The gold futures contract lost 1.65% on Wednesday, as it retraced some of its Monday's - Tuesday's rally after Sunday's Fed unlimited Quantitative Easing announcement. Yellow metal has retraced all of the recent sell-off, as it got back close to March 9 medium-term high of $1,704.30. Today gold is trading within a short-term consolidation.
Gold is up 1.3% this morning, as it continues to fluctuate following the mentioned Monday's-Tuesday's rally. What about the other precious metals? Silver gained 4.32% on Wednesday and today it is up 0.2%. Platinum has rallied by another 6.24% yesterday and today it is 2.0% lower. Palladium rallied by 25.78% on Wednesday and today it is down 4.6%. So precious metals' short-term volatility is enormous.
The financial markets continue reacting to the mentioned Sunday's Fed announcement. The stock market has basically crashed along with precious metals prices a week ago. Stocks continue retracing some of their decline this week and gold is back at medium-term high. The scheduled economic data releases have been less important than the mentioned virus crisis developments recently. However, Tuesday's U.S. Flash Services PMI number release came in much worse than expected. And today, the weekly Unemployment Claims number has surpassed 3 million! Take a look at our Monday's Market News Report to find out about this week's economic news releases!
Thank you.
Paul Rejczak
Stock Trading Strategist
Sunshine Profits - Effective Investments through Diligence and Care
