Advertisement
Advertisement

Daily Gold News: August 25 – Gold Going Sideways Since Last Wednesday’s Decline

By:
Paul Rejczak
Published: Aug 25, 2020, 11:52 UTC

The gold futures contract lost 0.40% on Monday, as yellow metal extended its short-term consolidation following the recent decline below $2,000 price level.

Gold, Silver

The gold futures contract lost 0.40% on Monday, as yellow metal extended its short-term consolidation following the recent decline below $2,000 price level. Gold reversed lower on August 7 after much better than expected Nonfarm Payrolls release, among other factors. The following upward correction reached a local high of $2,024.60 a week ago on Tuesday.

undefined

Gold is unchanged this morning, as it is trading within a mentioned short-term consolidation. What about the other precious metals? Silver lost 0.47% on Monday and today it is 0.1% lower. Platinum lost 0.09% and today it is 1.5% higher. Palladium lost 0.68% on Monday and today it’s 0.2% higher. So precious metals’ prices are mixed this morning.

Yesterday we didn’t get any important economic data releases. The markets will be waiting for Thursday’s-Friday’s Jackson Hole Symposium’s outcomes.

But today we will also get the important CB Consumer Confidence number along with New Home Sales and Richmond Manufacturing Index at 10:00 a.m.

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

Tuesday, August 25

  • 2:00 a.m. Eurozone – German Final GDP q/q
  • 4:00 a.m. Eurozone – German ifo Business Climate
  • 9:00 a.m. U.S. – HPI m/m, S&P/CS Composite-20 HPI y/y
  • 10:00 a.m. U.S. – CB Consumer Confidence, New Home Sales, Richmond Manufacturing Index

Wednesday, August 26

  • 8:30 a.m. U.S. – Durable Goods Orders m/m, Core Durable Goods Orders m/m

What future gold price behavior may be? Let’s take a look at our proprietary Gold True Seasonality for the third quarter of 2020 where we combined the regular seasonality with the effect of the expiration of options and accuracy estimation. The yearly seasonal pattern of the price of gold was calculated using a 18-year-long period from 2002 to 2019 and then adjusted for the expiration of options that we observed between 2009 and 2019.

undefined

We can see that gold is usually going higher in the end of August. However, notice the declining accuracy in that period too. Then in September the market is trading within a consolidation.

Thank you for reading today’s free analysis. We hope you enjoyed it. If so, we would like to invite you to sign up for our free gold newsletter. Once you sign up, you’ll also get 7-day no-obligation trial of all our premium gold services, including our Gold & Silver Trading Alerts. Sign up today!

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.

About the Author

Paul Rejczakcontributor

Stock market strategist, who has been known for the quality of his technical and fundamental analysis since the late nineties.

Did you find this article useful?

Advertisement