The Weekly Dig - April 21, 2017
by Mick Carew, PhD, mcarew@haywood.com, Emma Boggio, MSC, CPA and CA, and The Haywood Mining Team
Geopolitical Concerns Dominate Headlines as Gold Tests $1,300 per Ounce Level
Highlights:
Gold struggled to hold this week's gains as the dollar strengthened and concerns over global risk eased. However, after its biggest one-day drop in more than 6 weeks, it steadied on Thursday and began its late week rebound. On Friday, the price of gold climbed fairly steadily, possibly reflecting the uncertainty surrounding an event laden weekend as investors await the first-round of voting in the French election and possible announcements about tax changes in the United States, which are expected soon. Meanwhile, tensions between the U.S. and North Korea continued to increase, while remarks by President Trump suggesting South Korea was once part of China infuriated the South Korean government. These factors coincided with the price of gold almost hitting in the US$1,300 per ounce level, climbing as high as US$1,294 late Tuesday morning before finishing the week at US$1,287 per ounce. It was a mixed week for the other precious metals; silver fell 3.3% after reaching a 5-month peak on Monday morning of US$18.53, and finished the week at US$17.95 per ounce while platinum finished flat at US$972 per ounce and palladium finished down 0.21% to finish the week of at US$795 per ounce. The Down Jones Industrial Average, the S&P/TSX Composite Index, and the S&P 500 Index experienced some mid week losses before recovering and finishing the week at 20,548, 15,614, and 2,349 respectively. For junior mining stocks, the S&P/TSX Venture Index finished slightly lower for the week, closing at 825 on Friday. Meanwhile, base metals struggled this week, with copper (down 1.18%), nickel (down 4.31%), lead (down 4.54%), and zinc (down 1.52%) each finishing the week at US$2.54, US$4.22, US$0.97, and US$1.17 respectively. It was a negative week for WTI crude, which continued to fall this week (down 8.2%) to finish at $49.54 per barrel while the Broker Average Price for uranium finished the week down 2.4% at US$22.94.
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