Daily Gold News: Friday, Mar. 5 – Gold’s New Low, NFP Release in Focus

The gold futures contract lost 0.88% on Thursday, as it extended its downtrend following strengthening U.S. dollar, stocks’ sell-off. The market fell below $1,700 price level and it was the lowest since early June last year. Today gold is trading along the new local low, as we can see on the daily chart ( the chart includes today’s intraday data ):

Gold is virtually unchanged this morning, as it is trading below $1,700 price level. What about the other precious metals? Silver is 0.2% higher, platinum is virtually unchanged and palladium is 0.3% higher today. So precious metals are mixed this morning.

Yesterday’s Unemployment Claims release has been slightly better than expected at 745,000.

The markets will be waiting for today’s monthly jobs data release. The Nonfarm Payrolls is expected at +197,000.

Where would the price of gold go following today’s NFP release? We’ve compiled the data since September of 2018, a 30-month-long period of time that contains of thirty NFP releases.

The first chart shows price paths 5 days before and 10 days after the NFP release. The last three cases are marked with dashed lines. Gold lost 0.25% in February and gained 1.08% in January.

The following chart shows the average gold price path before and after the NFP releases for the past 30 months. The market was usually advancing ahead of the release day and closing 0.40% higher on the 10th day after the NFP release.

Below you will find our Gold, Silver, and Mining Stocks economic news schedule for today:

Friday, March 5

  • 8:30 a.m. U.S. – Non-Farm Employment Change, Unemployment Rate, Average Hourly Earnings m/m , Trade Balance
  • 10:00 a.m. Canada – Ivey PMI

For a look at all of today’s economic events, check out our economic calendar.

Paul Rejczak
Stock Selection Strategist
Sunshine Profits: Analysis. Care. Profits.
* * * * *

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.

 

Powell’s Speech Leads to Dollar Strength and Helped to Take Precious Metals Lower

Currently, spot or physical gold is fixed at $1697.70, which is a $13 decline. Of that $13 decline, dollar strength accounted for $12.30, with the remaining $0.70 attributable to selling.

gold march 4

Gold futures sustained a much greater loss than spot pricing, with the most active April 2021 Comex contract giving up $18 in trading today. As of 4:30 PM EST, gold futures are currently fixed at $1697.80. However, it was platinum and silver which sustained the greatest losses in the futures markets today. Silver futures gave up 3.55%, a decline of $0.93, and are currently fixed at $25.45. Platinum futures gave up $50.80, a 4.30% decline, and is currently fixed at $1131.

kgx marchg 4

In a speech today, the chairman of the Federal Reserve, Jerome Powell, did not announce any change in the Federal Reserve’s current monetary policy. However, market participants interpreted the statements lacking any real resistance from the real rise in U.S. bonds and treasury notes. Today U.S. Treasuries traded sharply higher, taking the yield on the 10-year note to 1.533%.

According to MarketWatch, Scott Brown, chief economist at Raymond James, said, “The market has been worried about the rise in long-term interest rates and the Fed chairman in his commentary didn’t really push back towards this increase in rates and the market took it as a signal that yields could rise further which is what has happened.”

Chairman Powell’s comments or lack of any strong signal that the Fed will react to the sharp rise in interest rates caused a huge spike in the U.S. dollar and concurrently took all of the precious metals as well as U.S. equities sharply lower. The U.S. dollar gained +0.77% (0.69 points) and is currently fixed at 91.63.

DX march 4

According to Reuters, “The benchmark 10-year Treasury yield spiked to 1.533% as Powell did not comment on any changes in Fed’s asset purchases to tackle the jump. It still held below last week’s one-year high of 1.614%. Investors were expecting that the Fed might introduce Operation Twist in which the central bank shifts its bond purchases to the long end of the yield curve from the shorter end.”

While chairman Jerome Powell’s statements did not soothe market sentiment, nor did he announce any actions such as implementing a “twist” program, it presents a unique opportunity in both stocks as well as the precious metals. Any stock or commodity which contains an intrinsic value and is falling in price will at some point hit a bottom in which market participants can obtain these assets at a much lower price. In the case of gold, traders have not seen gold as inexpensive since May 2020. As such, when the market does bottom, which at some point it will, there is a real opportunity to buy the precious metals at a much greater value.

For more information on our service, simply use this link.

Wishing you, as always, good trading and good health,

Gary S. Wagner

Daily Gold News: More Fluctuations, Fed & NFP in Focus

The gold futures contract lost 1.03% on Wednesday, as it extended its short-term consolidation following Friday’s breakdown below the previous local low and a support level of $1,750. The market fell the lowest since mid-June of 2020. Today gold is trading along its recent local lows, as we can see on the daily chart ( the chart includes today’s intraday data ):

Gold is 0.3% higher this morning, as it is still trading within a short-term consolidation. What about the other precious metals? Silver is 0.7% lower, platinum is 0.1% lower and palladium is 0.1% higher today. So precious metals are mixed this morning.

