Gold has traded between $1,227 and $1,236 so far today…as of 11:30 am Pacific, bullion is down $2 an ounce at $1,233…Silver is off 3 pennies at $17.67…Copper has retreated slightly to $2.62…Nickel has eased off 3 pennies to $4.69…Crude Oil has slipped $1 a barrel to $52 while the U.S. Dollar Index has gained one-third of a point to 100.29…
The greenback rallied today as the euro came under pressure due to the biggest monthly drop in German industrial production in nearly 8 years in December…weaker output in manufacturing and construction dashed prospects for robust growth in the final quarter of 2016…it’s also not helping the euro that anti-establishment candidate Marine Le Pen is gaining momentum ahead of France’s presidential election in just over 2 months’ time…
China’s foreign exchange reserves are down again, falling below the closely watched $3 trillion level in January for the first time in nearly 6 years even as authorities tried to curb outflows by tightening capital controls…some analysts fear a heavy and sustained drain on reserves could prompt Beijing to devalue the currency – an event that surely would not go over well with the new Trump administration…the yuan fell 6.6% against the rising dollar in 2016, its biggest annual drop since 1994…for 2016 as a whole, China burned through nearly $320 billion of reserves, on top of a record drop of $513 billion in 2015…
Calendar Q4 earnings in the U.S. have mostly surprised analysts with more than 65% of firms reporting better-than-expected earnings according to data from The Earnings Scout…
Oil Update
Today’s jump in the U.S. dollar and concerns that rising U.S. shale Oil production may offset a move by major Oil producers to cut global supply put pressure on Crude today…however, it’s our view that markets haven’t yet factored in the risks associated with a rapidly deteriorating U.S.-Iran relationship that has risen to the top of the new Trump administration’s foreign policy challenges…there’s nothing like a Middle East “risk premium” to give Oil prices a big lift…in dealing with Iran, Trump will find an important ally in Saudi Arabia…
New support for WTI has formed at and just above $50 a barrel since December’s breakout after OPEC and other major producers agreed to cut output by almost 2% last November…unlike with past production cut deals, participating countries are (so far) sticking firmly to their output quotas…if fully implemented, the deal could wipe out about 1.8 million barrels a day from the global daily supply (1.5 million bpd has been taken out already) and theoretically push the market into a supply shortage as early as the 3rd quarter of this year…while there are many moving parts to the demand-supply equation, it’s hard not to be bullish on Oil…geopolitical dynamics (a U.S.-Iran confrontation) could really light a fire under Crude and easily send it into the $70’s or higher…
Investors, however, remain wary of rising output from countries outside the production cut deal, including the U.S., which could wipe out the gains made by OPEC’s supply action…
In the U.S., drillers put 17 more Oil rigs to work last week according to Baker Hughes, bringing the total to 583…
In Today’s Morning Musings…
1. LiCo Energy Metals (LIC, TSX-V) – the Lithium-Cobalt double play – surges to a new high…
2. Updates on Purepoint Uranium (PTU, TSX-V) and Tinka Resources (TK, TSX-V)…
3. A profitable Venture natural gas play under 6 cents…
4. RJX Explorations (RJX.A, TSX-V) shows promise at Maude, drilling 14 m @ 5.4 g/t Au near-surface…
5. Daniel’s Den – wearable technology and the stronger than ever case for Kopin…
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DBV watch for a halt.
Drill Results
Comment by TheSkipper — February 7, 2017 @ 12:05 pm
DBV-Farshad indicated early next week.
Comment by Robert — February 7, 2017 @ 12:22 pm
Hey Skipper – rumours circulating that results aren’t even back from the lab yet, so this comes as a shock (albeit a good one)….hope you are right about a HALT. Lots of eyes on these assays. Let’s hope they are as good as the speculation suggests.
Comment by Steve A. — February 7, 2017 @ 12:44 pm
Hahahaha DBV is always ” next week ” , give me a break it will be perpetually next week till Easter at this rate if we’re lucky . Not even worth getting exited for these false promises , been a lot of ” next weeks ” . Wake me up if this thing catches up to Ggi
Comment by T — February 7, 2017 @ 4:41 pm
DBV sit tight many will be super surprised even the last comment by T
GLTA
Comment by TheSkipper — February 7, 2017 @ 5:53 pm
What about an updated chart on HIT. I think they are gearing up to announce decent revenue later this month. Starting to get a little bit of interest.
Comment by Ed — February 7, 2017 @ 5:59 pm
Jon, when are you going to release a more in depth interview with Goldie and Makela. So far all we got are 2 short clips.
Comment by Dan1 — February 7, 2017 @ 7:00 pm
Soon, Dan1, working on it.
Comment by Jon - BMR — February 7, 2017 @ 7:28 pm
Skipper, we’ll see. I wouldn’t mind being suprised in a good way with Dbv.
Comment by T — February 7, 2017 @ 7:47 pm
Skipper – your last comments indicate you know something. So if the results are not even back from the lab yet, how can you make such a comment. Just curious.
Comment by dave — February 7, 2017 @ 8:48 pm
LIC – news this morning on Teledyne project. 3D model on the way. More newsflow to come should positively impact share price.
Comment by Foz1971 — February 8, 2017 @ 7:00 am
Hello Jon,
Just saw the ‘comment no.6’…..I looked at HIT.V and find it pretty interesting ! Is it any past articles concerning this stock and do you plan to have a look at it in a near future ?
Thank you
Comment by Sylvain — February 8, 2017 @ 12:44 pm