Gold has traded between $1,089 and $1,100 so far today, ahead of the Fed policy decision…as of 9:30 am Pacific, bullion is flat at $1,095…Silver is up 12 cents at $14.81…Copper is off a penny at $2.39…Crude Oil has reversed higher after government data showed U.S. Crude stockpiles declined far more than expected last week…the EIA reported that inventories fell by 4.2 million barrels in the last week, more than 20 times analysts’ expectations for a decrease of 184,000 barrels….Crude stocks at the Cushing, Oklahoma, delivery hub fell by 212,000 barrels…WTIC is up $1.02 a barrel to $49.00…the U.S. Dollar Index has added one-fifth of a point to 96.86…
There are indications of physical demand for Gold starting to develop and support the market, says UBS…
“Volumes are not necessarily exceptional, but the fact that it’s around should offer some reassurance to Gold longs and perhaps encourage shorts to lock in some of their profits,” the bank says. “Among Gold’s physical markets, the usual candidates have stepped up to the plate, with the exception of China, where appetite has remained lackluster for now. Interestingly, demand out of the U.S. – an unlikely contender – has actually been better than expected.”
U.S. Mint Gold coin sales in July are nearly 4 times as much as the historical average, according to UBS…
Fed Day – Fresh Policy Statement At 11:00 Am Pacific
Just 1 of several things to watch for from the Fed today – officials have said they want to be “reasonably confident” inflation will rise to their 2% annual target before raising rates…look for possible changes from June’s policy statement for insight on their thinking…last month, the statement said “energy prices appear to have stabilized”, but evidence is mounting that a fresh slide has started despite today’s bounce…the recovery in Crude prices from March into June had all the earmarks of a major relief rally with another downturn likely, so it’ll be interesting to see how the Fed addresses that issue today…
Fed funds futures, financial instruments the market uses to handicap rate hikes, are currently pointing to the first rate hike in December…
The latest CNBC Fed Survey still shows a majority expecting a September rate hike, but that majority is rapidly shrinking…
“Downside Global Risks”: Legarde
In a new conference today, as reported by Reuters, International Monetary Fund Managing Director Christine Legarde said global risks are on the horizon….
“If I look at the global economy as it stands at the moment, we have a situation where growth is a little bit tepid,” she stated. “We have recovery, but it’s fragile, it’s unbalanced, and there are some downside risks on the horizon.”
Legarde highlighted some positive growth in low-income countries, but she also noted a slowdown in growth in countries like China…the euro zone, she said, is “beginning to turn the corner” despite Greece worries…
Copper 20-Year Monthly Chart
Copper is at a highly critical point, resting at both the bottom of a downsloping flag and an uptrend line going to the start of the bull market more than 13 years ago…
If it breaks below this key area, watch out…the drop could be severe…
U.S. Dollar Index Updated Chart
We’ve maintained for the last few months that the U.S. Dollar Index has already put it its highs for 2015 with a head-and-shoulders double top in March-April…
Since touching Fib. support at 93 in mid-June, the Dollar Index has rallied back to resistance in the high 90’s before easing off again recently…further technical deterioration will occur if RSI(14) on this 9-month daily chart falls below the uptrend line as shown below…
SS is moving lower from a bearish “M”, and the ADX indicator is at the point of a bearish DI cross…will the dollar weaken and Gold strengthen through the balance of the week following the Fed statement?…
Today’s Equity Markets
Asia
China’s Shanghai Composite snapped a 3-session losing skid with a gain of 127 points or 3.5% overnight as the aptly named “rescue squad” continued its efforts to prop up the market…local governments are increasing purchases of stocks, as confirmed by the China Securities Regulatory Commission, while the central bank injected $8 billion (U.S.) cash into money markets yesterday and hinted at further monetary easing…we can only guess the Chinese study Fib. analysis, too…they’re determined to not let the Shanghai dip below key Fib. support at 3400, and they have a large war chest – nearly $4 trillion in foreign reserves – to dip into…
Nonetheless, foreign investors have become quite nervous..China equity ETFs suffered outflows on 14 of 17 trading days in July, totaling $1.1 billion, or 5.9% of assets, according to research firm TrimTrabs in a statement released yesterday…despite the government support, many high-profile foreign investors have become more pessimistic on China, citing asset value depreciation, psychological damage, capital outflows, and poor July industrial profits growth and manufacturing data…
Chris Berry of discoveryinvesting.com noted this morning, “China’s debt-to-GDP ration stands at roughly 282% according to McKinsey and has grown at a 19% CAGR (compound annual growth rate) since 2007. It is highly unlikely that the Chinese economy has grown as much during the same time period. When debt grows faster than income, sooner or later a problem arises as additional credit loses its ability to generate growth. It would appear Xi Jinping and China’s leaders are faced with the issue of generating growth in a macro deflationary environment.”
