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Gold has traded between $1,313 and $1,334 so far today…as of 8:00 am Pacific, bullion is down $13 an ounce at $1,318…Silver is 41 cents lower at $19.47…Copper is off a penny at $2.23…Crude Oil has edged 24 cents lower to $44.41 while the U.S. Dollar Index is relatively unchanged at 97.10…

Gold is testing support around $1,320 as a healthy consolidation continues at the same time as the greenback touches a 4-month high after some better than expected housing data yesterday…we have a updated Gold chart in today’s Morning Musings which shows very strong underlying technical support, and where the metal’s next major move will take it this quarter…

This is an earlier than usual edition of Morning Musings due to preparations for departure tomorrow to the prolific Heart of Gold Camp in northwest British Columbia and Colorado Resources‘ (CXO, TSX-V) KSP and KingPin properties… drilling is proceeding at a remarkable pace at KSP with 37 holes already completed (5,000 m) after just 1 month…CXO is wasting no time earning its 80% interest from Seabridge Gold (SEA, TSX), and in today’s Morning Musings we have an exclusive interview with Colorado’s Adam Travis who spoke to us directly from the property…

The Bank of England said it saw “no clear evidence” that a sharp economic slowdown was yet under way after last month’s vote to leave the European Union, though there were signs investment and hiring were being put on hold…the BoE’s regional agents – who are spread around Britain and speak regularly with companies – said today that business uncertainty “had risen markedly” but there was little evidence so far that consumers were spending less…last week the central bank surprised markets by keeping interest rates on hold, rather than cutting them to a record low…but it also said most of its policymakers expected to approve a stimulus package at their August 4 meeting…

Trump Officially Nominated

Delegates last night officially nominated Donald Trump for President at the Republican Convention in Cleveland…he’s the first non-politician to be nominated since Dwight Eisenhower in 1952, and Eisenhower defeated Nazi Germany…Trump has a similar evil today he’ll have to deal with if he’s elected President – radical Islamist terrorism…potential external events over the next few months, combined with the populist appeal of the blue collar billionaire, could easily vault Trump into the White House in November…a few powerful speeches at the Convention so far – former New York Mayor Rudy Giuliani on Monday night (national security and law enforcement, would Giuliani not be ideal to head up Homeland Security?), New Jersey Governor Chris Christie last night (a strong indictment of Hillary Clinton), and Donald Trump Jr., also last night, who hailed his father’s business attributes and his ability to get things done…what a summer and fall this is shaping up to be in U.S. politics, and the impact on the markets is likely to be significant…

Ontario’s Spiraling Debt

What a disgrace – so-called “progressive” Liberal governments in Ontario have saddled taxpayers, and future generations, with a massive debt that’s expected to balloon by another $50 billion over the next 4 years…the bulk of the borrowings will fund the government’s infrastructure plan, according to Financial Accountability Officer Stephen LeClair…he expects Ontario’s net debt to grow from about $300 billion right now to $350 billion by the 2020/21 fiscal year, “largely because of the Province’s 12-year $160-billion capital plan.”

In absolute terms, Ontario’s net debt was the highest among Canadian provinces at $296.1 billion on March 31, 2016, LeClair noted…in relative terms, however, Quebec remains slightly more indebted than Ontario: “Ontario’s net debt per person was $20,806 in 2014-15, compared to $22,591 in Quebec.  In contrast, net debt per person was $8,387 in British Columbia, and net assets per person were $3,168 in Alberta in 2014-15,” the watchdog wrote…

The fact that nearly 40% of Ontario’s debt will mature by 2020 exacerbates the risks, LeClair pointed out, especially if interest rates rise in the coming years.  “According to the 2016 budget, a 1 percentage point increase (e.g. from 3.6 to 4.6%) in interest rates would increase interest payments by about $350 million in 2016-17, more than the budgets of the Ministries of Labour and Aboriginal Affairs,” the commentary states…

Ontario has turned into the Greece of Canada, but that might even be disrespectful to Greece…

In today’s Morning Musings…

1. Exclusive BMR interview with Adam Travis from CXO’s KSP Property…

2. Checking in on Copper Joe…

3. GBB flexes its muscles in trading reminiscent of 2010…

4. 26 million shares traded (accumulation) in this 2.5-cent play in the last 14 sessions…

5. Daniel’s Den – a scam of epic proportions!…

Plus more…click here to read the rest of this article, and all BMR exclusive content, by taking advantage of our July Special, or login with your username and password.