Gold price extends its short-term downtrend, breaking below $2,050
The gold futures contract lost 0.01% on Friday, January 5, as it continued to fluctuate along the $2,050 level. Last week, it went sideways following Wednesday’s decline of 1.5%. On Wednesday, it broke below the recent local lows following stronger U.S. dollar and declining stock markets. Earlier, gold continued upwards on weakening U.S. dollar, among other factors, and 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 breaking below the recent lows, as we can see on the daily chart (the chart includes today’s intraday data):
The gold price is 1.1% lower, as it is trading along $2,025. What about the other precious metals? Silver is 1.0% lower, platinum is 1.1% lower and palladium is 1.2% lower. So the main precious metals’ prices are lower this morning.
Friday’s Nonfarm Payrolls release has been higher than expected at +216,000. Today, we will get the Consumer Credit release at 3:00 a.m. The markets will be waiting for the important Consumer Price Index release on Thursday.
Below you will find our Gold, Silver, and Mining Stocks economic news schedule for the next two trading days (EST Timezone).
Monday, January 8
- 3:00 p.m. U.S. - Consumer Credit m/m
Tuesday, January 9
- 6:00 a.m. U.S. - NFIB Small Business Index
- 8:30 a.m. U.S. - Trade Balance
- 12:00 p.m. U.S. - FOMC Member Barr Speech
- 7:30 p.m. Australia - CPI y/y
- Tentative, U.S. - RCM/TIPP Economic Optimism
Paul Rejczak
Stock Trading Strategist