Gold has traded between $1,254 and $1,272 so far today…as of 10:30 am Pacific, the yellow metal has shed most of its gains since last night and is now up just $3 an ounce at $1,255…resistance in the $1,260’s around the 200-day moving average (SMA) continues…Silver has retreated 29 cents to $17.95…Copper is up a penny at $2.64…Nickel has climbed 6 cents to $4.61…Crude Oil is 47 cents higher at $52.17 a barrel while the U.S. Dollar Index has rallied half a point to 101.17 which helps explain the pullback in precious metals…
Geopolitical risks are back on the radar following last night’s U.S. cruise missile strike against a Syrian air base in response to a chemical weapons attack on civilians carried out by the Assad regime earlier this week…the Kremlin said in a statement today that the airstrike was an “aggression against a sovereign state in violation of international law” and that President Putin believes the U.S. authorized the strikes under a “far-fetched pretext”. Kremlin spokesman Dmitry Peskov stated, “Washington’s move deals a significant blow to the Russia-U.S. relations, which are already in a deplorable shape.” Iran, Syria’s other ally, also condemned the attack as Middle East tensions intensify…President Trump and Putin could be a collision course – the coming days and weeks will prove interesting, indeed…
Intra-day moves are one thing, closing prices are another!…back-to-back closes above Gold’s 200-day, currently $1,261, are required to open a technical move toward $1,300 with new support between $1,250 and $1,260…while Gold bugs may find today’s action disappointing given the swift retreat from the $1,272 high – especially after U.S. military action and a weak jobs report – there are far too many technical and fundamental indicators that support the contention that Gold is going to experience a powerful breakout…patience, as always, is key…
Strong Gold ETF buying will be essential in driving the yellow metal higher – that’s a trend to watch closely…Gold demand in Asia has remained soft this week, with premiums in China notching a slight uptick and those in India remaining unchanged, as higher prices kept physical buyers at bay…
Oil Update
WTI prices climbed to nearly $53 a barrel in the wake of the attack on Syria before easing off from 1-month highs…although Syria has limited Oil production, its location and alliances with big Oil producers in the region mean any escalation of the conflict has the potential to increase supply-side fears…
Meanwhile, Crude prices are getting an additional lift thanks to Canada…2 Oil sands producers in northern Alberta have cut production due to a recent fire at the 350,000 barrel-per-day Syncrude plant…
Just out – U.S. Oil rigs rose for the week ended April 7 by 10, to 672 rigs, according to data from Baker Hughes…
Crude Oil 15-Month Weekly Chart
All the panic among the nervous nellies over Crude Oil’s recent drop into the mid-$40’s was much ado about nothing…
You’ll see on this 15-month weekly chart how WTI touched its uptrend support line last month around $47 which is also very close to an important Fib. level…the uptrend line has been successfully tested a few times now…
Crude last year formed a bullish inverted head-and-shoulders bottom…note the higher lows – $35.24, $39.19, $42.20 and $47.01…
It’s our view that stronger than expected demand and a further build-up of tensions in the Middle East will ultimately drive prices to $70 a barrel this year in a major breakout above the “neckline”…
Buy pressure is accelerating while RSI(14) is gaining momentum after forming a bullish “W”…
Industry Legend And Gold-Silver Bull Steps Down
Sprott Inc. (SII, TSX) announced this morning that Eric Sprott is stepping down as chairman of the board of directors of the company, effective May 10, 2017, when SII holds its annual general meeting, and will not stand for re-election as a director…Jack Lee will be appointed new chairman while Sprott will continue to hold the title of chairman emeritus. “After more than 40 years in the investment industry, I have decided to step down from the board in order to focus on my personal investments and my family,” said Sprott. “With many years of experience in the natural resource industry and a long tenure on the Sprott board, Jack is the natural choice to take over as chairman and I wish him all the best.”
In Today’s Morning Musings….
1. Venture continues to “tease” but there are growing reasons to expect a near-term confirmed breakout…
2. Garibaldi Resources‘ (GGI, TSX-V) Nickel Mountain (E&L) has some special company…
3. A speculative 6-cent junior with potential as it breaks out above a long-term downtrend line…
4. Daniel’s Den – “Friday Footnotes“, a review of multiple plays…
Click here to receive, via email, BMR’s top picks in the northern Ontario Cobalt Camp…
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No we shouldn’t be discouraged on the fizzle on gold, not counting all the other contributing costs, but at 1.4 million a shot , do the math folks. That’s just one night.just the beginning??
