Daily Gold News: Sideways, Still Close to $1,900 Price Level

The gold futures contract lost 0.45% on Friday, as it fluctuated following the recent advances. Recently gold was retracing a rally from around $1,800 to August 7 record high of $2,089.20 in reaction to U.S. dollar advance, among other factors. Then gold has bounced from the support level marked by mid-August local low of around $1,875, as we can see on the daily chart (the chart includes today’s intraday data):

Gold is unchanged this morning, as it continues to trade within a short-term consolidation. What about the other precious metals? Silver lost 0.93% on Friday and today it is 0.8% higher. Platinum lost 0.14% and today it is 0.3% higher. Palladium lost 0.10% on Thursday and today it’s 1.5% higher. So precious metals are mixed this morning.

Friday’s monthly jobs data release has been worse than expected with Nonfarm Payrolls number at +661,000 vs. the expected +900,000.

Today we will get the ISM Non-Manufacturing PMI release at 10:00 a.m. We will also have Central Banks releases in the coming days.

Let’s focus on Friday’s Nonfarm Payrolls release. Where would the price of gold go following the news? We’ve compiled the data since September of 2018, a 25-month-long period of time that contains of twenty five NFP releases. The first chart shows price paths 5 days before and 10 days after the NFP release. The last three cases are marked with dashed lines. Gold gained around 1% in July and September, but in August it lost almost 4%.

The following chart shows the average gold price path before and after the NFP releases for the past 25 months. The market was usually fluctuating for a week before advancing and closing 0.46% higher on the 10th day after the monthly Nonfarm Payrolls release.

Below you will find our Gold, Silver, and Mining Stocks economic news schedule for the next two trading days:

Monday, October 5

  • 9:45 a.m. U.S. – Final Services PMI
  • 10:00 a.m. U.S. – ISM Non-Manufacturing PMI
  • 11:30 p.m. Australia – Cash Rate, RBA Rate Statement
  • All Day, Eurozone – Eurogroup Meetings

Tuesday, October 6

  • 4:35 a.m. Eurozone – ECB President Lagarde Speech
  • 8:30 a.m. U.S. – Trade Balance
  • 9:00 a.m. Eurozone – ECB President Lagarde Speech
  • 10:00 a.m. U.S. – JOLTS Job Openings
  • 10:40 a.m. U.S. – Fed Chair Powell Speech
  • 11:45 a.m. U.S. – FOMC Member Harker Speech
  • 6:00 p.m. U.S. – FOMC Member Kaplan Speech
  • All Day, Eurozone – ECOFIN Meetings
  • All Day, China – Bank Holiday

Paul Rejczak
Stock Selection Strategist
Sunshine Profits: Analysis. Care. Profits.


Disclaimer

All essays, research and information found above represent analyses and opinions of Paul Rejczak and Sunshine Profits’ associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Paul Rejczak and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Rejczak is not a Registered Securities Advisor. By reading Paul Rejczak’s reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Paul Rejczak, Sunshine Profits’ employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.

Credit: Nasdaq

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