Tokyo’s Nikkei rose modestly on the back of better than expected retail sales…they rose an annual 0.9% for June, topping expectations for a 0.50% gain, but still slowing sharply from a 3% spike in the previous month…
Europe
European markets were up moderately today following some strong earnings reports…
North America
The Dow is enjoying another triple digit gain today, up 105 points as of 9:30 am Pacific after a 189-point advance yesterday…in Toronto, the TSX has shot up 125 points while the Venture has reversed from an intra-day low of 580 and is now unchanged at 587…Pure Energy Minerals (PE, TSX-V) is showing signs of breaking out above an ascending triangle (see John’s chart yesterday) following a maiden resource estimate for its Clayton Valley Lithium Brine Project in Nevada…PE is up 4.5 cents at 32.5 cents on strong volume as of 9:30 am Pacific…
Venture Updated Chart
Interesting chart…extreme oversold conditions are very evident in this Venture 7-month daily, and this morning the Index touched Fib. 580 support and then quickly started to rebound…this could mark the start of a rally but there must be follow-through the rest of the week…
New Gold Inc. (NGD, TSX) Update
Many producers have taken a big hit this year, and New Gold (NGD, TSX) is no exception…about half of the NGD short position from late last year has been covered…probably a wise move…will the rest of the shorts scramble to cover if Gold doesn’t do as they expect in the near future?
NGD has fallen slightly below the bottom of its downsloping flag…a false breakdown, perhaps?…we’re about to find out…NGD has strong support at $2.50 and fell as low as $2.65 last week…
NGD is up 8 cents at $2.80 as of 9:30 am Pacific…
Yamana Gold Inc. (YRI, TSX) Update
Yamana Gold (YRI, TSX) is another producer that has suffered…a huge gap has opened between the current share price and YRI’s long-term downtrend line…while technical conditions could still worsen somewhat, dumping at these levels has to be considered as risky as piling in at overbought extremes…
YRI is off 3 cents at $2.55 as of 9:30 am Pacific…
Defiance Silver (DEF, TSX-V) Update
Defiance Silver (DEF, TSX-V) has held up relatively well this year vs. its junior peers while enjoying some drilling success that should expand its San Acacio Silver deposit in the historic Zacatecas district in Mexico…yesterday, the company announced the start of another drill program (1,500 m) that will attempt to build upon the recent discovery of significant Silver and base metal mineralization below the limits of the current resource…
Strong technical support at the rising 200-day moving average (SMA) at 12 cents…
DEF is unchanged at 13.5 cents as of 9:30 am Pacific…
Note: Terry, John and Jon do not hold share positions in PE, NGD, YRI or DEF.
Any thoughts on PHM.V and CXV.V ? Thanks.
Comment by BigRig — July 29, 2015 @ 10:33 am
all indices are green today except for the Venture. Anyone surprised?
Comment by tony T — July 29, 2015 @ 10:45 am
got a response to one of my many emails:
Thank you for your e-mail dated Thursday, July 16, 2015, concerning demonstrations by Tahltan Nation members in Sheslay, British Columbia.
