Gold continues to trade below $2,050; Thursday’s CPI release in focus.
The gold futures contract lost 0.80% on Monday, January 8, as it broke below the recent trading range. The market retraced more of its late December advances after bouncing from the $2,100 level on December 29. Last week, it went sideways following Wednesday’s decline and a breakdown below the previous local lows following stronger U.S. dollar and declining stock markets. Earlier, gold continued upwards on weakening U.S. dollar, 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 rebounding slightly, as we can see on the daily chart (the chart includes today’s intraday data):
The gold price is 0.4% higher, as it is trading along $2,040. What about the other precious metals? Silver is 0.1% higher, platinum is 0.3% lower and palladium is 0.9% lower. So the main precious metals’ prices are slightly lower this morning.
Today, we will get the Trade Balance release at 8:30 a.m., among others. 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).
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
Wednesday, January 10
- 9:15 a.m. U.K. - BOE Governor Bailey Speech
- 10:00 a.m. U.S. - Final Wholesale Inventories m/m
- 1:01 p.m. U.S. - 10-y Bond Auction
- 3:15 p.m. U.S. - FOMC Member Williams Speech
Paul Rejczak
Stock Trading Strategist