The gold futures contract gained 2.99% on Wednesday as it retraced some of its recent decline. The market got back above $1,700 level again. On Tuesday a week ago it was the highest since November of 2012 and the local high was at $1,788.80. Since then we've seen some profit-taking action and a potential downward reversal. But gold is acting as a safe haven asset again.
Gold is 1.0% higher this morning, as it extends the short-term uptrend. What about the other precious metals? Silver has gained 3.09% yesterday and today it is 2.4% higher. Platinum gained 0.9% on Wednesday and today it is up 2.2%. Palladium lost 0.8% yesterday and today it is up 1.5%. So precious metals have retraced their Tuesday's declines.
Last week's economic data releases have revealed more coronavirus damage to the economy. The Unemployment Claims number surpassed 5 million. But on Tuesday, we've got much better than expected German ZEW Economic Sentiment number release. Today, the European PMI numbers were worse than expected, but the markets will await the U.S. Unemployment Claims release at 8:30 a.m. and the Flash Manufacturing/Services PMI's at 9:45 a.m. Take a look at our Monday's Market News Report to find out about this week's economic data releases.
Thank you.
Paul Rejczak
Stock Trading Strategist
Sunshine Profits - Effective Investments through Diligence and Care
