Precious metals start the new year with upward rallies

So far, precious metals seem to be having a good year. Following an official announcement from the People’s Bank of China about economic stimulus, the precious metals were seen trading higher on Thursday.

Palladium, Gold, Silver, And Platinum Welcome The New Year With Bullish Patterns

Palladium was reported to have hit the $1,943.23 per ounce mark. This marked a 0.36% increase for the metal or $6.91 on Thursday. Gold, on the other hand, added $8.77 on Thursday and was seen trading around $1,525.88 this morning. As per the analysts, Gold printed an around 0.58% increase on Thursday. The hike in silver, however, was not as pronounced as its siblings. With a small gain of 1.28% or only 23 cents today, the precious metal traded around $18.05 on Thursday. Lastly, with a significant 2.36% increase in Platinum, the metal added $22.82 on Thursday to hit the $988.10 per ounce mark.

Following the trade optimism circling the negotiations between the United States of America and China, global financial markets including the stock and commodities market has welcomed the new year with an upbeat trend. The bullish bias has remained in sight in 2019’s second half and by the look of it, it is here to stay in the first quarter of 2020.

The People’s Bank of China had announced on Wednesday that it is cutting the requirement of minimum cash to be held as reserves for all banks by a massive $115 billion. The move is directed at giving a boost to China’s economy that has hinted stagnancy in the past few months. China’s manufacturing activity, however, has ended the last year in expansion.

Gold Failed To Pronounce A Strong Support At $1,500 Level

According to the technical analysts, Palladium is currently showing a moderate bullish pattern in the short term. On the other hand, analysis of the charts highlights that there is also a probability that the precious metal is aiming for an upper degree corrective move that may change its pattern rather quickly in the upcoming weeks.

The analysts further add that Gold is currently in a strong bullish trend as well. The metal, however, has failed to find strong support at around $1,500 level that keeps it open to an imminent short-term pullback. Nonetheless, as long as the pair trades above this level, further upward rallies can be expected. Breaking below the $1,500 level will slowly start to turn the signal red for the precious metal.