Gold has traded between $1,243 and $1,258 so far today…as of 12:10 pm Pacific, the yellow metal has recouped most of its losses from earlier in the day and is now down just $3 an ounce at $1,253…Silver is now flat at $18.25…Copper has added 5 cents to $2.66 while Nickel has jumped 13 cents to $4.63…Crude Oil is unchanged at $51.05 a barrel while the U.S. Dollar Index is also steady at 100.55…
Base metals got a lift today as China returned from a 2-day holiday to buy up metals following brighter global manufacturing reports, while Zinc and Nickel tracked a rally in steel…factories across Europe and much of Asia posted another month of solid growth in March, rounding off a strong quarter for manufacturers overseas, while the U.S. economy continues to pick up steam – much to the astonishment of the alt-left, anti-Trump propaganda press…
Strategists with UBS have tempered their forecasts for Gold prices but remain bullish, calling for an average price of $1,300 an ounce in 2017…UBS has been optimistic regarding Gold for some time due to expectations for an environment of moderate interest rates, a weaker U.S. dollar against currencies of developed nations, and general macro uncertainty that encourages diversification into the yellow metal…
“We think these factors remain supportive of higher Gold prices,” said a research report today from strategists Joni Teves and Roque Montero. “Moreover, lean Gold positioning suggests that there should be ample room for gold allocations across a wider, more diverse set of investors to grow. But while our core view is unchanged, we think that market developments over the past several months do warrant some recalibration of our price expectations.”
Despite its modest bullishness, UBS is not factoring geopolitical tensions into its equation and how Gold may ultimately respond to those – there are more “hot spots” than ever around the globe right now (a horrific gas attack in Syria by the Assad regime being the latest example), and one can’t help but think the Trump Team will have to soon start flexing American military muscle…
Susan Rice, Obama’s National Security Advisor who is now embroiled in a growing and potentially massive scandal over the use of “incidental intelligence” improperly used against Trump and his officials, including illegal (criminal) leaking to the media, declared earlier this year on National Public Radio, “We were able to get the Syrian government to voluntarily and verifiably give up its chemical weapons stockpile.” Yet another Giant Lie from Rice or just outright incompetence?…
Cobalt Hits New Multi-Year High
Cobalt prices have broken the $25 barrier, hitting levels not seen in about 9 years and double what they were just 6 months ago…the possibility of a spike to the $40 area this year can’t be ruled out given Cobalt’s bullish demand-supply dynamics…
Oil Update
Oil prices eased from 1-month highs this morning as a surprise increase in U.S. Crude inventories to new record levels offset support from an outage at the largest UK North Sea Oilfield…WTI prices came within less than 20 cents of $52 a barrel before reversing after the U.S. government reported a weekly rise in Crude inventories of 1.6 million barrels…analysts had expected a decrease of 435,000 barrels, and the build reported by the Energy Information Administration (EIA) caught the market by surprise after an industry group had reported a draw yesterday…
The EIA reported that U.S. production increased by 52,000 barrels a day to nearly 9.2 million bpd…
Nonetheless, there’s a clear pattern of buying on any price dips thanks to a growing belief that cuts from the world’s biggest exporters and the coming high-demand season will prove successful in reducing oversupply in the market…
In Today’s Morning Musings….
1. Growing evidence the Venture is about to accelerate to the upside…
2. Gravity works in EnGold Mines‘ (EGM, TSX-V) favor at Lac La Hache discovery…
3. Updates on TK, BTR and Eskay Heart of Gold Camp…
4. Daniel’s Den – Lots of money to be made on this company that uniquely processes 1.5 million checks a day!..
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