Gold futures exploded greater ETF Gold JNUG




Gold futures exploded greater on Monday to finish up 3.75% with stocks, scoring a greater than seven-year high as overarching issues related to the spread of coronavirus fueled investor appetite for the safe-haven metal, regardless of the reality that U.S. stock indexes rallied on the belief that deaths from the pandemic will soon plateau.

The U.S. Surgeon General Jerome Adams on Sunday stated “this is going to be the hardest and saddest week of most Americans’ lives, quite frankly,” telling “Fox News Sunday” that “this is going to be our Pearl Harbor moment, our 9/11 moment, only it’s no longer going to be localized.”

But after two days of range trading, equities rocketed higher on Monday, helping to get better from the pullback last week, as the tally of fresh coronavirus cases in the U.S. regarded to diminish in New York.

The Dow Jones Industrial Average rallied as much as 1,200 points higher, or extra than 5.5% by 2 PM EST, while the S&P five hundred and the Nasdaq Composite climbed roughly 5.4% apiece.

Gold joined the party, climbing from $1638 an ounce to just above $1715, giving gold bugs more optimism alongside with interest rates, that the metal will continue on goal for $2000 an ounce as some analysts have projected.

“The consequences of negative rates in a liquidity wealthy environment will continue to fuel the gold rate higher as sellers are less keen to sell to the more hungry buyers,” Spina said. So the “march to $2,000 and beyond continues. The subsequent stop is $1,700 now, with a move above kicking up the momentum buying-energy even more into a bullish state.”

Overall, “this really encouraging news appears to be a goldilocks scenario for gold, as consumers are more confident to step in and purchasing the safe-haven metal, whilst knowing there are still very tough instances ahead, including the specter of problematic inflation farther down the road,” said Jim Wyckoff, senior analyst

While there is some feeling that the stay-at-home orders in many states will assist to curtail the damage and spread of the coronavirus pandemic, market analysts still see similarly equity market destruction, which will support safe-haven assets like gold.

“Fiscal and economic stimulus will provide a nice backdrop for gold, but safe-haven demand will be excessive due to upcoming financial stress that will persist over the coming months as the U.S. economy enters a very dangerous place,” stated Edward Moya, senior market analyst at Oanda, in a market update.

Gold investors can continue to use ETFs like the  Direxion Daily Gold Miners Bull 3X ETF (NYSEArca: NUGT), which was up greater than 11% Monday, the VanEck Vectors Gold Miners (NYSEArca: GDX)  and the  Direxion Daily Jr Gold Miners Bull 3X ETF (NYSEArca: JNUG).

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