InvestMacro

By The Gold Report

Source: Streetwise Reports   07/06/2020

An H.C. Wainwright & Co. report discusses GoldMining’s new royalty company as well as a technical report.

In a June 25 research note, H.C. Wainwright & Co. analyst Heiko Ihle reported two GoldMining Inc. (GOLD:TSX; GLDLF:OTCQX) news events.

The first, most recent development, Ihle relayed, is that the Vancouver, British Columbia-headquartered company created a wholly owned gold-focused royalty subsidiary, called Gold Royalty Corp., that will contain existing and future net smelter royalty returns on its projects and “may unlock future shareholder value.” The company’s “extensive portfolio includes 14 recently created net smelter return (NSR) royalties spread across GoldMining’s current asset portfolio,” the analyst noted.

In the future, GoldMining could expand its new company’s portfolio by buying back project rights held by third parties and add more shareholder value via a possible spinoff, initial public offering, merger or sale of Gold Royalty, Ihle stated.

“GoldMining therefore appears poised to benefit from a future rerating if management can produce tangible value from its new subsidiary,” because royalty and streaming companies tend to trade at higher values than explorers and producers, Ihle commented.

Second, Ihle indicated, GoldMining filed an NI 43-101 technical report, containing an initial Inferred resource estimate, on its Yarumalito gold-copper project in Colombia. The pit-constrained resource, based both on porphyry and epithermal mineralization, consists of 1.23 million ounces (1.3 Moz) of gold and 129.26 million pounds of copper, or 1.50 Moz gold equivalent. Grades average 0.58 grams per ton gold and 0.09% copper.

GoldMining is expected to conduct future exploration and drill programs at Yarumalito, which are needed to “better define the geometry and continuity of the higher-grade epithermal veining” that seems to “overprint the porphyry-style mineralization,” Ihle pointed out. The latter measures about 2,000 meters (2,000m) in an east to west direction, 500–1,000 meters north to south and 650m in vertical depth. Only 55 holes were drilled historically at Yarumalito.

Ihle concluded that GoldMining is expected to overall “continue unlocking shareholder value through advancing its exploration-stage asset base, especially as gold prices continue to remain strong” and “could enter into a transaction that should provide liquidity to GoldMining as well as a more tangible value to Gold Royalty Co.”

H.C. Wainwright has a Buy rating on GoldMining with a CA$6.50 per share target price; the current share price is CA$2.35.

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Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
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Disclosures from H.C. Wainwright & Co., GoldMining Inc., Company Update, June 25, 2020

I, Heiko F. Ihle, CFA, Tyler Bisset and Marcus Giannini, certify that 1) all of the views expressed in this report accurately reflect my personal views about any and all subject securities or issuers discussed; and 2) no part of my compensation was, is, or will be directly or indirectly related to the specific recommendation or views expressed in this research report; and 3) neither myself nor any members of my household is an officer, director or advisory board member of these companies.

None of the research analysts or the research analyst’s household has a financial interest in the securities of GoldMining, Inc. (including, without limitation, any option, right, warrant, future, long or short position).

As of May 31, 2020, neither the Firm nor its affiliates beneficially own 1% or more of any class of common equity securities of GoldMining, Inc.

Neither the research analyst nor the Firm has any material conflict of interest in of which the research analyst knows or has reason to know at the time of publication of this research report.

The research analyst principally responsible for preparation of the report does not receive compensation that is based upon any specific investment banking services or transaction but is compensated based on factors including total revenue and profitability of the Firm, a substantial portion of which is derived from investment banking services.

The firm or its affiliates received compensation from GoldMining, Inc. for non-investment banking services in the previous 12 months.

The Firm or its affiliates did not receive compensation from GoldMining, Inc. for investment banking services within twelve months before, but will seek compensation from the companies mentioned in this report for investment banking services within three months following publication of the research report.

The Firm does not make a market in GoldMining, Inc. as of the date of this research report.

H.C. Wainwright & Co., LLC and its affiliates, officers, directors, and employees, excluding its analysts, will from time to time have long or short positions in, act as principal in, and buy or sell, the securities or derivatives (including options and warrants) thereof of covered companies referred to in this research report.

