Daily Gold News: September 5 – Gold Breaks Below Recent Trading Range

Gold price declines due to a strengthening U.S. dollar.

The gold futures contract lost 0.15% on Monday, September 4 as it went sideways following its last week’s Tuesday’s-Wednesday’s advance. The market was rallying due to a weaker U.S. dollar and advancing stock markets amidst reduced pressure for the further monetary policy tightening. Recently gold was trading along the $1,925 level. after breaking slightly below the $1,920 level. On Thursday it was as high as $1,977. On July 31 gold’s December futures contract reached a local high of $2,010.90 and last week on Monday it was the lowest since early July.

On June 29 gold was the lowest since mid-March (the low was at $1,900.60). In May gold retreated from new 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 below the recent local lows on a stronger U.S. dollar as we can see on the daily chart (the chart includes today’s intraday data):

Daily Gold News: September 5 – Gold Breaks Below Recent Trading Range - Image 1

The gold price is 0.4% lower as it is trading below the $1,960 level. What about the other precious metals? Silver is 1.9% lower platinum is 1.5% lower and palladium is 1.3% lower. So the main precious metals’ prices are lower this morning.

Friday’s Nonfarm Payrolls release has been higher than expected at +187,000 and the Unemployment Rate has also been higher than expected at 3.8%. Today we will get the Factory Orders release at 10:00 a.m.

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

Tuesday, September 5

  • 12:30 a.m. Australia - Cash Rate, RBA Rate Statement
  • 10:00 a.m. U.S. - Factory Orders m/m
  • 9:30 p.m. Australia - GDP q/q
  • Tentative, U.S. - IBD/TIPP Economic Optimism

Wednesday, September 6

  • 8:30 a.m. U.S. - Trade Balance
  • 9:15 a.m. U.K. - Monetary Policy Report Hearings
  • 9:45 a.m. U.S. - Final Services PMI
  • 10:00 a.m. U.S. - ISM Services PMI
  • 10:00 a.m. Canada - BOC Rate Statement, Overnight Rate
  • 2:00 p.m. U.S. - Beige Book
  • 3:00 p.m. U.S. - FOMC Member Logan Speech
  • 9:30 p.m. Australia - Trade Balance
  • 11:10 p.m. Australia - RBA Governor Lowe Speech

Paul Rejczak
Stock Trading Strategist