A lot of eyes are on the financial markets right now. It is the proverbial, make-or-break time for stocks, commodities, and assets. Precious metals such as gold look to be in a good position, but Phil Streible has a completely different view.
Overall Sentiment Remains Bleak
Ever since the coronavirus put nearly the entire world on lockdown, financial markets have yielded little momentum to be excited about. Life as people knew it has virtually ground to a halt, and things may not return to “normal” for some time to come. As such, the financial markets are under a ton of pressure, and the end may not be in sight either.
Phil Streible, the senior market strategist at Blue Line Futures, doesn’t expect much positive momentum to materialize in the near future. Not only is he concerned about upcoming stock market volatility, but he expects the same trend to affect gold and precious metals. That certainly would be interesting to behold, although nothing is impossible under these circumstances.
As stimulus packages are still being introduced globally, the pressure on these markets will not relent. The Federal Reserve has thrown everything but the kitchen sink at the domestic economy at this point. Once the post-coronavirus recession effectively hits, there will undoubtedly be bearish stock market turmoil.
The Gold Price Outlook
Despite the seemingly bearish stance on gold and precious metals, Streible isn’t completely giving up either. He does expect there to be some noteworthy leaps in terms of foreign currency growth. That momentum may very well hinge on who issues future stimulus packages. The coronavirus crisis has disrupted many economies, and some will simply not recover without a major bailout worth trillions of dollars.
That being said, the recent seemingly bullish gold price run is potentially running out of steam. Once the price surpassed $1,750, a jump to $1,780 seemed plausible. However, that did not materialize, and the gold price has begun trading lower as a result. Streible is convinced that the price will hit the low $1,660 range. If that level is broken, a bearish downtrend will be likely to take center stage.
There are also some concerns regarding the gold futures. More specifically, they are losing steam in USD value, but may have room for upward momentum in terms of foreign currencies. Reaching a new all-time high against the Euro, for example, would not be out of the question by any means. It is certainly a market worth keeping an eye on over the next few weeks and months.