Gold retraces most of Tuesday's decline amid coronavirus fears and crashing oil prices

Paul Rejczak Sunshine Profits

The gold futures contract lost 0.92% on Tuesday, as it extended its downward correction from Monday’s new medium-term high of $1,704.30. Two weeks ago the gold price collapsed to the low of $1,564despite an ongoing coronavirus scare. However, the market retraced all of the decline last week, as virus fears reappeared. Gold broke higher on Monday, but then the market got back lower again.

Gold is 0.8%higher this morning, as itretraces most of yesterday’s decline. What about the other precious metals? Silver lost 0.58% on Tuesday and today it is trading 0.6% higher. Platinum gained 0.76% yesterday and this morning it is trading 1.3% higher. Palladium lost 3.67%yesterday and today it is trading 2.0% lower, as it extends its short-term downtrend.

The financial markets were selling off on Monday amid coronavirus fears and crashing oil prices following failed Friday’s OPEC Meeting. Last week’s scheduled economic data releases haven’t moved markets by much. What about the coming week? Today’s U.S. consumer inflation data release was inline with expectations.Tomorrow we will await Producer Price Index and the ECB monetary policy 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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