Gold trades along $2,000 as U.S. dollar weakens, geopolitical risks remain
The gold futures contract gained 0.06% on Friday, October 27 as it continued to fluctuate along $2,000 level. Recently gold rallied on increasing global geopolitcal risks, interest rates fears, among other factors. On Friday the daily high was at $2,019.00, but the price closed below $2,000 again. Last Tuesday the yellow metal retraced more of the advance as it was 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 trading slightly higher as we can see on the daily chart (the chart includes today’s intraday data):
The gold price is 0.3% higher as it is above the $2,000 level. What about the other precious metals? Silver is 1.8% higher platinum is 1.9% higher and palladium is 1.3% higher. So the main precious metals’ prices are higher this morning.
Friday’s Core PCE Price Index release has been as expected at +0.3%. Today we won’t get any new important economic data. However, there will be an important Bank of Japan interest rate decision later in the day.
Below you will find our Gold, Silver, and Mining Stocks economic news schedule for the next two trading days (EST Timezone).
Monday, October 30
- 4:00 a.m. Eurozone - Spanish Flash CPI y/y
- 9:30 p.m. China - Manufacturing PMI, Non-Manufacturing PMI
- All Day, Eurozone - German Preliminary CPI m/m
- Tentative, Japan - BOJ Outlook Report, Monetary Policy Statement, BOJ Policy Rate
- Tentative, Japan - BOJ Press Conference
Tuesday, October 31
- 6:00 a.m. Eurozone - CPI Flash Estimate y/y, Core CPI Flash Estimate y/y
- 8:30 a.m. U.S. - Employment Cost Index q/q
- 8:30 a.m. Canada - GDP m/m
- 9:00 a.m. U.S. - S&P/CS Composite-20 HPI y/y, HPI m/m
- 9:45 a.m. U.S. - Chicago PMI
- 10:00 a.m. U.S. - CB Consumer Confidence
- 9:45 p.m. China - Caixin Manufacturing PMI
Paul Rejczak
Stock Trading Strategist