Four Resource Stocks to Buy Now When the Stock Market Is Down

Technical analyst Clive Maund outlines four resource stocks that he believes are at a great entry point right now.

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Mine Developer in Fiji Finds Off-the-Charts Mineralization

The company Gold Newsletter editor Brien Lundin named as a top pick in a Streetwise Report interview just released high-grade drill results.

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Gold Miner's Maiden Resource 'Provides a Strong Base' to Utah Project

Industry analysts discussed the inaugural resource estimate as well as the final 2017 drill results one of this company's Utah projects, and provided targets of up to 2.5 times the current share...

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Analyst Sees Four Times Upside on Emerging Producer with Nevada Gold Project

H.C. Wainwright & Co., whose target price on this emerging producer is a quadruple, relayed the latest developments at its Nevada project.

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Who Needs Drill Rigs When Roadwork Reveals Mineralization

Road repairs exposed significant new mineralization at surface at a copper-gold project in Argentina that one analyst has called out for having a 'blockbuster discovery hole.'

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Metals morning view: Precious metals prices are mixed, albeit on a back footing

Precious metals prices are mixed this morning with gold, silver and platinum prices buy off around 0.2%, while palladium prices are up by 0.4%. This follows a similar performance on Wednesday that saw palladium unchanged, while the rest were down between 0.1% and 0.4%.

We are not surprised by gold’s reaction to the latest Federal Reserve speak and the stronger dollar and further strength in the dollar could keep downward pressure on gold prices. Although given the possibility of equity and bond markets becoming more jittery, gold may start to attract more haven buying – so we would be on the lookout for that.

Base metals traded on the London Metal Exchange are for the most part consolidating after recent weakness, the exceptions are aluminium prices that are up by 0.7% at $2,147 per tonne and lead prices that are down by 0.5% at $2,490 per tonne. The rest are little changed, with copper prices recently quoted at $6,943 per tonne.

Volume has been average with 8,708 lots traded as of 07.12 am London time.

This follows a day of general weakness on Wednesday that saw copper, zinc and lead fall between 2.2% and 2.9%, with nickel prices off by 1.4%, while aluminium and tin were little changed.

On the Shanghai Futures Exchange, the base metals are for the most part weaker, led by a 1.3% drop in lead prices and a 0.9% fall in copper prices to 52,290 yuan ($8,261) per tonne. Tin prices are down by 0.6% and nickel and zinc prices are little changed, while aluminium prices buck the trend with a 0.6% gain. Spot copper prices in Changjiang are off by 0.7% at 51,940-52,080 yuan per tonne and the LME/Shanghai copper arbitrage ratio has edged out to 7.53, from 7.51 on Wednesday.

In other metals in China, iron ore prices are up by 0.3% at 544.50 yuan per tonne on the Dalian Commodity Exchange. On the SHFE, steel rebar prices are up by 0.5%, while gold and silver prices are off by around 0.5%.

In wider markets, spot Brent crude oil prices are firmer at $64.84 per barrel, while the yield on US 10-year treasuries has eased to 2.86%, as has the German 10-year bund yield at 0.66%.

Equity markets in Asia are mixed this morning: Nikkei (-1.56%), Hang Seng (+0.12%), CSI 300 (+0.63%), ASX 200 (-0.71%) and the Kospi is closed. This follows weakness in western markets on Wednesday, where in the United States the Dow Jones closed down by 1.5% at 25,029.20, and in Europe where the Euro Stoxx 50 closed down by 0.55% at 3,438.96.

The dollar index’s rebound has cleared the high from February 9 at 90.57, the index was recently quoted at 90.63, this shows a double bottom in place on the chart and suggests the dollar has further to rise. A more hawkish US Federal Reserve may well underpin that. The dollar’s firmness is keeping the euro (1.2207) capped, is weighing on sterling (1.3758) and the Australian dollar (0.7801), but the yen is firmer (106.80). The yuan has weakened too, moving to 6.3394 and the emerging market currencies we follow are also weaker.

It is a heavy day on the economic front – data already out shows Japan’s final manufacturing purchasing managers’ index (PMI) edge up to 54.1 from 54.0, as did China’s Caixin manufacturing PMI that came in at 51.6 from 51.5, but Japan’s consumer confidence slipped to 44.3 from 44.7. UK house prices dropped 0.3%, having previously climbed 0.8%. Data out later includes final readings on manufacturing PMI out across Europe, with additional data on Italian and EU unemployment, UK lending as well US data including personal income, spending and prices, initial jobless claims, manufacturing PMI, ISM manufacturing PMI, construction spending, natural gas storage and total vehicle sales. In addition Federal Reserve chair Jerome Powell is speaking.

