Gold has traded between $1,174 and $1,193 so far today…as of 9:15 am Pacific, bullion is up $11 an ounce at $1,187…Silver is 18 cents higher at $16.11…Copper has climbed 3 cents to $2.72…Crude Oil met resistance again near $62 this morning and is currently up 41 cents at $60.55…meanwhile, the U.S. Dollar Index has slid one-third of a point to 94.77…
The euro rose to a 3-week high today of just above 1.13 while the dollar fell to a 2-week low against the yen after Bank of Japan Governor Haruhiko Kuroda said the real effective exchange rate showed the Japanese currency is “very weak”…President Obama on Monday denied expressing concern about the greenback’s strength in private conversations at last weekend’s G-7 meeting, which means he probably did…
Gold faces strong technical resistance at $1,200 but is underpinned by solid support between $1,150 and $1,170…
Holdings in the SPDR Gold Trust fell to their lowest since January at 705.72 tonnes yesterday…in India, worries about a poor monsoon and a lack of wedding-related buying are holding down demand…
Government bond yields in the world’s most advanced countries rose to fresh yearly highs today, deepening the bond market rout since late April…money managers and analysts say the abrupt turn of the bond markets suggests investors are adjusting their investments amid improving sentiment toward growth in the U.S. and the euro zone, receding fears over deflation risks and a shift by the Federal Reserve into tightening monetary policy later this year…
Oil Update
Oil futures gave back some gains after initially jumping today after data showed U.S. Crude stocks fell the most since July last week as refineries hiked output…
Canada’s Crude Oil output will continue to grow over the long-term but at a slower pace than previously projected, reflecting many project postponements resulting from the slump in Oil prices, the country’s main energy trade group says…the Canadian Association of Petroleum Producers said yesterday it expects Canadian Crude output, mostly from Alberta’s Oil sands, to reach 4.96 million barrels a day by 2025…that forecast is less than the previous estimate of 5.6 million barrels a day and the 6.0 million barrels a day it had forecast back in 2013…
Today’s Equity Markets
Asia
China’s Shanghai Composite fell 8 points overnight to close at 5106…the U.S. index provider MSCI’s decision to delay the inclusion of mainland-listed A-shares in its emerging market index weighed on the red-hot Shanghai today, while the rest of Asia put up a mixed performance amid choppy trading…
China’s central bank has lowered its 2015 economic growth forecast to 7.0%…that’s down slightly from its last forecast, but still a hefty figure by world standards…the central bank also lowered China’s inflation forecast to 1.4% in 2015, from 2.2% in the last forecast…
Europe
European markets were up strongly today on hopes regarding Greece…a Bloomberg report this morning said that Germany is considering offering Greek Prime Minister Alexis Tsipras aid in return for committing to one economic reform…meanwhile, Reuters reported that the ECB had raised the cap on emergency liquidity that Greek banks could draw from Greece’s central bank…
North America
The Dow has surged 252 points as of 9:15 am Pacific…the Index is now back in positive territory again for the year…in Toronto, the TSX has gained 117 points while the Venture has added 3 points to 685…CMC Metals (CMB, TSX-V), advancing its Radcliff high-grade Gold project in California, is the volume leader among junior resource companies this morning, up half a penny at 7 cents…John will have a chart update tomorrow with breaking out above resistance at 6 cents…
Discovery Ventures Inc. (DVN, TSX-V) Update
Discovery Ventures (DVN, TSX-V) has solidified a deal for $7 million in credit facilities with Winnipeg entrepreneur Dan Omeniuk who owns Trappers Transport…he’s also be appointed a director, President and CEO of Discovery in the near future…this is a significant development for DVN as it gives the company the access to capital it needs to move its promising Willa-Max high-grade Gold-Copper Project in southeastern British Columbia toward production…
Willa-Max already has a lot of synergies with the mill facilities located only about 130 km north of the deposit…importantly, Omeniuk will bring additional dynamics to the project – beyond his financial strength – given his business contacts, access to equipment, services and key labour…seems like a very strategic fit for DVN…
As we pointed out other day, DVN has started a big run in each of the last 3 summers – so the upcoming 3rd quarter could be quite interesting…DVN is up a penny at 17.5 cents as of 9:15 am Pacific on volume of more than 2 million shares…
Garibaldi Resources Corp. (GGI, TSX-V) Update
