Some perspective., page-26

The scope of Human behaviour is amazing when there are uncertainties in an environment from high optimism to severe pessimism. The gold futures over night improved as gold physical is under severe duress (some main refiners closed) as traders are rolling over contracts to avoid being caught not having the gold for their clients, the gold spot price is up after being on a tight leash for nearly 3 days around 1600-1615US$. The spook of numbers is the US dollar surprising for some that it is weakening now as stimulus is now abundant and the dollar now not so important. The weaker the US will eventually trend with gold going up hugely, when the professionals work out the normal. Crypto sideways and miners stocks as GDX in shock for investors as many other miners are closing etc. Dow & Europe indices had good to strong greens. Should be a good close again to end the week positive GREEN for Goldie's. Go GOR.

Some good references=

Banks and traders typically ship gold around the world on commercial flights, linking the trading hubs of London and New York with vaults and refineries in Switzerland, Hong Kong and Singapore. But as the virus grounds flights and refineries shut down, it’s becoming harder to trade between global markets.

Adding to the squeeze: the larger spot market in London is dominated by 400-ounce bars of gold, but only 100-ounce and kilobars are deliverable on the Comex contract. Late on Tuesday, after New York futures shot to the highest premium to the spot price in four decades, CME Group said it would launch a new futures contract under which 400-ounce bars would also be deliverable, helping ease tightness.

Open interest in April futures on Wednesday was the equivalent of about 10.8 million ounces, down from 19.6 million ounces on Monday. Total deliverable stocks in Comex warehouses were about 8.7 million ounces.

In other signs that pressure may be easing, the premium of Comex futures over spot gold narrowed to about $26 (U.S.) on Thursday, from as high as $67.57 an ounce earlier this week. By Ranjeetha Pakiam Bloomberg Thu., March 26. “Spreads are looking much better today,” Stephen Innes, chief global market strategist at AxiCorp Ltd., said in a note. “Lower spreads are always welcome in any market, especially in gold, when physical is especially tight with refiners shut down around the world.” Pressure should also ease as the market switches to the June contract as Swiss refineries should be up and running by the time that contract is settled, he said. https://www.thestar.com/business/2020/03/26/historic-gold-squeeze-shows-signs-of-easing-as-investors-exit.html

"Separate economic data showed the pace of growth in the U.S. economy was left at 2.1% in the fourth quarter in the final estimate from the Commerce Department released on Thursday. Economists are certain first-quarter growth will be weaker than the October-December period due to the coronavirus shutdown but an even-larger contraction is expected for the April-June quarter. “Although short-term prices remain volatile day to day and even hour to hour, the large amounts of monetary stimulus...may continue to provide a longer-term underlying tailwind as has been the case since last summer,” he told MarketWatch. That stimulus includes both interest rate cuts and asset purchase programs, which can depress the value of paper currencies relative to hard assets like gold," he said https://www.marketwatch.com/story/gold-price-rises-attempts-to-resume-its-bullish-rally-as-investors-watch-for-key-economic-reports-2020-03-26?reflink=mw_share_twitterPublished: March 26, 2020 at 1:53 p.m. ET

By

Myra P. Saefong and

Mark DeCambre