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Goldman Sachs has a new forecast for blowing gold

A weaker day for stocks is looming on Tuesday as optimism about U.S. stimulus progress and vaccine news begins to fade, and attention is drawn to the start of a two-day Federal Reserve meeting.

The asset that stole Monday’s show, of course, was the GCQ20 gold,
which rose to $ 1,931 an ounce, the highest settlement in history. This gathers the crowd expecting $ 2,000 an ounce soon, and takes us to our call for the day from Goldman Sachs, which has dropped its own $ 2,000 forecast and says we will see $ 2,300 an ounce in the next 1

2 months.

The bank also raised its silver forecasts to $ 30 from $ 22 an ounce.

Driven by “a potential shift in the US Fed to inflation bias amid growing geopolitical tensions, heightened domestic political and social insecurity in the US and a growing second wave of COVID-19-related infections,” gold’s recent jump to new highs has outpaced gains. real rates and other alternatives to the dollar, said a team of analysts led by Jeffrey Curry.

“Combined with the record level of US government debt, real concerns about the longevity of the US dollar as a reserve currency have begun to emerge,” the team said.

One of Currie’s and the team’s points is that hedging against inflation as commodities and stocks is probably much cheaper now than it might be in the future, when inflation may start to show. The current deposit – the devaluation of currencies – and the accumulation of debt “sow the seeds for future inflationary risks, even though inflationary risks remain low today”.

Gold rose about 7% in the last month against a 3.7% decline for the ICE US Dollar Index DXY,
+ 0.22%,,
However, gold seems to have stopped flowing on Tuesday as the dollar rose.

Commerzbank analysts warn that record high gold prices will outweigh important physical demand for some time, particularly from Asia, with China reporting a 38% drop in consumption in the first half of this year. “So a lot will depend on whether Western investors remain willing to buy large amounts of gold even at current prices,” said analyst Carsten Fritsch.

However, Goldman’s Currie is not so concerned, as he said that currencies in emerging markets are beginning to see ease in the pressure and growth is beginning to look for the region. He sees that these buyers will be ready to intervene when prices stabilize and developed market buyers disappear.

The market

Dow YM00,
S&P ES00,
and Nasdaq NQ00,
futures are declining as European stocks SXXP,
also declined as Asian stocks advanced.

The diagram

Real-time labor statistics from Arizona State University and the University of Virginia Commonwealth (thanks to @johnauthors) show that pandemic unemployment has hit those without higher education much harder than those with:

See more of this data here.

The buzzing

Profit news weighs 3M MMM shares,
+ 2.12%
and lifting those of the Pifzer PFE pharmaceutical group,
while fast food giant McDonald’s MCD,
+ 1.27%
reduces its results. Biotech Amgen AMGN,
+ 2.28%,,
credit card company Visa V,
+ 0.90%,,
Starbucks SBUX coffee chain,
+ 0.89%
and AMD AMD chip group,
come after closing.

Outside the Fed meeting, the national housing price index of Case and Schiller and consumer confidence are forthcoming.

Republicans unveiled their latest COVID-19 stimulus package on Monday, but enough horse trade remains to be done before an agreement is reached with Democrats.

The data continues to show that cases in the United States may be just beginning to plateau in some of the most affected southern and southwestern states. But in some parts of Europe, such as Spain and Belgium and Asia, the cases are starting to rise again.

The tweet
Random readings

The former Malaysian leader was found guilty of looting the state investment fund 1MDB.

Kostko: Where your favorite cake parties go to die.

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