The gold futures contract reached new record high of $1,974.90 on Wednesday, as it slightly extended its recent advance. But the market has closed just 0.45% higher and over $20 below yesterday’s daily high. Gold reached the highest in history following U.S. dollar sell-off, among other factors.
Gold is 0.9% lower this morning as it is trading within a short-term consolidation following record-breaking advance. What about the other precious metals? Silver gained 0.09% on Wednesday and today it is 3.9% lower. Platinum lost 2.81% and today it is 2.5% lower. Palladium lost 4.41% on Wednesday and today it’s 5.3% lower. So precious metals are retracing some of their recent rally this morning.
Yesterday’s U.S. Pending Home Sales number release has been slightly better than expected. At 2:00 p.m. we got the FOMC Statement announcement that has led to an increased volatility. Gold went higher before retracing the whole intraday advance.
Today we will get the important U.S. Advance GDP number, among others. The GDP is expected to decline by a stunning 34.5% q/q!
Below you will find our Gold, Silver, and Mining Stocks economic news schedule for the next two trading days:
Thursday, July 30
- 4:00 a.m. Eurozone – German Preliminary GDP q/q, ECB Economic Bulletin
- 5:00 a.m. Eurozone – Unemployment Rate
- 8:30 a.m. U.S. – Advance GDP q/q, Advance GDP Price Index q/q, Unemployment Claims
- 9:00 p.m. China – Manufacturing PMI, Non-Manufacturing PMI
Friday, July 31
- 8:30 a.m. U.S. – Personal Spending m/m, Personal Income m/m, Core PCE Price Index m/m, Employment Cost Index q/q
- 8:30 a.m. Canada – GDP m/m, IPPI m/m, RMPI m/m
- 9:45 a.m. U.S. – Chicago PMI
- 10:00 a.m. U.S. – Revised UoM Consumer Sentiment
What future gold price behavior may be? Let’s take a look at our proprietary Gold True Seasonality for the third quarter of 2020 where we combined the regular seasonality with the effect of the expiration of options and accuracy estimation. The yearly seasonal pattern of the price of gold was calculated using a 18-year-long period from 2002 to 2019 and then adjusted for the expiration of options that we observed between 2009 and 2019.
We can see that gold is usually going higher in August and September. But will the market continue upwards despite some clear technical overbought conditions and a possible uptrend exhaustion?
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For a look at all of today’s economic events, check out our economic calendar.
Stock Selection Strategist
Sunshine Profits: Analysis. Care. Profits.
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All essays, research and information found above represent analyses and opinions of Paul Rejczak and Sunshine Profits’ associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Paul Rejczak and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Rejczak is not a Registered Securities Advisor. By reading Paul Rejczak’s reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Paul Rejczak, Sunshine Profits’ employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.