Cathie Wood-led Ark Investment Management believes theSilvergate Capital Corp (NYSE: SI) stock will benefit from increased crypto ...
MSCI's broadest index of Asia-Pacific shares outside Japan went as high as 699.70, a level not seen since March 18. "The extremely supportive monetary and fiscal policy setting continues to provide a fertile environment for risk assets," said Rodrigo Catril, senior forex strategist at National Australia Bank. Australian shares finished unchanged from Friday's close while New Zealand's benchmark index gained 0.6% and South Korea's KOSPI added 0.1%.
The direction of the June Comex gold futures contract on Monday is likely to be determined by trader reaction to the long-term 50% level at $1788.50.
The direction of the June WTI crude oil market on Monday is likely to be determined by trader reaction to the short-term Fibonacci level at $63.47.
(Bloomberg) -- Australia is leveraging off its strength as a mining powerhouse to become the go-to destination for initial public offerings in the resources sector.The Australian Stock Exchange notched up 42 IPOs in mining-related businesses over the past 12 months despite the Covid-19 pandemic, well ahead of other hotspots including Toronto, with 28, and London with two, according to data compiled by Bloomberg.That’s a good position to be in at a time when talk of a commodities supercycle is spurring a rash of new developments, while the global economic recovery is set to drive Australia’s resources earnings to an all-time high this financial year. Rapid growth in the nation’s production of battery minerals such as lithium is seen buoying its export industry out to 2026 and beyond.“There’s no doubt that there’s a buoyant environment for resources companies,” said Eddie Rigg, chairman and head of corporate finance at Perth-based brokerage Argonaut Ltd. Explorers were now in a race to find new resources, including lithium and nickel, after a period of low investment around the middle of the last decade, he said.There were a number of factors which go into the ASX’s “secret sauce” for attracting resources capital, head of listings Max Cunningham said in an interview. These included the exchange’s single-board structure, which meant that smaller companies got better exposure to the full suite of investors. Australia’s best-in-class system for reporting exploration results also helped to underpin confidence in new projects coming to market, he added.One IPO looking to ride the supercycle is copper developer, QMines Ltd., which is scheduled to start trading on the ASX on April 21. It had already exceeded its minimum A$10 million ($7.6 million) target for the IPO to raise capital to help get its flagship Mt. Chalmers copper-gold project investment-ready over the next two years, Executive Chairman Andrew Sparke said in an interview.QMines was looking to tap into a gap in the market for copper-exposed startups, Sparke said. “There’s a scarcity factor that you don’t see in commodities such as gold,” he said.Pure copper plays account for just 1% of ASX-listed metals and mining stocks by market capitalization, according to exchange data, compared to 17% in gold. Kincora Copper Ltd., which is developing copper-gold projects in Australia and Mongolia, doubled its initial IPO raising target before listing on the ASX on March 30.Australia’s strong tradition in mining translated into a greater willingness by investors to take risks on start-up producers, the ASX’s Cunningham said, while rags-to-riches stories such as Fortescue Metals Group Ltd. offered inspiration to junior miners looking to establish themselves. The company was built up by founder Andrew Forrest over little more than a decade to become the world’s fourth-biggest iron ore exporter.Still, Argonaut’s Rigg warned that not every mining startup coming to market would be a sure-fire winner for investors. The key was for bankers and investors to do their due diligence to identify the serious contenders. “You’ve got to price these things correctly,” he said, adding that some companies often tend to hire the bankers that gave them the strongest valuation to lead manage their IPO, even if their assessment is wildly optimistic.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
MSCI's broadest index of Asia-Pacific shares outside Japan was last at 695.59, within striking distance of Friday's high of 696.48 - a level not seen since Apr. 7. "The extremely supportive monetary and fiscal policy setting continues to provide a fertile environment for risk assets," said Rodrigo Catril, senior forex strategist at National Australia Bank. Australian shares were 0.25% higher while New Zealand's benchmark index and South Korea's KOSPI added 0.4% each.
2020 has been a disastrous year for Colombia’s oil industry, but 2021 is unlikely to be much better as the country faces a quickly deteriorating security situation
Investors in Silvergate Capital Corp (SI) saw new options begin trading this week, for the June 18th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the SI options chain for the new June 18th contracts and identified one put and one call contract of particular interest.
