Markets in the U.S. shrugged off coronavirus concerns on Tuesday even as total confirmed cases climbed past 24,000 and the death toll approached 500. U.S. investors seemed to find encouragement in the fact that total cases here in the States have grown slowly and presently stands at 11.
With the return of risk appetite, we saw movement out of gold and back into stocks. The yellow metal fell to new 1-week lows, resulting in an outside week and pretty significant divergence in the RSI on the weekly chart.
The technical setup is pretty negative at this point, but market focus could easily swing back to the coronavirus, reinvigorating haven interest. The next supports to watch at 1546.31 and 1535.94. A rebound above 1575.00 would ease short term pressure on the downside.
Silver closed lower, back at the 50- and 100-day SMAs. Silver still looks vulnerable, but the downside was limited by perhaps some tapering of growth risk concerns.
Platinum closed higher after failing to sustain intraday losses below the 9-day SMA. Palladium on the other hand surged back above 2400.00, notching nearly a 5% gain and a second consecutive higher close.
Even copper finally broke its 10-day losing streak, mounting a 1.6% rally. While the critical 2.50 level has held on a close basis, I don’t think the red metal is out of the woods yet.
Rhodium continues to ignore all external influences, establishing yet another new record high of 10,700 based on the Johnson Matthey New York base price.
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