Gold Market Wire
News, analysis and commentary for gold traders and investors
Gold Market Update
Gold Market Jumps on US Jobless Claims
April 9, 2020 - (Gold Market Wire) - Another week, another 6.6 million Americans file for unemployment. Gold is ripping higher on the back of the figure.
It's no longer just about the amount of money printing, the expanding government budget to meet the ever growing bailout list, and all the other facilities that are being opened to flood the world with liquidity. This is now just blind fear raging through the market. Gold feeds on fear and we have plenty of it.
We've had an initial spike up, that took us just over $1685, but the market is settling down a bit now.
We're not inclined to chase the market higher here. While the price has reacted to the news as expected, its hardly ever a good move to chase strength in Gold. Aside from that the adage of 'buy the rumour/sell the news' still holds true.
One concern for Gold is, as the proverbial kitchen sink gets thrown at the economy (now the IMF is getting involved - - talk about the kiss of death!) the chances of another stock market sell off - aka the "second leg down" - could be growing. Gold did well in the last one, relative to the equity markets, but it still took it on the chin. Something to remember.
Our scalp got in one last shot, and yes, it would have been nice to be able to hold it through the spike - but hindsight is always 20/20. We still took some profit from the market in the early hours. Last trading days of the week have been manic recently - as has everything, and it could be that this time is different, and people won't flatten out their books and will, instead, take home length, but for our trading position, we will maintain the discipline. We do, after all, retain our core position, which should never be touched or risked, as it is our insurance, and an increasingly importantlife line in these truly troubling times.
Let's see how equities finish the day. It does seem like the stock market hasn't had its last down move from this crisis. Capitulation hasn't been total, yet. In light of that potential move - we go home flat after a profitable week.