Gold has traded between $1,181 and $1,194 so far today…as of 8:30 am Pacific, bullion is up $3 an ounce at $1,192…Silver is off 3 cents at $15.20…Copper is down 2 pennies at $2.02…Crude Oil is down 9 cents at $27.85 after a mixed EIA inventory report, while the U.S. Dollar Index has added one-quarter of a point to 96.34…
The Gold ETF winning streak has finally come to an end after more than 3 weeks (16 consecutive trading days of inflows)…during that time, holdings in Gold ETFs tracked by Bloomberg increased by 78.6 tonnes…yesterday saw an outflow of 1.5 tonnes from the SPDR Gold Trust…
NTL FCStone, a financial services firm specializing in commodity trading, sees potential for precious metals to resume their upward climb after pulling back from Monday’s multi-month highs…the “backdrop…has not changed much and we would not be surprised if the complex regroups to push higher,” the firm stated…
“The reasons we cite are the following: 1) We see continued unease in global equity markets, spurred by an equally jittery energy complex where recent gains seem to be getting rolled back almost in their entirety, as evidenced by Tuesday’s $2/barrel decline in Brent; 2) Continued dollar weakness, possibly exacerbated by weaker U.S. macro data that should start filtering out with more frequency next week; 3) Constructive technicals still apparent on the Gold charts; and 4) A pick-up in Gold investment buying.”
Yellen: Conditions Less Supportive Of Growth
Federal Reserve Chair Janet Yellen is doing some backtracking as she started 2 days of testimony before Senate and House committees this morning…she noted that a strong U.S. dollar, broad declines in equity markets and high borrowing costs for riskier borrows are factors that are dampening the growth prospects…she couldn’t see this late last year after finally deciding to hike interest rates for the first time in nearly a decade?…
“These developments, if they prove persistent, could weigh on the outlook for economic activity and the labor market,” she said in a prepared statement…has she finally woken up to the negative affects of a strong dollar?…
Yellen also highlighted growing global risks, in particular the “sharp slowdown” of the Chinese economy…she noted that increased turmoil in global markets could weaken demand for U.S. exports and further tighten financial market conditions…in addition, market expectations for inflation are sinking, she admitted (the Fed has steadfastly maintained for a few years that inflation is going to push higher)…
Oil Update And Canada’s Hypocrisy
Crude Oil firmed up briefly on (false) hopes of production cuts in the Middle East…Iranian Oil Minister Bijan Zangeneh told reporters that the country was open to cooperation with Saudi Arabia to discuss limiting output to address oversupply worries…the countries are fighting a proxy war and the Saudis closed their embassy in Tehran last month – the Saudis are fully prepared for an extended period of weak Oil prices, and they’re not about to do anything to help arch-rival Iran…most of the rhetoric r egarding production cuts recently has come from Iran and its Russian allies, so consider the sources…
WTIC Long-Term Weekly Chart
At a minimum, we still anticipate Crude Oil touching $25 a barrel where there is some long-term support…$20 isn’t off the table, either…if there’s anything encouraging about this chart, it’s the divergence between price and RSI(14)…
Once prices get to a point where the supply glut beings to recede, then Crude will begin a meaningful recovery…timing of that remains uncertain…
Supreme Court Halts Enforcement of Obama’s Sweeping Climate Change Plan
A divided Supreme Court agreed yesterday to halt enforcement of President Obama’s sweeping plan to address climate change until after legal challenges are resolved…the surprising move is a blow to the administration and a victory for the coalition of 27 mostly Republican-led states and industry opponents that call the regulations “an unprecedented power grab”…
By temporarily freezing the rule the high court’s order signals that opponents have made a strong argument against the plan…a federal appeals court last month refused to put it on hold…following the unexpected move, White House spokesman Josh Earnest said in a statement, “We disagree with the Supreme Court’s decision to stay the Clean Power Plan while litigation proceeds.”
