Author: Gold News Club

Financial Times/Laurence Fletcher and Henry Sanderson/4-5-2020

“Some of the world’s largest hedge funds are raising their bets on gold, forecasting that central banks’ unprecedented responses to the coronavirus crisis will lead to devaluations of major currencies.”

USAGOLD note:   Chock full of information, this is the most important and comprehensive report we have seen in quite some time on hedge fund involvement in the gold market. We will summarize it by saying hedge fund involvement is deep, the players are prominent, and their commitments, given the rationale, are unlikely to unwind anytime soon.  Highly recommended ……

Image courtesy of Visual Capitalist

ScotiaBank/Metals Strategy/5-4-2020

“ON risk, Buffet has exited one the main causality sector (airlines), and together with bubbling geopolitical tensions, the temptation to sell in May and go away is even more appealing. We have argued tariffs and COVID-19 are cousins (of protectionism), thus Gold – usually a decent macro leader – is maintaining some COVID-19 premium, as markets begin to price in what trade wars failed to do (an escalating US-China blame game, real bordering up of nations and economies where friends/supplies chains are carefully chosen.)”

USAGOLD note:  Interesting summation from the banking firm that just recently gave up its long tenure in the London gold market ……

Cartoon courtesy of MichaelPRamirez.com