Daily Gold News: Mar. 8 – Gold Price Sold Off on Hawkish Powell

Gold lost almost 2% after the Powell’s testimony; today it’s trading sideways.

The gold futures contract lost 1.87% on Tuesday, Mar. 7, as it sold off following the Fed Chief Powell’s hawkish testimony. The market retraced almost all of its recent advances and a rebound to its last Friday’s local high of $1,864.40. Gold went closer to the February 28 local low of $1,810.80 again as yesterday’s daily low was at $1,817.10.

On February 2 gold reached new medium-term high of $1,975.02. Then gold retraced an over month-long advance on renewed monetary policy tightening fears.

Today gold is trading along 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 this morning as it is trading below the $1,820 level. What about the other precious metals? Silver is 0.2% higher, platinum is 1.2% higher and palladium is 1.7% higher. So the main precious metals’ prices are slightly higher this morning.

Yesterday’s Fed Chief Powell’s testimony led to a sell-off in precious metals, stock markets and energy sector. Also, the U.S. dollar strengthened after the Powell’s testimony. Today there will be the second part of that testimony at 10:00 a.m. We will also get the important ADP Non-Farm Employment Change release at 8:15 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).

Wednesday, March 8

  • 5:00 a.m. Eurozone - ECB President Lagarde Speech
  • 8:15 a.m. U.S. - ADP Non-Farm Employment Change
  • 8:30 a.m. U.S. - Trade Balance
  • 10:00 a.m. U.S. - Fed Chair Powell Testimony, JOLTS Job Openings
  • 1:01 p.m. U.S. - 10-y Bond Auction
  • 2:00 p.m. U.S. - Beige Book

Thursday, March 9

  • 7:30 a.m. U.S. - Challenger Job Cuts y/y
  • 8:30 a.m. U.S. - Unemployment Claims
  • 10:00 a.m. U.S. - FOMC Member Barr Speech
  • 1:01 p.m. U.S. - 30-y Bond Auction
  • Tentative, Japan - Monetary Policy Statement, BOJ Policy Rate, BOJ Press Conference

Paul Rejczak
Stock Trading Strategist