( Companies Mentioned: GOLD:TSX; GLDLF:OTCQX,
)

By Lukman Otunuga, Research Analyst, ForexTime

Article by ForexTime

ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com

By CentralBankNews.info

Malaysia’s central bank lowered its policy rate for the fourth time this year, as expected by most but not all economists, saying this will provide “additional policy stimulus to accelerate the pace of economic recovery.”
Bank Negara Malaysia (BNM) cut its Overnight Policy Rate (OPR) by 25 basis points to 1.75 percent and has now cut it 125 points this year following earlier cuts in January, March and May.
It is also BNM’s fifth rate cut since May 2019 by a total of 150 basis points when it began easing in response to slower global growth.
In addition to cutting OPR, the central bank also lowered their ceiling and floor rates of its interest rate corridor to 2.0 percent and 1.50 percent, respectively.
The central bank’s monetary policy committee said it would “continue to assess evolving conditions and their implications on the overall outlook for inflation and domestic growth” and use its policy levers as appropriate to create conditions for a sustainable economic recovery.
Although economic activity in Malaysia, as in the rest of the world, are beginning to recover from a trough in the second quarter due to fiscal and monetary stimulus, BNM said the pace and strength of this recovery remains subject to downside risks, including the prospect of further outbreaks of the pandemic and weaker-than-expected recovery in global growth.
“The impact of COVID-19 on the global economy is severe,” BNM said, noting the global economy is projected to shrink this year and broad-based weakness in labour markets and precautionary behavior by households and businesses could affect the recovery.
Malaysia’s economy slowed sharply in the first quarter as gross domestic product shrank 2 percent from the previous quarter for annual growth of 0.7 percent, the weakest since third quarter of 2009.
Consumer prices have also declined in the last three months, with deflation of 2.9 percent in both May and April.
“Inflationary pressures are expected to be muted in 2020,” BNM said, adding average inflation is likely to be negative this year, primarily reflecting lower oil prices, which will continue to affect the outlook along with commodity prices.
However, the central bank said the risks of a broad-based and persistent decline in prices is seen as limited as economic activity and demand improves.
After falling sharply from mid-January to mid-March, Malaysia’s ringgit has rebounded and has been largely steady in the last month.
Today the ringgit was trading at 4.27 to the U.S. dollar, down 4 percent this year.

Bank Negara Malaysia issued the following statement:

by JustForex

The US dollar has strengthened against a basket of world currencies. The dollar index (#DX) has updated local highs. Demand for risky assets has weakened amid new outbreaks of coronavirus disease. Investors are concerned about the possible return of restrictive measures. Optimistic economic releases from the USA have supported the greenback. In June, the ISM U.S. Purchasing Managers Index accelerated from 45.4 to 57.1.

The Reserve Bank of Australia, as expected, kept the basic parameters of monetary policy at the same level. The regulator confirmed its readiness to soften monetary policy if necessary. We also recommend paying attention to the speeches of FOMC representatives.

The black gold prices are consolidating. WTI crude oil futures are currently testing the $40.40 per barrel mark. Today, we recommend paying attention to weekly crude oil inventories in the USA according to API data.

Market indicators

Bullish sentiment was observed yesterday in the US stock market: #SPY (+1.54%), #DIA (+1.77%), #QQQ (+2.46%).

The 10-year US government bonds yield is consolidating. At the moment, the indicator is at the level of 0.67-0.68%.

• – The number of open jobs in the US labor market (JOLTS) at 17:00 (GMT+3:00).

by JustForex

By IFCMarkets

Better Australian economic data bullish for AUDUSD

Australia’s economic data in the last couple of weeks were positive on balance: the trade surplus rose to A$8.03 billion from 7.83 billion in April, and retail sales increase continued – 16.9% in May after 16.3% in April. And consumer prices recorded an uptick after decline in May – the Melbourne Institute (MI) inflation gauge rose 0.6% over month in June after 1.2% decline in May. However services sector contraction continued in June – the Australian Industry Group (AIG) service index ticked down to 31.5 from 31.6 in May. Readings below 50.0 indicate contraction. Improving data are bullish for AUDUSD.

