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Gold Traders’ Report - April 12, 2019

Category: News Archives
Created: 13 April 2019
Hits: 998

Gold had a modest rebound last night after yesterday’s $17 thumping, rising in a tight range of $1291.20 - $1295.80.  It was helped by a pullback in the US dollar (DX from 97.18 – 96.80), which was lifted by strength in the pound ($1.3050 - $1.3119, UK Government and Labour Party resumed talks at breaking deadlock in Parliament over Brexit, May hints at customs union compromise) and the euro ($1.1251 - $1.1322, stronger Eurozone Industrial Production) that overcame some weakness in the yen (111.55 – 111.99, improving risk sentiment).  A climb in global bond yields (JGB from -0.059% to -0.0355%, US 10-year from 2.49% - 2.547%, German Bund from -0.024% to +0.045%, UK Gilt from 1.125% to 1.200%) and firmer global equities were a headwind for gold, however.  The NIKKEI rose 0.7%, the SCI was flat, European markets were up from 0.3% - 0.5%, and S&P futures were +0.5%.  A rebound in oil (WTI to $64.62) was supportive of equities as was growth in China’s credit (New Yuan Loans and Aggregate Financing exceed expectations) and exports.

Ahead of the NY open, better earnings reports from JPM Chase, Wells Fargo, and PNC along with news that Chevron was buying Anadarko Petroleum, and that Disney unveiled a new streaming service lifted S&P futures further (2908).  Though the DX continued to soften (96.77), gold came off its high and slipped to $1292. 

At 8:30 AM, a stronger than expected reading on US Import Prices (0.6% vs. exp. 0.4%) and Export Prices (0.7% vs. exp. 0.2%) were another boost to S&P futures (2912).  The US 10-year bond yield climbed to 2.553% (3-week high), and the DX had a brief slight bounce to 96.82.  Gold sank further, but found support at $1290.50. 

US stocks opened stronger (S&P +22 to 2910,...

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Gundlach Slams MMT, Sees Stocks Slumping, Fears "Violence, Riots" During 2020 Election

Category: News Archives
Created: 12 April 2019
Hits: 901

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Gundlach Slams MMT, Sees Stocks Slumping, Fears "Violence, Riots" During 2020 Election | Zero Hedge Skip to main content [1]

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Read more from our friends at Gold & Silver

"Highlight: Former FDIC Chair @sheilabair2013 on bank CEOs commenting about leveraged loans: “It is deja vu all over again. … We’re hearing the same thing… it’s exactly what we heard with subprime mortgages.” Full interview:… https://t.co/GI

Category: News Archives
Created: 12 April 2019
Hits: 896

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Yahoo Finance on Twitter: "Highlight: Former FDIC Chair @sheilabair2013 on bank CEOs commenting about leveraged loans: “It is deja vu all over again. … We’re hearing the same thing… it’s exactly what we heard with subprime mortgages.” Full interview:… https://t.co/GIOyFB6LJK" Skip to content[1]
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Mountain Province stock takes off on 74% diamond resource increase

Category: News Archives
Created: 11 April 2019
Hits: 975
Diamond Buyers Club

Shares of Mountain Province Diamonds Inc. (TSX and NASDAQ: MPVD) surged on Thursday after releasing its latest mineral resource estimates at the Faraday 2 kimberlite, located within the Kennady North Project, NWT, Canada. The stock rebounded by more than 12% at the open in Toronto, lifting the company's market capitalization to over C$256 million.

The updated inferred mineral resource at Faraday 2 highlights 5.45 million carats of diamonds, a hefty 74% increase over its 2017 estimate of 3.13 million carats. In addition, a total of 2.07 million tonnes of kimberlite was reported, a 49% increase from the previous estimate. This results in an overall grade of 2.63 carats per tonne, compared with 2.24 carats per tonne in 2017.

The company reports the attributed average value per carat at Faraday 2 has increased to $140, a 25% improvement from the 2017 value of $112 per carat. The average value is derived by applying a base case value distribution model to models of recoverable (+1 mm) diamond size frequency distribution for each geological domain.

"The Faraday 2 project is one of three known kimberlites within our wholly-owned exploration properties adjacent to the Gahcho Kué Mine," president and CEO Stuart Brown said. "As anticipated from our microdiamond results reported earlier this year, the inclusion of the northwest extension at Faraday 2 has greatly increased the value of this resource and at an average diamond value of $140 per carat offers significant potential."

The post Mountain Province stock takes off on 74% diamond resource increase appeared first on MINING.com....

Read more from our friends at Mining.com

Shadow banking is now a $52 trillion industry and posing risks

Category: News Archives
Created: 11 April 2019
Hits: 1175
CNBC logo

The agency cited particular risks from the practice of borrowing short-term and lending long-term, a practice called "maturity intermediation" that helped doom Lehman Brothers and shook Wall Street to its core. In addition, it identified issues with liquidity, leverage and credit transformation, or investing in high-risk high-return vehicles, which can include leveraged loans[1].

"The exposure of the global financial system to risk from shadow banking is growing," DBRS said. "Weaknesses in these shadow banks arising from these activities could result in runs that could instigate or exacerbate financial market stress."

To be sure, industry advocates stress that its institutions still face substantial regulation and have become better capitalized in the days since the crisis. They cite the importance of the industry in providing financing to borrowers who can't go to traditional banks.

In its analysis, DBRS noted as well that the collective investment vehicles actually help provide buffers against market stress so long as outflows are contained. Moreover, the low interest rate climate that has pervaded the world as central banks look to keep financial conditions accommodative has helped mitigate downside risks.

Still, the sheer size of shadow banking and its peers in the nonbank financial industry poses potential risks should those ideal conditions change.

Nonbank financials, which also include insurance companies, pension funds and the like, have grown 61% to $185 trillion. Traditional bank assets have increased 35% to $148 trillion during the same period.

DBRS identified three specific risks that shadow banks pose under times of market stress: That they are "not structured" to deal with periods of low liquidity and heavy withdrawals; a lack of experience in dealing with periods of weakening credit conditions, and a lack of earnings diversification that would hurt them when parts...

Read more from our friends at Gold & Silver

  1. ECB leaning toward rewarding banks who lend, skeptical on tiered rate: sources
  2. Signet publishes CSR report for 2018
  3. Quer mesmo sair do YouTube?
  4. Gold continues to climb higher toward $1310 despite USD strength

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