Gold has traded between $1,230 and $1,245 so far today…as of 10:45 am Pacific, bullion is up $4 an ounce at $1,237…Silver is flat at $17.68…Copper is up 3 pennies to $2.65…Nickel has added 4 cents to $4.72…Crude Oil has reversed higher, gaining 23 cents to $52.40 while the U.S. Dollar Index is off marginally at 100.29…
Holdings of SPDR Gold Trust, the world’s largest Gold-backed exchange-traded fund, climbed 1.01% to 826.95 tons yesterday for the 5th straight day of gains…
Guess who’s back into Gold?…after exiting his entire Gold position by the night of the U.S. elections November 8, widely followed billionaire investor Stanley Druckenmiller said he started buying Gold in December and January. “I wanted to own some currency and no country wants its currency to strengthen,” he said in an interview with CNBC yesterday. “Gold was down a lot, so I bought it.”
When Druckenmiller sold all of his Gold by early November, and let the world know about it, he undoubtedly took some bullion followers with him…the metal plummeted from a high of $1,340 on the night of Trump’s victory to a low of $1,124 in early December as extreme oversold conditions gripped the market…the sell-off, though, did not impact the broader positive trend that started after the bear market low in late 2015…one only has to look at the behavior of the Venture to understand that Gold remains in a strong bull cycle and that the November-December weakness was merely a “head fake” that fooled a lot of investors…
Oil Update
A big increase in U.S. Crude inventories, reported yesterday by the American Petroleum Institute (API), and a slowdown in Chinese demand for 2016, revealed in statistics released this morning, put some downward price pressure on WTI yesterday and this morning but astute traders bought the dip…this is a very bullish market but some haven’t figured that out yet…
Crude inventories rose by 14.2 million barrels in the week to February 3 to 503.6 million barrels, according to API, compared with analysts’ expectations in a Reuters‘ poll for a 2.5 million barrel increase…Goldman Sachs‘ analysts said that the data pointed to “U.S. gasoline demand falling sharply by 460,000 barrels per day (bpd) year-on-year in January, with such declines only previously (seen) during recessions”…the Goldman group has a flair for trying to stoke fear into a market, usually when they want to be buyers…
Inventory data from the Energy Information Administration, released just a short while ago, wasn’t quite as negative as API’s and Crude quickly rebounded…
Yesterday, the EIA said that it expects U.S. Crude production to grow by 100,000 bpd to 8.98 million barrels this year, 0.3% less than previously forecast, but expects production to jump by 550,000 bpd in 2018…
OPEC, for the time being at least, is not greatly concerned with rising American output. “The market is gradually accommodating for shale Oil as well as shale gas – the demand is healthy. With that continuous demand increase I think all available oils are going to be accommodated,” Qatari Energy Minister Mohammed al-Sada told Reuters today…
Meanwhile, China’s 2016 Oil demand grew at its slowest pace in at least 3 years according to Reuters‘ calculations based on official data…China’s implied Oil demand growth eased to 2.5% to 2016, down from 3.1% in 2015 and 3.8% in 2014, led by a sharp drop in diesel consumption and as gasoline usage eased from double-digit growth…
In Today’s Morning Musings…
1. Another sign of the “frenzy to come” in Cobalt stocks…
2. Updates on the TSX Gold Index and the HGU…
3. Daniel’s Den – “doing the hard things” makes you money!…
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XTM, very very high grade gold samples. Low float and
marketcap, also super promising platinum and paladium
Prospects!
Comment by Tran — February 8, 2017 @ 12:42 pm
Start a new streak tomorrow on the v. Jon,, nice little pullback on GGI, took advantage..
Comment by Laddy — February 8, 2017 @ 1:18 pm
Hope Ggi releases the 3D soon and we get some new eyes following this play so we can hopefully get some good follow thru and break thru 20 cents….
Comment by Greg — February 8, 2017 @ 7:25 pm