Gold extended its advance yesterday due to weaker economic data.
The gold futures contract gained 0.40% on Wednesday, August 30 as it extended its Tuesday’s advance of 0.9%. On Tuesday it retraced more of the recent declines following worse-than-expected employment data release. The market was rallying due to a weaker U.S. dollar and advancing stock markets amidst reduced pressure for the further monetary policy tightening. Recently gold was trading along the $1,925 level. after breaking slightly below the $1,920 level. Yesterday it was as high as $1,977. On July 31 gold’s December futures contract reached a local high of $2,010.90 and last week on Monday it was the lowest since early July.
On June 29 gold was the lowest since mid-March (the low was at $1,900.60). In May gold retreated from new medium-term high of $2,085.40 and in early March it was selling off after the Fed Chief Powell’s hawkish testimony. Then it rebounded from a local low of around $1,813.
Today gold is trading slightly below yesterday’s closing price as we can see on the daily chart (the chart includes today’s intraday data):
The gold price is 0.1% lower this morning as it is trading along the $1,970 level. What about the other precious metals? Silver is 0.2% lower platinum is 0.1% lower and palladium is 0.1% lower. So the main precious metals’ prices are slightly lower this morning.
Yesterday’s ADP Non-Farm Employment Change release has been lower than expected at +177,000 and the Preliminary GDP release has been also lower than expected at +2.1% q/q. Today we will get the Core PCE Price Index m/m and Unemployment Claims releases at 8:30 a.m., among others.
Below you will find our Gold, Silver, and Mining Stocks economic news schedule for the next two trading days (EST Timezone).
Thursday, August 31
- 5:00 a.m. Eurozone - CPI Flash Estimate y/y, Core CPI Flash Estimate y/y
- 8:30 a.m. U.S. - Core PCE Price Index m/m, Unemployment Claims, Personal Income m/m, Personal Spending m/m
- 9:45 a.m. U.S. - Chicago PMI
- 9:45 p.m. China - Caixin Manufacturing PMI
Friday, September 1
- 8:30 a.m. U.S. - Non-Farm Employment Change, Unemployment Rate, Average Hourly Earnings m/m
- 8:30 a.m. Canada - GDP m/m
- 9:45 a.m. U.S. - Final Manufacturing PMI
- 10:00 a.m. U.S. - ISM Manufacturing PMI, ISM Manufacturing Prices, Construction Spending m/m
Paul Rejczak
Stock Trading Strategist