Gold retraces its Friday’s rally; key inflation data is in focus this week.
The gold futures contract gained 1.48% on Friday, May 10, as it continued its Thursday’s breakout above the recent highs on advancing stock markets, weaker U.S. dollar. In the second half of April, gold fluctuated along the $2,300 level, and last week, it was extending a consolidation. On Friday, gold reached a local high of $2,358.30.
Recently, gold was selling off from a new record high of $2,448.80 reached on April 12. On April 19, the yellow metal reached a local high of around $2,433 in a reaction to the stock market’s sell-off amid Middle East tensions.
On February 14, gold was the lowest since mid-December, after breaking below local lows from January on the consumer inflation release. Since then, it gained over $450.
This morning, gold is retracing its Friday’s advance, as we can see on the daily chart (the chart includes today’s intraday data):
The gold price is 1.2% lower, as it is trading below the $2,350 level. What about the other precious metals? Silver is 0.5% lower, platinum is 0.3% higher and palladium is 0.3% lower. So, the main precious metals’ prices are lower this morning.
Friday’s UoM Consumer Sentiment release has been lower than expected at 67.4. Today, we won’t get any new important economic data. However, the markets will be waiting for tomorrow’s Producer Price Index and Wednesday’s Consumer Price Index releases.
Below you will find our Gold, Silver, and Mining Stocks economic news schedule for the next two trading days (EST Timezone).
Monday, May 13
- 9:00 a.m. U.S. - FOMC Member Jefferson Speech, FOMC Member Mester Speech
- All Day, Eurozone - Eurogroup Meetings
Tuesday, May 14
- 2:00 a.m. U.K. - Claimant Count Change, Average Earnings Index 3m/y
- 5:00 a.m. Eurozone - German ZEW Economic Sentiment
- 6:00 a.m. U.S. - NFIB Small Business Index
- 8:30 a.m. U.S. - PPI m/m, Core PPI m/m
- 9:10 a.m. U.S. - FOMC Member Cook Speech
- 10:00 a.m. U.S. - Fed Chair Powell Speech
- 9:30 p.m. Australia - Wage Price Index q/q
- All Day, Eurozone - ECOFIN Meetings
Paul Rejczak
Stock Trading Strategist