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1. Gold has traded between $1,422 and $1,429 so far today…as of 7:00 am Pacific, bullion is off $3 an ounce at $1,427 just 4 hours ahead of a Fed policy statement…Fed funds rate futures are now fully pricing in a 25 basis point rate cut today, which would be its first since the financial crisis more than a decade ago, and another quarter point cut in September…the Gold market will focus more on today’s communication from the Fed, whether it leaves the door open for more rate cuts amid a slowing global economy…there is also clearly a strong link between U.S.-China trade talks and the outlook for U.S. monetary policy…the longer the trade tensions drag on, the more the Fed will need to provide support on the interest rate side…Silver has slipped 17 cents to $16.37…Nickel and Copper are relatively unchanged at $6.51 and $2.68, respectively, while Zinc is flat at $1.11…Crude Oil is up for a 5th straight day, 30 cents higher at $58.35 while the U.S. Dollar Index continues to trade around strong resistance just above 98…U.S. companies added more jobs than expected in July…private payrolls increased by 156,000 for the month, according to this morning’s report from ADP and Moody’s Analytics…the number was up substantially from the 112,000 in June, revised higher from the initially reported 102,000…negotiations on an “enforceable trade deal” with China are expected to continue in Washington, D.C., in early September, the White House said in a statement this morning…Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin were in Shanghai yesterday and today to discuss trade with their Chinese counterparts, and those talks were “constructive”, the White House also said…the Chinese side confirmed their commitment to increase purchases of American agricultural exports, and other topics covered were forced technology transfer, intellectual property rights, services and non-tariff barriers, according to the White House…

2. The Gold market has reached an historic moment as U.S. citizens can now monetize physical Gold and spend it on everyday items thanks to a U.K.-based fintech company and its Gold-backed debit card…Glint Pay Inc. announced this week that its debit MasterCard and Glint App are now available in the United States…the expansion to the U.S comes less than a year after launching its services in Europe…in a press release, the company said that since its initial launch in the U.K in 2015, it has seen significant growth…“To date, Glint has more than 50,000 app downloads, 10’s of thousands of registered users and more than $50 million (U.S.) in transacted volume,” the company said…the launch comes as Gold is seeing a resurgence in investor demand, which recently drove prices to a 6-year high…however, physical demand has been fairly lackluster as investors have been jumping into Gold-backed exchange traded products…the company says consumers can put their physical Gold to use…“The U.S. boasts a $7.6 trillion annual Gold investment market in Gold bars and coins that has been locked in vaults and unable to be used as money until now”…

3. China’s factory activity shrank for the 3rd month in a row in July, an official survey showed, underlining the growing strains on the world’s 2nd-biggest economy as continuing Sino-U.S. trade tensions impact business profits, confidence and investment…the official gauge came on the 2nd and final day of U.S. and Chinese trade negotiators’ meeting in Shanghai, their first in-person talks since a G20 truce last month…today’s weak manufacturing reading adds to global growth risks and explains why policymakers around the world have stepped up easing measures, with some others considering doing so soon, to counter the fallout from international trade frictions….the Purchasing Managers’ Index (PMI) rose to 49.7 in July, from the previous month’s 49.4, but remained below the 50-point mark that separates growth from contraction on a monthly basis…analysts polled by Reuters had predicted a reading of 49.6…deteriorating global demand saw export orders shrinking for the 14th month, the survey showed, though the sub-index ticked up fractionally to 46.9 from June’s 46.3…the contraction in total new orders also moderated slightly, while factory output offered one brighter note, with growth quickening this month…

4. Kirkland Lake Gold (KL, TSX), our favorite producer, has posted quarterly Q2 net earnings of $104.2 million (U.S.), 50 cents per basic share, up 69% from $61.5 million (29 cents per basic share) in Q2 2018 and compared to record net earnings of $110.1 million (52 cents per basic share) the previous quarter…revenue growth in the 2nd quarter was 31% vs. the same period a year ago…Q2 2019 Gold sales of 212,091 ounces compared to 164,305 ounces in Q2 2018 and 232,929 ounces the previous quarter…AISC (all-in-sustaining costs) per ounce sold averaged $638, 16% better than $757 in Q2 2018 and compared to $560 in Q1 2019 (change from previous quarter reflects reduced sales volumes and timing of sustaining capital expenditures)…cash at June 30, 2019 totalled $469.4 million, a 13% increase from $416.1 million at March 31, 2019…Tony Makuch, President and CEO, commented, “During Q2 2019, we continued to generate strong growth in production, earnings and cash flows compared to the same period in 2018.  Fosterville achieved a record quarter and exceeded target production levels driven by higher than expected grades.  Even more encouraging, we are now positioned to significantly grow production at Fosterville during the second half of the year.  In Canada, tonnage at Macassa was affected by water in the mine from the spring run-off, and we had lower than planned grades at the Holt Complex.  We have already seen higher production levels at Macassa in July, with the mine remaining on track to achieve its full-year guidance of over 240,000 ounces.  Based on our results to date, and expectations for the remainder of the year, we remain well positioned to achieve our full-year 2019 consolidated operating guidance, which includes production of 950,000 – 1,000,000 ounces with operating cash costs per ounce sold averaging $285 to $305 and AISC per ounce sold averaging $520-$560“…KL has backed off modestly on the news, down $3.12 a share to $56.97 as the broader Gold Index pulls back…

