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Gold has traded between $1,262 and $1,277 so far today…as of 10:00 am Pacific, bullion is up $8 an ounce at $1,271…Silver has gained 11 cents to $17.06…Copper is up a penny at $2.11…Crude Oil is off 54 cents at $46.16 while the U.S. Dollar Index has rallied half a point to 94.72…

Reflecting sustained optimism toward bullion, holdings of SPDR Gold Trust, the world’s largest Gold-backed exchange-traded fund, stood at 27.17 million ounces yesterday, the highest since November 2013…

Technical analysts at ScotiaMocatta said their view on Gold is neutral so long as it trades between the $1,303 resistance level and the $1,256 support…

In a research report today, commodity strategists at RBC Capital Markets noted that Gold’s 2016 upswing has been mainly driven by investors, while other sources of demand haven’t followed through.  “In fact, investment demand seems to be the only leg driving this one-legged rally. For us to turn positive, we would need to see this strength replicated elsewhere,” they said.  “Investor sentiment has turned amid a flight to safety, but that seems to be the only sentiment that has in fact shifted.”

Our take on Gold is that the tectonic shifts we’ve seen in this market from a technical standpoint over the last several months, confirmed by the behavior of the Venture and Gold stocks in general, strongly suggests the metal is now in the early stages of a major new bull cycle that will ultimately take prices much higher in U.S. dollar terms over the next couple of years…

Oil Update

Top Crude producer Russia has poured some cold water on the notion that recent drops in production in the Americas, Asia and Africa had wiped out a global production and storage overhang that helped pull down Oil prices by over 70% between 2014 and early 2016…Russian Energy Minister Alexander Novak told reporters yesterday that the global Oil surplus stood at 1.5 million bpd and that the market might not balance out until the first half of 2017…

In Alberta, Crude production outages from the Oilsands following forced closures due to the Fort McMurray wildfire still stood at over 1 million bpd as of mid-week, although operators said they were gradually ramping up output…there has been no facility damage but U.S. investment bank Jeffries cautioned, “We believe (assuming no pipeline damages) it will take weeks to ramp production.”

Meanwhile, U.S. Crude production has fallen 4.7% from a 2016 peak in January to 8.8 million barrels per day (bpd), according to U.S. Energy Information data, and output is down 8.4% from its 2015 high…

In today’s Morning Musings…

1.  New addition to the BMR Top 50 Opportunities List…

2.  Goldstrike Project in Utah could be big winner for Pilot Gold (PLG, TSX)…

3.  Another ramp-up in the works (imminently) for the “Heart of Gold” Camp…

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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