Canada – Weak & Delusional
Meanwhile, is there anything more ridiculous than the situation in “climate change crazy” Canada than the fact that tanker-loads of foreign Oil are being delivered regularly to eastern Canadian refineries including increasing volumes from Saudi Arabia, while many Canadian politicians’ feet are stuck in the mud over pipeline approvals to get Alberta Crude to market?…
The Saudis are engaging in a brutal price war that’s doing Canada some serious economic damage…increasingly, they’ve been dumping their cheap “unethical” Oil in a New Brunswick refinery with the daily average (84,017 barrels) up more than 30% in 2015 from 2012 according to data compiled by the National Energy Board…
Furthermore, refineries in Quebec, Ontario, Newfoundland and New Brunswick imported about 600,000 barrels a day from foreign producers in 2015…in addition to Saudi Arabia, this Oil came from places like Algeria, Angola and Nigeria because there is insufficient pipeline capacity to import it from Western Canada which of course is blessed with far more Oil than it needs…
What Canada urgently requires is its own version of Donald Trump to fix this silliness…
As Claudia Cattaneo of the National Post correctly observed in a column today, “Where is the political outrage over Oil imports from rogue nations with inferior environmental records and deplorable behaviors toward women, dissidents and minorities? Where are the beefed up regulatory reviews of Saudi Arabia ‘s climate change impacts, or their dumping practices? Why is Canada so consumed with scrubbing its Oil clean while Oil from foreign sources flows into the gasoline tanks of eastern Canadians free of scrutiny?
Canadians have become weak and delusional – the withdrawal of Canada from the bombing war against ISIS is yet another example of this country’s wrongheadedness for which there will be a steep price to pay, especially if Americans switch gears and elect a Trump administration in November which appears increasingly likely…Trump vs. Trudeau – what an interesting dynamic that would be, especially with a softwood lumber agreement up for renegotiation…
In today’s Morning Musings…
1. NexGen Energy (NXE, TSX-V) breaks out, announces more spectacular Uranium mineralization in Arrow Zone at Rook 1…
2. Interesting Oil discovery in northeast Saskatchewan…
3. Lithium X Energy (LIX, TSX-V) resumes its charge higher…
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…
Speaking of GGI and halts….I don’t think regoci’s Thursday at 6:00 pm news releases does much for the market either. I hope that’s not the case for this release
Comment by weatheritout — February 10, 2016 @ 9:10 am
LIX – I understand there are a couple of financing coming off in March and April. Should we hold off on buying at this point?
Comment by George — February 10, 2016 @ 9:35 am
Enjoyed your rant on the condition of the Canadian oil situation and foreign oil being brought in when we have lost tens of thousands to hundreds of thousands of jobs because our oil sands are shut down.
Maybe this is one of the main reasons Canada wants in on the TPP.Nobody can stand in the way of a pipeline after.That will be the law.Corporate rights above all else.Hell of a deal to have to enter just to get a pipeline through though.The common man will lose everything.
I wonder how Trudeau deflects this deal over time.Green will mean nothing if it cuts into corporate earnings.Pollution means nothing in this pact.Jobs will disappear again,but…the pipeline will go through.
Comment by robinandthe7hoods — February 10, 2016 @ 9:43 am
I like this quote from Regoci….just have to keep this in mind during slow times.
We all know this district is very, very rich. What we see based on this Grizzly Central drilling to date is that there’s going to be multiple different styles of mineralization in the Sheslay district – different deposits, Gold deposits, Copper deposits, epithermal deposits. The first chapters are just being written here with the Grizzly…it’s going to make an awful lot of shareholders happy.”
Comment by weatheritout — February 10, 2016 @ 9:47 am
BTR – anyone follow? have comments?
Comment by david — February 10, 2016 @ 10:07 am
No pipeline will be built to the Kitimat BC area as long as the no tanker moratorium that was put in place by the new Trudeau government is in effect . In the mean time half a million barrels of oil a day are being shipped up the St. Lawrence River to Quebec and Ontario with no problem ; totally absurd .
Comment by Lester — February 10, 2016 @ 11:34 am
Lester,you have to wonder where the Liberals are going to find any money to fund the country going forward.MJ must be going 100% forward,because I see nothing else coming up.No huge drop in corporate taxes so businesses start manufacturing here again.Ontario is no longer a destination for huge companies because of hydro costs alone.Quebec is out because of the language laws,so there goes the center of the country that should be the engine.
Oil is dead for now.I have no idea where this country goes from here for jobs.There are either moratoriums or more red tape added for anything natural to get okayed.
Comment by robinandthe7hoods — February 10, 2016 @ 12:33 pm
Weatheritout,I’m hoping assays were re-done on #3 because they got high grades in the results,and needed to be verified.Hole #3 was mineralized top to bottom,and Holes 1-3-4 were connected based on the previous PRs,which could project to a lot of gold/copper.
#3 has the potential to catch the eye of the market.It takes very little to move the stock as there are no big walls in front of us,and the chart is in a powerful position on the weekly,so the stock could move big if they get the right results and the volume comes in.
