Gold: Time To Load Up The Truck Again
“The recovery of unemployment was faster than expected, which is very positive for the economy, decreasing the risk of a global depression. The surprising shift from jobs lost to jobs added shows potentially that this demand that was eliminated could come back into the economy with a vengeance. The government’s stimulus has been at historic levels, which saved the markets. The debt levels are now completely out of whack. Although it was deflationary, this contraction decreased values way down, but the turnaround could be faster than anticipated. If we get demand back into the economy faster than expected, it could lead to shortages and inflation and force interest higher. The world is going to have to pay for this disruption caused by COVID-19.
Gold, silver prices see corrective rebounds from recent pressure
“Gold and silver prices are higher in early U.S. trading Monday, on upside corrections from recent selling pressure that has produced near-term chart damage in the gold market. A shaky U.S. dollar on the foreign exchange market and higher crude oil prices are bullish “outside market” forces working in favor of the metals market bulls to start the trading week. Still bearish for the safe-haven metals is upbeat trader and investor risk appetite recently that has seen money flowing into equities markets. August gold futures were last up $13.50 an ounce at $1,696.40. July Comex silver prices were last up $0.411 at $17.89 an ounce.
Gold prices head higher after Friday fall as investors bet on continued central-bank stimulus
“Gold prices on Monday rose off a two-month low as investors wagered that stimulus from central banks will remain in place for the foreseeable future, bolstering the case for bullion, despite a powerful rebound from equities off their lows in the U.S.
“The global economic recovery will still require further aid and gold prices should still be supported over the medium-term,” wrote Edward Moya, senior market analyst at brokerage Oanda, in a daily research note.
CNBC/Mathew J. Belvedere
Mohamed El-Erian: I’m ‘uncomfortable’ betting on continued ‘huge recovery’ in the stock market
“Mohamed El-Erian, who in early March correctly called a coronavirus-driven bear market, told CNBC on Monday he’s reluctant to buy the latest stock rally.
“For me personally, it’s an uncomfortable bet to continue to bet on a huge recovery,” the chief economic advisor at Allianz said on “Squawk Box.” “I don’t like doing this. But I respect and admire those who can.”