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We hope your Friday is running smoothly as we head into the weekend. The markets are winding down for the week, and all the activity since Monday has led to some surprises—like gold’s volatility. The yellow metal plunged early in the week but then closed out the week with some rebound in price. In today’s news, we found some articles that take a closer look at gold’s roller coaster week. We also found for you a commentary on a recently rosy economic forecast by Goldman Sachs—the writer picks their forecast apart, pointing out some overlooked details that suggest their outlook has too many rainbows and lollipops. Plus, more metal news.
Let’s dig in…

Price
Unstable Gold Rebounds Above $1900 as UK Economy Stagnates
On Wednesday gold broke through the $1900 glass ceiling, partly fueled by troubling United Kingdom economic data that sparked renewed fears over a coronavirus-led slowdown, which prompted a rebound in yellow metal right after the steepest sell-off in over seven years. Spot gold rose about 1% to $1929.63 per ounce after falling 6.2% on Tuesday. U.S. gold futures slipped 0.3% to…
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Economy
Dollar Stumbles as U.S. Stimulus Stalls
The dollar took a slide down on Thursday against other currencies like the euro, Swiss franc, and sterling, weighed down by the collapsed negotiations in Congress on a second COVID-19 stimulus bill for struggling Americans. In the afternoon session, the dollar shed its losses, while U.S. stock indexes fell. The dollar has lost 10% of its value since March and has been bouncing around its lowest levels in more than two years since late July. Investors, however, remained focused on the stimulus package talks—one side drama playing out involves the U.S. Postal Service and it’s high profile involvement with the upcoming national election—the USPS is a key piece of infrastructure as mail in ballots are considered a critical part of the process now during the pandemic. On Wednesday, Trump accused congressional Democrats of…
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Latest News
A Bitcoin-Gold Correlation Has Reached a Record High 70%
The prices of bitcoin and gold looks like a pair of friends running a three legged race—attached at the ankle, so to speak—the prices of each have reached a monthly average correlation of 70%, which is an all-time high, according to data analytics firm Skew. The previous peak of just under 60% was reached earlier on in the second quarter of 2020. Skew states this is occurring due to the rising correlation between gold and bitcoin. BTC is now considered a store of value, particularly at a time of economic turmoil. “Bitcoin/Gold 1 month correlation reaching new all-time highs, giving momentum to the store-of-value narrative for BTC in these ‘money printer go brrr’ times,” said the London-based company in a tweet.

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Stock Market
Which One Can You Trust—Gold or U.S. Treasuries?
Whenever there’s a sharp reversal across market trends, Wall Street gets antsy. In fact, the excitement level was high on Tuesday when gold prices tumbled at their lowest plunge since 2013, while 30-year Treasuries jumped higher than they had in two months. As a result, industries like banks, energy and automobiles were the drivers behind the stock market’s rise—for once, it wasn’t the tech industry. What caused investors to sell everything that was considered the better investment the day before and run to assets? Russia’s announcement that it has registered its first coronavirus vaccine is one, and President Trump’s comments on his “serious” consideration to cut the capital gains tax is the other apparent reason.

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Commentary
Here’s Why Goldman’s Rosy Forecast on the Economy is Dead Wrong
Goldman has raised its economic growth outlook for 2021 as it sees a vaccine approval happening this year. However, even if a vaccine does get approved soon, GDP and employment likely won’t grow as fast as Goldman predicts. The one thing nobody is talking about is how an early vaccine could have negative consequences that all of us should be concerned about.

SEE WHY GOLDMAN SACH’S FORECAST IS TOO ROSY
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Price
More Pain Coming for Gold & Silver Short Term, Warns Trader
Matt Maley, chief market strategist at Miller Tabak, gave a warning Wednesday on CNBC’s Trading Nation: precious metals could be in for more pain. With gold prices cooling off after hitting record highs August 6, the yellow metal saw its worst one-day drop in seven years on Tuesday. Silver also reversed course on its price as well, dropping it’s lowest daily decline since 2008. “Even though its long-term fundamental picture looks intact, sometimes on Wall Street when it gets so extreme, you see a reversal and one that lasts for more than just a few days,” Maley said of gold. He pointed to gold’s relative strength index, or RSI, an indicator that…

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