ORENINC INDEX - Monday, October 28th 2019
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Last Week: 39.90
This week: 39.33
The Oreninc Index fell again in the week ending October 25th, 2019 to 39.33 from 39.90 although the aggregate number of dollars announced almost doubled.
The gold price staged a comeback as the week drew to a close to push its nose back over the US$1,500/oz level. The US Federal Reserve Open Market Committee is due to meet this coming week and is widely expected to continue paring back interest rates.
A relatively quiet week in the US, with the news dominated by the continuing impeachment investigation of President Donald Trump. Congress is expected to commence hearings in the near future.
In the UK, having outlined the basis of a deal for the nation to leave the European Union, PM Boris Johnson now faces the challenging task of getting it endorsed by Parliament and the European Union member states. Having been frustrated in his attempt to get the deal rushed through Parliament. he will seek a general election on December 12th. UK lawmakers have yet to agree to this. With the UK due to leave the EU at the end of October without an exit deal, the bloque appears willing to concede another three-month extension to allow Johnson’s deal to be ratified. However, interference is being run by French premier Emanuel Macron, who only wants to provide an extension until the end of November. More twists and terms to come in the coming weeks.
In Canada, Prime Minister Justin Trudeau won a second term with a minority government.
Protests in Chile against social inequality continued to paralyse the country and impact its all-important copper production throughout the week, culminating in a general protest march Friday in its capital, Santiago in which an estimated one million people participated. Similar marches were held in other cities in the country. President Sebastien Pinera commented that he has heard the voice of the people and that changes will be made.
On to the money: total fund raises announced increased to $45.6 million, a two-week high, which included four brokered financings for $8.75 million, a three-week high, and no bought-deal financings. The average offer size increased to $1.57 million, a three-week high, while the number of financings increased to 29.
Gold closed up at US$1,504/oz from $1,490/oz a week ago. The yellow metal is up 17.32% so far this year. The US dollar index continued to slide as it closed down at 97.83.28 from 98.33 last week. The VanEck managed GDXJ closed up at US$38.14 from $37.21 a week ago. The index is now up 26.21% so far in 2019. The US Global Go Gold ETF closed up at US$16.21 from $15.80 a week ago. It is up 42.07% so far in 2019. The HUI Arca Gold BUGS Index closed up at 214.05 from 208.19 last week. The SPDR GLD ETF inventory closed down at 918.48 tonnes from 924.64 tonnes a week ago.
In other commodities, silver closed up at US$18.03/oz from $17.55 a week ago. Copper also saw some growth as it closed up at US$2.67/lb from $2.63/lb a week ago. Oil had a much better week as WTI closed up at US$56.66 a barrel from $53.78 a barrel a week ago.
The Dow Jones Industrial Average fell returned to growth as it closed up at 26,958 from 26,770 a week ago. Canada’s S&P/TSX Composite Index also rose as it closed up at 16,404 from 16,377 the previous week. The S&P/TSX Venture Composite Index closed up at 546.42 from 542.43 last week.