Gold has traded between $1,247 and $1,257 so far today…as of 11:00 am Pacific, the yellow metal is up $7 an ounce at $1,254…Silver has jumped 25 cents to $16.81…Copper has added 5 cents to $2.57…Nickel is 9 cents higher at $4.22…Crude Oil has climbed nearly $1 a barrel to $50.29 while the U.S. Dollar Index has tumbled three-quarters of a point to 97.10…
Saudi Arabia has been increasing its holdings of U.S. Treasury bonds by billions of dollars ahead of tomorrow’s visit by President Trump and economic talks at which Riyadh aims to obtain investment and technology from the United States…Saudi holdings of U.S. government bonds climbed to a 1-year high of $114.4 billion in March from a low of $89.4 billion last September, according to the latest data from the U.S. Treasury Department…Trump’s decision to make Riyadh the first stop in his first foreign trip in office sends a powerful message underlining Saudi Arabia’s clout after 8 years of strained bilateral ties under the Obama administration…we expect that one of the key outcomes from Trump’s visit, which will feature several stops including Saudi Arabia and Israel, will be a major overturning of the Obama policy of appeasement toward Iran…this could have bullish implications for Oil prices…
Canada Unnecessarily Lags U.S. In LNG
Canada embarrassingly continues to badly trail the Americans when it comes to expanding opportunities for Natural Gas exports to Asia (getting critical energy infrastructure built in Canada is now exceedingly slow, difficult and in some cases impossible due to a proliferation of eco-fascists in this country – many of them influenced by radical U.S. NGO’s – and politicians who are simply unable to lead)…the fact is that rapid expansion of LNG infrastructure in the U.S. will eventually make the Americans the 3rd largest exporter of LNG, behind Qatar and Australia, according to analysts at Columbia University’s Center on Global Energy Policy…notably absent from that list of important players is Canada despite our vast Natural Gas resources…meanwhile, President Trump has taken further steps to gain U.S. LNG market share in China as Beijing agreed to make it easier for Chinese companies to buy liquid Natural Gas from U.S. suppliers as part of the recent Trump-China trade deal…
Canadians have become so afraid of the Climate Change Boogeyman, so deceived by the false prophets of the new climate change religion, that they’re practically apologizing for this country’s immense resources and how they have supposedly been “destroying the planet”…what this ultimately means, if there isn’t a rapid change in thinking and approach, is that Canadians will simply have to accept a lower standard of living in the years ahead – for themselves and future generations – as the country loses competitiveness vs. the U.S. and other countries…look how much wealth has already been destroyed in Alberta, and that’s not just because Oil prices are less than half what they were a few years ago…it is a horrible shame and proof of poor governance…
Oil Update
Crude Oil is suddenly back above $50 a barrel which shows how the Saudis still have the ability to move markets…they are determined to keep Oil prices healthy for budgetary reasons, hence the deal they struck with the Russians that should lead to OPEC and certain non-OPEC producers to agree next week to extend their production cut into the 1st quarter of next year…
Meanwhile, Oil prices have maintained their gains late this morning after Baker Hughes reported its weekly count of U.S. Oil rigs increased for an 18th straight week…U.S. drillers added 8 rigs last week, pushing the total to 720…
Gold 9-Month Daily Chart
There’s lots going on in this updated 9-month Gold chart from John, but the key takeaway is that this year’s uptrend remains very much intact after Gold successfully tested superb support at $1,215…
Near the end of March, bullion broke out above a downtrend line (new support) going back to last summer and raced to a high of $1,297 (resistance at $1,300) by mid-April…
The 6.4% pullback from $1,297 to $1,214, which essentially mirrored the Venture’s mini-correction, was a classic healthy retreat in an ongoing bull market…
Note how the Gold price exactly hit a Fib. level and the uptrend line from the beginning of this year…
Where to now?…
At some point between now and June 14 when the Fed is widely expected to raise rates, we should see Gold gain considerable momentum above resistance at $1,260…that sets the stage for a very bullish summer…
Despite what you may read and hear in the mainstream media, nothing could be more bullish for Gold than a Fed rate hike June 14…
U.S. Dollar Index Update
The pattern in the U.S. dollar is not favorable for the balance of 2017, though a near-term rally is increasingly likely given how RSI(14) and SS are being pushed into temporarily oversold territory…
As the year progresses – certainly by August – the Dollar Index is going to come under significant new pressure from a declining 200-day moving average (SMA)…that’s because the last several months of 2016 were exceedingly bullish with the Dollar Index rising to nearly 104…
The declining 50-day SMA, currently at 99.70, will cap any near-term rallies…the greenback is in trouble…the markets don’t fully discern that at the moment which means OPPORTUNITY for savvy investors…
The Venture feeds on a declining U.S. dollar…
In Today’s Morning Musings….
1. An even bigger WGO stamp on the White Gold district…
2. A “quantum” leap in the works for this stock?…
3. Eskay Heart of Gold Camp – the wait ends very soon…
4. Daniel’s Den – “Friday Footnotes” and conversations with America’s top traders…
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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!
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!
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