Fed Rate Hike Sends Gold Lower
The Federal Reserve followed through on yet another rate hike Wednesday; therefore, the Federal Funds rate has increased to between 1 and 1.25%. Peter Schiff, who long predicted another easing cycle would have taken hold by now, talks rate hikes in his latest podcast titled Hawkish Hike May Backfire on Fed.
The topic of winding down the Fed’s $4.5 trillion balance sheet was front and center. Schiff believes that the Fed’s plan to reduce its balance sheet by $50 billion per month is outrageous. He explains why the Fed will be unable to do this given the current deficits.
Gold fell by nearly 1%, shedding $10 an ounce to close at $1,262.63 Wednesday. Gold’s decline was bad news for the TSX Venture as the exchange fell below 780 on small volume of 60 million total shares. VanEck Vectors Junior Gold Miners (GDXJ) got crushed falling 4.34% to $32.85.
Newrange Gold Tops Juniors in June Stock Challenge
Newrange Gold jumped 16% to close at $0.395 per share Wednesday. The junior gold stock has been grinding higher for six months.
Newrange Gold – 6 Month Chart
The company’s latest press release is from May 10th. On that day, Newrange reported receiving all necessary drilling permits from the Bureau of Land Management (BLM) on its Pamlico Gold Project. They company also reported that,
“The drill, support vehicles and equipment are on site and drilling is scheduled to commence in the coming days at the Pamlico Gold Project.”
Assays from the drill results won’t likely begin to surface until July. The company explained some objectives for its first phase of drilling:
- “Drill test and expand recently discovered high-grade and disseminated gold mineralization sampled in the Merritt decline (in the Merritt Zone) as discussed in the Company’s News Releases of March 2 and April 11, 2017.
- Confirm and expand high-grade and disseminated gold mineralization in the Merritt Zone.
- Explore and establish continuity of mineralization between the Merritt Zone and the mineralization sampled in the Merritt decline.
Click here to read the entire press release.
Things began to pick up for Newrange on April 11th, after the company updated its ongoing program of diamond saw cut channel sampling at Pamlico. According to the company,
“The current results, when combined with prior results, define a zone 75.5 meters (247.8 feet) wide, interpreted to represent a true width,with a length-weighted average grade of 2.92 grams gold per metric tonne (g/T Au).”
Click here to read more.
Two Pinnacle Members Rise on Newrange Gold Pick
Pinnacle member ‘DoingtheDeal‘ and ‘JimmyBoy‘ both saw their combined average return increase by 8.09% Wednesday. These two members selected Newrange Gold for June’s Stock Challenge and outperformed all Challengers Wednesday.
Long-time member and past Stock Challenge Champ ‘mountaineer78’ has reclaimed the top spot with a 14.84% return. Pinnacle member ‘ksar88’ is nipping at his heels with a 14.65% return.