*** BREAKING NEWS***
Since the early morning analysis below, Comex gold has slipped further to an intraday low of $1,214.6 per ounce - it may go lower before the close...
*** Local Mining News ***
MIDWAY ADVANCES CONSTRUCTION AND MINING BEGINS AT PAN GOLD PROJECT, NEVADA (Press release, 9/15/2014)
MIDWAY GOLD FILES TECHNICAL REPORT FOR UPDATED RESOURCE AT SPRING VALLEY PROJECT, NEVADA (Press release, 9/9/2014)
Latest Nevada Gas Prices (click this link)
My latest column in Kitco News:
Oil, Copper & Gold on a Slippery Slope (Kitco News, August 25, 2014)
My latest column in the Fall 2014 Edition of the Mining Quarterly:
C.C. Goodwin, the Early Mines of Eureka (Fall 2014 Edition: online pages 76-83; printed pages 70-77)
Paintings by Mariana Titus, The Three Anas & The Three Moon Anas, are presently at Lafitte Guest House & Gallery, New Orleans
Mariana's fine art prints are featured in Fine Art America: Mariana Titus
Friday's AM prices used for this morning's early analysis:
COMEX Gold price = $1,224.6/oz (December contract most active)
COMEX Silver = $18.440/oz (Dec)
COMEX Copper = $3.0995/lb (Dec)
NYMEX WTI crude = $92.20/bbl (Nov)
ICE Brent crude = $98.23/bbl (Nov)
Eureka Miner’s Gold Value Index© (GVI) = 87.71 (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) = $1,166.6/oz
COMEX - VAGP = +58.02/oz; gold is trading at a premium to key commodities
As of 10:00 AM PDT:
Barrick Gold (ABX) = $15.66 down 2.13%
Newmont Mining (NEM) = $24.08 down 1.67%
Midway Gold (MDW) = $0.9877 down 2.21%
General Moly (GMO) = $0.8710 down 5.33%
Timberline Resources (TLR) = $0.0781 up 6.26%
The ole Colonel started the early morning analysis at $1,224 per ounce. Comex gold punched in a new intraday low of $1,214.6 as I sent that report to Kitco News. My target price at that time was $1,220 for next week. Kitco Global Editor Debbie Carlson quickly wrote me back for a sanity check noting the $10 drop. I sheepishly revised my target to $1,210 - No fun being a bear in gold country!
As summarized in my input to the Kitco News Weekly Gold Survey (full analysis below):
This has been an exciting week for markets with new FOMC projections on interest rates, Scotland’s referendum vote to stay united and this morning’s frenzy over the Alibaba IPO – the S&P 500 reacted by setting a new intraday high in morning trading.
By contrast, commodities are marching to the dull beat of broad decline. Brent crude oil, silver, copper and corn touched multi-month lows on futures exchanges this week. Not surprisingly, gold followed the pack scoring a new low in its dollarized commodity value ($1,166.6 per ounce) when compared to an aggregate of Nymex oil, Comex copper and Comex silver (see discussion below).
The primary driver this for these declines has been a stronger U.S. dollar boosted by a rise in the median projection for the federal funds rate at the end of 2015. The U.S. on a path to tighten monetary policy while other central backs provide additional accommodation propels the dollar higher. This puts pressure on dollarized commodities and makes gold more expensive to buy in other countries...
My target for next week is $1,210 per ounce.