Gold continues to fluctuate following last week’s advance; inflation data in focus.
The gold futures contract gained 0.72% on Tuesday, May 14, as it rebounded following its Monday’s decline of 1.4%. The market has bascially extended a short-term consolidation after getting near the $2,400 price level last Friday. On Thursday, gold broke above the recent highs on advancing stock markets and a weaker U.S. dollar. In the second half of April, gold fluctuated along the $2,300 level, and last week, it was extending its consolidation. On Friday, the yellow metal 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 trading higher ahead of the important inflation data, 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 along the $2,370 level. What about the other precious metals? Silver is 1.4% higher, platinum is 0.7% higher and palladium is 0.9% higher. So, the main precious metals’ prices are higher this morning.
Yesterday’s Producer Price Index release has been higher than expected at +0.5% m/m. Today, we will get the Consumer Price Index and Retail Sales numbers at 8:30 a.m., among others. Today’s data will likely lead to an increased volatility.
Below you will find our Gold, Silver, and Mining Stocks economic news schedule for the next two trading days (EST Timezone).
Wednesday, May 15
- 8:30 a.m. U.S. - CPI m/m, Core CPI m/m, CPI y/y, Retail Sales m/m, Core Retail Sales m/m, Empire State Manufacturing Index
- 10:00 a.m. U.S. - Business Inventories m/m, NAHB Housing Market Index
- 3:20 p.m. U.S. - FOMC Member Bowman Speech
- 4:00 p.m. U.S. - TIC Long-Term Purchases
- 7:50 p.m. Japan - Preliminary GDP q/q, Preliminary GDP Price Index y/y
- 9:30 p.m. Australia - Employment Change, Unemployment Rate
Thursday, May 16
- 4:00 a.m. Eurozone - ECB Financial Stability Review
- 8:30 a.m. U.S. - Unemployment Claims, Philly Fed Manufacturing Index, Building Permits, Housing Starts, Import Prices m/m
- 9:15 a.m. U.S. - Industrial Production m/m, Capacity Utilization Rate
- 10:00 a.m. U.S. - FOMC Member Barr Speech
- 12:00 p.m. U.S. - FOMC Member Mester Speech
- 3:50 p.m. U.S. - FOMC Member Bostic Speech
- 10:00 p.m. China - Industrial Production y/y, Retail Sales y/y
Paul Rejczak
Stock Trading Strategist