Gold gets closer to $2,000 level as geopolitical risks affect global markets.
The gold futures contract gained 0.62% on Thursday, October 19 as it further extended its uptrend after breaking above a two-day-long trading range along the $1,950 level on Wednesday. The market continued its last Friday’s rally of more than 3%. On Friday the yellow metal was advancing on increased geopolitcal risks, among other factors. On previous Friday, 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. Earlier gold kept selling off on economic data releases, strong U.S. dollar. Last Friday’s rally retraced most of the late September gold price declines.
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 getting closer to the $2,000 level as we can see on the daily chart (the chart includes today’s intraday data):
The gold price is 0.8% higher as it is trading slightly below the $2,000 level. What about the other precious metals? Silver is 1.6% higher platinum is 1.0% higher and palladium is 0.6% lower. So the main precious metals’ prices are higher this morning.
Yesterday’s Unemployment Claims release has been lower than expected at 198,000. Today we won’t get any new important economic data. The markets will keep reacting on geopolitics.
Below you will find our Gold, Silver, and Mining Stocks economic news schedule for the next two trading days (EST Timezone).
Friday, October 20
- 2:00 a.m. U.K. - Retail Sales m/m
- 8:30 a.m. Canada - Retail Sales m/m, Core Retail Sales m/m
- 9:00 a.m. U.S. - FOMC Member Harker Speech
Monday, October 23
- No important economic data announcements
Paul Rejczak
Stock Trading Strategist