Market Update

general - Gold looking great - Cardinal

Good afternoon

I have to admit, that this time, Trump has my sympathy in a way - even though these US_bomardements have never helped things, and usually created more problems and killing in their aftermath...

Labor-market numbers in the US were rather disappointing, while Industrial Production in Germany has been surprisingly strong.

Gold through resistance today - let´s wait, whether it holds the current 1269 US$ in the US tonight. The HUI Gold Miners Index in the US is also breaking out...and last but not least, the A$ gold price at 1685 is very sexy. Gold stock performance in Australia was actually a touch disappointing - I guess we will see more on Monday, if the gold price holds up here.

Not so sexy are iron ore and steel rebar - both down by 5% today, while thermal coal and especially coking coal are still strong as a bull following reports, that rail-disruptions in Queensland might last for a bit longer. The explosive move of coking coal by nearly 90% or so, just because of a ( really bad ) cyclone in Australia ( and these things tend to happen more often because of climate changes ), gives further credit to Prairie Mining´s plans, to start their coking coal mine in Poland. Currently, nearly 50% ( !! ) of all seaborne trade in this type of coal comes from Australia!! Metals were also disappointing, most of them down a little except for nickel - possibly showing risk-off by investors today.

Quite large demonstrations in South Africa today, demanding the resignation of Zuma.

Cardinal Resources - market sources tell me, that not only Gold Fields is sitting there with 10% - apparently, also IGO have accumulated a 4.9% position in the stock - just below the official radar screen. This stock looks more certain now to be the next playground for M&A in Western Africa, and should benefit the sector. 

Still - it´s very important to carefully watch, what to buy...The recent problems of Blackham, which is reopening some old Wiluna-based mines, and Eastern Goldfields, which is doing the same with several old orebodies near Kalgoorlie, show us, that an old & bad mine does not just turn into a good mine, because the A$ gold price is looking sexy!

Have a nice weekend - I will be away for a week


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