Gold has traded between $1,274 and $1,290 so far today…as of 8:30 am Pacific, bullion is down $6 an ounce at $1,280…Silver is off 7 cents at $17.32…Copper is down a penny at $2.22…Crude Oil is up slightly at $43.74 while the U.S. Dollar Index has rallied another one-quarter of a point to 93.22…
“The difficulty Gold is experiencing in staying above $1,300 does not necessarily mean the bull rally is ending. But the rally may be tired and in need of consolidation. This can trigger profit-taking,” said HSBC analyst James Steel.
The Reserve Bank of Australia yesterday cut its benchmark rate by one-quarter of a percentage point to 1.75%…the move reflects soft inflation and economic sluggishness driven in part by weak demand from China, the largest buyer of Australian exports…adding to concerns were a drop in Chinese manufacturing and signals that euro zone growth is slowing more than previously forecast…although the Reserve Bank of Australia’s decision to lower interest rates overnight didn’t have a major impact on the Gold market, it highlights the continued trend of loosening global monetary policy…
Dennis Gartman, editor of The Gartman Letter, told CNBC’s “Fast Money” that he predicts Gold could finish out the year 10 to 15% above current levels, around $1,500 an ounce…even though he granted the precious metal tends to get to “big, round numbers” like $1,300 and “back off”, Gartman said the fundamental case remains intact due to central bank policies around the world…
In today’s Morning Musings…
1. Colorado Resources (CXO, TSX-V) to add $4 million to its war chest – what does this mean?…fresh interview segment with CEO Adam Travis…
2. Updated charts for 2 Lithium plays…
3. Attractive emerging Gold producer in Arizona…
Plus more…click here to take advantage of our Spring Sizzler Subscription Special in effect for a limited time only, or login with your username and password to view the rest of today’s Morning Musings…
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TSX venture. Healthy pull back or has the “sell In may, go away” phenom showed up again?
Comment by tony t — May 4, 2016 @ 10:13 am
Just some healthy and welcomed profit taking at this point, tony t, and on declining volume…anything beyond that would be more deceptive and less obvious than just a few down days to begin the month of May…the Venture’s supports are clear so this will be easy to monitor.
Comment by Jon - BMR — May 4, 2016 @ 11:20 am
Do holders of GGI still consider it worthwhile at these levels? Also I notice their Mexico silver is w/o any news for quite some time.
Comment by Carl Sundmacher — May 4, 2016 @ 4:27 pm
I mentioned XMG a month ago at .12, just wondering if anyone took advantage. wow, what a run it has had.
Comment by dave — May 4, 2016 @ 4:59 pm
ooops, it was 2 months ago on XMG, it was worth the wait.
Comment by dave — May 4, 2016 @ 5:00 pm
Jon,do you think we will hear from GGI about Rambo drill results soon? Getting a little frustrated waiting for news.
Comment by pole — May 4, 2016 @ 7:01 pm
I don’t know, Pole. They just started drilling over a month ago. Why would u be getting frustrated? They probably wouldn’t have anything, or very little, back from the lab at this point.
Comment by Jon - BMR — May 4, 2016 @ 7:15 pm
Thanks Jon. Deep down I know something good is probably coming. Just the mood I’m in tonite I guess.
Comment by pole — May 4, 2016 @ 8:00 pm
Jon
can you ask Travis how many rigs do they plan on employing when they start drilling this summer, with the NR today re:the private placement they should have plenty of funds to drill drill drill?
thanks
Comment by GREGH — May 4, 2016 @ 10:16 pm
What this news suggest to me, Gregh, are a couple of things: 1) Even in this much improved market, a $4 million financing at a price which is nearly 4 x where CXO was trading at just over a month ago is impressive – who’s behind the deal???? 2) CXO could very well be preparing to expand its drilling beyond the initially announced 5,000 m. I can see them starting with 1 rig and then possibly ramping up, for sure. We’ll put that question to Adam but he may not be ready or able to comment at this point. What a summer this is going to be at KSP!…and the entire area.
Comment by Jon - BMR — May 4, 2016 @ 11:15 pm
Cxo-With this funding the program at (KSP) Inel will be doubled as in drilling this summer.
This is going to be a very exciting drill program
Goodluck Everyone
Comment by TheSkipper — May 5, 2016 @ 3:17 am
GBB- Just read on GBB forum, Frank was sent a bill for closure, from the Ministry. CA very close!!
Comment by bob — May 5, 2016 @ 3:50 am
TheSkipper, you look at the amount of metal in this district, the grades, the new areas that have been opened up to prospectors and geologists due to glacial retreat, the recent infrastructure improvements (which we’ll be touching on soon with Adam), the opportunism of Seabridge…it’s almost mind-boggling…the wealth opportunity for investors is enormous, and it has been magnified by the fact the Venture is in a new bull market…CXO will not be drilling into the unknown…nearly 200 shallow historic intercepts to go on at Inel, plus a remarkable geochem anomaly that exceeds the grades of many Gold deposits in the world…no wonder $4 million is coming into this at 4 times the price from just over a month ago…
Comment by Jon - BMR — May 5, 2016 @ 3:59 am
CXO at 34c…Have picked up more today.
Great buy at this level. IMHO
Comment by John - BMR — May 5, 2016 @ 6:20 am
Jon
couple of questions re: CXO
1. Do you think the stock price will hang around the .35 cent level until drilling starts?
2. Any idea if there is one person or entity taking down the PP or multiple individuals?
thanks
Comment by GREGH — May 5, 2016 @ 8:49 am
XMG – hmm – now if Zimtu can take that success and make EQT move in a similar fashion!
Comment by david — May 5, 2016 @ 8:56 am
A trend I’ve noticed in the current market environment, Greg, is stocks pushing above their private placement prices during a financing…$4 million is a significant commitment, even though we’re in a much better market – there has got to be some power behind that money IMHO…
Comment by Jon - BMR — May 5, 2016 @ 8:58 am
Jon, if I had to guess, I would say a major is taking a big position in the $4 million PP. We will see if that’s the case in short order because the PP will close quickly in my opinion. Big money as you said is probably behind this.
Comment by Dan1 — May 5, 2016 @ 2:24 pm
Dan1, there is certainly some strength behind this PP and this stock when u see a 4-fold price increase in a month immediately followed by a $4 million financing that’s done at no discount. What a great sign. Follow the money, as they say! We know how prolific the geology is. This is a keeper if I’ve ever seen one for a potentially spectacular summer.
Comment by Jon - BMR — May 5, 2016 @ 3:32 pm