Category Archives: General

‘Floodgates are open for gold to move higher’: Inflation retail in focus – analysts

'Floodgates are open for gold to move higher': Inflation, retail in focus 

Gold is up nearly 6% on the week and more gains are just around the corner, according to analysts, who still see the COVID-19 uncertainty as ruling the day and benefitting gold prices.

Despite rallying equities, a lot of uncertainty around the economic fallout from the COVID-19 outbreak remains, which is attracting new investors to the gold market.

“There is a danger here that we follow more of a W-shaped recovery in stocks rather than the V-shaped one. We are certainly not out of the woods in terms of the pandemic. We are still going to get some negative data,” T.D. Securities head of global strategy Bart Melek told Kitco News Thursday.

Total cases of coronavirus worldwide are now at more than 1,580,000, with at least 94,500 deaths. The U.S. has the most cases – 455,000 with at least 16,000 deaths. The latest data out of Italy, Spain and Germany are also not encouraging with new cases still rising.

“We are a long way off from the peak in many countries in terms of the virus,” said Capital Economics assistant commodities economist Kieran Clancy. “This uncertainty will continue to benefit gold.”

The economic projections vary, but the latest from banks like Citigroup and JPMorgan Chase is that markets will see at least a $5 trillion hit to the world economy over the next two years due to all the coronavirus-related shutdowns.

The gold market is looking strong this month, with many analysts expecting gold prices to keep rising in Q2, Q3, and Q4.

“Investors are still uncertain over the U.S. equity rally; therefore, the underlying need for safety still exists on the back of everyone’s mind … There is still a lot of uncertainty. People are a little bit over-optimistic on how the money coming from the Federal Reserve will make into the pockets of the consumer,” Blue Line Futures chief market strategist Phillip Streible told Kitco News.

Streible is forecasting for gold to average $1,750 in Q2, $1,850 in Q3, and $2,000 in Q4.

The Federal Reserve is fairly limited in the tools that it has and it looks like it will be letting inflation run, which is a big deal for gold in the long-term, Streible pointed out. “The Fed said it is not concerned about inflation right now. That really lets the floodgates open on gold moving higher. I think that gold looks better in the next couple of quarters,” he said.

Melek's short-term target is $1,800 an ounce, followed by gold, eventually rising to $2,000.

“That won’t happen overnight. But we are more likely than not heading to $2,000 level. I have to say; we are getting close to my $1,800 shorter-term target,” he said. “It will be tough to get above $1,800 in Q2 due to lack of economic activity, not putting pressure on inflation.”

However, if you are a long-term investor, you can’t forget about inflation, Melek added. “You have to start wondering what happens if people go bankrupt,” he stated. “Risk is that there is a debasement of currency or purchasing power via really low interest rate environment. For long-term investors, we will continue to see moves of money into gold.”

More upside for gold in the short-term is also being projected by Standard Chartered Bank analyst Suki Cooper, who sees an average of $1,725 for Q2.

“Spot gold prices have started to consolidate around $1650/oz, but the macro backdrop remains conducive for further price gains,” Cooper noted. “Unprecedented monetary and fiscal stimulus, negative-yielding debt and low interest rates for longer imply gold will continue to attract a flight to safety and quality.”

Cooper sees retail investor demand boosting prices higher. “Various Mints around the world have reported March sales reached multi-year highs. In the U.S., April sales are already at their highest since April 2013,” she said.

 

 

By Anna Golubova
Thursday April 09, 2020 15:23

 

 

 

20000 gold price: Franco Nevada chairman makes the case

$20,000 gold price: Franco Nevada chairman makes the case

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Gold prices should skyrocket to much higher levels, even $20,000 in two to five years’ time, as gold reaches a price level close to the level of the Dow Jones Industrial Index, this according to Pierre Lassonde, chairman of Franco Nevada.

“When I look at where we are today, the money creation will take time to [money] into people’s hands. I look at supply chain disruption, I think we’re looking at a two to five year period and I do believe that we will see, if not one to one [in the Dow/gold ratio], then very close to one to one,” Lassonde told Kitco News.

Gold prices have historically seen periods when the levels are close to, if not equal to, the Dow index.

“I just don’t know if the Dow will still be 23,000 or if it will still be $16,000, and even if [the ratio] is two to one, all I’m trying to point out is that the gold price will be materially higher than what it is today,” he said.

