Everything moving higher, look as the spread between gold futures and spot

March 24, 2020

Ed Moya, Senior Market Analyst at OANDA joins me for a broad look at the markets and gold. A nice recovery day across the board possibly being driven by optimism that governments around the world are going to some funding packages out soon.

As for gold there is a wide spread between spot and the futures markets. Ed and I discuss what this is telling us about the market. No matter how you look at it the precious metals are off to a historic start to this week.

Click here to visit the OANDA website and follow along with what Ed is covering.

    Mar 24, 2020 24:32 AM

    Gold is heading for its 6th straight higher quarterly close and 4th straight quarterly close above its quarterly Bollinger Bands:

      Mar 24, 2020 24:34 AM

      The chart above, btw, depicts the start of the next leg within a giant bull market. The entire bear market was merely a countertrend move.

        Mar 24, 2020 24:45 AM

        WOW! A picture really is worth a 1000 words. Thanks.

          Mar 24, 2020 24:01 AM

          This very bullish big picture is part of the reason for my confusing ramblings about the fractal analysis on the 16th and 14th. We have huge patterns/structures in play and that is the real source of all this volatility. The swings aren’t so huge when compared to the patterns that are really dominant right now.

          Like I said on the 16th:

          We will know that I am wrong about all this if the miners end up languishing from here on a monthly scale rather than delivering obvious progress.

          Looks like a giant shakeout to me:

          So far, so good.

            Mar 24, 2020 24:43 PM

            Thanks for the charts Matthew! Good stuff.

        Mar 24, 2020 24:39 AM

        Matthew……….Ditto on the “within a giant bull market”………..even I can read a Giant Cup and handle……..LOL

        Mar 24, 2020 24:42 AM

        It will look like a double top to some people!

          Mar 24, 2020 24:57 AM

          Thank goodness for that. The bull needs food.

    Mar 24, 2020 24:39 AM

    This is a quote that appeared in the ” Broad Street Gossip” column on October 16th, 1929, “that business is now too big and diversified, and the country to rich, to be influenced by stock market fluctuations.” TBTF, they had it then and they have it now, only now it is a much bigger joke! LOL! DT

      Mar 24, 2020 24:40 AM

      Why do I feel like I have been robbed in a dark alley.

        Mar 24, 2020 24:49 AM

        The TBTF scam is all about robbing all of society in broad daylight.

          Mar 24, 2020 24:14 AM

          Good point!

    Mar 24, 2020 24:59 AM

    Something is wrong, there is green on my screen.

    Mar 24, 2020 24:07 PM

    Hi Matt,

    Thanks for the chart!

    On March 22, 2020 at 10:38 am,
    John Kruschke says:
    I always have to play Devil’s advocate, if I don’t who will?
    Glenfidish your eights points are great, but does this suggest that the over all Economy and investing climate does not have has anything to with the Company’s ability to perform from the stock’s perspective?
    How about sentiment indicators and bullish percent.
    Last year I rode a non mining company from.01 to .90 in two weeks. Did the fundamentals support this?
    Of course not.
    Thats like suggesting JPM’s hoard in Silver has nothing to do with the price of the metal in the futures.
    Reply to this comment

    I will try my best to help you understand what my overall objective is via those 8 points I referenced. My reference points are based on pure fundamentals of what I’m currently invested in. So for me the metals sector fundamentally couldn’t be better as I’m on the side of inflation/money printing will eventually send gold higher as well as fear of government. It’s plain and simple for me. Keep printing and keep rates low will set gold up. The setup is there thus I follow my 8 points. What you mentioned about bullish indicator etc is also a good tool. However the way you invest may be different the. Invest. Kudos to you if you made money in two months. I don’t play those odds and if they work for you great. I simply buy when low extreme and don’t have a timeline just price objective when I feel to get out.

    Mar 24, 2020 24:49 PM

    It might be considered that this move by gold is a classic “buy the rumor, sell the fact”. Everyone is anticipating the humongous stimulus by the government. We’ll know by next week.

      Mar 24, 2020 24:45 PM

      Hey doc,

      Whatever the rumour or the fact, the end result is gold is headed north of 2000. I think we can all agree on this. The only issues is where do you buy, and I’m quite comfortable with the prices we got a few days ago. If it goes lower then better. But what if you are not in? Or did not purchase shares. Will some be caught chasing?

        Mar 24, 2020 24:56 PM

        Glen, couldn’t agree more—-added again to USAS. Will purchase more—-getting ready to add significantly to HL. I think April may be one of the best months to purchase since it wouldn’t surprise me if we get a little move back on some of the PM stocks again when everyone piles back into risk on assets now that they think everything is “hunky dory” again with the bailout package—they may be sadly disappointed later. April may be a tough month again for the Pms—if it is, I will be the most aggressive I’ve been in a awhile. A lot of these stocks seem to be settling into another trading range for awhile—at least that’s what the monthly charts seem to be intimating. I love this market right now since there are a lot of good stocks hammered.

    Mar 24, 2020 24:38 PM

    BB, where are you? —-we had conversations in the past about SLB and HAL and I mentioned that it appeared they were moving lower. Now’s the time to purchase—have been the last 2 weeks and they’re starting to break out. I think they will run for a short period of time and then in all likelihood fall back again.