Comment by robinandthe7hoods — February 10, 2016 @ 1:09 pm
Hoping the same on hole 3 along with something else that is different and unexpected. It certainly don’t have the feel of news coming Thursday if you gauge it on today’s trading, but you never know with GGI. One thing I have learned with GGI is that slow doesn’t affect the outcome as the last time they delivered on Rodadero.
Comment by Dan1 — February 10, 2016 @ 4:54 pm
Well, with what gold is doing rite at this moment 1209 and the us $ dropping, is there a better time to let the grizzly out of hibernation??
Comment by Laddy — February 10, 2016 @ 5:09 pm
Hah…well said Laddy. Let’s see what tomorrow brings.
Comment by Treb — February 10, 2016 @ 6:22 pm
George – sorry for delay getting back to you. I had to cancel my Ecuador trip cause of a forced move situation. Here we go again. Anyway, PHM , I was hoping for a triple bottom but did not get it. The TA is suggesting some upside here, possibly to .57 before another (I don’t know which way I want to go” scenario. If you trade it, do so by watching it as much as possible. If it breaks .57, it will continue up.
I have a good one here coming up and I will talk about it as soon as this first run is done and it corrects some. I want to get my bids placed first.
Comment by dave — February 10, 2016 @ 6:28 pm
Some here waited to long to buy EQT, my last one (yes, I know where it is at). But EQT was a triple for me and I believe this next one will triple too.
Some of you have a triple on WRR, congrats, they are hard to come by in this market.
Comment by dave — February 10, 2016 @ 6:35 pm
Gold up $16 an ounce at $1,213…..12:30 am Pacific….there’s something about this move that seems very different than the previous failed rallies since 2012…new bull market could be on…
Comment by Jon - BMR — February 11, 2016 @ 12:25 am
John Kaiser has a fine blog piece out at kaiserresearch.com (click on Blog) on the implications for scandium and the aerospace industry regarding yesterdays game changing announcement that the aerospace industry is adopting carbon dioxide emissions standards for airline fleets. Scandium alloyed with aluminum strengthens aluminum and will allow the aerospace industry to use less aluminum making the aluminum 15% less heavy. This has huge implications for Scandium International Mining (SCY) previously featured here at BMR.
Anyone interested in acquiring or adding to a position are currently in luck as their is a fund liquidation (likely Till Capital who are exiting the resource business in favor of the insurance business) underway through Cannacord. I picked up more under $.11 yesterday and have more bids in.
Comment by John — February 11, 2016 @ 1:18 am
Let’s hope so Jon. Bodes well for the future
Comment by Kalkan — February 11, 2016 @ 1:31 am
Yellen has dropped the ball – waited too long to start hike cycle and then hiked into a weakening economic environment. Now may have no choice but to do a complete reversal and introduce QE4. European banks, China banks in trouble. Couldn’t be more explosive scenario for Gold.
Comment by Jon - BMR — February 11, 2016 @ 2:40 am
Up $33 on Reuters.Gold going ballistic.General markets will take a shellacking today.Gold and silver the place to be right now.Come on GGI!
Comment by robinandthe7hoods — February 11, 2016 @ 3:04 am
With GOLD climbing rapidly and WRR’s high grade near surface results I see strong moves ahead for WRR.
Comment by John - BMR — February 11, 2016 @ 3:10 am
Today would be the best day that Regoci could find to release news with high-grade gold values from the Grizzly.Gold has taken center stage and a PR with massive gold potential from a 306 metre intercept connected to every hole in the program would send this running for two straight days heading into the long weekend.
Don’t let him miss this opportunity!Please,God!
Comment by robinandthe7hoods — February 11, 2016 @ 3:18 am
Not sure what to think of Regoci anymore. If they don’t release results today it is a red flag in my opinion.
Comment by Dan1 — February 11, 2016 @ 6:06 am
Jon, have you talked with anyone with GGI lately? Anyone -IR, Regoci, etc. This is getting a bit ridiculous you got to admit. Something is not right with this picture. You stated earlier that their timeline wasn’t far off DBV’s when it came to results. It is way off right now.
Comment by Dan1 — February 11, 2016 @ 6:22 am
Dan1 – What would be the “red flag”?
Comment by George — February 11, 2016 @ 6:26 am
Dan1 – Haven you spoken to Regoci, IR? Have you made the call? Does the definition of imminent mean news being released on Thursday? I am as frustrated as anyone. It could be tomorrow.
Comment by George — February 11, 2016 @ 6:28 am
Dan1, I’m standing by my prediction this week—my hunch is there’s a high probability that today will be the day. Regoci seems to like Thursdays. If you go back in history, more than 75% of the time they’ve come out with news near the end of the week (Thursday usually or sometimes Friday morning). So, saddle up.
