Gold has traded between $1,123 and $1,144 so far today…as of 9:45 am Pacific, bullion is down $15 an ounce at $1,128…Silver has plunged 86 cents to $15.95…Copper is flat at $2.59…Nickel is off 8 cents to $5.08 while Zinc is unchanged at $1.27…Crude Oil is even at $51.00 a barrel while the U.S. Dollar Index has jumped a full point to 103.22…
BNP Parnibas on the greenback’s continuing surge: âUSD bullish momentum is building again but we would emphasize that markets are in many ways now pricing almost a best-case scenario for the USD in terms of fiscal and monetary policy. And while the case for USD gains over the course of 2017 is sound, risks of a reversal in Q1 remain elevated – a break in the risk environment, external geopolitical events, or concerns about the new administrationâs trade and FX policy are all possible catalysts.â
The brutal sell-off in Gold ETFs continues, aided by greenback strength…combined with weak physical markets in China and India, bullion is struggling to find support…Indian demand has suffered from a cash crunch in recent weeks due to Prime Minister Modi’s demonetization scheme, while China has limited imports into the world’s biggest Gold market as it grapples with a myriad of issues…updated Gold chart below…
Solar Panels, Plastics & Chemicals Are Demand Drivers For Silver
The use of Silver for photovoltaic cells and ethylene oxide will rise by roughly one-third from 2015 to 2020, according to a report issued today by the Silver Institute…photovoltaic cells are used to make solar panels, while ethylene oxide is used as a part of the production of plastics and chemicals…these two uses of the metal will collectively consume an average of 120 million ounces of Silver per year from 2016 to 2020, an increase of 32% compared to 2015, the Silver Institute said…
Chinese Bond Sell-Off
The big bond sell-off in China overnight forced the Chinese central bank to intervene in the short-term money market…the bond collapse adds to broader concerns about the Chinese economy, which likely grew at its slowest pace in more than 25 years in 2016, weighed down by a growing debt load and money-losing state-owned industries…
Higher interest rates in the U.S. will make it harder for China to manage its exploding debt (not that the Americans don’t have a debt problem of their own – the markets just aren’t paying attention to that now)…the Asian giant has increasingly relied on borrowing in order to keep growing while simultaneously trying to block capital from fleeing for more fruitful shores in America…the country has lost around $1.2 trillion of its foreign reserves, or around a quarter of its total, in the last 2 years as billionaires and average citizens transfer savings to the safety of overseas markets…
Chinaâs $9 trillion bond market remains overwhelmingly driven by domestic investors despite some opening up to foreigners this year…
Updated Gold Chart
This Gold chart is very straightforward and shows how bullion’s slide has further to go if the metal can’t quickly reclaim support…
On this 1-year daily chart, you can see how Gold has fallen below downtrend support at $1,140…next stop, if buyers don’t step in very soon, is $1,094…
We’re seeing new price lows but not new RSI(14) lows which is positive – that sort of divergence often occurs when markets are in the process of putting in important bottoms…
The best thing for Gold would probably be something like a Brexit in reverse, a $100 washout to the downside over a day or two which would splatter enough blood and bring intense fear into the market for a final bottom…
There’s no major panic or “blood in the streets” yet with regard to Gold – that may have to happen, so be prepared…
In Today’s Morning Musings…
1. Extremes in the Dow – technical update…
2. What Canopy Growth (CGC, TSX) is telling us about the marijuana sector…
3. Sir, can I have some more Zeolite, please?…
4. Very bullish reading on a North American Oil producer…
Plus more…click here to read the rest of today’s Morning Musings and all BMR exclusive content, through a risk-free Pro, Gold or Basic package, or login with your username and password…
repost – this is what scares me the most from VanEck
In the longer term, however, our conviction for a strong gold market remains,â Foster said.
Markets are optimistic that Trump will be able to solve imminent issues, Foster said.
