Gold: Precious metals extending their short-term downtrend

Paul Rejczak Sunshine Profits

The gold futures lost 0.33% on Wednesday, as it slightly extended its Tuesday's decline. The market has retraced some more of last week's Monday's – Tuesday's rally and it remained below $1,600 mark. On Tuesday, the yellow metal has reacted to news about Russia's plan to stop gold purchases, among other factors. For now, it looks like a downward correction within an uptrend.

Gold is gaining 0.7% this morning, as it continues to fluctuate along its Tuesday's daily low. What about the other precious metals? Silver lost 1.22% on Wednesday and today it is 4.2% higher. Platinum lost 1.66% yesterday and today it is up 1.0%. Palladium lost 7.12% yesterday and today it is 6.9% lower. So precious metals are extending their short-term downtrend this morning.

Today's U.S. Unemployment Claims number release at 8:30 a.m. has been much worse than expected. It reached a stunning record high of 6.648 million. And we may see more bad economic data releases in the near future, as they will be revealing coronavirus damage to the economy. Take a look at our Monday's Market News Report to find out about this week's economic news releases.

Want free follow-ups to the above article and details not available to 99%+ investors? Sign up to our free newsletter today!

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.

EUR/USD faces next resistance near 1.1930

EUR/USD has surrendered its earlier intraday advance on Thursday and is now hovering uncomfortably around the 1.1860 region amid modest gains in the US Dolla. Moving forward, markets are exoected to closely follow Friday’s release of US CPI data.

GBP/USD inching closer to 1.36

The Pound Sterling edged higher to 1.3640 on Thursday, recovering from an earlier pullback after stronger-than-expected US jobs data initially weighed on the pair. The Bank of England held rates at 3.75% at its February 4 meeting in a narrow 5-4 vote split, with four members preferring a 25 basis point cut to 3.50%.

Gold falls to near $4,900 as selling pressure intensifies

Gold price faces some selling pressure around $4,910 during the early Asian session on Friday. The yellow metal tumbles over 3.50% on the day, with algorithmic traders appearing to amplify the precious metal’s sudden drop. Traders will closely monitor the release of the US Consumer Price Index inflation report for January, which will be released later on Friday.

Ethereum investors face huge unrealized losses following price slump

US spot Ethereum exchange-traded funds flipped negative again on Wednesday after recording net outflows of $129.1 million, reversing mild inflows seen at the beginning of the week, per SoSoValue data. Fidelity's FETH was responsible for more than half of withdrawals, posting outflows of $67 million.

A tale of two labour markets: Headline strength masks underlying weakness

Undoubtedly, yesterday’s delayed US January jobs report delivered a strong headline – one that surpassed most estimates. However, optimism quickly faded amid sobering benchmark revisions.

Aster Price Forecast: Demand sparks on Binance Wallet partnership for on-chain perpetuals

Aster is up roughly 9% so far on Thursday, hinting at the breakout of a crucial resistance level. Aster partners up with Binance wallet for the second season of the on-chain perpetuals challenge.