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1. Gold has traded between $1,572 and $1,584 so far today after yesterday’s non-eventful Fed meeting…as of 7:00 am Pacific the yellow metal is up $2 an ounce at $1,578…Silver has surged 32 cents to $17.84…Copper, in extreme oversold conditions, is off another 3 pennies at $2.55…long-term uptrend support is in the mid-$2.40’s, so now’s certainly the time to be bullish on the metal…Nickel and Zinc are steady at $5.71 and $1.01, respectively…Crude Oil has fallen another 67 cents cents to $52.66 while the U.S. Dollar Index is flat at 97.66…infection from China’s coronavirus has spread to more than 8,100 people globally, surpassing the total from the 2002–2003 SARS epidemic in a fast-spreading health crisis forecast to deal a heavy blow to the world’s 2nd largest economy…this sets up the likelihood of major stimulative measures from China’s Communist government which in turn will help send base metal prices back up…the vast majority of infections are in China where the virus originated in an illegal wildlife market in the city of Wuhan and has also claimed 170 lives, latest official data showed…more than 100 cases have emerged in other countries, from Japan to the United States…the World Health Organization (WHO), which has so far held off declaring the flu-like coronavirus a global emergency, began another meeting in Geneva to reconsider…Secretary of Commerce Wilbur Ross said today that the coronvavirus could actually have a positive impact on the U.S. economy…“I don’t want to talk about a victory lap over a very unfortunate, very malignant disease,” Ross told Fox Business Network…“But the fact is, it does give businesses another thing to consider when they go through their review of their supply chain. I think it will help to accelerate the return of jobs to North America. Some to the U.S., some to Mexico as well” (interestingly he left out Trudeau’s Canada)…meanwhile, a new economic report for the Macdonald-Laurier Institute argues that Canada’s combination of weak economic growth, a reliance on consumer and government spending and a rising debt load makes it particularly vulnerable to a global downturn…
2. The U.S. economy grew 2.1% in the 4th quarter, closing out a year in which GDP decelerated to its slowest pace in 3 years amid a continuing drag in business investment…however, U.S. growth is still far outpacing that of many other countries thanks to regulatory rollbacks and broad-based tax cuts…the GDP increase matched the 3rd quarter and met expectations of economists surveyed by Dow Jones…for the full year, the economy grew 2.3%, below the 2.9% increase from 2018 and the 2.4% gain in 2017, the first year of the Trump presidency, according to the initial estimate released this morning by the Commerce Department…
3. The World Gold Council’s just-released 4th-quarter and full-year demands trend report showed that Gold demand in 2019 declined by 1% to 4,335 tons…while investment demand (ETF buying) rose to record levels last year, physical (consumer) demand sharply declined to a nearly 10-year low due to the yellow metal’s biggest price rise in a decade…central banks, however, continued to be strong net buyers of Gold…the final results of the year showed that 15 central banks bought 650.30 tons of Gold in 2019, just missing 2018’s record of 656.2 tons…the WGC noted that 2019 marked the 10th year central banks were net buyers of Gold, fully reversing the previous decade of net selling…“The fundamental change in mindset towards Gold has resulted in significant and, importantly, sustained levels of demand. During this time, central banks have added 5,019t back to global official Gold reserves, with an annual average of around 500t, compared with average annual net sales of 443t in the preceding decade,” the WGC said…global Gold supply in 2019 increased by 2% mostly because of a sharp increase in recycling…mine production actually declined by 1%…the 4th quarter was a particularly slow period for Gold producers…the WGC said that 4th quarter Gold production dropped 2% to 889.5 tons, compared to the 4th quarter of 2018…
