Gold has traded between $1,266 and $1,277 so far today…as of 11:00 am Pacific, the yellow metal is off its lows of the day and down just $9 an ounce at $1,275…Silver has recovered, now off just 2 pennies at $17.88…Copper is flat at $2.54…Nickel has eased off 4 cents to $4.17…Crude Oil has retreated another 37 cents to $49.25 while the U.S. Dollar Index has added one-fifth of a point to 99.16…
Results from yesterday’s 1st round in the French presidential elections took some of the risk premium out of Gold, but bullion has nonetheless held up quite well today and has other factors in its favor…centrist Emmanuel Macron took a big step toward the French presidency by winning the first round of voting, with the latest opinion polls making him a strong favorite to beat National Front candidate Marine Le Pen in the May 7 run-off…overall, yesterday’s results were a setback for the left in France and that’s happening elsewhere in Europe, as well, to go along with the trouncing of the Democrats in last November’s U.S. elections…
Large speculators built their bullish positioning in Gold futures to a 5-month high last week, so there has likely been some healthy unwinding of that today…
Analysts at Commerzbank pointed out that the 14% jump in net-long positioning was the 5th consecutive weekly increase, during which time net-long positioning increased 3-fold. “This had clearly generated a correspondingly high degree of correction potential,” Commerzbank added…
Gold Secular Chart
Investors again bought the dip in Gold this morning with bargain hunters stepping in at solid support in the mid-to-upper-$1,260’s…
That’s not the only thing to be encouraged about with regard to bullion…
Below is a 50-year chart from John whose track record on Gold is as good as anyone in the business…
Note the recurring chart and indicator patterns…
A great example is RSI(14)…since 2013, as Gold worked its way toward a bottom at $1,045 in late 2015, the RSI(14) pattern has been almost identical to the one that immediately preceded a major advance in bullion starting in 2001…
Also of significance is the fact that sell pressure (CMF), dominant from 2014 into 2016, has transitioned into weak buy pressure…that’s a major change in trend that was last seen in 2002…
The key takeaway here, though it’s not a mainstream view, is that Gold is in the early stages of a major new bull market…exactly how much longer it’ll take for the masses to appreciate this is impossible to predict, but odds are that bullion will register strong gains over the next 2 years and beyond…Gold stocks aren’t trading at levels that take this trend into account…last year’s $200+ correction was a head fake…
Oil Update
It’s a continuing battle between the bulls and the bears on in the Crude market…positive news this morning about Iran’s exports hitting a 14-month low are being weighed against rising U.S. production…it was reported on Friday that in the week to April 21, U.S. drillers added Oil rigs for a 14th week in a row, to 688 rigs, extending an 11-month recovery that is expected to boost U.S. shale production next month by the most in more than 2 years…since a trough in late May, 2016, U.S. producers have added 372 Oil rigs, a rise of 188%, Goldman Sachs reported…meanwhile, U.S. production is at 9.25 million bpd, up almost 10% since mid-2016 and approaching that of OPEC’s top exporter Saudi Arabia…
In Today’s Morning Musings….
1. Technology play PyroGenesis Canada (PYR, TSX-V) surges 50%…
2. Game-changer financing for Deveron UAS (DVR, CSE)…
3. What’s next for Silver?…
4. Daniel’s Den – Valuable trading tips!…
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Well, updated Fact Sheet on GGI, maybe gettin’ closer!
Comment by Laddy — April 24, 2017 @ 1:17 pm
Daniel – thank you!!and here I thought I was right to hold onto a sinking ship:)
Comment by Jeremy — April 24, 2017 @ 2:46 pm
Flying the vtem this week, right on get er done!!!
Comment by Laddy — April 24, 2017 @ 3:21 pm
That’s what the fact sheet states – VTEM last week of April – This is the last week. Wonder will they issue a NR or just issue one when the VTEM is completed announcing positive results? It will take time to analyze them; however will know immediately if the area lights up like a Christmas tree. Should be an exciting week!
Comment by Dan1 — April 24, 2017 @ 5:52 pm
GGI Insider buying
https://www.canadianinsider.com/company?ticker=GGI
Comment by lashbee — April 25, 2017 @ 4:33 am
GGI. Makela stepped up and bot 103k at. 16. First new bd member to do it
Comment by david — April 25, 2017 @ 5:17 am
Yes Dan1, also email confirming, scheduled this week, hum, hope gold holds support, gezz.
Comment by Laddy — April 25, 2017 @ 6:06 am
Yup, Makela buying GGI on the open market at 16 cents.
Comment by Dan1 — April 25, 2017 @ 6:30 am
A good point that Jon made about this VTEM is the most exciting part. GGI already knows there is a deposit here, its been proven by drilling. However, if the VTEM shows similar signatures elsewhere that are the same as the know deposit it is game on. A huge advantage as far as I’m concerned. You don’t really have a guessing game as far as what those signatures would be showing, it would be a very high probability that it would be sulphides. Also with some insider buying from Makela, just icing on the cake.
Comment by weatheritout — April 25, 2017 @ 7:02 am
And those filings from Makela were filed yesterday for buys on the 18th. and 19th of April. We’ll see if any buying from him continues to be filed.
Comment by weatheritout — April 25, 2017 @ 7:08 am
Good morning Gents, any word on CSR? Do you still anticipate news this week?
Comment by Phil — April 25, 2017 @ 8:17 am
ggi – or others
Comment by dave — April 25, 2017 @ 8:34 am
AUT looking strong this morning, 7-month high at 4 cents. The accumulation in this play on no news since the middle of last year has been amazing.
Comment by Jon - BMR — April 25, 2017 @ 8:51 am
Phil, CSR’S moment is coming…there are a lot of moving parts to that also cross over into technology as we outlined in Northern Ontario Gem, so this is definitely an exciting play in the making that is well beyond your normal exploration story…what I understand is that they’re close to putting news out but they’re determined to do it right…
Comment by Jon - BMR — April 25, 2017 @ 9:00 am