Given that the issues you raise are operational in nature, and considering that the province of British Columbia has contracted the Royal Canadian Mounted Police (RCMP) to serve as the province’s police service, I am forwarding your correspondence to Deputy Commissioner Craig Callens, RCMP Commanding Officer of British Columbia, for his consideration.
Thank you for your correspondence on this matter.
Regards,
Kathy Thompson
Assistant Deputy Minister
Community Safety and Countering Crime Branch
Public Safety Canada
Comment by Sam — July 29, 2015 @ 12:05 pm
bigrig, wondering the same thing, PHM and CXV getting crushed lately
Comment by Sam — July 29, 2015 @ 12:07 pm
Sam – I guess your just getting one hand passing the buck in the Shelsay district. Typical Government.
Phm would have been a good day trade if you timed the bottom today. I was gone all day.
Another good day on EQT.
Comment by dave — July 29, 2015 @ 1:54 pm
CXV same thing, 2 big down days, usually when you see that its good for a day trade on the second day. If you look at LAB chart they only had one big swoosh down day. CXV and PHM had 2 in a row. Wish I would have been home.
Comment by dave — July 29, 2015 @ 2:02 pm
New press on the Shelslay Saga with a 3 min+ audio clip. They contacted DBV and Taku River Tlingit First Nation but both declined to be interviewed.
Read at KFSK Community Radio website… “B.C. tribal protest stops mine exploration, for now” …
Comment by D4 — July 29, 2015 @ 2:18 pm
Hello Sam,
got the same answer today from ADM-public safety.
Richard
Comment by Richard_MTL — July 29, 2015 @ 3:34 pm
D4, can’t help but chuckle at the mainstream media’s coverage of this. Anyhow, we have another bombshell to drop very shortly that will show yet again who’s really on top of this story. Stay tuned.
Comment by Jon - BMR — July 29, 2015 @ 4:00 pm
Interesting Jon, can’t wait to see it.
Comment by dave — July 29, 2015 @ 4:40 pm
Copper producers such as Antofagasta and Freeport-McMoRan are cutting production to reduce costs. Copper miners are under serious pressure. Copper could see a severe drop due to weakening Chinese demand, but IMO it would be followed by quite a rally. The bears are betting on a surplus but IMO we could see weak supply meeting weak demand.
Related to the copper price; I’m unsure what to think about the Chinese debt pile equaling 282% of GDP (USA debt pile amounts to 331% of GDP), as Chinese household and government debt are fairly low. Does that mean the Chinese Central bank is going to pump trillions into its markets and economy? Beijing doesn’t want to lose face at all costs so.
Thanks for the Sheslay updates Jon!
Comment by Concerned Citizen — July 29, 2015 @ 4:42 pm
Very anxious to see this bombshell !
Comment by Guy Delisle — July 29, 2015 @ 4:51 pm
I prefer hearing from DBV that all is resolved and the the rigs are turning.
In the meantime, bombshells will do…..lol
Comment by D4 — July 29, 2015 @ 5:17 pm
pure energy symbol PE the insiders are talking 22 million tons at 6500 dollars a ton ..it traded 3 million shares after the news and the office is buisy for the next big news coming next week do not miss i am hearing a price tag of $1.25 all day long ,,my opinion only,
Comment by tony roma — July 29, 2015 @ 5:22 pm
Every where I read, I am hearing the same thing about copper crashing in price. It was brought up at the Sprott Stansberry conference in Vancouver. Be interesting to see the rest of 2015 in that metal. They say Uranium and Nickel set to go up. Time will tell if they are right.
Comment by dave — July 29, 2015 @ 6:02 pm
Many on this bb have talked about the Tahltan incident being good publicity putting DBV in the world spotlight , so far it has done nothing and I’m surprised it hasn’t attracted a bunch of environmental groups to the area. It’s time for a news release from DBV .
Comment by Les — July 29, 2015 @ 6:13 pm
Les, the “Tahltan incident”? This is much more than just a “Tahltan incident”. The full story hasn’t even come out yet, and DBV will get back to drilling IMHO, so get ready for the real show to begin.
