Commentaries

  • After trading higher for six of the last seven trading days, gold futures closed sharply lower on the day. After trading to a low today of $1715.30, gold recovered approximately 1/3 of today’s drawdown and is currently fixed at $1726.70 (-1.45%), ending up with a loss $25.40. All of the other precious metals that trade on the futures exchange were lower on the day. Platinum declined the greatest, the precious white metal gave up $67.60, which is a decline of 7.23%, resulting in platinum futures

  • The hard truth remains, economic stimulus continues to be needed as both the Federal Reserve through their monetary policy, and the U.S. Treasury through fiscal policies has ballooned, and more stimulus will likely will be needed. Today the minutes from the April FOMC meeting were released. They indicated that Federal Reserve members discussed being more transparent in regards to their future direction of interest rates. The Fed minutes coupled with yesterday’s testimony by Chairman Powell and S

  • Both Treasury Secretary Stephen Mnuchin, and Federal Reserve Chairman Jerome Powell spoke to the Senate Banking Committee today. The primary purpose of the meeting was for the Senate Banking Committee to get the latest evaluation of the global pandemic that has greatly affected the United States economy. Both the Chairman and Treasury Secretary were asked by the committee to give their first quarterly report regarding the $2.2 trillion CARES act. In his written testimony, Treasury Department Sec

  • If not for dollar weakness today’s selloff in gold futures would have been much more severe. The dollar index is currently down approximately 0.80%, and fixed at 99.62. As of 5:08 PM EST Gold futures basis the most active June contract is currently down $22.20, and fixed at $1734.10. This dramatic selloff comes after a much firmer gold price which occurred overseas in Australia, Hong Kong and London. Once gold futures opened in New York this morning news emerged that that a biotech company calle

  • It was inevitable. The global pandemic which is now in its third month has had a devastating effect on economies worldwide. The commonality is that all major countries have experienced economic contraction. The variable between some countries is how they are experiencing much harsher economic contractions than others. Nonetheless recent data suggests that the world as a whole has seen their GDP contract by approximately 3%. This week recent data suggested there were many sectors that experienced

  •   Join The Mercenary Geologist Mickey Fulp and Trevor Hall of Mining Stock Daily every Friday afternoon for a recap of metals, money, and markets. Each episode provides commentary on performances and a look ahead to next week’s markets. You can listen to the weekly wrap exclusively at Kitco.com. We trust you will find our podcast of value and hope it becomes a part of your weekly due diligence and research. May all your trades be to the upside.

  • With the gold price breaking out of its month-long symmetrical triangle this week, silver has decided to join the gold party. As mentioned in this column last week, silver equities had been telegraphing this move for the past month and the metal finally received the message this week. Since the deflationary panic to cash ended in mid-March, the Global Silver Miners ETF (SIL) has been rapidly closing in on its highest level in three years. Both SIL and the junior silver stock ETF (SILJ) have part

  •   May is looking great for silver as the metal is outperforming its complex with more gains still in store, according to Orchid Research. Silver prices are off to a solid rally after being left out of the gold price party in Q1. Spot silver has been even outperforming spot gold this month, up 6.7% since the beginning of the month while spot gold is up only 2.5%. “We continue to favor silver over gold in the near term for at least three reasons. First, the silver price is relatively cheaper

  • In the last few weeks we have identified a simple Western technical indicator known as a pennant formation, and commonly referred to as a compression triangle. It is called a compression triangle because price ranges as well as the highs and the lows of a period of time will begin to contract. Typically, on this type of pattern you will see a series of lower highs, and simultaneously a series of higher lows. At least in theory the belief is that as the range compresses there is a buildup of ener

  •   In the last 12 years, the United States has experienced two major economic disruptions both requiring massive Federal Reserve intervention to lessen the effect of a contracting economy. The first occurrence was in response the financial meltdown of 2007 and subsequent recession which began in 2008. The second occurrence is still in progress and based upon a global pandemic which had a major impact on many industry sectors. What is unusual about these two occurrences is that even with Fed

