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October 13, 2015

BMR Morning Market Musings…

Gold has traded between $1,151 and $1,168 so far today…as of 9:30 am Pacific, bullion is up $3 an ounce at $1,167…Silver has added 15 cents to $15.97…Copper is off 2 pennies at $2.39…Crude Oil is 62 cents higher at $47.72 while the U.S. Dollar Index has fallen one-fifth of a point to 94.71

Not surprisingly, money managers increased their bullish bets in both Gold and Silver futures during the most recent reporting period (through last Tuesday), according to data compiled by the U.S. Commodity Futures Trading Commission…the rise in bullishness occurred as traders “all but eliminated the possibility” of a hike in U.S. interest rates during 2015, according to a research note from TD Securities…

Meanwhile, TDS has upgraded some of its Gold price predictions on expectations that the Fed will push back the start of monetary tightening…the firm has upped its average forecast to $1,135 an ounce for the current quarter, then $1,100, $1,125 and $1,175 for the next 3 quarters…

“A lower U.S. dollar and a drop in short-term rates suggest that the cost to carry Gold will not move higher, helping demand for Gold,” TDS stated.   “At the same time, those who were short could well be forced to cover their exposure in order to avoid losses.  In addition to these drivers, the market now only expects two hikes when the U.S. central bank does pull the trigger on rates. For these reasons, the Gold forecast has been upgraded for the next several quarters.”

Whenever the U.S. dollar and global economic data improve and a Fed hike becomes more certain, TDS believes Gold prices should slide lower toward $1,100 again.  “However, with only two hikes expected, we are projecting higher lows now than previously,” they added.

In today’s Morning Musings

1.  The most reliable Gold chart you’ll find…

2.  The FissionDennison merger is off – a win for dissident Fission shareholders…

3.  More good drilling news from NexGen Energy (NXE, TSX-V)…

4.  Discovery Ventures (DVN, TSX-V) is looking strong, fundamentally and technically…

5.  Updated chart for Equitas Resources (EQT, TSX-V)…

6.  Why Copper bears could get a nasty surprise this quarter…

Plus more…to view the rest of today’s Morning Musings, login with your username and password, or click here to gain full access to this and other exclusive BMR content and features…

16 Comments

  1. John/Jon. Could you guys look at Nickels 1 year spot price chart. It would appear that it has reached a bottom and broken above its down trend line.. Am I seeing this correctly? Thanks.

    Comment by tony T — October 13, 2015 @ 10:25 am

  2. “to view the rest of today’s Morning Musings, login with your username and password”

    I am logged in, yet unable to view the rest? Anyone else?

    Comment by ConcernedCitizen — October 13, 2015 @ 10:48 am

  3. I am logged in and see everything, CC. Perhaps do a quick computer re-boot.

    Comment by Jon - BMR — October 13, 2015 @ 11:01 am

  4. Jon thanks issue is fixed. Curious

    Comment by ConcernedCitizen — October 13, 2015 @ 11:58 am

  5. CC . I’ve had that happen . Hit the Log Out and then log in again.

    Comment by Les — October 13, 2015 @ 11:58 am

  6. For all of you investors who own companies that operate in BC. The 2015 BC Treaty annual report may be of interest.

    bctreaty.ca/files/pdf_documents/BCTC-AR2015.pdf

    Comment by Andrew — October 13, 2015 @ 11:59 am

  7. I had to log out, then log in, then it was fine

    Comment by Laddy — October 13, 2015 @ 12:03 pm

  8. RE:#2 I have the same problem. I have to log out then log back in to view the rest.

    Comment by Robert — October 13, 2015 @ 12:14 pm

  9. Yet another quiet day for GGI, EQT and WRR.. Could this be the “Lull Before The Storm”?

    Your thoughts….

    Comment by Jeff — October 13, 2015 @ 3:12 pm

  10. I have the same issues sometimes and logout and log back in.

    Comment by 02charoc — October 13, 2015 @ 3:29 pm

  11. Turkey hangover day, should see, drilling has commenced at grizzly, this week…

    Comment by Tombc — October 13, 2015 @ 3:40 pm

  12. Turkey hangover is right for you canadians.

    I have a Cubbie hangover – dancing in the streets

    Comment by dave — October 13, 2015 @ 6:10 pm

  13. Time for GGI to release some data. There is no way they won’t hit, they will move the rig until they find something substantial at grizly central. Just a lot of fun ahead!

    Comment by Martin — October 13, 2015 @ 7:10 pm

  14. GGI asks keep building. Has Momentum been lost?

    Comment by tony T — October 14, 2015 @ 8:34 am

  15. Just a healthy minor pullback, Tony. Hard to lose momentum before drilling has even started. Hopefully some loose apples can be shaken off the tree.

    Comment by Jon - BMR — October 14, 2015 @ 8:43 am

  16. CDNX bumping into resistance at 560 . It needs to get through that 560 level in order to start a new leg up.

    Comment by Les — October 14, 2015 @ 9:06 am

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