5. GoGold Resources (GGD, TSX) has drilled 23.3 m averaging 4.5 g/t AuEq (1.78 g/t Au and 201.5 g/t Ag) at its Los Ricos Project located about 100 km northwest of the city of Guadalajara, Mexico…drill hole LRGG-19–022 intersected the Los Ricos quartz vein from 170.4 m to 193.7, including a 10-m interval averaging 3.6 g/t Au, 389.6 g/t Ag and 8.8 g/t AuEq…no workings were encountered in the hole and core recoveries were excellent…this hole cut the Los Ricos vein to the north of the prolific North Cinco Minas Stope in the historical underground workings…another drill hole (LRGG-19–025) intersected the Los Ricos vein from 34.9 m to 59.5 m and averaged 1.30 g/t Au, 135 g/t Ag and 3.1 g/t AuEq over 24.6 m, including a 15.5-m interval averaging 2 g/t Au, 203.3 g/t Ag and 4.7 g/t AuEq…GGD is unchanged at 49 cents as of 7:00 am Pacific…

6. The Dow is down 64 points through the first 30 minutes of trading…in Toronto, the TSX is off 32 points…beleaguered cannabis producer CannTrust Holdings (TRST, TSX) has appointed a financial advisor for a strategic review that will look at options including the sale of the company…CannTrust said in a statement that alternatives could include a sale, a strategic investment, a business combination or changes to operations or strategy…“The nature, timing and outcome of the strategic review process will be influenced by, among other things, the resolution of the Company’s regulatory compliance issues with Heath Canada”, a news release stated…the Venture is unchanged at 594…Benchmark Metals (BNCH, TSX-V) is steady at 37.5 cents after a modest run yesterday on news that the initial 6 drill holes at its Lawyers Project (Cliff Creek zone) have cut “multi-metre mineralized intercepts”…5 of the holes have returned 2 to 3 discrete mineralized intercepts within the same hole ranging from 1 to 46 m in length (assays pending)…the mineralization at Cliff Creek is typified by intense quartz flooding and veining with associated pyrite and sulphosalts within intermediate volcanic rocks of the highly prospective Stikine terrane….drilling has totalled 1,392 m to date…the next series of holes is scheduled for the subparallel AGB zone, targeting extensions and offsets from the high-grade historic mine area…

7. Nighthawk Gold (NHK, TSX) has drilled 56.25 m grading 2.76 g/t Au (30 m true width), including 13 m @ 3.5 g/t Au, extending mineralization to over 450 m at depth where it remains open in Zone 2.0 at its Colomac Gold Project in the Northwest Territories…drilling continues to target specific high-priority areas within Zones 2.0 and 3.0 of the Colomac Main sill with the focus on the discovery and delineation of higher-grade shoots within the sill…all 38 drill holes reported to date (12,824 m) in the planned 35,000-m to 40,000-m drill program for 2019 have intersected mineralization…the success in locating and tracing new areas of higher-grade mineralization along the Colomac Main sill continues to validate the company’s belief in the deposit’s capacity to host discrete corridors of elevated grade (typically significant widths of over 2 g/t Au with internal higher-grade cores), some of which are broad domains of contiguous mineralization along strike and to depth that remain largely unexplored…this exploration strategy has been extremely successful leading to several new discoveries and is considered crucial to resource growth going forward…President and CEO Dr. Michael Byron stated, “This latest drilling followed up on recent discoveries of higher-grade mineralization in Zones 2.0 and 3.0.  Our goal was to extend these known occurrences down plunge and to test other highly prospective opportunities.  Outcomes have been exceptional, resulting in a new discovery in Zone 2.0 and the successful expansion of three previous discoveries.  We are extremely encouraged by our continued success in identifying new prospects and remain confident in our ability to track them along strike and to depth.  This part of the sill has seen limited exploration to date but clearly shows the potential to deliver ounces”…

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