The gold futures contract gained 0.66% Monday, as it continued to fluctuate following the recent advance.
Recently gold was retracing a rally from around 1,800 to 7 August record high of 2,089.20 in reaction to USD advance, among other factors.
Then gold has bounced off the support level marked by mid-August local low of around 1,875, as we can see on the daily chart, the chart includes Tuesday’s intraday data:
Gold is still trading within a short-term consolidation. Tuesday, gold futures settled 11.30 lower (-0.6%) to 1,908.80oz off its multi-week highs, as a softer USD and split equity market applied some pressure.
Yesterday’s ISM Non-Manufacturing PMI release has been slightly better than expected at 57.8. Today we will get some more Fed/ECB talk. There will be the Fed Chairman Powell speech at 10:40a
Looking at last Friday’s Nonfarm Payrolls (NFPs) release.
The Big Q: Where will the price of gold go after last week’s news?
The Big A: Here the data since September 2018, a 25-month-long frame that contains of 25 NFP releases.
The 1st chart shows price paths 5 days before and 10 days after the NFP release. The last 3 cases are marked with dashed lines. Gold gained around 1% in July and September, but in August it lost almost 4%.
The following chart shows the average gold price path before and after the NFP releases for the past 25 months. The market was usually fluctuating for a week before advancing and closing 0.46% higher on the 10th day after the monthly NFPs release.
Below is economic news for Wednesday, as follows:
Wednesday, 7 October
- 8:10a Eurozone – ECB President Lagarde Speech
- 1:00p US – FOMC Member Kashkari Speech
- 2:00p US – FOMC Meeting Minutes, FOMC Member Williams Speech
- 3:00p US – FOMC Member Williams Speech
- 9:45p China – Caixin Services PMI
Do you know Section 408(m)(3)?
Well, it is a cousin of Section 401(k) of IRS code that unlocks investments you simply cannot find on Wall Street.
Section 408(m)(3) lets you open a Precious Metals “Self Directed” IRA and put real gold and silver into a tax-advantaged account.
Here are 3 good reasons to consider this IRS Tax Law as follows:
- Gold protects against downturns in the stock market
- Unlike the USD, gold maintains its purchasing power over time.
- No matter what happens to the world’s paper money, gold can be used as currency around the world.
Have a healthy day, Keep the Faith!
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