OF COURSE they would say this.. they don make any dough unless peeps put their dough into their etfâs.. they sense the scared populus and the lack of any conviction from the goldsters.
like a company saying there is no material reason for a SP decline then they go tits up the next weekâŚ
Comment by Jeremy — December 15, 2016 @ 10:16 am
I told ya CNZ would probably see a buck. No one listens. Well, maybe all the impatient will listen to this with GGI. This is a simple correction. The chart has not broken out from its uptrend going back to Oct. I don’t multifly all the numbers and do all the fancy do dad stuff to come up with fibonacci. I use a very simple 3 second method that was taught me years ago. Take a piece of paper and place it on an angle from the bottom of .06 in October to the second higher bottom in november. If the correction does not cross below that angled line along the first 2 bottoms, we still have an uptrend chart. So, it would have to come to .10 to violate this uptrend. Did anybody notice how fast the bids built when it hit .11 this morning. Just saying. Works like a charm every time. Hey, lets do it another way. Lets take the high of .19 and subtract it from .06, that gives us .13. Now, multiply that times 60%, and you have 7.8, we round to .08. .19 minus 8 =.11. I bought some at .125 yesterday and .11 today. Do you honestly think I am worried about losing money on a stock at these prices that could be the mining stock of the year in 2017.
Comment by dave — December 15, 2016 @ 1:39 pm
blo in cdn market down 4.. on US market down 2… when will people learn to not put market orders in!!!!
Comment by Jeremy — December 15, 2016 @ 1:50 pm
Jon, what are your thoughts on the CLE news? Looks very positive to me.
Comment by Danny — December 15, 2016 @ 2:55 pm
repost – Jeremy – forgot to login again… Dave you got your wish BTW… 1.01
this is what scares me the most from VanEck
In the longer term, however, our conviction for a strong gold market remains,â Foster said.
Markets are optimistic that Trump will be able to solve imminent issues, Foster said.
OF COURSE they would say this.. they don make any dough unless peeps put their dough into their etfâs.. they sense the scared populus and the lack of any conviction from the goldsters.
like a company saying there is no material reason for a SP decline then they go tits up the next weekâŚ
Comment by Patricia — December 15, 2016 @ 4:22 pm
That’s pretty cool Dave. That paper trick, I tried it and the correction does not cross below the angled line.
Comment by Dan1 — December 15, 2016 @ 5:55 pm
Jon, I am interested whether or not there are conductors at the Q anomaly. GGI is showing the magnetics but what about the conductance. A VTEM would be required unless the mineralization is too deep. Anyone care to comment?
Comment by Dan1 — December 15, 2016 @ 6:33 pm
Hey guys…let’s keep cool heads here.
We go thru’ this rhetoric every year at this time where everyone is fed up with the end of year Venture markets….Just sit tight…it will pass.
No person is right every time and no indicator or trading system works perfectly every time, that should go without saying.
All of us express our opinions and have the right to do so.
So please let’s not get into putting anyone or his/her opinions down.
I truly believe 2017 will be a very good year for us.
Merry Christmas to everyone and God Bless.
Comment by John - BMR — December 15, 2016 @ 6:40 pm
Good post John.
Comment by dave — December 15, 2016 @ 7:56 pm
thank you good luck to everybody
Comment by bcguy — December 15, 2016 @ 8:27 pm
I think gold will rebound shortly. The dollar/Dow trump rally is not sustainable.
Comment by Sameer — December 16, 2016 @ 6:40 am
Nothing like an international “incident” to give Gold a little boost…Chinese Navy warship has seized (stolen) an underwater drone deployed by an American oceanographic vessel in international waters in the South China Sea…anxiously awaiting a Trump tweet on that one…stocks back off, Gold heads higher…if I were the Chinese, I wouldn’t be messing with Mad Dog Mattis…silly move by the Chinese to test Trump…
Comment by Jon - BMR — December 16, 2016 @ 8:42 am
Tweet away Donald, tweet away!
Comment by Laddy — December 16, 2016 @ 8:50 am