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1. Gold has traded between $1,464 and $1,474 so far today…as of 7:00 am Pacific, the yellow metal is up $1 an ounce at $1,465 as it continues to consolidate above important support at $1,450…Silver is off 2 pennies at $17.06…Nickel has climbed 9 cents to $6.61…Copper is up 2 pennies at $2.65 while Zinc and Cobalt are both unchanged at $1.06 and $16.10, respectively…Crude Oil has retreated 30 cents a barrel to $58.28 while the Dollar Index is flat at 98.02…The Bank of Canada predicts that trade battles will leave lasting scars on the global economy, including the permanent loss of more than $1 trillion in output by 2021…Bank of Canada Governor Stephen Poloz said yesterday that certain policies that have been put in place “will have permanent effects.  We think by the end of next year we will have lost over a trillion dollars globally in output,” he stated during a fireside chat at an Ontario Securities Commission conference in Toronto…”And that’s gone forever”…all the more reason dysfunctional and “progressive” Canada needs to get its own act together by removing inter-provincial trade barriers and addressing over-regulation, high taxation, poor productivity, a deteriorating investment climate, and the huge problem of resources that can’t get to market…U.S. imports from mainland China shrunk 13.4% year-on-year through the first 3 quarters of 2019, according to IHS Markit, but Vietnam is replacing some of that lost trade…in the first 9 months of 2019, U.S. imports from Vietnam jumped 34.8%, accelerating from a 5.8% gain in all of 2018…Vietnam’s fastest growing export categories to the U.S. are computers, telephone equipment and other machinery…U.S. consumer sentiment, which drives two-thirds of the economy, beat expectations in November, according to data released moments ago by the University of Michigan…the university’s index of consumer sentiment climbed to 96.8 from 95.5 last month…

2. U.S. equity markets opened higher this morning on news that Chinese President Xi Jinping called for Beijing and Washington to strengthen, prompting cautious optimism that negotiations between the world’s 2 biggest economies may advance…the U.S. and China are a critical juncture and should avoid misunderstandings while pushing relations in the “right direction”, Xi said today during a meeting with former Secretary of State Henry Kissinger, according to state media…China’s top leader also said his country has “been working actively to try not to have a trade war”, according to reports from Reuters and Bloomberg News on comments made at a forum in Beijing…China wants to work toward an initial deal on the basis of “mutual respect and equality”, he said, in a rare set of remarks about the trade negotiations…investors are reconciling themselves to an accord not materializing by the end of 2019 after conflicting signals on the progress of the negotiations this week dampened market sentiment and weighed on global stocks…more U.S. tariffs are scheduled to take effect December 15…

3. How ironic – Quebec, the self-proclaimed “green” state, is starting to panic at the realization it may run out of a fossil fuel in less than a week…the ongoing strike at Canadian National Railway is choking off the province’s supply of propane, creating an “emergency” situation for hospitals, farms and nursing homes, Premier Francois Legault said…Quebec’s dwindling propane reserve, 85% of which is supplied by rail, comes as the work stoppage by 3,200 CN conductors, train and yard workers continues…speaking to reporters in Quebec City, Legault urged the Trudeau government to “accelerate negotiations” between the Teamsters union and the company and if necessary, to pass back-to-work legislation ahead of Parliament’s return on December 5…“What I’m saying is we cannot afford a strike for many days,” Legault said…“So I think we have to be open to a special law.  So I am asking the opposition parties in Ottawa to support Mr. Trudeau if we cannot conclude an agreement with the union soon”…just a week ago, Bloc Quebecois Leader Yves-Francois Blanchet, a separatist, socialist and naive Oil Demand Denier, continued to sow the seeds of Western alienation with this comment: “If they were attempting to create a green state in Western Canada, I might be tempted to help them.  If they are trying to create an Oil state in western Canada, they cannot expect any help from us”…the reality of Blanchet’s imaginary Quebec is that it is as much an Oil and fossil fuel state as Alberta – it just pretends to be “pure”, lets others produce, and eagerly takes welfare from Alberta’s Oil riches in the form of equalization payments…torrents of Oil pour into Quebec every day, much of it coming up the St. Lawrence in tankers, the same kind of tankers that are banned by lefty Trudeau from taking Alberta Oil off the north coast of British Columbia…Quebec’s biggest source of Oil is the Alberta Oil sands…it travels to refineries in Montreal via a long tube known as a pipeline…

