Recapping the moves in US markets and copper
Investors seem to be employing the buy the dip strategy today for the US markets while also pushing copper up to $3/pound intraday. Chris Temple joins me to explain why he thinks the markets and copper are moving up.
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Wouldn’t a rising USD bring copper, base metals back down to earth with a thud?
But what would cause the US dollar to rise significantly ??
If Rickards is right about Trump making peace with N Korea gold could drop with a thud.
Funny if Dent ended up right all along.
Had not heard about peace in our time in Korea… but I imagine it would make the conventional stocks soar as well.
The UK just issued a travel ban re North Korea amid ‘significant risk to British nationals’ and we have apparently sent some aircraft and ships out to Japan – doesn’t sound like peace in our time.
Trump Will Soon End the Korean War
August 22, 2017
Trump Will Soon End the Korean War
by Jim Rickards, Daily Reckoning:
The potential for war over the Korean Peninsula is as great as ever. The news cycle we live in is a world of 24-hour updates. With what seems more like 24-minutes between when stories come and go it is easy to lose focus on the major stories.
The situation in North Korea is absolutely not going away. That’s really important for investors to recognize because this is going to come back again and again.
“Buying the dip” is a successful strategy — until it isn’t. Now that we have entered the escalatory phase in rhetoric and military preparation, markets have still not come to terms with reality.
READ MORE
Shoulda said I read it on sgtreport,
https://www.hollandandholland.com/
Send Kim one of these………
Send ME one of those!
Need a matching pair…….?……
b, I agree! DT
If gold were to drop on such news it wouldn’t be much and it wouldn’t be for long as dumb money would be doing most of the selling. In other words, if Dent’s target is going to happen, NK will have nothing to do with it.
Phoenix Rent-A-Mob Seeks ‘Paid Actors’ for Trump’s Visit Tonight
Things could get really interesting this evening in Phoenix. Just don’t forget that they are paying your fellow Americans to fight against one another! Order out of Chaos is their motto. Killuminati!
http://investmentwatchblog.com/phoenix-rent-a-mob-seeks-paid-actors-for-trumps-visit-tonight/
And these Economic Refugee Hoodlums want asylum?
Copper is showing real melt-up potential here:
http://stockcharts.com/h-sc/ui?s=%24COPPER&p=W&yr=4&mn=5&dy=0&id=p49883074596&a=523146040
Whether it melts up or not, it is very likely to go significantly higher.
WE will see what Trump says tonite…….Maybe he will throw McCain under the ship….stuff him in the hull hole
According to the DEbt Clock
we have……………………….23million govt workers
we have……………………….12million manufacturing jobs.
Former U.S. Attorney On Awan Indictment: “There Is Something Very Strange Going On Here”
“The indictment undertakes to describe in detail four counts of bank-fraud conspiracy, false statements on credit applications, and unlawful monetary transactions, yet leaves out the most damning evidence of guilt. There is something very strange going on here.”
Gold miners, the weekly charts look so good to me, and we’ve been seeing important breakouts, but the miners just yawn. Seems like good odds the daily cycle in gold has topped, so I’m starting to lean toward another down move in the miners before we might get a more gratifying move to the upside.
https://likesmoneycycletrading.wordpress.com/2017/08/21/almost-time/
What!?! I thought it was “here we go….” lol
Gold Surging to $1,400 for BofA as Long-Term Rates Stay Low
August 21, 2017 – Ranjeetha Pakiam
“Prices will also rise in dollar terms as a shift in economic cycles between the U.S. and Europe strengthens the euro, Francisco Blanch said in a phone interview on Monday. The Federal Reserve is not tightening as fast as people expected, and the European Central Bank is set to start tapering, so “some of that leads to a higher euro eventually, combined with more stagnant long-term rates in the U.S., and that’s a tailwind for gold,” he said.”
“Spot gold briefly breached $1,300 last week after failing twice this year, and traded at $1,286.67 on Tuesday. Blanch adds to voices expecting higher prices. Evgeny Ananiev, head of precious metals at VTB Capital JSC, a unit of Russia’s second-largest lender, said in an interview this month prices could hit $1,400 by year-end on North Korean tensions and buying from India and China.”
“Other catalysts that could lift gold are a reversal in U.S. stock markets that have hit records this year and continued subdued inflation in America, which may lessen the chances of further increases in interest rates by the Federal Reserve. Investors will also be eyeing an annual meeting of global central bankers in Jackson Hole, Wyoming, on Aug. 24-26 for clues on monetary policy. Fed Chair Janet Yellen and ECB President Mario Draghi are among the speakers.”
But McGlone isn’t too worried. The U.S dollar may just be the knight in shining armor silver has been waiting for.
“If the U.S. dollar, which is hovering at a two-year low, stays down, it would signal a longer-term peak supporting the opposite in commodities,” he said. “If the dollar has peaked, silver should be a primary beneficiary, if history is a guide.”
From a technical standpoint, silver seems to be in a sweet spot right now, McGlone explained.
“If the dollar doesn’t recover or continues lower, silver’s 2016 high of $21.14 should be in play. The 2017 low close from July, $15.62, is critical support,” he said.
“Silver, the metal/quasi-currency with among the highest negative betas to the U.S. dollar, appears to be marking time before playing catch-up to most other metals and the declining greenback.”
