Gold extended its advance on weaker U.S dollar, but today it’s backing off.
The gold futures contract gained 1.13% on Wednesday, December 27, as it extended its advance after breaking above the recent trading range on Thursday a week ago. Gold continued upwards on weakening U.S. dollar, among other factors. Last week the market went sideways following the previous Wednesday’s FOMC Statement release. The yellow metal fluctuated following the December 4 extraordinary price action and a downward reversal from new all-time high price of $2,152.30. Then, it traded below $2,000 mark on stronger U.S. dollar, uncertainty concerning economic data. After the Fed’s release gold rallied back above $2,050 price level.
On October 6 gold reached new medium-term low of $1,823.50. It was the lowest since early March, but then the market bounced and rallied above $2,000.
This morning gold is retracing some of its yesterday’s advance, as we can see on the daily chart (the chart includes today’s intraday data):
The gold price is 0.5% lower as it is trading slightly above $2,080. What about the other precious metals? Silver is also 0.5% lower, platinum is 0.1% lower and palladium is 1.7% lower. So the main precious metals’ prices are lower this morning.
Yesterday’s Richmond Manufacturing Index release has been lower than expected at -11. Today we will get the Unemployment Claims release at 8:30 a.m., among others.
Below you will find our Gold, Silver, and Mining Stocks economic news schedule for the next two trading days (EST Timezone).
Thursday, December 28
- 8:30 a.m. U.S. - Unemployment Claims, Goods Trade Balance, Preliminary Wholesale Inventories m/m
- 10:00 a.m. U.S. - Pending Home Sales m/m
Friday, December 29
- 3:00 a.m. Eurozone - Spanish Flash CPI y/y
- 9:45 a.m. U.S. - Chicago PMI
Paul Rejczak
Stock Trading Strategist