Gold bounces back to around $2,050; more economic data in focus.
The gold futures contract lost 1.48% on Wednesday, January 3, as it broke below the recent local lows following stronger U.S. dollar and declining stock markets. On Tuesday, it retraced the whole of its last Wednesday’s advance of 1.1%. Gold continued upwards on weakening U.S. dollar, among other factors. In the previous week the market went sideways after the FOMC Statement release on December 13. 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 rebounding, 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 above $2,050. What about the other precious metals? Silver is unchanged, platinum is 0.4% lower and palladium is 0.3% higher. So the main precious metals’ prices are mixed this morning.
Yesterday’s important JOLTS Job Openings release has been lower than expected at 8.79 million. Today we will get the ADP Non-Farm Employment Change and Unemployment Claims numbers, 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 4
- 7:30 a.m. U.S. - Challenger Job Cuts y/y
- 8:15 a.m. U.S. - ADP Non-Farm Employment Change
- 8:30 a.m. U.S. - Unemployment Claims
- 9:45 a.m. U.S. - Final Services PMI
- All Day, Eurozone - German Preliminary CPI m/m
Friday, January 5
- 5:00 a.m. Eurozone - CPI Flash Estimate y/y, Core CPI Flash Estimate y/y, PPI m/m
- 8:30 a.m. U.S. - Non-Farm Employment Change, Unemployment Rate, Average Hourly Earnings m/m
- 8:30 a.m. Canada - Employment Change, Unemployment Rate
- 10:00 a.m. U.S. - ISM Services PMI, Factory Orders m/m
- 10:00 a.m. Canada - Ivey PMI
- 1:30 p.m. U.S. - FOMC Member Barkin Speech
Paul Rejczak
Stock Trading Strategist