Gold retraced its yesterday’s decline following Fed release, weaker USD.
The gold futures contract lost 0.34% on Wednesday, November 1 as it extended its short-term decline after breaking back below the $2,000 level. Yesterday gold reached a local low of $1,982.80. Recently it 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.
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 retracing its yesterday’s decline 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 just below $2,000 level. What about the other precious metals? Silver is 1.7% higher platinum is 0.8% lower and palladium is 0.3% lower. So the main precious metals’ prices are higher this morning.
Yesterday’s ADP Non-Farm Employment Change release has been lower than expected at +113,000. The Fed has left interest rates unchanged which led to weaker U.S. dollar and rally on the stock market. Today we will get the Unemployment Claims release at 8:30 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).
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
Friday, November 3
- 8:00 a.m. U.S. - FOMC Member Barr Speech
- 8:30 a.m. U.S. - Non-Farm Employment Change, Unemployment Rate, Average Hourly Earnings m/m
- 8:30 a.m. Canada - Employment Change,
- Unemployment Rate
- 9:45 a.m. U.S. - Final Services PMI
- 10:00 a.m. U.S. - ISM Services PMI
Paul Rejczak
Stock Trading Strategist