Gold price ahead of the Thanksgiving weekend
During this period, gold is usually just before forming a short-term top and starting the biggest decline within the final quarter of the year.
Last week index score: 69.70
This week: 73.35
The Oreninc Index increased in the week ending May 26th, 2017 to 73.35 from 69.70 as gold continued to rebound. The Canadian public holiday during the week meant that the index was weighted by four trading days instead on the normal five.
Total raises announced decreased to C$94.9 million, a two-week low, which included two brokered financings for a total of C$40.0 million, a two-week low, there were no bought-deal financings this week. The average offer size decreased again to C$2.6 million, a six-week low, whilst the total number of financings announced decreased to 37, a two-week low.
Gold finished a lack-lustre week strongly to close at US$1,270 up from US$1,236 last week as the US dollar softened and oil fell after a meeting of OPEC members in Vienna resulted in a nine-month extension to production cuts aimed at reducing surplus inventory so that prices can increase. US President Donald Trump undertook his first foreign tour taking in Saudi Arabia, Israel, the Vatican and Italy, showing firmly where his priorities lie (arms sales to the Saudi’s, supporting Israel, mugging with celebrities and being a stick in the mud for those trying to make the world a better place). The bombing of a pop concert in Manchester, UK will be seen as validation of his tough stance and the countries he is aligning with.
The gold price rally wasn’t enough to help the van Eck managed GDXJ, which closed down on the week and is now up 1.17% so far in 2017. The rebalance is coming in a couple of weeks which may put some life into it. The inventory of the SPDR GLD ETF continued to fall and closed at 847.5 tonnes, down from 850.7 tonnes the previous week.
In other commodities, silver had a much better week and closed up at US$17.32 whilst copper weakened to close the week at US$2.56. Oil had an up-and-down week as a result of the OPEC meeting, hitting a mid-week high of US$51.47 per barrel before sliding to close at US$49.69.
The Dow Jones Industrial Average reversed its 200-point fall the previous week to close at 21,080. Canada’s S&P/TSX Composite Index recovered some of the lost ground of the previous week but to a lesser degree than its US counterpart as it closed up at 15,416. The S&P/TSX Venture Composite Index recovered its mid-week loses to close the week slightly up at 808.59.
Summary:
Financial news highlights
Bacanora Minerals (TSX-V:BCN) opened and closed a C$12.95 million offering on a strategic deal basis.
Skeena Resources (TSX-V:SKE) opened a C$5 million offering underwritten by a syndicate led by RBC Capital Markets on a best efforts basis.
Major Financing Openings:
Major Financing Closings:
Sonoro Energy (TSX-V:SNV) closed a C$3.6 million offering on a best efforts basis.
Source: Oreninc
