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Precious Metals' Downward Correction

Published 08/19/2020, 07:10 AM

The gold futures contract gained 0.72% on Tuesday, as yellow metal's price further extended its short-term uptrend after breaking above short-term local highs along $1,970-1,975. It has been fluctuating following last week's Wednesday's-Thursday's bounce from the local low of $1,874.20. On Tuesday the market has retraced more of its 10.3% decline off new record high of $2,089.20. Gold reversed sharply lower following previous Friday's Nonfarm Payrolls release, among other factors. The bounce still looks like an upward correction, as we can see on the daily chart:

Gold Continuous Contract - Daily Chart

Gold is 1.1% lower this morning, as it is retracing some of the short-term uptrend. What about the other precious metals? Silver gained 1.47% on Tuesday and today it is 2.7% lower. Platinum gained 0.81% and today it is 2.2% lower. Palladium lost 0.25% on Tuesday and today it's 1.6% lower. So precious metals are trading lower this morning.

Yesterday's Building Permits, Housing Starts release has been better than expected, with both numbers at 1.50 million. And the global financial markets remained risk-on. Today we will get the FOMC Meeting Minutes release at 2:00 p.m.

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

Wednesday, August 19

  • 5:00 a.m. Eurozone - Final CPI y/y, Final Core CPI y/y
  • 2:00 p.m. U.S. - FOMC Meeting Minutes
  • All Day - OPEC-JMMC Meetings

Thursday, August 20

  • 8:30 a.m. U.S. - Unemployment Claims, Philly Fed Manufacturing Index
  • 8:30 a.m. Canada - ADP Non-Farm Employment Change
  • 10:00 a.m. U.S. - CB Leading Index m/m
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Latest comments

We are at a critical short term juncture for metals
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