Daily Gold News: October 19 – Gold Price Extended Its Rally

Gold is trading sideways following yesterday’s advance; jobs data in focus.

The gold futures contract gained 1.68% on Wednesday, October 18 as it accelerated its uptrend after breaking above a two-day-long trading range along the $1,950 level. The market extended 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 retracing some of its yesterday’s advance as we can see on the daily chart (the chart includes today’s intraday data):

Daily Gold News: October 19 – Gold Price Extended Its Rally - Image 1

The gold price is 0.3% higher as it is trading slightly above the $1,960 level. What about the other precious metals? Silver is also 0.3% lower platinum is 0.6% lower and palladium is 2.3% lower. So the main precious metals’ prices are lower this morning.

Yesterday’s Building Permits and Housing Starts have been mixed. Today we will get the Unemployment Claims release at 8:30 a.m., among others. 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).

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

Friday, October 20

  • 2:00 a.m. U.K. - Retail Sales m/m
  • 8:30 a.m. Canada - Retail Sales m/m, Core Retail Sales m/m
  • 9:00 a.m. U.S. - FOMC Member Harker Speech

Paul Rejczak
Stock Trading Strategist