The next major move in gold will be determined by trader reaction to the major 50% level at $1788.50.
The weather is expected to remain colder than normal
Gold futures ended higher on Friday for a second straight day, with bullion posting its sharpest weekly percentage rise of the year.
As dogecoin's gains top 9,392%, CoinDesk’s Adam B. Levine finds some surprising parallels between the top meme token and bitcoin.
U.S. president Joe Biden’s infrastructure plan is helping to boost a demand for base metals. With Goldman Sachs heralding copper as the new oil, investors can look to the Global X Copper Miners ETF (COPX). Per a Mining.com article, “Goldman Sachs sees prices average $11,000 per tonne over the next 12 months, according to the [...]
(Bloomberg) -- Gold headed for its best week since December amid a retreat in bond yields and a report that top buyer China may import more of the metal.After weeks trading in a narrow range, gold has advanced as Treasuries yields and the dollar head for weekly losses. Lower yields boost the appeal of bullion, which doesn’t offer interest. Dollar declines helped spur a broad rally in raw materials, with the Bloomberg Commodity Index also on track for its best week of 2021.Bullion is showing tentative signs of breaking out of a slump following three straight monthly losses. Prices rose above the 50-day moving average on Thursday, a positive signal for traders who follow chart patterns. On Friday, bullion extended gains to the highest since February after Reuters reported that China has given banks permission to import a large amount of bullion to meet domestic demand.The overall robust performance in commodities this week was “being supported by a surprise drop in U.S. Treasury yields accompanied by a weaker dollar,” said Ole Hansen, head of commodities research at Saxo Bank. Gold, along with crude oil and copper, “broke higher, thereby potentially signaling renewed momentum attracting fresh buying from speculators.”Spot gold rose 0.8% to $1,778.17 an ounce by 1:43 p.m. in New York. Prices are up about 2% this week, on course for the biggest gain since Dec. 18. Futures for June delivery on the Comex rose 0.8% to settle at $1,780.20 an ounce.Federal Reserve Chairman Jerome Powell’s reiteration of his dovish stance on monetary policy also helped bullion this week. That helped offset the impact of improving U.S. and Chinese economic reports, which could otherwise diminish demand for the metal as a haven.“The economic data published in the U.S. yesterday afternoon turned out for the most part to be significantly better than the market had anticipated,” Commerzbank AG analyst Daniel Briesemann said. “It seems that market participants believed the U.S. Federal Reserve’s assertion this time that it would not react to good data and would tolerate economic overheating.”In other precious metals, silver and platinum advanced.Palladium rose 1.2% after reaching the highest in more than a year. The metal, which reached a record of $2,883.89 in February last year, has benefited from stricter emissions rules that boost usage in autocatalysts.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
The direction of the market into the close on Friday will be determined by trader reaction to $63.37.
Natural gas markets have rallied a bit during the course of the week to reach towards the $2.68 region.
Natural gas has rallied into the weekend based upon colder than usual temperatures in the United States, but quite frankly this is a short-term phenomenon.
Silver markets initially tried to rally during the trading session on Friday but gave back the gains to form a bit of a shooting star.
The crude oil markets were very quiet during the trading session on Friday, as we continue to see a lot of indecision after the recent break out.
Gold markets have rallied a bit during the trading session on Friday again, as we continue to see a recovery in this market.
