Daily Gold News: October 18 – Gold Price Breaks Higher

Gold advances as geopolitical risk increases, markets await more economic data.

The gold futures contract gained 0.07% on Tuesday, October 17 as it fluctuated following its Friday’s rally of more than 3%. On Friday the yellow metal was advancing on increased geopolitcal risks, among other factors. On previous Friday, October 6 gold reached new local low of $1,823.50. It was the lowest since early March, but the market bounced after monthly jobs data release. Earlier gold kept selling off on economic data releases, strong U.S. dollar. Last Friday’s rally retraced most of the late September gold price declines.

In late August gold price was rallying amidst reduced pressure for the further monetary policy tightening and on Septemeber 1 it reached a local high of $1,980. In May gold retreated from medium-term high of $2,085.40 and in early March it was selling off after the Fed Chief Powell’s hawkish testimony. Then it rebounded from a local low of around $1,813.

Today gold is breaking higher as we can see on the daily chart (the chart includes today’s intraday data):

Daily Gold News: October 18 – Gold Price Breaks Higher - Image 1

The gold price is 1.2% higher as it is trading closer to the $1,960 level. What about the other precious metals? Silver is 1.5% higher platinum is 0.8% higher and palladium is 0.3% lower. So the main precious metals’ prices are higher this morning.

Yesterday’s Retail Sales release has been higher than expected at +0.7% m/m. Today we will get Building Permits, Housing Starts and Beige Book release. There will also be speeches from the FOMC Members.

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

Wednesday, October 18

  • 2:00 a.m. U.K. - CPI y/y, Core CPI y/y
  • 8:30 a.m. U.S. - Building Permits, Housing Starts
  • 12:00 p.m. U.S. - FOMC Member Waller Speech
  • 12:30 p.m. U.S. - FOMC Member Williams Speech
  • 1:00 p.m. U.S. - FOMC Member Bowman Speech
  • 2:00 p.m. U.S. - Beige Book
  • 3:15 p.m. U.S. - FOMC Member Harker Speech
  • 6:55 p.m. U.S. - FOMC Member Cook Speech
  • 8:30 p.m. Australia - Employment Change, Unemployment Rate

Thursday, October 19

  • 8:30 a.m. U.S. - Unemployment Claims, Philly Fed Manufacturing Index
  • 9:00 a.m. U.S. - FOMC Member Jefferson Speech
  • 10:00 a.m. U.S. - Existing Home Sales, CB Leading Index m/m
  • 12:00 p.m. U.S. - Fed Chair Powell Speech
  • 1:20 p.m. U.S. - FOMC Member Goolsbee Speech
  • 1:30 p.m. U.S. - FOMC Member Barr Speech
  • 5:30 p.m. U.S. - FOMC Member Harker Speech
  • 7:00 p.m. U.S. - FOMC Member Logan Speech
  • 9:15 p.m. China - 1-y Loan Prime Rate, 5-y Loan Prime Rate

Paul Rejczak
Stock Trading Strategist