Gold has traded between $1,200 and $1,215 so far today…as of 10:00 am Pacific, bullion is up $9 an ounce at $1,209…Silver has gained a dime to $15.32…Copper has added 2 pennies to $2.08…Crude Oil has jumped $1.85 a barrel to $30.89 while the U.S. Dollar Index is down one-tenth of a point at 96.78…
Holdings in bullion-backed exchange-traded products rose to 1,604.1 metric tons as of yesterday, the highest since May, data compiled by Bloomberg show…billionaire John Paulson’s hedge-fund firm cut its stake in the world’s biggest Gold ETP by 37% last quarter, just before the metal’s 13% surge this year…bad timing, but that’s the price of impatience…
TD Securities is eyeing the $1,300 level for Gold. “We continue to argue that Gold is likely to consolidate at around $1,200 an ounce, then move back up toward $1,250 before it attempts $1,300,” TDS stated. “As such, we have extended our bullish Gold trade by revising our stop higher to $1,180 an ounce and by setting a new medium-term target of $1,300.”
Bank of America Merrill Lynch sees a 25% chance of a U.S. recession in the next 12 months, but says the market is pricing in a 50% chance of a recession. “In our view, not only is fear trumping fundamentals, but the fundamentals for the equity market are worse than for the overall economy,” the bank said in a note…
A Bank of America Merrill Lynch fund manager survey for February showed market pros had gotten so nervous that portfolio managers’ cash allocations were at November 2001 highs…
Oil Update
OPEC us turning up the pressure on members Iran and Iraq to limit their Oil production, a day after Saudi Arabia, Russia and other Oil producers agreed to curbs on their output (maintaining production at January levels, which is hardly a cut) as long as others do the same…Qatar’s energy minister and the current President of the OPEC, Mohammed al-Sada, discussed the production cap plan with ministers from Iran, Iraq and Venezuela at a meeting in Tehran today, and Iran’s Oil minister stated afterward that Tehran could support any effort to stabilize Oil prices, including cooperation between OPEC and non-OPEC producers…this is nothing more than cheap talk right now to help stabilize prices but in the unlikely event that an agreement is reached, it would be the first joint OPEC and non-OPEC deal in 15 years (though it’s hard to imagine how such a modest plan would actually do much to ease the supply glut)…
Keep in mind that Iran is on a campaign to boost its Oil output this year by at least a third as the country emerges from more than 3 years of crippling western sanctions over its nuclear program…those restrictions were lifted last month, and Iranian officials have said its output has already grown by 15%…
The proposed “freeze” is also coming at a high-water mark for certain producing countries…Russia has been pumping out Oil at a post-Soviet era high in recent months but their output this year is expected to be flat given natural decline at certain fields…Qatar is producing at capacity according to the International Energy Agency, and Venezuela is close…Saudi Arabia has some spare capacity but likes to keep it that way for market power purposes…
Gold In Canadian Dollars
In a major breakout, Gold touched a multi-year high of $1,752 in Canadian dollars last week, not far off the all-time high set in late 2011 when the currency was at or slightly above par vs. the U.S. dollar…
Fib. levels have proven to be very accurate which is why we’re confident in projecting a minimum of another $200 jump in Gold in loonie terms during the first half of this year to nearly $1,900…this is a full-fledged new bull market in Gold, very different than any of the failed rallies we’ve witnessed over the last several years…
The bear market low for Gold in CDN dollars was $1,242 in June 2013, so prices have jumped as much as 41% since then…that’s why certain Canadian producers have performed so well in the market since then, and will continue to excel…
In today’s Morning Musings…
1. Long-term Dow chart underlines how critical the 15500 support is – a move below that could usher in major down wave…
2. Lithium X Energy (LIX, TSX-V) touches a new high…
3. GoldQuest Mining (GQC, TSX-V) picks up steam during its ongoing Preliminary Feasibility Study for its Romero Project…
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…
Jon, you also touted a GGI NR release this week regarding Mexico. Do you still think it will happen? If so, it will be Thursday again. Hopefully Thursday morning g instead of after hours. When will they learn? I stated there would be a release this week because that’s what GGI IR told me.
Comment by Dan1 — February 17, 2016 @ 11:26 am
BMR – why haven’t you been sending out emails to members advising to aggressively buy GGI since you feel it is more attractively priced than ever before like you did when the stock was trading at $0.14-$0.16?
Comment by George — February 17, 2016 @ 12:28 pm
The Venture is now at 516 and breaking away from the 50DMA , it is imperative that it takes out the last high in the 528 -530 area.
