March 04, 2020

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.