|Day's range||1,676.50 - 1,737.20|
B2Gold (BTG) continues to expect gold production between 1,000,000 ounces and 1,055,000 ounces for 2020 backed by the better-than-expected performance of its operating mines.
(Bloomberg) -- The gold market is showing no signs of going back to normal.Spreads between New York and London have stayed around $40, a sign that traders are hesitant and liquidity is thin. It’s still difficult to ship gold around the world and traders have speculated that some dealers are pulling back given the logistical risks.“The market itself is not broken,” said Rhona O’Connell, head of market analysis for EMEA and Asia at INTL FCStone. But it’s “thin and dislocated.”To be sure, there’s plenty of gold available in New York, according to Comex. Total stockpiles tracked by the exchange almost doubled over the past week and are at record highs.Spot gold rose 1% to $1,662.68 an ounce as of 11:35 a.m. in London. On the Comex, futures were more expensive at $1,706.The gaps should be temporary as major refineries restart operations, Suki Cooper, precious metals analyst at Standard Chartered Bank, said in a note.Read also: Gold Markets Are Being Haunted by Signs of Dislocation AgainFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
We have closed the first quarter of 2020. It’s been difficult months for the market because while most of the investors were well aware of being close to an end of the economic cycle, nobody could have expected such a shock on the economy due to the Coronavirus pandemic
Kevin Kelly, a former Air Force fighter pilot in Scottsdale, Arizona, has been telling anyone who would listen since 2008 to buy gold and silver in preparation for the next crisis. Dismissed as “gold bugs” by many mainstream investors, those who have long advocated buying gold have been vindicated this year, as prices have risen 9 per cent while stocks have dropped 20 per cent after the coronavirus outbreak. Last month, analysts at Goldman Sachs argued it was “time to buy the currency of last resort”, saying gold could hit $1,800 a troy ounce from its current price of about $1,650 due to “fear-driven investment demand”.
Bitcoin and ether climbed modestly late Wednesday as lighter crypto derivatives volumes signaled uncharacteristic caution among the market’s traders.
The S&P; 500 rallied a bit during the trading session on Wednesday, reaching towards the top of the shooting star from the previous session. The question now is whether or not it can take out the top of that shooting star?
The crude oil markets were very quiet on Wednesday as you would expect, with the OPEC members and several other countries having a teleconference on Thursday. Quite frankly, by the time the day into on Thursday, we should have a much clearer idea of where price goes next.
Gold markets pulled back just a bit during the trading session on Wednesday, after forming a very bearish looking candlestick on Tuesday. That being said, the trend is still higher so therefore I am looking for opportunities to go long gold, not short it.
Based on the early price action and the current price at 23123, the direction of the June E-mini Dow Jones Industrial Average into the close is likely to be determined by trader reaction to the 50% level at 22524.
Gold prices held at mid $1,600 levels on Wednesday as the safe-haven crowd looked for clues from Wall Street, where stock prices recorded another significant gain on talk that the U.S. was turning the corner on Covid-19 despite mounting deaths. Gold futures for June delivery on New York’s COMEX settled up 60 cents, or 0.6%, at $1,684.30 per ounce. June gold hit 2012 highs of $1,742.20 on Tuesday before investors took profits on reports that the coronavirus infection rate in New York, the U.S. epicenter for the pandemic, was stabilizing despite daily death tolls in the hundreds.
The US dollar has rallied against the Japanese yen over the last 24 hours, after reaching down towards the 50 day EMA. That being said, the market is essentially neutral, so therefore it’s difficult to find a reason to get involved one way or the other.
The British pound continues to rally against the US dollar and other currencies around the world, refusing to give it up. With that being the case, the market looks as if it is threatening the crucial 1.25 level.
The British pound continues to rally against the Japanese yen in pressing the ¥135 level. If we can break above that handle, it’s very possible that we go looking towards the ¥137 level.
The Euro has fallen during a huge portion of the trading session on Wednesday but found enough support near the 1.08 level to turn around and rally a bit. By doing so, this shows a bit of resiliency in a market that I think is trying to find a new fulcrum for balance.
Gold traders are likely to react to today’s release of the Federal Reserve Monetary Policy Minutes, which could offer clues as to further stimulus measures.
Global oil producers are scrambling to secure a supply cuts deal to counter an unprecedented drop in demand triggered by the coronavirus pandemic. “I don’t think a deal between Opec and other producers like Russia makes any difference because of the severity of the drop in demand,” the 73-year-old executive said. “Opec, as the so-called central bank of oil, has disappeared.”
As central banks around the world inject trillions into the global economy, investors are looking at bitcoin and its "halving" as a hedge against inflation.