Lassonde noted that gold is still in the relatively early stages of a bull market that, especially gold mining stocks.

“The equities have such a long, long way to go to catch up, they’re going to be multiples of where they are today,” he said.

 

By Kitco News

Max Keiser explains why only gold silver and bitcoin can save you now

Max Keiser explains why only gold, silver and bitcoin can save you now

 

During volatile market conditions, investors should be looking for assets that represent stores of value, like gold, silver, and bitcoin, this according to Max Keiser, host of the Keiser Report.

The next alternative hard money, aside from silver, is bitcoin, and that’s why you see interest in bitcoin right now, it’s up this year. It’s one of the few markets in the world that’s up in 2020,” Keiser told Kitco News.

The notion that bitcoin cannot be a store of value due to its volatility is a myth that has been busted in 2020, Keiser said.

For years, people said that bitcoin is so volatile, how could it ever be a store of value? Well, this year, bitcoin is the least volatile asset class of any asset class there is. It’s less volatile than stocks, it’s certainly less volatile than oil, it’s less volatile than many, many currencies out there. So bitcoin is coming into its own in 2020 and it is a store of value, it is gold 2.0, and it will achieve a market capitalization like gold in the many trillions of dollars,” he said.

Keiser’s target price for bitcoin is $400,000. Bitcoin is up slightly year-to-date, up 5% since January. It has come down from its 2020 highs of $10,000 in February, last trading at $7,344.

I call it the Sistine Chapel of money. There’s never been money invented like bitcoin. It’s so gorgeous, so beautiful. Just study the design of it, the White Paper, it’s like looking at a fine Da Vinci art work or an incredible Swiss watch,” he said.

 

By Kitco News

 

Gold breaks above neckline of inverse head and shoulders higher prices ahead

Gold breaks above neckline of inverse head and shoulders, higher prices ahead

Today market participants witnessed a rare event with the U.S. equities rallying approximately 7% on the day based upon diminishing fears of the coronavirus, as the safe haven class rose between 3.6% (gold) and 5.39% (Silver) based upon the fact that the coronavirus is about to reach its apex in the United States this week.

This seemingly large swing in market sentiment is viewing the glass both half-empty and half-full at the same time. While it is quite logical to see the safe haven asset class rally as the United States digs in for a week that should see cases of the COVID-19 continue to rise as it reaches its apex, today’s relief rally in U.S. equities could be short-lived.

Although we are seeing market sentiment in global equities becoming more bullish, we should continue to see financial fallout from certain sectors including the airlines, and travel industry as a whole continue to contract.

One of the most important factors to look at in today’s moves in the financial markets is that although equities have rebounded a greater percentage than gold, gold is the only asset class to now be trading above pre-pandemic levels.

Today gold futures based upon the most active June contract gained significant ground. As of 4:42 PM EST June contracts are currently trading up $58.50, a gain of 3.6%, and fixed at approximately $1705 per ounce. Silver futures surged approximately 5.46% and are currently up $0.79 and fixed at $15.25.

What is also noteworthy and highly unusual is the spread between spot gold and gold futures. This spread continues to widen with the current spread reaching a differential of $49 today with spot gold currently fixed at $1657 up $41, and gold futures currently at between $1705 and $1706. One possible explanation for this spread that is widening is the expectation that the coronavirus in the United States will get worse before it gets better.

The quandary therefore is, can the US equities markets and the tremendous rally we witness today be sustainable throughout the week? While the answer to that question is unknown, market sentiment for the safe haven class with gold and silver in particular will continue to hold value if not rise throughout the week.

On a technical basis we see gold has formed an inverse head and shoulders formation with today’s move in gold futures breaking strongly above the shoulders indicating higher pricing ahead. The rally in gold futures could move as high as $1800 in the next two weeks.

Wishing you as always good trading,

 

By Gary Wagner

Contributing to kitco.com
 

Now is the time to hold a ‘significant’ position in gold – former Bear Stearns analyst

Now is the time to hold a 'significant' position in gold – former Bear Stearns analyst

The first quarter saw gold prices massively outperform equity markets and this trend is expected to continue, according to one former Bear Stern’s analyst.

