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1. Gold has traded between $1,197 and $1,206 so far today…as of 7:00 am Pacific, the yellow metal is up $4 an ounce at $1,204…Silver has climbed 10 cents to $14.67…Copper has eased off 3 pennies to $2.82…Nickel is 4 cents higher at $5.67 while Zinc is steady at $1.20…Crude Oil has retreated 16 cents to $74.17 while the U.S. Dollar Index is relatively unchanged at 95.69…the benchmark 10-year Treasury yield has hit its highest level since 2011 after the Labor Department’s monthly jobs report showed another month of rising wages and a sharp revision higher to August’s non-farm payrolls…the Barrick-Randgold merger, one of the largest mergers ever in the mining industry, is indicative of an important turning point for Gold, according to Frank Holmes, CEO of U.S. Global Investors…“Usually these things happen at the bottom of the cycle, not the top, and that’s really interesting because they start to drive economies of scale to get growth,” Holmes told Kitco News…

2. The U.S. unemployment rate has dropped to a level not seen in nearly half a century, despite the fact that job creation for September fell to its lowest in a year as reported this morning by the Labor Department…non-farm payrolls rose just 134,000, well below the consensus estimate of 185,000 (the worst performance since last September 2017 when a labor strike weighed on the numbers), though this was more than offset by a big upward revision to the August number…the unemployment rate has fallen two-tenths of a percentage point to 3.7%, the lowest level since December 1969 and one-tenth of a percentage point below expectations…the closely watched average hourly earnings component showed a 2.8% year-over-year increase, in line with Wall Street estimates…the average work week was unchanged at 34.5 hours…meanwhile, in another example of how the over-regulated, over-taxed Canadian economy is under-performing vs. the Trump economy, Canada lost 16,900 full-time jobs last month…

3. Holdings in global Gold-backed exchange-traded funds (ETFs) and similar products fell by 23.7 tonnes in September, equivalent to $932 million in outflows, the World Gold Council (WGC) says…this was the 4th straight monthly decline, leaving total holdings at 2,329 tonnes…when combined with a 1.1% drop in the Gold price during September, Gold ETF assets under management in U.S. dollars fell by 2.3%…ETFs posted net outflows of Gold in all regions of the world during September, the Gold Council reported…holdings in European-based ETFs fell by 10.2 tonnes, while those based in Asia decreased by 6.5 tonnes…North American ETFs recorded outflows of 6.1 tonnes, while the rest of the world posted outflows amounting to a tonne…

4. The Dow is up slightly first 30 minutes of trading…in Toronto, the TSX is flat while the Venture is 1 point lower at 706…the Venture, which already has far too many listings, welcomed 15 new issuers in September, compared with 8 the previous month and 10 in September 2017…the new listings were 12 capital pool companies, 2 mining companies and 1 financial services company…total financings raised in September 2018 increased 6% compared to the previous month, but were down 5% compared to September 2017…there were 96 financings in September 2018, compared with 116 in the previous month and 116 in September 2017…Blue Moon Zinc (MOON, TSX-V) is among the volume leaders, up half a penny at 6 cents as of 7:0o am Pacific…the company launched a drill program late last month at its Zinc-rich VMS deposit in Northern California with holes targeting massive sulphide mineralization…Great Bear Resources (GBR, TSX-V), which closed at a new high of $2.55 yesterday, was halted pre-market and resumes trading at 8:00 am Pacific following a news release stating that management is unaware of any material change in the company’s operations that would account for the recent increase in market activity…

5. Positive sign for the Canadian Oil and gas sector, despite the current gloom – Precision Drilling (PD, TSX) is buying smaller rival Trinidad Drilling (TDG, TSX) in a deal valued at $1.03 billion, trumping a hostile bid from Ensign Energy Services (ESI, TSX)…Trinidad’s board in August rejected a $1.68 per share all-cash bid from Oilfield services provider Ensign…that compared to Precision’s all-stock offer for Trinidad of $1.98 per share based on the bidder’s closing price yesterday…a recovery in the Canadian Oil industry has lagged a global rebound, with pipeline bottlenecks leading to a bigger-than-usual price discount for Western Canada Select heavy Crude compared with U.S. Crude prices…those differentials have left Canadian Oil-producing companies trailing their U.S. peers and kept them cautious about spending…Trinidad has lost money for 3 consecutive years and posted losses through the first 2 quarters of 2018…

6. Constellation Brands‘ (STZ, NYSE) CEO Rob Sands says the politics around cannabis in the United States are shifting rapidly towards legalization…Sands believes the upcoming mid-term elections could be pivotal for the legalization of cannabidiol, commonly known as CBD, a component of the cannabis plant that is not psychoactive and widely used in medical marijuana products…“We expect [CBD] to become legalized potentially as soon as shortly after this election because there’s a provision in the farm bill that will actually legalize CBD, the non-psychoactive component,” Sands told “Mad Money” host Jim Cramer in an exclusive interview…Sands, whose alcohol distributor boasts popular brands including Corona and Modelo, said Constellation is looking forward to working with Canopy Growth (WEED, TSX; CGC, NYSE) on non-alcoholic cannabis drinks that resemble beer, champagne, spirits, water and tea…“I think you’ll see a lot of beverages introduced, probably non-alcoholic or in, I would say, most cases, non-alcoholic, to take advantage of at least the CBD legalization,” he said..

7. The supply of legal pot in Canada will only meet 30% to 60% of demand after legalization, keeping the black market very much alive and stunting the government’s tax take, according to a new study…cannabis supply will reach about 210 tonnes, or 210,000 kilograms, in the first year after Canada legalizes marijuana this month, according to a study to be released next week by researchers at the University of Waterloo and the C.D. Howe Institute…demand, meanwhile, will be about 610 tonnes…“There will not be enough legal supply, especially during the first half of the year following legalization, primarily because of the slow rate of licensing producers,” according to the C.D. Howe report…

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