Gold Falls 4% As Futures Sold Aggressively While Buying of Coins and Bars Surges

Gold fell for a few days after the Lehman collapse but ended 2008 higher by 5.6% and
it continued its gains in 2009, 2010 and in the sovereign debt crisis of 2011 and 2012


◆ Stock markets around the world collapsed yesterday as market panic led to massive sell offs of over 10% on U.S. markets, the worst crash since October 1987 and European stocks had the largest falls seen since 1940.

◆ Gold started the day well and only started falling at 1130 GMT and ended the day 4% lower; the sell off was once again solely a futures market phenomenon as government mints, refineries and gold bullion brokers around the world including GoldCore, saw very significant demand for coins and bars – and very little selling.

◆ Margin call selling is being blamed for this latest gold futures sell off but given the evidence and convictions regarding gold manipulation by banks in recent years, it would be naive to rule out the possibility of banks attempting to push gold lower either for profit motives or on behalf of officialdom in order to calm markets. If gold had been allowed to surge 10% on the day in a free market, then it would likely have unleashed a ‘gold rush’ the like of which the modern world has never seen.

◆ Gold remains up nearly 5% year-to-date and over 23% over a twelve month period, while most stock markets are now down more than 20% in lees than a month. Bitcoin collapsed nearly 50% yesterday, further underlining that it is a highly volatile and risky and speculative crypto asset rather than a safe haven asset.

◆ Stocks have bounced higher today but it will likely be one of many “dead cat bounces.” The scale of yesterday’s collapse was breath taking. The FTSE 100 closed down 9.8%, the DAX 30 plunged 12.2% the CAC 40 tumbled 12.3%. Dublin’s ISEQ index collapsed another 10% and in Milan the Italian stock market collapsed 17% in one day.

◆ Prudent investors will continue to diversify into gold on weakness as the devastating financial and economic impact of the pandemic on already massively indebted companies and governments is realised.

◆ Corporate and government bonds are also very vulnerable and investors still have the opportunity to re-balance portfolios out of risk assets including bonds and own gold.

Market Performance YTD 2020 (Source: Finviz)

Source: Finviz


NEWS & COMMENTARY

Palladium tumbles 28%, gold over 4% in virus-led rout

Fed to Inject $1.5 Trillion in Bid to Prevent ‘Unusual Disruptions’ in Markets

U.S. carrying out retaliatory strikes after deadly Iran attack: sources

Markets suffer record meltdown as global coronavirus alarm grows

Dow plunges 10% amid coronavirus fears for its worst day since the 1987 market crash

Why gold’s plunge proves it’s a safe-haven asset



GOLD PRICES (USD, GBP & EUR – AM/ PM LBMA Fix)

12-Mar-20 1636.65 1570.70, 1284.28 1246.35 & 1457.11 1410.96
11-Mar-20 1662.50 1653.75, 1284.78 1279.01 & 1468.65 1462.25
10-Mar-20 1657.40 1655.70, 1269.40 1273.23 & 1460.00 1455.86
09-Mar-20 1676.60 1672.50, 1280.75 1272.94 & 1469.04 1462.10
06-Mar-20 1687.00 1683.65, 1296.80 1290.85 & 1490.13 1484.31
05-Mar-20 1647.45 1659.60, 1274.47 1284.70 & 1474.63 1482.69
04-Mar-20 1644.80 1641.85, 1286.73 1281.63 & 1475.06 1477.83
03-Mar-20 1599.05 1615.50, 1249.98 1260.25 & 1438.03 1446.03
02-Mar-20 1609.70 1599.65, 1258.79 1251.41 & 1451.47 1437.29
28-Feb-20 1626.35 1609.85, 1262.37 1254.88 & 1474.61 1468.18


Financial Contagion – What Are The Risks?



Receive Our Award Winning Market Updates In Your Inbox – Sign Up Here



Mark O'Byrne

Also on news-goldcore-com

Videos

When will Silver Break Out? Is Triple Digit Silver Still on the Cards?

Is Gold Still in a Bull Market?

Gold Mining Operation Supply Issues Points to a Sustained Bull Market for Gold

Blog posts

Quantitative Easing: A Boon or Curse?

Central banks’ massive Quantitative Easing (QE) programs have come under scrutiny many times since the central banks fired up the printing press and began quantitative easing programs en masse after the 2008-09 Great Financial Crisis. However, the increase in central bank assets due to quantitative easing programs during the crisis pale in comparison to the […]

READ MORE

The Fed’s Inflation Gamble Continues

The fed’s inflation gamble continues… Are central banks trapped? Last week’s Fed statement and the press conference that followed proved to be the start of a US$90 (4.8%) decline in the gold price. Fed on Economic Recovery The Summary of Economic Projections (known as the dot-plots) released with the statement showed that committee members changed […]

READ MORE

Gold to Gain Momentum in 2021 – Here’s Why

Big ideas are like supertankers filled with oil; both take forever to get moving. The move from one state to another is a boring form of entertainment. However, each is impossible to stop once the momentum has built. Substantial progress can be seen over a period of time and one can notice and understand the […]

READ MORE

Featured

Gold posts its first loss in 11 sessions as Trump’s speech ebbs Iran war worries

READ MORE

China and Russia Are Buying Gold and They Don’t Care How Much It Costs

READ MORE

Gold Is Overvalued in Short-Term, Says Goldcore’s O’Byrne

READ MORE
Newsletter
Category
Archives
Popular

No posts available

Videos

When will Silver Break Out? Is Triple Digit Silver Still on the Cards?

Is Gold Still in a Bull Market?

Gold Mining Operation Supply Issues Points to a Sustained Bull Market for Gold

Blog posts

Quantitative Easing: A Boon or Curse?

Central banks’ massive Quantitative Easing (QE) programs have come under scrutiny many times since the central banks fired up the printing press and began quantitative easing programs en masse after the 2008-09 Great Financial Crisis. However, the increase in central bank assets due to quantitative easing programs during the crisis pale in comparison to the […]

READ MORE

The Fed’s Inflation Gamble Continues

The fed’s inflation gamble continues… Are central banks trapped? Last week’s Fed statement and the press conference that followed proved to be the start of a US$90 (4.8%) decline in the gold price. Fed on Economic Recovery The Summary of Economic Projections (known as the dot-plots) released with the statement showed that committee members changed […]

READ MORE

Gold to Gain Momentum in 2021 – Here’s Why

Big ideas are like supertankers filled with oil; both take forever to get moving. The move from one state to another is a boring form of entertainment. However, each is impossible to stop once the momentum has built. Substantial progress can be seen over a period of time and one can notice and understand the […]

READ MORE

Featured

Gold posts its first loss in 11 sessions as Trump’s speech ebbs Iran war worries

READ MORE

China and Russia Are Buying Gold and They Don’t Care How Much It Costs

READ MORE

Gold Is Overvalued in Short-Term, Says Goldcore’s O’Byrne

READ MORE