ORENINC INDEX – Monday, October 12th 2020
North America’s leading junior mining finance data provider
Last Week: 57.95
This week: 35.85
The Oreninc Index fell in the week ending October 9th, 2020 to 35.85 from 57.95 a week ago as the number of deals fell away.
The COVID-19 virus global death toll is approaching 1.1 million with more than 37 million cases reported worldwide.
Precious metals ended a volatile week strongly as US treasury secretary Steven Mnuchin said President Donald Trump wants a comprehensive stimulus package, a 180-degree turn around from earlier in the week when Trump terminated negotiations under after the November presidential election. US Federal Reserve chair Jerome Powell cautioned that the economic recovery remains uncertain as the COVID-19 pandemic continues to spread.
The number of people seeking unemployment benefits for the first time fell by 9,000 to 840,000, according to the US Labor Department, remaining at levels four times higher that pre-COVID-19 levels. Continuing unemployment claims fell to 10.97 million.
Hurricane Delta is making its way through the Gulf of Mexico, shutting 92% of crude output as it is forecast to make landfall in Louisiana, providing a spur to the oil price.
On to the money: the aggregate financings announced decreased to $49.69 million, a 26-week low, which included one brokered financing for $13.1 million, an eight-week low, and one bought deal financing for $13.1 million, a one-week high. The average offer size fell to $2.26 million, a six-week low, while the number of financings fell to 22.
Another better week for Gold as the spot price continued to recover to close up at $1,930/oz from $1,899/oz a week ago. The yellow metal is up 27.23 so far this year. The US dollar index weakened as it closed down at 93.05 from 93.84 a week ago. The VanEck managed GDXJ increased as it closed up at $59.50 from $55.32 a week ago. The index is now up 40.80% so far this year. The US Global Go Gold ETF closed up at $23.09 from $22.12 a week ago. It is up 31.49% so far this year. The HUI Arca Gold BUGS Index also closed up at 340.18 from 324.54 last week. The SPDR GLD ETF inventory sold down a little, closing the week down at 1,271.52 tonnes or 40.88Moz from 1,275.60 tonnes last week.
In other commodities, Silver also continued to recover as it closed the week up at $25.15/oz from $23.74/oz a week ago. Copper also had a strong week as it closed higher at $3.08/lb from $2.97/lb. Oil had a better week as WTI closed up at $40.60 a barrel from $37.05 a barrel a week ago.
The Dow Jones Industrial Average jumped higher as it closed up at 28,586 from 27,682 a week ago. Canada’s S&P/TSX Composite Index also moved higher to close at 16,562 from 16,199 the previous week. The S&P/TSX Venture Composite Index closed up at 732.25 from 708.60 last week.
Denison Mines (TSX:DML) opened a bought deal private placement to raise US$10 million.
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