April 30, 2020
April 22, 2020
#Gold main Trend Up, but Momentum May Be Trending Lower
Tags:
GLD,
Gold,
Technical Analysis
'main trend is up according to the daily swing chart, however, momentum has been trending lower since last Thursday. A trade through $1788.80 will signal a resumption of the uptrend. A move through $1576.00 will change the main trend to down.
“The new minor range is $1788.80 to $1666.20. Its 50% level or pivot at $1727.50 is potential resistance. Watch for aggressive countertrend sellers on the first test of this level. They are going to try to form a secondary lower top.
“The short-term range is $1576.00 to $1788.80. Its retracement zone at $1682.40 to $1657.30 is potential support. This zone helped stop the selling pressure on Tuesday at $1666.20.”
see the post on MasterCharts here: #Gold main Trend Up, but Momentum Trending Lower
April 21, 2020
.@BankofAmerica just Realized “The @FederalReserve Can’t Print #Gold” Targets $3,000 Gold
Tags:
Gold
https://www.bloomberg.com/news/articles/2020-04-21/bofa-raises-gold-target-to-3-000-as-fed-can-t-print-gold
April 19, 2020
Upside-down, Right-SideUp #HeadAndShoulders: Mixed Technical Picture for #Gold
Tags:
Gold
The upside down #HeadAndShoulders Will take us where?
Are we seeing the beginning of a #HeadAndShoulders here?
Should be an interesting year ahead....
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April 17, 2020
Dislocation of #Gold Markets Continues
Tags:
comex,
GLD,
Gold,
LME,
London,
South Africa,
Switzerland,
trading,
UK
The disconnect has remained wide as some of the world's largest banks, which are also the top gold dealers, have grown wary. Even though there is now plenty of time to get metal to New York for June delivery, the wild moves of recent weeks, and the potential for coronavirus-induced logistical headaches, have increased the perceived riskiness of trading the two markets.
"I would guess that the risk managers are not allowing these big positions to be run," said John Reade, chief market strategist at the World Gold Council. "It's moved from a concern about availability and transferability of metal to one of risk appetite."
April 15, 2020
#Gold Sparkles As Interest in Gold #MiningStocks and Royalty Companies Takes Off
Tags:
GLD,
Gold,
mining stocks
Interest in Gold Mining Stocks and Gold Royalty Companies Takes Off
We're currently seeing a surge in interest in gold mining stocks and gold royalty companies, if Google search data is any indication.
Search terms using "gold mining stocks" and "gold royalty companies" were higher this month than at any other time in the past 10 years. That includes when the yellow metal hit its record high of $1,900 an ounce in 2011.
See the whole article on Forbes here: https://www.forbes.com/sites/greatspeculations/2020/04/14/gold-sparkles-as-the-great-lockdown-hammers-the-global-economy/
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April 14, 2020
#Gold trades to new yearly high of $1788.60, but closes lower on the day
long-term outlook for gold is extremely bullish, but at any point we could see a correction take place. The fact that gold futures traded to a new yearly high and then closed lower on the day indicates that there are traders pulling profits from recent gains.
Of all the precious metals traded in the futures complex (gold, silver, palladium and platinum) gold was the only one trading lower on the day.
Gold trades to its highest level of 2020, and then closes lower on the day
Although gold futures hit a new yearly high of $1788.60 in trading today, as of 4:48 PM EST gold futures are currently down by $5.40 and fixed at $1755.90. The lower pricing is occurring during a day of dollar weakness, with the U.S. dollar index currently down almost 0.49% and fixed at 98.85.
Currently there is approximately a $30 differential between spot and futures pricing. This spread was his wide as $60, however today's moderate gain in spot pricing in conjunction with gold futures fractional decline that spread has narrowed by approximately $18.
That being said gold has increased in value by almost 20% this year alone, and continues to be acting as a safe haven asset class should. Recent action by the Federal Reserve continues to weigh heavily on market sentiment as Fed cut rates to nearly zero, and reignited their monetary policy of quantitative easing.
...