Yesterday’s ADP Non-Farm Employment Change release has been worse than expected at +117,000. Today we will get Unemployment Claims, Factory Orders releases among others. There will also be a speech from the Fed Chair Powell later in the day.

The markets will be waiting for tomorrow’s monthly jobs data release.

Where would the price of gold go following Friday’s NFP release? We’ve compiled the data since September of 2018, a 30-month-long period of time that contains of thirty NFP releases.

The first chart shows price paths 5 days before and 10 days after the NFP release. The last three cases are marked with dashed lines. Gold lost 0.25% in February and gained 1.08% in January.

The following chart shows the average gold price path before and after the NFP releases for the past 30 months. The market was usually advancing ahead of the release day and closing 0.40% higher on the 10th day after the NFP release.

Below you will find our Gold, Silver, and Mining Stocks economic news schedule for the next two trading days:

Thursday, March 4

  • 8:30 a.m. U.S. – Unemployment Claims, Revised Nonfarm Productivity q/q, Revised Unit Labor Costs q/q
  • 10:00 a.m. U.S. – Factory Orders m/m
  • 12:05 p.m. U.S. – Fed Chair Powell Speech
  • All Day – OPEC-JMMC Meetings

Friday, March 5

  • 8:30 a.m. U.S. – Non-Farm Employment Change, Unemployment Rate, Average Hourly Earnings m/m , Trade Balance
  • 10:00 a.m. Canada – Ivey PMI

For a look at all of today’s economic events, check out our economic calendar.

Paul Rejczak
Stock Selection Strategist
Sunshine Profits: Analysis. Care. Profits.
Sign up for our free gold, stock, and oil newsletter today!

* * * * *

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.

 

Daily Gold News: Wednesday, Mar. 3 – Gold’s Short-Term Fluctuations

The gold futures contract gained 0.62% on Tuesday, as it fluctuated following Friday’s breakdown below the previous local low and a support level of $1,750. The market fell the lowest since mid-June of 2020. This morning gold is retracing its yesterday’s advance, as we can see on the daily chart ( the chart includes today’s intraday data ):

Gold is 0.8% lower this morning, as it is trading within a short-term consolidation. What about the other precious metals? Silver is 0.8% lower, platinum is virtually unchanged and palladium is 1.1% lower today. So precious metals are lower this morning.

Today we will get the ADP Non-Farm Employment Change release at 8:15 a.m., among others. The markets will be waiting for Friday’s monthly jobs data release.

Where would the price of gold go following Friday’s NFP release? We’ve compiled the data since September of 2018, a 30-month-long period of time that contains of thirty NFP releases.

The first chart shows price paths 5 days before and 10 days after the NFP release. The last three cases are marked with dashed lines. Gold lost 0.25% in February and gained 1.08% in January.

The following chart shows the average gold price path before and after the NFP releases for the past 30 months. The market was usually advancing ahead of the release day and closing 0.40% higher on the 10th day after the NFP release.

Below you will find our Gold, Silver, and Mining Stocks economic news schedule for the next two trading days:

Wednesday, March 3

  • 8:15 a.m. U.S. – ADP Non-Farm Employment Change
  • 9:45 a.m. U.S. – Final Services PMI
  • 10:00 a.m. U.S. – ISM Services PMI
  • 1:00 p.m. U.S. – FOMC Member Evans Speech
  • 2:00 p.m. U.S. – Beige Book

Thursday, March 4

  • 8:30 a.m. U.S. – Unemployment Claims, Revised Nonfarm Productivity q/q, Revised Unit Labor Costs q/q
  • 10:00 a.m. U.S. – Factory Orders m/m
  • 12:05 p.m. U.S. – Fed Chair Powell Speech
  • All Day – OPEC-JMMC Meetings

For a look at all of today’s economic events, check out our economic calendar.

Paul Rejczak
Stock Selection Strategist
Sunshine Profits: Analysis. Care. Profits.
Sign up for our free gold, stock, and oil newsletter today!

* * * * *

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.

 

Precious Metals Gain on the Back of Dollar Weakness and Lower Treasury Yields

Platinum futures gained a respectable $19.20 and are currently fixed at $1210.50. Gold bounced off an eight-month low to gain +0.78%, with the most active April 2021 Comex contract currently fixed at $1736.40, which is a net gain of $13.40 on the day.

plat march 2

Silver futures gained +0.68%, with the most active contract currently fixed at $26.88 after factoring in today’s gain of $0.20. Although it is the highest-priced precious metal traded on the futures exchange, palladium gained only +0.15%, and after factoring in today’s gain of $3.50, it is currently fixed at $2352.50 per ounce.

silver march 2

The rise in the precious metals across the board can be attributed to U.S. dollar weakness and lower yields in U.S. Treasury notes.

