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Bespoke Investing on Hold Money, Business and Economics, Investing in gold, Wall Street bear market
Gold investing outlook #35 . .
Related to the updates to Gold investing outlook #34 of 9.3.20 and 12.3.20, Pundits C pointed to 12 March gold futures falling $70.50 to $1571.50 or 2.4% on Comex. Later down 4.4% to $1,568.70 an ounce.
The U.S. Fed had announced a $2 trillion injection into short-term lending markets. It was also broadening its ongoing $60 billion-a-month purchases of T-bills to include longer-term bonds, adding more than $500 billion through three-month and one-month repo operations.
The Fed’s actions led the stock market to sharply pare its losses during the early session. At first, it caused Treasury yields to fall before they rose back up again. The benchmark 10-year Treasury yield rose from 0.69% yield to 0.87%. The Wall Street stocks closed deeply 9.5% lower. confirming it has entered a bear market.
Based on our records, on 13 March world gold price in the morning at $1579.94 the EP of 202.21 was 9.2% higher. The Malaysian Ringgit was 4.35 to the greenback.
Compared with our calling of $1566 (EP 207.56) it was 6.4% higher. In the Malaysian context gold price still shone albeit a very subdued gain. Nonetheless world gold price felled to $1551.40 at one point during the morning session and later settled around $1588 after trading in the $1558 to $1564 range.
World gold price closed $1529.87 with EP 213.95 still higher than our calling EP 207.56. Gold on 13 March lower price was $1516 per ounce.
Update on 24.3.20: Having liquidated our gold holdings just before and on 12.3.20 when gold price range was in between $1650 and $1680 we bought 1 gram on 24 March with our month end’s price trajectory of $1700 in view. We transacted in the Malaysian morning session when the price range was in between $1540 and $1567. Later in the day gold was mostly in between $1574 and $1606, at one point briefly breaching $1620 per ounce before settling around $1590.