Despite social distancing guidelines being extended through the end of April, stocks continue last week’s rebound, currently up around 2% for the day. Gold and silver are down 1.3% and 3.6% respectively today, as the US dollar rose nearly 1% and supply-chain concerns driving gold futures up have seemed to settle down.
Equities got slammed after consumer sentiment dropped to its lowest level since the 2008 financial crisis as COVID-19 continues to shutter economies around the world. Stocks have since recovered some of their losses after the House passed the $2 trillion stimulus which the President is expected to sign today, but are still trading down about 2.5%. Gold and silver are down $9.30 and $0.11 today, currently trading at $1,637.40 and $14.51 respectively.
Equities got a modest boost today after Congress was finally able to come to some consensus on corona virus aid which involves a $2 trillion stimulus package to help struggling businesses and individuals in wake of this unprecedented economic decline. Gold and silver have since rebounded somewhat from last week’s lows, trading at $1,627 and $14.55 respectively. However, supply concerns continue to drive premiums ups, even as prices rise.
Equities are poised to close in the green today for a much-needed respite as daily drops of 5%+ are becoming commonplace due to the uncertainty surrounding the future toll COVID-19 will have on the world. Silver plunged to an 11-year low this week, sending demand and premiums soaring. The gold to silver ration has completely collapsed and is currently around 121.
The WHO(World Health Organization) declared this corona virus a global pandemic today sending stocks crashing. The Dow is down 5.5%, and is now down 20% from recent highs, teetering on a bear market. The S&P and Nasdaq are down 4.3% and 5% respectively. Despite its safe-haven appeal, gold can’t seem to breakthrough as such drastic and sudden drops in equities keep investors scrambling for liquidity. Oil prices are down again today, adding to the downward pressure on other commodities such as gold.
Equities can’t catch a break as markets, still reeling from corona virus fears, continue to get hammered after OPEC and Russia were unable to come to an agreement on production limits, sparking a price war and causing oil prices to plummet. The Dow and S&P both plunged over 7% in the first minutes of trading, triggering a 15-minute halt in trading to prevent a free fall sell off. Gold ticked above $1700 for the first time in 7.5 years but has since retreated as investors ditch stocks and commodities for bonds. The 30-year and 10-year treasury yields fell below 1% and 0.4% respectively today to record lows, dropping the whole yield curve under 1% for the first time ever.
Today’s robust jobs data meant little to investors as the potential economic effects of the corona virus continue to dominate market activity. Equities shrugged off a decrease in unemployment to 3.5% and the addition of 273,000 jobs in February to continue their current rout. The Dow is down 600 points while the S&P and Nasdaq are each down about 2.6%. Gold ticked above $1690 in overnight trading before retreating to yesterday’s level, currently trading at $1665.
Gold is trading at $1,643, jumping over 2.5% since yesterday’s emergency 50 bp Fed rate cut. Equities, which reacted adversely to the Fed cut and fell sharply Tuesday, have since recovered some of their losses with the Dow up 2% and the S&P 500 and Nasdaq each up over 1.5%. The initial fall of stocks brought into question the effectiveness of easing to protect against supply chain disruptions caused by this corona virus. Today, it seems to be helping, however.
Stocks got a boost today coming off one of their worst weeks in recent history and are poised to snap a seven-day losing streak with the Dow, Nasdaq, and S&P up significantly. Equities still have a long way to go before they reach levels seen before last week, but a positive trading session today shows at least some confidence remains among investors. Gold is up $25.00, currently trading at $1591, after breaking $1,600 earlier in the day.
Except for Monday, precious metals got slammed this week as fears of a pandemic continue to grow as corona virus cases outside China increase at an alarming rate. Gold had a $100 swing this week and is poised to finish down nearly 4% while silver is currently down over 10% from last Friday’s settlement price. Equities are on pace for their worst week since the 2008 financial crisis and are currently in correction territory. The Dow dropped 1190 points yesterday, its largest single day point drop, and is down over 3700 points for the week. Treasury yields hit record lows today as the stock sell-off continues.