According to Reuters, Tai Wong, a trader at investment bank BMO in New York, “Gold’s $30 rally from the lows in Asia suggests that investors and short-term speculators are bargain-hunting and triggering short-covering as well. A close above $1,725 per ounce would be considered by many a key reversal day.”

gold march 2

The dollar index is currently trading off by -0.28% (25 points) and is currently fixed at 90.785. Concurrently, U.S. Treasury yields retraced from their one-year high, which was reached last week. Both dollar weakness coupled with falling U.S. Treasury yields were highly supportive of gold pricing, which led to today’s respectable gains.

Reuters also reported that Bob Haberkorn, senior market strategist at RJO Futures, said, “The main dilemma right now for the gold bulls is the rising short-term U.S. Treasury yields. Despite the U.S. Federal Reserve being very accommodative with stimulus, with low rates for the extended period of time, in the short term, we have to deal with these rising short-term rates.”

The question that remains is whether or not gold’s pricing has already factored in the high probability that the president’s proposal of a $1.9 trillion stimulus package will pass in the Senate. It is currently being debated this week in the Senate after Congress passed the resolution to enact president Biden’s fiscal stimulus aid proposal. Considering that last year the government spent $4 trillion to provide COVID-19 aid, this additional debt of almost $2 trillion will be directly reflected onto our national debt.

According to Statista, “Federal revenue amounted to 3.42 trillion U.S. dollars in 2020, which was about 16.3 percent of the U.S. GDP. The forecast predicts an increase in federal revenue up to 5.77 trillion U.S. dollars in 2031, which would be about 17.5 percent of the respective U.S. GDP.”

The pandemic has ravaged global economies around the world, and the United States in no way escaped the need for massive fiscal stimulus along with an extremely accommodative monetary policy by the Federal Reserve. As such, we could easily see inflationary pressure as a byproduct of these fiscal policies.

For more information on our service, simply use this link.

Wishing you, as always, good trading and good health,

Gary S. Wagner

Daily Gold News: Tuesday, Mar. 2 – Gold Bouncing From $1,700

The gold futures contract lost 0.34% on Monday, as it fluctuated after breaking below the previous local low and a support level of $1,750. The market is the lowest since mid-June of 2020. This morning gold is bouncing from $1,700 price level, as we can see on the daily chart ( the chart includes today’s intraday data ):

Gold is 0.2% higher this morning, as it is trading along yesterday’s daily close. What about the other precious metals? Silver is 1.0% lower, platinum is virtually unchanged and palladium is 0.5% lower today. So precious metals are mixed this morning.

Yesterday’s ISM Manufacturing PMI release has been better than expected at 60.8. Today we will have some Fed-talk. The markets will be waiting for Friday’s monthly jobs data release.

Below you will find our Gold, Silver, and Mining Stocks economic news schedule for the next two trading days:

Tuesday, March 2

  • 8:30 a.m. Canada – GDP m/m
  • 1:00 p.m. U.S. – FOMC Member Brainard Speech
  • 2:00 p.m. U.S. – FOMC Member Daly Speech
  • 7:30 p.m. Australia – GDP q/q
  • 8:45 p.m. China – Caixin Services PMI

Wednesday, March 3

  • 8:15 a.m. U.S. – ADP Non-Farm Employment Change
  • 9:45 a.m. U.S. – Final Services PMI
  • 10:00 a.m. U.S. – ISM Services PMI
  • 1:00 p.m. U.S. – FOMC Member Evans Speech
  • 2:00 p.m. U.S. – Beige Book

For a look at all of today’s economic events, check out our economic calendar.

Paul Rejczak
Stock Selection Strategist
Sunshine Profits: Analysis. Care. Profits.
Sign up for our free gold, stock, and oil newsletter today!

* * * * *

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.

 

Gold Futures Lag Far Behind the Other Three Precious Metals in Trading Today

However, at the same time, the three other precious metals that trade on the futures exchange gained value. Silver futures gained $0.19 (+0.70%) in trading today and are currently fixed at $26.625. Platinum futures gained $6.20 (+0.52%) and are currently fixed at $1191.50. Lastly, palladium futures gained $33 (+1.43%) and remained the most expensive of the precious metals complex at $2346.50.

gld 31

si 31

pl 31

pa march 1

The most reasonable explanation for why gold continues to underperform when valued against the other three precious metals that are traded on the futures complex is that gold has the least industrial usage when compared to platinum, palladium, and silver. That fact, coupled with the strong rally in U.S. equities markets today, is at the root of why three precious white metals have been consistently outperforming gold recently. It was another strong showing in all three major indexes, with the Dow Jones industrial average gaining 603 points (+1.95%), the Standard & Poor’s gained 90.67 points (+2.38%), and the NASDAQ composite gaining 398 points (+3.010%).

While it has been recent gains in Treasury yields that led to the strong selling pressure witnessed in gold last week, the primary factor moving equities higher and gold pricing lower is data that suggests that the economy in the United States is gaining momentum that is resulting in a rally in stocks on the first trading day of March.

As reported in MarketWatch, Jim Baird, chief investment officer at Plante Moran Financial Advisors, said, “Increasingly, it appears that the economy sidestepped a feared hard-landing despite a period of soft consumer spending that contributed to negative conditions for parts of the service sector and a surge in layoffs. If anything, it appears that manufacturers may have benefited from consumer spending habits that favored goods over services in recent months.”

