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Daily Gold News: Precious Metals Fluctuate Ahead of Fed Talk

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The gold futures contract gained 0.66% on Monday, as it continued to fluctuate following the recent advance. Recently gold was retracing a rally from around $1,800 to August 7 record high of $2,089.20 in reaction to U.S. dollar advance, among other factors. Then gold has bounced from the support level marked by mid-August local low of around $1,875, as we can see on the daily chart (the chart includes today’s intraday data):

Daily Gold News: Precious Metals Fluctuate Ahead of Fed Talk

Gold is unchanged this morning, as it is still trading within a short-term consolidation. What about the other precious metals? Silver gained 2.21% on Monday and today it is 0.3% lower. Platinum gained 1.49% and today it is 1.6% lower. Palladium gained 2.30% on Monday and today it is unchanged. So precious metals are mixed this morning.


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Yesterday’s ISM Non-Manufacturing PMI release has been slightly better than expected at 57.8. Today we will get some more Fed/ECB talk. There will be the Fed Chair Powell speech at 10:40 a.m.

Let’s focus on Friday’s Nonfarm Payrolls release. Where will the price of gold go following last week’s news? We’ve compiled the data since September of 2018, a 25-month-long period of time that contains of twenty five NFP releases. The first chart shows price paths 5 days before and 10 days after the NFP release. The last three cases are marked with dashed lines. Gold gained around 1% in July and September, but in August it lost almost 4%.

Daily Gold News: Precious Metals Fluctuate Ahead of Fed Talk

The following chart shows the average gold price path before and after the NFP releases for the past 25 months. The market was usually fluctuating for a week before advancing and closing 0.46% higher on the 10th day after the monthly Nonfarm Payrolls release.

Daily Gold News: Precious Metals Fluctuate Ahead of Fed Talk

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Turns out that yesterday's headline was not Powell's address...but rather Trump's tweet which led to USD gaining strength and gold tumbling backwards...power of words, indeed😄
Update from Powell's speech: He expressed concern that "without funding, the economy will be in deep trouble."🙄 Anyone else that it's a REALLY dangerous reflection of the US economy? Question is: how long can constant funding last🙄
Gold climbs to fresh two-week tops, closer to $1920 level ahead of Powell's speech

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