Gold has traded between $1,251 and $1,259 so far today…as of 11:45 am Pacific, bullion is flat at $1,254…Silver, also higher earlier in the day, has slipped 4 cents to $16.47…Copper is up a penny to $2.72…Nickel has jumped 11 cents to $4.42…Crude Oil, at $46.27, has climbed 50 cents a barrel while the U.S. Dollar Index has rallied one-fifth of a point to 94.03…
Markets will be focusing tomorrow and Wednesday on the Federal Reserve’s Open Market Committee meeting…no changes in U.S. monetary policy are expected but the tone of the FOMC statement, as always, will be important to traders and investors…Fed Chair Janet Yellen has sounded a more dovish tone on U.S. monetary policy just recently, perhaps due to reduced expectations for fiscal stimulus…
Gold prices are holding above $1,250 despite stronger-than-expected preliminary manufacturing data out of the U.S. this morning…research firm IHS Markit said its flash Purchasing Managers Index for July rose to a reading of 53.2, up from June’s final reading of 52.0 – the strongest rise in the manufacturing sector since January…
Odds ‘n Ends…
Philippine President Duterte, no fan of the mining sector, says he will tax miners “to death” if he has to in order to compensate for alleged environmental damage…Nickel prices have turned higher as a result…
An estimated 5,000 workers at the giant Grasberg Copper mine operated by Freeport-McMoRan’s Indonesian unit will extend their strike for a 4th month in an ongoing dispute over layoffs and employment terms…
Hedge funds and money managers have increased their net long position in Copper to the highest since February…
A new Lead and Zinc mine in northwestern Cuba is on track to start production in October as part of the Caribbean Island’s attempt to breathe fresh life into its mining sector…
Goldman Sachs is most bullish on technology and financial companies for the balance of 2017 with strategist David Kostin adding that his year-end price target for the S&P 500 is about 3% below Friday’s close…the fact the firm is not pushing commodities at the moment has to be considered a bullish contrarian indicator…
Analysts at Bespoke Investment Group have pointed out that the best-performing Russell 1000 index stocks between Election Day and Inauguration Day have been the laggards since January 20…they also found that some of the worst post-election performers are now outperforming…
The Oil market won’t reach a lasting turning point until the 3rd quarter of 2018, according to Credit Suisse…the bank today pushed out its expectation for the long-awaited rebalancing of supply and demand until 2019…
IMF Calls For Lower U.S. Growth
It shouldn’t be surprising that the International Monetary Fund, which excels at channeling money from rich countries to poor countries as part of its globalist agenda, doesn’t have much faith in Trumpism: The IMF has lowered its economic growth forecasts for the United States to 2.1% for this year and the next, down from the 2.3% for 2017 and 2.5% for 2018 that it had predicted in April…the global financial institution cited the “uncertainty” over the Trump administration’s policies as the main reason for the downgrade. “The major factor behind the growth revision, especially for 2018, is the assumption that fiscal policy will be less expansionary than previously assumed, given the uncertainty about the timing and nature of U.S. fiscal policy changes,” the IMF said in its latest World Economic Outlook released yesterday…the IMF also listed the U.S. economy’s sluggish start to 2017, with Q1 growth of just 1.4%, as another factor in its slashing of current forecasts, though Q1 weakness has been a pattern in recent years…consumer spending is strong and business confidence has surged…the downgrade comes as the U.S. prepares to release its growth numbers for the 2nd quarter this week with economists predicting that growth improved to 2.7%…
Copper Update
Copper continues to look healthy from a technical standpoint…the metal found strong support (Fib.) as expected around $2.50 and has broken out above a downsloping flag on this long-term (20-year) chart…buy pressure (CMF) continues to increase but conditions are far from overbought, raising the strong possibility we’ll see $3 or higher before the end of this year…
The big turnaround for Copper came at the beginning of 2016 when the price touched the long-term uptrend line around $1.90 just as most investors were extremely bearish…at the same time, RSI(14) hit levels not seen the 2008 Crash and the 60-cent bottom in late 2001…
Gold vs. 10-Year Treasuries
Gold will generally move in the opposite direction of the yield on the U.S. 10-year Treasury note…this 15-year monthly comparative chart, therefore, is important as it should give us some valuable clues as to the direction of both over the balance of 2017…
Interestingly, both have been dealing with resistance at downtend lines but Gold looks more likely to break out…you can also see how the yellow metal is very close to “decision time” and that a move through $1,300 would be a “game-changer” on the charts…
In a relative sense, Gold has been steady vs. the TNX with the metal bouncing along a long-term uptrend line (bottom of chart)…this leaves leaves plenty of room for a Q3 Gold lift-off…
In today’s Morning Musings…
1. Goldcorp deal makes this Venture stock more attractive than ever…
2. Understanding the “Big Picture” with Silver…
3. Trader Jack is smiling…
4. Daniel’s Den – a Venture Silver producer that looks particularly attractive…
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Last year’s BMR Top 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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CSR Targets Asian Market for Cobalt
COQUITLAM, BC, July 25, 2017 /CNW/ – Castle Silver Resources Inc. (TSX.V: CSR, OTC: TAKRF, FRANKFURT: 4T9B) (the “Company” or “CSR”), is pleased to provide a corporate update as the company advances its battery sector strategy through its proprietary Re-2OX process after recent meetings in Asia.
