Gold closer to $1,750 again as Fed will continue zirp

Paul Rejczak Sunshine Profits

The gold futures contract gained 1.11% on Thursday, as it slightly extended its short-term uptrend. The price broke above $1,750 mark yesterday before closing below that resistance level. Global markets went risk-on and gold has been selling off as a safe-haven asset recently. But Wednesday’s FOMC Statement came out as a short-term game-changer. Stock prices reversed lower and gold spiked higher. However, it is still trading within a medium-term consolidation, as we can see on the daily chart:

Gold is gaining 0.5% this morning, as it’s getting back closer to yesterday’s daily high. What about the other precious metals? Silver gained 0.52% on Thursday and today it is 0.1% lower. Platinum lost 2.60% and today it is 0.6% higher. Palladium lost 1.07% on Thursday and today it is 1.5% higher. So precious metals trade along their yesterday’s daily highs today.

The recent economic data releases have been confirming negative coronavirus impact on global economies. However, last Friday’s U.S. monthly jobs data came out much better than expected. And the Nonfarm Payrolls number has been positive. Yesterday’s Unemployment Claims number release has been as expected at around 1.5 million. Today, we will get the Preliminary Michigan Sentiment number at 8:30 a.m. It will likely remain around 20-25 points below its 2015-2020 average value of 95-100 points. Its previous release was at 72.3.

Below you will find our Gold, Silver, and Mining Stocks economic news schedule for the next two trading days:

Friday, June 12

10:00 a.m. U.S. - Preliminary UoM Consumer Sentiment

Monday, June 15

8:30 a.m. U.S. - Empire State Manufacturing Index
11:00 a.m. U.S. - FOMC Member Kaplan Speech
Tentative, Japan - Monetary Policy Statement, BOJ Policy Rate

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Author

Paul Rejczak

Sunshine Profits

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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