Jesse Felder, publisher of the Felder Report investment newsletter, reiterated his long-term bullish outlook for gold, saying in a recent report that gold prices could easily push above its 2011 all-time highs. Gold prices are starting a new trading week with relatively low volatility as prices trade above $1,600 an ounce. June gold futures last traded at $1,646.70 an ounce, relatively unchanged on the day.

Felder said that he sees two factors that should prompt investors to add a “significant portion” of gold to their portfolio. .

The first factor Felder said that he is watching is the value of gold compared to equity markets. He said that the signal to buy gold over equities was triggered in February when the gold:equity ratio turned positive.

“The 36-month rate of change in the ratio between gold and the S&P 500 has provided a pretty good signal in this regard. In the past, when it has crossed above the zero line it has been a good buy signal for gold and good sell signal for stocks,” he said

His comments come after a dismal first-quarter performance for the Dow Jones Industrial Average and the S&P 500.

For the first three months of 2020, The Dow dropped 21.8%, its worst quarterly performance since 1987. Meanwhile, the S&P 500 fell 18.7%, its worst quarter since the 2008 financial crisis. In comparison, future gold prices ended the first three months of the year with nearly a 5% gain.

Financial markets were hit hard last month as the global economy came to a virtual standstill because of the COVID-19 pandemic. Governments all over the world have forced nonessential businesses to shutter and people to stay at home in an attempt to slow the spread of the deadly virus.

The second factor that will continue to support gold prices, Felder said, is the massive amount of money that is being spent to combat the impact the coronavirus is having on the global economy.

“Gold prices tend to rise when the fiscal deficit as a percent of GDP is rising,” he said.

Last month, the Federal Reserve made three emergency announcements that bought interest rates to zero and introduced unlimited quantitative easing measures.

“Some expect the deficit to expand by a much greater degree in the current crisis than it did a decade ago as a result of the combination of record fiscal stimulus paired with falling revenue. If so, gold would very likely break out above the high it set in 2011,” he said.

Felder added that not only is gold a vital portfolio diversification tool, but in these times of economic uncertainty, it is also an essential asset for wealth preservation.

 

By Neils Christensen

For Kitco News
 

The Markethive Vault – Unlock Your Potential Chinese

ツ暗ェツ氾环催ツ団ツ法ツ人

 

https://markethive.net/wp-content/uploads/MARKETHIVE.ARTICLES/THE.VAULT/THE-VAULT-HEADER.png

 

营销和工程天才和远见卓识,首席执行官Thomas Prendergast和首席技术官Douglas Yates以及他的团队正在为钱包安装奠定最后的基础-Markethive Vault。

Vault是您的新银行帐户,也将用更有效和有益的系统取代当前的支付中心。 这将使您的所有购买和升级更易于管理,为您提供奖励并创建一个新的令牌类别,比作一个名为Markethive Ad Credits的stablecoin,通过每月支付给您的折扣和利息来奖励节俭和储蓄。

 

保险库持有Markethive广告积分和MHV硬币。 它将支付您的门槛金额,您存入金库的MHV硬币和您的硬币夹余额的利息。 它也将是支付**服务的来源。 您将能够通过信用卡和比特币自动或手动资金。 自动付款可以安排保持最低余额,以确保每月有偿服务,如企业家升级顺利运行。

 

除了支付利息之外,您的保险库中的余额越高,您的Hive排名就越高。 更高的蜂巢排名将解锁额外的横幅和一个新的服务Markethive在不久的将来推出,视频节目,在那里你支付观看视频。

 

https://markethive.net/wp-content/uploads/MARKETHIVE.ARTICLES/THE.VAULT/VAULT.METER_.png

 

有哪些服务?

我指的**服务是激励贷款计划,企业家升级和SNAP部门,现在可用。 这也将包括视频广告,新闻稿,升压广告,事实上,在适当的时候所有的服务。

 

激励贷款计划和企业家升级:

ILP ™ 完全和完全符合监管和UCC代码,这意味着它不是安全。 激励贷款计划是一种贷款。 您选择贷款Markethive的金额没有限制。

 

最好的部分是即使是小投资者可以通过每月100美元的企业家计划参与。 这将使您每12个月持续为该计划贡献一份ILP的十分之一份额。 这是重要的,因为ILP将像比特币一样,因为它将能够分解为satoshis或bit,即:1百万分之一的令牌。 所以1个完整的ILP等于1百万ILP令牌或satoshis。 更多关于这在即将到来的文章.