Summary of technical analysis

Market Analysis provided by IFCMarkets

By Orbex

Euro Attempts To Breakout Higher, Capped By 1.1347

The euro currency made some gains on Monday as price action tried to break out from the triangle pattern.

Prices briefly tested highs near 1.1347 before pulling back toward the close of the European session.

The overall trend in EURUSD remains flat with no major bias building up. A pullback could see the euro testing the 1.1261 level of support.

Alternately, a successful breakout above 1.1347 could signal a move toward the 1.1400 handle eventually.

GBPUSD Attempts To Test 1.2516 Resistance Level

The pound sterling is seen holding its ground against the US dollar. Prices are up a modest 0.14% as the cable attempts to test the 1.2516 resistance level.

The cable initially pulled back after testing this level just last week. A successful breakout above 1.2516 could open the way for the currency to rise to 1.2643 thereafter.

To the downside, the swing low near 1.2437 will keep the cable from posting further declines for now.

A break down below this level will of course accelerate the declines back to the 1.2344 level of support.

Crude Oil Rises Over 1% In An Attempt To Breakout

Oil prices are somewhat bullish on Monday. Price action is modestly trading above the 40.00 handle. But crude oil is not out of the woods yet.

A clean breakout above 40.00 is required to confirm the upside bias. For the moment, prices are strongly trading around the rising trend line.

This might potentially trigger a move lower if the commodity fails to post any further gains above this level.

A minor resistance level might form near the previous swing high point at 41.60.

Gold Inches Back Higher But Off July 1st Highs

The precious metal is recovering following last week’s decline from a fresh nine-year high.

Price action is trading around the 1783 level with the 4-hour chart signaling a Doji candlestick pattern.

This could potentially either signal a continuation or a reversal to the recent uptrend. Prices are still a little away from the 1800 level.

Any near term dips could, of course, attract new buyers into the market.

The price level near 1773 remains a likely spot to hold the precious metal from further declines in the near term.

By Orbex

By Orbex

The US has seen an encouraging streak of strong economic data recently.

Last week, the June labor market reports marked a record jump of 4.8 million jobs over the month. The result comes on the back of a 2.8 million increase over the prior month.

This has pushed the economy further along in recovering the 20.5 million jobs lost in April. With the jump in new jobs, the unemployment rate also fell again.

The rate has now dropped back down to 11.1% from highs of almost 20% at the worst of the COVID-19 crisis.

Non-Manufacturing Jumps

This week, the US ISM Non-Manufacturing reading also displayed strength, jumping to 57.1 in June.

The increase from the prior month’s 45.7 reading means that the services sector soared back into growth last month as lockdowns began easing around the US. It was also far stronger than the 50.1 reading analysts were looking for.

The breakdown of the data was particularly encouraging. Business activity rose to 66 from 41 previously, with new orders also rising to 61.6.

Supplier deliveries saw a strong increase too, rising to 57.5 along with the employment component which rose to 43.1 from 31.8 previously.

Markit Data Not As Strong

Yesterday also saw the release of the Markit services PMI data. While this reading wasn’t as strong as the ISM data, there was still a firm upside movement over the month. The index rose to 47.9 from 37.5 previously.

Despite still being in contractionary territory, the two data sets together have helped further lift optimism towards the US economy with investors happily bidding up equities prices.

Risks Rising

However, there are questions now regarding the outlook for the recovery, especially given that the US has seen a dramatic increase in new COVID-19 infections across many US states over recent weeks.

In some cases, lockdown measures have needed to be reintroduced or extended. Texas has announced it is postponing the reopening of its economy, while California has ordered the closure of the hospitality sector across 19 counties there to help combat a fresh outbreak there.

Goldman Turning Bearish on US Economy

Investment giant Goldman Sachs has taken a dim view on the US economic outlook given the fresh restrictions and the prospect of further such measures being needed.

In a research note this week Goldman said:

“The healthy rebound in consumer-services spending seen since mid-April now appears likely to stall in July and August as authorities impose further restrictions to contain virus spread.”

