Gold Rose As Safe Haven May 20, 2020 Early Wednesday, gold rose as safe haven attributes attracted investors who fled to the yellow metal amid doubts about a potential vaccine and concerns about the global economy. At the beginning of this week, investors pinned their hopes to a COVID-19 vaccine being developed by Moderna Inc., but subsequent reports have indicated that the euphoria that spurred the broader market may have been premature. Meanwhile, Treasury Secretary Steven Mnuchin and Federal Reserve Chairman Jerome Powell told lawmakers Tuesday that the U.S. economy faces the possibility of permanent damage because of the lockdowns triggered by the coronavirus pandemic. They made a joint appearance before the Senate Banking Committee in which they also warned that the economy will get worse before it gets better and a full recovery won’t come until the crisis resolves itself. Gold got some support after Powell said the Fed was “prepared to act further” to boost the economy. Indications of additional central-bank stimulus are typically seen as bullish for gold because the precious metal is used as a hedge against inflation. Front-month gold futures rose 0.7% Tuesday to $1,745.60 an ounce on Comex. The most-active June gold futures contract is down 0.6% in the first two days of this week. The current June contract is at $1,752.40 and the DG spot is $1,752.80. The Congressional Budget Office on Tuesday forecast that U.S. GDP will contract by 38% on an annualized basis, with 26 million more people unemployed that at the end of 2019. Investors will look later Wednesday to the release of the minutes of the Federal Open Market Committee meeting in April for further economic signals. The Atlanta Fed’s Raphael Bostic and St. Louis Fed’s James Bullard are also scheduled to speak. U.S. data Tuesday showed that homebuilding starts tumbled in April. The virus known as COVID-19 has killed more than 323,000 people worldwide and sickened 4.9 million. About 31% of the cases are in the U.S., though just 28% of the deaths. The U.S. has more cases than any other country. July silver futures increased 2.5% Tuesday to settle at $17.90 an ounce on Comex, the highest settlement for a front-month contract since late February. The metal gained 4.9% in the first two days of the week. Currently, the July contract is at $17.915, while DG spot is $17.51. Spot palladium advanced 1.9% Tuesday to settle at $2,113.00 an ounce, and it’s up 11% the first two days of this week. Spot platinum rose 1.4% Tuesday to $843.20 an ounce and is up 4.5% so far this week. The current DG spot price for platinum is $859.50, while palladium is $2,182.90 Disclaimer: This editorial has been prepared by Dillon Gage Metals for information and thought-provoking purposes only and does not purport to predict or forecast actual results. This editorial opinion is not to be construed as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein cannot be attributable to Dillon Gage. Reasonable people may disagree about the events discussed or opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. It is not a solicitation or advice to make any exchange in commodities, securities or other financial instruments. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisers with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.