Daily Gold News: Gold Going Sideways Despite Fed Talks, Tweets

The gold futures contract lost 0.59% on Tuesday, as it extended its short-term consolidation. Yesterday volatility has increased following a tweet from the U.S. President ending stimulus talks. But overall, the market continues going sideways. 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):

Gold is 0.5% higher this morning vs. yesterday’s NY close, as it is extending a short-term consolidation. What about the other precious metals? Silver lost 2.60% on Tuesday and today it is 2.1% higher. Platinum lost 3.80% and today it is 1.0% higher. Palladium gained 0.54% on Tuesday and today it is 0.1% higher. So precious metals are generally slightly higher this morning.

Yesterday’s Fed Chair Powell speech hasn’t been a game changer as much as Donald Trump’s tweet later in the day. Today we will get more Fed talk along with the FOMC Meeting Minutes release at 2:00 p.m.

Let’s focus on last 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%.

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.

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Reprinted from Fxempire，the copyright all reserved by the original author.