ORENINC INDEX - Monday, September 16th, 2019

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Last Week: 42.99 (updated)

This week: 54.94

The Oreninc Index rose again in the week ending September 13th, 2019 to 54.94 from an updated 42.99 as bought deals and brokered deals returned with a vengeance.

This week saw the North American precious metals world descend on Colorado for the Precious Metals Summit in Beaver Creek. It will now transfer to Denver for the Denver Gold Forum this week.

The emerging gold bull continued to wobble as the gold price couldn’t make up its mind which side of US$1,500/oz it wants to be on.

Many observers expect the US Federal Reserve Open Market Committee meeting later this month to continue reducing interest rates. US President Donald Trump is certainly trying to pressure it to do so by tweeting interest rates should be reduced to zero or less. The European Central Bank continued to reduce rates last week when it reduced rates by 10 basis points as well as announcing its plans to buy €20 billion in bonds and other financial assets per month from November onwards.

The positive momentum this gave precious metals prices was short-lived however as Trump delayed the implementation of an additional 5% duty on US$250 billion of Chinese goods by two weeks from 1st October until 15th October. This followed an announcement by China that it would exempt 16 items from the tariffs it has imposed on US products.

Meanwhile, Iran was accused of attacking Saudi oil plants with drones via Houthi rebels in Yemen.

Elsewhere around the world, pro-democracy protests in Hong Kong continue and the UK appears to be no closer to reaching an agreement with the European Union about how it will leave the block. Prime minister Boris Johnson suspended the UK Parliament for five weeks.

On to the money: total fundraises announced increased to $61.0 million, a four-week high, which included four brokered financings for $42.8 million, a four-week high, and seven bought-deal financings for $47.3 million, also a four-week high. The average offer size more fell to $2.3 million, a two-week low, while the number of financings increased to 26.

Gold saw a bumpy week before closing down at US$1,488/oz from $1,520/oz a week ago. The yellow metal is up 16.07% so far this year. The US dollar index softened as it closed down at 98.25 from 98.91 last week. The VanEck managed GDXJ saw a sell-off as it closed down at US$36.26 from $41.05 a week ago. The index is now up 19.99% so far in 2019. The US Global Go Gold ETF closed down at US$15.62 from $17.39 a week ago. It is up 36.98% so far in 2019. The HUI Arca Gold BUGS Index closed down at 204.14 from 228.24 last week. The SPDR GLD ETF saw its inventory sell down to 874.51 tonnes from 878.31 tonnes a week ago after hitting a mid-week high of 889.75 tonnes.

In other commodities, silver pulled back almost a dollar as it closed down at US$17.44/oz from $18.38/oz a week ago. Copper saw a better week as it closed up at US$2.69/lb from $2.55/lb a week ago. Oil continued to suffer as WTI closed down at US$54.85 a barrel from $55.10 a barrel a week ago.

The Dow Jones Industrial Average continued to rebound as it closed up at 27,219 from 26,403 a week ago. Canada’s S&P/TSX Composite Index also closed up at 16,682 from 16,442 the previous week. The S&P/TSX Venture Composite Index closed down slightly at 589.16 from 589.36 last week.

For Full Update visit: http://oreninc.com/orenthink/entry/september-16-2019-index-update