Gold has traded between $1,262 and $1,279 so far today…as of 9:30 am Pacific, bullion is down $2 an ounce at $1,265…Silver is off 22 cents at $15.40…Copper has retreated a nickel to $2.21…Crude Oil has declined $1.11 a barrel to $36.77 while the U.S. Dollar Index is flat at 97.10…
Rick Rule on the move in Gold, speaking with Kitco News at PDAC: “If this rally falters a little bit, some people will say it’s over and miss the real move, which I believe is to come. What we need to understand right now is that institutional investors have to be in the Gold space because it’s the only sector that’s working.”
Meanwhile, respected Gold analyst Adrian Day told Kitco’s Daniela Cambone that this year’s rally is much different from the one seen early last year. “In the past few years, particularly last year, what you saw with the spike in Gold stocks was short covering, it was virtually all short covering,” he explained. “What you’ve seen this year is different, and it’s not just we haven’t seen the short covering, we’ve actually seen shorts go up on virtually every senior Gold stock.”
Oil Update
The Oil price climb was slowed down today after Kuwait stated that it would only agree to an output freeze if all major producers take part…meanwhile, a report today from analysts at Goldman Sachs said the recent surge in Oil prices was premature and unsustainable…
“While these dynamics (rising prices) could run further, they simply are not sustainable in the current environment,” the analysts wrote. “Energy needs lower prices to maintain financial stress to finish the rebalancing process; otherwise, an Oil price rally will prove self-defeating, as it did last spring. While we still believe Oil will likely rebalance this year and create a deficit market by year end, ‘green shoots’ of a deficit alone are not sufficient for a new sustainable bull market. Only a real physical deficit can create a sustainable rally which is still months away should the behavioral shifts created by the low prices in January and February remain in place.”
WTIC 6-Month Daily Chart
Crude prices are being driven by technical momentum at the moment including a big jump in volume and buy pressure as you can see in our updated 6-month daily chart…the 50-day moving average (SMA) has flattened out and should soon also begin to reverse to the upside, giving prices a further lift…watch for new support at $35 and a test this month of Fib. resistance at $40…the 200-day SMA, currently $44, could also be challenged over the coming weeks…strong sell pressure for more than 4 months has been replaced with buy pressure, so the short-term trend is clearly bullish despite today’s minor retreat…we’re maintaining our long position on the HOU ETF with the aim of locking in profits in the WTIC $40 to $44 range…
Petronas Pushes Back On Trudeau
The “climate change” fanaticism of Justin Trudeau and the Liberal government in Ottawa is now threatening British Columbia’s $36 billion Pacific NorthWest LNG Project according to a report yesterday in the Financial Post…the project, to be located on federal lands on Lelu Island near Prince Rupert, received a largely favorable assessment from the Canadian Environmental Assessment Agency (CEAA) last month, was greenlighted by the B.C. government in November 2014, and received conditional corporate support – or a final investment decision – from Malaysia’s Petronas and its partners in June of last year…but the new federal Liberal government is toughening up environmental reviews of major energy projects to regain “public trust” and as it strives to meet international commitments to reduce greenhouse gas emissions…after spending $12 billion to get the project to this stage, and having suffered multiple delays and setbacks, including aboriginal and environmental movement opposition, the Financial Post says Petronas has conveyed to federal cabinet ministers that it won’t accept additional hurdles and has threatened to walk away from the project if it’s not approved as is by Trudeau by March 31…
In today’s Morning Musings…
1. Cannabix Technologies (BLO, CSE) jumps as much as 50% this morning…
2. NexGen Energy (NXE, TSX-V) reports more stellar high-grade results from its Arrow Zone Uranium deposit at Rook 1…
3. Another high-volume day for Blackbird Energy (BBI, TSX-V) as it releases updated proved plus probable reserves…
Plus more…to view the rest of today’s Morning Musings, login with your username and password, or click here to gain full access to this and other exclusive BMR content and features…
LAD is cleaning up this morning……bought some at 8.5c.
Comment by John - BMR — March 8, 2016 @ 9:59 am
So will it be another after hours Thursday special from Regoci? He really got to change his style. Jon, think we will still hear from GGI this week?
Comment by Dan1 — March 8, 2016 @ 11:14 am
PGX at 20c!!!!
Comment by John - BMR — March 8, 2016 @ 12:10 pm
Got nothing to do with the Sheslay.Ontario acquisitions.
