There’s an increasing level of fear both in the US and worldwide. The Fed was looking for the administration to get another fiscal package to help move things forward. Economic data has been relatively benign. In Europe there’s fear of another Covid wave. Peter Hug doesn’t expect the economy to shut down and he doesn’t expect the Congress to do anything either. So it’s highly doubtful that another stimulus package is coming. And the market has reacted accordingly. The Fang stock correction should have led to a rotation into other sectors. The resulting anxiety has led to a rush to cash. Peter went neutral/negative about a month ago. Two elements in the metals markets, one is raising cash by investors who had large profits and the fear trade is in full force and they’re moving into cash away from metals. Metals get hurt in a financial collapse until there’s governmental intervention. The market is hooked on continuous infusions of stimulus and pulling it back will cause nasty withdrawl pains. There’s no cohesiveness in government at all. Peter is sticking to his end of the year gold price estimate of $1911, but it could be low. We have not seen the high on gold yet in this wave.
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