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: 24.70
This week: 70.51
Castle Silver Resources (TSXV: CSR) completed 22 drill holes for 2,405m from surface at its Castle silver-cobalt project in Gowganda, Ontario, Canada.
The Oreninc Index jumped in the week ending September 1st, 2017 to 70.51 from 24.70 the previous week with Osisko Mining announcing a financing in four parts.
Total fund raises announced more than doubled to C$115.1 million, a nine-week high, which included six brokered financings for C$91.0 million, a ten-week high, and four bought-deal financings for C$88.0 million, a 24-week high. The average offer size grew to C$3.7 million, an eight-week high, whilst the total number of financings announced increased to 31, a four-week high.
After testing the US$1,300 per ounce level several times this year, gold finally broke through this mark in style as the US jobs report came in lighter than expected with some 156,000 jobs added in the August Bureau of Labor Statistics report said on Friday, compares to expectations of around 180,000.
The week also saw Hurricane Harvey hit Houston,Texas and hang around for several days, unleashing a deluge estimated at some 27 trillion gallons of water that caused considerable flooding. The flooding resulted in the shutdown some 20% of US oil refining capacity and caused widespread damage that will make Harvey the hurricane that has caused most financial damage ever, expected to beat the US$160 billion of damage caused by Katrina in 2005.
Gold continued to strengthen and closed the week at US$1,325/oz up from slightly from US$1,297 last week, hitting levels last seen in October 2016, and it is now up 15.5% since the start of the year. The van Eck managed GDXJ was lifted by the gold price increase and is now up 14.9% so far in 2017 to close the week at US$36.26. The recently launched US Global Go Gold ETF also had a strong week to close at US$13.48 from US$12.65 last week. Breaking US$1,300/oz brought new interest to the gold space, which helped the inventory of the SPDR GLD ETFsee strong growth to close the week at 831 tonnes from 805 tonnes the previous week.
In other commodities, silver broke clear of the US$17/oz mark and closed at US$17.73 up from US$17.07/oz last week. The copper price continued its recent growth spurt and closed up at US$3.12/lb from US$3.05/lb the previous week. Oil receded for most of the week hitting a low of US$45.96 per barrel before recovering some lost ground at the end of the week to close down at US$47.29 per barrel from US$47.87 last week.
The stock markets also saw growth this week with the Dow Jones Industrial Average increasing to 21,987 from 21,813 last week, whilst Canada’s S&P/TSX Composite Index grew to 15,191 from 15,055 the previous week. The S&P/TSX Venture Composite Index also increased to close at 778.45 from 769.47 the previous week.
Summary:
Financial news highlights
Osisko Mining (TSX: OSK) announced a bought deal private placement of C$80 million
Major Financing Openings:
Major Financing Closings:
Company news
Castle Silver Resources (TSXV: CSR) completed 22 drill holes for 2,405m from surface at its Castle silver-cobalt project in Gowganda, Ontario, Canada.
Analysis
With assays from drilling pending, the company is building the geological picture of the cobalt potential at Castle. The soon to be initiated bulk sampling program will allow the company to produce cobalt sample products from Castle material through the company’s proprietary Re-2OX process and take another step towards evaluating the project’s potential.
