Thursday, Oct. 7 – Gold’s Week-Long Consolidation

The gold futures contract gained 0.05% on Wednesday, as it continued to fluctuate after a short-term advance over the $1,750 price level. The market got back above that level following a downward correction in U.S. dollar and falling stock prices. This morning gold is trading close to its yesterday’s daily closing price, as we can see on the daily chart (the chart includes today’s intraday data):

Today gold is virtually flat, as it is trading above $1,750. What about the other precious metals? Silver is 0.5% higher, platinum is unchanged and palladium is 0.9% higher. So precious metals’ prices are mixed this morning.

Yesterday’s ADP Non-Farm Employment Change release has been better than expected at +568,000 vs. a forecast of +425,000. Today we will get the Unemployment Claims release at 8:30 a.m.

Where would the price of gold go following tomorrow’s Nonfarm Payrolls announcement? We’ve compiled the data since September of 2018, a 37-month-long period of time that contains of thirty seven 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 lost 2.58% in August and in September it lost 3.81%.

The following chart shows the average gold price path before and after the NFP releases for the past 36 months. The market was usually advancing ahead of the release day and closing 0.18% 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, October 7

  • 7:30 a.m. U.S. – Challenger Job Cuts y/y

  • 8:30 a.m. U.S. – Unemployment Claims

  • 8:40 a.m. U.S. – FOMC Member Williams Speech

  • 12:00 p.m. Canada – BOC Governor Macklem Speech

  • 9:45 p.m. China – Caixin Services PMI

Friday, October 8

  • 8:30 a.m. U.S. – Non-Farm Employment Change, Unemployment Rate, Average Hourly Earnings m/m

  • 8:30 a.m. Canada – Employment Change, Unemployment Rate

  • 10:00 a.m. U.S. – Final Wholesale Inventories m/m

For a look at all of today’s economic events, check out our economic calendar.

Paul Rejczak
Stock Selection Strategist
Sunshine Profits: Analysis. Care. Profits.

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All essays, research and information found above represent analyses and opinions of Paul Rejczak and Sunshine Profits’ associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Paul Rejczak and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Rejczak is not a Registered Securities Advisor. By reading Paul Rejczak’s reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Paul Rejczak, Sunshine Profits’ employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.

This article was originally posted on FX Empire


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