It seems highly probable that North America, as well as globally that new cases of the virus will begin to diminish day by day, week by week. Globally the data suggests that the world has hit the peak of new cases of Covid – 19.

After trading higher for six of the last seven trading days, gold futures closed sharply lower on the day. After trading to a low today of $1715.30, gold recovered approximately 1/3 of today’s drawdown and is currently fixed at $1726.70 (-1.45%), ending up with a loss $25.40.

The hard truth remains, economic stimulus continues to be needed as both the Federal Reserve through their monetary policy, and the U.S. Treasury through fiscal policies has ballooned, and more stimulus will likely will be needed.

Both Treasury Secretary Stephen Mnuchin, and Federal Reserve Chairman Jerome Powell spoke to the Senate Banking Committee today. The primary purpose of the meeting was for the Senate Banking Committee to get the latest evaluation of the global pandemic that has greatly affected the United States economy.

If not for dollar weakness today’s selloff in gold futures would have been much more severe. The dollar index is currently down approximately 0.80%, and fixed at 99.62. As of 5:08 PM EST Gold futures basis the most active June contract is currently down $22.20, and fixed at $1734.10.

It was inevitable. The global pandemic which is now in its third month has had a devastating effect on economies worldwide. The commonality is that all major countries have experienced economic contraction. The variable between some countries is how they are experiencing much harsher economic contractions than others.

In Last few weeks we have identified a simple Western technical indicator known as a pennant formation, and commonly referred to as a compression triangle. It is called a compression triangle because price ranges as well as the highs and the lows of a period of time will begin to contract.

In Last few weeks we have identified a simple Western technical indicator known as a pennant formation, and commonly referred to as a compression triangle. It is called a compression triangle because price ranges as well as the highs and the lows of a period of time will begin to contract.

In the last 12 years the United States has experienced two major economic disruptions both requiring massive Federal Reserve intervention to lessen the effect of a contracting economy. The first occurrence was in response the financial meltdown of 2007 and subsequent recession which began in 2008.

During the last two severe economic contractions and recessions in which the Federal Reserve intervened to help stabilize the economy a new paradigm occurred in which both U.S. equities and gold would move in tandem to the upside. The explanation is fairly straightforward in the case of U.S.