Scotiabank analyst Jason Bouvier highlighted flows beginning in the TMX pipeline and outlines the main eventual beneficiaries,
“The TMX pipeline is expected to add 590 mbbl/d of pipeline capacity starting in Q2/24. However, due to high tolls we expect the pipeline to only flow its committed volumes .
“The rally continues with gold cresting new highs even as interest rates remain elevated in an absolute sense, the dollar remains strong in an absolute sense, equity markets continue to perform strongly, volatility remains subdued, etc… and with still only relatively brief inflows into gold-backed ETPs , we are still waiting for the price gains to have back-up. Yes, the Fed is set to cut rates this year, but gold continues to rally regardless like it is fulfilling some predetermined outcome.