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TSX Venture Exchange and Gold

The Venture has posted 3 straight weekly gains and has remained above key resistance at 784 for 7 straight sessions, setting the stage for a potential near-term acceleration of the new uptrend that began immediately before Christmas.

Strong uptrends require leadership from certain sectors, and there’s one sector that’s likely to kick into gear again to give the Venture another boost during this 1st quarter of 2017.

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Gold has traded between $1,187 and $1,202 so far today…as of 10:45 am Pacific, bullion is up $1 an ounce at $1,196…Silver is flat at $16.75…Copper has jumped another 4 cents to $2.67…Nickel has rebounded 6 cents to $4.74…Zinc is up 3 cents to $1.26 as it closes in on a new multi-year high…Crude Oil is off 42 cents a barrel at $52.59 while the U.S. Dollar Index is down one-tenth of a point to 101.30…

Gold has enjoyed a strong week as investors have been reminded that politics, even at the best of times, doesn’t move at the speed of markets…President-elect Trump will be inaugurated a week from today and, not surprisingly, parts of the Washington establishment have been working feverishly through the mainstream media to delegitimize his election victory and undermine his ability to govern before he even steps into the White House…with the CIA as one of the culprits, this really changes the dynamics for bullion in 2017…we’ll explore that in more detail over the weekend…

A new poll from Gallup shows a nation very divided…just 44% of Americans approve of Trump’s Presidential transition efforts while 51% disapprove…by contrast, 83% approved of President Obama’s transition in 2008…even George W. Bush, who like Trump lost the popular vote, enjoyed a 61% approval rating of his transition as he prepared to enter the White House…

China’s Exports Show Worst Fall Since 2009

China’s exports slumped more than expected in December as global trade remained sluggish while the growth in imports also cooled, according to official data released today…

For the month, exports decreased 6.1% on-year in dollar-denominated terms compared with a 0.1% increase in the previous month…meanwhile, imports rose 3.1% from a year ago, down from November’s 6.7% growth…for 2016, Chinese exports dropped 7.7% on-year, the worst fall since 2009, while imports declined 5.5%…that left the world’s second-largest economy with a 2016 trade surplus of $509.96 billion…in yuan terms, 2016 exports dropped 2% on-year while imports picked up 0.6%…

U-Turn

The spot price for Uranium shot 10% higher this week, climbing above $24 a pound for the first time since last September, after Kazakhstan state nuclear-fuel company NAC Kazatomprom JSC said the country won’t produce as much Uranium as planned this year…the retreat by the world’s biggest supplier is the most significant step yet toward rebalancing a market that has been flooded with supplies since the 2011 disaster at Japan’s Fukushima Daiichi Nuclear Power Plant removed a key buyer from the market and tarnished Uranium’s reputation globally…before the accident, Japan was the world’s No. 3 generator of nuclear power, behind the U.S. and France…

Kazakhstan will reduce planned production of Uranium by roughly 10%, or more than 5 million pounds, in 2017…that is equal to about 3% of global output or more than the annual output of the United States…Kazakhstan accounts for almost 40% of world Uranium production…

In Today’s Morning Musings…

1. The move to come in the TSX Gold Index…

2. Updates on 3 high-quality non-resource plays…

3. Today’s easing of U.S. sanctions against Sudan further strengthens the case for Orca Gold (ORG, TSX-V)…

4. Daniel’s Den – Friday footnotes, a rapid rundown on 8 stocks…

Plus more…click here to read the rest of today’s Morning Musings and all BMR exclusive content, through a risk-free Pro, Gold or Basic package, or login with your username and password…

Check back later this morning for today’s BMR Morning Market Musings.

1. After passing $1,200 an ounce yesterday for the first time since late November, Gold has pulled back $6 an ounce to $1,189 and just below its 50-day moving average (SMA) as of 7:00 am Pacific…despite this morning’s profit taking, the underlying trend in bullion has turned bullish this week as we showed in a key chart yesterday…

2. Base metals are slightly higher this morning with Copper touching $2.64 despite disappointing Chinese trade data overnight…exports in December decreased 6.1% on-year in dollar-denominated terms while imports rose 3.1% from the previous year…

3. U.S. consumer sentiment hit 98.1 in January, slightly below expectations of a reading of 98.5…December’s reading was 98.2…meanwhile, U.S. retail sales increased 4% in November and December, topping an industry estimate that predicted they would rise 3.6%…

