Daily Gold News: Gold Going Sideways Despite Fed Talks, Tweets
The gold futures contract lost 0.59% on Tuesday as it extended its short-term consolidation. Yesterday's volatility increased after the US president closed business talks. Overall, however, the market continues to move sideways. Gold recently rallied around $ 1,800 through August 7, hitting a record high of $ 2,089.20 in response to the dollar surge. Then gold rebounded from the support level marked by the local mid-August low of around USD 1,875 as we can see on the daily chart (the chart includes today's intraday data):
Gold is up 0.5% yesterday in New York this morning as it extends a short-term consolidation. What about the other precious metals? Silver lost 2.60% on Tuesday and is up 2.1% today. Platinum lost 3.80% and is 1.0% higher today. Palladium gained 0.54% on Tuesday and is 0.1% higher today. Precious metals are usually a bit higher this morning.
Fed Chairman Powell's speech yesterday wasn't as much of a game changer as Donald Trump's tweet later in the day. Today we will have further Fed talks along with the release of the FOMC meeting minutes at 2:00 p.m. CET.
Let's focus on the Nonfarm Payrolls release last Friday. Where will the gold price go after last week's news? We have compiled the data since September 2018, a 25-month period that includes 25 versions of NFPs. The first graph shows the price paths 5 days before and 10 days after NFP is published. The last three cases are marked with dashed lines. Gold gained around 1% in July and September, but lost nearly 4% in August.
The graph below shows the average gold price path before and after the NFP publications over the past 25 months. The market typically fluctuated for a week before rising 0.46% and closing on the 10th day after the monthly Nonfarm Payrolls release.
Below is our gold, silver, and mining stocks economic news schedule for the next two trading days:
Wednesday October 7th
8:10 a.m. Eurozone - speech by ECB President Lagarde
1:00 pm. USA - FOMC member Kashkari Speech
2:00 p.m. USA - FOMC minutes, speech by FOMC member Williams
3:00 p.m. USA - FOMC member Williams Speech
9.45 p.m. China - Caixin Services PMI
Thursday October 8th
8:30 a.m. USA - Unemployment Claims
8:30 a.m. Canada - Speech by BOC Governor Macklem
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Disclaimer of liability
All of the above articles, research and information are only analyzes and opinions of Paul Rejczak and Sunshine Profits employees. As such, it may prove to be incorrect and may be changed without notice. Opinions and analyzes were based on data available to the authors of the respective articles at the time of writing. Although the information provided above is based on careful research and sources believed to be accurate, Paul Rejczak and his staff do not guarantee the accuracy or thoroughness of any reported data or information. The opinions published above are neither an offer nor a recommendation to buy or sell any securities. Mr. Rejczak is not a registered securities advisor. By reading Paul Rejczak's reports, you fully agree that he will not be responsible or liable for any decisions that you make regarding the information contained in these reports. Investing, trading and speculating in financial markets can carry a high risk of loss. Paul Rejczak, Sunshine Profits employees and affiliates and their families may have a short or long position in any securities, including those referred to in the reports or articles, and may make additional purchases and / or sales of such securities without notice.
This article was originally published on FX Empire
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