According to MarketWatch, "Ryan Giannotto, director of research at GraniteShares, which offers a Gold Trust, said the "primary factor at work in the gold market" is the U.S. Federal Reserve's expanded lending and asset purchasing program announced last week."
He also said that "This latest facility on behalf of the Fed, not only allows the central bank to purchase junk bonds, but it is the largest money printing event in human history. These developments catalyzed gold's close above $1,700, and the metal is rallying further."
Another interesting aspect is that of all the precious metals traded in the futures complex (gold, silver, palladium and platinum) gold is the only precious metal to be trading lower on the day. Platinum gained over 9% in trading today, and after factoring in today's gain of $69.90 is currently fixed at $1819.40. Silver gained a respectable 3.27%, with May silver futures closing above $16 ($16.045) per ounce after factoring in today's gain of almost $0.51. Palladium gained 1.22%, a $26.40 gain, and remains the highest priced precious metal traded on the futures exchange. Palladium is currently fixed at $2197.10.
...
On a technical basis the new level of resistance is today's high at $1788.80, with support at $1739, which is the 23% Fibonacci retracement of the most recent leg of this rally…
See the whole story on Kitco here: https://www.kitco.com/commentaries/2020-04-14/Gold-trades-to-its-highest-level-of-2020-and-then-closes-lower-on-the-day.html
April 13, 2020
#Gold #ETF Holdings, AUM From the World @GoldCouncil
Q1 2020 highlights
Global gold-backed ETFs (gold ETFs) and similar products added 298 tonnes(t), or net asset growth of US$23bn, across all regions in the first quarter of 2020 – the highest quarterly amount ever in absolute US dollar terms and the largest tonnage additions since 2016. During the past year, gold ETFs added 659t, the highest on a rolling annual basis since the financial crisis, with assets under management (AUM) growing 57% over the same period.March highlights
Globally, gold ETFs added 151t – net inflows of US$8.1bn (+5%) – in March, boosting holdings to new all-time highs of 3,185t.1 Trading volumes and AUM reached record highs as gold volatility increased to levels last seen during the financial crisis, yet gold price performance was mostly flat in US dollars for the month. Gold prices denominated in many other currencies, however, continued to reach all-time highs although the price in US dollars remained 15% below its 2011 high. This highlights a continued trend of growth in gold ETFs outside of the US over the past few years; a trend underscored by European funds seeing the largest absolute inflows and Asia and other regions registering the largest percentage growth during the month.See the whole report here: https://www.gold.org/goldhub/data/global-gold-backed-etf-holdings-and-flows/2020/march
bit.ly/MasterMetals
April 9, 2020
#Gold finishes at the highest level since 2012 as it closes above $1740/oz. $GLD
#Gold finishes at the highest level in more than 7 years as it closes above $1740/oz.
#Gold looking to go into this holiday weekend with a strong push above $1700
Tags:
Charts,
GDX,
GLD,
Gold,
mining stocks,
money,
Precious Metals,
Technical Analysis
Gold Last at $1733.50/oz. up $49.20 (+2.92%)
____________________________________________________
MasterMetals
@MasterMetals
April 7, 2020
#Gold Rallies to Highest Since 2012, Spread between Spot & Futures Balloons
Tags:
Gold
Gold reached $1742/oz it's highest since 2012 on the back of deteriorating economic fundamentals and more monetary stimulus to come.
The spread between Spot & Futures Balloons to over $50.
See the whole story Gold Rallies, Spread Balloons With Pandemic's Fallout in Focus on Bloomberg here: https://www.bloomberg.com/news/articles/2020-04-07/gold-rallies-spread-balloons-as-investors-charge-into-bullion
bit.ly/MasterMetals
April 6, 2020
#Mexico #Covid19 Lockdown puts #Gold & #Silver Miners' 2020 Plans on Hold
Just as Miners were gearing up for increased production, Mexico lockdown upsets miners' 2020 plans
Editor's Note: Mining Journal is making some of its most important coverage of the COVID-19 pandemic freely available to readers. For more coverage, please see our COVID-19 hub. To subscribe to Mining Journal, click here
On March 31, the Mexican federal government mandated that all non-essential businesses temporarily suspend operations until April 30 due to help curb the spread of the COVID-19 virus.
