Gold closer to $1.600 again while risk-on assets are on the run

Paul Rejczak Gold Price Forecast

The gold futures lost 3.17% on Thursday, as it fell below $1,600 level and reached the daily low of $1,560.40. Yellow metal fell the lowest since early February following financial markets liquidity squeeze. Earlier in the week, the market bounced off Monday's new medium-term high of $1,704.30. Two weeks ago the gold price collapsed to the low of $1,564 despite an ongoing coronavirus scare. However, the gold price retraced all of the decline last week, as virus fears reappeared. Yesterday it has retraced the advance again.

Gold is 1.3% higher this morning, as it gets closer to $1,600 level again. What about the other precious metals? Silver lost 4.60% on Thursday and today it is unchanged. Platinum lost 9.95% yesterday and this morning it gains 4.2%. Palladium lost a stunning 14.10% yesterday and today it is trading just 0.7% higher.

The financial markets continue reacting to news about coronavirus. But today the risk-on assets are on the run, as traders await more stimulus news. Last week's scheduled economic data releases haven't moved markets by much. Today we will wait for the Preliminary Michigan Consumer Sentiment number release at 10:00 a.m.

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Author

Paul Rejczak

Gold Price Forecast

Paul Rejczak is a stock market strategist who has been known for the quality of his technical and fundamental analysis since the late nineties.

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