The gold
futures contract gained 3.11% on Tuesday, as it retraced Friday’s sell-off after surprising Fed’s interest rate cut at 10:00 a.m. On Friday the price collapsed to $1,564.00 level, despite the ongoing
corona virus scare. The recent short-term
volatility marked a topping pattern before that sell-off. Tuesday’s quick retrace may be suggesting that volatility will remain elevated. Investors were buying
safe-haven asset amid corona virus outbreak, economic slowdown fears recently. But then gold bounced off $1,700 mark and reversed its uptrend. On Friday the price reached local low of $1,560. Yesterday the market got back closer to $1,650 level.
Gold is gaining 0.4% this morning, as its price fluctuates along yesterday’s daily high. What about the other precious metals?
Silver gained 2.68% yesterday. Today it gains 0.2%, as it retraces some more of Friday’s sell-off. However,
it remains relatively much weaker than gold.
Platinum gained 1.15% on Tuesday. It is trading close to local lows following Friday’s sell-off. Right now, the metal is 0.5% lower.
Palladium lost 1.66% yesterday, as it extended its short-term downtrend. Today it is trading 0.8% lower.
The
financial markets went full risk-off last week, as
corona virus fears dominated the news. Then we saw a quick Friday’s-Monday’s relief-rally. Yesterday’s Fed’s rate cut decision marked another short-term local high and the risk markets turned lower. However, investors’ sentiment is improving again this morning.
Tuesday’s Caixin Services PMI number release from China
showed a very big virus impact on Chinese economy, as it fell much below expectations (26.5 vs. 48). Today we will get the
ADP Non-Farm Employment Change at 8:15 a.m. and the
ISM Non-Manufacturing PMI at 10:00 a.m. There will also be the Bank of Canada Rate Statement along with the Overnight Rate release at 10:00 a.m. On Friday we will get the important
U.S. monthly jobs data release. Take a look at our
Monday’s Market News Report to find out more!
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Paul Rejczak
Stock Trading Strategist
Sunshine Profits - Effective Investments through Diligence and Care
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