Earlier today the basis between Spot Gold and April Futures touched a multi decade high of $60 as of the settlement in Futures that spread contracted to $40 dollars, The extraordinary events continue.Gold +6%,Silver +7.7% palladium +15%
Optimism still reigns as Spoos start to rally with one hour left to the cash close.No Fiscal Deal signed yet but all the right things are being said to provide optimism.I myself think we can selel off into close if No Deal presented to trump so lets see. One interesting Note is that during a conference call with fellow Dems Steny Hoyer said to “expect a 4th and 5th Covid response bill” Stimulus for the near future it appears.If US stocks can hold gains into close Dow +1800, +9.75%,Spoos 181 handles +8%,European Bourses closed with some of the heftiest gains in over 10 years.Optimism regarding US stimulus bill the cause. From McElligott, everyone favorite Market Guru – The Fed is “not just acting as liquidity-, short-term lending- and USD funding-provider of last resort, but also now as the ‘chief risk-taker and CIO’”, McElligott goes on to say, adding that as of Monday, the Fed resumed building a ‘short volatility’ position”.
Cattle complex stays well bid on limit into close with Synthetic prices via options showing substantially higher prices expected tomorrow when trade reopens. Simplest way to describe it panic Buying Caught suppliers off guard as Consumers bought Beef as if End of World is upon us.This is a short term demand feature, longer term prices should trade heavy as recession fears limit Disposable income and thus less demand for high cost cuts of beef.Try to relate the empty shelves of beef at supermarket as the aisle of toilet paper products, cleaned out , demand overwhelmed short term supply,plain and simple. In turn Spot prices running higher.
Not all Good news ,aftyer two days of Decreases Italy saw Death toll jump by 743 people over last 24 hours,Spain saw deaths jump by 489 very Sad.