Gold Steady Near $1,700 April 8, 2020 Gold steady near $1,700 an ounce early Wednesday as continued concern about the novel coronavirus and its effect on the economy boosted the yellow metal, but a strong dollar kept prices from surging. The world probably entered a deep global recession in March as the spread of the novel coronavirus locked people down around the world, Bloomberg reported. The World Trade Organization is set to release a new global-trade forecast Wednesday. “In some respects the picture today looks bleaker than after the 2008-2009 crisis,” WTO Director-General Roberto Azevedo told the agency in an interview. The outlook may project “significantly larger drops” than the 12.6% drop in global trade and 2% economic contraction seen in 2009, he said. The virus, known as COVID-19, has killed more than 82,000 people worldwide and sickened more than 1.43 million. About 28% of the cases are now in the U.S., though just 16% of the deaths. The U.S. has more cases than any other country. The virus is a WHO-designated pandemic. Investors have fled to gold as a safe haven from the economic uncertainty caused by the novel coronavirus, but a strong dollar and rallying equities put a lid on potential gains. Meanwhile, a supply squeeze as gold refineries shut down gave the precious metal a boost, while traders cashing out of their gold positions to cover margin calls in other assets have pressured prices. The most-active June gold futures contract fell 0.6% Tuesday to settle at $1,683.70 an ounce on Comex. The metal gained 2.3% in the first two days of this week. There will be no settlement on Comex on Friday because of the Good Friday holiday. The June contract is currently at $1,686.70, while the DG spot price is $1,664.60. The Standard & Poor’s 500 Index briefly touched a 20% gain from its March low on Tuesday. Deaths from COVID-19 hit a new high Tuesday in New York, but the number of hospitalizations slowed, offering a glimmer of hope that social distancing efforts were working. Meanwhile, China lifted the lockdown on Wuhan, the place where the virus originated, after 11 weeks. May silver futures rose 2.1% Tuesday to settle at $15.48 an ounce on Comex. The metal rallied 6.8% in the first two days of this week. Currently, the May contract is down a touch at $15.385, while the DG spot price is $15.21. Spot palladium rose 1.2% Tuesday to $2,230.10 an ounce and was up 1.9% in the first two days of this week. DG spot price for palladium is currently $2,200.00. Spot platinum increased 1.3% Tuesday to $753.10 an ounce and was advanced 3.4% in the first two days of this week. Currently, the DG spot price is $751.40. 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.