One recent development has been the emergency use approval by the CDC of the Johnson & Johnson one shot coronavirus vaccine, which was greenlighted by the FDA last week. In fact, J&J began shipping their vaccine today, beginning with four 4 million doses. While not as effective as the other two primary vaccines granted emergency use (Pfizer-BioNTech and Moderna), the J&J vaccine is stable when stored in a refrigerator for three months and requires only one shot. Many medical professionals believe that this potentially could be key to the rural areas of the United States, which makes it difficult to ship and store the other vaccines at subzero temperatures.

These developments, when coupled with the passage in the Congress last week of President Biden’s $1.9 trillion aid package, have has shifted market sentiment towards the risk-on asset class rather than the safe-haven assets.

For more information on our service, simply use this link.

Wishing you, as always, good trading and good health,

Gary S. Wagner

 

Gold Forecast – Expecting a Bottom in Gold this Week

Gold is below the November low, and our Gold Cycle Indicator reached its maximum bullish reading of ZERO (0). The conditions are ripe for a bottom, in our opinion.

The uptrends in silver and platinum remain strong, and prices continue to lead gold. I see the potential for a breakout and sharp advance over the coming weeks in both these metals.

Several gold miners are back to pre-Covid price levels. I view this as an excellent long-term opportunity and believe we will look back at today’s prices as a gift.

The Gold Cycle Indicator finished the week at ZERO (0), our maximum bullish reading.

 

GOLD MONTHLY: Gold is within striking distance of the 20-Month moving average ($1697) after confirming a Bull Market Breakout in 2019. When gold is in a bull market, buying a tag of the 20-month MA is usually a good long-term opportunity. I believe this time is no different.

Chart, histogram Description automatically generated

GOLD DAILY: This week I’ll be on the lookout for signs of a bottom in gold if/when prices reach the lower intermediate trend channel (currently crossing $1685) or near the post-Covid congestion boundary encompassing $1675. Essentially, I’m looking for a bottom this week between $1665 and $1685. A temporary spike below support remains possible.

 

SILVER FORECAST: After lagging gold for years, silver is finally leading prices higher. I’ve been expecting this, and it is a very bullish sign, in my opinion.

Near-Term Outlook – Silver is consolidating in what I believe is a rounded continuation pattern. Prices could dip down towards $24.00 to maintain pattern symmetry. Ultimately, I expect a breakout above $30.00. It would take a sustained breakdown below $22.00 (the rounded bottom low) to invalidate the pattern and promote a more extended consolidation period.

GDX BREAKOUT BACKTEST: Gold miners broke out from a 7-year base in 2020. Prices are backtesting that breakout area now, and I believe we could be approaching a critical low.

Note- If I’m correct and precious metals have started a new multi-year bull market, then this might be the last time we see GDX near $30.00 for a very long time.

 

The time to be greedy is when others are fearful; I think we are almost there in gold.

I’ll be looking for leading price action from silver and platinum to signal a bottom and the next rally.

AG Thorson is a registered CMT and expert in technical analysis. He believes we are in the final stages of a global debt super-cycle. For regular updates, please visit here.

For a look at all of today’s economic events, check out our economic calendar.

Daily Gold News: Monday, March 1 – Gold’s Rebounding to $1,750

The gold futures contract lost 2.62% on Friday, as it broke below the previous local low and a short-term support level of $1,750. The market is the lowest since mid-June of 2020 following strengthening U.S. dollar, among other factors. This morning gold is trading closer to $1,750 mark again, as we can see on the daily chart ( the chart includes today’s intraday data ):

Gold is 0.6% higherer this morning, as it is retracing some of Friday’s sell-off. What about the other precious metals? Silver is 0.7% higher, platinum is 2.6% higher and palladium is 1.2% higher today. So precious metals are higher this morning.

Friday’s Personal Income/ Personal Spending release has been mixed and Chicago PMI number release has been worse than expected.

Today we will get the ISM Manufacturing PMI release, among others.

Below you will find our Gold, Silver, and Mining Stocks economic news schedule for the next two trading days:

Monday, March 1

  • 9:00 a.m. U.S. – FOMC Member Williams Speech
  • 9:05 a.m. U.S. – FOMC Member Brainard Speech
  • 9:45 a.m. U.S. – Final Manufacturing PMI
  • 10:00 a.m. U.S. – ISM Manufacturing PMI , Construction Spending m/m, ISM Manufacturing Prices
  • 11:10 a.m. Eurozone – ECB President Lagarde Speech
  • 10:30 p.m. Australia – RBA Rate Statement, Cash Rate

Tuesday, March 2

  • 8:30 a.m. Canada – GDP m/m
  • 1:00 p.m. U.S. – FOMC Member Brainard Speech
  • 2:00 p.m. U.S. – FOMC Member Daly Speech
  • 7:30 p.m. Australia – GDP q/q
  • 8:45 p.m. China – Caixin Services PMI

For a look at all of today’s economic events, check out our economic calendar.

