Daily Gold News: Monday, May 10 – Gold Closer to $1,850 Price Level

The gold futures contract gained 0.86% on Friday, as it extended its short-term uptrend following breaking above the recent consolidation. In early April the market has bounced from the support level marked by March 8 local low of $1,663.30. The yellow metal’s price was the lowest since last year’s June. Today gold is trading close to Friday’s daily high, as we can see on the daily chart (the chart includes today’s intraday data):

Gold is 0.5% higher this morning, as it is trading closer to $1,850 price level. What about the other precious metals? Silver is 1.1% higher, platinum is 1.2% higher and palladium is 1.9% higher today. So precious metals are higher this morning.

Friday’s monthly jobs data release has been much worse than expected at only +266,000. But the markets went risk-on again. Today we won’t get any new important economic data releases. The markets will be waiting for Wednesday’s important Consumer Price Index release.

Where would the price of gold go following Friday’s NFP release? We’ve compiled the data since September of 2018, a 32-month-long period of time that contains of thirty two 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 1.92% in April and it gained 2.54% in March.

The following chart shows the average gold price path before and after the NFP releases for the past 32 months. The market was usually advancing ahead of the release day and closing 0.49% higher on the 10th day after the NFP release.

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

Monday, May 10

• 2:00 p.m. U.S. – FOMC Member Evans Speech

Tuesday, May 11

• 5:00 a.m. Eurozone – German ZEW Economic Sentiment
• 6:00 a.m. U.S. – NFIB Small Business Index
• 10:00 a.m. U.S. – JOLTS Job Openings
• 10:30 a.m. U.S. – FOMC Member Williams Speech
• 12:00 p.m. U.S. – FOMC Member Brainard Speech
• 1:00 p.m. U.S. – FOMC Member Daly Speech
• 1:15 p.m. U.S. – FOMC Member Bostic Speech

For a look at all of today’s economic events, check out our economic calendar.

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

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