🤯 Have you seen our AI stock pickers’ 2024 results? 84.62%! Grab November’s list now.Pick Stocks with AI

Precious Metals Mixed Ahead Of Important Jobs Data Release

Published 09/04/2020, 07:48 AM
XAU/USD
-
XAG/USD
-
GC
-
SI
-
PA
-
PL
-

The gold futures contract lost 0.35% on Thursday, as it slightly extended its Wednesday's decline of over 1.7%. Precious metals went lower following U.S dollar's advance. The stock market's rout didn't trigger any significant move in gold yesterday.

Last month yellow metal has reversed from its new record high of $2,089.20 after much better than expected Nonfarm Payrolls release. 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 Price Daily Chart

Gold is 0.5% higher this morning, as it is retracing some of yesterday's decline. What about the other precious metals? Silver lost 1.90% on Thursday and today it is 1.0% higher. Platinum lost 1.60% and today it is 2.2% higher. Palladium gained 2.39% on Thursday and today it's 1.1% lower. So precious metals are mixed this morning.

Yesterday's ISM Non-Manufacturing PMI release has been as expected and the Unemployment Claims number has been slightly better (lower) than expected at 881,000.

The financial markets are waiting for today's monthly jobs data release. The Nonfarm Payrolls number is expected to drop to +1,375 million from last month's +1,763 million.

Let's focus on today'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: Sep 2018 - Aug 2020

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: Sep 2018 - Aug 2020 - Average

 

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.