Comment by Lester — February 17, 2016 @ 12:29 pm
Updated ultra 1 zone map.
Comment by Laddy — February 17, 2016 @ 1:50 pm
We’ve been refining our email system in recent weeks, George, as we’re introducing a slick new format shortly. Stay tuned. That’s why nothing has gone out at all recently on any company/situation.
Comment by Jon - BMR — February 17, 2016 @ 2:51 pm
Laddy – they can update all the maps they want. It means nothing to us. They have been updating maps since October and…..
Comment by George — February 17, 2016 @ 3:23 pm
I’m not ammuned to everyone’s frustration George, the grizzly needs more drilling at this point, sooner the better, I’m waiting for Mexico, before the end of the month, let’s hope.
Comment by Laddy — February 17, 2016 @ 4:51 pm
GGI – TA pointing positive again. Bids built in the last hour.
Dan, I would not be concerned about Thursday NR. Fridays have been the best volume/uptick days for many stocks the last year.
Comment by dave — February 17, 2016 @ 5:14 pm
According to farshads conference call, aren’t we supposed to get Dbv news this week? Or am I mistaken?
And still expecting Ggi news on Mexico this week?
Comment by Sameer — February 17, 2016 @ 6:51 pm
Laddy – what was the map update anyway?
Dave – interesting on the TA, that’s assuming we get a news release this week.
Comment by George — February 17, 2016 @ 8:03 pm
Dave – thanks for your TA. Hope you are right.
Comment by Dan1 — February 18, 2016 @ 6:02 am
Well, so much for news this week. I doubt he releases on a Friday. If that RSI does not push past 50, it could turn weak again. Oh brother, we needed a green open, didn’t get it.
Comment by dave — February 18, 2016 @ 6:56 am
I take that news on DBV to be not so positive
Comment by dave — February 18, 2016 @ 7:33 am
John – is there a site that I can go too and get TA on a stock trading on the “C” exchange. Or does anyone else know, like in a hurry. One of my 2 picks is getting ripe.
Comment by dave — February 18, 2016 @ 8:24 am
By the way, I am not a paid subscriber on stockcharts
Comment by dave — February 18, 2016 @ 8:25 am
Dave, what do you mean about DBV news not being positive…have you heard something?
Comment by ChetBaker — February 18, 2016 @ 8:32 am
I will keep my comments until after. Lets see if Mexico news released this week.
Comment by George — February 18, 2016 @ 8:34 am
Dave …I only use Stockcharts for my charts and TA, their database does not cover the C exchange. Off hand I do not know if Bigcharts covers it. Stockwatch may do if U join….I think U can get a free trial month if U have never been a member. I have asked S/C to consider including the C EXchange several times but so far no luck.
Does your stock have a US listing?, if so you can get a chart on S/C like I do for BLO.
Best of luck
Comment by John - BMR — February 18, 2016 @ 8:40 am
thanks John, no US listing. I am a member of stockwatch, but I am not subscribed for L2 on the C exchange. Heck, it cost me $80 a month now just to have what I have. This one pick of mine has done a yearly double bottom. Oh well, watch chart and go by volume I guess.
Comment by dave — February 18, 2016 @ 8:48 am
Now Dave, do you understand why so many investors are frustrated with Regoci? Slow as a turtle and no regard for his shareholders. There I said it again. If IR said there was a PR this week then surely they must have had something written or almost finalized last week.
Comment by Dan1 — February 18, 2016 @ 8:55 am
Dave , everything I’m hearing on DBV is good , it has taken more time than expected but it’s all good.
Comment by Lester — February 18, 2016 @ 9:02 am
Dave, why do you say the DBV news will not be positive?
Comment by Sameer — February 18, 2016 @ 9:04 am
DBV – news today. They lost the injunction in court against Day.
Comment by dave — February 18, 2016 @ 9:33 am
Did DBV legal team screw up in their injunction application?
Robert
Comment by Iceclimber — February 18, 2016 @ 9:34 am
Oh George, yes I see what you mean. Also the offers have six figures on them.
Comment by dave — February 18, 2016 @ 9:36 am
Wow Dave not the news I was expecting. I thought this was a sure thing. How will this effect future plans?
Comment by Sameer — February 18, 2016 @ 10:06 am
Dave – you see what I mean with respect to what? What offers?
Comment by George — February 18, 2016 @ 10:16 am
DBV – marketwired.com/press-release/doubleview-lawsuit-against-tahltan-leaders-and-elders-dismissed-2097772.htm
Comment by George — February 18, 2016 @ 10:19 am