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Gold Price Ready For Big Move; Gold Lower After Inflation Data

The gold futures contract lost 0.72% on Wednesday, as it retraced some of its Thursday’s-Friday’s rally. The gold price broke above a short-term consolidation along $1,800 price level last week.

In early April the gold market has bounced from the support level marked by March 8 local low of $1,663.30. The yellow metal’s price was the lowest since last year’s June. Today gold is trading along yesterday’s daily low, as we can see on the daily chart (the chart includes today’s intraday data):

Gold (Precious Metals) Are Lower This Morning

What about the other precious metals?

Gold is 0.2% lower this morning, as it is trading along yesterday’s daily low. What about the other precious metals? Silver is 0.7% lower, platinum is 0.7% lower and palladium is 0.3% lower today. So precious metals are lower this morning.

Yesterday’s Consumer Price Index release has been higher than expected at +0.8% m/m. The stock market extended its short-term sell-off and gold came back closer to $1,800 price level. Today we will get the Producer Price Index and Unemployment Claims releases, among others.

Where would the price of gold go following last Friday’s NFP release? 

  • We’ve compiled the data since September of 2018, a 32-month-long period of time that contains of thirty two NFP releases. The following chart shows the average gold price path before and after the NFP releases for the past 32 months. The market was usually advancing ahead of the release day and closing 0.49% higher on the 10th day after the NFP release.

Below you will find our Gold, Silver, and Mining Stocks economic news schedule for the next two trading days:

Thursday, May 13

  • 8:30 a.m. U.S. – Unemployment Claims, PPI m/m, Core PPI m/m
  • 10:00 a.m. U.S. – FOMC Member Barkin Speech
  • 11:00 a.m. Canada – BOC Governor Macklem Speech
  • 1:00 p.m. U.S. – FOMC Member Waller Speech
  • All Day, Eurozone – French Bank Holiday, German Bank Holiday

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Neal Bhai has been involved in the Bullion and Metals markets since 1998 – he has experience in many areas of the market from researching to trading and has worked in Delhi, India. Mobile No. - 9899900589 and 9582247600

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