4. The Dow is up 65 points through the first 30 minutes of trading…Bridgewater Associates LP, a hedge fund founded by billionaire Ray Dalio, has bet more than $1 billion that stock markets around the world will fall by March, the Wall Street Journal reported this morning…Bridgewater could be right, but that would likely also mean significantly higher precious metal prices…in Toronto, the TSX is 29 points lower…the Venture, continuing to trade within a 540 to 520 support band, is off a point at 528…Canada Cobalt (CCW, TSX-V), on the verge of closing a game-changing deal to acquire the PolyMet facility in Cobalt, has touched a new 8-month high of 43 cents…the stock continues to show strong momentum entering a 2nd major new drill program at the Castle Property, following up on a 3.1 m drill intersection (core length) grading nearly 200 oz/ton at a vertical depth of about 400 m within 2 km of 3 past producing Silver mines that historically churned out 70 million ounces of the metal…Benchmark Metals (BNCH, TSX-V) is up a nickel at 33 cents in early trading after announcing that it has cut 30.2 g/t Au and 1,361 g/t Ag over 2.95 m core length in the Amethyst Gold Breccia (AGB) zone at its Lawyers Gold Project in north-central British Columbia…that intersection started 230 m downhole…higher up in the hole, drilling cut 42.1 m grading 1.1 g/t Au and 41.6 g/t Ag…CEO John Williamson stated, “Drilling at AGB continues to yield fantastic results below and along strike from the historical mining.  Our drilling is demonstrating strong continuity of the mineralizing system beyond its previously known extents and identifying historically unrecognized bulk-tonnage potential, representing a significant opportunity to add Gold and Silver ounces to the Lawyers Project”…

5. More solid results from Skeena Resources (SKE, TSX-V) from ongoing drilling at Eskay Creek including 9.1 g/t Au and 348 g/t Ag over 9.8 m (SK-19–070), 6.1 g/t Au and 72 g/t Ag over 15.8 m (SK-19–099), and 9.9 g/t Au and 737 g/t Ag over 17 m (SK-19–139) including 171.5 g/t Au and 12,320 g/t Ag over 0.83 m…3 surface drill rigs are being used for this program in the 21A, 21E and hangingwall (HW) zones to infill and upgrade areas of Inferred resources to the Indicated classification…meanwhile, the lower mudstone horizon at Eskay continues to develop…the latest testing of this important unit has again intersected additional mineralization below the 21A zone…drill hole SK-19–068 intersected a wide interval of lower mudstone, with mineralization averaging 7.5 g/t Au and 11 g/t Ag over 3.7 m, including 17 g/t Au and 18 g/t Ag over 1 m…this interval occurs approximately 30 m north of previously reported drill hole SK-19–063 which averaged 313 g/t Au and 95 g/t Ag over 2.2 m including an individual sample with considerable visible Gold grading 1,380 g/t and 322 g/t Ag over 0.5 m (core lengths, 80% to 100% true thickness)…this secondary and less explored mineralized mudstone horizon could ultimately prove to be quite significant.  The lower mudstone is regionally extensive and averages 5 to 15 m in true thickness…it is situated approximately 100 m below the Eskay Creek deposits and has been traced by historical drilling for over 5,000 m along strike…

6. Choosing to go long Gold after the precious metal settles at a solid support level will pay off next year, according to TD Securities…even though the metal can weaken to as low as $1,425 in the short-term, the long-term picture is looking very supportive of prices reaching the $1,650 level, TD says in its 2020 outlook…“Our analysis still shows that $1,650/oz Gold next year is in the cards, once the weak longs get shaken out and as modest global growth assure a low rate environment and continued Fed monetary accommodation,” the bank’s strategists said…Gold’s major rebound will come in the 2nd quarter of next year, according to TD (historically, Q1 is Gold’s strongest quarter), triggered by further Federal Reserve easing, slower economic growth, and central bank Gold buying…“The likelihood that the Fed will deliver more monetary accommodation, central banks will continue to buy Gold at a record clip and investors demand in the metal to hedge against equity market volatility, weaker U.S. dollar and negative interest rates are all factors making us ready to go long – once the yellow metal firmly settles at technical support levels,” the strategists said…the bank’s outlook projects that the Fed will cut rates twice by mid-2020 in moves that will be mirrored by the European Central Bank…“U.S. economic numbers are likely to print quite weak in the coming months.  This should prompt markets to once again price in more Fed cuts.  Weaker U.S. growth should continue to keep fiscal deficits elevated.  This along with the potential of a Democratic win next election season implies that markets will worry about monetization via a modern monetary theory framework, which typically is remedied by Gold as a hedge”, TD concluded…

7.  The U.S. House Judiciary Committee approved a bill Wednesday that legalizes marijuana on the federal level, removing it from Schedule 1 of the Controlled Substances Act…the legislation, which passed 24 to 10, has a high chance of approval in the full House where Democrats control the chamber with 234 seats…it’s likely to face a tougher battle in the Republican-controlled Senate where Majority Leader Mitch McConnell opposes marijuana legalization…the legislation allows states to enact their own policies and gives them incentives to clear criminal records of people with low-level marijuana offences…it also includes a 5% tax on cannabis products that would provide job training and legal assistance to those hit hardest by the war on drugs…according to the American Civil Liberties Union, marijuana arrests account for more than half of all drug arrests in the United States…lawmakers on Wednesday repeatedly cited the disproportionate impact drug laws have had on communities of color, saying that decriminalizing marijuana helps alleviate some of that imbalance…

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