Seasonality takes the price higher The injection season is ending The risk of a long position rises with the price of the energy commodity Natural gas is a volatile fuel in its physical form, and the price action in the futures market can be equally combustible at times. Periodic price explosions and impositions are the
Oil ministers meet in early December Russia is an influential factor Saudi Arabia has a particular reason to increase production cuts Bullish and bearish factors continue to pull the price of crude oil in opposite directions these days. The crude oil market has changed dramatically over the past years. The United States has moved towards
(credit: Your Friendly Gold Enthusiast) What the reports seem to say so far is that revenues are generally up, as expected. Gold prices were about 250 USD higher in 2019 Q3 than in 2018 Q3, and higher on average this quarter than last. Higher revenue was expected by many analysts, including your own Gold Enthusiast.
A rally coming into this week’s data release The market expected a 54 bcf injection The EIA reported an injection of 56 bcf The realization that the winter season has arrived lifted the price of December natural gas futures over the recent trading sessions. Since mid-October, December futures have moved from $2.388 to a high
Earlier this week Cantor Fitzgerald analysts initiated coverage of Aurora Cannabis (ACB), issuing a “neutral” rating to the stock. Meanwhile, the Canadian company has been announcing moves in the U.S. and Mexico. Company executives also made headlines this week by mispronouncing one of their flagship brands named after the California town, San Rafael. Whether this
It’s been yet another volatile week in the metals complex, with gold (GLD) and silver (SLV) losing a little of their luster with renewed trade chatter. We got news this morning that China and the U.S. are open to rolling back tariffs in phases, and this certainly hasn’t done anything to prop up the fear
Lower rates make gold a more attractive investment The cost of owning gold drops Producers receive less for hedging future production Gold has been one of the best-performing assets of 2019. The yellow metal has come a long way since the turn of this century when central banks were selling the precious metal. The United
Fracking has made the US the leader in natural gas The 2020 Presidential election will be a referendum on fracking Start thinking about the potential for a new dynamic in natural gas in 2021 The natural gas market is now steaming into the withdrawal season, where inventories will start to decline in November. Last year
Crude oil is the world’s most liquid and closely watched commodities. The energy that continues to power the world is a barometer for the health and wellbeing of the global economy. Economic growth leads to increased demand and a higher price, while contraction can weigh on requirements and prices. Therefore, macro-economic factors contribute to the
Bullish sentiment for silver is sitting at 79%, and never really cooled down that much from the September top. Silver continues to consolidate after its Q3 run, and remains below key resistance at $18.45/oz. If silver can get through $18.45/oz, this would increase the probability that the $16.95/oz low will hold as the low for
Inventory injections will start declining over the coming weeks The market was expecting an injection of 86 bcf The price action after the EIA data continues to be bullish After the most recent release of inventory data from the Energy Information Administration, there are only two weeks left in the 2019 injection season in the
Earlier this week, an H.C. Wainwright analyst initiated coverage of GW Pharmaceuticals (GWPH), adding to the buzz already surrounding this increasingly popular cannabis stock. On Wednesday, H.C. Wainwright analyst Douglas Tsao initiated coverage, giving the stock a “Buy” rating and $170 price target. In a note to investors, Tsao said that he expects GWPH stock
Innovative Industrial Properties (IIPR) – which has been one of the better performing stocks of the cannabis sector – announced yesterday a couple more acquisitions and partnerships that could bode well for this stock. The first announcement highlighted the closing of a sale-leaseback transaction with PharmaCann LLC (PharmaCann) for a property located in Dwight, Illinois.
(credit Fidelity.com) Gold has basically been going sideways for about 2 months now, trending sideways after a local high. There is some debate out there about what level traders should watch for gold. Your friendly Gold Enthusiast likes to err slightly on the side of caution for several reasons. First, keeping levels “tight” leads to
A stretched rubber band eventually snaps The range in crude oil has narrowed over since early October Three factors that could move oil higher over the coming weeks The price of crude oil was trending lower since late April when the nearby NYMEX futures contract hit the high for 2019 at $66.60 per barrel. Increased
An anniversary of an explosive rally Inventories say a repeat performance is not in the cards Last week’s low was another higher bottom Seasonality can be a powerful force in commodities markets. In agricultural commodities, the time of the year when uncertainty peaks is during the late winter and early spring in the northern hemisphere.
Last year’s price action was ugly $50 keeps holding I am bullish on oil with a stop below $49 per barrel The price of crude oil continues to bounce off the $50 per barrel level on the active month NYMEX futures contract. Bullish and bearish factors have been pulling the energy commodity in opposite directions
Earlier this week, Canopy Growth (CGC) announced that it’d become the exclusive supplier of medicinal cannabis to Luxembourg – a country with a population of approximately 600,000. While Luxembourg’s population might not measure up to say… the 40 million people in California (or Canada), Canopy Growth’s exclusive arrangement is not insignificant. It’s anticipated that Luxembourg
The Gold Miners Index has rallied 60% off of its September 2018 lows. Despite this significant move higher, valuations remain subdued on a historical basis. Given the likely robust revenue growth rates we’ll see in Q3 and Q4 earnings reports, any weakness is likely to get bought up by funds into Q1 2020. The Gold
The market had expected an injection of 91 billion cubic feet The EIA report came in a touch lower, and the price edged higher Only three weeks to go until stockpiles begin to decline The end of the injection season in the natural gas market is now less than one month away. Last year at
Central Banks are gold’s leading proponents The Dutch central bank explains why Central bank buying provides support for the precious metal The dollar is the world’s reserve currency. Meanwhile, gold is an asset that central banks around the world hold, but rarely talk about. The International Monetary Fund reports on central bank’s reserve holdings each
Bullish sentiment on silver is down significantly from its highs at 97% bulls. While this is a step in the right direction, sentiment readings are high considering a 14% correction in the metal. It’s possible we saw the lows at $16.95/oz, but the possibility remains for an undercut of these lows. It’s been a busy
The price got too cheap Inventories keep climbing, but not for long At least one attempt to reach $3 per MMBtu Natural gas has a long history as one of the most volatile commodities when it comes to its price action. Since the NYMEX first began trading the combustible energy commodity, the price has ranged
Whatever it is, here are the latest predictions from big institutions. Not exactly recently, but Citigroup went on record in early September saying they expect gold to hit 2000 USD/troy oz in the next 2 years. HSBC said yesterday they’re looking for 1605 by the end of 2020. Standard Chartered is looking for 1570 by the end of next