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January 13, 2017

BMR Morning Market Musings…

Gold has traded between $1,187 and $1,202 so far today…as of 10:45 am Pacific, bullion is up $1 an ounce at $1,196…Silver is flat at $16.75…Copper has jumped another 4 cents to $2.67…Nickel has rebounded 6 cents to $4.74…Zinc is up 3 cents to $1.26 as it closes in on a new multi-year high…Crude Oil is off 42 cents a barrel at $52.59 while the U.S. Dollar Index is down one-tenth of a point to 101.30

Gold has enjoyed a strong week as investors have been reminded that politics, even at the best of times, doesn’t move at the speed of markets…President-elect Trump will be inaugurated a week from today and, not surprisingly, parts of the Washington establishment have been working feverishly through the mainstream media to delegitimize his election victory and undermine his ability to govern before he even steps into the White House…with the CIA as one of the culprits, this really changes the dynamics for bullion in 2017…we’ll explore that in more detail over the weekend…

A new poll from Gallup shows a nation very divided…just 44% of Americans approve of Trump’s Presidential transition efforts while 51% disapprove…by contrast, 83% approved of President Obama’s transition in 2008…even George W. Bush, who like Trump lost the popular vote, enjoyed a 61% approval rating of his transition as he prepared to enter the White House…

China’s Exports Show Worst Fall Since 2009

China’s exports slumped more than expected in December as global trade remained sluggish while the growth in imports also cooled, according to official data released today…

For the month, exports decreased 6.1% on-year in dollar-denominated terms compared with a 0.1% increase in the previous month…meanwhile, imports rose 3.1% from a year ago, down from November’s 6.7% growth…for 2016, Chinese exports dropped 7.7% on-year, the worst fall since 2009, while imports declined 5.5%…that left the world’s second-largest economy with a 2016 trade surplus of $509.96 billion…in yuan terms, 2016 exports dropped 2% on-year while imports picked up 0.6%…

U-Turn

The spot price for Uranium shot 10% higher this week, climbing above $24 a pound for the first time since last September, after Kazakhstan state nuclear-fuel company NAC Kazatomprom JSC said the country won’t produce as much Uranium as planned this year…the retreat by the world’s biggest supplier is the most significant step yet toward rebalancing a market that has been flooded with supplies since the 2011 disaster at Japan’s Fukushima Daiichi Nuclear Power Plant removed a key buyer from the market and tarnished Uranium’s reputation globally…before the accident, Japan was the world’s No. 3 generator of nuclear power, behind the U.S. and France…

Kazakhstan will reduce planned production of Uranium by roughly 10%, or more than 5 million pounds, in 2017…that is equal to about 3% of global output or more than the annual output of the United States…Kazakhstan accounts for almost 40% of world Uranium production…

In Today’s Morning Musings

1. The move to come in the TSX Gold Index…

2. Updates on 3 high-quality non-resource plays…

3. Today’s easing of U.S. sanctions against Sudan further strengthens the case for Orca Gold (ORG, TSX-V)…

4. Daniel’s DenFriday footnotes, a rapid rundown on 8 stocks…

Plus more…click here to read the rest of today’s Morning Musings and all BMR exclusive content, through a risk-free Pro, Gold or Basic package, or login with your username and password…

1 Comment

  1. I bought MXL few days ago, doing good here.

    Comment by dave — January 13, 2017 @ 1:07 pm

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