Daily Gold News: August 2 – Gold Keeps Fluctuating Below $2,000

Gold price is retracing yesterday’s advance; more economic data in focus.

The gold futures contract lost 1.51% on Tuesday, August 1 as it retraced its recent advances after bouncing down from the $2,000 price level. On Monday it reached a local high of $2,010.90 and yesterday it traded as low as $1,978. The market reacted to strengthening U.S. dollar and falling stock prices, among other factors.

On June 29 gold was the lowest since mid-March (the low was at $1,900.60). In May gold retreated from new medium-term high of $2,085.40 and in early March it was selling off after the Fed Chief Powell’s hawkish testimony. Then it rebounded from local low of around $1,813.

Today gold is bouncing from its yesterday’s local low following U.S. credit rating downgrade from Fitch as we can see on the daily chart (the chart includes today’s intraday data):

Daily Gold News: August 2 – Gold Keeps Fluctuating Below $2,000 - Image 1

The gold price is 0.5% higher this morning as it is trading slightly below the $1,990 level. What about the other precious metals? Silver is 0.7% higher, platinum is 0.1% lower and palladium is 0.5% higher. So the main precious metals’ prices are higher this morning.

Yesterday’s ISM Manufacturing PMI release has been slightly lower than expected at 46.4. Today we will get the ADP Non-Farm Employment Change release at 8:15 a.m.

Below you will find our Gold, Silver, and Mining Stocks economic news schedule for the next two trading days (EST Timezone).

Wednesday, August 2

  • 8:15 a.m. U.S. - ADP Non-Farm Employment Change
  • 9:45 p.m. China - Caixin Services PMI

Thursday, August 3

  • 7:00 a.m. U.K. - BOE Monetary Policy Report, MPC Official Bank Rate Votes, Monetary Policy Summary, Official Bank Rate
  • 7:30 a.m. U.S. - Challenger Job Cuts y/y
  • 7:30 a.m. U.K. - BOE Governor Bailey Speech
  • 8:30 a.m. U.S. - Unemployment Claims, Preliminary Nonfarm Productivity q/q, Preliminary Unit Labor Costs q/q
  • 9:45 a.m. U.S. - Final Services PMI
  • 10:00 a.m. U.S. - ISM Services PMI, Factory Orders m/m
  • 9:30 p.m. Australia - RBA Monetary Policy Statement
  • All Day - OPEC-JMMC Meetings

Paul Rejczak
Stock Trading Strategist