Daily Gold News: January 11 - Gold Extending Consolidation

Gold price bounces ahead of important CPI number release.

The gold futures contract lost 0.26% on Wednesday, January 10, as it further extended a short-term consolidation along the $2,025 level. On Monday, the market retraced more of its late December advances on stronger U.S. dollar, among other factors. Since then, it has been fluctuating. In late December, gold 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 rebounding ahead of the inflation number release, as we can see on the daily chart (the chart includes today’s intraday data):

Daily Gold News: January 11 - Gold Extending Consolidation - Image 1

The gold price is 0.6% higher, as it is trading close to $2,040 again. What about the other precious metals? Silver is also 0.6% higher, platinum is 0.3% higher and palladium is 0.6% higher. So the main precious metals’ prices are higher this morning.

Yesterday’s Final Wholesale Inventories release has been as expected at -0.2% m/m. Today we will get the important Consumer Price Index release, along with the Core CPI number and Unemployment Claims at 8:30 a.m. There will likely be an increased volatility following that data release.

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

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

Friday, January 5

  • 2:00 a.m. U.K. - GDP m/m
  • 8:30 a.m. U.S. - PPI m/m, Core PPI m/m

Paul Rejczak
Stock Trading Strategist