Gold has traded between $1,210 and $1,224 so far today in its 8th consecutive losing session…as of 9:45 am Pacific, bullion is down $6 an ounce at $1,214…Silver is off 9 cents at $16.20…Copper is up a penny at $2.14…Crude Oil, easing off from a 7-month high, is down 26 cents at $49.22 while the U.S. Dollar Index has added one-third of a point to 95.53…
Despite Gold’s slide this month, the yellow metal is still up 15% since the end of December – the biggest gain to start a year since 2006…ETF’s backed by the precious metals have enjoyed a net inflow of $18 billion this year compared with $758 million for equity-backed funds, according to data from Bloomberg…lending rates in Japan and the euro zone are below zero, and the Fed’s monetary actions have not matched the bullish rhetoric of most of its officials…U.S. political upheaval is also Gold-bullish, and concerns are growing regarding debt levels in China…the overall environment for bullion remains extremely positive…those investors who are concerned about the possibility of a Fed rate increase next month should actually be cheering for one – the last hike in December, the first in nearly a decade, ushered in the start of a new bull market in Gold…another hike early this summer could very well be the Fed’s last for quite some time…
U.S. economic growth slowed in Q1 although not as sharply as initially thought, amid a surge in spending on home building and a steady increase in inventory investment by businesses…GDP rose at a 0.8% annual rate as opposed to the 0.5% pace reported last month, the Commerce Department said this morning in its 2nd GDP estimate for Q1…since mid-2015, GDP quarterly growth has been on a steady decrease – 3.9%, 2.0%, 1.4% and 0.8%…lagged affects of the U.S. dollar’s rapid rise from mid-2014 through 2015 have clearly impacted GDP, which is why the economy could actually slip into recession if the greenback were to explode to the upside again…
Fed Chair Janet Yellen is set to speak shortly (10:15 am Pacific) – what she’ll say is anyone’s guess – as she receives Harvard’s Radcliffe Medal…former Fed Chair Ben Bernanke is also scheduled to deliver remarks…
In today’s Morning Musings…
1. Fresh chart for the TSX confirms the bullish outlook for certain commodities over the last half of this year…
2. Updated chart after a 10-fold run over 8 months by Gold Bullion Development (GBB, TSX-V)…
3. Precipitate Gold (PRG, TSX-V) and Athabasca Nuclear (ASC, TSX-V) hit new multi-year highs…
4. Strategic moves bode well for Kootenay Silver (KTN, TSX-V)…
Plus more…click here to take advantage of our Spring Sizzler Subscription Special in effect for a limited time only, or login with your username and password to view the rest of today’s Morning Musings…
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The news on EQT yesterday saw increased volume and the .06 getting taken out. Today the .065’s are going with a big bid at .06, maybe they are ready to turn the corner.
Also, as many stocks made great runs in April and May, it leaves much room for them to come down some in the lull of the summer months. Finding quality stocks with lows right now is also key. I mentioned SEK before. It had its correction and seems to be bouncing back. 400k being bought by GMP today did not hurt matters. They do not buy junk. SEK is overdue for a NR on the start of drilling. They have a quality target in Quebec with sound management. With the way Quebec lithium stocks have been behaving, I am also wondering if SEK may have a surprise in its hat. Time will tell. I picked up some more at .055 today.
Comment by dave — May 27, 2016 @ 11:22 am
Jon
You mentioned yesterday that you may have some news today regarding Heart of Gold Camp?
Comment by GREGH — May 27, 2016 @ 6:41 pm
Hi Gregh, yes, I said perhaps Friday but we’re still doing some research on it (regarding one particular company), hoping for Monday.
Comment by Jon - BMR — May 28, 2016 @ 7:08 am
Dave do you still have LAD on your rader?????
Comment by brian — May 28, 2016 @ 7:31 am
Yes, Brian, LAD ran to resistance at 14-15 cents as predicted and has since pulled back…will do an update in our Sunday Sizzler Report.
Comment by Jon - BMR — May 28, 2016 @ 7:34 am
yes Brian along with many others. I think we are in for a good bull market run for a few years. I have been out of the loop and missed a lot the last few months, but now settled in Peru for a while and making my list. Looking forward to more “buy on the news” instead of “sell on the news”.
Comment by dave — May 28, 2016 @ 8:20 am
jon/john could you show a chart on AIX.V was wondering were the fib resis are, i pick some up yesterday. some one posted on sh spoke to mike (ceo) and he compared AIX to a couple other starting out sized lithium plays and said he thought AIX was lagging a bit, but he said we will be very actice in the coming mouth(s) and siad that he doesn”t expect that to continue and that it”s ALIX turn now. thanks
Comment by kelly — May 28, 2016 @ 8:22 am
Hmmm. Seems Chad Day doesn’t respect the B.C. Supreme Court, or a Land Use Plan that’s already law. Or maybe it’s just because Tahltan elections are right around the corner and Chad wants to play to his base like a crafty, seasoned politician. His open letter in May of last year was a negotiating ploy with the provincial government, and there was a strategy behind his letter Saturday as well.
Do we take Chad’s bait, and I wonder how Donald Trump would react to this?
tahltan.org/press-release-tahltan-and-bc-planning-future-for-sheslay-area/
Time to make Canada great again.
Comment by Jon - BMR — May 29, 2016 @ 3:00 pm
DBV – sounds like a pissing match is still going strong. it would be one thing if it only affects DBV, as Chad + Farshad seem to have a thing for each other, but allowed to fester, this could take down others in the area.
Comment by david — May 30, 2016 @ 5:10 am
It’s Chad Day playing political games again, David, and pretty much irrelevant at this point for a variety of factors.
Comment by Jon - BMR — May 30, 2016 @ 5:44 am
Chad at it again.
He got an injunction against him not to interfere (communicate with the drillers to have them stop their work) and he still publicly declares war to Doubleview. He will fight till the end, till he’s taken down buy his comunity.
The more it goes, the more the Tahltan will flag him as a reckless thug. And at this point, he would just seem inconsistent to change his tactic, so he’s pushing forward.
Most likely digging his own grave.
Comment by Reno — May 30, 2016 @ 6:55 am