Gold has traded between $1,219 and $1,265 so far today…as of 10:30 am Pacific, bullion is down $34 an ounce at $1,225…Silver has plunged $1.23 an ounce to $17.35…Copper is relatively flat after soaring as high as $2.73…Crude Oil is off $1.12 a barrel to $43.54 while the U.S. Dollar Index has climbed one-fifth of a point to 98.97…
Not unlike last year at this time, Gold is suffering at the moment from heightened expectations that the Federal Reserve will increase interest rates at its December meeting…not only would this allow the Fed to “save face” after not increasing rates at all so far this year, contrary to its guidance in December 2015, but Ma Yellen and crew should feel more comfortable that the “fiscal vacuum” in Washington that has persisted for several years has finally been filled by a Republican-controlled White House and Congress…just before or immediately upon a rate hike in December, Gold would almost certainly reverse higher…it’s hard to imagine Gold performing poorly in an environment of anticipated higher U.S. deficits and a potential inflation bump…
Traders this week across all markets have been repositioning their portfolios in favor of what they view as Trump Administration policies…this will continue to evolve and helps explain the biggest move during a single week in Copper since 1980 (the “Trump Infrastructure Bet”)…in some cases, seemingly quiet trading on the surface in some markets masks the turbulence that’s going on underneath…
Notably, the tech-heavy NASDAQ has been conspicuously left out of the rally in U.S. markets since Trump’s historic win Tuesday… the NASDAQ 100, an index of the largest non-financial stocks on the NASDAQ, is down 1.2% (through yesterday) since the Trump election, lagging the 1.3% rally by the broader S&P 500 and the 2.6% rise by the Dow…technology issues have underperformed the rally…
Citi on Gold this week: “Perhaps the conciliatory speeches from Mr. Trump, Mrs. Clinton and Mr. Obama played a part in calming investor nerves, but the immediate reaction was not a Brexit-style event for Gold either from a spot price or vol perspective for more than a few hours. “The bullish short-term bullion view that Citi outlined on a Trump victory will probably not materialize, especially on a smooth transition of power and given the current strong U.S. dollar trend. The medium-term Gold outlook might even be a bit negative for prices on a Trump presidency.”
Kirkland Lake Gold (KLG, TSX) Halted, Opportunistic Bid
Reuters is reporting that South Africa’s Gold Fields and Silver Standard Resources (SSO, TSX) have made 3 joint, unsolicited bids for Kirkland Lake Gold (KLG, TSX) and recently sweetened their offer to about $1.4 billion ($1 billion U.S.)…the latest bid has also been rebuffed, said the Reuters‘ sources, who requested anonymity as the issue is confidential…the names of the bidders have not been previously disclosed…
The latest offer for Kirkland Lake represented a premium of more than 50% of its value yesterday…KLG fell as low as $7.35 this morning before a rush of buy orders came in on the Reuters‘ report…it last traded at $8.04…
What does this say about Gold stocks? – they are now undervalued!!…
Another candidate for a potential takeover is Richmont Mines (RIC, TSX)…
Crude Oil Update
OPEC reported today an increase in its output to another record high, pointing to an even larger surplus on the market next year…it said it pumped 33.64 million barrels per day (bpd) last month, up 240,000 bpd from September…that means the cartel, beset by geopolitical squabbles among some of its 14 member states, would have to cut up to a million bpd if it makes good on its promise to reduce its output to between 32.50 million bpd and 33.0 million bpd…meanwhile, the International Energy Agency (IEA) said the supply overhang could run into a third year in 2017 should OPEC fail to act at its meeting at the end of this month…the Saudis are anxious to prop up prices to limit the bleeding in their budget – we expect them to put a deal together…
In Today’s Morning Musings…
1. Garibaldi Resources (GGI, TSX-V) breaks out on confirmation of high tenor Nickel-Copper-rich system in Heart of Gold Camp, 10 miles southwest of Eskay Creek…
2. Canadian Zeolite (CNZ, TSX-V) hits new high…
3. Important updates on Gold and the Venture…
4. A Venture Copper producer to watch closely…
5. Daniel’s Den – Precipitate Gold (PRG, TSX-V) update plus new features coming to BMR…
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…
Jon hospital stocks have been crushed since trump won the election. Especially Tenet healthcare (THC) which is down 30% since the election (dropped much more than other competitors) and is actually down 75% since summer 2015. Is it almost time to get in? What are your thoughts? TA would be appreciated also. Thanks
Comment by Sameer — November 11, 2016 @ 11:04 am
Hi Sameer, little off the topic of hospitals, but a stock called “Health Insurance Innovations (HIIQ)” is cruising higher (a pullback would be nice) because Obama’s administration wanted to put them out of business, it competed too good against the Affordable Care Act. Also “Teladoc (TDOC)” is proving to be an important tool/platform for hospitals and non-emergency care, mental health will be a yuuuge market! Endorsed by AARP and Hospital Association.
Comment by Daniel — November 11, 2016 @ 11:45 am
E & L, NICKEL MOUNTAIN, SNIPPAKER CREEK
http://minfile.gov.bc.ca/Summary.aspx?minfilno=104B%20%20006
Comment by TheSkipper — November 11, 2016 @ 12:15 pm
Nice research Skipper, bids building at .11 on GGI, looks like we are going higher. Might get some late day buying as people trying to position themselves for next week.
