Gold / Silver Archives - Page 26 of 36

Math and history do not lie. If the market stabilizes it is because it is pricing in hyperinflation, not a sustainable recovery.

You will see Q1 and Q2 earnings be horrific across the board in tech/retail.

The flow back to commodities is on!

Gold tops the March high in reversal to the upside

13-Apr-20 10:52 pm

Anirudh Sethi

Gold climbs on the day to cycle

Gold is at the highest levels since 2012.

It has edged above the March high of $1702 to the best levels in 8 years in a $10- gain in the past few minutes. It was as low as $1676 earlier today.

I see a big inverted head-and-shoulders pattern here with a target of $2000.

Gold futures/spot spread narrows but questions remain

13-Apr-20 07:45 pm

Anirudh Sethi

Supply chain issues a part of the story

There’s a risk-free arbitrage available in buying gold and selling it in the futures market but few are taking advantage of it.

You could buy 100 ounces of gold at spot and sell on futures contract and pocket $6400 in June.

Spot trades at a $44 discount to the futures market and the issue appears to be in supply chains and refining. Spot is at $1691 and futures are at $1734 after hitting $1753 to mark a multi-year high.

This chart shows the relationship over time.

The only reason you wouldn’t do the trade is because you’re worried you couldn’t have 100 ounces of deliverable gold in June.

The reason is that refineries are off-line because of staff coronavirus worries.

For traders, the question is how the spread will narrow — with spot rising to the futures prices or futures coming down to spot. In the past week, the answer has been futures sliding but it bears close watching.