Gold sold off on Friday; tomorrow’s consumer inflation data is in focus.
The gold futures contract lost 1.63% on Friday, November 10 as it further extended its downtrend following Thursday’s bounce of 0.6%. On Friday the market reached new local low of $1,936.90. Last week on Tuesday it broke below the previous trading range on strengthening U.S. dollar, among other factors. Gold was selling off from its previous Friday’ high of $2,012. Recently it rallied on increasing global geopolitcal risks, among other factors.
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 to $2,000 level. 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 sideways as we can see on the daily chart (the chart includes today’s intraday data):
The gold price is 0.2% higher as it is trading along the $1,940 level. What about the other precious metals? Silver is 0.7% lower, platinum is 1.1% higher and palladium is 0.8% higher. So the main precious metals’ prices are mixed this morning.
Friday’s Preliminary UoM Consumer Sentiment release has been lower than expected at 60.4. Today we won’t get any new important economic data. The markets will be waiting for tomorrow’s Consumer Price Index release.
Below you will find our Gold, Silver, and Mining Stocks economic news schedule for the next two trading days (EST Timezone).
Monday, November 13
- 2:00 p.m. U.S. - Federal Budget Balance
- 7:30 p.m. Australia - NAB Business Confidence
- All Day, Canada - Bank Holiday
Tuesday, November 14
- 2:00 a.m. U.K. - Claimant Count Change, Average Earnings Index 3m/y, Unemployment Rate
- 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. - CPI m/m, Core CPI m/m, CPI y/y
- 10:00 a.m. U.S. - FOMC Member Barr Speech
- 12:45 p.m. U.S. - FOMC Member Goolsbee Speech
- 7:30 p.m. Australia - Wage Price Index q/q
- 9:00 p.m. China - Industrial Production y/y, Retail Sales y/y
Paul Rejczak
Stock Trading Strategist