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Gold To Be Dragged Lower As Philippine Peso Trading Suspended For Now

Published 03/17/2020, 02:10 AM
Updated 07/09/2023, 06:31 AM
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Markets: Circuit Breaker To Circuit Breaker

S&P 500 Futures reach a limit-up band of 2,498.

According to Bloomberg, the most bizarre thing about these express elevator rides as we move from circuit breaker to circuit breaker is that the velocity of the market moves is quantifiably attributable to a black hole void of volume or liquidity making these elevator rides oh so much quicker. 
 
For those of us that use the SPX as our main signpost, it's back to Netflix (NASDAQ:NFLX) until the London and U.S. sessions.

Philippine Peso Trading On Hold

To defend a possible run on the PHP currency, the Philippines suspends FX trading and says will resume on March 18, Reuters reports. This is no surprise given the dash for dollars unfolding across Asia EM and with the PSE shuttered

Gold Lower In Near-Term 

Now with a chance to check the data form overnight, Platinum and Silver were the first to go into freefall, and the rest followed suit. My colleagues at a tier-one gold trading bank informed me he saw a "similar selling scale as the GFC and the price action was wild."
 
Palladium extended losses, sliding to 40%, including a drop of 20% intraday overnight with industrial demand from auto markets looking frail in a COVID-19 lockdown environment.
 
Gold's intraday range was eyewatering + $120, and it hasn't been a safety play hedge in this meltdown. Expect gold to be dragged lower in the near term should equities continue making new lows. Over the long haul, however, gold would be supported amid low-interest rates and QE.

I am wimping out, hedging my call on this one. I normally have a good read on gold from both a quantifiable and fundamental perspective, so I know things are in a bad place. 

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