Gold price is gaining despite strong U.S. dolar; economic data in focus.
The gold futures contract lost 0.02% on Friday, January 26, as it extended a consolidation following mid-January sell-off. Despite the important economic releases and volatility in the U.S. dollar, the market went sideways again. On Thursday, gold was at the lowest point since December 13, but it quickly recovered its 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 trading higher, as we can see on the daily chart (the chart includes today’s intraday data):
The gold price is 1.5% higher, as it is trading close to the $2,050 level. However, it is the new futures contract series, and the previous one is gaining 0.6% today. What about the other precious metals? Silver is 1.2% higher (new series), platinum is 0.3% lower and palladium is 1.0% lower (old series). So the main precious metals’ prices are higher this morning.
Friday’s important Core PCE Price Index release has been as expected at +0.2% m/m. Today we won’t get any new important economic data. The markets will await tomorrow’s CB Consumer Confidence release and the important Fed Rate Decision on Wednesday.
Below you will find our Gold, Silver, and Mining Stocks economic news schedule for the next two trading days (EST Timezone).
Monday, January 29
- 7:30 p.m. Australia - Retail Sales m/m
Tuesday, January 30
- 9:00 a.m. U.S. - S&P/CS Composite-20 HPI y/y, HPI m/m
- 10:00 a.m. U.S. - CB Consumer Confidence, JOLTS Job Openings
- 7:30 p.m. Australia - CPI q/q, CPI y/y, Trimmed Mean CPI q/q
- 8:30 p.m. China - Manufacturing PMI, Non-Manufacturing PMI
Paul Rejczak
Stock Trading Strategist