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1. Gold has traded between $1,212 and $1,221 so far today…as of 7:00 am Pacific, bullion is flat at $1,216 an ounce…Silver is up slightly at $15.37…Copper is unchanged at $2.75…Nickel has retreated 10 cents to $6.02 while Zinc has added a penny to $1.18…Cobalt remains steady at $31.75…Crude Oil is trying to rebound, back above $68 a barrel after briefly touching a 6-week low…Saudi Arabia, Russia, Kuwait and the United Arab Emirates have all increased production to help compensate for an anticipated shortfall in Iranian Crude supplies once U.S. sanctions come into force later this year…the U.S. Dollar Index is up one-quarter of a point at 94.91…as expected, the Federal Reserve kept interest rates unchanged yesterday but upgraded its outlook on the U.S. economy to “strong”…another interest rate hike is probable next month…tomorrow the Labor Department reports non-farm payrolls for July…

2. Gold demand in the first half of the year dropped to its lowest level in 9 years while the global market declined 4% in the 2nd quarter, according to the latest report issued today by the World Gold Council (WGC)…the WGC said that Q2 global Gold demand dropped to 964.3 tonnes, down from 1,008 tonnes consumed in the 2nd quarter of 2017…for the first half of the year, global Gold demand totaled 1,959 tonnes, a drop of 6% from the first half of 2017…“Slower inflows into Gold-backed exchange-traded funds (ETFs) created a weak comparison against the highs of last year, contributing to the lowest H1 demand since 2009,” the report stated…

3. China’s top leaders have pledged economic stability just as data from the world’s 2nd-largest economy suggested that the country was starting to feel a pinch from initial U.S. tariffs…in a statement carried by China’s state media after a meeting of the Politburo, Beijing said it will take targeted measures to solve issues in the economy…the Chinese economy is facing “some new problems and new challenges,” said the statement carried by state-run Xinhua news agency…“There are obvious changes in the external environment.  We must do a good job in stabilizing employment, finance, foreign trade and investment, and expectations”…the statement did not specifically mention China’s ongoing trade tensions with the United States…analysts said the Politburo’s communication suggests that Beijing will be fine-tuning its economic policies with some form of easing expected…“China’s top policy makers are clearly concerned about two issues: the sharp slowdown of credit growth and the uncertainty due to the trade war.  As such, they called for more proactive fiscal policy and infrastructure spending,” Macquarie economists Larry Hu and Irene Wu wrote in a note…Beijing’s economic growth target for 2018 is around 6.5%…this year, China posted 2nd quarter GDP growth of 6.7%, slightly lower than 6.8% in Q1…even before the trade tiff with Trump, the Chinese government was already managing a slowdown in its economy as Beijing cracked down on high debt levels and heavily polluting industries…

4. The Dow is up off 120 points through the first 30 minutes of trading…President Trump’s negotiating tactics with China have unnerved some investors again today with Trump talking about jacking up the tariff rate to 25% from 10%…hearings on the proposed next round of tariffs against China have been delayed to early September…investors betting against Tesla (TSLA, NASDAQ) lost more than $1 billion this morning as the company’s shares rallied the most in over 2 years (see below), according to estimates from financial technology firm S3 Partners…in Toronto, the TSX is off 82 points…Kirkland Lake Gold (KL, TSX) hit a new high again yesterday after reporting another stellar quarter while painting an even brighter picture for the balance of 2018…Superior Gold (SGI, TSX) has reported record Q2 production at its 100%-owned Plutonic Gold mine operations in Western Australia…the company is on pace to produce 100,000 to 110,000 ounces of Gold this year and anticipates continued improvement in grade and costs during the 2nd half of 2018…the Venture is flat at 701.50 through the first 30 minutes of trading…Sokoman Iron (SIC, TSX-V) bounced off new support around 21 cents yesterday and is up half a penny at 23.5 cents as of 7:00 am Pacific…

5. Coeur Mining (CDE, NYSE) is buying out Northern Empire Resources (NM, TSX-V) for $117 million CDN (inclusive of the approximately 7.4 million Northern Empire shares currently owned by Coeur) in an all-stock transaction…Northern Empire’s principal asset, the Sterling Gold Project in Nevada, consists of 4 high-grade heap-leachable deposits with a total Inferred Gold resource of approximately 709,000 ounces averaging 2.23 g/t located on a dominant 143 sq. km land package approximately 185 km from Las Vegas within the historic Walker Lane trend…the high-grade Sterling deposit is a fully-permitted, past-producing mine with near-term, low-cost, low-capital production potential…the remaining deposits are collectively known as the Crown Block, which contain significant exploration potential, and the land package also includes 17 new targets that remain untested…Northern Empire is up 20 cents on the news at $1.56 as of 7:00 am Pacific…

6. Wesdome Gold Mines (WDO, TSX) surged to a new 52-week high of $3.83 in early trading after posting solid Q2 financial results…highlights for the quarter, compared to the same period last year, included net income of $5.7 million or 4 cents per share, a 33% jump in Gold production (16,628 ounces), a 35% increase in revenue ($31.4 million), a 30% decrease in cash costs to $686 (U.S.) and and a 28% decrease in AISC to $962 (U.S.)…Duncan Middlemiss, President and CEO, commented:  “The Eagle River complex continues to outperform.  At Kiena, drilling continues to return high-grade results at economic widths, and we intend to release a resource update by the end of the year.  As previously announced, we have also decided to immediately extend 4 drill drifts located off of the exploration ramp by a total of 450 m in order to effectively test the size of this deposit and complete infill drilling more quickly. Additionally, this development could be useful for production purposes in a restart scenario.  With a current cash balance of $26.7 million, we are well positioned to continue our development plans for both the Eagle River complex and Kiena mine”…

7. Tesla (TSLA, NASDAQ) shares have surged this morning after the electric car maker beat Wall Street’s revenue expectations…CEO Elon Musk also apologized for being impolite on a previous conference call with analysts and reiterated a promise for future profitability…Oppenheimer, which upgraded Tesla shares to outperform following this latest earnings report, told clients the company may finally be on track with Model 3 production…“With higher volumes and slower spending, we believe Tesla has reached a critical inflection point in its development,” the Oppenheimer analysts wrote. “While we have been cautious on Model 3 ramp, we believe gross margin performance on Model 3 will carry the stock over the next 12 months or more”…even Goldman Sachs, which has consistently advised clients to sell Tesla stock (and continued to do so today), conceded that the quarter was “solid” for the Palo Alto, California-based company…“This was a positive quarter.  Automotive gross margins, cash burn, and ending cash balance were better than expected.  In addition, the company may have turned the corner on its historical operational mis-execution,” the Goldman note read.  “We see the 2nd quarter as a positive step for Tesla as a manufacturing organization, but a step that requires continued forward momentum in cost control, operating efficiency, and ultimately positive cash flow”…

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