Gold rebounded from the last Wednesday’s low; markets await more economic data.
The gold futures contract gained 0.38% on Friday, January 19, as it extended its Thursday’s rebound of 0.8%. The market retraced more of its Tuesday’s- Wednesday’s sell-off. On Wednesday, it was at the lowest point since December 13 on stronger U.S. dollar, among other factors. Gold 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 trading sideways, as we can see on the daily chart (the chart includes today’s intraday data):
The gold price is 0.1% lower, as it is trading along the $2,030 level again. What about the other precious metals? Silver is 1.7% lower, platinum is 0.6% lower and palladium is 2.2% lower. So the main precious metals’ prices are mixed this morning.
Friday’s UoM Consumer Sentiment release has been much higher than expected at 78.8. Today we won’t get any new important economic data. Later in the day, there will be a monetary policy announcement from the Bank of Japan.
Below you will find our Gold, Silver, and Mining Stocks economic news schedule for the next two trading days (EST Timezone).
Monday, January 22
- 10:00 a.m. U.S. - CB Leading Index m/m
- Tentative, Japan - Monetary Policy Statement, BOJ Policy Rate, BOJ Outlook Report
Tuesday, January 23
- 10:00 a.m. U.S. - Richmond Manufacturing Index
- Tentative, Japan - BOJ Press Conference
Paul Rejczak
Stock Trading Strategist