The price of gold has been quite volatile overnight despite Monday's Martin Luther King Jr. Day in the U.S. It broke above the short-term resistance level of $1,560, before reversing downwards and getting back below the recent local lows. It still looks like a consolidation following January 8 run-up above $1,600 mark that ended with a sharp downturn. Last week the market has rebounded off a local low of $1,536.40.
The gold price has been trading close to week-long highs despite the overall short-term risk-on action on the financial markets following last Wednesday's U.S. and China Phase One trade deal signing. The overnight trading action in gold has reaffirmed the mentioned resistance level. The gold is currently 0.3% lower.
What about the other precious metals? The silver was relatively weaker than gold, as it failed to break above the last week's Friday's local high. Right now, it continues to trade along the $18 mark. The price of platinum trades within a range of $1,000-1,020 per ounce and palladium remains close to its new record highs.
Today, the financial markets are focusing on a virus crisis in Asia, Hong Kong's Moody's downgrade and the World Economic Forum in Davos.
Thank you.
Paul Rejczak
Stock Trading Strategist
Sunshine Profits - Effective Investments through Diligence and Care
