Weekly Update 20 Mar 2020: New lows in Commodities
Cryptocurrencies, national currencies, bonds and gold stocks moved higher, major stock indexes fell, and commodities were mixed. The largest gains were in coffee and Bitcoin; they rose 18.9% and 16.5% respectively. Crude oil fell the most, collapsing 25.1%. Platinum and silver were also hit hard, falling 17.9% and 16.2% respectively. Many commodities made new all-time lows this week, including silver, platinum, copper, crude oil, and cotton.
National currencies were led higher by the Chinese Yuan, up 4.8% and the US Dollar, up 4.6%. The Japanese Yen and the Euro trailed behind, gaining 0.7% and 1.0% respectively. Bonds outperformed cash, with the short term SHY rising 4.8% and the long term TLT climbing 8.3%.
Bitcoin slumped lower early in the week, then began a gradual recovery that sprinted higher on Thursday, hitting a high of 130.6 grams before settling back to close at 129.0 grams, up 16.5%. Ethereum followed a similar path, but ended up just 4.2%. DASH (not in table) also dipped before rising at the end of the week, but skyrocketed 45.9% to close at 1.48 grams. Although this makes DASH an outstanding gainer this week, this price increase is a bounce from a very low level.
In the equity space, gold stocks rose 6.2% while all major stock indexes fell. US markets dropped the most, with the Dow Jones leading the way lower by falling 13.5%, while the S&P 500 slid 11.1%. The Japanese Nikkei outperformed, but still gave up 4.4%.
Commodities were wild, as the group included both the best performing asset (coffee, up 18.9%, and the only rising commodity) and the worst performing asset (crude oil, down 25.1%). Platinum and silver were particularly hard hit, falling 17.9% and 16.2% respectively. As mentioned earlier, many commodities made new all-time lows this week: copper and crude oil on Wednesday, silver and platinum on Thursday, and cotton on Friday.
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