Comment by Jon - BMR — July 29, 2015 @ 6:36 pm
I seem to see an optimistic wind from BMR
Comment by Guy Delisle — July 29, 2015 @ 6:58 pm
Jon , bring on the bomb shell we need all this out in the open.
Comment by Les — July 29, 2015 @ 7:15 pm
Okay Jon I will ask the question. lol. When do you expect DBV will get back to drilling? Thank you.
Comment by Andrew — July 29, 2015 @ 8:03 pm
Ask me that question again in about 3 days, Andrew.
Comment by Jon - BMR — July 29, 2015 @ 9:29 pm
Dave, the bears are certain copper will crash because they believe there’ll be a considerable surplus. But I see supply restrictions, production cuts in Chile, Zambia, China, …
Comment by Concerned Citizen — July 30, 2015 @ 3:06 am
EQT…NEWS
NR
Equitas Resources Corp. Mobilizing for Drill Program at the Garland Property in Labrador, Canada
July 30th, 2015 – Equitas Resources Corp. (TSXv: EQT) (FSE: T6UN) (“Equitas” or the “Company”) is pleased to announce that crew and equipment mobilization for the Phase 2 exploration program at its 100% owned Garland nickel-copper-cobalt property in Labrador, Canada has commenced.
On May 13th, 2015 Equitas announced that the VTEM Plus airborne survey resulted in the identification of nine areas of conductivity prospective for nickel-copper sulphides; and that most of the responses are at the very limit of, or significantly deeper than detection limits of historic surveys. The overall nature of the targets suggests the potential for the discovery of buried Voisey’s Bay – style mineralization at the Garland Property.
The Company’s initial ground exploration program will include mapping and prospecting, up to 30 line-km of large loop EM survey, and up to 4000m of diamond drilling. Work permits have been approved and contractors for the camp, aircraft support, geophysics and diamond drilling have been confirmed. Personnel and building materials for the twenty person basecamp have been mobilized, and it is anticipated that evaluation of the nine areas of conductivity prospective for Voisey’s Bay-style mineralization will commence during the first week of August. The targets will be followed up with the large loop UTEM 3 geophysics. Diamond drill-testing of the highest priority targets will follow.
The upcoming exploration will be managed by Dahrouge Geological Consulting Ltd. Dahrouge is a mineral exploration, consulting, and project management group based in Edmonton, Alberta, Canada that is experienced in a wide variety of commodities and environments spanning the globe. Dahrouge and its predecessor, Halferdahl and Associates, have been advising and assisting clients in identifying, exploring, and developing mineral projects since 1971.
About Equitas Resources
Equitas Resources is a Canada-based company engaged in the mineral exploration sector. The Company focuses on nickel, copper, platinum group metals (PGM) and cobalt projects. Its 100% owned Garland Project is located less than 30 km south-east ofthe Voisey’s Bay nickel mine in Labrador, Canada.
For more information please visit the corporate website at Equitas Resources website or contact Sean Kingsley (Corporate Communications) at 604.681.1568 or xxx.
On Behalf of the Board of Directors,
EQUITAS RESOURCES CORP.
“Kyler Hardy”
Kyler Hardy
President
Tel: 604.681.1568
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Comment by John BMR — July 30, 2015 @ 4:58 am
EQT – Typical – a down start off the news. Wait a few weeks folks.
Comment by dave — July 30, 2015 @ 6:01 am
EQT – Anon is buying large blocks.
Comment by dave — July 30, 2015 @ 6:29 am
EQT no drilling before mapping, propecting, survey…….2-3 months !
Comment by Guy Delisle — July 30, 2015 @ 7:10 am
CDNX support at 580 has held and now has a small move up , 580 will most likely be retested .
Comment by Les — July 30, 2015 @ 8:13 am
Guy – they will be drilling no later than last week of August.
Comment by dave — July 30, 2015 @ 9:01 am