FORBES/Frank Holmes

You Can’t Just Print More Gold

“’I think there is a strong likelihood we will need another bill.’

That’s according to Treasury Secretary Steven Mnuchin, who supports additional fiscal stimulus to combat the economic impact of the novel coronavirus—within reason.

The secretary’s statement comes after the House passed a record-shattering $3 trillion relief package, though leaders in the Senate have said they will not put it up for a vote. Senate Majority Leader Mitch McConnell has made it clear that the next coronavirus bill “cannot exceed $1 trillion,” according to reporting by Axios.

Even so, the U.S. government’s response is already massive, dwarfing anything that’s come before it.”

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KITCO/Jim Wyckoff

Gold prices lower as investor risk appetite rising this week

24 hour spot gold“Gold prices are trading lower again and back below $1,700.00 in early U.S. trading Wednesday, amid keener trader/investor risk appetite in the marketplace at mid-week. The recent safe-haven bids that had supported gold and silver markets has evaporated, for the moment. June gold futures were last down $13.20 an ounce at $1,692.30. July Comex silver prices were last down $0.16 at $17.435 an ounce.

Global stock markets were mostly higher in overnight trading. U.S. stock indexes are pointed toward solidly higher openings when the New York day session begins. Traders and investors remain upbeat at mid-week. After two months or more of being mostly quarantined the citizens of major industrialized countries are eager to get back to their pre-Covid-19 ways of life and are seeing light at the end of the tunnel. The global stock markets are trading like they expect the world’s consumers to get back to old spending habits sooner rather than later. Still, tens of millions of workers in the major global economies have been idled by the pandemic-induced closure of businesses. A significant number of lost jobs are gone for good.”

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CNBC/Chloe Taylor

Coronavirus is accelerating a ‘capital war’ between China and the US, investor warns

US-China capital war“The coronavirus crisis will accelerate a capital, trade and technology war between the world’s two largest economies, one investor has warned.

Speaking to CNBC’s “Squawk Box Europe” on Tuesday, Michael Howell, CEO of Crossborder Capital, warned that the preliminary trade deal between the U.S. and China was under threat, and there could even be a new battleground: investing capital.

“I think the real tension oncoming is not just trade wars but capital wars — we’re in a world where capital wars matter,” he said, noting that there was “an awful lot of liquidity” being poured into markets amid the coronavirus crisis.

Governments and central banks around the world have rolled out unprecedented stimulus packages in an effort to curb the economic shock from the pandemic, with President Donald Trump in March approving a historic $2 trillion coronavirus relief bill.”

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Gold falls 1% as risk appetite firms on recovery optimism

gold bars and gold coins“Gold fell over 1% on Tuesday as major economies further eased coronavirus-linked restrictions, fueling hopes for economic recovery and bolstering risk appetite.

Spot gold slipped 1.1% to $1,710.95 per ounce, having earlier hit a low since May 13 at $1,708.47. U.S. gold futures settled down 1.7% at $1,705.60.

“There is a risk-on tone in the market, driving the reversal of (gold’s) safe-haven flows,” said Daniel Ghali, commodity strategist at TD Securities.

U.S. stocks surged as investors grew optimistic about business restarts and a potential coronavirus vaccine.

Spain urged foreign tourists to return from July, while Britain will reopen thousands of shopping centres next month. U.S. states were also gradually easing restrictions.

“A breakdown below $1,700 could crack open the doors towards $1,680 (for gold),” said FXTM analyst Lukman Otunuga. Nevertheless, the downside is likely to be cushioned by trade woes, disappointing economic data and growth fears.”

White House economic adviser Larry Kudlow said President Donald Trump is so “miffed” with Beijing over the novel coronavirus and other matters that the trade deal is not as important to him as it once was.”

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