4. The Venture is off slightly at 789 as of 7:00 am Pacific but could still post a small weekly gain after surging as much as 12.2% from its December 20 low of 711…the TSX is up 34 points in early trading while the NASDAQ has hit a new all-time high…

5. The TSX Gold Index is on track for a possible slight gain this week as the technical picture has turned decidedly bullish for producers after December’s lows…we’ll have an updated chart in today’s Morning Musings…

6. AuRico Metals (AMI, TSX-V) has released an updated NI-43–101 estimate for the company’s 100%-owned Kemess East deposit…overall, the deposit contains Indicated resources of 113.1 million tonnes grading 0.38% cent Cu and 0.46 g/t Au, and Inferred resources of 63.8 million tonnes grading 0.34% Cu and 0.31 g/t Au…the updated resources in a high-grade core have increased by 250% since the previous estimate in March of last year…they now stand at 67.2 million Indicated tonnes grading 0.43% Cu and 0.60 g/t Au and 15.2 million Inferred tonnes @ 0.41% Cu and 0.51 g/t Au…AMI is unchanged at $1.17, just 9 cents off last year’s high…

7. NexGen Energy (NXE, TSX) continues to surge, hitting a new all-time high of $3.35 during the first 30 minutes of trading this morning…NXE neighbor Purepoint Uranium (PTU, TSX-V) is steady at 16 cents, up nearly 20% for the week…

Gold has traded between $1,196 and $1,208 so far today…as of 11:15 am Pacific, bullion is up $8 an ounce at $1,199…Silver has climbed 9 cents to $16.78…Copper has jumped 6 cents to $2.62…Nickel has rebounded 10 cents to $4.70…Crude Oil is up 76 cents a barrel to $53.50 while the U.S. Dollar Index has fallen nearly half a point to 101.21…

Many traders were looking for clarity from President-elect Trump on economic plans yesterday and didn’t get it – hence the dollar, which has been riding a wave of euphoria approaching the January 20 inauguration, sold off yesterday as uncertainty grew over the incoming administration’s pro-growth agenda and how quickly and effectively those plans can be implemented…no incoming President in modern American history has faced such opposition and hostility from the mainstream media and even certain members of the politicized U.S. Intelligence Community, and the departing Obama has also done his best to lay land mines and plant seeds of rebellion against Trump…meanwhile, some of Trump’s cabinet picks are facing some grueling confirmation hearings on Capitol Hill…the President-elect has his work cut out for him and governing in the early going at least will not be easy…

Fiat Chrysler (FCAU, NYSE) shares fell by as much as 18% today (losses have but trimmed in half as of 11:15 am Pacific) after U.S. environmental regulators, days before the end of the Obama administration, accused the company of using software that allowed illegal emissions in diesel-powered vehicles, the latest broadside in an unprecedented government crackdown on auto makers for alleged pollution transgressions…the EPA claims the illegal software allowed 104,000 recent diesel-powered Jeep Grand Cherokee sport utilities and Ram pickup trucks to spew toxic emissions beyond legal limits…

Oil Update

Crude Oil prices are once again working their way higher on some positive demand news out of China while Saudi Energy Minister Khalid al-Falih said today that the kingdom had cut production to its lowest in almost 2 years, a move that would help accelerate a rebalancing of the global Oil market…Falih told a conference in Abu Dhabi that global demand for Oil would grow by well over 1 million barrels per day (bpd) in 2017 and the market would tighten in 2 to 3 years…meanwhile, Kuwaiti Oil Minister Essam Al-Marzouq told the conference that Kuwait had already cut its Oil output by more than it promised under the OPEC deal, without giving further details…

China posted record car sales in 2016 with a total of 28 million sold vehicles, up 13.7% from 2015…reflecting China’s growing fuel consumption, its net Crude imports will rise 5.3% to 396 million tons (around 8 million bpd) in 2017, state-owned China National Petroleum Corp. (CNPC) said today…China’s Crude demand will hit a record 594 million tons this year (around 12 million bpd) according to CNPC…

Gold – “Dead Cat Bounce” Or Was The Post Election Slide Merely A “Head Fake”?

