Gold Closer to $1,750 Again as Fed Will Continue ZIRP
The gold futures contract gained 1.11% on Thursday, as it slightly extended its short-term uptrend. The price broke above $1,750 mark yesterday before closing below that resistance level. Global markets went risk-on and gold has been selling off as a safe-haven asset recently. But Wednesday's FOMC Statement came out as a short-term game-changer. Stock prices reversed lower and gold spiked higher. However, it is still trading within a medium-term consolidation, as we can see on the daily chart:
Gold is gaining 0.5% this morning, as it's getting back closer to yesterday's daily high. What about the other precious metals? Silver gained 0.52% on Thursday and today it is 0.1% lower. Platinum lost 2.60% and today it is 0.6% higher. Palladium lost 1.07% on Thursday and today it is 1.5% higher. So precious metals trade along their yesterday's daily highs today.
The recent economic data releases have been confirming negative coronavirus impact on global economies. However, last Friday's U.S. monthly jobs data came out much better than expected. And the Nonfarm Payrolls number has been positive. Yesterday's Unemployment Claims number release has been as expected at around 1.5 million. Today, we will get the Preliminary Michigan Sentiment number at 8:30 a.m. It will likely remain around 20-25 points below its 2015-2020 average value of 95-100 points. Its previous release was at 72.3.
Below you will find our Gold, Silver, and Mining Stocks economic news schedule for the next two trading days:
Monday, June 15
· 8:30 a.m. U.S. - Empire State Manufacturing Index
· 11:00 a.m. U.S. - FOMC Member Kaplan Speech
· Tentative, Japan - Monetary Policy Statement, BOJ Policy Rate
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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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