ORENINC INDEX - Monday, June 24rd 2019
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Last week index score: 33.40 (updated)
This week: 44.47
Silverspruce Resources (TSXV:SSE) announced a non-brokered private placement to raise C$750,000.
The Oreninc Index increased in the week ending June 21st, 2019 to 44.47 from an updated 33.40 a week ago as the number of financings and dollars increased.
Gold pushed up to a six-year high as it blasted through the US$1,400/oz level mid-week on a $70/oz rise to hit a high of $1,415/oz as the US Federal Reserve indicating an easing of interest rates is coming while European Central Bank head Mario Draghi indicated that monetary stimulus could return in Europe. As a result, everything was up this week with the exception of the US dollar. Gold priced in Australian dollars hit its highest level ever at over A$2,000/oz and even copper caught a break, spurred higher by a week-long strike at Codelco’s massive Chuquicamata copper mine in Chile.
In geopolitical news, the USA was within minutes of launching a retaliatory attack on Iran after the Middle-Eastern nation shot down an unmanned US drone. The attack was called off by US president Donald Trump who said the retaliation would have resulted in a disproportionate loss of life.
Boris Johnson, who favors a hard UK exit from the European Union, has emerged as the front runner to lead the UK’s Conservative Party and therefore become the next prime minister, although a final vote will need be held for another few weeks.
On to the money: total fund raises announced increased to C$69.4 million, a six-week high, which included two brokered financings for C$8.6 million, five-week high and one bought-deal financing for C$6.6 million, a two-week low. The average offer size decreased to C$2.1 million, a two-week low, while the number of financings increased to 33.
Gold rocketed upwards to close the week at US$1,399/oz from US$1,341/oz a week ago. The yellow metal is up 9.13% so far this year. The US dollar index lost more than a point to close down at 96.22 from 97.57 last week. The Van Eck managed GDXJ added a big gain as it closed up at US$34.37 from US$31.51 a week ago. The index is now up 13.73% so far in 2019. The US Global Go Gold ETF also saw a rise as it closed up at US$13.82 from US$12.96 a week ago. It is up 21.12% so far in 2019. The HUI Arca Gold BUGS Index closed up as well at 189.99 from 173.74 last week. The SPDR GLD ETF saw a large inventory gain as it closed up at 799.03 tonnes from 764.10 tonnes from a week ago.
In other commodities, silver saw strong growth as it closed up at US$15.35/oz from US$14.88/oz a week ago. Copper also saw a strong move higher as it closed up at US$2.70/lb from US$2.63/lb a week ago. Oil saw a strong rebound as WTI closed up at US$57.43 a barrel from US$52.51 a barrel a week ago.
The Dow Jones Industrial Average saw more growth as it closed up at 26,719 from 26,089 a week ago. Canada’s S&P/TSX Composite Index also closed up at 16,525 from 16,301 the previous week. The S&P/TSX Venture Composite Index closed up as well at 592.57 from 587.84 last week.
For full update visit: https://bit.ly/2IEqftw
