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Today
Discussion: DB Raises Target to $3,350 on "Risks to USD Reserve Status"
Premium: Stocks in Denial and Grasping for Optionality
Analysis:
DB Gets Back Into Gold, Raises Target to $3,350
Deutsche Bank is raising its price target in the midst of current market turmoil with a brand new report released yesterday. In it they turn to Central Bank physical demand much like Goldman and Bank of America recently have. In addition to the Central Bank demand analysis the following are of special note to GoldFix:
The Bank discusses dedollarization not just as an obvious trend, but as a permanent one.
Special observations are made of the under-reported Gold demand by central banks. What is being stated is not the whole of what is being bought.
DB also discusses “old gold” correlations like its beta to the USD— stating they still exist, but have “flipped their sign” away from being used as reasons to sell gold into powerful catalysts to buy it now.
ETF demand is also cited as a new and increasingly important reason for Gold’s buoyancy with special (new) attention paid to China’s growing ETF demand (quadrupling this past period).
Deutsche Bank is getting back into the metals market. In the bigger picture, Deutsche Bank risk analysis represents the German government risk. That implies a new bias to the buy side now.
Full Analysis in: DB Raises Price Target to $3,350 on "Risks to USD Reserve Status"
Featured:
Markets Recap:
The S&P 500 and Dow ended lower as Trump dug his heels in on tariffs, warning that he could further increase levies on China after a report that he might consider temporary relief turned out to be erroneous. Treasury yields gained on rising optimism that some countries may negotiate trade deals with Trump. Gold slipped as investors bought into safe haven dollar on recession fears. Oil dropped on worries of falling global energy demand.
Canada's main stock index fell after U.S. President Donald Trump threatened China with additional 50% tariffs, intensifying the U.S.-China trade war.
Market News:
Trump threatens to hike China tariffs further as market plunge continues
Tariff storm ravages Magnificent Seven as Apple nears one-year low
Dimon warns on trade war after Wall Street CEOs met Lutnick on tariffs
Data on Deck:
MONDAY, APRIL 7 Consumer credit
TUESDAY, APRIL 8 NFIB optimism index
WEDNESDAY, APRIL Minutes of Fed's March FOMC meeting
THURSDAY, APRIL 10 CPI Monthly U.S. federal budget
FRIDAY, APRIL 11 PPI year over year3.3%1
Summary and Final Market Check
