Gold price extended its short-term downtrend on economic data, stronger USD.
The gold futures contract lost 1.17% on Wednesday, January 17, as it extended its Tuesday’s decline of 1.0% amid economic data, strong U.S. dollar. The market was at the lowest point since December 13 yesterday, and it retraced almost all of its rally following the recent Fed’s monetary policy release.
In late December, gold bounced from the $2,100 level, and the previous week 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 some of its recent declines, as we can see on the daily chart (the chart includes today’s intraday data):
The gold price is 0.5% higher, as it is trading slightly below the $2,020 level. What about the other precious metals? Silver is 0.4% higher, platinum is 0.5% higher and palladium is 0.9% higher. So the main precious metals’ prices are higher this morning.
Yesterday’s important Retail Sales release has been higher than expected at +0.6% m/m. Today we will get the Unemployment Claims 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).
Thursday, January 18
- 7:30 a.m. U.S. - FOMC Member Bostic Speech
- 8:30 a.m. U.S. - Unemployment Claims, Building Permits, Housing Starts, Philly Fed Manufacturing Index
- 10:15 a.m. Eurozone - ECB President Lagarde Speech
- 11:30 a.m. U.S. - FOMC Member Bostic Speech
- All Day - WEF Annual Meetings
Friday, January 19
- 2:00 a.m. U.K. - Retail Sales m/m
- 5:00 a.m. Eurozone - ECB President Lagarde Speech
- 10:00 a.m. U.S. - Preliminary UoM Consumer Sentiment, Preliminary UoM Inflation Expectations, Existing Home Sales
- 4:00 p.m. U.S. - TIC Long-Term Purchases
- 4:15 p.m. U.S. - FOMC Member Daly Speech
- All Day - WEF Annual Meetings
Paul Rejczak
Stock Trading Strategist