Gold has traded between $1,254 and $1,263 so far today…as of 10:00 am Pacific, bullion is relatively flat at $1,256…Silver is off 4 cents at $17.43…Copper has fallen 4 pennies to $2.13…Crude Oil is up slightly at $50.35 while the U.S. Dollar Index is off one-third of a point at 97.63 after trading above 98.10 overnight…the high dollar means the U.S. economy is once again importing deflation, the opposite of what the Fed wants to see, not to mention the negative affects the strong greenback has on the manufacturing sector as well as earnings of corporations with extensive international operations…
Minutes of the Fed’s September 20-21 policy meeting released yesterday offered nothing new as they showed several officials believed it would be appropriate to increase interest rates “relatively soon” if economic data were to support such a move…
World stock markets came under pressure today, thanks in part to a weak economic report out of China…the country’s September exports dropped 10% from a year earlier, far more than what markets had expected, while imports unexpectedly shrank 1.9% after an encouraging bump up in August…this also explains the weakness in Copper this morning…
First Oil & Gas IPO In More Than 2 Years
Investors flocked to the first initial public offering for a U.S. Oil and gas explorer in more than 2 years, another sign of a turnaround that’s building in the industry…Extraction Oil and Gas (XOG, NASDAQ), a Denver-based exploration and development company, sold 33.3 million shares late Tuesday for $19 apiece…the shares ended their first day of trading yesterday up 15%…
Bold “French” Prediction: Gold Bull Market Is Fini!
This will either emerge as one of the great “Gold calls” of all time, or one of the most foolish (likely the latter as Venture trading contradicts the forecast)…unprecedented investor demand that helped drive Gold prices almost 30% higher this year is expected to come to a halt as the market deals with higher global interest rates over the next 2 years, according to one French bank…Natixis’ precious metals analysts Bernard Dahdah (named the London Bullion Market Association’s top Gold forecaster in 2015) and Alomgir Miah said in a report yesterday that they see more headwinds for Gold and Silver in 2017 and 2018…the analysts said that they expect Gold to average $1,180 an ounce next year, with prices falling to an average of $1,100 in 2018…at the same time, they believe Silver prices will average $15.70 an ounce in 2017 and then $13.20 an ounce the following year…
The bearish forecast is based on the questionable assumption the Fed will hike interest rates 3 times next year (ironically, it was an interest rate hike last December – the first in nearly a decade – that brought Gold outs of its bear market)…
“For 2017 and 2018, we think that the biggest factor influencing the price of Gold is the expected path of U.S. interest rate hikes,” the analysts said. “Also, we do not expect further rate cuts by the European Central Bank or Bank of Japan as this is likely to damage their banking system, especially in the case of Europe.”
Natixis‘ economists are expecting to see the Federal Reserve raise interest rates by 25 basis points 3 times next year – June, September and December…
Although demand for Gold from physically backed ETPs has provided a substantial boost to prices, Dahdah and Miah expect the trend to reverse and for investors to become a source of supply of the metal. “At current levels, the total amount held in physically backed ETPs is equivalent to roughly 60% of 2015’s mined output and 47% of that year’s total production. As we saw in 2013 when 850 tonnes of Gold exited physically backed ETPs, the effect on Gold prices can be very negative,” they concluded…
In Today’s Morning Musings…
1. Kinross Gold (K, TSX) to acquire 9.5% ownership of Nighthawk Gold (NHK, TSX-V)…
2. Southern Labrador Trough update…
3. Gold Standard Ventures‘ (GSV, TSX-V) North Dark Star deposit continues to grow…
4. What’s next for the TSX Gold Index?…
Plus more…click here to read the rest of today’s Morning Musings and all BMR exclusive content, through a risk-free Pro, Gold or Basic package, or login with your username and password…
From a TA standpoint:
AIX is looking good if it drops a little more and extends out a week or two in the chart holding down some, it could pop up nice again.
AMY forming a nice bullish flag triangle. The chart could be good timing on expected news in a week or so.
Both worth watching.
Comment by dave — October 13, 2016 @ 12:39 pm
I see ggi has added e&L, psp, and king to their site under projects Canada, maybe Steve is getting closer to telling everyone something, dated October 14 / 16.. Interesting….
Comment by Laddy — October 13, 2016 @ 2:36 pm
oct 14 – newest rumoured date for a NR, and the updated website as you’ve noted, hopefully will have some new comments soon about what they found in the 3 mths since they started at PSP or in the 2 mths since King work program was announced.
Comment by david — October 13, 2016 @ 7:31 pm
Long awaited nr, GGI…
Comment by Laddy — October 14, 2016 @ 4:16 am
Massive sulphide Ni-Cu-Au deposit, I’ll take it…lots of room for growth and given the known high concentration of metals over small footprints in this district, the source of the high-grade Ni-Cu could be the 600-m long “tail” (fascinating feature of the broad magnetic anomaly) south of the historic adit…great story here with strong geological merit for GGI…will be interesting to see what the channel sampling of the massive to semi-massive pentlandite, chalcopyrite, pyrrhotite and bornite returns both in terms of grade and total sulphide content…hopefully this is the start of updates that also touch on the rest of B.C. and Mexico which of course is long overdue…
Comment by Jon - BMR — October 14, 2016 @ 4:32 am
GGI – love it – another project started without any fanfare or NR (other than a very small note in the initial acquisition NR) and the ones we know about, well, we are getting there. GGI is so pregnant with projects it isn’t funny. If only someone would help pay to ‘father’ these projects, we could see them advance past interesting targets. Well the big boys all had their trips around the Triangle this summer, be interesting to see if any of them can put up some cash for next year. Duterte is going to help out projects like E+L if there is something worth chasing there
Comment by david — October 14, 2016 @ 5:44 am
I would agree, David, and what I anticipate may happen here is that some astute financiers, perhaps involved in the Nickel space, are going to latch on to GGI given this situation at the E&L, and that would be a serious game-changer for the company…the Ni grades are already the highest found anywhere in B.C., outside of the old Giant Mascot mine, and the probability of an intense massive sulphide accumulation that was overlooked historically is very real as explained this morning…
Comment by Jon - BMR — October 14, 2016 @ 5:56 am
MOC closes its $19 million private placement (attractive new Zinc play), assuming they close the deal on El Mochito…
Comment by Jon - BMR — October 14, 2016 @ 6:30 am
DAVE, keeping my eyes on AMY and I bought some KLG.
I personally would never buy GGI, ever again. Good luck to everyone.
Comment by omega — October 14, 2016 @ 12:24 pm