Daily Gold News: Gold’s Breakout Following U.S. Dollar’s Decline

The gold futures contract gained 2.67% on Thursday, as it broke above its October highs following relatively big decline of the U.S. dollar. The markets continue to react on U.S. Presidential Election uncertainty. Gold got back to around $1,950 price level and it is currently within its mid-September trading range, 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 extending a short-term uptrend. What about the other precious metals? Silver gained 5.43% on Thursday and today it is 1.4% higher. Platinum gained 3.42% and today it is 0.5% higher. Palladium gained 3.29% yesterday and today it’s 0.8% higher. So precious metals are extending their yesterday’s advance this morning .

Yesterday’s Unemployment Claims release has been as expected at 751,000. The FOMC Statement release didn’t bring any surprises as the markets are still waiting for Presidential Election’s outcome. But today we will get the important monthly jobs data release at 8:30 a.m. The Nonfarm Payrolls number is expected to decline to +595,000.

Let’s focus on Tuesday’s U.S. Presidential Election . Where would the price of gold go following that event? We’ve compiled the data since 1992, a 28-year-long period of time that contains of seven U.S. Presidential Elections. The chart shows price paths 5 days before and 10 days after the election day. Gold gained the most in 2004 and lost the most in 2016. On average, it was around 0.5% lower 10 days after.

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

Friday, November 6

  • 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
  • 10:00 a.m. U.S. – Final Wholesale Inventories m/m

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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