Comment by Jon - BMR — February 11, 2016 @ 6:31 am
206 is the next Fib. target for the TSX Gold Index…updated chart this morning…still too early to consider the short side, too much momentum here…
Comment by Jon - BMR — February 11, 2016 @ 6:33 am
I did speak to IR about a week ago. Still doesn’t help with no results.
Comment by Dan1 — February 11, 2016 @ 6:37 am
Dan1 – Can you share what IR told you?
Comment by George — February 11, 2016 @ 6:51 am
Saddle up Jon? I have been saddled up so long my hips are numb. Someone needs to pull on the horses reins. I hope your predictions come true.
Comment by Dan1 — February 11, 2016 @ 6:56 am
Ok, I’ll start pulling on the horses’ reins, we’ll see what happens…
Comment by Jon - BMR — February 11, 2016 @ 6:57 am
Dan1 – I hear ya dude. I share your pain.
Comment by George — February 11, 2016 @ 6:59 am
IR told me they expect the results to be very good and news very soon. There would be news on Grizzly first and then news shortly after from Mexico on two fronts. Of course IR will say they expect results to be very good, they are promoters. Just what shortly means – well we all know how long that could be.
Comment by Dan1 — February 11, 2016 @ 7:04 am
No chance of seeing anything this week now.
Comment by robinandthe7hoods — February 11, 2016 @ 7:06 am
I really hope news flow improves going forward….otherwise it will be summer or fall before we see any other results from grizzly. Regoci has to pick up the pace a bit in order to keep investors. I’m with Jon that I think today we will see results…if not then you really have to question Regoci choice of words such as imminent. Hopefully his choice of words to describe Grizzly have been accurate.
Comment by weatheritout — February 11, 2016 @ 7:13 am
GGI – IR suggested that news was almost put out last week and when it became apparent that they couldn’t make it happen, they updated the Fact Sheet as a placebo/teaser to news. News is really expected this week. I guess they could do Mexico, which is way overdue, but now that would be perceived as suggesting Griz results are bad, which it appears is not the case. So they appear to be backed up with news that all rides on the proper dissemination of what up at Griz. Mexico may move fwd with a geo for each project.
Comment by david — February 11, 2016 @ 7:25 am
I agree Jon, this week, maybe he’s waiting till yellen and the fed are done cleaning all the egg of their face….
Comment by Laddy — February 11, 2016 @ 7:29 am
GGI – Could have all my money that is tied up in GGI in other gold stocks and actually have made money instead of losing money. so disappointed.
Comment by George — February 11, 2016 @ 7:35 am
Hang in there George…almost there.
Comment by weatheritout — February 11, 2016 @ 7:42 am
The waiting has become very frustrating for both GGI and DBV but one has to remember both companies have their own timelines which is not necessarily the shareholders . With gold moving up and possibly an end to it’s bear market , it is imperative that DBV and GGI have high gold content in their core samples.
Comment by Lester — February 11, 2016 @ 7:51 am
George, I feel you. Could have bought MUX and Kinross, instead I’m stuck underwater in GGI and DBV for many months now…
Comment by ConcernedCitizen — February 11, 2016 @ 8:00 am
That’s the problem with slow news flow….as soon as you get news you have a stampede of investors trying to get out on news since they have no idea how long it will be till the next release. Regoci really has to try to change his style of he wants a lasting change on share price
Comment by weatheritout — February 11, 2016 @ 8:18 am
Wow…gold almost up $60…GGI down. Would have expected some move.
Comment by weatheritout — February 11, 2016 @ 8:33 am
gold – has to be some short covering to account for that big spike. and the USD keeps dropping in chunks. Lots of going broke Oil countries out there now. Azerbhjan, Venezula, Ecuador. Saudi oil plan seems to be a disaster. Iran asking to sell their oil in Euros, not USD. has to be a rescue somewhere for a short term stabilization in mkts.
Comment by david — February 11, 2016 @ 9:12 am
GBB – whats Frank been saying to get this up to 5 cents?
Comment by david — February 11, 2016 @ 9:31 am
I’m not sure he’s had to say anything, David. With Gold at these levels, Granada’s economics are looking much more favorable…all GBB needs is that CA from the environment/climate change ministry and they’re off to the races…
Comment by Jon - BMR — February 11, 2016 @ 9:34 am
GBB –
Comment by david — February 11, 2016 @ 4:00 pm