Gold has traded between $1,316 and $1,329 so far today…as of 10:00 am Pacific, bullion is up $13 an ounce at $1,325…Silver has surged 54 cents to $18.29…Copper is flat at $2.18…Crude Oil is $1.10 higher at $48.97 while the U.S. Dollar Index has fallen one-quarter of a point to 95.80…
Global ETF Gold holdings rose another 5.6 tonnes yesterday, their 4th straight daily inflow. “Their holdings have now been topped up by a good 97 tonnes since the beginning of the month,” Commerzbank says. “After February, June will thus be the month with the 2nd-highest inflows so far this year.”
The level of negative-yielding global debt is continuing its climb into the stratosphere…following the turmoil of the British vote to leave the dysfunctional EU and the desire for the safety of government bonds, the amount has jumped to $11.7 trillion…that’s a 12.5% increase since the end of May, according to a Fitch Ratings report today…
It appears last night’s horrific attack at Turkey’s Atuturk airport, recognized as one of the “safest” airports in the world due to heavy security, was once again the work of radical Islamist terrorists…41 people were killed and more than 200 were injured…Turkey’s Prime Minister said the signs pointed to ISIS as the culprit…this will make President’s Obama’s speech (or Hillary’s campaign speech) to the Canadian Parliament this afternoon more significant than usual (especially on top of last week’s vote in the UK to leave the EU)…Obama will no doubt be granted all the courtesy that the President of Canada’s greatest friend and ally deserves, but 3 things should not be lost on Canadians and the world as Obama delivers his speech – this is a President who truly believes that climate change, not terrorism, is the most serious threat facing the world…this is a President whose failed strategy (he has no strategy) on combatting radical Islamist terrorism has made Canada, the United States and the world much less safe, with the attack on the Canadian Parliament in 2014 and the Orlando massacre just over 2 weeks ago serving as grim North American examples…this is also a President who for the last 8 years in office has paid scant attention to American’s best friend and ally to the north, and has in fact done nothing but demonize the Canadian Oil industry and emboldened those who are against it…this is a President Canadians can have confidence in?…Obama is only back in Canada because he has an ideological clone in the new Prime Minister, a “reflection” of Obama, who agrees with everything Obama says (feeds the President’s ego, or they feed other’s)…
Government Spending In Canada On “Unsustainable Path”
Canada’s total government spending (federal and provincial) is now on an unsustainable path – we should all know that, but it was nice to get confirmation of this fact yesterday from the Parliamentary Budget Officer (an independent watchdog formed by the Conservatives a decade ago)…total government sustainability has swung from net even last year to negative 0.6% of GDP or roughly $11 billion in unsustainable spending annually…Prime Minister Trudeau’s push into deficit financing and reversal of a planned cut to seniors’ benefits are eating up room that balanced out the dour sub-national outlook…
Oil Update
Oil is firming up again as traders poured money back into markets hit by the initial shock of Britain’s vote to leave the EU while a potential Oil workers’ strike in Norway and an ongoing crisis in Venezuela also provided support…producers and refiners are struggling to maintain output in Venezuela due to power outages and equipment shortages, according to traders (as Margaret Thatcher famously said, the problem with socialism is that eventually you run out of other people’s money)…
Data from the American Petroleum Institute (API) yesterday showed that U.S. Crude inventories fell by 3.9 million barrels in the week to June 24, far more than the 2.4 million barrels expected by analysts…API’s numbers were confirmed this morning by the U.S. Energy Information Administration which said Crude stockpiles fell by 4.1 million barrels for the week to June 24, the 6th consecutive week of drawdowns…
WTIC 2-Year Weekly Chart
Crude “doubters” could be in a for a shock during the 2nd of the year as WTIC is giving every technical indication that it’s headed higher…the previous resistance band between $42 and $47 is now acting as new support, and the still-rising 50-day SMA is currently $47.33…this is good news for the Venture…
It’s reasonable to expect a near-term test of Fib. resistance at $54…if WTIC conquers that level, then $60 will be just around the corner…in the chaotic world we’re now in, further supply disruptions would clearly be bullish for Oil prices and are likely to occur during the 2nd half of the year given the increasingly chaotic world we’re in…another potential catalyst for Crude is a significant drop in the U.S. dollar, another event that could surprise many traders in the coming months…
In today’s Morning Musings…
1. Two stocks under a nickel catching attention with bullish charts…
2. Two new additions to the BMR Top Opportunities List…
3. Daniel’s Den – “NIRP”…and how it could send Gold to levels once thought impossible…
Plus more…click here to take advantage of our Spring Sizzler Subscription Special in effect until June 30 only, or login with your username and password to view the rest of today’s Morning Musings…
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VGN has a bunch of cash and is starting to show some life. Could be into the 20’s pretty quickly in my opinion. Very thin on the top side.
Comment by Ed — June 29, 2016 @ 10:35 am
Some talk going around OX could have a deal inked for there mine if so ox will be popping $$$ out
Comment by TheSkipper — June 30, 2016 @ 5:20 am