Gold has traded between $1,236 and $1,251 so far today…as of 11:00 am Pacific, the yellow metal is up $1 an ounce at $1,249…Silver has added 12 cents to $18.41…Copper is up 2 pennies at $2.73 while Nickel has also edged slightly higher to $4.96…Crude Oil is flat at $53.90 while the U.S. Dollar Index has gained one-tenth of a point to 101.53…
If you’re a Gold bug, you should be rooting for another near-term rate hike – following the last 2 hikes, the only ones in more than a decade, Gold has pushed significantly higher…New York Fed President William Dudley, one of the most influential U.S. central bankers, yesterday said the case for tightening monetary policy had become “a lot more compelling”, while San Francisco Fed President John Williams said he saw “no need to delay” raising rates…Ma Yellen speaks on Friday – the market of course will be paying close attention…money market futures are now pricing in close to a 70% chance of a rise in official interest rates in March, compared with a little more than 30% Tuesday…
President Trump really knocked one out of the park last night – even CNN had to admit (grudgingly, no doubt) that he delivered a powerful first speech to Congress…Trump’s businesslike approach to government is going to be a major game-changer with potential reverberations across the globe…
Investors should note that the new President last night strongly reiterated his plans for a $1 trillion infrastructure program funded through private-public partnerships…that helped give base metals another boost this morning…with his pro-business and pro-mining agenda, Trump could prove to be a huge boon to the resource industry in North America…he’s also keen on trying to keep the U.S. dollar constrained which is bullish for the Venture and commodities in general…while he’s focused on finding savings in government, Trump made no mention last night of reigning in U.S. deficits and debt which he believes will eventually decline after economic growth really kicks in through a combination of tax cuts and regulatory rollbacks, among other measures…it’s an inflationary approach but one that should get the U.S. to a higher growth rate…
Silver Short-Term Chart
Near-term/short-term, we do expect Silver to test the $18.75 level as per John’s 6-month daily chart before a minor retracement sets in to unwind temporarily overbought conditions…strong support on any pullback exists between the rising 50-day moving average (SMA), currently $17.10, and the 200-day SMA at $18.00…
Silver’s long-term chart is phenomenal, suggesting a major (historic?) ramping up in the price sometime over the next year or two…
Interesting note from the other day…Silver has posted 9 straight weekly gains, its best weekly streak since May 2006…according to the independent and unaffiliated World Bureau of Metal Statistics, Silver has experienced its most significant supply drop since 1995…
In Today’s Morning Musings…
1. Why recent weakness in the Venture has been a classic “buy the dip” opportunity…
2. Engold Mines drills 27 m grading 1.76% Copper at Lac La Hache, 2nd rig mobilized to property…
3. The drone deal that could fly very high…
4. A “Ring of Fire” in the middle of the Eskay Heart of Gold Camp…
5. Daniel’s Den – the 1 technology stock I’d considering marrying if it proposed to me!…
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