The gold futures contract lost 0.12% on Wednesday, as it extended its short-term consolidation following the recent breakout above the $1,800 price level. Last week the market broke above the recent local high of around $1,812 following Friday’s dovish speech from the Fed Chair Jerome Powell at the Jackson Hole Symposium. Since then it has been fluctuating within a relatively narrow trading range. This morning gold is trading within its yesterday’s daily range, as we can see on the daily chart (the chart includes today’s intraday data):
Today gold is virtually flat, as it is still trading within a short-term consolidation. What about the other precious metals? Silver is 0.1% higher, platinum is 0.7% lower and palladium is unchanged. So precious metals’ prices are mixed this morning.
Yesterday’s ADP Non-Farm Employment Change has been worse than expected at +374,000 vs. +640,000 and the ISM Manufacturing PMI release has been better than expected at 59.9 vs. 58.5. Today we will get the Unemployment Claims, Nonfarm Productivity, Trade Balance and Factory Orders releases. We will also have some Fed-talk later in the day.
The markets will be waiting for tomorrow’s monthly jobs data release.
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:
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
- 3:00 p.m. U.S. – FOMC Member Daly Speech
Friday, September 3
- 8:30 a.m. U.S. – Non-Farm Employment Change, Unemployment Rate, Average Hourly Earnings m/m
- 9:45 a.m. U.S. – Final Services PMI
- 10:00 a.m. U.S. – ISM Services PMI
For a look at all of today’s economic events, check out our economic calendar.
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