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Paul Rejczak
Gold, Silver, Platinum, Palladium

The gold futures contract lost 0.35% on Thursday, as it slightly extended its Wednesday’s decline of over 1.7%. Precious metals went lower following U.S dollar’s advance. The stock market’s rout didn’t trigger any significant move in gold yesterday. Last month yellow metal has reversed from its new record high of $2,089.20 after much better than expected Nonfarm Payrolls release. The following upward correction reached local high of $2,024.60 on August 18. Since then gold has been fluctuating, as we can see on the daily chart:

Gold is 0.5% higher this morning, as it is retracing some of yesterday’s decline. What about the other precious metals? Silver lost 1.90% on Thursday and today it is 1.0% higher. Platinum lost 1.60% and today it is 2.2% higher. Palladium gained 2.39% on Thursday and today it’s 1.1% lower. So precious metals are mixed this morning.

Yesterday‘s ISM Non-Manufacturing PMI release has been as expected and the Unemployment Claims number has been slightly better (lower) than expected at 881,000.

The financial markets are waiting for today’s monthly jobs data release. The Nonfarm Payrolls number is expected to drop to +1,375 million from last month’s +1,763 million.

Let’s focus on today’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 24-month-long period of time that contains of twenty four NFP releases. The first chart shows price paths 5 days before and 10 days after the NFP release. We can see that the biggest 10-day advance after the NFP day was +6.6% in February of 2020 and the biggest decline was -12.7% in March of 2020. However, we’ve had an increased volatility following coronavirus fear then.

The following chart shows the average gold price path before and after the NFP releases for the past 24 months. The market was usually fluctuating for a week before advancing and closing 0.5% 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 today:

Friday, September 4

  • 8:30 a.m. U.S. – Non-Farm Payrolls, Unemployment Rate, Average Hourly Earnings m/m
  • 8:30 a.m. Canada – Employment Change, Unemployment Rate

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!

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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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.

 

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