Gold price rallies despite higher-than-expected consumer inflation data.
The gold futures contract lost 0.42% on Thursday, January 11, as it extended its decline ahead of the important Consumer Price Index release. The daily low was at $2,017.30, and it marked the lowest point since December 13. 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 rallying after yesterday’s inflation data, as we can see on the daily chart (the chart includes today’s intraday data):
The gold price is 1.8% higher, as it is trading above the $2,050 level. What about the other precious metals? Silver is 2.2% higher, platinum is 0.3% higher and palladium is 0.2% higher. So the main precious metals’ prices are much higher this morning.
Yesterday’s Consumer Price Index release has been slightly higher than expected at +0.3% m/m and +3.4% y/y. Today we will get the Producer Price Index release at 8:30 a.m.
Below you will find our Gold, Silver, and Mining Stocks economic news schedule for the next two trading days (EST Timezone).
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
Monday, January 15
- All Day, U.S. - Bank Holiday
- All Day - WEF Annual Meetings
Paul Rejczak
Stock Trading Strategist