 

这使Markethive能够在ILP上进行赏金,奖励和交易。 ILP和企业家忠诚度计划只是把这个强大的Markethive引擎变成摇钱树。

 

此外,参加Entrepreneur One忠诚度计划可以解锁即将到来的商务中心和门户网站,横幅广告计划等,并为您的每个转介到Markethive提供匹配的MHV硬币奖金。

 

ツ环板DEPARTMENTョツ嘉ッ

S.N.A.P是社交网络自动海报系统的首字母缩写。 这项服务是一个插件到你的WordPress网站,并会自动发布您的文章和博客和您订阅的博客,所有的社交媒体和博客平台。 这给你令人难以置信的复盖面,使您能够在线建立您的品牌知名度和存在。

 

此外,Snap部门将成为一家广告公司,将包括

 

工作人员作家写文章或一系列的自动应答电子邮件为您服务。

设计师做横幅广告,图像和标志

研究部门为您进行市场营销研究

专业人士设计和设置您的word新闻网站

一个成熟的广告公司,其中包括文案,直接营销,消费者营销,响应营销,博客铸造,WordPress的发展,捕获页面开发等。

 

Markethive正在成为一家媒体公司。

 

 

它是重要的是要注意Markethive不是传销或附属公司,它是一个转介公司。 所以免费会员也可以通过只提到只有三个人将激活水龙头或小额支付和蜂巢排名大大受益. 这意味着你不必在系统中花费任何钱。 只需构建它并获得奖励。

 

https://markethive.net/wp-content/uploads/MARKETHIVE.ARTICLES/THE.VAULT/The-Vault.png

上面的图片是它将如何工作的一个例子

 

 

 

蜂巢排名如何贡献?

蜂巢排名负责奖金,赏金和收入的增加。 这意味着您将从水龙头获得更多的收入。 如果你是一个企业家升级你得到你的匹配奖金增加。 它也将负责当天的皇家蜜蜂,为您提供当天的额外奖励。 蜂巢排名也在您在保险库中earn取的利息中起着重要作用。 您的蜂巢排名越高,支付给您的利息越多。

 

 

保险库的驱动力

保险库是Markethive广告学分将举行的地方。 广告信用类似于一个稳定的硬币。 一个Markethive信用=美元$1. 您将支付100Markethive广告积分,而不是每月支付100美元的企业家升级计划。 这些积分可以通过比特币或信用卡通过保险库购买。 实际上,您能支付任何通过保险库such如横幅节目,SNAP安装,新闻发布,和被赞助的文章和更多因为这些服务被实施和被介绍入Markethive系统。

 

此外,您可以将Markethive硬币(MHV)存入保险库,您将获得高达5%的MHV复利,将其滚回保险库并积累。 此金库积分可用于购买Ilp或企业家升级。 通过将其放回系统,Markethive正在为您的Markethive硬币提供更多价值,并为您支付利息,类似于投注。

 

 

什么是跑马圈地?

投注只是代表在您的钱包中持有一个固定的时间,在这种情况下,Markethive Vault,然后earning取利息。 投注你持有的硬币是一个相对简单的方法来earn取更多的硬币。 一个人从跑马圈地获得的奖励取决于时间和蜂巢排名的长度。 因此,它将有利于你保持它以上的阈值以及越来越多的蜂巢排名,使您能够earn取利息的最高金额. 如果您低于阈值,保管库将通知您。

 

所以现在有3种类型的货币在Markethive。 Markethive硬币,(MHV)ILP令牌以及Markethive广告积分,这些积分总是相当于您购买产品和服务的1美元。 所以一旦我们在交易所和钱包启动,信用就是购买服务的原因。 你拥有的MHV硬币的数量决定了支付的利息。

https://markethive.net/wp-content/uploads/MARKETHIVE.ARTICLES/THE.VAULT/COIN.COLLECTION1.png

通过购买Markethive硬币并将其银行放在保险库中,您基本上是在燃烧硬币,这是一件好事,正如本文中关于Markethive如何创建硬币速度的解释。 有许多方法可以燃烧加密硬币,这对硬币的财富和健康有利。 在这种情况下,烧掉Markethive硬币意味着将硬币从市场中拉出并将其放置或保存在金库中,因此供应量较少。 供应越少需求越大,这反过来又增加了硬币的价格。

 

