Gold Futures Market News and Commentary
Apr Comex gold (GCJ20) on Monday closed down -3.0 (-0.18%), and May silver (SIK20) closed down -0.402 (-2.77%).
Precious metals prices on Monday closed lower due to a stronger dollar and on concern the U.S. economy will be shut down longer than anticipated, which may require more Fed monetary stimulus. Gold prices also saw support Monday from China's -20 bp interest rate cut.
President Trump on Sunday said that Americans will need to practice "social distancing" until at least April 30. That may force the need for more monetary stimulus from the Fed, which would be positive for gold. However, the extended lockdown will curtail economic activity and is bearish for silver due to reduced industrial metals demand. Globally, confirmed cases of the coronavirus have risen above 769,000 with deaths exceeding 36,000.
Gold prices were supported by the action by the Chinese central bank (PBOC) on Monday to cut the interest rate on 7-day reverse repurchase agreements by -20... Read more