Highlights:
SGS Lakefield has produced a 14.8% cobalt concentrate from recently sampled material (see July 19 news release) from the first level of the Castle mine;
The cobalt concentrate will now go through CSR’s proprietary Re-2OX process;
The Re-2OX process is designed to meet the cobalt hydroxide specifications of four large Japanese metal trading companies that CSR management met with recently in Japan.
Frank J. Basa, CSR President and CEO, commented: “I’m excited about how we’re advancing our cobalt strategy for the battery sector, moving closer to filling a request for client specific test samples of cobalt hydroxide sourced from the Castle mine and created through our 100%-owned Re-2OX process.
“While in Asia, besides our dealings in China and with some large metal trading companies in Japan, we met with officials from a Japanese car manufacturer that produces electric vehicles. Cobalt’s critical role in electric vehicle batteries is going to drive even greater demand for cobalt product. As an innovative leader in the northern Ontario Cobalt-Silver Camp, CSR is aggressively implementing its action plan to seize exciting opportunities in the growing cobalt sector,” Basa concluded.
Exploration Update
Surface drilling, additional underground sampling and preparations for underground drilling continue at the Castle mine near Gowganda, Ontario, a high-grade past silver producer.
The shallow-dipping 300-metre thick Nipissing diabase intrusive that underlies a large portion of the Castle Property is interpreted to be a heat source that mobilized various metals – notably, of course, silver intimately associated with cobalt, but also gold, nickel, copper and zinc.
Meanwhile, a work program is in progress at the Beaver Property, a high-grade past silver producer considered very prospective for cobalt mineralization, near the town of Cobalt.
Private Placement Closing
Further to the Company’s news release dated July 14, 2017 announcing the closing of a non-brokered private placement, CSR confirms that it has now raised and closed gross proceeds from that financing in the amount of $897,500 and issued 4,487,500 units at a price of $0.20 per unit.
75,000 units issued in connection with the private placement are subject to a four-month and a day hold period expiring November 26, 2017, in accordance with applicable securities laws. All other terms of this completed private placement remain the same.
Quality Assurance/Quality Control
An 82 kilogram sample of vein material recently taken from the first level of the Castle mine was crushed to -10 mesh and blended by SGS Laboratories in Lakefield, Ontario, from which a representative sample was submitted for analysis by Lead Fusion Fire assay for silver and gold. Other metals, including cobalt, were assayed by ICP after multi-acid digestion.
A high-grade cobalt concentrate was recovered by SGS Laboratories using the Wilfley table. The material was fed to a one-quarter size Wilfley table using a hopper and vibratory feeder. The Wilfley concentrate, middling and tailing streams were collected. All three products were filtered, dried, weighed and sampled for assay.
No blank or standard was inserted within the sequence of this met test material by the company. CSR relies on internal SGS laboratory independent QA/QC which allows the disclosure of the results provided.
Qualified Person
Claude Duplessis, PEng, of Goldminds Geoservices Inc., a geological, environmental and mining consultant, is an independent qualified person in accordance with National Instrument 43-101, and has reviewed and approved the contents of this news release.
About Castle Silver Resources Inc.
Castle Silver Resources Inc. (formerly Takara Resources Inc.) is a TSX Venture-listed junior natural resource company focusing on the exploration and development of former silver and cobalt mine properties in northern Ontario including the Castle Silver mine near Gowganda and the Beaver and Violet mines near Cobalt. Additional information on the Company’s properties is available by visiting its website at http://www.CastleSilverResources.com.
“Frank J. Basa”
Frank J. Basa P. Eng.
President and Chief Executive Officer
Comment by diesel — July 25, 2017 @ 5:31 am