Gold is trading above $2,070 ahead of the key inflation data.
The gold futures contract gained 0.18% on Thursday, December 21, as it extended a short-term consolidation along the $2,050 level. Gold went sideways after rallying in a 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 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 breaking above its recent trading range as we can see on the daily chart (the chart includes today’s intraday data):
The gold price is 1.1% higher as it is trading above $2,070. What about the other precious metals? Silver is 0.7% higher, platinum is 0.5% higher and palladium is 0.9% higher. So the main precious metals’ prices are higher this morning.
Yesterday’s Final GDP release has been lower than expected at +4.9% q/q, and the Unemployment Claims release has also been lower than expected at 205,000. Today we will get the important Core PCE Price Index release 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).
Friday, December 22
- 2:00 a.m. U.K. - Retail Sales m/m
- 8:30 a.m. U.S. - Core PCE Price Index m/m, Durable Goods Orders m/m, Core Durable Goods Orders m/m, Personal Income m/m, Personal Spending m/m
- 8:30 a.m. Canada - GDP m/m
- 10:00 a.m. U.S. - Revised UoM Consumer Sentiment, New Home Sales, Revised UoM Inflation Expectations
Monday, December 25
- All Day - Bank Holiday
Paul Rejczak
Stock Trading Strategist