Daniel’s Den returns tomorrow (Tuesday) as Daniel is on special assignment today – visit the BMR comments section throughout the day for updates and helpful information.
1. Gold has traded between $1,323 and $1,330 so far today…as of 7:00 am Pacific, bullion is up $5 an ounce at $1,329 after 2 days of losses…Silver has climbed 9 cents to $16.67…Copper is up 4 pennies at $3.17…Nickel has rebounded 4 cents to $6.48…Zinc is steady at $1.47 while Cobalt remains unchanged at $41.50…Crude Oil has firmed up again after a brief pullback and is 22 cents higher at $68.86 while the U.S. Dollar Index is off one-tenth of a point at 90.84…U.S. consumer confidence remains very strong as the Conference Board’s index increased to 128.7 in April, up from 127 the prior month and better than analysts’ estimates…
2. For the first time since January 2014, the yield on 10-year U.S. Treasuries has inched past the key psychological level of 3%…this occurred shortly after the opening of stock trading this morning, though it has since dipped slightly back below 3%…meanwhile, the yield on the 2-year Treasury note also set a multi-year record, topping 2.5% for the first time since September 2008…investors have been selling Treasurys as of late, leading to rising yields, amid expectations of a pick-up in inflation which may encourage the Fed to tighten monetary policy more quickly…Oil prices will be a key factor in that equation…
3. Excellent piece this morning in the Financial Post on how desperate Canadian Oil producers are turning to transport trucks to ship Crude…Crude exports from Canada by road nearly tripled from 2015 to 2017, and continued to rise in the first 2 months of 2018, according to StatsCan data…however, a truck can only carry 200 barrels of Oil, compared with 60,000 barrels in 1 unit train, or nearly 600,000 per day on the Keystone Pipeline (the equivalent of 3,000 trucks)…each one of those trucks needs a driver and enough fuel to carry Crude over long distances…moving Crude by truck is at least 10 times more expensive on a mile-for-mile basis compared with rail or pipeline, but that’s one of the results of anti-pipeline hysteria and climate change extremism in Canada…also, too, is the fact that without a major new pipeline to move Oil and bitumen to the West Coast, the East Coast or Texas’s Gulf Coast, Oil-by-rail has gone from a few tens of thousands of barrels per day 3 years ago, to 150,000 barrels in 2017, an estimated 250,000 this year and nearly 400,000 barrels daily by next year…the strain on Canada’s already tight rail system gets worse by the day…
4. The Dow is up slightly through the first 30 minutes of trading…better-than-expected earnings reports from the likes of Caterpillar, Eli Lilly, United Technologies, Verizon, Coca-Cola and Google-parent Alphabet gave U.S. markets a lift at the open…Freeport-McMoRan (FCX, NYSE), the world’s largest publicly traded Copper company, reported Q1 net income of $692 million or 47 cents per share vs. $228 million or 16 cents per share in the same period last year…meanwhile, Barrick Gold (ABX, TSX, NYSE) has reported slightly better than expected earnings for Q1 of 15 cents per share despite lower production…in Toronto, the TSX is up 12 points while the Venture is relatively flat at 798 as of 7:00 am Pacific…
5. GT Gold (GTT, TSX-V) announced plans this morning for an 18,000-m drill program commencing June 1 at its Saddle South high-grade Gold discovery in northwest B.C., a 2-hour drive from the Eskay Camp…drilling will focus on expanding an impressive 2017 discovery from first-ever drilling that featured impressive grades, thickness and continuity of mineralization over a large vein zone that comes to surface and spans approximately 500 m x 150 m x 500 m…it’s wide open for expansion east and west and is flanked by a Gold-Copper porphyry discovery made late in the season last year along the 2.5-km-long Saddle North trend…RC and diamond drilling results from the high-grade discovery at Saddle South included 51.5 g/t Au over 6.9 m, 17.4 g/t Au over 9.1 m, 15.2 g/t Au over 8 m, 5.8 g/t Au over 20.7 m and 31.8 g/t Au and 1,141 g/t Ag over 3 m…GTT is unchanged at 75 cents as of 7:00 am Pacific…after several months of consolidation, GTT has commenced a new uptrend…the 50-day SMA is now reversing to the upside where GTT has plenty of room to push higher with the 200-day still rising at just above $1.00…
6. Global Blockchain Technologies (BLOC, CSE) is on the move again this morning after announcing that it has added fintech pioneer Richard Schaeffer to its advisory board…as Chairman of NYMEX, Schaeffer was responsible for the company’s transition to electronic trading…in doing so, he played a significant role in moving the financial industry online…it was during his tenure that NYMEX had its IPO and listing on the NYSE, which was the most successful public offering of its time…previously he also served on the boards of Sacred Heart University and the University of Maryland’s School of Business…Schaeffer currently serves as Chairman of the Board for the eco-friendly chain of food trucks in New York called Neapolitan Express Pizza, and he’s an investor in several private companies in commodities and technology…as part of the company’s shift in focus towards incubating new blockchain technologies, Schaeffer brings decades of finance experience and a plentiful base of industry connections to the table…Global Blockchain has also added 4 new members to its Laser Network Advisory Board…
7. Fundamentals are in place for precious metals, especially Silver, to significantly break out of current trading ranges, according to a report from Bloomberg Intelligence…the report said that silver has a history of lagging its industrial metals companions and can rally as much as 50% by simply “catching up”…the report noted, “It’s been about 50 years since Silver’s 12-month range was this narrow, increasing the likelihood of a sharp rally. Essentially unchanged from June 2016, Silver has plenty of room to catch up to the 50% rally in the Bloomberg Industrial Metals Spot Index and 3% decline in the trade-weighted broad dollar.” Mike McGlone, senior analyst at Bloomberg Intelligence, said that fundamental macro forces, especially a weakening dollar, remain the key catalysts for a potential breakout of range-bound commodities like precious and industrial metals. “The weakening dollar, strong global purchasing-managers indexes and bottoming inflation are leading macroeconomic-foundation builders,” he said in the report…
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Comment by rgiroux — April 25, 2018 @ 6:36 am