Is Gold Now A Beach Ball Under Water?

With non-commercial gold shorts now at a 25-year high, Rudi Fronk and Jim Anthony, cofounders of Seabridge Gold, discuss the factors behind that, as well the potential for a reversal.

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Gold Explorer Releases High-Grade Drill Results from Flagship Project

A Canaccord Genuity report reviewed the most recent drill program results from this company's holdings on Newfoundland.

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Jack Chan's Weekly Precious Metals Market Update

Technical analyst Jack Chan charts the latest moves in the gold and silver markets.

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Blockchain Unleashed for Mining Logistics

A copper exploration company CEO is leading the effort to develop a blockchain system for supply chain management in mining and has gained the support of high-profile companies.

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METALS MORNING VIEW 30/07: Copper prices fail to rise on Escondida labor development

Three-month base metals prices on the London Metal Exchange were broadly weaker on the morning of Monday July 30, with zinc (-0.9%), copper (-0.7%), lead (-0.2%) and nickel (-0.1%) all down, while aluminium and tin prices were up by 0.4% and 0.3% respectively.

The weakness in copper – at $6,202 per tonne as at 06.15am London time – comes despite the union at Chile’s Escondida copper mine, the world’s largest, rejecting BHP’s final contract offer and agreeing to vote on whether to go on strike.

Volume has been below average with 4,495 lots traded across the complex as at 6.15am London time.

Precious metals were for the most part weaker this morning with spot gold, silver and platinum down by 0.3%, 0.4% and 0.6% respectively, while palladium prices were up 0.6%. Spot gold was recently quoted at $1,220.03 per oz.

In China, base metals prices on the Shanghai Futures Exchange were mixed, but with more of an upside bias. Lead prices led on the downside with a 2% drop, while the most-actively traded September copper contract was off by 0.2% at 49,920 yuan ($7,327) per tonne. The rest were up between 0.3% for zinc prices and 1.7% for tin prices.

Spot copper prices in Changjiang were down by 0.2% at 49,740-49,910 yuan per tonne and the LME/Shanghai copper arbitrage ratio has climbed to 8.04.

In other metals in China, the September iron ore contract on the Dalian Commodity Exchange was up by 0.4% at 487.50 yuan per tonne. On the SHFE, the October steel rebar contract was up by 1.6%, while the December gold and silver contracts were unchanged.

In wider markets, spot Brent crude oil prices were down by 0.1% at $74.25 per barrel this morning. The yield on US 10-year treasuries was easier at 2.9607%, while the German 10-year bund yield was also weaker at 0.4019%.

Asian equity markets were weaker on Monday: Nikkei (-0.68%), Hang Seng (-0.78%), CSI 300 (-0.50%), ASX200 (-0.43%) and the Kospi (-0.16%). This follows a mixed performance in western markets on Friday; in the US, the Dow Jones closed down by 0.3% at 25,451.06, while in Europe the Euro Stoxx 50 closed up by 0.51% at 3,527.18.

The dollar index at 94.66 is firmer within its recent 93.71-95.66 range. On the chart, it looks like the dollar is building the right shoulder of a large inverse head-and-shoulder formation. The other major currencies we follow are consolidating in what is going to be a heavy week for central bank decisions with the Bank of Japan, the US Federal Reserve and the Bank of England, all setting policy this week: sterling (1.3113), the euro (1.1664), the yen (111.06) and the Australian dollar (0.7397).

The yuan remains on a back footing and was recently quoted at 6.8280. The other emerging market currencies we follow are slightly firmer, which may well indicate a gradual return to risk-on.

On the economic agenda, data out already shows a 1.8% gain in Japan’s retail sales, after a previous rise of 0.6%. Data out later includes German and Spanish consumer price indices (CPI), a variety of UK lending and money supply data, as well as US data that includes pending home sales and a loan officer survey. Tuesday and Wednesday are going to be very data-heavy days, which should help provide an update on the start of the global economy.

The base metals, after having seen some improvement in recent weeks, are looking weaker again, which suggests that although some support had been found there was limited follow-through buying. The fact that copper prices are down this morning despite an increased risk of a strike at Escondida, suggests that sentiment remains weak.

As mentioned above, given all the data and central bank meetings this week, traders should get a clearer view on how the global economy is operating in the face of the trade wars. So we expect choppy trading to continue – that said, we would not be surprised to see a positive, albeit delayed, reaction to the Escondida development.

The precious metals are performing in a similar way to the base metals, the show of some strength in recent weeks has faded and prices are slipping again. For now, at these price levels, we are neither bullish, nor bearish on gold and expect the precious metals to follow the lead of the metals complex as a whole.

The post METALS MORNING VIEW 30/07: Copper prices fail to rise on Escondida labor development appeared first on The Bullion Desk.

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Copper Explorer Closes Private Placement, Hits New Zone

More funds are flowing into this company's treasury at the same time as it has intersected a new mineralized zone at its Ootsa copper project, writes Rick Mills of Ahead of the Herd.

