Daily Gold News: Friday, Jan. 7 – Gold Remains Below $1,800 Before NFP Release

The gold futures contract lost 1.97% on Thursday following Wednesday’s gain of 0.6%, as it retraced its recent advance after breaking above the $1,800 level. The market reacted to the recent economic data releases and stock markets’ sell-off. On Monday gold reached the new local high of $1,833 before reversing lower. This morning it is trading along its yesterday’s closing price, as we can see on the daily chart (the chart includes today’s intraday data):

Gold is 0.1% higher this morning, as it is trading trading slighlty below the $1,800 level. What about the other precious metals? Silver is also 0.1% higher, platinum is 0.2% higher and palladium is 1.4% higher. So the main precious metals’ prices are virtually flat this morning.

Yesterday’s U.S. Unemployment Claims release has been slightly worse than expected at 207,000, and the ISM Services PMI release has been worse than expected at 62.0. Today we will get the important monthly jobs data announcement.

Where would the price of gold go following today’s Nonfarm Payrolls announcement? We’ve compiled the data since September of 2018, a 40-month-long period of time that contains of forty 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 1.18% in December and in November it gained 1.92%.

The following chart shows the average gold price path before and after the NFP releases for the past 40 months. The market was usually advancing ahead of the release day and closing 0.26% higher on the 10th day after the NFP release.

Below you will find our Gold, Silver, and Mining Stocks economic news schedule for today:

Friday, January 7

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

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

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

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