Gold has traded between $1,247 and $1,266 so far today…as of 8:00 am Pacific, bullion is down $5 an ounce at $1,253…Silver is off a nickel at $15.84..Copper is flat at $2.30…Crude Oil, finally above $40 a barrel, has added another 46 cents to $40.66 while the U.S. Dollar Index has rebounded slightly to 94.84…
Equity markets are up this week, Oil is up, Gold is up, Silver is up, Copper is up, hens are up, hogs are up…significantly, however, the greenback is down…investors can look forward to cheap cash the rest of this year after the Fed’s dovish policy statement Wednesday, and even 2 rate hikes might be questionable given that this is a U.S. election year (and a highly unusual one at that)…central banks around the world continue to experiment in real time…there is no lab for them to practice in…
SPDR Gold Trust, the world’s largest Gold-backed exchange-traded fund, said its holdings rose 1.5% to 807.09 tonnes yesterday from 795.20 tonnes on Wednesday…
Oil Update
WTIC is headed for a 5th straight week of gains, and John’s HOU chart this morning suggests this move will continue…Oil prices have climbed by more than 50% from 12-year lows reached in December, bolstered as OPEC floated the idea of a production freeze…cartel kingpin Saudi Arabia and non-OPEC producers led by Russia will meet on April 17 in Qatar capital Doha in an effort to hammer out the first global supply deal in 15 years…
The EIA reported Wednesday that Crude inventories in the U.S. increased by 1.3 million barrels in the week to March 11 to a record high of 523.2 million barrels, though that was a much smaller build than the 3.4 million barrels expected by analysts…
Many analysts are still cautious, however, about how much “staying power” Crude will have above $40 a barrel. “Global fundamentals are little changed and Oil has instead been lifted by higher risk-appetite,” BNP Paribas said in a note. “A dialogue among key producing countries to address Oil output will at best yield a decision to freeze output, but not the much-needed reduction required to rebalance the market.”
Analysts estimate world-wide surpluses continue to mount at a rate of 1 million to 2 million barrels a day…Saudi Arabia produced and exported more Oil in February than it did the month before, data showed yesterday…however, even if U.S. producers seek to reverse recent output cutbacks and bring more wells back online in the event prices stabilize above $40 a barrel, several obstacles remain…Oil-field services workers who drove the production boom have been laid off or redeployed, and it will take time to staff up…and getting wells up and running again will require capital at a time when banks have been worried about producers’ ability to make good on outstanding loans…access to capital just isn’t what it used to be in this sector…
In today’s Morning Musings…
1. Silver continues to flirt with a major potential breakout…
2. The new trading range for the TSX after the recent key breakout above 13000…
3. A 5-cent stock that should be accumulated…
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…
WRR- up on good volume today
Comment by kelly — March 18, 2016 @ 8:26 am
PE – Jon thanks the brief update on PE. Nice pennant developing on chart. Brine measurements and flow rates due on 3 holes soon I hope. Then they can add to the 43-101 resource calculation!
Comment by vepper — March 18, 2016 @ 3:08 pm
You’re welcome, Peter. PE had a good day today and we can take comfort in the fact that this breakout is going to occur–patience will be rewarded here.
Comment by Jon - BMR — March 18, 2016 @ 3:14 pm
Jon, simply ignoring the 3 maybe 4 guys that are constantly whining about regoci, how many junior’s can say they have their own drill, and have gone to the market looking for money repeatedly, he’s minimizing costs, and that’s a positive for shareholders not flippers, caution and patience will reward here with GGI, nothing against dbv I hope they do well, but being aggressive and being known as a bulldog has gotten him nowhere, greed played a big factor with them, I see none of this with regoci.
Comment by Tombc — March 19, 2016 @ 7:38 am
JON: you don’t see a market crash on the big boards? Also, others like Clive Maund,etc, are calling for a big drop/correction in Gold for the past two weeks yet it hasn’t materialized? they aren’t saying the bull market is over but the spec positions are at highs combined with the somewhat parabolic move upwards in Gold since December….yet Gold is still 1250$……you thoughts? thanks!
Comment by STEVEN99 — March 19, 2016 @ 8:49 am
For me guys re: DBV & GGI area plays: i was part of the Yukon play many years and got burned by the 3rd year as people either lost interest or nothing really happpened?! so, i tend to stay away from this play as other plays in the Lithium and other Gold sectors are coming to the forefront….3rd year plays seem to lose interest after all this time if nothing has happened…..focus on new plays like WRR, PE,etc….PE three years ago was probably less than 10 cents so it is ‘growing’! LIX closes $8.5M financing!
Comment by STEVEN99 — March 19, 2016 @ 8:52 am
by the way,fact; ggi is drilling exploreing and working,fact;many many junior companys are NOT….
Comment by Laddy — March 19, 2016 @ 8:53 am
Hi everyone. Another great week on the markets. WRR is looking real good getting ready to make a run to the next level up (drill results pending). Athabasca Nuclear ASC has been getting a lot of attention lately and is raising money for its uranium property between Fission Uranium and NexGen energy (High grade uranium in one of the biggest discovery areas on the planet). Its trading at 5 cents people. GGI is going to move here soon, I am not worried about that one. I think big breakouts over the next year in commodities will be natural gas and Uranium. JMHO. Hoping to have another great week this coming week. thanks to Jon/John for all the great insight into many of these plays.
Comment by Ed — March 19, 2016 @ 9:02 am
Steven99, I’ve been puzzled by Clive’s recent analysis. But John’s charts have been the best guide on Gold I’ve seen anywhere. A fundamental shift occurred in Gold and the Venture in late January/early February, so the moves since then have been very different in nature (indicative of a new bull market) than anything we’ve seen since the beginning of 2012. The Venture has great momentum and wants to go higher. Same with the CRB Index. The Gold chart looks terrific with tremendous support between $1,200 and $1,220, and Silver has a good chance to break out soon above $16. It’s hard to go against that trend right now. Yes, certain specific situations are technically overbought, but that’s a reflection of upside momentum which can continue for an extended period.
What potentially could develop over the coming few weeks is a spike higher in the Venture and commodities in general, followed by a pullback into May. Then a strong final 6 months of the year. The U.S. dollar is clearly in a downtrend that could continue for the balance of the year, and whenever the dollar is weak or at least not in an uptrend, that’s positive for the Venture and commodities as a whole. The Fed has backed off from its tightening stance in December. Central banks and governments everywhere appear to be in “stimulus” mode. Hard to get a market crash under that scenario. Don’t fight the Fed, as the saying goes.
Comment by Jon - BMR — March 19, 2016 @ 9:42 am
Your frustrated? Well maybe we should direct our frustration at Trudeau and the Feds, they are about to make the biggest and dumbest investment in a penny stock of the decade, I would never put a dime into bombardier but it’s looks I won’t have a choice, just ask Toronto transit who should have received 67 street cars by now and only have 16, talking about a blunder and a waist of money, and it goes on and on, planes nobody wants, really! This stock will be trading at a dime by the end of the year. People voted for change and that’s exactly what their going to get.
Comment by Tombc — March 19, 2016 @ 11:17 am
thanks Jon. TDG here also confirmw what you are saying: http://thedailygold.com/preciousmetals-ignore-correction/
Comment by STEVEN1 — March 20, 2016 @ 7:53 am