The gold futures contract gained 1.20% on Thursday, as it resumed its short-term uptrend following Tuesday’s-Wednesday’s downward correction. The market continued to retrace its sharp move lower from January 8 medium-term high. It reached the new short-term local high of 1590.70 yesterday. The ongoing China virus crisis is still negative for the risk-on assets, so gold continues to outperform. It is a safe haven asset.
Gold is currently 0.4% higher, as it remains close to the short-term local high. However, it is still below $1,600 mark, and January 8 high of $1,613.30. What about the other precious metals? Silver gained 2.9% on Thursday, as it retraced most of its recent decline. The market got close to $18 mark again. It is currently trading 0.2% higher. Platinum gained 0.5% yesterday and it currently trades 0.8% lower, as it remains below $1,000 price level. Palladium is unchanged, as it fluctuates following the recent retreat from new record high.
The financial markets continue to look at the China virus crisis developments. The stock market sentiment is mixed following yesterday’s Amazon’s much-better-than-expected quarterly earnings release and today’s pre-session decline. And gold is reacting in a bullish manner. Yesterday’s U.S. Advance GDP number has been as expected (+2.1%), but the markets look forward, as virus crisis is causing some uncertainty at this point. Today, we will get the U.S. Personal Spending and Personal Income number release at 8:30 a.m. Then at 9:45 a.m. we will also get the Chicago PMI.
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All essays, research and information found above represent analyses and opinions of Przemyslaw Radomski, CFA and Sunshine Profits' employees and associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Przemyslaw Radomski, CFA and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Radomski is not a Registered Securities Advisor. By reading Przemyslaw Radomski's, CFA reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Przemyslaw Radomski, CFA, Sunshine Profits' employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.
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