The gold futures contract gained 0.42% on Friday, as it broke above the Tuesday's local high of $1,568.80. The yellow metal was gaining as investors were fleeing the stock market following China virus fears, among other factors. On Wednesday gold has bounced off $1,550 level and on Friday it reached the local high of $1,575.50. The market trades within a short-term uptrend. However, it is still retracing just a part of its move lower from the January 8 medium-term high.
The gold price is currently 0.7% higher, as it extends Friday's advance. It acts as a safe haven asset, as investors react to news from China about the spread of the deadly virus. What about the other precious metals?
The silver was relatively weaker than gold, as it failed to break above the previous local high last week. However, it has sharply reversed its course. On Friday silver gained 1.6%, and right now it is trading 0.9% higher ($18.27). The platinum got back below $1,000 mark, as it trades 1.2% lower. The palladium is also 1.2% lower. Those precious metals are less of a safe haven assets, as they serve more industrial uses than gold and silver.
Today, the financial markets are focused on the mentioned China virus crisis. But investors will wait for the U.S. New Home Sales data release at 10:00 a.m. We will also wait for series of economic data releases this week, including Wendesday's FOMC Monetary Policy Statement. Where would the price of gold go following the FOMC day? Take a look at our today's Market News Report to find some clue.
Thank you.
Paul Rejczak
Stock Trading Strategist
Sunshine Profits - Effective Investments through Diligence and Care
