Gold is retracing yesterday’s advance; more economic data in focus.
The gold futures contract gained 0.80% on Wednesday, January 31, as it continued its short-term uptrend following the FOMC monetary policy release. Recently the market was extending a consolidation after its mid-January sell-off. Last Thursday, gold was at the lowest point since December 13, but it quickly recovered losses, remaining above $2,000 mark.
In late December, gold bounced from the $2,100 level, and recently it was going sideways after breaking below the previous local lows. Earlier, the yellow metal fluctuated following its December 4 extraordinary price action and a downward reversal from new all-time high price of $2,152.30. Then, it traded below $2,000 mark on stronger U.S. dollar, uncertainty concerning economic data. After the Fed’s release gold rallied back above $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 retracing its yesterday’s advance, as we can see on the daily chart (the chart includes today’s intraday data):
The gold price is 0.9% lower, as it is trading along the $2,050 level. What about the other precious metals? Silver is 1.8% lower, platinum is 1.1% lower and palladium is 1.4% lower. So the main precious metals’ prices are lower this morning.
Yesterday’s Fed Rate Decision led to an increased volatility and stronger U.S. dollar. Today we will get the Unemployment Claims and ISM Manufacturing PMI releases, among others.
Below you will find our Gold, Silver, and Mining Stocks economic news schedule for the next two trading days (EST Timezone).
Thursday, February 1
- 5:00 a.m. Eurozone - CPI Flash Estimate y/y, Core CPI Flash Estimate y/y
- 7:00 a.m. U.K. - BOE Monetary Policy Report, Official Bank Rate, Monetary Policy Summary, MPC Official Bank Rate Votes
- 7:30 a.m. U.S. - Challenger Job Cuts y/y
- 8:30 a.m. U.S. - Unemployment Claims, Preliminary Nonfarm Productivity q/q, Preliminary Unit Labor Costs q/q
- 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
- All Day, U.S. - Wards Total Vehicle Sales
- All Day - OPEC-JMMC Meetings
Friday, February 2
- 8:30 a.m. U.S. - Non-Farm Employment Change, Unemployment Rate, Average Hourly Earnings m/m
- 10:00 a.m. U.S. - Revised UoM Consumer Sentiment, Factory Orders m/m, Revised UoM Inflation Expectations
Paul Rejczak
Stock Trading Strategist