Gold lost almost 2% after the Powell’s testimony; today it’s trading sideways.
The gold futures contract lost 1.87% on Tuesday, Mar. 7, as it sold off following the Fed Chief Powell’s hawkish testimony. The market retraced almost all of its recent advances and a rebound to its last Friday’s local high of $1,864.40. Gold went closer to the February 28 local low of $1,810.80 again as yesterday’s daily low was at $1,817.10.
On February 2 gold reached new medium-term high of $1,975.02. Then gold retraced an over month-long advance on renewed monetary policy tightening fears.
Today gold is trading along yesterday’s closing price, as we can see on the daily chart (the chart includes today’s intraday data):
The gold price is 0.1% higher this morning as it is trading below the $1,820 level. What about the other precious metals? Silver is 0.2% higher, platinum is 1.2% higher and palladium is 1.7% higher. So the main precious metals’ prices are slightly higher this morning.
Yesterday’s Fed Chief Powell’s testimony led to a sell-off in precious metals, stock markets and energy sector. Also, the U.S. dollar strengthened after the Powell’s testimony. Today there will be the second part of that testimony at 10:00 a.m. We will also get the important ADP Non-Farm Employment Change release at 8:15 a.m., among others.
Below you will find our Gold, Silver, and Mining Stocks economic news schedule for the next two trading days (EST Timezone).
Wednesday, March 8
- 5:00 a.m. Eurozone - ECB President Lagarde Speech
- 8:15 a.m. U.S. - ADP Non-Farm Employment Change
- 8:30 a.m. U.S. - Trade Balance
- 10:00 a.m. U.S. - Fed Chair Powell Testimony, JOLTS Job Openings
- 1:01 p.m. U.S. - 10-y Bond Auction
- 2:00 p.m. U.S. - Beige Book
Thursday, March 9
- 7:30 a.m. U.S. - Challenger Job Cuts y/y
- 8:30 a.m. U.S. - Unemployment Claims
- 10:00 a.m. U.S. - FOMC Member Barr Speech
- 1:01 p.m. U.S. - 30-y Bond Auction
- Tentative, Japan - Monetary Policy Statement, BOJ Policy Rate, BOJ Press Conference
Paul Rejczak
Stock Trading Strategist