CNN Business/Julia Horowitz
Wall Street braces for another rocky quarter
“In recent weeks, there’s been plenty of hand-wringing about the security of the massive rebound in financial markets, with the reopening of many economies looking precarious at best.
That’s for good reason. Though there’s still a few days to go, the S&P 500 could notch its best quarterly return in 50 years, Bank of America observed in a note to clients.
But there are signs Wall Street is hedging its bets heading into the third quarter, looking more closely for opportunities without assuming everything will keep going up.
See here: Nearly two in three asset managers think the long-term impacts of Covid-19 have not been sufficiently factored into stock markets, according to a recent survey conducted by Institutional Investor.”
Gold rises as virus concerns lift safe-haven bid
“Gold prices rose on Monday as worries over a surge in fresh COVID-19 infections globally dented investor optimism about a swift economic rebound and drove investors towards the safe-haven metal.
Spot gold was up 0.2% at $1,773.43 per ounce by 0259 GMT. Prices were $5.63 shy of a near eight-year high of $1,779.06, hit last week.
U.S. gold futures rose 0.1% to $1,781.60.
‘Certainly the safe-haven buying is coming through fairly strong, with the fresh outbreak of coronavirus in the U.S., in particular, really driving that investor appetite at the moment,’ said ANZ analyst Daniel Hynes.
California ordered some bars to close on Sunday, following similar moves in Texas and Florida, as cases nationwide soar to record levels each day. Washington state and the city of San Francisco have paused re-opening plans.
Relentless spread of the coronavirus intensified investor fears about a delay in global economic recovery and weighed on risk appetite, driving inflows into safe-haven assets.”
Yahoo Finance/Bloomberg/Ranjeetha Pakiam
Gold Edges Closer to $1,800 as Virus Cases Surpass 10 Million
“Gold futures edged closer toward $1,800 an ounce — a level last seen at the end of 2011 — as demand for haven assets surged amid concerns over rising coronavirus infections.
Bullion is heading for its best quarter since 2016 as deaths surpassed 500,000 worldwide and confirmed cases exceeded 10 million, according to Johns Hopkins University data. The increasing numbers are a chilling reminder that the deadliest pandemic of the modern era is stronger than ever.
The precious metal has rallied 17% this year as governments and central banks implemented stimulus measures to aid economies battered by the pandemic. Investors are increasingly turning to gold as a store of wealth, and banks including Goldman Sachs Group Inc. now forecast it’ll hit a record $2,000 an ounce in 12 months.”
Money & Markets/Tom Luongo
Gold Will Flourish in the Worst US Political Landscape in 160 Years
“The headlines earlier this week had gold hitting eight-year highs. Futures prices nearly topped $1,800 for the first time since the 2012 relief rally after the September 2011 peak.
The broad fundamentals for gold are lining up for a big rally into the first half of this decade (in fact, M&M Chief Investment Strategist Adam O’Dell says gold is going to $10,000).
The financial system is fundamentally broken. There are leaky pipes in the plumbing of markets all over the world.
Right now, central banks are doing their best to patch these leaks, but the outflow is just too great. And the stock market is still in a state of denial that the world we used to know is gone.”