Gold has traded between $1,326 and $1,336 so far today…as of 10:45 am Pacific, bullion is up $4 an ounce at $1,332…Silver is off 10 cents at $19.91…Copper is up slightly at $2.24…Crude Oil is 50 cents lower at $44.74 while the U.S. Dollar Index has gained half a point to 97.08…
Despite the weakness in Gold yesterday, holdings in SPDR Gold Trust firmed 0.25% to 965.22 tonnes while holdings in global EFT’s rose 2.5 metric tons to 2,004.9 tons, according to data compiled by Bloomberg…
The U.K’s vote to leave the European Union has pushed the International Monetary Fund (IMF) to cut its world growth forecast for this year and next…in its World Economic Outlook, published this morning, the IMF forecast global growth at 3.1% in 2016 – 0.1 percentage points down on its April forecast, 0.3 percentage points lower than its January estimate, 0.5 percentage points below its estimate from October 2015 and 0.6 percentage points down on its forecast from July 2015…hmm, do you see a trend here?…
The IMF also cut its forecast for 2017 growth to 3.4% – having predicted expansion of 3.5% back in April and 3.6% in January…the opening statement of today’s report mentioned that just 1 day before the Brexit vote, the IMF was planning to raise the growth outlook – was that supposed to be a message?…
Markets will now turn their attention on what the European central bank has to say at its meeting Thursday…
The CEO of Newmont Mining (NEM, NYSE) looks for Gold to remain underpinned by both supply and demand fundamentals for some time to come, which in turn provides a big revenue boost for companies in the mining sector, as reported by Kitco News this morning.
“Every $100 change in the price of Gold means an additional $350 million in free cash flow into the business,” stated Gary Goldberg. “If the roughly $300-an-ounce price increase we’ve seen for the year to date sustained itself for a full year, then we’ve delivered another $1.1 billion in free cash flow, which allows us to pay down debt and invest in our best projects and pay dividends to shareholders.”
In today’s Morning Musings…
1. Colorado Resources (CXO, TSX-V) hits high-grade intervals in each of its first 8 drill holes at the Inel Zone at KSP…
2. Deveron UAS (DVR, CSE) opens on the CSE at a new all-time high…
3. Clean Commodities (CLE, TSX-V) gets even more cozy around Northern Shield Resources (NRN, TSX-V) at Huckleberry…
4. Updated Venture chart – higher she goes!…
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