Check back later this morning for today’s Morning Market Musings.
1. Gold has traded between $1,202 and $1,212 so far today…as of 7:00 am Pacific, bullion is unchanged at $1,204 while Silver has slipped a few pennies to 16.97…updated Silver charts in today’s Morning Musings…Gold has strong support in a band between $1,180 and $1,200…investors are focusing on Wednesday’s Fed statement, with a rate hike all but guaranteed, while Dutch parliamentary elections on Wednesday are also in the spotlight this week…traders’ concerns over the outcome of European elections this spring should help limit Gold’s downside…hedge funds and money managers slashed their net long positions in COMEX Gold from the highest in 3 months in the week to March 7 according to Friday’s U.S. Commodity Futures Trading Commission data…
2. Crude Oil prices will try to bounce back this week after last week’s 9% drubbing that took WTI to its lowest levels in 3 months…Goldman Sachs said in a note it remained “very confident” about commodity prices and maintained its price forecast of $57.50 a barrel for WTI in the 2nd quarter…meanwhile, U.S. drillers added Oil rigs for an 8th consecutive week, Baker Hughes said on Friday, lifting spending to benefit from an earlier recovery in Crude prices since OPEC agreed to cut output…WTI is flat at $48.53 as of 7:00 am Pacific… key technical support is around $46…
3. North American markets including the Venture are mostly in the green to start the new week with the Venture following through on Friday’s best single day performance since January 5 with a gain of 4 more points to 803 as of 7:00 am Pacific…the Venture retreated to a strong area of support last week…getting an interest rate hike out of the way imminently should prove helpful for both the Venture and the overall commodities space…the TSX is 21 points higher while the Dow is off 13 points as of 7:00 am Pacific…U.S. chip giant Intel has agreed to buy Israeli driverless technology firm Mobileye for $15.3 billion, the largest ever acquisition of an Israeli high-tech company…the $63.54 per share cash deal is the world’s biggest purchase of a company solely focused on the autonomous driving sector…Mobileye accounts for 70% of the global market for advanced driver-assistance and anti-collision systems…
4. Toronto-Dominion Bank (TD, TSX) shares are rebounding modestly this morning after Friday’s worst single day plunge since the financial crisis over concerns of a “Wells Fargo moment”…allegations in a CBC report that the bank engaged in high-pressure sales tactics and unethical practices led to a 5.5% drop in the share price on a huge spike in volume…TD CEO Bharat Masrani was quoted by the Financial Post as saying that the environment described in the report “is very much at odds with how we run our business. We have a long history of providing great customer service…we’ll continue to do so.”
5. Colorado Resources (CXO, TSX-V) has entered into a purchase agreement with Firesteel Resources (FTR, TSX-V) to acquire a 100% interest in the ROK-COYOTE Cu-Au Porphyry Property 10 km northwest of the Red Chris mine…the ROK-COYOTE Property has shown significant potential and is on trend, immediately to the south and east, of Colorado’s North ROK Property which doubles the prospective strike along the North ROK porphyry trend toward the border with Red Chris…Firesteel, which appears to be exiting the resource sector (bullish contrarian indicator) as it searches for “alternative opportunities”, is surrendering ROK-COYOTE for 1.5 million units of CXO…each unit includes a 2-year full warrant exercisable at 45 cents, so CXO may also end up with a free financing out of the deal…
6. Marathon Gold (MOZ, TSX) has released another batch of solid assay results this morning from ongoing drilling at its Marathon deposit in the Valentine Lake Gold Camp…the latest intercepts include 2.9 g/t Au over 71 m (24 m to 95 m) and 1.88 g/t Au over 136 m (118 m to 254 m) in MA-17–165, 2.3 g/t Au over 19 m in MA-17–166 and 2.35 g/t Au over 29 m in MA-17–167…those drill holes were designed to penetrate down through the Gold-bearing en-echelon stacked quartz-tourmaline-pyrite (QTP) vein swarms and confirm the vertical continuity of the strong Gold mineralization within the 50 to 100-m wide structural corridor which is open both along strike and to depth…MOZ is up 2 pennies at $1.04 on the news as of 7:00 am Pacific…
7. Tinka Resources (TK, TSX-V), on our list of favorite Zinc plays late last year, hit a new multi-year high this morning of 57 cents in advance of more results from its Ayawilca Project in central Peru…the first hole of the 2017 campaign was a 400-m step-out to the south of the existing Inferred resource and returned 17.9 m grading 11.6% Zn within a broader interval of 62.4 m @ 5.6% Zn…results are pending from the bottom of that hole and a favorable limestone unit…
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I think this will be the winning ticket for Cxo , what a steel!
Comment by Greg — March 13, 2017 @ 9:14 pm