USDJPY Descending Triangle

USDJPY continues to hold above the 106.01 level support for now. However, while the bearish trend line from earlier 2020 highs remains as resistance, creating a descending triangle pattern, the risk of further losses is growing.

A break below the 106.01 level will turn focus to the 105. Level next ahead of deeper support down at the 102.27 closing 2020 lows to date.

By Orbex

Article By RoboForex.com

EURUSD, “Euro vs US Dollar”

EURGBP is trading at 1.1304; the instrument is moving above Ichimoku Cloud, thus indicating an ascending tendency. The markets could indicate that the price may test the cloud’s upside border at 1.1210 and then resume moving upwards to reach 1.1385. Another signal in favor of further uptrend will be a rebound from the support level. However, the bullish scenario may be canceled if the price breaks the cloud’s downside border and fixes below 1.1240. In this case, the pair may continue falling towards 1.1185.

XAUUSD, “Gold vs US Dollar”

XAUUSD is trading at 1784.00; the instrument is moving above Ichimoku Cloud, thus indicating an ascending tendency. The markets could indicate that the price may test the cloud’s upside border at 1780.00 and then resume moving upwards to reach 1805.00. Another signal in favor of further uptrend will be a rebound from the rising channel’s downside border. However, the bullish scenario may no longer be valid if the price breaks the cloud’s downside border and fixes below 1765.00. In this case, the pair may continue falling towards 1735.00.

USDRUB, “US Dollar vs Russian Ruble”

USDRUB is trading at 71.50; the instrument is moving above Ichimoku Cloud, thus indicating an ascending tendency. The markets could indicate that the price may test Tenkan-Sen and Kijun-Sen at 70.95 and then resume moving upwards to reach 73.05. Another signal in favor of further uptrend will be a rebound from the rising channel’s downside border. However, the bullish scenario may be canceled if the price breaks the cloud’s downside border and fixes below 69.65. In this case, the pair may continue falling towards 68.15.

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Article By RoboForex.com

XAUUSD, “Gold vs US Dollar”

As we can see in the H4 chart, the uptrend continues. After finishing another Doji reversal pattern not far from the rising channel’s downside border, XAUUSD is reversing and correcting from the horizontal resistance level. One may assume that later the pair may complete the pullback and resume trading upwards. In this case, the upside target is at 1800.00. At the same time, one shouldn’t exclude an alternative scenario, according to which the market may fall and return to 1759.50.

NZDUSD, “New Zealand vs. US Dollar”

As we can see in the H4 chart, the ascending tendency continues. After forming a Harami pattern not far from the resistance level, NZDUSD is reversing and may later reach the support area at 0.6520. After testing this area, the instrument may resume growing towards the target at 0.6590.

GBPUSD, “Great Britain Pound vs US Dollar”

As we can see in the H4 chart, after forming several reversal patterns, including Harami, close to the resistance level, GBPUSD has started reversing. At the moment, the pair is expected to continue the descending tendency. In this case, the downside target is at 1.2355. Still, there is another scenario, which suggests that the instrument may continue trading upwards to reach 1.2620 without reversing and forming any significant corrections.

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

by JustForex

The EUR/USD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.12432
• Open: 1.13080
• % chg. over the last day: +0.56
• Day’s range: 1.12590 – 1.13325
• 52 wk range: 1.0777 – 1.1494

The EUR/USD currency pair went down. The trading tool has updated local lows. At the moment, EUR/USD quotes are consolidating in the range of 1.1250-1.1280. Demand for risky assets has weakened amid new outbreaks of coronavirus disease. Investors are concerned about the possible return of restrictive measures. Greenback was supported by optimistic economic releases from the USA. In June, the ISM U.S. Purchasing Managers Index accelerated from 45.4 to 57.1. The single currency is tending decline. We recommend opening positions from key support and resistance levels.

The news feed on 2020.07.07:

• • – the number of open jobs in the US labor market (JOLTS) at 17:00 (GMT+3:00).

We also recommend paying attention to the speeches of FOMC representatives.

