AXL Capital Management

Following the model developed by the AXL Capital Management team, this report provides the projected levels of gold prices for July 2020. For July 2020 the model indicates an upper limit of 1,877 US$/0z and a lower limit of 1,710 US$/Oz. On average the model indicates 1,788 US$. The US economy and its reactivation plan were threatening by an increase in the number of people infected by COVID-19 to 3.1 million (the previous month's report indicated 2 million) and 133,420 deaths. Unemployment claims continue to decrease week by week (1.31 MM vs. 1.41 MM). At AXL Capital, we currently see as the only threat to the continuity of the plan to reopen the US economy, a resurgence of the Coronavirus, and the potential quarantine at home with the main factor for the decline of the stock market and a new rally of Gold prices.  Gold prices in the first week of July surpassed 1,800 US$/oz, a resurgence of the Coronavirus would increase the levels of uncertainty and would put at risk the plan to...

Following the model developed by the AXL Capital Management team, this report provides the projected levels of gold prices for June 2020. For June 2020, the model indicates a lower limit of 1,640US$/0z and an upper limit of 1,812 US$/Oz. This upper limit continues to increase will see if, in the coming months, it can indicate a trend. The U.S. economy is following its recovery plan, and New York - the state with the highest number of COVID-19 infections - has also entered its first phase of economic recovery. With the U.S. employment data and the growing number of people infected -and dying- by COVID19, we will see in the coming weeks if Gold can reach the upper limit of the AXL Capital model: 1,812 US$/Oz or on the contrary, it is close to the lower limit; 1,640 US$/Oz. The economic reopening and a resurgence of the virus crown correlate, in the short term, indirectly and directly, respectively, with the prices of Gold. Likewise, in the last two weeks, there has been an increase in so...

The first week of June starts with all the SPX, Nasdaq, and Dow Jones indices (14:30 hours), rising an average of 0.44%. Citigroup, one of the largest banks in the world (current market capitalization of US$ 98.5 trillion), says that the rise in the stock market does not reflect reality, and there will be collateral damage. The price of gold rises by 0.4% to $1,739/Oz at that time. At AXL Capital, we see that this reflects a high level of competition between those who are betting on the market's recovery in line with the rampant economic reopening in the US and the global injection of dollars underway, versus large investors who in April and May were able to reap the benefits of years and raise their cash levels as Warren Buffet - one of the largest investors of all time - did, pointing to a new, healthy and significant market downturn reflected in a worldwide Recession, technically for the second quarter of the year due to the effects of the COVID-19 according to the federal reser...

According to the model developed by the AXL Capital Management team, this report issues the projected levels of Gold prices for May 2020. For May 2020, the model indicates a lower limit of US $ 1,619 / 0z, and an upper limit of US $ 1,787 / Oz, the latter represents the maximum value since November 2012. When analyzing those results with technical price indicators, the conclusion made that if the upper lateral channel of US $ 1,742 / Oz breaks, the next level projected by the model is feasible to reach: US $ 1,787 / Oz.   Chart # 1: The daily chart of the price of Gold shows a side-channel whose upper level is US $1,742 / Oz, and the lower level is US $1,671 / Oz. The US economy is reopening in many states, a slow recovery of jobs expected, which at the date of this report reaches a record historical figure of 33, 483,000 jobs lost from 03/21 to 05/02 (Data, Federal Reserve Bank of St Louis). That figure represents almost the entire Peruvian population. Currently, there is no cure ...