保管库是在添加钱包之前设计和实施的。 当钱包完成并推出时,Markethive硬币的真实价值将实现。 一旦钱包被激活,Markethive广告积分和MHV硬币可以购买并转移到保险库。 所以这就像一个网上银行系统。 这是一个有利息的储蓄账户

 

它也改变了您支付订阅的方式。 每月订阅从保管库中的阈值中扣除。 您的信用卡将被扣除并存入您的金库门槛,以您选择维持所选门槛的金额和扣除的付款。 这也消除了直接信用卡付款和银行阻止您的交易所造成的问题。

 

 

 

现在情况如何

现在已经将保险库的主要方面安装到Markethive平台上。 Vault图标可以在您的Markethive页面的标题上看到,在Hive排名符号旁边。 点击它会带你到保险库页面。 这是Markethive钱包,ILP的基础,事实上,整个系统。 我们现在非常接近启动我们生态系统的核心。

 

请记住,你越使用保险库的利率越高。 您使用的系统越多,利率越高。 对股份利息进行评分的四个方面是蜂巢排名,硬币剪辑得分,忠诚度级别和出席奖金。 此外,您的金库余额和硬币夹余额将支付总利息,并在每个月底支付总利息。

 

 

ツ环板Servicesョツ嘉ッ

支付中心正在被一个更先进,更有效和有益的系统所取代,称为Vault。 这使您的购买和每月订阅更易于管理,并且还创建了一个名为Markethive Ad Credits的新交易所类别。 它会奖励你的节俭,并使用它作为一个银行帐户将为您earn取折扣和每月利息。 本月利息已经支付,您将在您的付款设置中看到额外的MHV。

 

Vault声明就像一个银行对账单,其中记录了所有的Vault活动,如购买,门槛,资金,利息,赏金,自动转账等。 这可以在您的Markethive帐户的保管库部分中查看,并导出,保存和打印为您的记录。

 

跳马乘数现在是活跃的,其中的乐趣开始。 玩HI/LO游戏,并增加你的硬币夹MHVs的量高达1000倍.有一个0%房子边缘,这意味着neither不Markethive或自己有任何内置的数学优势,从长远来看. 所有卷都可以证明是公平的,所以没有办法改变结果。

 

https://markethive.net/wp-content/uploads/MARKETHIVE.ARTICLES/THE.VAULT/The-Vault-Multiplier-Game.png

 

 

Vault订阅让您可以完全控制每月或每年订阅的所有忠诚度计划。 您可以创建新的,更新信用卡,用比特币支付,暂停或取消等等。

 

Vault原理图是我们剖析,说明和编辑Vault Gauge图标的许多方面(在页面标题中看到)的地方。 所以,你知道你的帐户的健康状况一目了然。

https://markethive.net/wp-content/uploads/MARKETHIVE.ARTICLES/THE.VAULT/Vault-Info-Dec-2019.png

Feed The Vault-在这里您可以购买Markethive广告积分并将其存储在您的vault中,以支付您每月或每年的忠诚度计划,新闻稿,横幅广告或任何其他可用于Markethive会员的广告计划。 请记住您使用保险库的次数越多,支付给您的利息百分比就越高。

 

 

https://markethive.net/wp-content/uploads/MARKETHIVE.ARTICLES/THE.VAULT/Feed-the-Vault.png

 

如上所述,Vault的基本原理现在可以在Markethive平台上查看,但是,仍然有一些调整正在完成,当然,我们的工程师现在正在努力让钱包准备好所有系统去!

 

 

未来是光明的Markethive和你。 这是确保Markethive生态系统的长期可持续性的巧妙方式,同时MHV硬币不可避免地增加价值,确保您在Markethive及其他领域的成功和繁荣。 敬请关注所有的更新,因为他们来手。 请参加由首席执行官托马斯*普伦德加斯特(Thomas Prendergast)和首席技术官道格拉斯*耶茨(Douglas Yates)主持的每周现场会议,了解所有令人振奋的新闻和信息。 您可以在markethive主页顶部的"日历"菜单中找到与Markethive Zoom Room的日期、时间和链接。 那里见!