Base metals prices have been under pressure; tin and nickel prices are holding up relatively well, but long liquidation seems to be weighing on the others. We should now get an update on how bullish underlying support is by seeing how far prices dip and how long it is before they rebound. With most of the metals recently capped it does look as though consumers have not felt the need to chase prices higher, but we do expect them to be keen bargain hunters.

Metal Bulletin publishes live futures reports throughout the day, covering major metals exchanges news and prices.

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Metals morning view: Gold prices dropped sharply after Fed’s hawkish comments

Precious metals prices dropped sharply yesterday on the back of hawkish talk from the new US Federal Reserve Chair Jerome Powell, with prices closing down an average of 1.3%, with spot gold prices closing at $1,318.15 per oz. This morning prices are consolidating with gold at $1,318.92 per oz, silver at $16.39 per oz, platinum at $980 per oz and palladium at $1,046.20 per oz.

We are not surprised by gold’s reaction to the latest Federal Reserve speak, we wait to see if the dollar breaks higher – if it does then we would expect that to be a headwind for gold prices, although given the possibility of equity and bond markets becoming more jittery, gold may attract more haven buying – so again we expect dips to be supported.

Base metals traded on the London Metal Exchange are mainly weaker this morning, Wednesday February 28, with prices off by an average of 0.4%.

Lead prices lead the decline with a 1% drop, followed by copper prices (-0.6%) at $6,989 per tonne. Tin, zinc and nickel prices are off between 0.2% and 0.4%, while aluminium prices are little changed.

This follows a day of general weakness on Tuesday that saw copper, nickel, zinc and lead prices drop an average of 0.8%, while aluminium and tin prices bucked the trend with gains of 0.4% and 0.8% respectively.

On the Shanghai Futures Exchange, the base metals are for the most part weaker, led by a 1.6% drop in lead prices and a 1.5% fall in copper prices to 52,520 yuan ($8,299) per tonne, with zinc prices down by 1.1% and nickel prices off by 0.5%. Aluminium and tin prices are bucking the trend with gains of 0.6% and 0.3% respectively. Spot copper prices in Changjiang are off by 1% at 52,300-52,480 yuan per tonne and the LME/Shanghai copper arbitrage ratio has edged out to 7.51, from 7.48 on Tuesday.

In other metals in China, iron ore prices are down by 0.5% at 543 yuan per tonne on the Dalian Commodity Exchange. On the SHFE, steel rebar prices are little changed, while gold and silver prices are off by around 1%.

In wider markets, spot Brent crude oil prices are weaker at $63.31 per barrel, while the yield on US 10-year treasuries is stronger at 2.9%, as is the German 10-year bund yield at 0.68%.

Equity markets in Asia are weak across the board this morning following Powell’s comments: Nikkei (-1.44%), Hang Seng (-1.54%), CSI 300 (-0.87%), ASX 200 (-0.68%) and Kospi (-1.17%). This follows weakness in western markets on Tuesday, where in the United States the Dow Jones closed down by 1.16% at 25,410.03, and in Europe where the Euro Stoxx 50 closed down by 0.15% at 3,458.03.

The dollar index’s rebound has restarted with the index recently quoted at 90.48 – yesterday’s high was 90.5, while the high from February 9 was 90.57. With a potential double bottom on the dollar index chart, a break up above 90.57 could well signal further dollar gains. The dollar strength is prompting weakness in the other currency majors: euro (1.2212), sterling (1.3887), yen (107.16) and Australian dollar (0.7801). The yuan has weakened too, moving to 6.3300 and the emerging market currencies we follow are all weaker too.

In addition to Powell’s hawkishness that took the market by surprise, Chinese purchasing managers’ index (PMI) data disappointed the market too with manufacturing PMI falling to 50.3, from 51.3, and non-manufacturing PMI dropping to 54.4, from 55.3. How much of the weakness is due to the Lunar New Year holiday remains to be seen. Japan’s housing starts fell and German GfK consumer climate eased to 10.8 from 11. Data out later includes French consumer spending, French consumer price index (CPI) and gross domestic product (GDP), German unemployment change, EU and Italian CPI, US GDP, Chicago PMI, US pending home sales and crude oil inventories.

The base metals had generally been holding up well but were not making headway, so it seems as though disappointed liquidation selling has emerged. Once again, we wait to see how well supported the dips are. We would not be surprised if the reaction to the more hawkish Powell talk is a flash in the pan – but if tomorrow’s manufacturing PMI are weaker than expected, which they are generally expected to be, then prices may end up needing to consolidate for longer. Our underlying view remains bullish, given concerted global growth and supply restraints following the past five years of reduced producer capital expenditure, but for now prices seem in no rush to break higher, so may have further to test on the downside.

Metal Bulletin publishes live futures reports throughout the day, covering major metals exchanges news and prices.

The post Metals morning view: Gold prices dropped sharply after Fed’s hawkish comments appeared first on The Bullion Desk.

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