Comment by robinandthe7hoods — March 8, 2016 @ 12:38 pm
GGI – so crews have been mobilized…seems like they left out some key information?
Comment by George — March 8, 2016 @ 1:25 pm
Good news: GARIBALDI MOBILIZES FOR DRILLING AT RAMBO HIGH-GRADE GOLD TARGET
Vancouver, British Columbia, March 8, 2016 – Garibaldi Resources Corp. is pleased to announce that field crews have mobilized to commence first-ever diamond drilling at the Rambo high-grade gold target, part of the company’s 100%-owned Rodadero Gold-Silver Project. Drilling will test this very prospective area for a gold system approximately 6 km east of the company’s Silver Eagle deposit, underscoring the large-scale nature of this emerging mineral camp in central Sonora State.
Exploration work has shown a zonation in metal distribution at Rodadero with high silver and base metal values near-surface in the west, trending north-south for nearly 3 km from Silver Eagle through Reales, to silver-gold in the central part of Rodadero and more gold-rich mineralization further east in the Rambo area.
Contiguous to the Rambo southern border is a small-scale gold-silver mine currently in production, exploiting two main veins. Drilling at Rambo is designed to intersect gold mineralization and a potential new discovery at Rodadero at depths of less than 100 meters in a strongly altered volcanic rock package.
Mineralization at Rodadero, which features 12 targets over nearly 50 sq. km, is interpreted as being related to a large zoned mineralized system that is exposed at various levels from west to east. Rodadero is strategically located in a prolific part of central Sonora in close proximity to several gold and silver mines operated by intermediate and major producers.
Comment by rgiroux — March 8, 2016 @ 1:33 pm
BLO hit a high of 35 for some reason… any inklings??? it settled at 26
Comment by Jeremy — March 8, 2016 @ 2:57 pm
Based on past NR of the drill being mobilized there should be a drilling update at the end of the month with a description of what they hit, unless they hit visible gold or silver on the first hole,which causes a halt but we all know Regoci does not halt a stock. My guess is 3 to 4 days before the drill turns but should be turning this weekend. Anything can happen once the drill enters the strongly altered volcanic rock.
Comment by Dan1 — March 8, 2016 @ 4:01 pm
Technical momentum/breakout, Jeremy.
Comment by Jon - BMR — March 8, 2016 @ 4:10 pm
Thx Jon… 🙂 I love it!!!!
Comment by Jeremy — March 8, 2016 @ 4:57 pm
Anyone heard anything about Athabasca Nuclear (ASC)? Nice run up since 4 days… EQT going back to Garland soon?
Comment by rgiroux — March 8, 2016 @ 6:41 pm
eqt – garland drilling not till late april at the earliest. they want warmer weather and ideally some cash flow. the non dilutive financing , oops, that didn’t happen, will go towards getting brazil up and hopefully generating a production rate in 4 months. we’ll see
Comment by david — March 9, 2016 @ 6:33 am
Yes, David, it would make more sense to get things going in Brazil first. EQT closed nearly the first half of its financing this morning with insiders taking down half the shares. So it’s pretty easy to see where this is headed.
Comment by Jon - BMR — March 9, 2016 @ 6:36 am
Anyone having any issues with quotes from the CSE???
Comment by Jeremy — March 9, 2016 @ 6:57 am
CSE website down confirmed…
Comment by Jeremy — March 9, 2016 @ 7:31 am
CSE back up:) BLO at 30…. yikes:) the PP options will be executed relatively fast I would suspect!:)
Comment by Jeremy — March 9, 2016 @ 8:45 am
That’s what happens when you get a strong breakout, Jeremy…for several weeks now the BLO chart has been telegraphing this…
Comment by Jon - BMR — March 9, 2016 @ 9:06 am
The lack of ability to track it in cdn markets is a pain.. do know if and when stockcharts will conform Jon??
have to tell you I am very glad that I participated in the PP.. and of course always wish you went in heavier, but a toe in is always better than no toe!
I am wondering what the driver is tho..???? is the 100% accuracy testing been reached I wonder.. and the info leaked?? almost a double in a week is odd for sure..
Comment by Jeremy — March 9, 2016 @ 9:25 am
FMS having a good day. So many stocks breaking out in last 3 weeks, wow
Comment by dave — March 9, 2016 @ 9:27 am
a lot of these stocks breaking out without even a news release.
Comment by dave — March 9, 2016 @ 10:14 am
LAD closes financing…
Comment by Jon - BMR — March 9, 2016 @ 10:17 am