This is an abbreviated version of Morning Musings due to travel…Gold initially rose following release of a weaker than expected U.S. jobs report this morning, but has since turned lower…as of 7:05 am Pacific, bullion is down $16 an ounce at $1,588…it has fallen as low as $1,581…Silver is 67 cents lower at $27.03…Copper is off 7 pennies at $3.42…Crude Oil has declined $2.74 a barrel to $84.48 while the U.S. Dollar Index is up one-third of a point at 83.12 on further weakness in the euro…
U.S. Jobs Report Keeps Fed In Play
The U.S. economy created just 80,000 jobs in June and the unemployment rate held steady at 8.2%, reflecting continued slow growth in the economy with the elections just four months away…the Bureau of Labor Statistics said private payrolls increased 84,000, while the government lost 4,000 jobs…economists expected job growth of about 100,000 and the unemployment rate to be unchanged, though many had increased their forecasts based on some recent indicators…with yet another month of weak employment growth, the second quarter marks the weakest three-month period in two years and may encourage the Fed to further consider additional stimulus measures…
IMF to Trim Global Growth Forecast
The International Monetary Fund will trim its forecast for global growth this year, managing director Christine Lagarde said today…without disclosing the size of the planned adjustment, Lagarde said that the IMF’s current growth forecast of 3.5%t, due to be updated in the middle of this month, would be “tilted to the downside”…however, she expressed hope that the European Central Bank’s action on deposit rates in particular – cutting the interest rate on its overnight facility to zero – could help to “stimulate interbank lending, which has not been as active as it should be”…
Euro Zone Finance Ministers Meet Monday
Euro zone officials are cautioning against expecting any quick action from the currency bloc’s finance ministers when they meet Monday to sort out the tangle of loose ends and disagreements left by last month’s European Union debt-crisis summit…banking supervision, the use of EU bailout money, aid to Spain and Cyprus and how to deal with Greece – together it could take months to finalize, despite pressure from financial markets for clarity on the details…
Today’s Markets
Markets are weak across the board today…as of 7:05 am Pacific, the Dow is off 125 points…the Venture Exchange, which rallied nearly 8% over 4 trading sessions, is off 17 points at 1209 and will be looking for support at its 10-day moving average (SMA) just under 1200…the EMA(20) continues to provide resistance as John’s chart shows below…
GoldQuest Mining (GQC, TSX-V)
GoldQuest has rallied strongly over the last four trading sessions after finding support, as expected, just below 50 cents…the stock gained 8 cents yesterday to close at 68 cents…drilling at the company’s Romero discovery in the DR resumed early last month and the market appears to be looking forward to more potential good news…below is an updated GQC chart from John that shows the stock’s challenge now is to break above the downsloping channel (flag)…as of 7:05 am Pacific, GQC is down 2 pennies at 66 cents…
Probe Mines (PRB, TSX-V) Chart Update
I think the next few weeks are going to be rough on the CDNX, I’m expecting at least a three-year low. Euro will continue to fall, USD will rise, Gold will fall. The best thing is its time to put in stink bids on our favourite plays.
Comment by Andrew — July 6, 2012 @ 7:01 am
I am cashing my GBB …. now
Comment by Theodore — July 6, 2012 @ 7:29 am
Andrew if we get a pop in rbw you will be able to take the profits and make some really good buys onstocks that are beat up
Comment by gil — July 6, 2012 @ 8:32 am
@ Andrew. Do you care to explain your remarks or are you just going to make rediculous calls with nothing logical what so ever to back it up. For one you clearly contradicted yourself with markets/gold!! I’m eagerly awaiting your amazing intellect to wow me off my feet!! You would be doing the board a great favor if you would donate some of your picks. As clearly someone of your unrivaled market savvy must be a billionaire by now.
Comment by Heath — July 6, 2012 @ 9:08 am
@theidore. Yes I see that u cashed out of gbb. A 1000 shares just went through. Apparently you have been accumulating gbb for quite some time. Take your 100$ and run pal.
