Black Friday Sale! Save huge on InvestingProGet up to 60% off

Precious Metals Lower Again, U.S. Dollar Gains

Published 09/03/2020, 07:44 AM
XAU/USD
-
XAG/USD
-
DX
-
GC
-
SI
-
PA
-
PL
-

The Gold Futures contract lost 1.73% on Wednesday, as it retraced its recent advance following bouncing off $2,000 price level. Gold reversed from its new record high of $2,089.20 a month ago after much better than expected Nonfarm Payrolls release, among other factors. The following upward correction reached local high of $2,024.60 on August 18. Since then gold has been fluctuating, as we can see on the daily chart:

Gold Daily Chart

Gold is 0.39% lower this morning, as it is extending yesterday's decline. What about the other precious metals? Silver lost 4.36% on Wednesday and today it is 0.91% lower. Platinum lost 5.10% and today it is 0.08% lower. Palladium lost 1.89% on Wednesday and today it's 3.6% higher. So precious metals are generally going down this morning, as U.S. dollar strengthens.

Yesterday's ADP Non-Farm Employment Change release has been worse than expected at +428,000. Today we will get the Unemployment Claims number at 8:30 a.m. and the ISM Non-Manufacturing PMI release at 10:00 a.m.

The financial markets will be waiting for tomorrow's monthly jobs data release.

Let's focus on the Friday's Nonfarm Payrolls number release. Where would the price of gold go following that news release? We've compiled the data since September of 2018, a 24-month-long period of time that contains of twenty four NFP releases. The first chart shows price paths 5 days before and 10 days after the NFP release. We can see that the biggest 10-day advance after the NFP day was +6.6% in February of 2020 and the biggest decline was -12.7% in March of 2020. However, we've had an increased volatility following coronavirus fear then.

Gold Change Vs NFP

The following chart shows the average gold price path before and after the NFP releases for the past 24 months. The market was usually fluctuating for a week before advancing and closing 0.5% higher on the 10th day after the monthly Nonfarm Payrolls release.

Gold Change Vs NFP - Sept 2018- Aug 2020 Average

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

Thursday, September 3

  • 8:30 a.m. U.S. - Unemployment Claims, Revised Nonfarm Productivity q/q, Revised Unit Labor Costs q/q, Trade Balance
  • 9:45 a.m. U.S. - Final Services PMI
  • 10:00 a.m. U.S. - ISM Non-Manufacturing PMI

Friday, September 4

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

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.