Precious metals jump as USD dives
July 27.2020
–Gold and silver are exploding with the former at an all-time high $1940. Silver is above $24/oz; it’s all-time high was near $50 in April 2011. Bitcoin has vaulted above 10,000. The dollar index (DXY) is at a new low for the year sub-94; hasn’t seen this level since 2018. Stocks also staging a rebound from Friday’s close. Bonds are lower of course, right? No, that would be wrong. Bonds are edging close to new low yields, with tens at just 57 bps, down 1.7 from Friday. The low in March is 54.3.
–Big earnings reports this week: Visa, Tuesday post-close. Shopify Wednesday, pre-open, FB Wed-post, P&G Thursday-pre, AAPL, AMZN, GOOGL all Thursday post. Wednesday also features the FOMC meeting, with Thursday’s Q2 GDP expected -35% and Friday’s PCE deflator yoy expected +0.2.
–The White House and Senate republicans have agreed to a package at 70% of wages to replace the $600/week, to be unveiled later today. Pelosi says Congress won’t leave for August break until a deal is resolved. Chicago violent crimes and homicides are up 75 to 78% year over year. The same move in silver would put it over $28/oz rather than the current 24.