Paul Rejczak
Stock Selection Strategist
Sunshine Profits: Analysis. Care. Profits.
* * * * *

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.

 

Commodity Prices Climb As U.S Passes Stimulus Bill – What’s Next?

After hitting multi-year highs, commodity prices pulled back on the final trading day in February as traders booked profits.

Copper prices rallied throughout February hitting a 10-year high – up over 60% since the start of the year. Copper is not the only metal that has seen monumental gains in 2021.

The most impressive metal has to be Platinum, which surged to a six-and-a-half-year high last week. A year ago, Platinum was trading at $526 an ounce. Last week, it’s trading near $1,300 an ounce – up over 147%, in the past 12 months.

Platinum’s explosive rally also pulled sister metal Palladium higher, which is now up 70% in the past 12 months.

Elsewhere, Oil prices soared above $65 a barrel to hit 13-month highs – up over 260% from the lows seen in April 2020.

In total 27 commodities – ranging from the metals, energies to soft commodities have all posted double to triple digit gains over the last six months to date and this is just the beginning.

Looking ahead to this week, the key events that traders will be watching closely for clues on the markets next big move include; a host speeches from a number of Fed speakers, including Fed Chair Powell. ADP Employment Change and Jobless Claims as well as the biggest event of the week – Non-Farm Payrolls data on Friday.

Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:

Daily Gold News: Friday, Feb. 26 – Gold at New Low and Closer to $1,750

The gold futures contract lost 1.25% on Thursday, as it retraced all of its Monday’s rebound of 1.7%. Last week it broke below the previous local low and $1,800 price level. The market gave back all of December’s advance. This morning gold is trading at new local low, as we can see on the daily chart ( the chart includes today’s intraday data ):

Gold is 0.6% lower this morning, as it is trading closer to $1,750 price level. What about the other precious metals? Silver is 2.8% lower, platinum is 2.3% lower and palladium is 2.4% lower today. So precious metals are lower again this morning.

Yesterday’s Preliminary GDP release has been slightly worse than expected at +4.1% and Unemployment Claims number has been better than expected at 730,000.

Today we will get Personal Income/ Personal Spending numbers, Chicago PMI , Consumer Sentiment releases, among others.

Below you will find our Gold, Silver, and Mining Stocks economic news schedule for today:

Friday, February 26

  • 8:30 a.m. U.S. – Personal Income m/m, Personal Spending m/m, Core PCE Price Index m/m, Goods Trade Balance, Preliminary Wholesale Inventories m/m
  • 9:45 a.m. U.S. – Chicago PMI
  • 10:00 a.m. U.S. – Revised UoM Consumer Sentiment, Revised UoM Inflation Expectations
  • All Day – G20 Meetings

For a look at all of today’s economic events, check out our economic calendar.

Paul Rejczak
Stock Selection Strategist
Sunshine Profits: Analysis. Care. Profits.
* * * * *

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.

 

Bond Yields Surge Lead to a Significant Sell-off in Financials and Precious Metals

The hardest-hit stock indexes today were undoubtedly the NASDAQ composite and the Russell 2000. The NASDAQ composite experienced its worst trading day in four months, giving up
– 3.45%, or 460 points, to close at 13,138.5143.

Nasdaq

The Dow Jones Industrial Average recovered slightly from the intraday low in which the Dow traded roughly 650 points lower. The net result of selling pressure in the Dow was a drawdown of – 1.75%, or 559.85 points taking that average to 31,402.01. The S&P 500 lost 2.45% or a decline of 95.18 points, with that index closing at 3829.25.

The precious metals complex lost significant ground, with gold futures losing $25.80, or – 1.44%, with the most active April 2021 Comex contract closing at $1772.90. Silver also had a significant decline of -1.85% or $0.51.4, with the March 2021 Comex contract closing at $27.345. Platinum futures also felt the selling pressure losing 2.68%, or $33.70 on the day, with the most active April 2021 Comex contract currently fixed at $1224.20.

gold

gold weekly

The underlying event that led to the mass-selling frenzy that occurred today was rising yields in U.S. bonds. The 10-year Treasury note traded to its highest value in a year.

10 year note

According to MarketWatch, “A rise in bond yields, with the 10-year Treasury note TMUBMUSD10Y, 1.519% advancing to above a psychological threshold at around 1.5%, has put pressure on stocks and gold, forcing investors to reassess the relative value of owning either asset against the backdrop of richer rates from risk-free Treasuries.”

There is a contradiction between the recent rise in U.S. bonds and note yields and the Federal Reserve’s current mandate to maintain interest rates between zero and 25 basis points throughout 2021 and into 2022.

The critical difference between investors’ market sentiment and the Federal Reserve’s current mandate is the timeline in which traders versus the Federal Reserve believe it will stabilize the economy. The Federal Reserve remains more cautious and has vowed to keep interest rates exceedingly low. However, market participants are more bullish in terms of the timeline and have been bidding yields on bonds and notes higher.