Comment by Laddy — April 7, 2017 @ 11:32 am
MTS. over 200K this AM biggest trade vol day in a year possibly.
Comment by david — April 7, 2017 @ 11:35 am
Mitek’s moving! 10% rally today. Put it in the cookbook.
Comment by Daniel — April 7, 2017 @ 12:24 pm
its moving all right, wrong direction.
Comment by dave — April 7, 2017 @ 1:19 pm
MTS . aww its ok, it got volume for a change. buyers are sopping up the shrs and MTS sits within eyeball distance of the E+L and its feeder as a bonus to the 2 targets they already have. we all know that its primed like GGI to be something. PP is at 18 cents NFT and is more than 1/2 way filled I think. Drill permits in had as well.
Comment by david — April 7, 2017 @ 7:26 pm
Jon: whats the latest price of Cobalt? Thought these things would be rocking by now? CUZ looks like it finally rebounded off a bottom on Friday? CPO is holding firm in 12-14 range. CSR tight in mid 20’s. Any thoughts after your trip or is that still coming up to Ontario Cobalt?
Comment by STEVEN1 — April 8, 2017 @ 10:28 am
(A promo piece for NAN pre-drilling http://aheadoftheherd.com/Newsletter/2012/A-Case-Study-For-A-Greenfield-Investment.htm)
Pre-drilling (2014), NAN.V had high tenor range, gravity anomalies, evidence of a large scale mafic igneous event, intrusions that appeared to be a part of a dynamic magma conduit system. They had the same signs that GGI has, yet, upon drilling, they ended up tanking due to underwhelming results. What makes the GGI story different? What do we have that NAN didn’t have? Thanks!
Comment by johnz — April 9, 2017 @ 8:19 am
Johnz, NAN had and still has a big project in an interesting greenfield district that may eventually prove to host a major Nickel sulphide deposit or series of deposits. Time will tell. A lot of ground to cover there, which partly makes the job so challenging.
You ask, what does GGI have that NAN didn’t (doesn’t have)? The most important answer to that, quite simply, is the district setting – it has the right address – which allows for a greater probability that something big exists at Nickel Mountain (E&L). It’s in a proven district, and that makes all the difference—-increases the odds when a wide range of specific data for a property are pointing in a very positive direction.
The E&L, also a known deposit, is in the heart of a mining Camp that through exceptional geological forces has produced:
1) Eskay Creek, one of the world’s richest ever ore discoveries and mines (VMS, Gold-Silver)
2) Brucejack, one of the richest Gold deposits in the world (nearing commercial production)
3) KSM, the world’s largest accumulation of Gold-Copper reserves
4) Snip, a very high-grade past producing mine that’s now known to host new Gold zones
The above is of extreme significance to the situation at the E&L where you have a minimum 4 km long, 1.5-km wide intrusion just 10 or so miles southwest of Eskay Creek and exactly in between the Snip to the NW and Brucejack to the southeast.
We’ll be explaining this better in layman’s terms as soon as we can through a video from one of our geological consultants who will speak about the importance of numerous factors, including the Eskay Rift and multiple episodes of compression and extension that have contributed to what we see in this district. There is a powerful argument forming around the idea of a major high-grade Nickel-Copper sulphide system very much in the heart of this Camp at the E&L, with high-grade Gold and Cu-Au porphyry deposits/mines around the perimeter. Keep in mind, historical explorers at the E&L, even though they found what they did, had extremely limited district knowledge at the time, plus much has also been learned since then about Nickel sulphide deposits. Dr. Goldie touched on this in a broad sense in one of our interview segments a while back when he drew comparisons with Kambalda in Western Australia.
There will be many more discoveries in this district, Johnz – it is truly one of the most mineralized parts of the entire planet and the geology is such that world class deposits have formed here, yet much of it remains vastly under-explored. As the saying goes, the best place to look for a new mine is immediately around existing and past producing ones. NAN doesn’t have that advantage, making their exploration much more challenging.
Comment by Jon - BMR — April 9, 2017 @ 10:09 am
This week in money, march 25 interview Jim Pettit ceo of ABN, he read in metals and mining an snl report that BC has the largest in the ground wealth in the world, three to four times the size of Ontario.would be may- june till get on golden triangle or yukon project. should have IP survey done in four weeks follow by drilling for the chico project in saskatchewan.
Comment by kelly — April 9, 2017 @ 11:46 am