Gold extends a short-term consolidation ahead of the important GDP data, ECB release.
The gold futures contract lost 0.48% on Wednesday, January 24, as it extended a consolidation along the $2,025 price level. Last Wednesday, it was at the lowest point since December 13 on stronger U.S. dollar, among other factors. Gold retraced almost all of its rally following December’s Fed’s monetary policy release.
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 trading along its yesterday’s closing price, as we can see on the daily chart (the chart includes today’s intraday data):
The gold price is 0.1% higher, as it is trading slightly below the $2,020 level. What about the other precious metals? Silver is 0.6% higher, platinum is 0.2% lower and palladium is 0.2% higher. So the main precious metals’ prices are higher this morning.
Yesterday’s Flash Manufacturing PMI and Flash Services PMI releases have been better than expected. Today, we will get the important Advance GDP number at 8:30 a.m., among others. There will also be the ECB monetary policy release at 8:15 a.m.
Below you will find our Gold, Silver, and Mining Stocks economic news schedule for the next two trading days (EST Timezone).
Thursday, January 25
- 4:00 a.m. Eurozone - German ifo Business Climate
- 8:15 a.m. Eurozone - Main Refinancing Rate, Monetary Policy Statement
- 8:30 a.m. U.S. - Advance GDP q/q, Unemployment Claims, Advance GDP Price Index q/q, Durable Goods Orders m/m, Core Durable Goods Orders m/m, Goods Trade Balance, Preliminary Wholesale Inventories m/m
- 8:45 a.m. Eurozone - ECB Press Conference
- 10:00 a.m. U.S. - New Home Sales
- All Day, Australia - Bank Holiday
Friday, January 26
- 8:30 a.m. U.S. - Core PCE Price Index m/m, Personal Income m/m, Personal Spending m/m
- 10:00 a.m. U.S. - Pending Home Sales m/m
Paul Rejczak
Stock Trading Strategist