Gold extended to the upside on Tuesday, gaining more than 1% intraday and reaching 5-week highs. The yellow metal traded with a 16-handle for the first time since the Iranian's fired missiles at U.S. positions in Iraq in early January.

Gold continues to garner support from safe-haven buying amid ongoing concerns that the coronavirus is likely to have a significant impact on global growth. Additionally, expectations are mounting that governments and global central banks will unleash additional stimulus in an effort to support the economy. That too is providing some lift for gold.

Spot Gold Daily Chart

Spot Gold Daily Chart

The World Health Organization put the total number of coronavirus cases at 73,332 and the death toll at 1,873 on Tuesday.

Apple warned today that the coronavirus related disruptions in China are likely to impact both iPhone and iPad supplies, adversely affecting revenue. Similar supply chain disruptions are likely to manifest throughout the global economy.

Silver seemed to put on its 'safe-haven hat' today, posting a 2% gain and closing above $18 for the first time since 27-Jan. That pushed the gold/silver ratio back below 88.00, favoring a test of support at 87.54.

Silver appears destined to challenge chart resistance marked by the 18.35 high from 27-Jan. An eventual breach of this level would return focus to the early-January high at 18.86.

Platinum surged more than 2% to a 3-week high, while palladium charged to a new all-time high of 2636.50. Besides the ongoing palladium supply deficit, our morning newsletter suggested that investors are increasingly viewing Pd as a "tighter supplied safe-haven and a very compact store of portable assets."

The New York Johnson Matthey base prices for rhodium hit a new all-time high of $12,000 today, with little to suggest the parabolic rise is nearing an end.


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