Some analysts have warned that Gold’s revival since mid-December is merely a “dead cat bounce” and that the dollar is likely to snap back with a vengeance once Trump moves forward with his economic plans…we’re not so sure…as we pointed out in a chart yesterday, there has been a significant loss of momentum in the greenback as demonstrated by a sharp divergence between RSI(14) and price during the recent run-up to a new 14-year high in the Dollar Index…a period of consolidation appears to be under way and that was also very evident yesterday when the dollar experienced a major intra-day reversal…

Food for thought:  What if Gold’s $200 slide immediately following the November 8 elections was merely a “head fake” prior to a big new wave to the upside in 2017 for reasons no one may fully be able to fathom at this time?…

We’ll examine a fascinating new Gold chart in today’s Morning Musings that should have a lot of investors questioning their assumptions…

In Today’s Morning Musings…

1. Part 2 of BMR interview with Colorado President & CEO Adam Travis…

2. Precipitate Gold (PRG, TSX-V) update…

3. Pioneering Technology (PTE, TSX-V) hits new multi-year high…

4. Daniel’s Den – there are two types of alligators, which type are you?…

Plus more…click here to read the rest of today’s Morning Musings and all BMR exclusive content, through a risk-free Pro, Gold or Basic package, or login with your username and password…

Check back later this morning for today’s BMR Morning Market Musings.

1. Gold has topped $1,200 an ounce for the first time since late November, climbing as high as $1,208 overnight…as of 7:00 am Pacific, bullion is up $13 an ounce at $1,204…the Dollar Index has tumbled two-thirds of a point to 100.97…

2. The euro is trading at a 1-month high against the greenback after Germany reported its fastest pace of economic growth in 5 years and inflation readings around the EU continued to accelerate…

3. The Venture is up 4 points at 794 as of 7:00 am Pacific while the broader equity markets have retreated with the Dow down more than 100 points after the first 30 minutes of trading…

4. The TSX Gold Index is up 3 points to 208 as of 7:00 am Pacific, a 21% jump since its December 20 intra-day low of 172…the Gold Index is still nearly 20 points shy of its still-rising 200-day moving average (SMA)…

5. Canadian Zeolite (CNZ, TSX-V) announced this morning that its Bromley Creek natural Zeolite has been registered under the name Z-Lite for use as an animal feed additive in 14 U.S. states (Arizona, Arkansas, Connecticut, Georgia, Hawaii, Idaho, Iowa, Kansas, Massachusetts, New Hampshire, New York State, Oklahoma, Pennsylvania, and Texas)…the U.S. annual animal feed production was last reported at approximately 168 million tons…the studied and recommended ratio of Zeolite is in the 2 – 4% range of total volumes…CNZ says it will now focus on sales and distribution in all 14 states to meet growing demand for Zeolite…CNZ continues to grapple with resistance in the low-to-mid-$1.40’s and is unchanged at $1.38 as of 7:00 am Pacific…

6. The Venture volume leader in early trading is Mooncor Oil & Gas (MOO, TSX-V) which announced this morning that it’s reactivating its two Oil wells located in Lloydminster, Alberta…the reactivation of the wells, containing approximately 40,000 barrels of recoverable Oil, is intended to bring the company back into production and position it to pursue a variety of short and long-term strategic business initiatives…MOO is up a penny to 1.5 cents on total volume (all exchanges) of 5.7 million shares…

7. Skyharbour Resources (SYH, TSX-V) has added another 8 cents to 52 cents as of 7:00 am Pacific after the company announced earlier this week that it has received drill permits for a planned 3,500-m program at its flagship Moore Lake Uranium Project on the east side of the Athabasca Basin…drilling is expected to commence at the end of January and will continue through February into March…SYH secured an option to purchase the 36 sq. km Moore Lake Project from Denison Mines in June of last year… 

Gold has traded between $1,177 and $1,199 so far today…as of 11:25 am Pacific, bullion is up $5 an ounce at $1,192…Silver, after nearing $17, has retreated 5 cents to $16.70…Copper is down 3 pennies to $2.67…Nickel has tumbled 19 cents to $4.59…Crude Oil has recovered $1.69 a barrel to $52.51 while the U.S. Dollar Index touched 103 this morning but promptly sold off…it’s now down more than one-third of a point at 100.67…

Gold firmed up, bouncing off its lows, while the Dollar Index plunged three-quarters of a point during President-elect Donald Trump’s first news conference in more than 5 months this morning…one of the most entertaining moments was a Trump “slam down” of CNN as he refused a reporter’s question, saying, “You are fake news”…CNN  later published a response on its website…

