Monday marks the one-year anniversary of last year’s banking crisis and the collapse of SVB. This year, New York Community Bank (NYCB) takes center stage amidst concerns over its deeply underwater loan book, especially in the realm of rent-controlled loans.
Wednesday saw a temporary halt to the panic, but fears persist. If deposits continue to flee, NYCB could face dire consequences in the coming week.
New York Community Bancorp (NYCB) witnessed a staggering 45% intraday decline on Wednesday as trading came to a standstill pending news. Half an hour prior to the halt, NYCB announced its pursuit of capital to bolster its balance sheet.
A $1 billion rescue package was unveiled around 2:30 PM, prompting a rally in prices as the trading day drew to a close. However, banking expert Chris Whalen suggests that the injection might fall short, advocating for a capital infusion closer to $10 billion to stabilize NYCB’s position.
In the realm of precious metals, gold is experiencing a significant breakout, surging past the $2100 mark and initiating what experts believe to be a robust multi-month rally. Despite anticipated volatility and corrections along the way, this cycle is projected to trend upwards into late April or early May.
Silver, often trailing behind gold initially, is expected to catch up towards the end of the cycle, with potential fireworks anticipated in April, particularly upon surpassing the $26.00 threshold.
Similarly, platinum is showing promising signs, with progressive closures above the 50-day EMA and a cycle bottom established. The next milestone lies in conquering the $1000 level to catalyze further upside.
Anglogold Ashanti (AU) has broken free from its rounded bottom, signaling a breakout among gold miners. Meanwhile, GDX (Gold Miners ETF) has seen six consecutive opens with gaps higher, indicating a potential upswing, contingent upon surpassing the $32.50 mark. In the junior sector, GDXJ and SILJ are poised for excitement upon surpassing key levels of $40.00 and $10.60 respectively.
Amidst these developments, the S&P 500 continues its relentless ascent, hitting a new closing high and remaining deeply overbought, while the next surge in gold prices suggests sub-$2000 pricing may soon be a distant memory. With gold miners appearing undervalued, the coming months could see a significant uptick in their fortunes.
