Gold extends its short-term consolidation; the market remains close to $2,050.
The gold futures contract gained 0.57% on Tuesday, December 19 as it extended a consolidation along the $2,050 level. Gold went sideways after rallying in reaction to last Wednesday’s FOMC Statement release. Last week the market was extending its downtrend, and on Wednesday it reached the daily low of $1,987.90. The yellow metal fluctuated following the previous Monday’s extraordinary price action and a downward reversal from new all-time high price of $2,152.30. It traded below $2,000 mark on stronger U.S. dollar, uncertainty concerning this week’s economic data. After the Fed’s release gold rallied back closer to $2,050 price level.
On October 6 gold reached new medium-term low of $1,823.50. It was the lowest since early March, but then the market bounced and rallied above $2,000.
This morning gold is trading sideways again as we can see on the daily chart (the chart includes today’s intraday data):
The gold price is 0.3% lower as it is trading slightly below $2,050. What about the other precious metals? Silver is 0.2% lower, platinum is 0.6% lower and palladium is 2.2% lower. So the main precious metals’ prices are slightly lower this morning.
Yesterday’s Building Permits and Housing Starts releases have been mixed. Today we will get the important CB Consumer Confidence release at 10:00 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).
Wednesday, December 20
- 2:00 a.m. U.K. - CPI y/y, Core CPI y/y
- 8:30 a.m. U.S. - Current Account
- 10:00 a.m. U.S. - CB Consumer Confidence, Existing Home Sales
Thursday, December 21
- 8:30 a.m. U.S. - Final GDP q/q, Unemployment Claims, Final GDP Price Index q/q, Philly Fed Manufacturing Index
- 8:30 a.m. Canada - Retail Sales m/m, Core Retail Sales m/m
- 10:00 a.m. U.S. - CB Leading Index m/m
Paul Rejczak
Stock Trading Strategist