Check back later this morning for today’s Morning Musings.
1. Gold is struggling again today in the wake of yesterday’s Fed rate hike…the actual hike was priced in but what Gold is really reacting to is the anticipation of 3 rate hikes next year instead of 2, as per the Fed’s “dot- plot”…however, the “dot-plot” has been known to be wildly off base…bullion is off $13 an ounce at $1,129 as of 7:00 am Pacific…if it can’t rebound quickly and hold the $1,130 – $1,150 area, next support is in the $1,090’s as we’ll show in a fresh chart in today’s Morning Musings…yesterday’s nearly 22 tonnes of outflows from Gold ETFs were the most pronounced on a single day since July 2013…the U.S. Dollar Index has surged to a 14-year high with key resistance at 104…a breakout above 104 could create a runaway dollar scenario and a quick, sharp spike down in Gold before a reversal kicks in…
2. Chinese authorities halted trading in key bond futures for the first time today as panicky investors sold the securities on concern that a long, credit-fueled bull market was coming to an end amid slowing growth, capital outflows and heightened government concern about asset bubbles…China’s 10-year and 5-year Treasury bond futures recorded their biggest ever drops in early trading, falling by 2% and 1.2%, respectively, prompting exchange authorities to suspend the securities…trading resumed only after China’s central bank injected around $22 billion (U.S.) into the short-term money market…the 10-year government bond yield, which rises when prices fall, hit a 16-month high of 3.4%, extending a sell-off in Chinese bond markets that began in late November and has accelerated this week…
3. The Dow is up 100 points at 19,892 as of 7:00 am Pacific…one of the biggest gaps ever has opened up between the Dow’s current price and its 50-day and 200-day moving averages (SMA’s)…the TSX has advanced more than 50 points in early trading but the Venture has slid another 8 points to 734, just above its rising 200-day SMA…
4. Clean Commodities (CLE, TSX-V) and Skyharbour Resources (SYH, TSX-V) remain halted, pending news…the companies are 50-50 partners in the Preston Uranium Project which is the largest and longest contiguous property portfolio adjacent to NexGen Energy’s (NXE, TSX) Rook 1 Project and trends nearly the full east-west property border covering multiple conductor corridors identified within the region…approximately $5 million has been spent on Preston with the most recent work featuring an airborne electromagnetic and magnetic survey that commenced at the end of October…
5. Pretium Resources (PVG, TSX) has announced an increase in Proven and Probable reserves in the Valley of the Kings to 8.1 million ounces of Gold (15.6 million tonnes grading 16.1 g/t Au)…meanwhile, construction remains on schedule for the start-up of mining operations during the 2nd half of 2017…the 57-km transmission line is expected to be fully energized by early next year, ahead of when it is required for mine commissioning…approximately 30,000 tonnes of ore has been stockpiled in preparation for mill commissioning by mid-2017…PVG is hurting due to falling Gold prices and is off 81 cents at $9.68 as of 7:00 am Pacific…
6. Crude Oil prices are under mild pressure this morning on U.S. dollar strength but are expected to hold new support at $50 for technical and fundamental reasons…we’ll have a chart on Baytex Energy (BTE, TSX) in today’s Morning Musings…
7. Canadian Zeolite (CNZ, TSX-V) has stabilized after a dramatic run last week followed by a 2-day plunge from $1.95 to $1.10…CNZ, aiming to become the largest producer and processor of Zeolite and Zeolitic products for national and international markets, is up a penny at $1.21 as of 7:00 am Pacific…updated chart in today’s Morning Musings…
any info from ggi agm??
Comment by bcguy — December 15, 2016 @ 8:09 am
bcguy, from what I heard, not a single investor (non-management or non-director) was there yesterday, which is nothing unusual for your typical AGM…as well, it’s worth noting, absolutely nothing has changed with GGI since last week when the stock hit a 2-year high…those who are selling because Gold is dropping seem to have forgotten that the E&L is Ni-Cu-PGE-Cobalt, but that’s the silliness of the market…
Comment by Jon - BMR — December 15, 2016 @ 8:17 am
thanks Jon would be nice to hear something from the company
Comment by bcguy — December 15, 2016 @ 8:20 am
yes I agree on ggi,nothing has changed,nervous nellies imo,the fed had to raise in order to lower in the next meeting,the high dollar will end up being the shot in the foot,also do you think that was dumb money that bought a half million ggi shares last week,not likely. have to just let this play out..
Comment by Laddy — December 15, 2016 @ 8:52 am
PMA and down she goes
Comment by omega — December 15, 2016 @ 8:53 am
GGI – selling cause they expected some new news from mexico or other props, didn’t happen. its frustration selling. steve may be assembling something nice, but the manner in which he spreads the news over the past couple years doesn’t help the SP. if ‘no news’ or ‘slow news’ is interpreted as bad news by the market in general, then there is a pipeline of bad news to come clean on. I don’t think that’s entirely true, but that’s for Steve to change that perception. If you have time to do new fact sheets, you have time for news releases.
Comment by david — December 15, 2016 @ 9:21 am
CLE – This is certainly a long period of time for a halt to continue.
Comment by vepper — December 15, 2016 @ 9:34 am
this is what scares me the most from VanEck
In the longer term, however, our conviction for a strong gold market remains,” Foster said.
Markets are optimistic that Trump will be able to solve imminent issues, Foster said.
OF COURSE they would say this.. they don make any dough unless peeps put their dough into their etf’s.. they sense the scared populus and the lack of any conviction from the goldsters.
like a company saying there is no material reason for a SP decline then they go tits up the next week…
Comment by Jeremy — December 15, 2016 @ 10:08 am
areva is rumoured partner for CLE + Sky for Preston
Comment by david — December 15, 2016 @ 10:23 am