Daily Gold News: Wednesday, Sep. 1 – Gold’s Consolidation, Friday’s Jobs Data in Focus

The gold futures contract gained 0.33% on Tuesday, as it continued to trade within a short-term consolidation following the recent breakout above the $1,800 price level. On Friday, the market broke above the recent local high of around $1,812 following a dovish speech from the Fed Chair Jerome Powell at the Jackson Hole Symposium. On Wednesday and Thursday the market retreated below $1,800 level again, but it was just a short-term weakness. This morning the yellow metal is trading within the yesterday’s daily range, as we can see on the daily chart (the chart includes today’s intraday data):

Today gold is 0.1% lower, as it is trading within a short-term consolidation. What about the other precious metals? Silver is 0.1% higher, platinum is 0.3% lower and palladium is 0.5% higher. So precious metals’ prices are mixed this morning.

Yesterday’s CB Consumer Confidence release has been worse than expected at 113.8. Today we will get the important ADP Non-Farm Employment Change and ISM Manufacturing PMI releases.

Where would the price of gold go following Friday’s Nonfarm Payrolls announcement? We’ve compiled the data since September of 2018, a 36-month-long period of time that contains of thirty 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 1.45% in July and in August it lost 2.58%.

The following chart shows the average gold price path before and after the NFP releases for the past 36 months. The market was usually advancing ahead of the release day and closing 0.30% 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:

Wednesday, September 1

• 3:55 a.m. Eurozone – German Final Manufacturing PMI
• 8:15 a.m. U.S. – ADP Non-Farm Employment Change
• 9:45 a.m. U.S. – Final Manufacturing PMI
• 10:00 a.m. U.S. – ISM Manufacturing PMI, Construction Spending m/m, ISM Manufacturing Prices
• 12:00 p.m. U.S. – FOMC Member Bostic Speech
• All Day – OPEC Meetings, OPEC-JMMC Meetings

Thursday, September 2

• 8:30 a.m. U.S. – Unemployment Claims, Revised Nonfarm Productivity q/q, Revised Unit Labor Costs q/q, Trade Balance
• 10:00 a.m. U.S. – Factory Orders m/m
• 1:00 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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