  • If you recall from my articles from earlier this week, first on Tuesday, May 5 titled “Gold prices firm as U.S. dollar continues to climb”, we included a daily candlestick chart which included a hand-drawn compression triangle, commonly referred to as a pennant formation. We also included an arrow indicating that we were expecting a breakout to the upside. Below is that chart which was available to viewers on Tuesday. This was followed by another daily candlestick chart yesterday May 6 (see char

  • The data is clear, today’s ADP jobs report indicates that the COVID-19 pandemic has resulted in the highest unemployment rate since the Great Depression. Today’s numbers are the worst job loss in the history of the ADP report. As reported by CNBC, according to Ahu Yildirmaz, co-head of the ADP Research Institute, which compiles the report in conjunction with Moody’s Analytics said, “Job losses of this scale are unprecedented. The total number of job losses for the month of April alone was more t

  • The dollar index has been firming ever since it reached a low of 98.75, and recovered closing at 99.10 on Friday, April 1. Over the last two trading days we have seen the U.S. dollar firm. Today the dollar index gained approximately ¼ of a percent and is fixed at 99.825. At the same time since Friday gold has had three consecutive higher closes, when compared to the opening price of that day. As of 10:30 PM EDT gold futures basis the most active June contract is currently up $2.40 (+0.14%) and i

  • The coronavirus pandemic has taken us into uncharted territory. The world has not witnessed a pandemic of this magnitude since the Spanish influenza pandemic of 1918. That pandemic infected an estimated 500 million people, roughly 1/3 of the world’s population at that time and lasted for approximately two years. The death toll for the Spanish flu reached approximately 50 million individuals. So, in two years 10% of the world’s population had been killed by the Spanish flu. The technology of medi

  • While it is a little too early to say that the price correction in gold which began on the 23rd of last month is over, the first signs of a potential bottom have appeared today. Gold pricing did recover this morning, however at the same time, gold traded to the lowest intraday price of $1676 since the intraday low of $1666.50 seen on April 21st. If this low achieved today holds throughout next week, and gold pricing trades higher we will witness gold trading to a higher low than the previous low

  •   Join The Mercenary Geologist Mickey Fulp and Trevor Hall of Mining Stock Daily every Friday afternoon for a recap of metals, money, and markets. Each episode provides commentary on performances and a look ahead to next week’s markets. You can listen to the weekly wrap exclusively at Kitco.com. We trust you will find our podcast of value and hope it becomes a part of your weekly due diligence and research. May all your trades be to the upside.

  • Gold futures declined over $19 today, with the most active contract (June 2020) breaking below a key support level at $1700, and is currently fixed at $1693.90. However, even with the declines that have occurred this week gold pricing still gained 6% this month. Lower gold prices were curtailed somewhat by dollar weakness. The U.S. dollar index is currently fixed at 99.015 and is showing a net decline of – 0.63% in trading today. Dollar weakness today took the index below its 50-day moving avera

  • Gold which had been trading lower throughout the trading session overseas last night, also traded lower just prior to the release of the Federal Reserve’s statement, and Chairman Jerome Powell’s Q&A session which followed ½ hour after the release of the statement. Gold traded in negative territory to a low of $1708 this morning before beginning to trade higher. As of 4:34 PM EST gold futures, basis the most active June contract is currently trading up $7.30, and fixed at $1729.50. The Federa

  • Gold futures are currently trading at $1724.40, which is a net gain on the day of $0.60. This after the numbers for the consumer confidence index sank $118.8 in March to $86.9 in April. According to MarketWatch, “The confidence Americans have in the economy experienced the biggest plunge in April in modern times as the coronavirus ravaged Main Street and Wall Street. But they are also starting to think the worst might be over.” According to Tyler Ritchie, co-editor at Sevens Report Research, “Th

  • Equities in the United States traded higher today, this in response to the easing of restrictive lockdowns in many countries. The United States has outline plans to ease the restrictions and begin to effectively reopen in phases. Three states in the U.S. including Georgia, Oklahoma and Alaska have implemented plans to loosen their restrictions on businesses, this despite warnings from public health experts that this effort could be too early to be safe. According to the Associated Press, “Along