According to Reuters, members of the Federal Reserve “are shrugging off the surge in longer-term U.S. government bond yields as a sign of growing optimism about the economy, which could pick up steam as more people receive vaccinations against the coronavirus.” The report also cited that “Fed officials said the increase in yields is a reflection of the confidence that a robust economic recovery is on the horizon for the second half of the year, as more vaccines are distributed and with more fiscal stimulus likely on the way.”

The Kansas City Fed President Esther George told farm executives and a virtual event today that, “Much of this increase likely reflects growing optimism in the strength of the recovery and could be viewed as an encouraging sign of increasing growth expectations.”

The majority of Federal Reserve members believe that the recent rise in bond yields does not warrant a central bank response.

The Federal Reserve will continue its current course and mandate of maximum employment by keeping interest rates low and the continued purchase of $120 billion a month in government bonds and mortgage-backed securities. This will continue until the economy is much stronger and headed towards recovery to pre-pandemic days.

For more information on our service, use this link.

Wishing you, as always, good trading and good health,

Gary S. Wagner

Daily Gold News: Thursday, Feb. 25 – Gold Below $1,800 Again

The gold futures contract lost 0.44% on Wednesday, as it retraced some of its Monday’s rebound of 1.7%. Last week it broke below the previous local low and $1,800 price level. The market gave back all of December’s advance. This morning gold is trading along yesterday’s daily low, as we can see on the daily chart ( the chart includes today’s intraday data ):

Gold is 1.1% lower this morning, as it is trading well below $1,800 price level again. What about the other precious metals? Silver is 0.1% lower, platinum is 1.0% lower and palladium is 0.8% lower today. So precious metals are lower this morning.

Today we will get series of economic data releases including the Preliminary GDP number and Unemployment Claims.

Below you will find our Gold, Silver, and Mining Stocks economic news schedule for the next two trading days:

Thursday, February 25

  • 8:30 a.m. U.S. – Preliminary GDP q/q, Durable Goods Orders m/m, Core Durable Goods Orders m/m, Unemployment Claims, Preliminary GDP Price Index q/q, FOMC Member Bostic Speech
  • 10:00 a.m. U.S. – Pending Home Sales m/m
  • 11:10 a.m. U.S. – FOMC Member Quarles Speech
  • 12:00 a.m. U.S. – FOMC Member Bostic Speech

Friday, February 26

  • 8:30 a.m. U.S. – Personal Income m/m, Personal Spending m/m, Core PCE Price Index m/m, Goods Trade Balance, Preliminary Wholesale Inventories m/m
  • 9:45 a.m. U.S. – Chicago PMI
  • 10:00 a.m. U.S. – Revised UoM Consumer Sentiment, Revised UoM Inflation Expectations
  • All Day – G20 Meetings

For a look at all of today’s economic events, check out our economic calendar.

Paul Rejczak
Stock Selection Strategist
Sunshine Profits: Analysis. Care. Profits.
* * * * *

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.

 

Daily Gold News: Wednesday, Feb. 24 – Gold’s Short-Term Uncertainty

The gold futures contract lost 0.14% on Tuesday, as it fluctuated following Monday’s rebound of 1.7%. Last week it broke below the previous local low and $1,800 price level. The market gave back all of December’s advance. Today gold is extending a short-term consolidation, as we can see on the daily chart ( the chart includes today’s intraday data ):

Gold is 0.1% higher this morning, as it is trading along yesterday’s daily close. What about the other precious metals? Silver is 0.6% higher, platinum is 2.1% higher and palladium is 1.4% higher today. So precious metals are higher this morning.

Yesterday’s Consumer Confidence release has been slightly better than expected at 91.3. This morning we will have the Fed Chair Powell ’s testimony and some more Fed-talk later in the day.

Below you will find our Gold, Silver, and Mining Stocks economic news schedule for the next two trading days:

Wednesday, February 24

  • 10:00 a.m. U.S. – Fed Chair Powell Testimony , New Home Sales
  • 10:30 a.m. U.S. – FOMC Member Brainard Speech
  • 1:00 p.m. U.S. – FOMC Member Clarida Speech
  • 4:00 p.m. U.S. – FOMC Member Clarida Speech

Thursday, February 25

  • 8:30 a.m. U.S. – Preliminary GDP q/q, Durable Goods Orders m/m, Core Durable Goods Orders m/m, Unemployment Claims, Preliminary GDP Price Index q/q, FOMC Member Bostic Speech
  • 10:00 a.m. U.S. – Pending Home Sales m/m
  • 11:10 a.m. U.S. – FOMC Member Quarles Speech
  • 12:00 a.m. U.S. – FOMC Member Bostic Speech

For a look at all of today’s economic events, check out our economic calendar.

Paul Rejczak
Stock Selection Strategist
Sunshine Profits: Analysis. Care. Profits.

* * * * *

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.

