ORENINC INDEX – Monday, June 8th 2020
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Last Week: 75.78 (Updated)
This week: 69.61
The Oreninc Index fell in the week ending June 5th, 2020 to 69.61 from an updated 75.78 a week ago although brokered deals are still in evidence.
The COVID-19 virus global death toll is nearing 400,000 and almost 7 million cases reported worldwide.
An unexpectedly positive US jobs report saw precious metals sell-off as the stock market leapt higher on a wave of sentiment about economic recovery following the contraction caused by COVID-19. The Bureau of Labor Statistics said 2.5 million jobs were created in May flipping expectations of up to 7.75 million job losses. The report also said the unemployment rate fell to 13.3%. Earlier, the agency reported another 1.88 million people filing for first-time jobless claims bringing the total since March 21st to 40.77 million. Industrial raw materials such as copper and oil both benefited from this.
This was certainly better news than that issued by the Congressional Budget Office (CBO) at the start of the week when it stated the COVID-19 impact will wipe out US$7.9 trillion as it reduces economic output by 3% through 2030.
This news, however, was thrust into the background by the daily mass protests in cities across the country against the death of George Floyd at the knee of a police officer in Minnesota and the increasingly hostile and militaristic stance president Donald Trump is taking against the basic freedoms his citizens are supposed to enjoy.
The events of the past ten days are eroding the soft power the US has enjoyed as a beacon for democracy as the Trump administration continues a tense exchange with China over trade, currency valuation and more recently the suppression of freedoms in Hong Kong. Trump has ceded the moral high ground allowing China to reflect that what is good for the goose is good for the gander.
In Europe, the European Central Bank increased its emergency spending program by €600 billion to a total of €1,350 billion.
On to the money: brokered action eased-off as the total raises announced fell again to $77.7 million, a seven-week low, which included four brokered financings for $23.75 million, a four-week low, and no bought deal financings. The average offer size fell to $1.46 million, a seven-week low, although the number of financings increased to 53.
Gold sold-off sharply as the week drew to a close following the US jobs report as the spot price closed down at $1,685/oz from $1,730/oz a week ago. The yellow metal is up 11.06% so far this year. The US dollar index fell again to 96.93 from 98.34 last week. The VanEck managed GDXJ saw its trajectory continue downwards as it closed down at $44.38 from $46.08 a week ago. The index is now up 5.02% so far in 2020. The US Global Go Gold ETF also closed down at $18.59 from $19.81 a week ago. It is up 5.87% so far in 2020. The HUI Arca Gold BUGS Index closed down at 261.26 from 273.33 last week. The SPDR GLD ETF inventory continued to increase, cresting at 1,133.37 tonnes before closing the week slightly down at 1,128.11 tonnes from 1,128.4 tonnes last week.
In other commodities, silver surged up to $18.30/oz before falling to close down at $17.41/oz from $17.87/oz a week ago. Copper reached its highest level since early March as it closed up at $2.55/lb from $2.42/lb a week ago. Oil continued its recovery as WTI closed up at $39.55 a barrel from $35.49 a barrel a week ago.
The Dow Jones Industrial Average roared onwards as it closed up at 27,110 from 25,383 a week ago. Canada’s S&P/TSX Composite Index closed up at 15,854 from 15,192 the previous week. The S&P/TSX Venture Composite Index closed up at 556.91 from 553.77 last week.
Galway Metals (TSX-V:GWM) opened a best efforts private placement to raise $12.25 million which was upsized to $17.35 million.
Major Financing Openings
Major Financing Closings
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Patagonia Gold Corp. (TSX-V: PGDC) announces its financial result... READ MORE
We acknowledge the [financial] support of the Government of Canada.