Daily Gold News: October 25 – Gold Extends Consolidation

Gold price continues to fluctuate below $2,000 level; economic data in focus.

The gold futures contract lost 0.09% on Tuesday, October 24 as it extended a short-term consolidation following recent advances. Last week gold rallied on increasing global geopolitcal risks, interest rates fears, among other factors. On Friday the daily high was at $2,009.20, but the price closed below the $2,000 level. Yesterday the yellow metal retraced more of the advance. It was brifely below $1,970 level.

On 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, among other factors. Earlier gold kept selling off on economic data releases, strong U.S. dollar. On Friday gold was the highest since late July.

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 trading sideways as we can see on the daily chart (the chart includes today’s intraday data):

Daily Gold News: October 24 – Gold Extends Consolidation - Image 1

The gold price is 0.1% lower as it is trading above the $1,980 level. What about the other precious metals? Silver is 0.8% lower platinum is unchanged and palladium is 0.2% lower. So the main precious metals’ prices are mixed this morning.

Yesterday’s U.S. Flash Manufacturing PMI and Flash Services PMI releases have been better than expected. Today we will get the New Home Sales release at 10:00 a.m. The markets will be waiting for tomorrow’s important Advance GDP number.

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

Wednesday, October 25

  • 4:00 a.m. Eurozone - German ifo Business Climate
  • 10:00 a.m. U.S. - New Home Sales
  • 10:00 a.m. Canada - BOC Monetary Policy Report, BOC Rate Statement, Overnight Rate
  • 11:00 a.m. Canada - BOC Press Conference
  • 1:00 p.m. Eurozone - ECB President Lagarde Speech
  • 4:35 p.m. U.S. - Fed Chair Powell Speech

Thursday, October 26

  • 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
  • 9:00 a.m. U.S. - FOMC Member Waller Speech
  • 10:00 a.m. U.S. - Pending Home Sales m/m
  • 7:30 p.m. Japan - Tokyo Core CPI y/y

Paul Rejczak
Stock Trading Strategist