Positive for Gold and the Venture – the greenback appears “tired” after a huge run since last summer and we’ll show why in an updated chart as part of today’s Morning Musings…the Venture’s move above key resistance at 784 coincides with the greenback’s loss of momentum…that’s a key point to understand in terms of evaluating how the rest of January and February may unfold for the Venture…

So far this month, Gold has behaved in line with historical trends according to John’s seasonality charts…over the past 20 years January has been Gold’s second-best month (behind September) with an average return of 2.3%…

“With the impending inauguration of President-elect Donald Trump and possible safe-haven flows related to that, seasonal Chinese demand and a stalling equity rally and bond sell-off, January so far is poised to be another good month for the yellow metal,” according to MKS (Switzerland)…

Meanwhile, getting back to Trump’s much-anticipated news conference, health care and biotech stocks took a hit after the President-elect made these comments:  “We have to get our drug industry coming back. Our drug industry has been disastrous, they’re leaving left and right. They supply our drugs but they don’t make them here, to a large extent.  And the other thing we have to do is create new bidding procedures for the drug industry, because they’re getting away with murder.”

Oil Haters Continue To Intimidate Canadians

When will naïve government officials and others in Canada come to the realization that there is “no compromise” possible with the anti-Oil lobby that’s ramping up efforts to block or further delay critical Canadian projects that must urgently proceed…nothing will satisfy them in terms of environmental protections or “carbon taxes”, so all the talk of a gaining a “social license” for these projects is government bafflegab…yesterday, Jane Fonda was in the Oilsands to stir up fresh agitation against new pipelines supported by Alberta’s NDP government and approved by Liberal Prime Minister Justin Trudeau…more aboriginal lawsuits are being launched in Vancouver over Trudeau’s approval of the Petronas LNG Project…and in Toronto, environmental activists were scoffing at Trudeau’s efforts to reform the National Energy Board…

“Canada’s recent approval of new tar sands projects in Alberta and the Line 3 and Kinder Morgan pipelines, and the looming possibilities of a Keystone XL and Energy East, are in direct conflict with Canada’s commitments to Indigenous Rights, the U.N. Declaration on the Rights of Indigenous Peoples (UNDRIP), and the Paris climate accord,” organizers of Fonda’s event said in a news release (they are proud “globalists”).  “That is the message First Nation leaders and Indigenous advocate and Academy Award winning actress Jane Fonda will bring to a press conference in Edmonton.”

The Financial Post’s Claudia Cattenea correctly observed, “Clearly, the honeymoon is over between opponents of Oil and gas projects and Canadian governments that hoped to win their approval by cranking up environmental regulations and carbon costs, even at the expense of the economy (our emphasis).  So much for Canada’s ambitious climate leadership program, sold to Canadians on the promise that it would satisfy critics and re-habilitate Canada’s reputation as a responsible energy producer.”

Canada’s fixation on “saving the planet” now has us losing competitiveness in the energy sector to the United States, China, Russia and others – exactly what the anti-Oil lobby wanted to see and Canadians fell for it…

In Today’s Morning Musings…

1. Zealous for Zeolite:  Canadian Zeolite (CNZ, TSX-V) Update…

2. Low-priced B.C. exploration opportunity…

3. Enphase Energy finds power, jumps nearly 25%…

4. Daniel’s Den – ObamaCare or no ObamaCare, Teladoc is a winner…

Plus more…click here to read the rest of today’s Morning Musings and all BMR exclusive content, through a risk-free Pro, Gold or Basic package, or login with your username and password…

Check back later this morning for today’s BMR Morning Market Musings.

1. Gold is down $9 an ounce at $1,178 as of 7:00 am Pacific, under mild pressure thanks to a stronger U.S. dollar entering a Donald Trump news conference scheduled for 8:00 am Pacific…the Dollar Index has jumped two-thirds of a point to 102.74..

