Daily Gold News: Precious Metals Mixed Ahead of Jobs Data

The gold futures contract gained 1.10% on Thursday, as it extended its short-term uptrend following breaking above $1,900 price level again. The market retraced 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 0.2% higher this morning, as it is trading along yesterday’s closing price. What about the other precious metals? Silver gained 3.23% on Thursday and today it is 0.7% higher. Platinum lost 0.35% and today it is 1.2% lower. Palladium lost 0.10% on Thursday and today it’s 0.7% lower. So precious metals are mixed this morning.

Yesterday’s ISM Manufacturing PMI, Unemployment Claims, Personal Income/ Personal Spending releases have generally been as expected. The overnight news about the U.S. President Trump’s positive coronavirus test led to 1-2% stock markets’ sell-off. However, gold isn’t reacting that much.

The financial markets will be waiting for today’s monthly jobs data release. The Nonfarm Payrolls number is expected to decrease to 900,000 vs. last month’s number.

Let’s focus on the Nonfarm Payrolls release. Where would the price of gold go following that 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 today:

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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