*** Local Mining News ***
General Moly Announces Results of an Optional Mine Planning Scenario with Improved Economics for Mt. Hope Project, Should the Molybdenum Market See Sustained Lower Prices (Press release, 2/25/2014)
Thompson Creek to suspend output at molybdenum mine as market weak (2/21/2014)
Timberline could potentially be de-listed by the NYSE but received more time to submit a plan of compliance:
Timberline Receives Extension from NYSE MKT (2/20/2014)
"...the NYSE MKT LLC (the "Exchange") has granted Timberline's request for a two week extension to submit a plan of compliance (the "Plan") to the Exchange. Based in part on the Company's progress to date on numerous alternatives, the previous deadline of February 20, 2014 has been extended to March 6, 2014."
Form 8-K Timberline Resources For: Feb 05
Barrick Reports Fourth Quarter and Full Year 2013 Results (Press Release, 2/13/2014)
Barrick Gold's CEO Discusses Q4 2013 Results - Earnings Call Transcript (Seeking Alpha, 2/13/2014)
Latest Nevada Gas Prices (click this link)
My latest Kitco commentary:
From Gold Bear to Gold Bull (Kitco News, Feb.18,2014)
My latest column in the Mining Quarterly:
Copper & Gold - The Long Ride from Lehman Brothers (p. 90-91 online, p. 84-85 printed copy, MQ Winter Edition 2013)
Paintings by Mariana Titus, The Three Anas & The Three Moon Anas, are presently at Lafitte Guest House & Gallery, New Orleans
Monday's AM prices used for this morning's early analysis:
COMEX Gold price = $1.329.6/oz (April contract most active)
COMEX Silver = $21.315/oz (March)
COMEX Copper = $3.2020/lb (March)
NYMEX WTI crude = $102.15/bbl (April)
ICE Brent crude = $108.84/bbl (April)
Eureka Miner’s Gold Value Index© (GVI) = 86.69 (gold value relative to a basket of commodities that include oil, copper and silver; 100 is a high gold value)
Value Adjusted Gold Price© (VAGP) = $1,281.5/oz
COMEX - VAGP = +48.09/oz; gold is trading at a premium to key commodities (bullish implication - "bottom is in for gold")
As of 9:51 AM:
Barrick Gold (ABX) = $20.44 down 1.23% (Last Friday AM $20.831)
Newmont Mining (NEM) = $23.18 down 1.74% ($22.90)
Midway Gold (MDW) = $1.23 up 1.65% ($1.25)
General Moly (GMO) = $1.19 down 1.65% ($1.32)
Timberline Resources (TLR) = $0.147 up 0.75% ($0.16675)
This is a very strange day in the marketplace.
First some good stuff. A U.S. GDP report of 2.4% was inline with analysts expectations for the fourth quarter of last year - that's not too bad. The S&P 500 is rewarding the data by surging to new record intraday highs, presently trading at 1,866.78 - that's not too bad either.
Now the more bizarre. The U.S. dollar fell on its face this morning relative to a bouncing euro (>1.38) as the U.S. dollar index (.DXY or "Dixie") plumbed a 2 1/2-month low. On the other hand, the U.S. dollar is showing remarkable strength against the Chinese yuan. This makes gold more expensive for Chinese buyers because the global market is priced in dollars. The yuan is not included in the Dixie so weakness there does not reflect dollar strength against the currency of the world's top consumer of gold - China. A falling Dixie generally supports higher gold prices but not today - a headwind for physical buying in Asia trumps euro strength. Got it? Very strange stuff indeed.
[Note: the closing price for the yuan renminbi was 0.162209 Friday, 2/28 - a 2% decline from its March high last year and a 1.7% drop from Feb. 1, 2014. The accelerated pace of decline this week caught gold traders' attention. A good way to remember this rate is that a U.S. dollar buys 6+ yuan renminbi or 0.16+ dollars per yuan]
Strong euro but Europe's giant neighbor Ukraine is spiraling into financial and geo-political chaos. This supports gold from a "risk aversion" standpoint but not enough to bounce above the key $1,350 per ounce level - nuts! On Wednesday, Comex gold kissed $1,345.6 per ounce but that was it. Comex gold is now trading down at $1,329.6. (I explain in the Kitco gold survey below why these levels are so important).
[Sunday night update: escalating tensions in the Ukraine pushed Comex gold (April contract) to $1,345.0 per ounce in electronic trading; presently $1,344.3 at 10:16 PM PT]
Oh...and it's the end-of-the-month so there is profit taking going on for those that bought gold earlier and are pretty satisfied with the 7-week uptrend in price.
Let's see how all this confusion pans out next week. I'm still bullish on gold price but we may be in for a pause. Stay dry and warm - the radar image in the headline photo looks more like a Gulf hurricane than a strong Pacific storm!
Kitco Gold Survey
Here is my input for the weekly Kitco Gold Survey:
Photos by Mariana Titus
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Paintings by Mariana Titus, The Three Anas, are presently at Lafitte Guest House & Gallery, New Orleans
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