Gold has traded between $1,256 and $1,272 so far today…as of 9:30 am Pacific, bullion is up $8 an ounce at $1,270 after yesterday’s strong move back above its 50-day moving average (SMA)…Silver has added 22 cents to $17.23 after posting its biggest 1-day gain in 8 weeks yesterday…Copper is off 2 pennies at $2.07…Crude Oil has slipped 75 cents to $50.48 while the U.S. Dollar Index has rallied half a point 94.06 but that’s not holding back Gold…
Gold is trading at a 3-week high on prospects that central bank policies will continue to be accommodative, with the European Central Bank embarking on a corporate bond-buying program and investors betting that U.S. rates will stay lower for longer…the ECB plunged into the corporate bond market yesterday, buying the debt of some of the continent’s biggest companies…
Meanwhile, ECB President Mario Draghi issued a strong warning today, saying the euro zone is at risk of suffering lasting economic damage in the face of weak output and productivity…monetary policy alone cannot generate growth, he told an economic forum…Draghi is absolutely correct…the ECB doesn’t have a monopoly on dysfunctional governments, though…many countries and provincial/state jurisdictions around the world, including North America with the Obama-Trudeau-Wynne-Notley approach, are stifling growth and productivity through over-regulation, excessive personal and corporate taxation, and a general level of government involvement in economies that’s literally smothering the private sector…
Billionaire investor George Soros recently directed a series of “big, bearish investments” after a long break from trading, according to a report in the Wall Street Journal…Soros Fund Management, which handles around $30 billion for the Soros family, sold stocks and bought Gold and shares in Gold miners, amid a “gloomier” view of the global economic outlook and the potential for large market moves…in an interview by email with the news outlet, Soros noted particular concerns over capital flight from China, as well as how the mainland’s political milieu may prevent lasting reform…
Zinc Picks Up Steam
Zinc has climbed to its highest level in almost 11 months…Goldman Sachs has dubbed it the “bullish exception” among base metals amid a widening shortage…
Barrick Gold (ABX, TSX) Tops List For Major Producers With Lowest All-In-Sustaining Costs
Most Gold producers continued to reduce expenses in the 1st quarter with the all-in sustaining cost per ounce for the top 17 publicly listed Gold companies coming in at a weighted-average of $833 U.S. an ounce, according to a report from the mining consultancy SNL Metals & Mining…the lower costs came as Gold prices rose strongly in Q1, improving the profitability picture for producers…
Barrick Gold (ABX, TSX) had the quarter’s lowest AISC at $706 per ounce of Gold produced, which was $130 less than the group median of $836 per ounce, SNL said…Barrick primarily benefited from operating and capital-cost control initiatives, and from lower fuel prices and foreign-exchange gains…Northern Star Resources (NST, ASX) was next lowest with an AISC of $711 per ounce…this was a 5% decline from the previous quarter and a 30% drop from the year-ago quarter, mainly due to lower contracting, labor and supply rates that became effective January 1…Newcrest Mining (NCM, ASX), another Australian producer, achieved the third-lowest AISC at $723…
IAMGOLD (IMG, TSX) reported the highest AISC, compared with the 17 peers included in the study, at $1,084 per ounce of Gold sold…lower sales and an increase in sustaining capital were the culprits…other companies at the higher end of the AISC spectrum were Centerra Gold (CG, TSX) and Gold Fields (GFI, JSE) with AISC of $1,015 per ounce and $961 per ounce, respectively…
Gold 7-Month Daily Chart
Gold has responded bullishly after successfully testing a key support band between $1,200 and $1,220…the metal overcame resistance at its 50-day SMA yesterday, currently $1,249, and what’s critical now is whether the RSI(14) on this 7-month chart can push above a downtrend line…if it does, then +$1,300 Gold becomes a distinct near-term possibility…the ADX trend indicator has turned bullish again after bullion’s sell-off during the last half of May…
The fact the Venture is now hitting new 52-week highs suggests the greater probability is that Gold keeps moving higher…tomorrow’s trading to finish the week will be important…
In today’s Morning Musings…
1. GoldQuest Mining (GQC, TSX-V) closes $5.7 million financing, increases upcoming drill program to 10,000 m
2. Kootenay Silver (KTN, TSX-V) in perfect rhythm…
3. Kitsault district getting more attention as Homestake Resource (HSR, TSX-V) and Dolly Varden (DV, TSX-V) strengthen on Hecla (HL, NYSE) land grab…
4. How Equitas Resources (EQT, TSX-V) is creating a bigger opportunity at its newly-acquired Gold project in Brazil…
Plus more…click here to take advantage of our Spring Sizzler Subscription Special in effect for a limited time only, or login with your username and password to view the rest of today’s Morning Musings…
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athabasca nuclear is changeing name on june 10 /16 to clean cmmodities corp symbol cle new website to cleancommodities.com
Comment by kelly — June 9, 2016 @ 10:03 am
Smart move, Kelly – they’ve done a great job assembling a really solid portfolio of properties over the last couple months…will be a go-to play over the 2nd half of the year.