$1300 Continues as a Tough Resistance Level [Gold]
Gary Wagner – Tuesday August 22, 2017
“After trading to above $1300 (an intraday high of $1306), resulting in gold prices reaching a three-month high, a strong U.S. dollar today has caused the precious yellow metal to trade lower on the day. It seems $1300 an ounce is a tough price point for gold to trade and close above.”
“I am still of the belief that it is a matter of when, not if, when it comes to the question of whether gold prices will effectively breach the $1300 ceiling and close above it. Obviously, though, that will not occur in today’s trading session.”
“Recent activity bidding gold prices higher have been based on a couple of factors. A more dovish tone from the Federal Reserve and the European Central Bank have continued to put higher interest rates on a back burner. Both central banks continue to have an accommodative monetary policy that requires extremely low interest rates.”
“With both Janet Yellen and Mario Draghi expected to make statements at the Jackson Hole conference later this week, we could see more fireworks in store for gold prices.”
“Another factor which has been extremely supportive of safe haven assets, such as gold, is North Korea. Although recent posturing by North Korea seem to subside, as last week saw a de-escalation in threats made both in North Korea as well as by the United States….”
http://www.kitco.com/commentaries/2017-08-22/-1300-Continues-as-a-Tough-Resistance-Level.html
Charts of the Day: Warning Signs For Copper
The Hedgeless Horseman – August 23, 2017
Money Managers (semi dumb money) net long positions at 2 year highs (at least):
[Chart of Chinese Credit Creation vs Copper]
“… These are huge warning signs for investors that are long copper.
Zerohedge recently posted an article titled “Something Strange Is Going On: Axiom Stumbles On The Reason Behind Explosive Industrial Metals Surge”, which I encourage anyone interested in base metals to read.”
http://www.thehedgelesshorseman.com/chart-of-the-day/charts-day-warning-signs-copper/
Teddy Vallee @TeddyVallee 13h13 hours ago
“Rally in copper and iron ore not a sign of strength, but weakness, as bids lift prices of WMP collateral due to funding issues?”
China Minmetals to Spend Millions on Copper Smelter Upgrades
State-owned China Minmetals will invest in new smelting technology that eliminates the discharge of industrial wastewater.
Priscila Barrera • August 21, 2017
Copper rally lifts Antofagasta’s profits — up 88% in first half of 2017
Copper prices hit a fresh three-year high on the news.
Cecilia Jamasmie – about 24 hours ago
http://www.mining.com/copper-rally-lifts-antofagastas-profits-up-88-per-cent-in-first-half/
Copper price rallies after Grasberg violence
Frik Els | a day ago
http://www.mining.com/copper-price-rallies-grasberg-violence/
Chile rejects divisive $2.5 billion Dominga copper-iron ore project
Cecilia Jamasmie | 2 days ago
http://www.mining.com/chile-rejects-divisive-2-5-billion-dominga-copper-iron-project/
Copper finds new base level, volatility anticipated: Antofagasta
London (Platts)–22 Aug 2017
“The copper market “is currently exhibiting unexpected strength, but it is unclear if this can be maintained although it does appear a new base price level has been established at $2.50-2.60/lb, [$5,512-5,732/mt]” Antofagasta plc said Tuesday.
Three-months copper prices on the London Metal Exchange hit an intraday high of $6,642.50/mt in early trade Tuesday, the highest level since November 2014.
“The outlook in the mid to longer term continues to be favorable as demand is expected to grow at around 2% while supply growth remains constrained,” the UK-listed Chilean miner said in its half-year results statement.
In the shorter term, “the market is moving to a tighter demand-supply position with a small deficit expected this year and next,” Antofagasta said.”
Iron ore nears $80 a tonne
Prices for the steelmaking material up almost 50% since beginning of the year.
Cecilia Jamasmie | about 21 hours ago
Iron ore price jumps again – up 47% in two months
Frik Els | a day ago
@chatyak – “Hhorseman what makes $DV (Dolly Varden) your go to silver play?”
@HHorseman – “Chatyak
1. Location (Not many pure silver deposits in the world, let alone in NA)
2. Grade
3. CEO with buy out experience
4. Price/Resource
5. Prospectivity
6. Hecla already wanted to buy them before these new juicy hits
7. Mineralization starts near surface
“I owned Bear Creek and might take a position again thou. It’s just that $DV trumps them on many factors and a major has already shown interest.”
“Impact (IPT) is a fairly large postion for me though (one of the few producers I own). I mainly consider Impact as a highly levered beta play.”
@HHorseman – “No more $16 #Silver I’m afraid. The wheel has spoken:”
Fun With Charts: Years That End With A 7 Edition
by @Goldfinger on August 23, 2017
https://ceo.ca/@goldfinger/fun-with-charts-years-that-end-with-a-7-edition
I find it interesting we are being told of “biggest finds in history” in a couple places, novo(biggest in history) and klondex(the mother load), throw in pebble beach.
We already have massive discoverys and mines producing huge amounts, most in Russia, interesting they are not promoted.
I just find it interesting, almost like some people are trying to create interest in N.A. markets. Maybe not interesting, maybe just how things works.
I think Chris needs to wiggle his microphone connection 🙂