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Kaloti Precious Metals-Morning Market Report-Thursday, March 2, 2017
Mar 2,2017 15:51CST
Gold Miners Running to Stand Still After Cuts, Franco CEO Says.

By 

ScrapMonster Author

Gold Miners Running to Stand Still After Cuts, Franco CEO Says.

 

 

 

 

 

 

 

 

 

 

 

OTC Trading Range For

All Times Are

As Per Dubai

Date

02/03/2017

 

01/03/2017

 

 

Gold

Silver

 

Platinum

Palladium

 

Open At 03.00

 

$1,248.47

$18.13

 

$1,024.31

 

$771.80

 

High Bid

 

$1,250.73

$18.46

 

$1,028.15

 

$782.60

 

Low Offer

 

$1,237.01

$18.23

 

$1,012.20

 

$769.48

 

Close At 02.00

 

$1,249.69

$18.42

 

$1,016.28

 

$777.38

 

Previous Close

 

$1,248.44

$18.31

 

$1,024.27

 

$770.95

 

Daily Change USD

$1.25

$0.11

 

($7.99)

 

$6.43

 

Daily Change %

 

0.10%

0.60%

 

-0.79%

 

0.83%

 

London Fixings

AM

$1,246.05

**

 

$1,026.00

 

$783.00

 

 

PM

$1,240.40

$18.33

 

$1,029.00

 

$781.00

 

COMEX Trading Volume

304414

76370

 

18556

 

4799

 

Active Month Settlement

$1,250.00

$18.48

 

$1,018.90

 

$779.00

 

Previous Session

 

$1,253.90

$18.46

 

$1,031.00

 

$771.70

 

Daily Change

 

($3.90)

$0.02

 

($12.10)

 

$7.30

 

EFP's

 

1.4/1.7

4/7

 

0/2

 

0/1

 

Forwards & Options

1 Month

3 months

 

6 months

12 months

 

GOFO

 

-

-

 

 

-

 

-

 

USD LIBOR

 

0.78889

1.064

 

1.37489

 

0.00000

 

Gold ATM Vols

 

12.430

14.140

 

14.89

 

15.8

 

Silver ATM Vols

 

18.94

21.33

 

23.24

 

24.92

 

Platinum ATM Vols

17.750

17.350

 

17.950

 

18.270

 

Palladium ATM Vols

27.050

25.850

 

26.000

 

25.900

 

Market Daily & Weekly

Market Snap Shot

 

01/03/2017

 

1 Day%

 

1 Week %

 

XAU

 

 

$1,249.69

 

 

0.10

 

0.98

 

XAG

 

 

$18.42

 

 

0.60

 

2.17

 

XPT

 

 

$1,016.28

 

 

-0.79

 

1.23

 

XPD

 

 

$777.38

 

 

0.83

 

1.05

 

Euro

 

 

1.0547

 

 

-0.27

 

-0.10

 

Note: Indications only, open and closing prices are bids; Data source: Bloomberg; Times as per Dubai

Fundamentals and News

Gold Miners Running to Stand Still After Cuts, Franco CEO Says

The world’s gold miners will be running on the spot for years to come as a surge in gold prices sends them scrambling to secure new production from less profitable projects, according to the largest mine streaming and royalty company.

 

“In my mind, the industry is ex-growth,” said David Harquail, chief executive officer of Franco-Nevada Corp.

 

After a downturn that squeezed capital investments, most gold producers have no choice but to invest in new projects as existing mines are depleted, Harquail said Wednesday in an interview.

They’ll be faced with options that are, cumulatively, unlikely to boost global gold production or lower the sector’s overall costs.

 

“None of those projects are really great,” Harquail said at the BMO Capital Markets mining conference in Florida. “They would have been built by now if they were.”

 

As a result, Harquail said Franco-Nevada plans to do more deals in the non-precious metals space, with a particular focus on oil and gas. The company’s mandate allows it to have as much as a fifth of its portfolio outside precious metals, and he would like to deploy capital to get to that level soon. Currently 94 percent of Franco-Nevada’s holdings are in precious metals, he said.

 

Gold, which posted four straight weekly gains through Friday, has been thrown into reverse amid a rapid rethink by investors about whether the Federal Reserve could move on interest rates this month. The metal extended its losing streak to a third day as signs of a strengthening U.S. economy diminished haven demand. The yield on two-year Treasuries reached the highest Wednesday on an intraday basis since 2009, after eclipsing its 2016 high.

 

The world’s biggest copper producer has some good news for bulls: it won’t be tempted into speeding up projects as prices rally.

 

What’s more, Codelco Chairman Oscar Landerretche says a series of natural obstacles facing the industry will also prevent other miners from piling in.

 

“It’s going to be very difficult for the industry to respond even if it wanted to,” Landerretche said Tuesday in an interview at the BMO Capital Markets mining conference in Florida. “It’s becoming very, very hard to do new projects.”

 

Data Forthcoming Releases

 

 

 

 

 

 

 

 

 

Time

Country

Today's Events

Forecast

Previous

Actual

 

 

5:30pm

USD

Unemployment Claims

243K

244K

 

 

 

 

 

 

 

 

*Dubai Time

 

Courtesy: http://kalotipm.com.sg/kaloti-market-report-2nd-march-2017

Gold prices

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