Comment by Jon - BMR — June 9, 2016 @ 10:17 am
CXO – Lets hope next week she moves up.
HSR – Pershing is starting to buy.
SEK – the bids continue to build after the .06 got taken out yesterday. GMP accumulating 800k at .055 was no fluke.
EQT – great second half of year coming.
ASC – I like it.
This could be an exciting summer instead of the usual dismal summers.
Comment by dave — June 9, 2016 @ 10:23 am
Obama today,”i have never seen someone so qualified to hold this office” my o my that just made me ill.do the us people want another four years of him?? looks like its going to take a nr to get ggi unstuck,the paper must be close to being flushed by now I would think.dec climbing the ladder nicely.
Comment by Laddy — June 9, 2016 @ 10:38 am
nice close on HSR and IDM today.
Comment by Mmurphy — June 9, 2016 @ 12:55 pm
GGI – NR TODAY! oops, just a confirmation of the PSP deal. Well they will have boots on the ground before months end. maybe they will even have a NR to talk about it!
Comment by david — June 9, 2016 @ 1:09 pm
At this rate, we may see 727 by the close tomorrow, that would be a nice way to finish the week.
Comment by Laddy — June 9, 2016 @ 1:11 pm
There were 2 socialists at the White House today, Laddy…Sanders, too! You look at the political environment in the U.S. right now, and elsewhere in the world, and is it any surprise Gold is doing what it’s doing? Just the beginning. Things are seriously messed up.
Comment by Jon - BMR — June 9, 2016 @ 2:04 pm
Couldn’t agree more Jon, let’s watch the venture and gold, silver start to soar while the entertainment begins down south,, stability in the us in the next 6 months and beyond?? Good luck with that!!
Comment by Laddy — June 9, 2016 @ 2:17 pm
Obama today? how soon we forget.
Recall the financial times he inherited. Remember George, ‘this sucker could go down’ Bush, when talking about the economy. I think he’s done pretty well over all, given the fact that the repubs vowed to stymy everything and did pretty well at it.
And now they want the Donald? good heavens. At least he’d be good for the gold price by scaring the world half to death.
Comment by Carl — June 9, 2016 @ 2:17 pm
Jon
so basically what the ECB is now going to do as you mentioned above is print money to buy junk bonds, hmmm wonder how that will turn out, very scary…we all need to be buying all the gold we possibly can, it is amazing that gold is only at 1270.00 bucks a ounce. If not for the Fed trying to manipulate it by threatening to raise interest rates it would probably already be over $2000.00 an ounce. Just a matter of time and we may already be there where no one/the market will listen to a word the FED has to say… I’ve been saying for a long time now and others too that there is no way they can raise rates, but they have to act like they will or gold would be thru the roof and the dollar would be toast.. so the Fed just tries to keep it under control by different members in different parts of the country making statements that they are going to raise in June or September etc., It is almost comical now to watch… BUY GOLD and the gold producers, Saw an article today that Barrick has the lowest cost per oz. to produce at 730.00 I think it was….
Thanks Jon and John for all of the great research you guys put out..
Comment by GREGH — June 9, 2016 @ 2:33 pm
Jon
funny I must be reading too many newsletters or articles, can’t remember where I saw what lol just saw it was you guys that put out the cost per oz to produce re Barrick, like I said good stuff, lol
Comment by GREGH — June 9, 2016 @ 2:35 pm
And Peru is about to receive their first ever polish decent President. Maybe I will stay in Lima. Cancel going back to U.S.
Comment by dave — June 9, 2016 @ 3:08 pm
GGI and WRR need to keep regular newsflow to let shareholders know what’s going on……silence doesn’t help with Gold moving up!
Comment by STEVEN1 — June 9, 2016 @ 4:24 pm
You would think that with the rebound in the venture and the recovery in silver prices that GGI would be doing better, they have been far too quiet.
I did pick up some Umbral, looks like we might get a bounce up there.
Comment by Danny — June 9, 2016 @ 7:45 pm
Hi Guys,
I am looking at KTN.WT and would like to know where one looks for warrant details like expiry. I know you said KTN warrants are good till 2021 but where do I find this info?
I use Stockwatch for a lot of my info but don’t see anything there on warrants except for price quotes. Please don’t tell me one must slog through quarterly filings like MDA’s! Thanks.
Comment by John — June 10, 2016 @ 3:24 am
Check out KTN news release April 21, 2016, John.
Comment by Jon - BMR — June 10, 2016 @ 3:25 am
BGM on the move again! Jon any chance u can post a chart and some TA?
Comment by Sameer — June 10, 2016 @ 6:11 am
Yes, we can look at that, Sameer…as long as Gold keeps going up, BGM should too…
Comment by Jon - BMR — June 10, 2016 @ 7:04 am
Thanks!
Comment by Sameer — June 10, 2016 @ 7:20 am