Gold has traded between $1,248 and $1,256 so far today…as of 11:50 am Pacific, the yellow metal is up $1 an ounce at $1,253…Silver is flat at $18.16…Copper and Nickel are also both unchanged at $2.65 and $4.48, respectively…Crude Oil has jumped $1 a barrel to $49.37 while the U.S. Dollar Index has rallied one-third of a point to 100.05…
The U.K. government’s triggering of Article 50, which will start Brexit negotiations with the European Union, and the upcoming French elections are lending support to Gold but traders are still searching for a catalyst that will drive prices through critical resistance in the $1,260’s…
Gold miners could use a further sustained increase in prices beyond the 9% gain so far this year…Citi predicts that all-in-costs for miners have generally bottomed. “The past 3 to 4 years’ austerity measures – high-grading, capex cuts, exploration cuts – are about to unwind. Those will either unwind or production will fall, which in turn should drive unit costs sharply higher.” Specifically, Citi said its analysis suggests that around 27% of the industry “burnt” cash in the quarter ending December, compared with 44% in the quarter ending December 2015…
TSX Gold Index Update
Gold producers do need a near-term breakout in the Gold price through the $1,260’s in order to capture fresh momentum…certain aspects of this 5-year weekly chart are positive; however, the 200-day moving average (SMA-40) at 223 is now starting to decline while the 50-day (MA-10) has flattened out at 213…hence, those have been areas of resistance this quarter but the Gold Index has still managed to climb a very respectable 8.2%…
What to watch for…
Key breakout level for the Gold Index is in the low 230’s (Fib. and 200-day) while the metal of course faces its biggest challenge in the $1,260’s…
The Gold Index is up 1 point at 210 as of 11:50 am Pacific…
In Today’s Morning Musings…
1. Granada Gold – lots more of it!…
2. Look what’s “BLO‘ing” as spring begins! – what happens when…
3. Checking up on discovery at Lac La Hache…
4. Daniel’s Den – updates on PRG, CDG and SRL – and what is “buddingtonite?”…
Click here to receive, via email, BMR’s “Who’s Who” List of the Greater Cobalt Camp – the top dozen or so companies active in the district.
Did you know that for as little as just over $2 a day, you can be a BMR subscriber and tap into the best analysis and picks for the junior resource sector that you’ll find anywhere? Last year’s BMR Top 50 List returned a whopping 118% and we are delivering market-trouncing returns again in 2017. BMR was the first to call the new bull market in the Venture in early 2016, and our coverage of the commodities space gives you valuable daily insights into price movements and critical trends. BMR is daily information that puts you ahead of the crowd!
We also give first-time subscribers an industry-leading 100% money-back satisfaction guarantee. If you don’t believe BMR has helped you make money for your first 6-month subscription period, we’ll refund your subscription fee in full – no questions asked!
To read the rest of today’s Morning Musings, sign up NOW or login as a current subscriber with your username and password.
