Daily Gold News: January 16 – Gold Extends Consolidation

Gold price retraces its recent advances; markets await more economic data.

The gold futures contract gained 1.60% on Friday, January 12, and yesterday, it gained 0.36% extending the advance above $2,050 level. It retraced some of the recent declines after last week’s inflation data, among other factors. On Thursday, the daily low was at $2,017.30, and it marked the lowest point since December 13. In late December, gold bounced from the $2,100 level, and the previous 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 retracing a large part of its Friday’s-Monday’s rebound, as we can see on the daily chart (the chart includes today’s intraday data):

Daily Gold News: January 16 – Gold Extends Consolidation - Image 1

The gold price is 0.8% lower, as it is trading close to the $2,040 level. What about the other precious metals? Silver is 1.0% lower, platinum is 1.0% lower and palladium is 1.2% lower. So the main precious metals’ prices are lower this morning.

Friday’s Producer Price Index release has been lower than expected at -0.1% vs. the expected +0.1% m/m. Today we will get the Empire State Manufacturing Index 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).

Tuesday, January 16

  • 2:00 a.m. U.K. - Claimant Count Change, Average Earnings Index 3m/y
  • 5:00 a.m. Eurozone - German ZEW Economic Sentiment
  • 8:30 a.m. U.S. - Empire State Manufacturing Index
  • 8:30 a.m. Canada - CPI m/m, Median CPI y/y, Trimmed CPI y/y, Common CPI y/y, Core CPI m/m
  • 10:00 a.m. U.K. - BOE Governor Bailey Speech
  • 11:00 a.m. U.S. - FOMC Member Waller Speech
  • 9:00 p.m. China - Industrial Production y/y, GDP q/y, Retail Sales y/y
  • All Day, Eurozone - ECOFIN Meetings
  • All Day - WEF Annual Meetings

Wednesday, January 17

  • 2:00 a.m. U.K. - CPI y/y, Core CPI y/y
  • 8:30 a.m. U.S. - Retail Sales m/m, Core Retail Sales m/m, Import Prices m/m
  • 9:00 a.m. U.S. - FOMC Member Barr Speech, FOMC Member Bowman Speech
  • 9:15 a.m. U.S. - Industrial Production m/m, Capacity Utilization Rate
  • 1:00 a.m. U.S. - Business Inventories m/m, NAHB Housing Market Index
  • 10:15 a.m. Eurozone - ECB President Lagarde Speech
  • 2:00 p.m. U.S. - Beige Book
  • 3:00 p.m. U.S. - FOMC Member Williams Speech
  • 7:30 p.m. Australia - Employment Change, Unemployment Rate
  • All Day - WEF Annual Meetings

Paul Rejczak
Stock Trading Strategist