Yesterday’s volume in Garibaldi Resources (GGI, TSX-V) was the highest for a single day since July of 2013 when the stock began a major move to the upside that culminated in last summer’s multi-year high…technically, as shown in John’s 2-year weekly chart, GGI is showing signs of an imminent reversal after hovering at a 52-week low between 9 and 10 cents over the last 20 trading sessions…between Mexico and the Grizzly, there are plenty of potential catalysts to once again give GGI a strong 3rd quarter like it enjoyed in each of the past 2 years – perhaps even a phenomenal summer if a drilling discovery is made at the Grizzly which appears to be a very real possibility given the quality of targets there and the district “hit” ratio…
GGI is off half a penny at 9.5 cents as of 9:15 am Pacific on volume of more than 200,000 shares…
Roxgold Inc. (ROG, TSX-V) Update
Roxgold (ROG, TSX-V) announced the signing yesterday of a credit agreement with Societe Generale Corporate & Investment Banking and BNP Paribas with respect to its previously announced $75-million (U.S.) senior debt facility…the company is aiming to put its high-grade (>10 g/t) Yaramoko Gold Project in Burkina Faso, West Africa, into production by the the middle of next year…
Last month, ROG released the latest results from its development infill drilling program at the 55 Zone which included 200.7 g/t Au Gold over 5.9 m (4.8 m estimated true width) in YRM-15-DD-316…the 55 Zone was fully permitted for construction in January of this year…a positive Feasibility Study was released a year ago and envisions an underground mining operation with an initial life of mine of over 7 years, and production of 99,500 ounces per year…
Technically, Roxgold is challenging resistance in the mid-70’s…note that the 50-day SMA has crossed above the 200-day, while RSI(14) continues to climb its uptrend line that goes back to late last year…
ROG is up a penny at 73 cents as of 9:15 am Pacific…
Terrax Minerals Inc. (TXR, TSX-V) Update
Terrax Minerals Inc. (TXR, TSX-V) has started fieldwork on its Yellowknife City Gold Project with the assistance of technical staff from Osisko Gold Royalties (OR, TSX)…this co-operative work follows Osisko’s agreement to invest $2.5-million in Terrax by way of a non-brokered flow-through private placement currently being finalized…
Terrax broke above a downtrend line in January and has been trading in a horizontal channel since then…this is a company to watch closely over the summer as activity at the Yellowknife Project intensifies…
Note: John and Jon both hold share positions in GGI.
Who in hell is Anonymous and why are they selling GGI at $0.095 ?
Comment by Leslie — June 10, 2015 @ 8:26 am
That’s the last of the flow-thru paper from December, Leslie…National Bank and ANON.
Comment by Jon - BMR — June 10, 2015 @ 8:27 am
I hope they(GGI)are still selling tomorrow when my funds deposited today will be good. Have a feeling these prices may not be around much longer, I should say hope they won’t be around much longer…
Comment by Greg — June 10, 2015 @ 11:49 am
Jon, how can GGI possibly make a discovery this summer, their not even drilling yet. If they started today, the possible earliest date for results would be early Sept.
Comment by dave — June 10, 2015 @ 12:12 pm
How can you be sure Jon that’s the last of the paper? I certainly hope so because this stagnant SP is very frustrating. News must be getting real close as the volume is increasing. Only problem is SP going in wrong direction. You would think if positive news forthcoming the SP would be going up, not down.
Comment by Dan — June 10, 2015 @ 12:16 pm
Just doing the math, Dan, from research. These flow-thru funds have been selling out of National Bank and ANON for a while on GGI and what we’re seeing now is the last gasp of that. These are pros, and they’re playing both sides of the trade. They’ll ride it back up. So the flow-thru sellers, at the end of the day, will probably actually make a little money given the tax benefits, considering their average selling price (and they’ll ride the warrants), and those soaking up the flow-thru – retail guys not panicking and seeing an opportunity – and the pros on the other side of the FT trades, will make money on the move back up which we should expect will start shortly with developments at the Grizzly and Mexico. The wonderful world of the junior resource market.
Comment by Jon - BMR — June 10, 2015 @ 3:49 pm
I will get more GGI tomorrow…
Comment by Theodore — June 10, 2015 @ 7:10 pm
Mmmmk, interesting.
Comment by Tombc — June 10, 2015 @ 8:39 pm
Dave, maybe GGI will just drill $1mil worth of holes this summer. Evaluate results and come back next year. They might possibly share a drill with DBV. La Patilla might provide a source of cash if the LOI with the toll milling works out. Unfortunately we won’t know until we get a NR, which IMO is overdue.
Comment by Tom UK — June 10, 2015 @ 10:59 pm
Something going down today,,check it out
A few Majors interested in Sheslay Area Freeport Teck and Antofagasta Minerals Canada major pow wow happening in Vancouver today watch for news come early next week
http://chat.ceo.ca/index.html?6e69c2191a7b
Comment by Harry — June 18, 2015 @ 10:41 am