Good afternoon
these bond markets are continuing to provide me with a headache…Is this the 27th falsealarm, or is this the trend change??? One day it has to happen - perhaps the time is now - considered massive fiscal and monetary stimlus from China to the US to Europe, it would not be that surprising. My portfolios are relatively cautiously positioned - at least for somebody, who has been a perrenial optimist for most of my 40 years in investing!
Base metals started the day on a cautious note, as China´s top banking regulator warned of excessive property markets - indicating, that the massive, Chinese stimulus might be scaled back? But looking much stronger now at early afternoon my time. Aluminium, which is generally profiting from a strong consumer sector, is up by nearly 3%.
Following on from very strong US-markets yesterday, European equities are stronger today.
Bond markets are giving up some of yesterdays big gains.
Gold is a bit of a worry for me! I cannot quite explain, why it´s so weak ( traded as low as 1707 US$ in Asia today ) at a time, where massive money printing and stimulus is running the risk of igniting inflation! Gold ETF´s have seen outflows for 14 days in a row now…. It looks horrible on the charts - even though in the evry short tun, it might have been a little oversold. It has been even weaker in A$, falling from a top of about 2870 A$/oz to the current 2224 A$. This is still a relatively nice price for most producers - but some will start to struggle now based on “true” costs of production! And very low grade projects might find it hard to be brought into production! I have recently reduced my gold exposure, but do not dare as yet to buy it back,,,
Several companies announced good exploration results today - Liontown from their highly prospective Moora project in Western Australia, Chesser from their project in Senegal ( incl 41m with 6,77 g gold/t ! ), and Marvel from their Tabakorole project in Mali ( will probably increase the resource ). The best results, though, were coming today from
Osino Resources - 8m with 12,7g within a zone of 54m with 2,6g / 12m with 5,2g within 48m with 1,86g are very significant, as they confirm the existence of high grade shoots within a large, lower grade resource. Another hole intersected 4m with 13,7g - another one of 4m with 11g. Infill drilling at Twin Hills found 89m with 1,69g / 114 m with 1,09g. All of the above augurs very well for a sizeable, maiden resource to be expected early in the 2nd Quarter. Normally, the stock would be strongly up today - let´s wait and see, what it does in the current, weak gold price enviroment! Currently, the BMO conference is on - so they might well get some recognition for the excellent results!
Have a nice evening
WS