Comment by Danny — November 11, 2016 @ 12:30 pm
Great day for GGI, Danny, as it busts through critical long-term resistance. Interesting days ahead – much more to come out of the E&L and a lot of new eyes on this which is very positive.
Comment by Jon - BMR — November 11, 2016 @ 3:24 pm
BLO News.
Cannabix Technologies Releases Images of Beta 2.0 Cannabix Marijuana Breathalyzer
Comment by John - BMR — November 11, 2016 @ 3:37 pm
Sameer
THC is going thru’ support like a hot knife thru’ butter.
There is L/T support between 12.24 and 10…but don’t count on it. I advise you to watch and let it find its own bottom first.
Protect your capital from falling knives….first rule of investing.
Comment by John - BMR — November 11, 2016 @ 3:55 pm
I told you there would be rioting in the streets if Trump won
Disgusting, where are the cries now that First Lady Michele Obama says if they go low we go high!
Bunch of hypocrites … Get over it the American people have spoken and loudly… Sheesh
Comment by GREGH — November 11, 2016 @ 7:08 pm
GREGH, it was a very divisive campaign, almost a tie in the popular vote. I think there would have been worse things happen if Clinton won with Trump’s talk of a rigged election. Looks to me like a pretty peaceful protest, not a riot. Now the KKK in North Carolina is planning a parade in honour of Trump, now that could turn into a riot.
Comment by Danny — November 11, 2016 @ 8:10 pm
Danny
Bashing in cars and beating up Trump supporters is not what I call peaceful…
When Obama was elected you Did not see protests blocking major freeways or anything like what is going on now
The Dems are just sore losers , like I said get over it the people have spoken and in a landslide ….
Comment by GREGH — November 11, 2016 @ 9:30 pm
Protesting in downtown Vancouver also!!
Comment by GregJ. — November 12, 2016 @ 7:27 am
Ggi looking great Jon, managed to top up right at the open yesterday at 9.5, whew perfect. Should move up nicely next week and continue. Obama is still president and he’s the one that should address the American people on national television. Tell the public to get over it and move on, the world is not coming to an end. Oh poor little Miley,rich spoiled brat, suck it up!!!unreal.
Comment by Laddy — November 12, 2016 @ 7:37 am
Thanks John, very much appreciated
Comment by Sameer — November 12, 2016 @ 8:07 am
GREGH, bottom line, I agree, time to move on. I was not a fan of either candidate but I wish Trump the best, he has a big job ahead of him. A strong economy will benefit everyone so I hope he does well in that regard. Maybe that pipeline will finally get approved which will benefit Canada.
More importantly go GGI! It also looks like CLE has bottomed hopefully, picked up a few more at .06
Comment by Danny — November 12, 2016 @ 8:27 am
Hi Greg,J., I think I inadvertently precipitated that…some lefties seemed to take exception to my red hat (lol)…so much for their talk about “tolerance”!
Comment by Jon - BMR — November 12, 2016 @ 8:35 am
Now we should put an enormous amount of pressure on Trudeau and make up red hats and slide the word NORTH in there.
Comment by Laddy — November 12, 2016 @ 10:21 am
Jon, I’m not sure its about the lack of ‘tolerance’ for a red hat as much as it is the blatant bias in for a forum which should be objective and financial in nature. Yes, politics influence markets, but buying into the name calling, using of broad, partisan-based generalizations, and adding in personal barbs/commentary only makes BMR’s excellent investing service seem less professional.
Comment by Johnz — November 12, 2016 @ 2:02 pm
I believe we’ve been far more objective than the mainstream media, Johnz, because almost all the mainstream media (including the financial press) had such inherent bias and blinders on – even WORSE here in Canada – that they completely dismissed the possibility of a Trump victory Tuesday and of course the impact that could have on markets going forward…the name calling – wow, that has come almost entirely from the other side…what’s important right now, however, is for everyone to accept this outcome, whether they like it or not, and understand through objective analysis how it’s going to effect investments and the markets in the months ahead…I’m a partisan in the sense I’m flat-out against socialism and the way things have been drifting in North America…guilty as charged on that front, but I’ll wear that badge with honor…
Right now it’s critical to concentrate and focus like a laser beam on how we can all take advantage of this week’s events to make money. That’s all that matters, and that’s exactly what we’re going to do.
Comment by Jon - BMR — November 12, 2016 @ 2:59 pm
Danny
You are correct time to move on
I wasn’t a fan of either Candidate either, but a I am even a lesser fan of socialism and that is where this country was headed under Obama/Hillary.
Go GGI!!
Comment by Greg — November 12, 2016 @ 4:56 pm
Well said Jon. I couldn’t agree with you more.
Comment by pole — November 12, 2016 @ 4:58 pm
Rumours circulating that Chelsea may run for office..
Comment by GregJ. — November 12, 2016 @ 5:23 pm
Laddy
You hit the nail on the head where is Obama ? He should be taking control
But I’m not surprised at all as he is the reason for all the division in the first place
8 yrs of no leadership is why we have this mess and division in the first place, his lack of leadership and his royalty attitude is why this country is do divided right now and why Trump was elected, the people are tired of it!
Comment by Greg — November 12, 2016 @ 5:39 pm
Rumours that trump will be turfed bythe party as a result of the numerous, 75, lawsuits that will either impeach or impede his ability to govern and pence will be the man.gonna be a gong show for a while
Comment by David — November 12, 2016 @ 8:04 pm