Gold extends its short-term consolidation; tomorrow’s CPI release in focus.
The gold futures contract lost 0.02% on Tuesday, January 9, as it went sideways following its Monday’s decline of 0.8%. On Monday, the market retraced more of its late December advances on stronger U.S. dollar, among other factors. In late December, it bounced from the $2,100 level, and last week it was going sideways after breaking below the previous local lows. Earlier, the yellow metal fluctuated following its 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 extending short-term fluctuations, as we can see on the daily chart (the chart includes today’s intraday data):
The gold price is 0.4% higher, as it is trading along $2,040 again. What about the other precious metals? Silver is 0.3% higher, platinum is 0.2% lower and palladium is 0.2% lower. So the main precious metals’ prices are higher this morning.
Today, we will get the Final Wholesale Inventories release at 10:00 a.m. There will also be the 10-y Bond Auction at 1:01 p.m. The markets will be waiting for the important Consumer Price Index release tomorrow.
Below you will find our Gold, Silver, and Mining Stocks economic news schedule for the next two trading days (EST Timezone).
Wednesday, January 10
- 9:15 a.m. U.K. - BOE Governor Bailey Speech
- 10:00 a.m. U.S. - Final Wholesale Inventories m/m
- 1:01 p.m. U.S. - 10-y Bond Auction
- 3:15 p.m. U.S. - FOMC Member Williams Speech
Thursday, January 11
- 8:30 a.m. U.S. - CPI m/m, Core CPI m/m, CPI y/y, Unemployment Claims
- 1:01 p.m. U.S. - 30-y Bond Auction
- 2:00 p.m. U.S. - Federal Budget Balance
- 8:30 p.m. China - CPI y/y, PPI y/y
Paul Rejczak
Stock Trading Strategist