 

Daily Gold News: Tuesday, Feb. 23 – Gold’s Rebound, Back Above $1,800

The gold futures contract gained 1.74% on Monday, as it broke above a short-term consolidation following recent declines below $1,800 price level. Earlier this month it broke below the previous local low in a reaction to strengthening U.S. dollar and rallying stock market, among other factors. The market gave back all of December’s advance. Gold is above $1,800 level again, as we can see on the daily chart ( the chart includes today’s intraday data ):

Gold is 0.1% higher this morning, as it is trading along yesterday’s daily close. What about the other precious metals? Silver is 0.7% lower, platinum is 1.3% lower and palladium is 1.8% lower today. So precious metals are mixed this morning.

Today we will get the Consumer Confidence release and Fed Chair Powell ’s testimony at 10:00 a.m.

Below you will find our Gold, Silver, and Mining Stocks economic news schedule for the next two trading days:

Tuesday, February 23

  • 9:00 a.m. U.S. – HPI m/m, S&P/CS Composite-20 HPI y/y
  • 10:00 a.m. U.S. – Fed Chair Powell Testimony , CB Consumer Confidence, Richmond Manufacturing Index
  • 12:30 p.m. Canada – BOC Governor Macklem Speech

Wednesday, February 24

  • 10:00 a.m. U.S. – Fed Chair Powell Testimony , New Home Sales
  • 10:30 a.m. U.S. – FOMC Member Brainard Speech
  • 1:00 p.m. U.S. – FOMC Member Clarida Speech
  • 4:00 p.m. U.S. – FOMC Member Clarida Speech

For a look at all of today’s economic events, check out our economic calendar.

Paul Rejczak
Stock Selection Strategist
Sunshine Profits: Analysis. Care. Profits.
Sign up for our free gold, stock, and oil newsletter today!

* * * * *

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.

 

Commodity Prices Rise As Traders Await Fed – What’s Next?

Last week, Silver, Platinum and Copper took centre-stage – rocketing to multi-year highs on hopes that rising demand for industrial metals in 2021 will surpass supply and support a long-term rally.

The industrial metals complex is expected to benefit from tight supplies, strong investment demand and the global recovery – positioning this specific group of metals as one of the most lucrative asset classes to watch in 2021.

Silver prices edged higher on Friday, trading near $27 an ounce, only $3 away from its February peak. Meanwhile, Copper prices rallied for a fifth straight session, hitting a 10-year high – up over 60% since the start of the year.

Copper is not the only industrial metals that has seen monumental gains in 2021.

The most impressive metal has to be Platinum, which surged to a six-and-a-half-year high on Friday. A year ago today, Platinum was trading at $526 an ounce. Currently, it’s trading near $1,300 an ounce – up over 147%, in the past 12 months.

Elsewhere, after a healthy correction last week, Gold prices are trading solidly higher on Monday, back above $1,800 an ounce.

Looking ahead to this week, the key events that traders will be watching closely for clues on the markets next big move include; Federal Reserve Chair Jerome Powell’s testimony, U.S Q4 GDP and Core PCE price data.

Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:

For a look at all of today’s economic events, check out our economic calendar.

 

Daily Gold News: Monday, Feb. 22 – Gold Price Remains Close to $1,800

The gold futures contract gained 0.14% on Friday, as it extended its short-term consolidation after the recent decline below $1,800 price level. Earlier this month it broke below the previous local low following strengthening U.S. dollar and rallying stock market, among other factors. The market gave back all of December’s advance. Gold is getting close to $1,800 level again, as we can see on the daily chart ( the chart includes today’s intraday data ):

Gold is 0.7% higher this morning, as it is retracing some of last week’s decline. What about the other precious metals? Silver is 0.4% higher, platinum is 0.3% lower and palladium is virtually unchanged today. So precious metals are higher this morning.

Friday’s U.S. Flash Manufacturing PMI, Flash Services PMI releases have been slightly better than expected. Today we will get the CB Leading Index release at 10:00 a.m. and some Fed-talk at 3:30 p.m.

The markets will be waiting for this week’s Fed Chair Powell ’s testimony.

Below you will find our Gold, Silver, and Mining Stocks economic news schedule for the next two trading days:

Monday, February 22

  • 4:00 a.m. Eurozone – German ifo Business Climate
  • 9:30 a.m. Eurozone – ECB President Lagarde Speech
  • 10:00 a.m. U.S. – CB Leading Index m/m
  • 3:30 p.m. U.S. – FOMC Member Bowman Speech
  • All Day, Japan – Bank Holiday

Tuesday, February 23

  • 9:00 a.m. U.S. – HPI m/m, S&P/CS Composite-20 HPI y/y
  • 10:00 a.m. U.S. – Fed Chair Powell Testimony , CB Consumer Confidence, Richmond Manufacturing Index
  • 12:30 p.m. Canada – BOC Governor Macklem Speech

For a look at all of today’s economic events, check out our economic calendar.

Paul Rejczak
Stock Selection Strategist
Sunshine Profits: Analysis. Care. Profits.
Sign up for our free gold, stock, and oil newsletter today!

