Dead Cat Bounce

Precious Metals Commentary (week ending 3rd April 2020)

A bit of a mixed week for the metals, with gold initially falling but recovering back above $1600 and silver to $14.56. The Aussie dropped to 60.5 cents this week helping local prices recover to trade around $2,670 for gold and just over $24 for silver. 

This week we ponder:

  • Buy equities on government intervention, or will it be a dead cat bounce?
  • How much free float is there in the gold market?
  • Will price increases balance the market, or is gold a Giffen good?

Read the full report by ABC Bullion's John Feeney and Bron Suchecki here.

Gold Spot USD Chart