by Richard (Rick) Mills
On Monday Wall Street pared back losses from last week’s sell-off, the worst since 2008, but it was only the promise of lowering interest rates, the return of the “punch bowl” hearkening back to recession-era stimulus, that has temporarily ameliorated coronavirus fears and its growing threat to the global economy.
Arguably, more economic dangers than can be solved by a simple rate cut lie ahead, and gold is reacting as normal, in times of financial turmoil, by going up.
The precious metal recovered from Friday’s drubbing when it lost about $87, by climbing to within shouting distance of $1,600/oz. At the close of trading in New York spot gold was at $1,589.10 and Comex gold futures were pushing $28 higher than Friday’s close, to $1,594.80. The spot price continued to rise on the 24-hour chart and was at $1,598.30, as of this writing.