WPM said all of its counterparties were taking steps at the corporate and operational levels to ensure business continuity, but given the fluidity of the situation, the risk that these operations would be impacted in some way had become too great to continue to rely on the February-issued production guidance.
Newmont Corporation reports that as of April 1, mining has not been deemed an essential activity under the Mexican decree, but that it is engaging with government to better understand the intended impacts of the decree on its operations. As a result, Newmont is undertaking an orderly ramp-down of operations at the Peñasquito mine. Other significant Mexico-based mines on which WPM has streaming deals include the San Dimas and Los Filos mines.
WPM said it was currently generating enough free cash and maintained comfortable debt levels to fund all outstanding commitments, including dividends, as well as providing flexibility to pursue new metal streams.
Fellow Canadian company Agnico Eagle Mines also said Thursday it was ramping down its Mexico operations, including Pinos Altos, Creston Mascota and La India, which would remain suspended until the end of this month. Agnico's Kittila mine, in Finland, is expected to continue operating at normal levels, however, it reported one positive case of COVID-19 in an underground miner which caused several days' disruption last month.
Mexico's highest-grade silver miner Excellon Resources will also suspend all mining, milling and exploration activities at its assets, including the bonanza-grade Platosa silver mine. Critical pumping, safety, security and environmental management will continue during the temporary hiatus.
Meanwhile, Endeavour Silver said it was in the process of suspending operations at all three its Mexico mines, thereby also pulling its 2020 production and cost guidance. For 2020, the company had targeted production of 3-3.5Moz silver and 38,000-44,000oz gold at an all-in sustaining cost, net of gold by-product credits, of US$17-$18/oz silver.
Equinox Gold, which just this week announced it expected to triple output to 700,000oz in 2020, said Thursday it was suspending all mining activity at the Los Filos mine. It will continue to process solution from the heap leach pads and expects output to continue at reduced levels through the temporary suspension.
The company has also temporarily suspended operations at its Pilar mine, in Brazil. Equinox's other producing mines continue to operate normally with COVID-19 safety and preventive measures in place.
It said it was too early to determine the impact on the production guidance and it would provide updates when practical.
April 5, 2020
#Covid19 makes Outlook for #Exploration and, by default, Discoveries bleak
Falling Australian Exploration Spending, Means Outlook bleak for Discoveries
Editor's Note: Mining Journal is making some of its most important coverage of the COVID-19 pandemic freely available to readers. For more coverage, please see our COVID-19 hub. To subscribe to Mining Journal, click here
Even before the coronavirus started to impact the mining sector, S&P Global Market Intelligence found that global exploration budgets were down 3% to US$9.8 billion in 2019.
"The pandemic is hitting while the industry is trying to recover," S&P principal analyst, exploration Kevin Murphy said last week.
The firm is "unfortunately" pessimistic on the outlook for exploration.
S&P's exploration price index dropped in March after being "relatively stable".
"March has changed everything," Murphy said.
Opaxe, which tracks all ASX and TSX drilling announcements, reported only 19 announcements last week and 19 again this week.
"We are at the lowest fortnightly total since 2015, apart from the annual Christmas breaks," it said.
There have been daily announcements about exploration being suspended or curtailed, either due to cost-cutting or travel restrictions.
As has been the trend in recent years, it looks like the larger companies will be doing most of the drilling in Australia for at least the next few months, but it is likely exploration budgets will be the easiest place to trim costs for FY21.
See the whole article here: https://www.mining-journal.com/covid-19/news/1384343/outlook-bleak-for-exploration-and-discovery
April 3, 2020
Last Week’s #Gold Squeeze had Investors scouring the globe to track down physical Gold
Tags:
Gold
The historic squeeze in New York that roiled the gold market last week had investors scouring the globe to track down physical gold—looking as far as Sydney for supply—as the Logistical disruptions caused by the coronavirus pandemic had led to fears there wouldn't be enough bullion in New York to meet delivery obligations for contracts traded on the Comex.
