TSX Venture Exchange, Gold & Overall Markets
The Venture performs best when the U.S. dollar is stable or under pressure which helps explain the consolidation phase the Index has been trapped in since mid-August. The Dollar Index last week hit its highest levels in almost 9 months before a smack-down on Friday on news the FBI has re-opened its investigation into Hillary Clinton’s private email server. This injects a new dynamic into the November 8th elections and opens the door for a Donald Trump victory, an outcome that would shake the Washington establishment to its knees and alter the course of American history. Get ready for an Epic Battle over the next 10 days.
This has all the makings of a “Perfect Storm” for Gold that could power the metal $200 or more to the upside. That’s one distinct possibility. The other possibility is that Clinton manages to dodge this late threat to her campaign and squeeze out a hard-fought victory November 8 to maintain the “status quo”, but then what about after Election Day? Not only would she be the most unpopular President-elect in U.S. history, she would also be under investigation by the FBI (unprecedented for an incoming President) and a bigger target than ever for Republicans in Congress. That would increase the probability of even more dysfunctionality and gridlock in Washington, a scenario that could easily continue to hamstring the Fed and prevent it from raising rates before year-end as most investors currently expect. That, too, would be bullish for Gold.
It’s hard to see how Gold can lose over the final 2 months of the year, so keep that in mind as you examine your portfolio.
Monday, the final trading day of the month, is Halloween. How fitting after Friday’s events as the “fear factor” that Gold so often benefits from, like it did during Brexit, comes back into play.
Today’s Week In Review and A Look Ahead includes the top performers on the BMR Top Opportunities List last week, one of them being Almadex Minerals (AMZ, TSX-V) which jumped 44% as investors increased their bullish bets on the company’s El Cobre Gold-Copper Porphyry Project in eastern Mexico following a drill hole that returned an interval of 218 m grading 0.70 g/t Au and 0.28% Cu. Two drill rigs are currently in action at El Cobre, one at the Norte zone discovery and the other about 3 km to the south at another target.
Click here to read the rest of today’s Week In Review And A Look Ahead, and learn more about where the Venture is headed in the coming weeks, with a risk-free Pro, Gold or Basic subscription featuring a 100% money-back guarantee, or login with your username and password.
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Comment by STEVEN1 — October 29, 2016 @ 2:08 pm
With all the information coming out over the weekend, I would think it will be very interesting to see what gold and the US dollar will do when over night trading begins this afternoon, maybe the wild ride is about to begin, gold to the upside….
Comment by Laddy — October 30, 2016 @ 5:49 am
I would agree, Laddy…I also believe the mainstream media is still in complete denial about the possibility of their preferred candidate (Clinton) losing this election, so it may take a few days yet before reality starts to sink in…by mid-week there should be new polls that take into account the post-Comey factor, then watch CNN, the NY Times and others go crazy…that’s when Gold could really take off…just how accurate the polls are is another question as they may have been underestimating Trump support going into Friday…
Comment by Jon - BMR — October 30, 2016 @ 6:05 am
GRK – sampled and assayed samples up to 42g AU at Surprise Lake, Atlin BC, this past month. making plans for drilling in 2017 and waiting for more BCGS samples to be reported.
Comment by david — October 31, 2016 @ 5:59 am