ORENINC INDEX – Monday, June 25th 2018
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Last week index score: 29.73
This week: 27.68
The Oreninc Index fell in the week ending June 22nd, 2018 to 27.68 from 29.73 a week ago as the financing drought continued as the summer market doldrums get underway.
Escalating trade tensions and imposition of tariffs between the US and China, the EU, India—well, almost everyone else really—continued to rock commodity prices, seriously denting copper’s recovery, and seeing a sell-off in the general stock market. The US implemented some US$50 billion of new tariffs against China and China said it will respond in kind, to which US president Donald Trump warned of even more tariffs if it did.
With the US Dollar Index continuing to show a strengthening tendency, the fear trade in gold that many commentators say will be a natural response to a trade war has yet to materialise, but gold stocks have been resilient in the face of the fall in the price of the yellow metal, indeed, the past week saw multiple M&A deals announced. However, the week ended with gold strengthening and the US dollar weakening but will this continue into the week ahead.
The past week saw OPEC members meet in Vienna, Austria with the oil ministers finally agreeing to increase output, as wanted by Russia and Saudi Arabia despite the reluctance of Iran, Iraq and Venezuela.
On to the money: total fund raises announced fell to C$32.44 million, a 15-week low, which included no brokered financings and no bought deal financings. The average offer size plunged to C$1.2 million, a 15-weel low, whilst the number of financings increased to 25, a two-week high.
Gold closed the week down at US$1,270/of from US$1,278/oz a week ago, recovering from a mid-week low of US$1,264/ox. Gold is now down 2.47% this year. The US dollar index fell slightly to 94.52 from 94.78 a week ago, pulling back from a mid-week high of 95.08. Despite the fall in the gold price, the van Eck managed GDXJ closed a smidge up at US$32.78 from US$32.71 a week ago. The index is down 3.96% so far in 2018. The US Global Go Gold ETF was also up a smidge at US$12.80 from US$12.79 a week ago. It is now down 1.62% so far in 2018. The HUI Arca Gold BUGS Index closed down at 176.93 from 177.88 last week. The sell-off in the SPDR GLD ETF resumed with its inventory closing down at 824.63 tonnes from 828.76 tonnes a week ago.
In other commodities, silver closed down at US$16.46/oz from US$16.56/oz a week ago. Copper’s also saw its losses continue as it closed down at US$3.05/lb from US$3.13/lb last week. With the OPEC meeting, oil showed some strength as it closed up at US$68.58 a barrel from US$64.38 a barrel a week ago.
The Dow Jones Industrial Average had another losing week to close at 24,580 from 25,090 last week. Conversely, Canada’s S&P/TSX Composite Index saw another winning week to close up at 16,450 from 16,314 the previous week. The S&P/TSX Venture Composite Index also closed up at 754.24 from 754.40 last week.
Major Financing Openings
Major Financing Closings
Rock Tech Lithium Inc. (TSX-V: RCK) (OTCQX: RCKTF) (FWB: RJIB) (W... READ MORE
NioCorp Developments Ltd. (TSX: NB) (OTCQX: NIOBF) is pleased to... READ MORE
Galantas Gold Corporation (TSX-V:GAL ) (AIM: GAL) (OTCQX: GALKF) ... READ MORE
Mayfair Gold Corp. (TSX-V: MFG) (OTCQX: MFGCF) today announced th... READ MORE
Montage Gold Corp. (TSX-V: MAU) is pleased to announce the clos... READ MORE
We acknowledge the [financial] support of the Government of Canada.