The long and drawn-out bear market in gold prices is finally over. With Thursday’s 2% jump in the yellow metal, prices finally vaulted above resistance and turned the daily trend higher. The optimism rippled through gold stocks, resulting in outsized gains across the board. Two movements aided gold’s turnabout. First, interest rates, which have been scorching hot, finally cooled. The 10-year yield tumbled 6.5% after breaking support for the first time this year. Lower rates decrease the opportunity cost of owning gold. Second, the U.S. dollar has been sliding for two weeks and is now testing a key support zone at the 50-day moving average. The anticipation of a support break and yet more weakness is likely adding wind to gold’s sails. InvestorPlace - Stock Market News, Stock Advice & Trading Tips 10 Stocks to Buy for Your $5K Robinhood Portfolio If you think the resurgence in gold will continue, then there are many ways to profit. Here are three of the most obvious instruments to use: SPDR Gold Trust (NYSEARCA:GLD) VanEck Vectors Gold Miners ETF (NYSEARCA:GDX) Barrick Gold (NYSE:GOLD) All three sport fresh uptrends worth buying. Let’s build out trades on each. 3 Ways to Profit in Gold Stocks: SPDR Gold Trust (GLD) Source: The thinkorswim® platform from TD Ameritrade The most obvious way to capitalize on a new gold bull market is to buy the metal directly via exchange-traded funds. And none is more popular than the SPDR Gold Trust. It’s recently been averaging more than 8 million shares a day and has great options liquidity. Thursday’s gold rush pushed GLD above its 50-day moving average and sets the stage for a run back to the 200-day near $174. Implied volatility is in the basement at the 7th percentile of its one-year range. The low reading suggests options are cheap, and long premium plays are the smarter choice. That points to either long calls or a bull call spread. I prefer the latter. The Trade: Buy the July $165/$175 bull call for $3.30. The risk is limited to your initial $330 cost and will be lost if GLD sits below $165 at expiration. The potential reward is $6.70 and will be captured if GLD can rise past $175 by expiration. VanEck Vectors Gold Miners ETF (GDX) Source: The thinkorswim® platform from TD Ameritrade For a higher beta alternative to GLD, consider GDX. It tracks a basket of gold mining companies, offering a diversified bet on stocks that have historically moved in lockstep with gold prices. At $36, GDX offers a far cheaper price tag than GLD, opening the door to other options strategies like covered calls or naked puts. Like GLD, GDX also offers fantastic liquidity. Virtually all of its listed options trade with penny-wide bid-ask spreads. From a charting perspective, GDX has a more mature reversal than gold prices. It cleared the 50-day moving average last month and built a high base pattern that just completed with Thursday’s breakout. The 20-day moving average is also now trending higher above the 50-day. Like GLD, I like using the 200-day moving average as the next upside target. It sits at $37.28. 10 Stocks to Buy for Your $5K Robinhood Portfolio Because of GDX’s chart’s somewhat choppy nature, I want to build a trade that profits from time decay and further bullish movement. Toss in the low implied volatility, and that makes a poor boy’s covered call an easy choice. The Trade: Buy the June $34 call while selling the May $37.50 call for a net debit of $2.20. The risk is limited to $2.20, and I would shoot for a profit of $1. Barrick Gold (GOLD) Source: The thinkorswim® platform from TD Ameritrade The third and final choice is to buy gold stocks directly. This offers the most potential upside because it lacks the diversification that went along with using GDX. In surveying the top holdings of GDX, Barrick Gold stands out as one of the cleaner price charts. Indeed, GOLD’s movements are mirroring GDX with a recent climb above the 50-day. Thursday’s breakout saw heavy volume confirm institutions were returning to the stock. While it may not experience a straight shot higher, the path of least resistance has undoubtedly shifted from down to up. If you want a cheap bet that carries a higher probability of profit, then consider another poor boy’s covered call. The Trade: Buy the June $20 call while selling the May $23 call for a net debit of $1.85. The max loss is $1.87, and you should be able to capture a gain of at least 90 cents if GOLD works its way above $23 over the next month. On the date of publication, Tyler Craig held a LONG position in GDX. For a free trial to the best trading community on the planet and Tyler’s current home, click here! More From InvestorPlace Why Everyone Is Investing in 5G All WRONG It doesn’t matter if you have $500 in savings or $5 million. Do this now. Top Stock Picker Reveals His Next Potential 500% Winner Stock Prodigy Who Found NIO at $2… Says Buy THIS Now The post 3 Ways to Profit in Gold Stocks as Gold Prices Surge appeared first on InvestorPlace.
Symbols mentioned in this story: XME, STLD, NEM, RS Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand..
Support is also coming from the news that the IEA and OPEC upwardly revised their global oil demand growth forecasts for 2021.
