Gold price extends its downtrend, as markets await further monetary tightening.
The gold futures contract lost 0.53% on Friday, Feb. 24, as it further extended the downtrend. Recently gold broke below its local lows on monetary policy tightening fears, among other factors. Earlier the market bounced down from the $1,850 level following a week-long consolidation.
On February 2 gold reached new medium-term high of $1,975.02. Then gold retraced its month-long advance on renewed monetary policy tightening fears. In early January it has been advancing on weaker U.S. dollar and then it fluctuated after Central Banks’ monetary policy releases, stock markets’ volatility.
Today gold is trading along the new local low, as we can see on the daily chart (the chart includes today’s intraday data):
The gold price is 0.1% higher this morning, as it is trading slightly below the $1,820 level. What about the other precious metals? Silver is 0.3% lower, platinum is 1.7% higher and palladium is 0.9% higher. So the main precious metals’ prices are mixed this morning.
Friday’s important Core PCE Price Index release has been higher than expected at +0.6% m/m. Today we will get the Durable Goods Orders and Pending Home Sales numbers release. However, investors will be waiting for tomorrow’s CB Consumer Confidence release, among others.
Below you will find our Gold, Silver, and Mining Stocks economic news schedule for the next two trading days.
Monday, February 27
- 8:30 a.m. U.S. - Durable Goods Orders m/m, Core Durable Goods Orders m/m
- 10:00 a.m. U.S. - Pending Home Sales m/m
- 11:10 p.m. Japan - BOJ Governor-Designate Ueda Speech
Tuesday, February 28
- 8:30 a.m. U.S. - Goods Trade Balance, Preliminary Wholesale Inventories m/m
- 8:30 a.m. Canada - GDP m/m
- 9:00 a.m. U.S. - HPI m/m, S&P/CS Composite-20 HPI y/y
- 9:45 a.m. U.S. - Chicago PMI
- 10:00 a.m. U.S. - CB Consumer Confidence, Richmond Manufacturing Index
- 2:30 p.m. U.S. - FOMC Member Goolsbee Speech
- 7:30 p.m. Australia - CPI y/y, GDP q/q
Paul Rejczak
Stock Trading Strategist