2. Crude Oil prices have rebounded today following news of Saudi supply cuts to Asia, but persistent doubt over output reductions and signs of rising shipments from other producers have kept gains in check…WTI has added 63 cents to $51.45 as of 7:00 am Pacific…

3. The Venture is off 3 points at 791 as of 7:00 am Pacific after having advanced in 10 sessions out of the last 12…the TSX has added 14 points while the Dow has climbed 67 points through the first 30 minutes of trading… 

4. NexGen Energy (NXE, TSX) has crossed the $3 barrier for the first time, touching a new high of $3.13…other Uranium stocks are also showing continued strong momentum in early trading today…Purepoint Uranium (PTU, TSX-V) has hit a nearly 3-year high of 17.5 cents while Energy Fuels (EFR, TSX) has jumped another 24 cents to $3.13…Anfield Resources (ARY, TSX-V), which has recently developed multiple potential production scenarios, is up half a penny at 15 cents as of 7:00 am Pacific…

5. Cordoba Minerals (CDB, TSX-V) has drilled 108 m grading 1.26% Cu and 0.87 g/t Au from surface at its San Matias Copper-Gold Project in Colombia…that’s one of the best intersections to date on the project with mineralization outside the current Inferred mineral resource shell and still open to the east of the Alacran deposit…mineralization at Alacran has now been intersected over a strike length of 1.3 km, to widths of up to 400 m, and extends from surface to depths of more than 260 m…CDB is up 3 pennies at 77 cents as of 7:00 am Pacific…

6. Pure Gold Mining (PGM, TSX-V) has launched a 70,000-m drill program at its 100%-owned Madsen Gold Project in the Red Lake Camp…the phased program is designed to focus on resource growth and concurrently advance Madsen toward operational readiness…drilling has re-commenced on the project with 4 diamond drill rigs prioritized for the McVeigh, Austin and A3 targets of the Madsen mine…a resource update incorporating more than 150,000 new meters of diamond drilling is targeted for the 2nd half of 2017…

7. Probe Metals (PRB, TSX-V) unveiled plans yesterday for a major expansion of its drilling at Val d’Or East where the company made a high-grade Gold discovery at depth last month to go along with an existing near-surface deposit…a 50,000-m program is designed to expand the known mineral resources and test high-priority satellite targets at Val d’Or East, including the recently acquired Bonnefond North and Cadillac Break East acquisitions…the consolidated Val d’Or East land package now represents a district-scale opportunity of approximately 231 sq. km of underexplored ground located within one of Canada’s leading Gold mining camps…

Gold has traded between $1,181 and $1,191 so far today…as of 11:00 am Pacific, bullion is up $5 an ounce at $1,186…Silver has climbed 22 cents to $16.77…Copper has added 7 cents to $2.59…Nickel is up 5 cents at $4.74…Crude Oil has fallen 80 cents a barrel to $51.16 while the U.S. Dollar Index has gained one-fifth of a point to 102.03…

India, one of the world’s top Gold consumers, experienced one of its bleakest years on record for Gold demand in 2016 as shipments into the country reportedly dropped by 46% last month – totaling just 56.9 tonnes, as compared to the 106 tonnes Indian buyers brought in during December 2015…according to data compiled by Bloomberg, Gold imports totaled 570.8 tonnes in 2016, down 44% from 2015…

Now for some good news…Chinese buying ahead of that country’s Lunar New Year festivities beginning at the end of the month is a major factor contributing to Gold’s strength in the early going of 2017…tomorrow, meanwhile, we’ll find out if President-elect Trump’s first news conference (8:00 am Pacific) in more than 5 months will prove to be more positive for bullion than his November 8 election victory…the liberal mainstream (propaganda) media will do its best to turn tomorrow’s event into a circus, so anything’s possible…

You may recall that during last fall’s Presidential debates, the only moderator who asked a question pertaining to the U.S. debt (and it was the very last question of the debates!) was Chris Wallace of Fox News…it’ll be interesting to see if this issue gets more attention tomorrow…

Ask yourself this – does it make sense that the Venture would break out past key resistance at 784 if this move by Gold had no substance to it and bullion was about to plummet again?…

In Today’s Morning Musings…

1. U-licious!…

2. Following the trail of the GoldQuest VMS discovery in the DR (something investors are forgetting)…

3. Tora! Tora! for GGI near the Copper Mountain mine (main show this month has yet to begin!)…

4. Part 1 of BMR audio interview with Colorado’s Adam Travis…

5. Daniel’s Den – Silver optionality plays…

Plus more…click here to read the rest of today’s Morning Musings and all BMR exclusive content, through a risk-free Pro, Gold or Basic package, or login with your username and password…