Gold is extending the short-term rally and it gets closer to March 9 medium-term high

Paul Rejczak Sunshine Profits

The gold futures contract gained 5.59% on Monday following Sunday’s Fed unlimited Quantitative Easing announcement. Yellow metal has retraced almost half of its recent sell-off, as it got back above the $1,550 level yesterday. Today, gold is extending that short-term rally and it gets closer to March 9 medium-term high of $1,704.30.

Gold is rallying 7.0% today following Euro vs. US dollar advance, among other factors. It gets closer to the mentioned medium-term high. What about the other precious metals? Silver gained 7.07% on Monday and today it is gaining an additional 5.0%.Platinum has gained just 0.8% yesterday and today it is gaining 6.7%.Palladium gained 1.08% on Monday and today it rallies by almost 12%.

The financial markets react to the mentioned Sunday’s Fed announcement. The stock market has basically crashed along with precious metals prices a week ago. Stocks retrace some of their decline this week and gold is back at medium-term high again. The scheduled economic data releases have been much less important than the mentioned virus crisis developments recently.

However, some of last week’s releases have showed a sharp downturn. Today, we will get relatively important U.S. PMI numbers release at 9:45 a.m. Take a look at our Monday’s Market News Report to find out about this week’s economic news releases!

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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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