Gold has traded between $1,277 and $1,289 so far today as a volatile week begins ahead of Thursday’s important referendum in the UK…the way this week has started for bullion may not be the way it ends…as of 9:30 am Pacific, Gold is down $12 an ounce at $1,286…Silver is up a penny at $17.48…Copper has added 3 cents to $2.09…Crude Oil has surged $1.31 a barrel to $49.29 while the U.S. Dollar Index is flat at 93.70…
Holdings in SPDR Gold Trust rose 0.59% to 907.88 tonnes on Friday, the highest since September 2013…meanwhile, hedge funds and money managers took their bullish stance in Gold to the highest in nearly 5 years in the week to June 14, U.S. government data showed on Friday….
An increase in support in recent days for the “Remain” campaign in the UK ahead of Thursday’s referendum on EU membership is weighing on Gold today…the British pound, meanwhile, carved out one of its biggest rallies of the past decade after opinion polls over the weekend showed rising support for the Remain side that put it neck-and-neck with the rival Leave camp…the vote is still a toss-up and one also has wonder just how reliable the opinion polls are…HSBC reiterated this morning that sterling is at significant risk should Brits vote to leave the EU…the bank predicts a drop of more than 15% in that scenario…
The murder of British member of parliament Jo Cox last Thursday seems to have changed the terms of the debate ahead of the vote later this week with Prime Minister David Cameron claiming the Leave camp has created a “hostile” and “intolerant” climate in the country through its focus on immigration (it seems you can’t question silly and even dangerous immigration policies without being labeled intolerant or a racist, as we’re also seeing in North America)…the scare tactics being used in this campaign are similar to those that surfaced in the 1988 Canadian federal election fought on the Canada-U.S. “free trade” deal…the bottom line is that a Leave vote is not going to have the Armageddon-like ending that Cameron and others on the Remain side are suggesting…far from it (Britain could actually be better off without being suffocated by EU over-regulation)…if Brits vote to remain in the EU, life will go on but they’ll have to find a way to make a flawed system work better…and the EU is seriously flawed…the burden of EU regulations decided by unelected officials in Brussels (a classic case of taxation without representation) is killing growth and innovation in the 28-member circus…the affects are obvious…the current EU model is actually long-term bullish for Gold…in the end, bullion will win no matter what Brits decide to do on Thursday…
As Money Morning’s Tom Gentile observed in an article this morning, “The UK isn’t about to become an international pariah if the Leave camp wins. No one is going to stop doing business in the country, or Europe, for that matter. The British can leave the Union, but they can’t sail their islands further out into the Atlantic Ocean…there’s too much at stake, and the relationships are too closely intertwined – in or out of the EU.”
India To Lose Central Bank Chief
The sudden decision to step down by the man deemed by many to be the world’s best central banker has raised doubts over the Indian government’s commitment to structural reforms, as well as India’s position as a harbor of safety amid troubles in other emerging markets…Reserve Bank of India (RBI) chief Raghuram Rajan announced over the weekend that he would not seek a 2nd term when his 3-year reign ends in September, and would return to academia instead…Rajan, a former chief economist at the International Monetary Fund, has earned rockstar status in the financial industry for his achievements which include lowering runaway consumer prices and stabilizing the exchange rate…
In today’s Morning Musings…
1. New addition to the BMR Top Opportunities List…
2. Bonterra Resources (BTR, TSX-V) commences 10,000 m drill program at Gladiator Gold Project…
3. Pilot Gold (PLG, TSX) continues to outline large Gold system at Goldstrike in Utah…
4. Updated Silver charts – get ready for some action!…
5. Daniel’s Den – how India’s “Barber Cartel” is an example of a much bigger global problem…
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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Jon, noticed that the other Orex (OX) has started to pick up in volume and there has been a fair bit of insider buying lately. Are you still following this one?
Comment by Danny — June 20, 2016 @ 9:26 am
AMY-v.. having a good day. Up 100% at the moment.. one of Larry Reaugh’ companys
Comment by GregJ. — June 20, 2016 @ 9:42 am
OX is a good pick-up at .02-.025, Danny. At some point it’s going to take off.
Comment by Jon - BMR — June 20, 2016 @ 12:14 pm
Jon, about an hour after I posted about OX, someone went in and bought a block of about 500,000 shares, maybe something is up, increase in volume is usually the first clue.
Comment by Danny — June 20, 2016 @ 1:19 pm
Coral Gold (CLH, TSX-V) resumes at 9:45 am Pacific after announcing it has sold its Robertson Gold Property in Nevada to Barrick for $20 million CDN (cash)…
Comment by Jon - BMR — June 21, 2016 @ 8:22 am
Tomagold (LOT.V) halted…Hmmmm
Comment by Dan — June 21, 2016 @ 6:46 pm