Indicators do not send accurate signals: the price has fixed between 50 MA and 100 MA.

The MACD histogram has begun to decline, indicating the bearish sentiment.

Stochastic Oscillator is in the oversold zone, the %K line has crossed the %D line. There are no signals at the moment.

Trading recommendations

• Support levels: 1.1250, 1.1220, 1.1190
• Resistance levels: 1.1280, 1.1300, 1.1325

If the price fixes below the level of 1.1250, a further fall in the EUR/USD quotes is expected. The movement is tending to 1.1220-1.1200.

An alternative could be the growth of the EUR/USD currency pair to 1.1300-1.1325.

The GBP/USD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.24618
• Open: 1.24815
• % chg. over the last day: +0.15
• Day’s range: 1.24624 – 1.25181
• 52 wk range: 1.1466 – 1.3516

The GBP/USD currency pair is still being traded in a flat. Unidirectional trends are not observed. The pound sterling is testing local support and resistance levels: 1.2460 and 1.2510, respectively. Investors expect additional drivers. In the near future, a technical correction of the trading instrument is possible. Positions must be opened from key levels.

The news feed on the UK economy is pretty calm.

Indicators do not send accurate signals: the price has crossed 50 MA.

The MACD histogram is near the 0 mark.

Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which gives a signal to sell GBP/USD.

Trading recommendations

• Support levels: 1.2460, 1.2435, 1.2400
• Resistance levels: 1.2510, 1.2540

If the price fixes above 1.2510, GBP/USD is expected to rise. The movement is tending to 1.2540-1.2570.

An alternative could be a decrease in the GBP/USD currency pair to 1.2430-1.2400.

The USD/CAD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.35601
• Open: 1.35324
• % chg. over the last day: -0.09
• Day’s range: 1.35246 – 1.35885
• 52 wk range: 1.2949 – 1.4668

USD/CAD quotes have moved to growth. The trading tool has updated local highs. At the moment, the USD/CAD currency pair is consolidating in the range of 1.3555-1.3585. The technical pattern signals a further correction of quotes. We are expecting important economic releases from Canada. We recommend you to pay attention to the dynamics of prices of “black gold”. Positions must be opened from key levels.

At 17:00 (GMT+3:00), Ivey index of business activity in Canada will be published.

Indicators do not send accurate signals: the price has fixed between 50 MA and 100 MA.

The MACD histogram has started to rise, indicating a possible correction of the USD/CAD currency pair.

Stochastic Oscillator is in the overbought zone, the %K line has crossed the %D line. There are no signals at the moment.

Trading recommendations

• Support levels: 1.3555, 1.3520, 1.3490
• Resistance levels: 1.3585, 1.3610, 1.3650

If the price fixes above 1.3585, further growth of the USD/CAD quotes is expected. The potential movement is to 1.3610-1.3650.

An alternative could be a decrease in the USD/CAD currency pair to 1.3530-1.3500.

The USD/JPY currency pair

Technical indicators of the currency pair:

• Prev Open: 107.460
• Open: 107.347
• % chg. over the last day: -0.20
• Day’s range: 107.246 – 107.790
• 52 wk range: 101.19 – 112.41

Since the beginning of this week, trades in USD/JPY have been very active. At the same time, a unidirectional trend is not observed. The trading instrument is in a sideways trend. At the moment, USD/JPY quotes are testing the resistance level of 107.75. The mark of 107.45 is immediate support. We recommend you to pay attention to the dynamics of yield on US government bonds. Positions must be opened from key levels.

The publication of important economic reports from Japan is not planned.

Indicators signal the power of buyers: the price has fixed above 50 MA and 100 MA.

The MACD histogram has started to rise, indicating bullish sentiment.

Stochastic Oscillator is in the overbought zone, the %K line has crossed the %D line. There are no signals at the moment.

Trading recommendations

• Support levels: 107.45, 107.25, 107.05
• Resistance levels: 107.75, 108.10

If the price fixes above 107.75, USD/JPY is expected to rise. The movement is tending to 108.00-108.25.

An alternative could be a decrease in the USD/JPY currency pair to 107.25-107.00.

by JustForex