Gold trades sideways ahead of the important FOMC release plus series of economic data.
The gold futures contract lost 0.56% on Tuesday, October 31 as it retraced its Monday’s advance following strengthening U.S. dollar, among other factors. Recently gold rallied on increasing global geopolitcal risks, interest rates fears, among other factors. On Friday the daily high was at $2,019.00 and on last Tuesday the yellow metal fell briefly below $1,970. Yesterday it came back close to the local high before reversing lower.
On October 6 gold reached new local low of $1,823.50. It was the lowest since early March, but the market bounced after monthly jobs data release, among other factors. Earlier gold kept selling off on economic data releases, strong U.S. dollar. On Friday gold was the highest since late July.
In late August gold price was rallying amidst reduced pressure for the further monetary policy tightening and on Septemeber 1 it reached a local high of $1,980. In May gold retreated from medium-term high of $2,085.40 and in early March it was selling off after the Fed Chief Powell’s hawkish testimony. Then it rebounded from a local low of around $1,813.
Today gold is trading along its 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% lower as it is trading along the $1,990 level. What about the other precious metals? Silver is 0.7% lower platinum is 1.4% lower and palladium is 0.1% lower. So the main precious metals’ prices are lower this morning.
Yesterday’s CB Consumer Confidence release has been higher than expected at 102.6. Today we will get series of economic data releases, including ADP Non-Farm Employment Change, ISM Manufacturing PMI, JOLTS Job Openings. But the most important event today will be the FOMC Interest Rate Decision at 2:00 p.m.
Below you will find our Gold, Silver, and Mining Stocks economic news schedule for the next two trading days (EST Timezone).
Wednesday, November 1
- 8:15 a.m. U.S. - ADP Non-Farm Employment Change
- 9:45 a.m. U.S. - Final Manufacturing PMI
- 10:00 a.m. U.S. - ISM Manufacturing PMI, JOLTS Job Openings, ISM Manufacturing Prices, Construction Spending m/m
- 2:00 p.m. U.S. - Federal Funds Rate, FOMC Statement
- 2:30 p.m. U.S. - FOMC Press Conference
- All Day, U.S. - Wards Total Vehicle Sales
- All Day, Eurozone - French Bank Holiday, Italian Bank Holiday
Thursday, November 2
- 7:30 a.m. U.S. - Challenger Job Cuts y/y
- 8:00 a.m. U.K. - BOE Monetary Policy Report, Monetary Policy Summary, MPC Official Bank Rate Votes, Official Bank Rate
- 8:30 a.m. U.S. - Unemployment Claims, Preliminary Nonfarm Productivity q/q, Preliminary Unit Labor Costs q/q
- 10:00 a.m. U.S. - Factory Orders m/m
- 9:45 p.m. China - Caixin Services PMI
- All Day, Japan – Bank Holiday
Paul Rejczak
Stock Trading Strategist