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Below $1,700 Level, Gold Selling Pressure Will Mount

Published 04/29/2020, 09:24 AM

The Gold futures contract lost 0.09% on Tuesday, as it slightly extended its short-term downward correction following last week’s advance. The market has bounced off the mid-April local high. On April 14 it was the highest since November of 2012 and the daily high was at $1,788.80. Since then we’ve seen some profit-taking action and a potential downward reversal. But gold began acting as a safe haven asset again. This week gold is relatively weak.

Gold is basically going sideways since early April. It is trading above February-March local highs. So it looks like a consolidation within a medium-term uptrend. But if the price gets below $1,700 level, we could see more selling pressure.

Gold is trading 0.5% lower this morning. What about the other precious metals? Silver gained 0.78% on Tuesday and today it is up 1.2%. Platinum gained 2.5% yesterday and today it is gaining 0.7%. Palladium lost 0.85% on Tuesday and today it is gaining 2.3%. Precious metals continue to trade within a short-term consolidation.

The recent economic data releases have revealed more coronavirus damage to the economy. Today’s Advance GDP number release has been generally in line with expectations. But investors will now wait for the FOMC Rate Decision and Monetary Policy update at 2:00 p.m. Take a look at our Monday's Market News Report to find out about this week’s economic data releases.

Disclaimer

All essays, research and information found above represent analyses and opinions of Paul Rejczak and Sunshine Profits' associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Paul Rejczak and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Rejczak is not a Registered Securities Advisor. By reading Paul Rejczak’s reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Paul Rejczak, Sunshine Profits' employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.

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