Kitco News
(Kitco News) – The Federal Reserve surprised markets earlier in the week with an emergency 50-basis-point interest rate cut. This, in turn, has helped the gold market see its best weekly performance in 11 years.
The post Gold price is on a path to $1,700 but volatility will be high – analysts appeared first on WorldSilverNews.
Kitco News
(Kitco News) – By the time this newsletter will be published today, who knows where the S&P 500 and Dow will be, these are the times we are living in.
The post Coronavirus : blip or black swan? appeared first on WorldSilverNews.
Kitco News
(Kitco News) – A seismic event at AngloGold Ashanti’s Mponeng Mine, the world’s deepest gold mine, killed three miners yesterday.
The post Three miners killed after seismic event at world’s deepest gold mine appeared first on WorldSilverNews.
Kitco News
(Kitco News) – An explosion at Amplats smelter in South Africa is expected to knock nearly 1 million PGM ounces off its 2020 guidance and has sent platinum group metals prices into a tizzy.
The post Amplats’s force majeure rocks platinum group metals appeared first on WorldSilverNews.
Bloomberg/Elena Mazneva and Ranjeetha Pakiam/3-3-2020
“Investors are returning to gold as a store of value after the Federal Reserve’s emergency rate cut sparked a collapse in 10-year Treasury yields. . . ‘Gold rekindled its safe haven credentials yesterday after the Fed made the cut,’ said Ole Hansen, head of commodity strategy at Saxo Bank A/S. Gold benefits from both uncertainty and deeply negative real yields, he said.”
USAGOLD note: Gold is reacting much differently now than it has in the recent past when quite often it seemed to be moving to its own internal rhythm. Now it seems to be reacting to events like it has in times past – almost immediately and aggressively both up and down. Usually, as the saying goes, gold takes the stairs up and elevator down. This past week, it took the elevator up.
Image courtesy of Visual Capitalist
The Guardian/Kenneth Rogoff/3-3-2020
“It is too soon to predict the long-run arc of the coronavirus outbreak. But it is not too soon to recognise that the next global recession could be around the corner – and that it may look a lot different from those that began in 2001 and 2008.”
USAGOLD note: Rogoff raises the prospect of a 1970s-style inflation, as coronavirus shuts down supply lines – a very logical but overlooked possibility. Long before the virus was headlined across the globe, Alan Greenspan warned of a return to the stagflationary economy similar to the scenario Rogoff describes at the link above.
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Financial Times/Ian Goldin
“Edward Lorenz, father of chaos theory, showed that a butterfly flapping its wings over Brazil could cause a tornado in Texas. An intrinsic outcome of the growing integration and complexity of the global economy is that it too suffers from ‘a butterfly defect’”.
USAGOLD note: Goldin digs deeply into the dangers of globalization and the coronavirus as an example of a fractal event. He concludes that complex modern economic and social systems are “only as good as their weakest link.”
Image attribution: José Luis Llopis Fabra / CC BY-SA (https://creativecommons.org/licenses/by-sa/4.0)
Repost from 3-3-2020
Clive P. Maund
“To get an idea of how far the market could drop during this crash we must zoom out and look at longer-term charts. On the 3-year chart for the S&P500 index we see that late last year the market broke out upside from a bearish Broadening Formation and then ran up, but this breakout did not negate the bearish implications of the pattern – on the contrary, what often happens after such a breakout is that the market turns and crashes down through the pattern, which is what we are starting to see now. The index is already approaching its rising 200-day moving average and if it slices through that, and more seriously then drops through the support in the 3000 area, then we are likely to see even more downside acceleration with the market plunging vertically and cratering. Note, however, that we may first see a technical bounce from the support in the 3000 zone. Once the support in the 3000 zone fails, the index will target the red lower support trendline of the Broadening Formation, which if it gets there would obviously result in catastrophic losses.”
Repost from 3-1-2020