(Bloomberg) -- The first-round winner of Peru’s presidential election wants to renegotiate mining contracts rather than seize assets, said a party official, in comments that may ease concerns in the world’s second-biggest copper industry.While Free Peru’s official platform mentions taking control of natural resources, its candidate Pedro Castillo isn’t looking to nationalize mining, and welcomes private investment, the party’s legal representative Ana Maria Cordova said by telephone. Castillo, who will announce some “adjustments” to his platform, wants a bigger share of company profits to benefit Peruvians.“Not to expropriate them, not to nationalize or anything, but so that the conditions in some way also favor populations where these industries or mining operations are involved,” she said. “It is simply renegotiating conditions so that they somehow improve in favor of the population.”Castillo will face right-winger Keiko Fujimori in a June 6 runoff vote. Fujimori has warned that her rival’s plans to rewrite the constitution and take over strategic companies make him a danger to democracy. Whatever the outcome, higher investment risk will result in less copper supply over time, Jefferies analyst Christopher LaFemina wrote. That may help push up prices of the metal as demand surges amid a transition to clean energy and transport.Castillo wants to ensure certain resources better serve local populations, Cordova said, citing some of the highest gas prices in South America despite Peru being a major producer. Uncertainties surrounding the rural schoolteacher-turned-politician, who earlier this week vowed to nationalize the Camisea gas deposit, have spooked investors.Still, Peru has experienced hard-line candidates in the past who softened their views after taking office, and any radical moves would have to get through a predominantly investor-friendly congress.“I don’t see Peru going the way of Venezuela,” said Bloomberg Intelligence analyst Grant Sporre. “That said, if the country does raise royalties and taxes, that will make investment more difficult and projects in copper, for instance, are likely to slow. Peru still needs to remain competitive.”Peruvian operations owned by companies including BHP Group, Freeport-McMoRan Inc. and Southern Copper Corp. account for 11% of the world’s mined copper. Anglo American Plc is scheduled to begin production at the Quellaveco mine next year. The country is also a major producer of zinc, silver and gold.No ‘Apocalypse’Cordova said private capital “won’t be touched,” with the government simply looking for a bigger share of profit.“The government plan remains the same, what will be done are detail clarifications, and obviously based on the conversations with the other political organizations, there may be some flexibility,” she said.“In the short term, we still see a lot of resilience in the sector and a positive macroeconomic environment,” said Hector Collantes, an associate director at Fitch Ratings, who covers metals and mining. “There’s a lot of caution in the medium term to decide on growth projects that could affect the long term.”Gold Fields Ltd. Americas Executive VP Luis Rivera said on Wednesday that Peru’s constitution had proven resilient in the past. “It’s not like this is going to be an apocalypse,” he said at an industry seminar.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
The gold futures contract gained 1.76% on Thursday, as it broke above its short-term consolidation. Gold is 0.8% higher this morning, as it is extending yesterday’s advance following better-than-expected economic data announcements, stocks and cryptos rally. Today we will get Building Permits/ Housing Starts and the UoM Consumer Sentiment releases.
The Zacks Analyst Blog Highlights: BHP Group, Rio Tinto, Southern Copper and Freeport-McMoRan
Some readers may be old enough to remember President Franklin Roosevelt’s New Deal program from the 1930s. Others may relate better to President Lyndon Johnson’s Great Society push in the 1960s, notes Mike Larson, editor of Safe Money Report — and participant in MoneyShow's Metals & Mining Virtual Event on April 20-22. Register for free here.
On the gold front, I really like the prospects for Barrick Gold (GOLD), suggests Mark Skousen, a leading growth stock expert, editor of Home Run Trader — and participant in MoneyShow's Metals & Mining Virtual Event on April 20-22. Register for free here.
There are three things that have been pressuring gold: the dollar, bond yields and sentiment. Naturally, they are all interrelated. And it’s possible, very possible, that they’ve all run out of steam, notes Peter Krauth, editor of Resource Maven's Gold Resource Investor — and a participant in MoneyShow's Metals & Mining Virtual Event on April 20-22. Register for free here.
Gold prices rose to a seven-week high on Friday and were on track for their best week since mid-December as retreating U.S. Treasury yields and a softer dollar bolstered the metal's appeal. Spot gold jumped 0.9% to $1,779.00 per ounce by 10:26 a.m. EDT (1426 GMT), having earlier hit its highest since Feb. 25 at $1,783.55. "We've had many investors abandon some positions because of some extreme technical selling we saw with Treasury yields and that has really provided a strong backdrop here for gold prices to continue to appreciate."