The gold futures lost a stunning 4.63% on Friday following risk-on assets’ rebound. Yellow metal fell the lowest since late December. Earlier last week the market bounced off new medium-term high of $1,704.30. Two weeks ago the gold price collapsed to the local low of $1,564 despite an ongoing corona virus scare. However, the gold price retraced all of the decline recently, as virus fears reappeared. Then on Thursday and Friday it has reversed sharply lower. Today gold is trading below $1,500.
Gold is 4.9% lower this morning, as it breaks below $1,500 level. What about the other precious metals? Silver lost 9.40% on Friday and today it is 14.3% lower! Platinum lost 4.85% yesterday and this morning it is down another 12.2%. Palladium crashed 21.19% yesterday and today it is 13.0% lower.
The financial markets react to a sudden Fed’s interest rate cut decision and the new QE announcement. The stock market is crashing along with precious metals prices. The scheduled economic data releases are much less important than virus crisis developments. However, investors will likely await tomorrow’s German ZEW Economic Sentiment and the U.S. Retail Sales releases.