this “missing” debt poses, but that the main worry was a liquidity crunch like the one that seized FX swap and forwards markets during the financial crisis…the $13 trillion unaccounted-for exposure exceeds the on-balance-sheet debt of $10.7 trillion that data shows was owed by firms and governments outside the United States as of the end March…
3. The key event for the markets this week is expected to be the Fed meeting tomorrow and Wednesday…besides its comments on inflation and the potential economic impact of Hurricanes Harvey and Irma, the market will be watching to see what the Fed does with its forecasts for interest rates…the Fed presents its forecast in a “dot plot” or chart with each Fed member’s forecast appearing as an anonymous dot…the Fed interest rate forecast currently shows 1 more rate hike this year and 3 next year, while market expectations are barely for 1…after a surprising jump in consumer prices last month, the market’s view of whether the Fed could raise rates this year changed with now near 50% odds being given for a December interest rate increase…just over a week ago, that number was closer to 20%…Goldman Sachs’ economists see a 60% chance of another hike this year, even after the estimated $100 billion in damage from the hurricanes…they note that the Fed kept its growth forecasts unchanged following Hurricane Katrina and continued on a rate hiking cycle…meanwhile, the Fed is expected to start slowly trimming its $4.5 trillion balance sheet but that announcement has been widely anticipated…
4. Fresh record highs on Wall Street this morning, thanks in part to a big deal in the defense sector…the Dow is up 59 points at 22,328 as of 7:00 am Pacific…the TSX has gained 43 points while the Venture is 2 points lower at 778…after completing a due diligence review, Cobalt Power Group (CPO, TSX-V) says it’s proceeding with the acquisition of privately-held Canadian Cobalt Projects Inc. for a whopping 30 million shares which will increase CPO’s share count by 50%…the deal will quadruple the size of CPO’s land package in the northern Ontario Cobalt Camp to 85 sq. km but at the cost of significant dilution…
5. Interesting (and positive) news from First Cobalt (FCC, TSX-V) this morning with the company stating that it has elected not to complete the acquisition of 7 Cobalt properties in the Congo announced May 1 and will instead focus its efforts on the northern Ontario Cobalt Camp…FCC’s previously announced mergers with Cobalt One and CobalTech Mining will be completed later this year, resulting in a combined land position of more than 100 sq. km in the Cobalt Camp containing approximately 50 past producers and mine workings…the company added that the high number of advanced exploration targets ready for immediate work in the Cobalt Camp greatly offsets the potential in the DRC properties at this time…First Cobalt says it may evaluate Cobalt opportunities elsewhere in the future if they align with the company’s overall strategy to offer investors leveraged access to the growing Cobalt market…
6. GT Gold (GTT, TSX-V), which was commanding a market cap in excess of $200 million and touched key measured Fib. resistance at $2.65 last week, corrected this morning after releasing more drill results from its Tatogga Property in the Red Chris district…the numbers were solid but the market generally prefers mystery over history…highlights included 20.7 m grading 5.8 g/t Au (hole 14), 23.6 m @ 5.1 g/t Au (hole 10), and 9 m @ 7.5 g/t Au and 37.2 g/t Ag (hole 16)…the company says aggregate estimated true widths of the significant intercepts announced for all Saddle South core holes reported to date average 11.1 m per hole with a corresponding average grade of 11.8 g/t Au…intercepts have now been achieved to 500 m down-dip from surface, a significant increase from the 330 m down-dip reported August 31…drilling has also extended the strike length to 360 m east-west and further extension is anticipated…the discovery remains open east, west and to depth…assays are pending for about 3 dozen more diamond drill holes from Saddle South…expansion drilling is ongoing with 2 drills…
7. Tinka Resources (TK, TSX-V) released results this morning from 9 additional step-out holes at its Ayawilca Zinc Project in Peru, highlighted by Hole A17–089 which returned 10.8 m grading 16.7% Zinc from 218.6 m depth…the company also says it intends to update the Ayawilca Zinc resource on completion of 2 holes now in progress at South Ayawilca (including sampling and assaying) witresource update is expected to be completed by early November…after shooting as high as 78 cents this year, TK has retreated toward its rising 200-day moving average (SMA), currently at 52 cents…
Two Big Plays Emerge in B.C., Setting The Stage For A Summer To Remember
How To Bring A Junior Resource Market To Life!
Northern Ontario Cobalt Junior Attracts Interest From Metal Trading Companies
The Most Important Venture Development Since The New Bull Market Began
