JPMorgan says sell gold volatility on ‘non-conflicting’ Trump health reports
As if it’s the only factor instead of the non-factor it is (for all but the most flitty of day traders) JPM (by way of fn) enthralls you with this…
“These spot moves reflect that the market initially jumped on the uncertainty from Trump’s diagnosis but faded as the news was further digested,” the global commodities research analysts wrote. “The sustained elevated vols indicate that the market is still pricing a small possibility of any further unfavourable health reports, which would likely bring another spike in gold spot.”
Sorry guys. The gold price entered a bull market in 2019 when it crossed the 1378 resistance point. That resistance is not visible on this daily chart but I made a big enough deal about it long before it was taken out. Maybe you have a visual on it memorized.
The JPM boyz (and girlz?) want you to obsess on COVID-19 and its effects on the economy as the reason the herds ran to gold. But the Trump economy was already slowly decelerating in 2019 and that is the reason gold entered a bull market. Secondarily, the panic policy of the Fed and politicians provided after burners on the bull case.
Gold spiked by 25.8% compared to this time last year, an increase that started in late 2018 and was fuelled by the Covid-19 pandemic. In the last month, however, the price has dropped 1.36%.
The price of the commodity crashed in March alongside stocks but then regained, as investors looked for a safe haven. Some analysts called it a modern gold rush.
The note also said that the potential for a contested US election – something Trump has alluded to several times – would add “further upside risk for gold”.
Never mind Trump/Biden, Republican/Democrat. Gold needed a break and it is getting it. Which ever party takes office will likely continue to promote currency compromising monetary and fiscal policy and that is what gold is for, not a scary virus or Trump’s health. The goofy media need to write something every day in order to harvest your eyeballs and select parts of your mind.
If the economy recovers amid the inflationary operations gold should be okay, but could be an under performer. If the economy chronically flounders and they keep spraying the inflation at it gold should out perform. I am leaning toward the former for 2021. But a lot is still up in the air. One thing I do know however, is that Trump’s health means exactly nothing to the process beyond a day or two.
Goofy stuff JPM and fn.
For “best of breed” top down analysis of all major markets, subscribe to NFTRH Premium, which includes an in-depth weekly market report, detailed interim market updates and NFTRH+ dynamic updates and chart/trade setup ideas. You can also keep up to date with actionable public content at NFTRH.com by using the email form on the right sidebar. Follow via Twitter @NFTRHgt.
