gold investment, silver investment

paul-rejczak

Gold Daily News: Wednesday, March 4

March 4, 2020, 8:13 AM Paul Rejczak

The gold futures contract gained 3.11% on Tuesday, as it retraced Friday's sell-off after surprising Fed's interest rate cut at 10:00 a.m. On Friday the price collapsed to $1,564.00 level, despite the ongoing corona virus scare. The recent short-term volatility marked a topping pattern before that sell-off. Tuesday's quick retrace may be suggesting that volatility will remain elevated. Investors were buying safe-haven asset amid corona virus outbreak, economic slowdown fears recently. But then gold bounced off $1,700 mark and reversed its uptrend. On Friday the price reached local low of $1,560. Yesterday the market got back closer to $1,650 level.

Gold is gaining 0.4% this morning, as its price fluctuates along yesterday's daily high. What about the other precious metals? Silver gained 2.68% yesterday. Today it gains 0.2%, as it retraces some more of Friday's sell-off. However, it remains relatively much weaker than gold. Platinum gained 1.15% on Tuesday. It is trading close to local lows following Friday's sell-off. Right now, the metal is 0.5% lower. Palladium lost 1.66% yesterday, as it extended its short-term downtrend. Today it is trading 0.8% lower.

The financial markets went full risk-off last week, as corona virus fears dominated the news. Then we saw a quick Friday's-Monday's relief-rally. Yesterday's Fed's rate cut decision marked another short-term local high and the risk markets turned lower. However, investors' sentiment is improving again this morning.

Tuesday's Caixin Services PMI number release from China showed a very big virus impact on Chinese economy, as it fell much below expectations (26.5 vs. 48). Today we will get the ADP Non-Farm Employment Change at 8:15 a.m. and the ISM Non-Manufacturing PMI at 10:00 a.m. There will also be the Bank of Canada Rate Statement along with the Overnight Rate release at 10:00 a.m. On Friday we will get the important U.S. monthly jobs data release. Take a look at our Monday's Market News Report to find out more!

Thank you.

Paul Rejczak
Stock Trading Strategist
Sunshine Profits - Effective Investments through Diligence and Care

Did you enjoy the article? Share it with the others!

Apr Market Overview

Gold Market Overview

There has never been such a crisis. In matter of days, economies all over the world froze up. The stock markets plunged and the Wall Street experienced its largest single-day percentage drop since Black Monday in 1987. In response, the central banks shoots monetary bazookas while the governments are announcing mammoth stimulus packages.

If you feel lost, if you do not know what to think about the epidemic and its impact on the global economy and the gold market, or if you feel that the world has gone mad, you should definitely read this edition of the Market Overview.

As always, we focus on the gold market, so we analyze thoroughly how the epidemic, global recession and the resulting monetary policy and fiscal policy response will affect the price of the yellow metal.

Read more in the latest Market Overview report.

menu subelement hover background