4. No more tools left in his Fisher Price tool box: B.C. Premier John Horgan has finally conceded that the Trans Mountain Pipeline expansion will go ahead after all…B.C.’s anti-Oil NDP government, going against the will of the majority and the law, has been fighting the expansion through multiple court challenges, only to see its reference case quickly defeated in the Supreme Court of Canada…“Personally, I’m not enamored with the prospect of a 7-fold increase in tanker traffic in the Strait of Juan de Fuca and the Salish Sea,” Horgan said yesterday…“But the courts have determined that the project is legitimate and should proceed” (he went on to tell reporters he believes the Wet’suwet’en “hereditary chiefs” should similarly acknowledge the courts have ruled in favour of the Coastal GasLink pipeline to Kitimat)…eco-terrorists/climate change fanatics, some of the same people who helped elect Horgan, are still rallying against the Trans Mountain Pipeline…they are far from backing down…“Amazing how fast ‘we’re going to use all the tools in the toolbox’ turned into ‘we will do one thing with minimal political and legal risk, then throw our arms up in defeat,” Wilderness Committee “campaigner’ Peter McCartney stated on Twitter…“We’ll do it without you, John Horgan. It was never the B.C. NDP that were going to stop this project”…
5. The Dow has fallen 76 points through the first 30 minutes of trading…in Toronto, the TSX has lost 27 points…Balmoral Resources (BAR, TSX) is steady at 45.5 cents after a nice move yesterday as Kirkland Lake Gold’s (KL, TSX, NYSE) friendly buyout of Detour Gold (DGC, TSX) was approved by shareholders of both companies…meanwhile, Balmoral neighbor Wallbridge Mining (WM, TSX) also jumped yesterday on more impressive high-grade Gold results from Fenelon…“A known strike length of 300 to 400 m, uncapped weighted-average Gold grades in excess of 10 g/t per tonne over average core lengths of about 15 m, the approximate 500-m downdip extent identified thus far, and indications from drill holes like FA-20–110 and FA-20–115 highlight the potential for a significant underground resource”…WM is off 1.5 cents at 89.5 cents as of 7:00 am Pacific…the Venture has retreated 1 point to 577…a very strong support band stretches from 570 to 560…Canadian Palladium Resources (BULL, CSE) is preparing for the start of a 10,000-m diamond drilling program on its East Bull Palladium Property following the completion of a $4 million financing, $1.5 million of which was taken by Eric Sprott…the current Inferred resource at East Bull is defined over 1.8 km and drilled down dip (minus 45 degrees) to 125 m…the new program will test the full 3 km length to a depth of 240 m…drilling will commence shortly with the expectation of having core to view at PDAC in early March…
6. Investors betting against Elon Musk’s electric-auto maker Tesla (TSLA, NASDAQ) collectively lost more than $1 billion+ today as the company’s stock rocketed higher after its better-than-expected earnings report…Tesla popped 11.4% to around $650 per share, meaning short sellers betting against the stock are on track to lose well in excess of $1 billion in mark-to-market losses on the day, according to estimates from data firm S3 Analytics…in fact, Tesla short sellers are now down more than $5.2 billion this year in mark-to-market losses after losing $2.89 billion in 2019, S3 said…since the stock’s low of $178.97 on June 3, 2019, Tesla short sellers have covered 19.11 million shares, worth $11.1 billion, and are down $12.43 billion in mark-to-market losses, according to S3′s Ihor Dusaniwsky…the spike in Tesla came after the company reported 4th quarter earnings of $2.14 per share, well ahead of expectations for $1.72 per share…it said it expected positive cash flow and net income on a continuing basis going forward barring 1-time production investments, a relief to those who’d poured cash into the young auto company in recent years…
7. Tim Hortons is plotting a return to its roots as a simple coffee and doughnuts chain, backing away from the frenzied menu experiments that have complicated its kitchens, slowed down its drive-thru and confused its customers…executives from the chain are unveiling their new strategy for 2020 in a series of town hall meetings with franchisees across the country this week…the plan is to remaster the Tim Hortons basics – coffee, baked goods and breakfast – while upgrading its drive-thru and loyalty programs…“While it’s interesting to test in burgers and cereal, it’s not what we’re famous for,” said Duncan Fulton, the Chief Corporate Officer at Tim’s parent company, Restaurant Brands International (QSR, TSX)…QSR has tumbled from an all-time high of $105 last September to the low $80’s…
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Hurray for justice!!!! Horgan has capitulated… now what will turdo do????
Comment by Jeremy — January 30, 2020 @ 10:25 am
Horgan has now made his lawyer buddies enough money now, everyone is now a little richer so it’s time to give up, at the expense of B.C. taxpayers. Nice one ya CLOWN!!!!
Comment by Laddy — January 30, 2020 @ 12:03 pm