Gold has traded between $1,195 and $1,207 so far today…as of 11:00 am Pacific, bullion is down $3 an ounce at $1,201…Silver is off a dime at $16.92…Copper is 2 cents lower at $2.59…Nickel has slid 13 cents to $4.45…Crude Oil has climbed 35 cents to $51.43 a barrel while the U.S. Dollar Index is up one-tenth of a point to 101.46…
Better than expected U.S. jobs and housing data pushed 10-year bond yields to their highest since January 3 today, putting some minor pressure on Gold…support has held, however, around a Fib. level in the mid-$1,190’s…how bullion finishes the week tomorrow will be important…
HSBC believes the nature and direction of President-elect Donald Trump’s economic policies are still not clear and may yet impact Federal Reserve policy and Gold. “According to traditional macroeconomic theory, large tax cuts and infrastructure spending would likely – all things being equal – accelerate the pace of projected rate hikes. This would help prevent the economy from overheating. But Mr. Trump may not deliver the fiscal stimulus that markets expect. Senior Republicans in Congress may not endorse substantial increases in infrastructure spending,” HSBC stated…
European Central Bank President Mario Draghi said today that policy makers aren’t convinced a recent pickup in inflation will be sustained, and asked German savers to be patient as they clamor for higher interest rates…euro zone consumer prices rose 1.1% in the year through December, the fastest rate of inflation since September 2013…but in Germany, prices rose by 1.7%, prompting louder calls for an end to ECB stimulus in the euro zone’s largest and most powerful member…
The ECB announced this morning that it would keep its monetary policy unchanged, though Draghi added that the bank stood “ready” to increase its asset purchases in size and duration if it becomes necessary…
Crude Oil Update
OPEC’s total output began falling in December after its members agreed to slash output, the cartel said yesterday, but compliance this month will be critical as the group works toward throttling back its output by 1.2 million barrels a day…the largest production cut in December came from Saudi Arabia, which exports more Crude than any other country and is OPEC’s most powerful member…the kingdom reduced output by 149,000 barrels a day to 10.47 million bpd, drawing it closer to its agreed level of about 10 million barrels a day…Saudi Arabia’s energy minister, Khalid al-Falih, has said the country has actually reduced production much more this month, going below 10 million bpd…Saudi officials have suggested they would cut even further and have played down American producers’ ability to thwart their plans to raise prices this year…
The Wall Street Journal reported this morning that ISIS has ramped up sales of Oil and gas to the regime of Syrian President Bashar al-Assad, providing vital fuel to the government in return for desperately needed cash…despite the Assad regime’s insistence that it’s dedicated to eradicating ISIS with the help of allies Russia and Iran, the irony is that Syria’s purchases from ISIS are helping sustain the radical Islamist terrorists amid unprecedented military pressure on the group…
Oil and gas sales to Assad’s regime are now ISIS’ largest source of funds, replacing revenue the group once collected from tolls on the transit of goods and taxes on wages within its territory…
Teck Resources Ltd. (TECK.B, TSX) & The Parallels With 2008-2009
Interesting long-term monthly chart for Teck Resources (TECK.B, TSX) which shows distinct parallels between 2008–2009 and 2015–2016…the key takeaway is that this chart confirms the resource sector is in a new bull market and that TECK.B has significant further upside potential (it’s trading at just above $31 this morning)…
The 2008 and 2015 drops are strikingly similar, as are the 2009 and 2016 reversals…even sell pressure/buy pressure (CMF) are almost identical for the 2 periods…
After Teck’s move to the upside began in 2009, it didn’t top out until late 2010/beginning of 2011…likewise, it’s reasonable to believe Teck will enjoy a positive 2017 but its percentage gain increase of course won’t be what it was last year when the stock jumped 6-fold…
In Today’s Morning Musings…
1. A 2-cent stock that is being accumulated…
2. 11 juniors release drill results today – 4 push higher, 6 fall and 1 is unchanged…
3. What Colorado Resources (CXO, TSX-V) has learned at KSP…
4. Daniel’s Den – the undisputed champion of telehealth services will thrive, no matter what happens with Obamacare…
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…
“The well mineralized slopes of E&L trend for a considerable distance – 2016 drilling, though consisting of more than 50 holes ”
the pic + byline are from CXO, and what a wonderful pic it is with all those drill sites prepped, but how does that relate to E+L trend ?
Comment by david — January 19, 2017 @ 11:32 am
Man…..someone has to find a good deposit to revive this venture. All these companies drilling and really very little to show for it. We need a glory hole to bring some excitement back to the market! Feels like the party is over and I’m the only one on the venture dance floor. Hopefully DBV can impress with their results and keep that project going and that SOMETHING comes out of the ” heart of gold camp “.
Comment by weatheritout — January 19, 2017 @ 11:35 am
Jon- any comments re GGI?
Comment by johnz — January 19, 2017 @ 12:06 pm
David, the pic and the “byline” are not from CXO – that’s our pic (mine) from a helicopter above the property last July, facing toward the north along the trend (typo, Freudian slip, in the text which has been fixed – thank u – as of course it’s the “Inel” trend and not the “E&L” trend!).
Comment by Jon - BMR — January 19, 2017 @ 12:15 pm
pic – bummer – would have been nice to have those rigs on the E+L 🙂 thx
Comment by david — January 19, 2017 @ 12:22 pm
TK flying under the radar. But not for long I suspect.
Comment by Dan1 — January 19, 2017 @ 12:23 pm
On that note, David, I would expect the E&L rig to be hiding underground at first, from the adit and taking direct aim toward the south…
Comment by Jon - BMR — January 19, 2017 @ 12:28 pm
Constantine (CEM) closed the deal, received $4.5 million earlier today. Keeps a 1% NSR on a property now owned by Tahoe.
Comment by Daniel — January 19, 2017 @ 12:44 pm
TK is starting to gain some traction now, Dan1—-could accelerate quickly given the look of the chart and the fact they’ve got drilling starting soon.
Comment by Jon - BMR — January 19, 2017 @ 1:58 pm
Yes Jon, it could be a violent run up – TK
Comment by Dan1 — January 19, 2017 @ 3:53 pm
GGI news out – Tora Tora moving forward, two holes drilled, results in February. Thanks Steve,now about Mexico…….
Comment by Dave2 — January 20, 2017 @ 5:05 am
Fluff news from Ggi. Now we wait for the results
Comment by Matt — January 20, 2017 @ 5:08 am
Well, at least we’re getting news flow, with the guys at the show this weekend they should get the word out there, especially the e&L.
Comment by Laddy — January 20, 2017 @ 5:18 am