Gold has traded between $1,204 and $1,216 so far today…as of 12:25 pm Pacific, bullion is up $2 an ounce at $1,214…Silver has reversed higher after touching an intra-day low of $15.07…it’s currently up 7 cents at $15.64…Copper is steady at $2.63…Nickel has added 4 cents to $4.04…Crude Oil, at $44.37, has added 19 cents while the U.S. Dollar Index is relatively unchanged at 96.04…
It has been a wild roller coaster ride for Silver as bearish bets, interestingly, have hit historic levels, pushing net-long positioning to its lowest level in nearly 2 years…this is a sharp contrast to the record bullish bets seen just 3 months ago…Silver’s net length last week dropped more than 90% from the previous week…the sharp drop in bullish bets helped push prices down more than 3% during the survey period…analysts are expecting to see a net short position develop in Silver, which would be the first time in 2 years the market has been net bearish…contrarians will like it…
The fresh weakness in Silver comes at a time when some supply is coming out of the market…data in the 2017 World Silver Survey reports that a total of 265 million ounces of primary Silver was produced last year…Tahoe Resources‘ (THO, TSX) Escobal mine in Guatemala, shut down in recent days thanks to a court order pursued by a radical anti-mining group, represents 8% of total global primary Silver mine supply…if Haywood Analysts are correct that production at Escobal may not resume in 2017, than the mine is likely to lose nearly half of its projected 20 to 21 million ounces this year…
Gold Update
Standard Chartered sees opportunity in Gold around $1,200 but potential remains for some additional weakness: “We think prices are more likely to gain momentum towards year-end as a more dovish FOMC (Federal Open Market Committee) rate-hiking cycle is priced in for 2018-19 and India’s seasonal demand picks up early Q4 2017,” Standard Chartered says. “The most significant hurdle near-term is macro headwinds facing a fragile physical floor. We see India’s GST (effective 1 July) as a temporary obstacle…initial reports reaffirm our view that demand is likely to be weak at first as challenges over invoicing and inventory are resolved, but thereafter to recover; retailers expect most of the issues to be resolved over the next 3 weeks. The 3% GST was believed to be low enough not to stoke illegal sales of Gold, and even though UAE jewelers believe they can benefit from the tax differential, we think that as early seasonal demand emerges and implementation hurdles are overcome, demand should stabilize.”
TSX Gold Index Update
Like the Venture, the TSX Gold Index is supported by a rising 500-day moving average (SMA)…this helps confirm a primary uptrend; however, slight to modest dips below the rising 500-day SMA have occurred on multiple occasions going back 15 years to previous bull cycles…
Fib. support at 171 appears to be the floor for the Gold Index (limiting potential downside to about 10%) which is also quickly approaching RSI(14) support along an uptrend line that started in 2013…a continuation of that RSI(14) uptrend line will be important…
The Gold Index is up 4 points at 190 as of 12:25 pm Pacific…
Crude Oil Update
Several key OPEC ministers will meet non-OPEC Russia on July 24 in St Petersburg, Russia, to discuss the current situation in Oil markets…Kuwait said yesterday that Nigeria and Libya had been invited to the meeting and their production could be capped earlier than November, when OPEC is scheduled to hold formal talks, according to Bloomberg…Libya said today it was ready for dialogue but added that its political, economic and humanitarian situation should be taken into account in talks on caps…
In today’s Morning Musings…
1. Silver’s mysterious moves – what’s next?…
2. Barkerville Mines (BGM, TSX-V) down 42% from its yearly high…
3. Clean Commodities (CLE, TSX-V) discovers the magic of Zeolite…
4. Daniel’s Den – Haywood’s John Tognetti boosts his stake in Constantine Metals (CEM, TSX-V)…
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Did you know that for as little as just over $2 a day, you can be a BMR subscriber and tap into the best analysis and picks for the junior resource sector that you’ll find anywhere? Last year’s BMRTop 50 List returned a whopping 118% and we are delivering market-trouncing returns again in 2017. BMR was the first to call the new bull market in the Venture in early 2016, and our coverage of the commodities space gives you valuable daily insights into price movements and critical trends. BMR is daily information that puts you ahead of the crowd!
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Cxo great news and still in the .20s go figure.. Jon it’s really weird that you guys were a big fan last year,and the company has done nothing but build its value beyond expectations but hardly hear anything about it! With what they have for projects and multiple targets this by far is the most undervalued right now! Cheers everyone
Comment by Greg — July 10, 2017 @ 4:57 pm
We’re still big fans now, Greg, nothing has changed…I agree with your assessment of CXO…but to set the record straight, we’ve been consistently mentioning CXO, as recently as a significant piece yesterday for subscribers…I also arranged in recent days for an interview with Adam Travis, tomorrow morning…I’ll also be back on the property for a site visit later this summer…stock just needs to get above its 200-day and things will start to rock…
Comment by Jon - BMR — July 10, 2017 @ 7:04 pm
Jon do you hold any BGM?
Comment by Sameer — July 10, 2017 @ 9:18 pm
Not at this particular moment, Sameer, but it’s an exceptional opportunity IMHO at current levels…ready to pounce on any additional weakness.
Comment by Jon - BMR — July 10, 2017 @ 9:31 pm
BLO – http://www.marketwatch.com/story/nevada-marijuana-stash-nearly-cashed-after-less-than-two-weeks-of-legal-sales-2017-07-10
Comment by Jeremy — July 11, 2017 @ 4:01 am
TOWER RESOURCES DRILLS 247 METRES OF 0.75% CUEQ AT 0.51% COPPER AND 0.34 G/T GOLD AT RABBIT NORTH
Tower Resources Ltd. has released significant drill results from its flagship Rabbit North project, near Kamloops, B.C. Initial results from the 2017 diamond drill program have returned long intervals of porphyry related copper and gold mineralization in several holes at the Western Magnetite Zone.
Highlights from hole RN17-015, include:
0.51% Cu and 0.34 g/t Au (0.75% copper equivalent) over 247 m;
0.60% Cu and 0.39 g/t Au (0.87% copper equivalent) over 142 m;
0.84% Cu and 0.55 g/t Au (1.21% copper equivalent) over 37.9 m;
0.97% Cu and 0.62 g/t Au (1.39% copper equivalent) over 26.5 m.
The road-accessible Rabbit North project comprises approximately 16,400 hectares in the infra-structure-rich copper and gold porphyry belt of southern British Columbia. The producing New Afton copper and gold mine is approximately 14 kilometres east of the main Rabbit North targets; Highland Valley Copper Mine operated by Teck Resources Ltd is located 28 kilometres to the west.
President Mark Vanry states, “Drill hole RN17-15 returned the most significant drill intercept to date at Rabbit North. The copper and gold grades are comparable to those found in some the of highest quality porphyry deposits in BC. Tower plans to continue aggressive exploration at Rabbit through the remainder of 2017.”
Comment by Jon - BMR — July 11, 2017 @ 5:49 am
GREAT ARTICLE:
https://www.clivemaund.com/gmu.php?art_id=68&date=2017-07-10
Comment by STEVEN1 — July 11, 2017 @ 6:06 am
Thanks, Steven1. If you look at Gold in CDN dollars, it has hit the several year uptrend line as recently projected, so the idea that Gold may have bottomed around here holds some merit.
Comment by Jon - BMR — July 11, 2017 @ 6:12 am