Comment by Heath — July 6, 2012 @ 9:10 am
I sold some of my GBB shares only… placing my buy order again at 8 cents…. I did not buy at 9 cents… much lower… Next week, I can get it back! I have two main brokers BMO and Royal..
Comment by Theodore — July 6, 2012 @ 12:18 pm
Andrew you expect Gold to fall and USD to rise. Makes very little sense to me as the US is running a $!.6 trillion annual deficit and has a total liability including medicare of over $100 trillion. And you think this currency is a better store of value than Gold. Wake up my friend and don’t believe everything you read. Gold is the only currency that cannot be debased and is the only type of money that always holds it’s purchasing power. When this is realized we will see some true values in these much under valued exploration companies. But the $US is no way a store of value.
Comment by Patrick — July 6, 2012 @ 4:14 pm
USD rise is only temporary and gold will recover to $1650 …. @ Heath… 1000 GBB shares was not me as I did not dump …. My cash out ratio was 20% at 10.5 cents, 30% at 12 cents and 50% of my portfolio at 14 cents. Buy back at 8 cents and 10 cents…. unlikely it will stay higher than 14 cents.
Comment by Theodore — July 6, 2012 @ 4:47 pm
@theodore. Not even responding to you anymore. You have just proved yourself to be nothing more than a liar. One day you post that you dOnt own gbb,the next you do. Then you post that your gona sell. Then you post same day that you already did at 14 cents when the sp never got higher than ten cents. Then you tell us you use two different brokers to sell a few hundred dollars worth if stock. All lies and you have been exposed my friend by your own words!!! Probably truth be known you type these messages from your mothers basement and don’t have five cents invested in the market.
Comment by Heath — July 7, 2012 @ 3:55 am
@Heath… perhaps, you misunderstand me… what I meant, my sell orders are at 10.5 cents, 12 cents and 14 cents… I still have two sell orders for GBB… After I sold my lot in 10.5 cents and I put my buy lot at 8 cents … all my 8 cents buy lot, 12 cents and 14 sell lots are pending. You did not read all my posts… I bought some GBB during previous dumps…. True or false, I know … I like doing day trades … but now, I still have GBB in my portfolio.
Comment by Theodore — July 7, 2012 @ 4:10 am
Patrick – I’m just looking short term, I think the Euro will go lower and gold too. There are only a couple of safe haven currencies and the USD is not one of them. I think the CDNX is going to go lower and there will be opportunities to purchase undervalued stocks, that’s why I suggested it may be time to put in stink bids in quality junior stocks.
Comment by Andrew — July 7, 2012 @ 6:50 am
Andrew, I think that you are crrect, the $U.S. is going up only because it is safe havenliquid currency. Of course the U.S. economy is a diaster at present time but money is pouring out of europe etc. This next week or two is crutial for gold, if gold can bump up over $1600 then maybe it can go higher otherwise down it goes, maybe AS LOW AS 1400 BUT i believe that Presideny Obamaa wiill have to bring in some form of QE or he will not be re-elected. The market needs a good drill result from somebody to creat immediate interest in stocks. I think that there is a good chance that gold and silver will hum this fall.richard
Comment by richard l — July 7, 2012 @ 11:32 am
Gold will it go up or down .Positives for gold money printing.Large middle class in china and India wanting to own gold.Small percent of people own gold banks buying gold Cant print gold.Negatives for gold slowing growth in china and India . U.S.dollar considered safe haven /China pruducing more gold debter nations may sell gold to raise cash.Than again gold is very cheap and a under perfomer from 1980 till now gold was close to 1000 canadian in 1980 what was your house worth in 1980 and how much is it worth today.Iam very confused oh yes silver was 50 dollars in 1980 .Iam trying to make sence inthis market.any comments on the above
Comment by gil — July 7, 2012 @ 12:04 pm