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Gold Miner Reports Assay Results from Yellowknife Summer Program

Results confirm Yellowknife potential as district scale camp.

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Explorer Begins Drilling at Forrest Kerr Gold Project in BC's Golden Triangle

Details of the drilling program are released.

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Miner Delineates Gold Zone at 'High-Priority Target' in Nevada

A miner reports that results from the first phase of drilling on a key target delineate a near-surface, oxide gold zone.

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Miner Completes Acquisition of Nevada Mines Having 'High Upside Potential'

A CIBC report reviewed the deal and the assets.

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METALS MORNING VIEW 26/07: Metals consolidate recent gains; markets likely to get nervous ahead of key events

Three-month base metals prices on the London Metal Exchange were mixed on the morning of Thursday July 26, with lead leading on the upside with a 0.7% gain to $2,168 per tonne, while tin was the worst performer with a decline of 0.4% to $19,765 per tonne.

Copper was up by 0.2% at $6,316 per tonne – the high earlier this morning being $6,378 per tonne.

Volume has, however, been above average – some 8,746 lots had traded across the complex as at 6.55am London time.

Some progress on United States/European Union trade talks has provided some cheer in the market, but it is not all plain sailing with the trade rift between China and the US still wide open.

Precious metals were in consolidation mode on Thursday – spot gold, silver and platinum prices were all off by 0.2%, with gold at $1,229.58 per oz, while palladium prices were down by 0.4%.

This follows a firmer day on Wednesday that saw prices gain by an average of 1.3% – led by increases in the platinum group metals (PGMs).

In China, base metals prices on the Shanghai Futures Exchange were similarly mixed; zinc was the main mover, with the metal’s most-actively traded September contract down by 1.4%, while the September aluminium contract fell by 0.5%. The rest were up between 0.1% and 0.2%, with the most-actively traded September copper contract up by 0.1% at 50,060 yuan ($7,386) per tonne.

Spot copper prices in Changjiang were up by 0.2% at 49,860-49,980 yuan per tonne and the LME/Shanghai copper arbitrage ratio has eased to 7.92, from 7.94 on Wednesday.

In other metals in China, the September iron ore contract on the Dalian Commodity Exchange was down by 0.3% at 475 yuan per tonne. On the SHFE, the October steel rebar contract was down by 0.2%, the December gold was little changed and the December silver was up by 0.1%.

In wider markets, spot Brent crude oil prices were down by 0.16% at $74.27 per barrel this morning. The yield on US 10-year treasuries was firmer at 2.9653%, while the German 10-year bund yield was also stronger at 0.4170%.

Asian equity markets were for the most part weaker on Thursday: Nikkei (-0.17%), Hang Seng (-0.64%), CSI 300 (-0.91%), ASX200 (-0.04%), while the Kospi climbed 0.64%. This follows a mixed performance in western markets on Wednesday; in the US, the Dow Jones closed up by 0.68% at 25,414.10, while in Europe the Euro Stoxx 50 closed down by 0.43% at 3,468.45, as the market prepared for the US/EU trade talks.

The dollar index at 94.14 is drifting again within its recent 93.71-95.66 range. On the chart, it looks like the dollar is building the right shoulder of a large inverse head-and-shoulder formation. Sterling (1.3199) and the yen (110.65) continue their rebounds, while the euro (1.1734) and the Australian dollar (0.7437) are firmer, albeit within recent ranges.

The yuan set a low at 6.8245 on Tuesday – it started to rebound on Wednesday, but was weakening again on Thursday and was recently quoted at 6.7804. The other emerging market currencies we follow were firmer, which may well indicate a return to risk-on.

On the economic agenda, data out already shows a 1.2% gain in Japan’s services producer price index (PPI), while Germany’s GfK consumer climate reading eased to 10.6 from 10.7. Data out later includes the Spanish unemployment rate, the European Central Bank’s interest rate decision and press conference, along with US data includes initial jobless claims, durable goods orders, goods trade balance, wholesale inventories and natural gas storage. There is also data on China’s leading indicators later this afternoon.

Most of the base metals have found some support off their recent lows, but it is too early to say with confidence that the bases are in place as there are some fairly large overhead tails on recent candlesticks that suggest scale-up selling pressure.

Copper has been one of the bigger movers of late, but traders are likely to now wait for a decision from the labor union vote at the Escondida copper mine on July 28. In a number of the other metals, sideways trading within previous days’ ranges – which is most noticeable in zinc – suggests energy is building up for a directional move.

Given the extent of the sell-off since the June highs, we feel the metals have been looking oversold and the better flash purchasing managers’ index (PMI) data, combined with China’s move to support its economy in this tricky trade war environment, as well as some progress on US/EU trade talks, bodes well. Some of the key points over the next week will be the Escondida vote and China’s PMI data out on July 31.

The sell-off in gold prices has abated for now and prices are consolidating; silver is following gold’s lead, while the PGMs’ rebounds look stronger. For now we are neither bullish, nor bearish on gold and expect the precious metals to follow the lead of the metals complex as a whole.

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