 

要加入Markethive免费点击下面的图片:

COVID-19 has profound impact on US jobs which declined over 700000

COVID-19 has profound impact on U.S. jobs which declined over 700,000

The long-awaited U.S. labor department’s jobs report was released today indicating that employment in the United States declined by 701,000 individuals last month. Along with payrolls declining by over 700,000 which was 600,000 above the estimate provided by economists which predicted 100,000 jobs would be lost last month, the jobless rate rose to 4.4%. The last time the unemployment rate was as high was back in 2017.

The numbers released is not what market participants fear the most it’s the fact that these numbers are expected to jump even higher next month. According to Bloomberg economics they believe that the rate will rise to 15%, they also reported that James Bullard the president of the Federal Bank of St. Louis said that this number might be as high as 30% this quarter.

Bloomberg economics also reported that the reason for the anticipated dramatic rise is that the numbers presented today all our already outdated because they reference a. Based on the 12th of the month which didn’t include nearly 10 million people who have filed for unemployment benefits in the last two weeks alone.

In other words, today’s numbers provided by the Labor Department are simply the tip of the iceberg. The coronavirus has affected economies across the entire globe and every industry, until a vaccine is created or the number of new cases begins to decline, we can expect this scenario to only magnify to a larger scale.

The number of cases of individuals who have contracted the coronavirus has now exceeded 1 million globally. The death toll has also risen to over 53,000 people worldwide, with 211,000 recovering from the most devastating pandemic crisis of recent history.

Recent data now confirms that 245,000 individuals have contracted the disease in the United States, this according to Johns Hopkins University. The University draws its information from a combination of data sources such as the World Health Organization, governments and media.

While this is definitively the largest factor which has turn market sentiment extremely bearish towards the equities markets, it is also turned market sentiment extremely bullish for the safe haven asset group with gold rising once again this week.

As of 5:30 PM EST gold futures basis the most active June Comex contract is currently up $11.10 and fixed at $1648.80. This while the other precious metals (platinum, palladium and silver) are trading lower on the day. The other precious metals are heavily used in industry and therefore affected by the recent major correction in U.S. equities. We can expect gold to continue to rise if this current pandemic continues to devastate economies globally.

Wishing you as always good trading,
 

By Gary Wagner

Best time for gold prices will be April-June: BNP Paribas

Best time for gold prices will be April-June: BNP Paribas

Gold will see its best 2020 quarter this spring, but prices will peak just below $1,700 an ounce, according to BNP Paribas.

Even though the COVID-19 outbreak has forced BNP Paribas to revise up its 2020 gold price by nearly $100, it still sees the precious metal topping at $1,675 an ounce this year.

The price forecast is quite conservative, with gold averaging $1,675 in Q2, $1,610 in Q3 and then declining further to $1,550 in Q4. And in 2021, BNP Paribas projects a mere average of $1,500 an ounce.

“We have conservatively revised our positive gold price forecasts issued on 19 March, and now see gold averaging USD1610/oz (USD+90/oz) in 2020,” French international banking group said. “In 2021, on our view that economic conditions will progressively return to normal and inflationary pressures will remain subdued, we see gold averaging lower, at USD1500/oz.”

At the same time, BNP Paribas highlighted that gold will continue to appeal to investors looking for safety during such uncertain times. Increased demand will also remain strong as investors fret over a global economic slowdown triggered by all the COVID-19 shutdowns.

“The recessionary fallout of the COVID-19 outbreak on the global economy suggests investors are likely to continue to seek refuge in gold,” said BNP Paribas commodities economist Harry Tchilinguirian and head of macro quantitative and derivatives strategy Michael Sneyd.

Also, the massive quantitive easing by global central banks and the unprecedented fiscal stimulus boost the incentive to hold gold.

“With the Federal Reserve moving its policy rate to the lower bound and turning to unlimited quantitative easing, and other banks taking similar action, we expect real rates to remain in negative territory as nominal yields are suppressed. This raises the incentive to hold gold, particularly in such an uncertain economic environment,” Tchilinguirian and Sneyd wrote on Monday.

Two significant elements capping gold’s gains going forward will be the U.S. dollar and more margin-call selling as people flock to cash during the coronavirus panic.

“A rise in the price of gold will be challenged by U.S. dollar strength in the short term, stemming from recent stress in USD funding and dislocations in credit markets that have led to the hoarding of cash,” the economists said. “In addition, gold’s role as a hedge in investor portfolios will be put to use in the case of losses in other asset classes, such as a strong correction in equity markets.”

