The gold futures contract lost 0.40% on Monday, as yellow metal extended its short-term consolidation following the recent decline below $2,000 price level. Gold reversed lower on August 7 after much better than expected Nonfarm Payrolls release, among other factors. The following upward correction reached a local high of $2,024.60 a week ago on Tuesday.
Gold is unchanged this morning, as it is trading within a mentioned short-term consolidation. What about the other precious metals? Silver lost 0.47% on Monday and today it is 0.1% lower. Platinum lost 0.09% and today it is 1.5% higher. Palladium lost 0.68% on Monday and today it's 0.2% higher. So precious metals' prices are mixed this morning.
Yesterday we didn't get any important economic data releases. The markets will be waiting for Thursday's-Friday's Jackson Hole Symposium's outcomes.
But today we will also get the important CB Consumer Confidence number along with New Home Sales and Richmond Manufacturing Index at 10:00 a.m.
Below you will find our Gold, Silver, and Mining Stocks economic news schedule for the next two trading days:
Tuesday, August 25
- 2:00 a.m. Eurozone - German Final GDP q/q
- 4:00 a.m. Eurozone - German ifo Business Climate
- 9:00 a.m. U.S. - HPI m/m, S&P/CS Composite-20 HPI y/y
- 10:00 a.m. U.S. - CB Consumer Confidence, New Home Sales, Richmond Manufacturing Index
Wednesday, August 26
- 8:30 a.m. U.S. - Durable Goods Orders m/m, Core Durable Goods Orders m/m
What future gold price behavior may be? Let's take a look at our proprietary Gold True Seasonality for the third quarter of 2020 where we combined the regular seasonality with the effect of the expiration of options and accuracy estimation. The yearly seasonal pattern of the price of gold was calculated using a 18-year-long period from 2002 to 2019 and then adjusted for the expiration of options that we observed between 2009 and 2019.
We can see that gold is usually going higher in the end of August. However, notice the declining accuracy in that period too. Then in September the market is trading within a consolidation.
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Paul Rejczak
Stock Selection Strategist
Sunshine Profits: Analysis. Care. Profits.
