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Gold unfurls all of its sails to capture strong tailwinds from dollar weakness – Kitco NEWS

Published

3 years ago

January 13, 2022

Extreme dollar weakness resulted in strong tailwinds which propelled gold to higher pricing today. As of 5:45 PM EST gold futures basis, the most active February 2022 contract is currently trading up by seven dollars, a gain of 0.38% and fixed at $1825.30. Yesterday’s double-digit gain in gold pricing which opened at $1801.40, traded to a high of $1822.90, and then settled just below yesterday’s high at approximately $1818 was in anticipation that today’s CPI index would reveal that inflation continues to expand. The dollar lost just over 0.7%, giving up 0.67 points, and is currently fixed at 94.955.

The U.S. dollar sold off strongly today as the Bureau of Labor Statistics released the most current data on inflation which showed that inflationary pressures continue to grow, now at the highest level we have seen in 40 years. Today’s inflation report revealed that the current level of inflationary pressures is now at a 40 year high, with the last occurrence of inflation at these levels occurring in June 1982.

The U.S. Bureau of Labor Statistics reported the following, “The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.5 percent in December on a seasonally adjusted basis after rising 0.8 percent in November, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all-items index increased 7.0 percent before seasonal adjustment.”

The largest contributors to inflationary pressures continues to be the cost of shelter as well as used cars and trucks. The report also indicated that the food index, although it increased less than in recent months still rose 0.5% in December.

The core CPI index which strips out food and energy costs is still the preferred inflationary barometer used by the Federal Reserve. The report indicated that all items with the omission of food and energy indexes rose 5.5%, “the largest 12-month change since the period ending in February 1991.” The energy index rose 29.3% over the last year with food costs increasing by 6.3% during the same period.

With inflation at these historical levels, it will not be an easy or short-term project for the Federal Reserve to halt its dramatic increase. Actions by the Federal Reserve can only do so much to alleviate the spiraling level of inflation. One of the primary causes of the recent inflationary pressures is supply chain bottlenecks and shortages. These bottlenecks are largely a byproduct of the shortage of workers. This worker shortage can be seen in factories producing the goods. It is also prevalent in those workers that are responsible for different components of the distribution. As long as there is a shortage of workers to produce the goods, unload the boats, and truckers to move the goods there will continue to be supply chain bottlenecks and shortages.

If gold continues to gain value as I believe it will, it will not encounter any of the technical resistance occurring at $1833.40, which corresponds to a 38% Fibonacci retracement. Above that resistance can be found at $1851.60 the 23% Fibonacci retracement. Major resistance occurs at $1879.50 which is based upon the high achieved on November 16 of last year.

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Business

TC Energy cuts cost estimate for Southeast Gateway pipeline project in Mexico

Published

4 hours ago

November 7, 2024

Anne Joseph

CALGARY – TC Energy Corp. has lowered the estimated cost of its Southeast Gateway pipeline project in Mexico.

It says it now expects the project to cost between US$3.9 billion and US$4.1 billion compared with its original estimate of US$4.5 billion.

The change came as the company reported a third-quarter profit attributable to common shareholders of C$1.46 billion or $1.40 per share compared with a loss of C$197 million or 19 cents per share in the same quarter last year.

Revenue for the quarter ended Sept. 30 totalled C$4.08 billion, up from C$3.94 billion in the third quarter of 2023.

TC Energy says its comparable earnings for its latest quarter amounted to C$1.03 per share compared with C$1.00 per share a year earlier.

The average analyst estimate had been for a profit of 95 cents per share, according to LSEG Data & Analytics.

This report by The Canadian Press was first published Nov. 7, 2024.

Companies in this story: (TSX:TRP)

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BCE reports Q3 loss on asset impairment charge, cuts revenue guidance

Published

4 hours ago

November 7, 2024

Anne Joseph

BCE Inc. reported a loss in its latest quarter as it recorded $2.11 billion in asset impairment charges, mainly related to Bell Media’s TV and radio properties.

The company says its net loss attributable to common shareholders amounted to $1.24 billion or $1.36 per share for the quarter ended Sept. 30 compared with a profit of $640 million or 70 cents per share a year earlier.

On an adjusted basis, BCE says it earned 75 cents per share in its latest quarter compared with an adjusted profit of 81 cents per share in the same quarter last year.

“Bell’s results for the third quarter demonstrate that we are disciplined in our pursuit of profitable growth in an intensely competitive environment,” BCE chief executive Mirko Bibic said in a statement.

“Our focus this quarter, and throughout 2024, has been to attract higher-margin subscribers and reduce costs to help offset short-term revenue impacts from sustained competitive pricing pressures, slow economic growth and a media advertising market that is in transition.”

Operating revenue for the quarter totalled $5.97 billion, down from $6.08 billion in its third quarter of 2023.

BCE also said it now expects its revenue for 2024 to fall about 1.5 per cent compared with earlier guidance for an increase of zero to four per cent.

The company says the change comes as it faces lower-than-anticipated wireless product revenue and sustained pressure on wireless prices.

BCE added 33,111 net postpaid mobile phone subscribers, down 76.8 per cent from the same period last year, which was the company’s second-best performance on the metric since 2010.

It says the drop was driven by higher customer churn — a measure of subscribers who cancelled their service — amid greater competitive activity and promotional offer intensity. BCE’s monthly churn rate for the category was 1.28 per cent, up from 1.1 per cent during its previous third quarter.

The company also saw 11.6 per cent fewer gross subscriber activations “due to more targeted promotional offers and mobile device discounting compared to last year.”

Bell’s wireless mobile phone average revenue per user was $58.26, down 3.4 per cent from $60.28 in the third quarter of the prior year.

This report by The Canadian Press was first published Nov. 7, 2024.

Companies in this story: (TSX:BCE)

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Business

Canada Goose reports Q2 revenue down from year ago, trims full-year guidance

Published

4 hours ago

November 7, 2024

Anne Joseph

TORONTO – Canada Goose Holdings Inc. trimmed its financial guidance as it reported its second-quarter revenue fell compared with a year ago.

The luxury clothing company says revenue for the quarter ended Sept. 29 totalled $267.8 million, down from $281.1 million in the same quarter last year.

Net income attributable to shareholders amounted to $5.4 million or six cents per diluted share, up from $3.9 million or four cents per diluted share a year earlier.

On an adjusted basis, Canada Goose says it earned five cents per diluted share in its latest quarter compared with an adjusted profit of 16 cents per diluted share a year earlier.

In its outlook, Canada Goose says it now expects total revenue for its full financial year to show a low-single-digit percentage decrease to low-single-digit percentage increase compared with earlier guidance for a low-single-digit increase.

It also says it now expects its adjusted net income per diluted share to show a mid-single-digit percentage increase compared with earlier guidance for a percentage increase in the mid-teens.

This report by The Canadian Press was first published Nov. 7, 2024.

Companies in this story: (TSX:GOOS)

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