“Historically, good economic data is negative for gold but in this case, real interest rates declined in the wake of the release, as rising…” Tyler Richey, co-editor at Sevens Report Research, told MarketWatch. Click here to read the full article.
Traders moved to “square their books into the end of the month,” said Tyler Richey, co-editor at Sevens Report Research.
Gold “bulls will want to see stable interest rates and renewed recovery in inflation expectations” in order for a rally in gold to continue…” and gave some traders an excuse to book profits into month end. Click here to read the full article.
According to Tyler Richie, co-editor at Sevens Report Research, “The report is weighing on optimism that the global economy would swiftly recover after being effectively closed for…” Click here to read the full article.
“The report is weighing on optimism that the global economy would swiftly recover after being effectively closed for weeks due to…” said Tyler Richey, co-editor at Sevens Report Research, adding that the news helped gold bounce off its earlier lows. Click here to read the full article.
There was a “follow through short-squeeze” in gold prices early Tuesday following Monday’s sharp gain, but that morning squeeze gave way to retracement “as gold became…” said Tyler Richey, co-editor at Sevens Report Research. Click here to read the full article.
What’s in Today’s Report:
- Market Multiple Price Chart: S&P 500
- A Quick Note on Coronavirus Data
- Can Gold Continue Higher? Yes, Here’s Why
International markets were mixed o/n and U.S. stock futures are little changed in choppy trade as investors continue to look for clarity on infection and death statistics related to COVID-19 while digesting a volatile start to the week.
Economically, Japanese Machine Orders rose 2.3% in Feb. vs. (E) -2.7, underscoring the resilience of the manufacturing sector as the coronavirus outbreak began to accelerate.
There are no economic reports due to be released today but the Treasury will hold a 30-Yr Bond Auction at 1:00 p.m. ET and then the Minutes of the most recent FOMC Meeting will be released at 2:00 p.m. ET.
With investors still primarily focused on any developments regarding the coronavirus pandemic, it is unlikely that those two catalysts will move markets today however if there are any surprises, we could see a reaction as volatility remains elevated amid an uncertain macro backdrop.
What’s in Today’s Report:
- Was That The Bottom? If Not, How Long Can The Bounce Last?
- Gold Update – Can The Rally Continue?
- March Flash PMIs: Not As Bad As Feared (Although Still Bad)
Futures were modestly higher all morning but have since turned slightly negative, as the White House and Senate agreed on the stimulus bill and it is expected to be signed into law in the next day or so.
The details of the stimulus bill met expectations so much of this was priced in yesterday, but importantly, the bill is large enough to provide a limited “bridge” to the economy.
Economic data was sparse and the only notable report was the German Ifo Survey, where Business Expectations missed estimates, falling to 79.7 vs. (E) 82.0.
Today there is one traditionally notable economic report, Durable Goods (E: -0.6%), but it’s a February report so the market will largely ignore it. We also get FHFA House Price Index (E: 0.4%) but that won’t move markets, either.
So, focus will remain on Washington to ensure there are no last minute hiccups on the stimulus bill, and on the virus count, where there are some potential rays of hope (more on that tomorrow).
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