Gold has traded between $1,278 and $1,288 so far today as investors prepare for a Fed policy statement shortly…as of 10:00 am Pacific, bullion is unchanged at $1,285…Silver is up 9 cents at $17.44…Copper has surged 6 cents to $2.09…Crude Oil is off 24 cents at $48.25 while the U.S. Dollar Index has fallen one-tenth of a point to 94.80…
Holdings in SPDR Gold Trust rose 0.27% to 898.67 tonnes yesterday, the highest since October 2013…assets in exchange-traded funds backed by Gold have increased every day this month and Silver holders are near an all-time high on mounting concern UK voters will choose to leave the European Union…priced in pounds, bullion has hit its highest level in 3 years…5 polls put the ‘Leave’ campaign ahead, and the Sun, Britain’s best-selling newspaper, has backed a Brexit on its front page…anti-establishment sentiment is strong in the UK as it is in the U.S., and another common thread between the 2 countries is how immigration issues are top-of-mind among Joe Public given the continued ramping up of the radical Islamist terrorist movement…
The FOMC is expected to wind down its 2-day meeting with a 2:00 pm Eastern statement that sheds no light (more Fed bafflegab) on the timing of its next intended interest rate hike…investors currently put the chances of an interest rate hike in July at only 21%, according to the CME’s FedWatch tool which measures 30-day Fed Fund futures prices…expectations for a summer rate hike plummeted earlier this month after the Labor Department reported disappointing job growth for May…
Fresh economic data released this morning: Pipeline inflation pressures rose across the board last month, according to the Labor Department which said its Producer Price Index climbed 0.4% in May, following April’s rise of 0.2%…according to consensus forecasts, economists were expecting to see a 0.3% rise…the recent uptick in gasoline prices has impacted the headline number, however, as underlying inflation remains benign…on an annual basis, the index has declined 0.1%…excluding the volatile food and energy sectors, the core PPI was up 0.3% in May after a 0.1% increase in April…it’s up only 0.8% over the last 12 months, well below where the Fed would like to see it…
The Empire State manufacturing survey shows business conditions in New York improved more than expected during June, the New York Federal Reserve said this morning…the general business conditions index in the manufacturing gauge climbed to a reading of plus 6 from minus 9 in May…
On a not-so positive note, U.S. industrial production fell more than expected in May on a decline in utilities output and auto manufacturing…industrial output declined 0.4% last month after a downwardly revised 0.6% increase in April…
VIX (Volatility Index) Updated Chart
Intriguing long-term monthly VIX chart from John this morning…you’ll notice a series of downtrends and uptrends…the VIX is currently in an uptrend and that’s bullish for Gold and likely negative for the S&P (Dow, NASDAQ, major equity markets) looking further out – later this year and into 2017…
The VIX seems to be sensing that there’s “trouble on the way”…this is what Gold and Gold stocks also seem to be suggesting…
In today’s Morning Musings…
1. Pure Gold (PGM, TSX-V) keeps hitting at the high-grade Madsen Project…
2. Garibaldi Resources (GGI, TSX-V) acquires deposit and pushes deeper into the Heart of Gold Camp…
3. The DR Double Play – GoldQuest Mining (GQC, TSX-V) and Precipitate Gold (PRG, TSX-V)…
4. The Venture 10-bagger – in 1 day!…
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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Axe – I was one of those lucky investors 🙂
Comment by Mmurphy — June 15, 2016 @ 10:15 am
Nice pull Mmurphy. The Fed leaves rates unchanged. BLAH BLAH BLAH. Do we see 1300 gold this week?
Comment by DBReese — June 15, 2016 @ 10:32 am
Does the Fed really know what it’s doing?…..no Fed credibility anymore…Gold is speaking to that…
Comment by Jon - BMR — June 15, 2016 @ 10:36 am
no they don’t jon,kinda like their president and wanna be president,, perfect fuel for trump.
Comment by Laddy — June 15, 2016 @ 10:52 am
Janet and Fed are certain about their uncertainty.
Comment by Daniel - BMR — June 15, 2016 @ 11:32 am
mMurphy – nice trade if you bought low. I did not see it till at .15 and it came down from .19 – thought the run was over for the day. I didn’t want to chance it but was kicking my invisible cat when I saw it was .42. You just never know. I have a good habit of not chasing, but this one bit me.
Comment by dave — June 15, 2016 @ 11:58 am
Hey Dave.. all is well – thank you for asking:) but really wish the healthcare sector would the off the defib machine!:) am wondering if the seasonality is playing a role in PHM/CXV/NHC’s woes..
Comment by Jeremy — June 15, 2016 @ 3:00 pm
Nervous nellies seem to be selling CXO. Jon, have you heard anything on drilling and when it will turn?
Comment by Dan1 — June 15, 2016 @ 3:57 pm
I see it just as normal, healthy trading, Dan1, and the drop today was on lower than average volume. Superb support at .40. I suspect CXO will please us all very, very soon.
Comment by Jon - BMR — June 15, 2016 @ 4:05 pm
Jeremy – Those sectors have cooled off. Money in Lithium and Gold
Comment by dave — June 15, 2016 @ 4:34 pm
NEWS…..V.EQT
Equitas Resources acquisition of Alta Floresta Gold
2016-06-15 18:47 ET – Acquisition
The TSX Venture Exchange has accepted for filing a share exchange agreement dated March 4, 2016, between Equitas Resources Corp. and Alta Floresta Gold Ltd. Pursuant to the agreement, Equitas acquired all of the issued and outstanding shares of Alta Floresta Gold. Alta Floresta Gold is a private British Columbia company which became the legal and beneficial owner of 100 per cent of the issued and outstanding equity interests of Alta Floresta Gold Mineracao Ltd. prior to closing. Alta Floresta Mineracao holds six gold properties and four production licences, over 184,410 hectares of land in the Mato Grosso and Para states of the Federative Republic of Brazil. Alta Floresta Mineracao is focused on expanding the production activities and defining additional gold resources at its Cajueiro project.
As consideration for the shares of Alta Floresta Gold, Equitas will:
Issue 103,653,283 common shares to former shareholders of Alta Floresta;
Issue 5,282,324 stock options to former optionholders of Alta Floresta Gold, exercisable for a period of three years at a price of 15 cents per share.
For further information, please refer to Equitas’s news releases dated Jan. 15, 2016, March 7, 2016, and April 27, 2016, available under Equitas’s profile on SEDAR.
© 2016 Canjex Publishing Ltd. All rights reserved.
Comment by John - BMR — June 15, 2016 @ 6:33 pm
Wow, was expecting a bit of a lift in the metals, but This terrific! Been waiting for what seems forever for this. Nice hot summer ahead!!!
Comment by Laddy — June 15, 2016 @ 10:44 pm