Daily Gold News: Thursday, Dec. 3 – Gold Extending Short-term Gains

The gold futures contract gained 0.62% on Wednesday, as it retraced more of the recent decline. On Monday the market has extended a short-term downtrend following breaking below the recent local lows along the price level of $1,850. Three weeks ago gold sold off 5% in one day after global financial markets’ euphoria rally in reaction to Covid-19 Pfizer’s vaccine news release. Last week there has been a breakdown below $1,850, as we can see on the daily chart ( the chart includes today’s intraday data ):

Silver lost 0.04% on Wednesday and today it is 0.1% higher. Platinum gained 0.82% and today it is 1.5% higher. Palladium lost 0.88% yesterday and today it’s 0.1% higher. So precious metals are slightly higher this morning .

Yesterday’s ADP Non-Farm Employment Change release has been worse than expected at +307,000. Today we will get the Unemployment Claims and Services PMI releases.

The markets will wait for Friday’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 26-month-long period of time that contains of twenty six 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 lost almost 4% in August, but it gained 0.3-0.7% in September and October.

The following chart shows the average gold price path before and after the NFP releases for the past 26 months. The market was usually fluctuating for a week before advancing and closing 0.47% 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, December 3

• 8:30 a.m. U.S. – Unemployment Claims
• 9:45 a.m. U.S. – Final Services PMI
• 10:00 a.m. U.S. – ISM Services PMI

Friday, December 4

• 8:30 a.m. U.S. – Non-Farm Employment Change , Unemployment Rate , Average Hourly Earnings m/m , Trade Balance
• 8:30 a.m. Canada – Employment Change, Unemployment Rate
• 10:00 a.m. U.S. – Factory Orders m/m, FOMC Member Bowman 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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