ORENINC INDEX – Monday, August 26th 2019
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Last Week: 57.04 (updated)
This week: 32.02
The Oreninc Index more fell in the week ending August 23rd, 2019 to 32.02 from an updated 57.04 as the number of deals fell, although the average offer size increased. This followed an updated index score of 50.69 the week ending 2 August when Oreninc was offline for technical reasons during which time gold broke through US$1,500/oz!
Gold investors’ were focused on the Central Bank symposium in Jackson Hole, Wyoming and any indications US Federal Reserve chairman Jerome Powell might give on its future rate setting policy. Gold sold off early in the week presaging dovish comments but the yellow metal rebounded after Powell said the US central bank will act as appropriate to sustain the US economic expansion and that the outlook for the economy continues to be favourable. In effect, Powell gave little indication one way or the other about future interest rate action.
China gave gold a boost as news came out that the Asian nation plans to impose US$75 billion in retaliatory tariffs on US goods including soybeans, cars and oil. Some tariffs will be implemented on September 1st with the remainder on December 15th.
On to the money: total fund raises fell to C$59.3 million, a five-week low, which included three brokered financings for $15.9 million, a two-week low and three bought-deal financings for $15.9 million, also a two-week low. The average offer size increased to $3.7 million, a six-week high, while the number of financings decreased to 16.
Gold saw another strong week as it closed up at US$1,5267oz from $1,513/oz a week ago. The yellow metal is up 19.06% so far this year. The US dollar index closed down at 97.64 from 98.14 last week. The Van Eck managed GDXJ returned to growth as it closed up at US$41.22 from $39.22 a week ago. The index is now up 36.40% so far in 2019. The US Global Go Gold ETF closed up at US$16.95 from $16.16 a week ago. It is up 48.55% so far in 2019. The HUI Arca Gold BUGS Index closed up at 226.21 from 213.65 last week. The SPDR GLD ETF saw its inventory increase to 859.83 tonnes from 843.41 tonnes a week ago, levels last seen in May 2018.
In other commodities, silver closed up at US$17.43/oz from $17.11/oz a week ago. Copper continues to suffer as it closed own at US$2.53/lb from $2.59/lb a week ago. Oil continues to suffer as well as WTI closed down at US$54.17 a barrel from $54.87 a barrel a week ago.
The Dow Jones Industrial Average continued to slide as it closed down at 25,628 from 25,886 a week ago. Canada’s S&P/TSX Composite Index also closed down at 16,037 from 16,149 the previous week. The S&P/TSX Venture Composite Index closed up at 581.95 from 570.43 last week.
Thor Exploration (TSX-V:THX) announced a private placement to raise 20.0 million.
Liberty Gold (TSX:LGD) announced a bought deal private placement to raise $13.2 million.
Major Financing Openings
Major Financing Closings
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