* * * * *

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.

 

Why Gold Is Underperforming When Compared To The Other Precious Metals

There are many potential reasons for this occurrence, but one of the primary underlying forces is the incredible gains witnessed during the pandemic in the U.S. equities markets. While it might be said that market participants are incredibly over-optimistic, one clear fact remains, and that is those market participants, when looking at U.S. equities, are forward-thinking. In other words, they’re looking as to what will happen in the future rather than focusing on the current economic scenario.

With that optimism and the ability to look forward and focus upon significant upcoming technological transformations, it is the precious metals widely used in new applications that will experience the most significant benefit in terms of price gains. The move away from fossil fuels to solar energy is just one example. Silver is a precious metal that is essential in the creation of solar panels. As the world moves to more solar power, more silver will be needed, and prices will benefit from that. Another prominent example is the transformation in the automotive industry.

Why the use of platinum and palladium will continue to grow

Before electric and hydrogen cell vehicles, the only real use for platinum and palladium was in catalytic converters because their chemical properties can remove dangerous and hazardous byproducts that result from combustion engines. Currently, platinum is used widely in the chemical industry because its properties can be a catalyst and bind with nitric acid, silicon, and benzene. However, in the future, one of its primary uses could be to improve the efficiency of fuel cells as well as continued use for computer hard disks and thermocouples.

Platinum is also the heaviest of all of the precious metals, weighing twice as much as gold. This precious metal is also ten times rarer than gold.

The six naturally occurring isotopes allow this precious metal to be primarily used for vehicle emission control devices, accounting for 45% of its use. To this day, its most common use is as a catalyst to enable the complete combustion of unburned hydrocarbons from the exhaust into carbon dioxide and water vapor.

Another major factor that will support higher pricing in the future is that platinum, unlike gold and silver, cannot be readily isolated in a comparatively pure state by simple fire refining. In other words, it requires a complex aqueous chemical process.

It is due to the reasons we spoke about above that the three precious white metals (silver, palladium and platinum) are going to be necessary and instrumental in the future as new applications are developed. Used in technology such as new battery technology and a major component used in the creation of hydrogen fuel cells. The future of these metals seems to shine extremely bright. Although gold is used in technology, it appears that platinum and silver’s chemical properties will continue to find their way into new technologies and therefore draw a greater demand.

plat

For those who want more information, please use this link.

Wishing you, as always, profitable trading and good health,

Gary S. Wagner

 

Daily Gold News: Friday, Feb. 19 – Gold Still Below $1,800 Price Mark

The market gave back all of December’s advance. Gold is now below its recent local low, as we can see on the daily chart ( the chart includes today’s intraday data ):

Gold is 0.2% lower this morning, as it is trading along yesterday’s closing price. What about the other precious metals? Silver is 0.1% higher, platinum is 0.2% lower and palladium is 0.4% lower today. So precious metals are mixed this morning.

Yesterday’s Unemployment Claims release has been worse than expected at 861,000. Today we will get the U.S. Flash Manufacturing PMI, Flash Services PMI releases at 9:45 a.m. and the Existing Home Sales release at 10:00 a.m.

Below you will find our Gold, Silver, and Mining Stocks economic news schedule for today:

Friday, February 19

  • 3:15 a.m. Eurozone – French Flash Services PMI, French Flash Manufacturing PMI
  • 3:30 a.m. Eurozone – German Flash Manufacturing PMI, German Flash Services PMI
  • 9:45 a.m. U.S. – Flash Manufacturing PMI, Flash Services PMI
  • 10:00 a.m. U.S. – Existing Home Sales
  • Tentative, U.S. – Fed Monetary Policy Report

Paul Rejczak
Stock Selection Strategist
Sunshine Profits: Analysis. Care. Profits.
Sign up for our free gold, stock, and oil newsletter today!


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.

Is Silver Price On The Verge of Another Breakout?

This week, traders shifted their attention from Gold to Silver, Platinum and Copper. The industrial metals complex is expected to benefit from tight supplies, strong investment demand and the global recovery – positioning this specific group of metals as one of the hottest asset classes to watch in 2021.

While big moves in Gold prices remain inevitable down the road, the monetary metal is currently taking a back seat to the industrial metals.

Tesla is another factor driving bullish sentiment for the industrial metals complex.

In the last filing with the SEC, Tesla stated that “In January 2021, we updated our investment policy to provide us with more flexibility to further diversify and maximize returns on our cash that is not required to maintain adequate operating liquidity. We may invest a portion of such cash in certain alternative reserve assets including bullion, precious metals-related exchange-traded funds and other assets as specified in the future.”

Although Elon musk has not tweeted about acquiring any specific precious metal holdings since last year, the statements above to the SEC clearly indicate his intent to diversify out of the U.S. dollar.

Silver prices are currently trading near $27 an ounce, only $3 away from its February peak. Elsewhere, Platinum held onto its gains made early this week – trading near a six-and-a-half-year high. Whilst Copper prices jumped to a nine-year high on Friday.

Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions: