Keep A Proper Perspective About This Recent Move

October 14, 2018 There has been quite a bit of information and opinion in the news recently regarding the recent downside price action in the US Equities markets.  We’ve seen everything from “The sky is falling” to “The markets will rally into the end of the year”.  If you’ve been following our research and analysis, you already know what we believe will be the likely outcome and if not – keep reading. There are a number of key components of the global economy that are of interest currently; US Treasuries, Precious Metals, Emerging Markets, the European Union, Trade Issues and Capital Shifts. When one considers the scope of the entire global market environment in terms of these individual issues, a fairly clear picture of what is really happening begins to take shape.  Here is our summarized opinion of the current state of the global markets. Capital is shifting (again) as … Continue reading

Chile environmental court orders Barrick to close Pascua-Lama gold mine

By Reuters

SANTIAGO, Oct 12 (Reuters) – Chile’s environmental court on Friday ordered Canada’s Barrick Gold Corp to definitively close the Chilean side of its stalled Pascua-Lama mining project, a final procedural step that draws a line under a long-running saga.

The court, sitting in the northern Chilean city of Antofagasta, approved by two votes to one the closure of the polemical project that straddles the Andes Mountains between Chile and Argentina.

The gold and silver operation was put on hold in 2013 due to environmental issues, political opposition, labor unrest and development costs that ballooned to $8.5 billion.

Barrick was told to close the mine by Chile’s environmental regulator in January this year and fined $11.5 million. Friday’s court ruling rubber-stamps that order.

Barrick, the world’s largest gold miner, did not immediately respond to a request for comment.

(Reporting by Antonio de la Jara; Writing by Aislinn Laing; Editing by Rosalba O’Brien)

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From:: Mining.com

Asia Gold-High prices deter buyers ahead of India festival season

By Reuters

MUMBAI/BENGALURU, Oct 12 (Reuters) – Physical gold demand in India was subdued this week as a rally in domestic prices curbed retail purchases going into a key festival season, while buying remained lacklustre in other major Asian hubs.

In the Indian market, gold futures this week touched their highest since July 2016 at 32,014 rupees per 10 grams.

“Usually retail buying rises during Navratri (Dussehra) but the price rise is dampening demand,” said Chanda Venkatesh, managing director of CapsGold, a bullion merchant based in the southern city of Hyderabad.

Dealers in India offered a discount of up to $6 an ounce over official domestic prices this week, down from last week’s $6.50, which was the highest since mid-June. The domestic price includes a 10 percent import tax.

“Jewellers want to make purchase for Diwali but they are waiting for a price correction,” said one Mumbai dealer with a private bullion-importing bank.

Demand usually strengthens toward the end of the year as the traditional wedding season kicks in and as the country celebrates major festivals including Diwali and Dussehra, when buying gold is considered auspicious.

India’s gold imports in September dropped more than 14 percent from a year earlier as demand was dented by a rally in local prices because of a depreciating rupee, according to provisional data from precious metals consultant GFMS.

Neighbouring Bangladesh, which approved its first gold trade policy last week, should register a boost in exports of ornaments because the policy proposes several incentives for increasing jewellery exports, including tax benefits, said Cabinet Secretary Shafiul Alam.

Meanwhile, global benchmark spot gold prices were on track to register their best week in seven as tumbling global stock markets sent investors rushing to the safe-haven asset.

In China, markets opened after the Golden Week festival and premiums ranged between $4.50 and $8 an ounce, versus $6.50-$8 in the week ending Sept. 28.

Premiums in Hong Kong rose to $1-$1.50 from between 70 cents and $1.30 last week.

“This week there was some fresh buying interest around the $1,185-$1,190 level. But with prices now up $30 dollars, the physical market may be quiet for a while,” said Peter Fung, head of dealing at Wing Fung Precious Metals in Hong Kong.

In Singapore, there was limited safe-haven buying, said Ronan Manly, precious metals analyst at Singapore-based dealer BullionStar.

Premiums of 80 cents to $1.20 were charged in Singapore, little changed from between 80 cents and $1.30 previously.

“We will see buying during the upcoming Diwali festival, as there is an Indian community in Singapore,” said Brian Lan, managing director at Singapore dealer GoldSilver Central.

In Japan, prices were on a par with the global benchmark, a Tokyo-based trader said.

(Reporting by Sumita Layek and Vijaykumar Vedala, Ruma Paul and Rajendra Jadhav; Editing by Arpan Varghese and David Goodman)

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From:: Mining.com

Gold Makes Bullish Breakout as Investors Fear Higher Interest Rates $GDXJ

By Jeb

Its been a great week for the beaten up gold investors as capital sought safety as a market panic started. In reality, the stock market was way overbought and needed at least a shakeout which it has done pulling back to the rising 200 DMA. For months I have been early seeing declining momentum and insider selling in the Large Caps. Despite that the share price of large cap equities continued into nosebleed territory. I was taught years ago that the smart investors sell into rising markets and buy into declining markets. That’s how the intelligent investors get in early. You can witness this phenomenon possibly through the divergence between momentum and price as we see in chart below. The trend is a friend until its broken on huge volume. During this week’s market selloff gold remained the true safe haven not crypto as was promoted by the young 20 year old know nothings.

If that moving average does not hold then the 7 year bull market in the S&P 500 could be ending. This fear has helped the beaten down Junior Gold Mines ETF (GDXJ) make a reverse head and shoulders breakout crossing above the 50 DMA and closing above 3 month downtrend. Since the selloff in mid August Momentum has been increasing which usually happens before a classical technical breakout. Smart money buys when prices are declining and before a turning point you can see momentum increasing. When you take inflation into account gold is the cheapest its ever been.

What is causing all this ruckus in the markets? All eyes are on US interest rates which have been dangerously rising to levels not seen since before the 2008 credit crisis. The Chinese may be already selling bonds to fight against Trump Trade Wars. Rising interest rates are already hitting transportation stocks especially auto makers. Soon I expect housing and real estate to get hit and then possibly the banks. Avoid margin debt and adjustable rate loans in this financial environment.

During this brutal bear market in gold and silver as investors chased fake and ridiculous fads, I have maintained my faith in positioning in high quality and well managed junior miners with the ability to survive. Don’t let these manipulated and crazy markets shake you out especially when the fundamentals for gold have never been better. There is about to possibly start a massive short covering in gold if we can possibly hit $1250. This recent summer capitulation combined with record short position on gold could cause a dramatic move once the tides start reversing which may have started this week.

Any more panics or black swan events could cause a possible $100 move in gold. Recently the emerging markets especially in South America, Asia and Mid East are struggling with crashing currencies. JP Morgan CEO Dimon says rising interest rates, declining emerging markets and geopolitical flareups could possible derail the economy.

For months I warned about rising rates and possible margin calls from investors overextended. The USA has a major student loan crisis that could be even bigger that the housing bust.

How am I focusing my holdings? I’m looking for new gold and silver discoveries that could gain recognition from major investors. Exploration has been ignored for years and that is where I see greatest opportunity.

1)I’m interested in the Pilbara Gold Rush in Australia and have been following Pacton Gold $PAC.V $PACXF which is still relatively unknown but could be on a fast track to a discovery. They released news this week which you should read by clicking here… Exploration is underway on two properties. They just acquired more land around Novo $NVO.V and with just a $34 million market cap they have become one of the largest land holders in the Pilbara.

2)Check out $tml.to $tsrmf which I bought some this week which is possibly the most undervalued gold developer in Canada right in Ontario between Goldcorp’s Red Lake and New Gold’s Rainy River. Cash costs could be the lowest of advanced Canadian Developers! Could move higher as gold price improves. Takeout target?

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For informational purposes only. This is not investment advice. May contain forward looking statements.

Disclosure: Author (Jeb Handwerger) owns shares and I want to sell them for a profit. Sponsors are website advertisers so that means I have been compensated and have a conflict of interest to help boost awareness of this story. The content of this article is for information only. Readers fully understand and agree that nothing contained herein, written by Jeb Handwerger about any company, including but not limited to, commentary, opinions, views, assumptions, reported facts, calculations, etc. is to be considered implicit or explicit investment advice. Nothing contained herein is a recommendation or solicitation to buy or sell any security. Author is not responsible under any circumstances for investment actions taken by the reader. Author has never been, and is not currently, a registered or licensed financial advisor or broker/dealer, investment advisor, stockbroker, trader, money manager, compliance or legal officer, and does not perform market making activities. Author is not directly employed by any company, group, organization, party or person. The shares of these companies are highly speculative, not suitable for all investors. Readers understand and agree that investments in small cap stocks can result in a 100% loss of invested funds. It is assumed and agreed upon by readers that they will consult with their own licensed / registered financial advisors before making investment decisions. Readers …read more

From:: GoldStockTrades.com

Gold Fields CEO asks for `more time’ as investors get antsy

By Bloomberg News

(Bloomberg) — Gold Fields Ltd. shareholders getting impatient over the company’s failure to stem losses at the huge South Deep deposit in South Africa shouldn’t lose hope, said Chief Executive Officer Nick Holland.

Gold Fields said in August it’s embarking on yet another turnaround plan at the operation, its only one left in South Africa. South Deep’s disappointing performance has been a drag on the company for years and management is aware that investors are getting fed up, Holland said in an interview.

“They are now very impatient, and one can understand it but I think we need to calmly look where we are and evaluate the best way forward,” he said. “There is a large resource base there, it’s well-drilled and we have spent a lot on infrastructure development costs. We are not far away, we just need more time.”“We are not far away, we just need more time.”

South Deep is the world’s second-largest known body of gold-bearing ore but output targets have been repeatedly missed. The company has sunk more than 9 billion rand ($620 million) into the mine in addition to the 22 billion rand it paid to buy the asset in 2006.

The next milestone will be the announcement of a new plan in February and the company will probably need about 18 months after that to assess whether it’s working, Holland said.

To be sure, South Deep’s challenges aren’t unique in South Africa and other gold producers aren’t making money either thanks to persistently high costs, Holland said.

The country’s deep, aging mines and labor intensive mining methods keep pressure on expenses and South African gold production fell for a 10th consecutive month in July. The decline is being compounded by a shortage of investment in exploration, Holland said.

(By Felix Njini)

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From:: Mining.com

Resource Big News Roundup: Avrupa Minerals Retains 100% of Alvito Project; First Cobalt Assessing Restart of Canadian Refinery; IDM Mining Granted Provincial Environmental Assessment Certificate for the Red Mountain Gold Project

By Danielle Adams

gold outlook free report

This week, the S&P/TSX Composite index (INDEXTSI:OSPTX) continued its trend from last week and steadily dropped. On Friday, the index rose due to gains in healthcare. The S&P/TSX Venture Composite Index (INDEXTSI:JX), meanwhile, continued its trend from last week and steadily dropped, but recovered slightly towards the end of the week.

In case you missed it, here is this week’s resource big news roundup:

Base:

Critical:

Diamond:

Energy:

Precious:

To see our previous Resource Investing Big News Roundups, please click here.


Is it a good time to buy gold stocks?

Learn to profit from gold’s low price this year!

Give me my free report!

The post Resource Big News Roundup: Avrupa Minerals Retains 100% of Alvito Project; First Cobalt Assessing Restart of Canadian Refinery; IDM Mining Granted Provincial Environmental Assessment Certificate for the Red Mountain Gold Project appeared first on Investing News Network.

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From:: Investing News Network

Gold revitalized as equity sell-off spurs second weekly advance

By Bloomberg News

(Bloomberg) — Gold may have finally snapped out of its inertia.

Prices largely held the biggest gain since June 2016, when the U.K. voted to exit the European Union, after a slump in global equity markets stoked demand for the metal as a store of value. Bullion received another shot in the arm during Thursday’s surge after data showing weaker-than-expected U.S. inflation raised speculation that the Federal Reserve may slow the pace of interest rate increases.

Gold, which hit a 10-week-high of $1,226.42 an ounce on Thursday, had held near $1,200 since late August as traders weighed geopolitical risks that could boost the metal’s allure as a haven against rising interest rates that curb its appeal. On Friday, prices dropped but gold still poised for a second weekly advance. Most Asian and European stocks recovered after the biggest sell-off in global equities since February, as U.S. stock futures extended gains and Treasury yields ticked higher.

“Gold bulls were unstoppable on Thursday as global risk aversion sent investors sprinting to safe-haven assets,” said Lukman Otunuga, research analyst at brokerage FXTM. “Although gold prices are noticeably weaker this morning, bulls remain in the driving seat above the $1,213 level. While the technical outlook points to further upside, fundamentals are still in the bear’s favor.”

A gauge of gold-mining equities tracked by Bloomberg Intelligence also had the biggest increase since 2016 on Thursday. On Friday, Randgold Resources Ltd. gained 4 percent, Newcrest Mining Ltd., Australia’s largest producer, rose 3.3 percent and Zijin Mining Group Co. climbed 5.5 percent in Hong Kong.

Other precious metals Silver +0.2% Platinum steady, set for 4th weekly advance in last 5 weeks Palladium +0.9% to $1,089/oz, near highest since January, when record set

(By Ranjeetha Pakiam and Rupert Rowling)

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From:: Mining.com

US Transportation Index Suggests Bottom May Be Forming

October 11, 2018 Chris Vermeulen Our research team, at www.TheTechnicalTraders.com, is alerting our members that the Transportation Index has reached its first level of support near 10,500 and this level may be the start of an extended bottoming formation.  If you have been following our research posts, you already know that we predicted this recent downside price swing over 3 weeks ago with our Adaptive Learning Predictive Modeling systems.  You will also understand that our modeling systems suggest this move may not end till early November (somewhere between November 8~12).  Keeping this in mind, we are now alerting you to be prepared for the following. This Weekly US Transportation Index chart highlights what we believe will become support for the US stock markets.  The 10,500 level, highlighted by the GREEN horizontal line, is a key support level that goes all the way back to late 2017 and early 2018.  This level will … Continue reading

Commodities and the Dollar

October 10, 2018 A unique setup has occurred in the UUP (Invesco DB US Dollar Index) that resembles an Engulfing Bearish type of pattern (even though it is not technically an Engulfing Bearish pattern).  Technically, an Engulfing Bearish pattern should consist of a green candle followed by a larger red candle whereas the red candle’s body (the open to close range) completely engulfs the previous candle’s body.  In the instance we are highlighting in this article, a unique variation of what we’ll call a “Completely Filled Engulfing Bearish” pattern is setting up. This is when two red candles setup in an Engulfing Bearish type of formation – omitting the requirement that the first candle be green.  Japanese Candlesticks help us to identify the psychology of the market price in relation to our other specialized tools.  We believe this formation is important because both of the red candlesticks that make up … Continue reading