Home > Boards > Free Zone > User's Groups > The GraveYard Shift

PM Gold/Silver Round Up-Another rush to cash? Analysts

Public Reply | Private Reply | Keep | Last ReadPost New MsgNext 10 | Previous | Next
JD400 Member Profile
 
Followed By 47
Posts 16,574
Boards Moderated 2
Alias Born 09/23/09
160x600 placeholder
Correction to Wall Street Electric Car Article
"No Revenue, No Problem: Wall Street Rushes Into Electric Car and Truck Startups," at 9:14 a.m., incorrectly referred to Tesla Inc. as Tesla Motors Inc. (Corrected Oct. 21.)
Vinci Subsidiary Gets Two Contracts for New Zealand Rail for About EUR485 Million
UniCredit Sells Italian Non-Performing Loans Portfolio to Illimity Bank
Treasury Yields Touch Multi-month Highs
U.S. Stocks Lower As Stimulus Talks Continue
T-Mobile Starts VC Fund for 5G
Europe's Antitrust Push Against Google Hasn't Dented Its Heft. Can the U.S.?
AT&T On Pace for 10-Day Losing Streak -- Data Talk
Judge in Google Lawsuit Presided Over Major Antitrust Case
HSBC to Cut Up to 300 UK Commercial Banking Jobs -Reuters
Nestle's Organic Sales Growth Beat Consensus -- Earnings Review
Top Company News of the Day
Why Central Banks Want to Create Their Own Digital Currencies Like Bitcoin
U.S. Stocks Climb Amid Stimulus Hopes, Earnings
Thermo Fisher Scientific Expects 2020 Revenue to Grow 20%
Form 8.3 - Willis Towers Watson Plc.
Why People Are Still Obsessed With 'Candy Crush Saga' -- Journal Report
Housing Starts and Existing Home Sales Seen Rising -- Data Week Ahead
Open-Source Startup Anyscale Raises $40 Million in Series B Funding Round
HSBC Hires Former Credit Suisse Deal Maker for Vice-Chair Role -- Financial News
Ørsted To Present First Nine Months Results On 28 October
Cogeco Communications to Acquire DERYtelecom for C$405 Million
U.S. Stocks Waver Amid Stimulus Hopes, Earnings
Verizon Holds Its Ground Ahead of iPhone 12 Release -- Update
JD400   Friday, 09/18/20 07:52:59 PM
Re: None
Post # of 4902 
PM Gold/Silver Round Up-Another rush to cash? Analysts are cautiously watching stocks, gold price

with TGYS soundtrack



by Anna Golubova


Friday September 18, 2020 15:34


(Kitco News) Recent gold price action has been highly dependent on the stock market and analysts are carefully watching another potential move into cash if there is a major market selloff.

Gold prices continue to trade in the middle of the $1,900-$2,000 an ounce range, as the yellow metal consolidates and gears up for its next move. At the time of writing, December Comex gold futures were trading at $1,958.80, up 0.46% on the day.

"One of the primary catalysts of the metals market until we get a little closer to the election is going to be the equity market," said Kitco Metals global trading director Peter Hug.

The valuation in the equity space is concerning considering the economy is still in the beginning stages of its recovery, Hug pointed out.

"FANG stocks took equity market up. But that bubble has certainty been pricked and rotation has to go into normal economy stocks. When only 30%-40% of the economy is open of pre-COVID levels, the valuation is as if the economy is at full guns. Something is not balanced here and if the market takes a big hit, people might be moving into cash ahead of the election," he said.

Hug is bullish on gold next week with one caveat — that the equity market at least holds or rises. "If the equity market takes a hit and sells off, that is going to be negative for the industrial complex — palladium, platinum, silver, and will drag gold down with it," he explained.

Another fiscal package from the U.S. administration will also be critical before the election, Hug added.

"People will get nervous with this valuation of equity markets without a fiscal stimulus … Powell was a bit weak in his urging of the US government to add more stimulus to the economy. It appears that it may not happen before the election", he said. "If there is a package that gets out, then both the equity markets and the metals will go higher."

The short-term rates will continue to play a key role in gold's price action going forward, noted RJO Futures senior commodities broker Daniel Pavilonis.

"If they come off, they can push the metal higher," he told Kitco News, Friday. "Equities are in a risk-off environment and could weigh on the metals."




-----------------------

Stocks were weaker today, continuing the slide from yesterday for the quad witch option expiration.

They did recover some of their losses into the closing hour for the weekend.

The Dollar was choppy and weak, but managed to close almost unchanged.

Gold and silver were a little stronger but closed almost unchanged.

Next week is a Comex option expiration for gold, for the October contract.

The physical inventories in Hong Kong Comex warehouses remained very thin.

Have a pleasant weekend.

















-------------------------
.
.
.
.
.
Kitco News
Jesse's Cafe
Sundown- Gordon Lightfoot
The GraveYard Shift
.
.
Have a Great Weekend :)
.
.
=============================================


Public Reply | Private Reply | Keep | Last ReadPost New MsgNext 10 | Previous | Next
Follow Board Follow Board Keyboard Shortcuts Report TOS Violation
X
Current Price
Change
Volume
Detailed Quote - Discussion Board
Intraday Chart
+/- to Watchlist
Consent Preferences