Daily Gold News: Gold Advancing, Economic Data in Focus

The gold futures contract lost 0.40% on Wednesday, as it fluctuated within a relatively narrow daily trading range. The market retraced some of its last week’s decline. 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. Gold 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 0.7% higher this morning, as it is getting back closer to $1,900 price level again. What about the other precious metals? Silver lost 3.89% on Wednesday and today it is 1.9% higher. Platinum gained 1.28% and today it is 0.8% higher. Palladium gained 0.05% on Wednesday and today it’s 0.3% higher. So precious metals are advancing this morning.

Yesterday’s ADP Non-Farm Employment Change release has been better than expected at +749,000. The Chicago PMI number has also been better than expected. And the markets were going risk-on on Wednesday with stocks extending their gains.

Today we will get the important ISM Manufacturing PMI release at 10:00 a.m. There will also be Unemployment Claims, Personal Income/ Personal Spending releases.

The financial markets will be waiting for tomorrow’s monthly jobs data release.

Let’s focus on the Friday’s Nonfarm Payrolls number release. Where would the price of gold go following that news release? 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:

Thursday, October 1

• 8:30 a.m. U.S. – Unemployment Claims, Personal Income m/m, Personal Spending m/m, Core PCE Price Index m/m
• 9:30 a.m. Canada – Manufacturing PMI
• 9:45 a.m. U.S. – Final Manufacturing PMI
• 10:00 a.m. U.S. – ISM Manufacturing PMI, Construction Spending m/m
• 11:00 a.m. U.S. – FOMC Member Williams Speech
• 3:00 p.m. U.S. – FOMC Member Bowman Speaks
• All Day, China – Bank Holiday

Friday, October 2

• 8:30 a.m. U.S. – Non-Farm Employment Change, Unemployment Rate, Average Hourly Earnings m/m
• 9:30 a.m. U.S. – FOMC Member Harker Speech
• 10:00 a.m. U.S. – Revised UoM Consumer Sentiment, Factory Orders m/m

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

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