Gold Squeeze Had Traders Looking for Bars as Far Away as Sydney
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The historic squeeze in New York that roiled the gold market last week had investors looking as far as Sydney for supply.
Logistical disruptions due to the coronavirus pandemic had led to fears there wouldn't be enough bullion in New York to meet delivery obligations for contracts traded on the Comex. Investors scoured the globe to track down physical gold, with independent Australian refiner ABC Refinery reporting a surge in demand from North America for deliverable bars last week.
"We have received increased demand from North America, obviously with the recent Comex liquidity shortage," said Managing Director Phillip Cochineas. Demand also picked up from Europe due to "the lack of production from refiners who have had their operations locked down," he said.
ABC makes products including 100-ounce, 1-kilogram and 400-ounce bars, with the latter now deliverable after CME Group rushed the launch of a new futures contract to address supply issues.
While the squeeze in futures has eased -- there's enough gold in Comex warehouses to meet delivery obligations -- prices are surging on demand for a haven amid global market turmoil. Investors are pouring into exchange-traded funds, gold sales at Australia's Perth Mint jumped to the highest since 2013, while the U.S. Mint sold the most bullion coins in three years.
ABC, which has capacity to refine more than 400 tons of gold and over 750 tons of silver a year, has increased production as it's seeing strong demand in Europe and Asia, in addition to North America.
"The general demand is for gold in whatever form possible in order to fulfill the huge demand that is running across the market place at the moment," said Cochineas. The refinery has focused on making 1-ounce, 100-gram and 1-kilogram cast gold products and 1-kilogram cast silver products.
Strong demand may persist even once the virus is contained due to large amounts of government and corporate debt and low-yielding bonds, according to Cochineas.
"Equities and bonds are out and gold is in," he said. "Investors are worried about indebtedness. There's so much corporate leverage in the world that the worldwide economic impact of coronavirus is only going to amplify the pain that's going to be felt by those corporate borrowers. There will be a real deterioration of government finances in the aftermath of the virus. Gold will be a natural choice for investors both large and small."
April 2, 2020
#MiningStocks Financings in March Saw a Big Drop :: @Oreninc ::
Tags:
Gold,
mining stocks
March saw 74 deals close, which included a whopping 49 financings closed for less than $1 million, 66.23% of the total, while just 4.1% were for more than $10 million
Gold accounted for eight of the top ten largest financing's closed in Canadian capital markets in March, with oil & gas and graphite taking a spot each. The top ten deals closed aggregated $118.8 million, a 25.3% from $336.1 million closed in February, and representing 74.7% of the $159.1 million in deals closed, with three deals over $10 million.
Oreninc Blog
Top 10 Financings: March 2020
Gold accounted for eight of the top ten largest financing's closed in Canadian capital markets in March, with oil & gas and graphite taking a spot each. The top ten deals closed aggregated $118.8 million, a 25.3% from $336.1 million closed in February, and representing 74.7% of the $159.1 million in deals closed, with three deals over $10 million. Premier Gold Mines led the way with a $38 million financing followed by Harte Gold ($27 million) and Corridor Resources ($20 million).
Premier Gold Mines lead the gold rankings with $38 million raised in March, followed by Harte Gold ($27 million) and QMX Gold ($6.8 million). The top ten yellow metal financings aggregated $100.5 million, a 27.9% decrease from the $139.4 million closed in February, and accounting for 63.2% of the total closed, with two financings of more than $10 million.
Base metals deals continued to wither away with the top financings closed raising just $5.9 million in March, a 29.8% fall from the $8.4 million raised in February, representing just 3.7% of the total. FPX Nickel was the largest financing at $1.5 million, the only financing for more than $1 million.
Battery metals faired equally poorly in March with $5.5 million raised, 66.9% less than the $16.6 million raised in February, and 3.5% of the total. The biggest raise was $2.4 million by SRG Mining.
March saw 74 deals close, which included a whopping 49 financings closed for less than $1 million, 66.23% of the total, while just 4.1% were for more than $10 million.
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