Week Ahead Commodity Report: Gold, Silver & Crude Oil Price Forecast: 16 - 20 March 2020 (Video)
|2020 is certainly shaping up to go down in history as one of the most luctrative years ever for commodity traders.
Global stock markets fell sharply on Monday – posting their biggest one day sell-off since the “Black Monday” market crash in 1987 after the Federal Reserve embarked on a massive monetary stimulus campaign to curb slower economic growth amid the Coronavirus outbreak.
The Fed slashed interest rates back to near zero, restarted bond buying and joined with other central banks in a co-ordinated economic response.
The economic crisis caused by the Coronavirus is prompting central banks to take a much more aggressive stance on monetary stimulus, quantitative easing and rate cuts – than they did during the 2008 global financial crisis.
We expect once the dust settles – precious metals will inevitability regain their title as the best performing asset class as deficits and balance sheets grow out of control.
The most importantly indictor, you need to keep a close eye for market direction is the three major U.S. stock indices; NASDAQ, Dow Jones and S&P 500. Right now, all of these are very tightly correlated to the price action in precious metals.
Every time the major stock indices sell-off, we are seeing traders exit positions across the precious metals to offset losses. Whilst on the flipside, every time the major stock indices catch a bid – the precious metals are surging in tandem. This is presenting savvy traders with incredibly lucrative day-to-day trading opportunities to generate phenomenal gains.
The fundamental backdrop for precious metals remains extremely bullish in the long-term. In this current cycle its best to stay nimble, capitalize on every big move and routinely book gains.
Where Are Prices Heading Next?
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