Referendum on Greek Austerity Draws Near At the time of writing, the people of Greece were preparing for a referendum on whether to accept austerity measures imposed by creditors as part of a bailout the country desperately needs. Negotiations stalled after Greece and its creditors failed to reach an agreement on conditions for releasing emergency… Continue Reading
A final cash-for-reforms proposal was delivered to Greek Prime Minister Alexis Tsipras, along with a clear message from European Union leaders that all patience had been exhausted, and that the Greek government must choose between reforms and an accompanying 15.5 billion euro loan that would see Greece remain solvent at least to the end of… Continue Reading
A final feasibility study for the Ranger uranium mine in Australia has been cancelled, effectively suspending any future plans for development of Ranger 3 Deeps indefinitely. The news is the latest in what has been a difficult period for uranium miners following the Fukushima disaster in March 2011, which resulted in the shutdown of Japanese… Continue Reading
Gold Price Lower After More Positive U.S. Jobs Data The price of gold was down on Friday following more positive employment data from the U.S. (see page 2). Private sector employment was particularly robust for May, adding over 200,000 jobs compared to the month prior. As shown in figure 1 (page2) unemployment and change in… Continue Reading
Following the Q1’15 financial reporting period, two miners announced the suspension of operations during the week; on Thursday, a major diversified miner announced it would implement temporary halts to six Canadian metallurgical coal mines for about 3 weeks during Q3. While only a brief period, the Company has not ruled out additional closure periods during… Continue Reading
Comments from Federal Chair Janet Yellen on Friday raised the possibility of an interest rate hike in 2015 as U.S. CPI data showed a three-month annualized inflation rise of 2.6%, a four-year high. The rise in inflation in the U.S. may attract investors to inflation-hedge commodities, especially gold, if the Federal Reserve is slow to… Continue Reading
It was a good week for precious metals as April economic data from the U.S. failed to impress, while the U.S. dollar fell against other major currencies. While employment data was favourable, retail sales in particular were flat last month according to the Commerce Department on Wednesday, well below the 0.3% increase projected by economists… Continue Reading
On Monday, the UxC weekly Spot price of uranium recorded its biggest 1-week decline since November 2014, falling 6.5% week-over-week, culminating in a drop of 10.5% over the last five weeks. However, throughout this week, the daily UxC Broker Average Price (BAP), which is closely correlated with spot price, gained 3%. Despite the rise in… Continue Reading
Iron Ore Price Surge Short-Lived as Long-Term Fundamentals Take Hold It appears the two week surge in the price of iron ore was short-lived as reality surrounding the steelmaking industry in China (accounting for ~50% of global steel production) took hold. The 62% Fe import price failed to break the $60 psychological barrier and suffered… Continue Reading
This week saw the continuation of M&A activity in the junior mining/exploration space with two proposed deals announced during the week (see Page 14), following 15 other similar transactions involving gold juniors over the last 12 months. Many consider such M&A activity a leading indicator for positive sentiment in the mining sector; studies certainly do… Continue Reading
Precious Metals Steady Despite Renewed Concerns of a Greek Euro Exit The week saw re-escalating concerns surrounding Greece’s ability to finance its sovereign debt. There is growing speculation that finance ministers will not grant further financial support to Greece after the next Eurogroup meeting beginning next Friday (April 24th), resulting in a debt default that… Continue Reading
Playing down expectations of an interest rate rise in the short-term, the Federal Reserve’s speech was reflective of a negative week in economic data in the U.S., translating to a depreciating dollar and rebound in precious metals prices. Major economic indicators including housing starts, industrial production and initial jobless claims were all negative, perhaps reflecting… Continue Reading
The continued implosion of iron ore prices gained momentum this week as steel prices continue to sink on weak demand/supply fundamentals. Iron ore supply from the ‘Big 4’ producers has ramped up significantly over the past 3-years in response to an explosive rally in prices that peaked in February 2011, when the Platts IODEX price… Continue Reading
Gold and WTI crude prices spiked during the week after the crisis in Yemen intensified as Saudi Arabia began military incursions against Houthi rebels who had overtaken much of the country in recent months and removed President Abd-Rabbu Mansour Hadi from power. Saudi Arabia has a long history of political influence over its southern neighbour,… Continue Reading
Gold Rises After Fed Tempers Interest Rate Forecast Playing down expectations of an interest rate rise in the short-term, the Federal Reserve’s speech was reflective of a negative week in economic data in the U.S., translating to a depreciating dollar and rebound in precious metals prices. Major economic indicators including housing starts, industrial production and… Continue Reading
