Bonds & Bullion Bid As Stocks & Dollar Skid

COVID concerns (NFL cases and NYC positivity rates), a lack of stimulus progression, and the uncertainty ahead of tonight's presidential debate weighed on stocks and the dollar, but sparked a safe-haven bid under bonds and precious metals...

The machines tried as usual to get back to even but with no lasting luck (weakness into Asia close and European close and US close...

And the 50DMAs were tested and rejected...

"Where's my money!"

Gold futures topped $1900...

Gold bounced off its 100DMA...

Source: Bloomberg

As Real yields tumbled, precious metals were bid...

Source: Bloomberg

Election uncertainty continued to surge...

Source: Bloomberg

With the VIX curve notably perturbed...

Source: Bloomberg

The dollar leaked lower again today...

Source: Bloomberg

Bonds were bid very modestly on the day with 10Y Yields back to A 63bps handle...

Source: Bloomberg

Cryptos were lower on the day...

Source: Bloomberg

Silver futures back above $24...

Which pushed the Gold/Silver ratio back below 80x...

Source: Bloomberg

Finally, as Bloomberg notes, oil trading is grinding to a halt with the market concerned about the coronavirus pandemic’s impact on demand and supply cuts from OPEC+ producers.

Source: Bloomberg

And as the month comes to an end, we note that the USDollar is outperforming gold in September by the most since Trump was elected...

Source: Bloomberg

Still, it’s probably best not to get too excited. Year to date, “in terms of gold, the dollar is declining over 20%,” said Bloomberg Intelligence’s Mike McGlone. “I see the metal building a base around $1,800 and resuming the rally above $2,000.”

Source: Bloomberg