 

By Anna Golubova
For Kitco News

 

COVID-19 continues to pressure global equities lower as it supports gold

COVID-19 continues to pressure global equities lower, as it supports gold

Within the extreme carnage in the U.S. equities markets, both gold futures and spot pricing remained in an upswing. Although any rise within both of those precious metals were tepid at best and also affected by a stronger U.S. dollar that gained value since hitting it’s low on Friday. After the U.S. dollar traded to a high of above 103 on the dollar index it had five consecutive days in which it traded lower, with Friday containing the lowest low since the week of March 9th when it traded at approximately 95 on the index.

Now that the first quarter of 2020 has completed, economic analysts have revealed that both the Dow Jones industrial average as well as the Standard & Poor’s 500 had their worst quarter in history. The common belief now is that market participants believe that the breath and scope of the current COVID-19 will get much worse and affect more global citizens than it already has.

The fact of the matter is that most countries are in essence maintaining a lockdown and a practice of social distance as the majority of venues such as restaurants, bars, concerts and movies have either been temporary halted or in the case of restaurants only serve food to be taken out. Although global measures have been taken to slow down the decline of this virus as it spreads throughout the world the pandemic to grow in terms of reported cases and reported deaths.

According to the website worldometers.info/coronavirus, to date there have been 932,760 confirmed cases of the contagious disease worldwide, however of those reported cases 656,554, or 95% of the cases are considered in mild condition, and 5% are considered in serious or critical condition. The number of deaths has now risen to 46,840. The site also contains information on recovered individuals from the virus and puts that number at 193,891. This breaks down to closed cases of 240,731 and active cases at 692,029.

One component of the numbers of contracted cases is that the United States has moved into the uncharted position of number one, with the total cases reported in the United States now at 212,980. The death toll on the US has now grown to 24,450. There are only two countries that have reported more total new deaths than the United States which is Italy reporting 727 new deaths today, and Spain reporting that an additional 923 people have died in their country due to contracting the virus.

While this terrible pandemic which has spread worldwide at this point continues to put pressure on US and global equities, we have not seen a similar negative correlation with gold pricing. While it is true the both gold and silver have risen last month, with gold actually testing and breaking $1700 per ounce, and challenging that elusive price point on three occasions.

On a technical basis our studies indicate that during this morning’s New York futures trading hours gold opened and closed below its 50-day moving average. However, that changed once trading began in Australia this morning and currently June 2020 gold futures are fixed at $1606.50 which is a net increase of $15.10 on this day. The data cited in this report on global equities, the precious metals, and most importantly the continuing growth of the COVID-19 continuing to spread. This suggests that until a vaccine is created which could take as long as 12 to 18 months, we could see a continuing of pressure on U.S. equities and safe haven assets such as gold move back into a solid rally mode.

 

Wishing you as always good trading,

 

By Gary Wagner

Market forces move gold lower

Market forces move gold lower

While we have gold, prices come under substantial pressure over the last two weeks it had still managed to hold above key level of $1600 per ounce. This is in conjunction with U.S. equities markets trading under great pressure as they have lost value throughout this month. According to Reuters, “Wall Street’s three major indexes tumbled on Tuesday, with the Dow registering its biggest quarterly decline since 1987 and the S&P 500 suffering its deepest quarterly drop since the financial crisis on growing evidence of massive economic damage from the coronavirus pandemic.”

Of course, the primary issue remains the social distancing used to battle COVID – 19 (coronavirus). While many medical analysts predict that it will take up to a year or a little bit more to produce an effective method to eradicate the virus. Currently there have been 854,039 reported cases of covid-19, with 42,014 reported deaths, and 176,000 906 individuals who have recovered from the virus. Of the remainder of individuals fighting this illness off 95% are experiencing mild to moderate symptoms with 5% having severe or life-threatening effects.

Due to the fact that by no means has this contagious disease shown signs off slowing its spread, infecting more individuals globally everyday it is unlikely we will see the global economy recover just yet.

Yet oddly enough the flight to gold has either been short lived or yet to be seen.

On a technical basis gold pricing broke through its 50-day moving average in trading today. This average currently is fixed at $1599.80. Today’s lower pricing indicates very strong resistance at that price point. The next level of support would come in at $1580, with resistance at $1640

For those who would like more information simply use this link.

Wishing you as always good trading,

 

By Gary Wagner
Contributing to kitco.com