Gold

Daily Gold News: Thursday, Feb. 4 – Gold Breaks Lower

The gold futures contract gained 0.09% on Wednesday, as it fluctuated following its recent decline. The market gave back almost all of December’s advance in early January. Recently gold retraced some of that sell-off but today it is getting closer to $1,800 mark again, as we can see on the daily chart ( the chart includes today’s intraday data ):

Gold is 1.1% lower this morning, as it is trading below its recent local lows. What about the other precious metals? Silver gained 1.84% on Wednesday and today it is 1.8% lower. Platinum gained 1.69% and today it’s 2.0% lower. Palladium gained 2.20% and today it’s 1.4% lower. So precious metals are lower this morning.

Yesterday’s ADP Non-Farm Employment Change release has been better than expected at +174,000 and ISM Services PMI release has been better than expected at 58.7. Today we will get the Unemployment Claims, Factory Orders releases, among others.

The markets will be waiting for tomorrow’s Nonfarm Payrolls announcement.

Where would the price of gold go following Friday’s news? We’ve compiled the data since September of 2018, a 29-month-long period of time that contains of twenty nine 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 2.7% in December and 1.1% in January.

The following chart shows the average gold price path before and after the NFP releases for the past 29 months. The market was usually advancing ahead of the release day and closing 0.40% 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, February 4

  • 7:00 a.m. U.K. – BOE Monetary Policy Report, Official Bank Rate
  • 7:30 a.m. U.S. – Challenger Job Cuts y/y
  • 8:30 a.m. U.S. – Unemployment Claims, Preliminary Nonfarm Productivity q/q, Preliminary Unit Labor Costs q/q
  • 10:00 a.m. U.S. – Factory Orders m/m
  • 2:00 p.m. U.S. – FOMC Member Daly Speech
  • 5:30 p.m. Australia – RBA Governor Lowe Speech
  • 7:30 p.m. Australia – RBA Monetary Policy Statement

Friday, February 5

  • 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, Trade Balance
  • 10:00 a.m. Canada – Ivey PMI

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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