Gold (+1.28%) and Silver (+2.55%) traded higher today as the impact of the coronavirus brings continuous fear to the financial markets.
Gold futures ($1,591.90) up $5.50/ounce and Silver futures ($17.915) up $0.18/ounce during Tuesday’s pre-market trading.
The precious metals saw a boost during pre-market trading after Apple (APPL) released that the coronavirus would have a material impact on their iPhone sales. This also created a dent in Apple’s suppliers as Qualcomm (QCOM), Broadcom (AVGO), and Skyworks Solutions (SWKS), all traded lower down -1.6%, -2.38% and -1.59% respectively.
Walmart’s (WMT) missed earnings report has also brought uncertainty to international markets. The company reported its first earnings miss in nearly two years, as they struggled during the holiday season. The company posted EPS of $1.38 per share on revenue of $141.7 billion, vs. $1.43 per share and $142.5 billion expected.
The Coronavirus continues to spread at a rapid pace, despite China’s efforts to effectively manage and quarantine unaffected populations. The death toll for the novel Coronavirus continues to rise. The virus has killed at least 1,868 people and the infection count for mainland China has reached 72,436.
Gold has been showing tremendous resilience, despite the U.S. stock market trading slightly below record highs. Gold’s technical breakout level was over ($1,592.40) meaning the bulls are in full control. If the markets continue to pull back this week you can expect Gold to breakout above previous January highs of ($1,619.60).
Silver is another precious metal that commonly moves with the price of Gold. Silver has been considered an extremely undervalued asset, in comparison to its Gold counterpart. An important price level to watch next is Silver’s break of ($18.33). Silver’s next technical breakout is over ($18.40), which could advance the metals strength and lead to higher prices. You can expect continued momentum in Silver as Gold battles for a new yearly high.